KORU Medical Narrows Losses on Strong International Revenue Growth

TL;DR

**KRMD is showing promising revenue growth, especially internationally, and narrowing losses, making it a speculative buy for turnaround potential.**

AI Summary

KORU Medical Systems, Inc. (KRMD) reported a significant increase in net revenues for both the three and nine months ended September 30, 2025. Quarterly net revenues rose by 27.17% to $10,402,163 from $8,179,977 in the prior year, driven primarily by a 219.14% surge in international revenue to $3,695,524. For the nine-month period, net revenues increased by 21.87% to $30,232,038 from $24,807,864 in 2024. Despite revenue growth, the company recorded a net loss of $777,966 for the quarter, an improvement from a $1,580,817 net loss in Q3 2024. The nine-month net loss also narrowed to $2,151,070 from $4,505,490. Operating expenses increased, with selling, general and administrative expenses rising to $5,994,661 for the quarter, while research and development decreased to $933,107. Cash and cash equivalents decreased to $8,464,019 as of September 30, 2025, from $9,580,947 at December 31, 2024, primarily due to cash used in operating and investing activities.

Why It Matters

This 10-Q indicates KORU Medical Systems is making progress in revenue growth, particularly in international markets, which could signal expanding market penetration and reduced reliance on domestic sales. For investors, the narrowing net loss, despite increased operating expenses, suggests improved operational efficiency or leverage, potentially moving the company closer to profitability. Employees might see this as a positive sign for job security and future growth opportunities. Customers could benefit from the company's continued investment in its infusion solutions, potentially leading to enhanced product offerings. In a competitive medical device market, KRMD's ability to grow international sales while reducing its net loss could strengthen its position against larger players.

Risk Assessment

Risk Level: medium — While KORU Medical Systems significantly reduced its net loss from $4,505,490 to $2,151,070 for the nine months ended September 30, 2025, and increased revenue, it still operates at a net loss. The company's cash and cash equivalents decreased by $1,116,928 during the nine-month period, indicating continued cash burn from operations and investing activities, which could pose liquidity risks if not reversed.

Analyst Insight

Investors should monitor KORU Medical's next few quarters for continued revenue growth, especially in international markets, and further reductions in net loss. A sustained trend towards profitability and positive cash flow from operations would be a strong buy signal, but current investors should hold and new investors consider a small, speculative position given the ongoing losses.

Financial Highlights

revenue

$10,402,163

total Assets

$27,103,526

total Debt

$10,638,701

net Income

-$777,966

eps

-$0.02

gross Margin

60.23%

cash Position

$8,464,019

revenue Growth

+27.17%

Revenue Breakdown

Key Numbers

• $10,402,163 — Net Revenues (Q3 2025) (Increased by 27.17% from $8,179,977 in Q3 2024)
• $30,232,038 — Net Revenues (YTD Q3 2025) (Increased by 21.87% from $24,807,864 in YTD Q3 2024)
• $777,966 — Net Loss (Q3 2025) (Improved from $1,580,817 net loss in Q3 2024)
• $2,151,070 — Net Loss (YTD Q3 2025) (Improved from $4,505,490 net loss in YTD Q3 2024)
• $3,695,524 — International Revenue (Q3 2025) (Increased by 219.14% from $1,157,166 in Q3 2024)
• $8,464,019 — Cash and Cash Equivalents (Sept 30, 2025) (Decreased from $9,580,947 at Dec 31, 2024)
• $933,107 — Research and Development (Q3 2025) (Decreased from $1,533,845 in Q3 2024)

Key Players & Entities

• KORU Medical Systems, Inc. (company) — registrant
• FDA (regulator) — governs subcutaneous drug delivery market
• SEC (regulator) — U.S. Securities and Exchange Commission
• Nasdaq Stock Market (company) — exchange where KRMD is registered
• Bloomberg (company) — financial news organization
• United States (person) — country of operations
• Canada (person) — country of operations

FAQ

Risk Factors

• Cash Burn and Liquidity [medium — financial]: The company's cash and cash equivalents decreased from $9,580,947 at December 31, 2024, to $8,464,019 as of September 30, 2025. This reduction is attributed to cash used in operating and investing activities, indicating a continued need for careful cash management.
• Inventory Management [medium — operational]: Inventory levels increased significantly from $2,803,669 at December 31, 2024, to $4,411,710 as of September 30, 2025. This substantial increase, representing a 57.35% rise, could indicate potential challenges in inventory turnover or future obsolescence.
• Net Loss Despite Revenue Growth [high — financial]: Despite a 27.17% increase in net revenues for Q3 2025, the company reported a net loss of $777,966. For the nine-month period, the net loss narrowed but remained substantial at $2,151,070. This highlights ongoing profitability challenges.
• Increased SG&A Expenses [medium — operational]: Selling, general, and administrative expenses rose to $5,994,661 in Q3 2025 from $5,127,658 in the prior year's quarter, an increase of 16.91%. This rise in operating expenses, even with revenue growth, impacts the bottom line.
• Reduced R&D Investment [medium — operational]: Research and development expenses decreased to $933,107 in Q3 2025 from $1,533,845 in Q3 2024, a reduction of 39.14%. While this can improve short-term profitability, a sustained decrease could impact future innovation and competitiveness.

Industry Context

KORU Medical Systems operates in the medical device sector, specifically focusing on innovative solutions for vascular access. The industry is characterized by rapid technological advancements, stringent regulatory requirements, and a competitive landscape with both established players and emerging companies. Growth is often driven by the development of minimally invasive technologies and expanding access to healthcare globally.

Regulatory Implications

As a medical device company, KORU Medical Systems is subject to rigorous regulatory oversight from bodies like the FDA. Compliance with quality standards, manufacturing practices, and product approvals is critical. Any failure to meet these standards can lead to product recalls, fines, or market access restrictions, impacting financial performance and reputation.

What Investors Should Do

1. Monitor international revenue growth drivers.
2. Analyze the trend in operating expenses.
3. Evaluate cash burn rate and runway.
4. Assess inventory management efficiency.

Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing significant revenue growth but continued net loss and reduced cash reserves.
• 2025-09-30: Balance Sheet Date — Reflects a decrease in cash and cash equivalents and a substantial increase in inventory compared to year-end 2024.
• 2024-12-31: End of Fiscal Year 2024 — Prior period for balance sheet comparison, showing higher cash and lower inventory levels.

Glossary

Accumulated deficit

The total cumulative net losses of a company since its inception, minus any cumulative net income. (Indicates the company has historically incurred more losses than profits, standing at ($31,529,976) as of September 30, 2025.)

Stock-based compensation expense

The cost recognized for equity awards granted to employees, such as stock options and restricted stock. (A non-cash expense that reduces net income but does not use cash, noted as $1,740,727 for the nine months ended September 30, 2025.)

Weighted average number of common shares outstanding

The average number of a company's outstanding shares over a specific period, used for calculating earnings per share. (Used to calculate basic and diluted Net Loss Per Share, showing an increase to 46,238,819 for Q3 2025.)

Operating lease liability

The obligation to make lease payments for assets used in operations over the lease term. (Represents a significant liability for the company, with a total of $3,101,976 as of September 30, 2025.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, KORU Medical Systems has demonstrated robust revenue growth, with Q3 net revenues increasing by 27.17% and year-to-date revenues by 21.87%. This growth is significantly bolstered by a remarkable 219.14% surge in international revenue. While the net loss has narrowed, indicating improved operational efficiency, the company continues to operate at a loss. Key expense categories show mixed trends, with a notable decrease in R&D spending offset by an increase in SG&A expenses. The company's cash position has also declined, underscoring the ongoing need for careful financial management.

Key Financial Figures

• $0.01 — nge on which registered Common stock, $0.01 par value KRMD The Nasdaq Stock Marke
• $12,500 — lly, to be paid quarterly in arrears of $12,500 in cash and $15,000 in common stock. Th
• $15,000 — terly in arrears of $12,500 in cash and $15,000 in common stock. The Chairman of the Bo
• $22,500 — terly in arrears of $12,500 in cash and $22,500 in common stock. Prior to May 9, 2024 i
• $2.08 — Weighted Average Exercise Price $2.08-$3.98 3,214,180 7.33 years $ 3.2
• $3.98 — ghted Average Exercise Price $2.08-$3.98 3,214,180 7.33 years $ 3.23 1,

Filing Documents

• form_10-q.htm (10-Q) — 529KB
• ex_31-1.htm (EX-31) — 7KB
• ex_31-2.htm (EX-31) — 7KB
• ex_32-1.htm (EX-32) — 3KB
• ex_32-2.htm (EX-32) — 3KB
• 0001161697-25-000372.txt ( ) — 3538KB
• krmd-20250930.xsd (EX-101.SCH) — 44KB
• krmd-20250930_cal.xml (EX-101.CAL) — 42KB
• krmd-20250930_def.xml (EX-101.DEF) — 100KB
• krmd-20250930_lab.xml (EX-101.LAB) — 365KB
• krmd-20250930_pre.xml (EX-101.PRE) — 236KB
• form_10-q_htm.xml (XML) — 404KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1. Condensed Financial Statements (Unaudited) 3 Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 3 4 5 6-7

Notes to Financial Statements

Notes to Financial Statements 8 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 19 ITEM 4.

Controls and Procedures

Controls and Procedures 19

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1A.

Risk Factors

Risk Factors 19 ITEM 6. Exhibits 20

Signatures

Signatures 21 - 2 - Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) KORU MEDICAL SYSTEMS, INC. BALANCE SHEETS September 30, December 31, 2025 2024 (UNAUDITED) ASSETS CURRENT ASSETS Cash and cash equivalents $ 8,464,019 $ 9,580,947 Accounts receivable less allowance for credit losses of $ 0 as of September 30, 2025 and December 31, 2024 5,412,004 5,720,750 Inventory 4,411,710 2,803,669 Other receivables 103,079 277,193 Prepaid expenses 1,028,484 749,851 TOTAL CURRENT ASSETS 19,419,296 19,132,410 Property and equipment, net 4,235,983 4,290,515 Intangible assets, net of accumulated amortization of $ 510,597 and $ 458,538 as of September 30, 2025 and December 31, 2024, respectively 681,621 730,279 Operating lease right-of-use assets 2,667,656 2,966,341 Other assets 98,970 98,970 TOTAL ASSETS $ 27,103,526 $ 27,218,515 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 1,872,162 $ 1,649,969 Accrued expenses 4,634,183 3,924,184 Note payable 334,931 271,152 Other liabilities 2,893 29,269 Accrued payroll and related taxes 456,066 811,401 Financing lease liability 120,211 115,587 Operating lease liability 413,486 400,258 TOTAL CURRENT LIABILITIES 7,833,932 7,201,820 Financing lease liability, net of current portion 116,279 202,613 Operating lease liability, net of current portion 2,688,490 3,000,403 TOTAL LIABILITIES 10,638,701 10,404,836 STOCKHOLDERS' EQUITY Common stock, $ 0.01 par value, 75,000,000 shares authorized, 49,713,694 and 49,377,617 shares issued 46,293,192 and 45,957,115 shares outstanding as of September 30, 2025, and December 31, 2024, respectively 497,137 493,776 Additional paid-in capital 51,380,158 49,581,303 Treasury stock, 3,438,526 shares as of September 30, 2025 and December 31, 2024, at cost ( 3,882,494 ) ( 3,882,494 ) Accumulated deficit ( 31,529,976 ) ( 29,378,906 )

financial statements

financial statements. - 3 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 NET REVENUES $ 10,402,163 $ 8,179,977 $ 30,232,038 $ 24,807,864 Cost of goods sold 4,137,592 2,993,986 11,445,362 9,038,825 Gross Profit 6,264,571 5,185,991 18,786,676 15,769,038 OPERATING EXPENSES Selling, general and administrative 5,994,661 5,127,658 17,338,183 15,804,966 Research and development 933,107 1,533,845 3,242,505 4,143,751 Depreciation and amortization 204,482 227,785 631,326 677,019 Total Operating Expenses 7,132,250 6,889,288 21,212,014 20,625,736 Net Operating Loss ( 867,679 ) ( 1,703,297 ) ( 2,425,338 ) ( 4,856,698 ) Non-Operating Income (Expense) Gain (Loss) on currency exchange 11,790 9,485 61,571 ( 12,674 ) Other income 3,206 — 3,205 ( 300 ) Interest income, net 74,567 112,995 226,698 364,183 TOTAL OTHER INCOME 89,563 122,480 291,474 351,208 LOSS BEFORE INCOME TAXES ( 778,116 ) ( 1,580,817 ) ( 2,133,864 ) ( 4,505,490 ) Income Tax Refund (Expense) 150 — ( 17,206 ) — NET LOSS $ ( 777,966 ) $ ( 1,580,817 ) $ ( 2,151,070 ) $ ( 4,505,490 ) NET LOSS PER SHARE Basic & Diluted $ ( 0.02 ) $ ( 0.03 ) $ ( 0.05 ) $ ( 0.10 ) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic & Diluted 46,238,819 45,851,019 46,140,347 45,791,756 The accompanying notes are an integral part of these

financial statements

financial statements. - 4 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) For the Nine Months Ended September 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net Loss $ ( 2,151,070 ) $ ( 4,505,490 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation expense and warrant expense 1,740,727 1,924,131 Depreciation and amortization 631,326 677,019 Loss on disposal of fixed assets — 300 Non-cash lease adjustments — 243,762 Changes in operating assets and liabilities: Accounts receivable 308,749 ( 1,119,490 ) Inventory ( 1,608,041 ) ( 447,017 ) Prepaid expenses and other assets ( 104,520 ) 217,652 Other liabilities ( 26,379 ) ( 330,773 ) Accounts payable 222,193 695,107 Accrued payroll and related taxes ( 355,335 ) 303,927 Accrued expenses 709,999 1,081,539 NET CASH USED IN OPERATING ACTIVITIES ( 632,351 ) ( 1,259,333 ) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment ( 524,735 ) ( 1,340,994 ) Purchases of intangible assets ( 3,400 ) ( 42,786 ) NET CASH USED IN INVESTING ACTIVITIES ( 528,135 ) ( 1,383,780 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of employee stock options 89,025 — Borrowings from insurance finance indebtedness 406,751 487,516 Payments on insurance finance indebtedness ( 342,972 ) ( 399,867 ) Payments on finance lease liability ( 81,710 ) ( 81,534 ) Payments for taxes related to net share settlement of equity awards ( 27,536 ) ( 38,932 ) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 43,558 ( 32,817 ) NET DECREASE IN CASH AND CASH EQUIVALENTS ( 1,116,928 ) ( 2,675,930 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 9,580,947 11,482,240 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 8,464,019 $ 8,806,310 Supplemental Infor

financial statements

financial statements. - 5 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) Three and Nine Months Ended September 30, 2025 Additional Total Common Stock Paid-in Accumulated Treasury Stockholders' Shares Amount Capital Deficit Stock Equity BALANCE, DECEMBER 31, 2024 49,377,617 $ 493,776 $ 49,581,303 $ ( 29,378,906 ) $ ( 3,882,494 ) $ 16,813,679 Issuance of stock-based compensation 183,881 1,839 95,661 — — 97,500 Compensation expense related to stock options — — 359,197 — — 359,197 Compensation related to restricted stock — — 227,860 — — 227,860 Issuance of warrants — — 13,032 — — 13,032 Net loss — — — ( 1,166,237 ) — ( 1,166,237 ) BALANCE, MARCH 31, 2025 49,561,498 $ 495,615 $ 50,277,053 $ ( 30,545,143 ) $ ( 3,882,494 ) $ 16,345,031 Issuance of stock-based compensation 93,961 940 96,560 — — 97,500 Compensation expense related to stock options — — 147,944 — — 147,944 Compensation related to restricted stock — — 142,766 — — 142,766 Net loss — — — ( 206,867 ) — ( 206,867 ) BALANCE, JUNE 30, 2025 49,655,459 $ 496,555 $ 50,664,323 $ ( 30,752,010 ) $ ( 3,882,494 ) $ 16,526,374 Issuance of stock-based compensation 25,454 254 97,246 — — 97,500 Compensation expense related to stock options — — 254,697 — — 254,697 Compensation related to restricted stock — — 275,195 — — 275,195 Proceeds from exercise of employee stock options 32,781 328 88,697 — — 89,025 Net loss — — — ( 777,966 ) — ( 777,966 ) BALANCE, SEPTEMBER 30, 2025 49,713,694 $ 497,137 $ 51,380,158 $ ( 31,529,976 ) $ ( 3,882,494 ) $ 16,464,825 - 6 - Table of Contents Three and Nine Months Ended September 30, 2024 Additional Total Common Stock Paid-in Ret

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