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Nephros Inc. (NEPH+3.82%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total net revenues to $3.518 million from $3.742 million in the same quarter the previous year. The decrease is attributed to a decline in programmatic business and slower order patterns from larger accounts.
Cost of goods sold for the quarter was $1.369 million, representing 39% of sales, compared to 41% in the same quarter of the previous year. The decrease in cost ratio is due to favorable pricing terms with the largest supplier.
The company reported a gross margin of $2.149 million for the quarter, compared to $2.194 million in the previous year.
Selling, general, and administrative expenses decreased to $1.721 million from $2.137 million, primarily due to a decrease in bonus accrual, sales commission expense, and stock compensation expense.
Net income for the quarter was $183,000, compared to a net loss of $182,000 in the previous year.
Cash used in operating activities was $1.8 million for the nine months ended September 30, 2024, while cash used in investing and financing activities was $50,000 and $4,000, respectively.
Nephros had a working capital of $6.298 million as of September 30, 2024. The company acknowledges its focus on growth in sales and managing tight expenses with the goal of returning to cash flow positive from operations.
The filing also details the dissolution of its subsidiary, Specialty Renal Products, Inc., and the assignment of its remaining assets to Nephros.
The company does not anticipate any changes in its internal control over financial reporting that could materially affect its financial condition.
Nephros continues to focus on marketing its water filtration products to the medical and commercial markets, highlighting its dependence on a few large customers for a significant portion of its sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nephros Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.