KORU Medical Systems, Inc 8-K, filed Mar 23, 2021

KORU Medical Systems, Inc. (KRMD)

8-K 2021-03-23 For: 2021-03-23

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Added on April 06, 2026

About this 8-K

KORU Medical Systems, Inc filed this 8-K on March 23, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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New York	0-12305	13-3044880
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

24 Carpenter Road, Chester, New York	10918
(Address of principal executive offices)	(Zip Code)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
common stock, $0.01 par value	KRMD	The Nasdaq Stock Market

Exhibit No.	Description

99.1	Press release dated March 23, 2021

	REPRO MED SYSTEMS, INC. (Registrant)

Date: March 23, 2021	By:	/s/ Karen Fisher
		Karen Fisher Chief Financial Officer


●	Net revenue of $24.2 million

●	Gross margin of 62%

●	Net loss of $1.2 million

●	Ended the year with $27.3 million in cash and cash equivalents


●	Net revenue of $4.1 million

●	Gross margin of 57%

●	Net loss of $0.8 million


	December 31,			December 31,
	2020			2019

ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	27,315,286		$	5,870,929
Accounts receivable less allowance for doubtful accounts of $24,469 and $32,645 for December 31, 2020, and December 31, 2019, respectively		2,572,954			3,234,521
Inventory		6,829,772			2,388,477
Prepaid expenses		807,780			387,396
TOTAL CURRENT ASSETS		37,525,792			11,881,323
Property and equipment, net		1,167,623			611,846
Intangible assets, net of accumulated amortization of $199,899 and $288,967 at December 31, 2020 and December 31, 2019, respectively		843,587			807,135
Operating lease right-of-use assets		236,846			373,734
Deferred income tax assets, net		125,274			188,241
Other assets		19,812			19,582
TOTAL ASSETS	$	39,918,934		$	13,881,861

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	624,920		$	572,656
Accrued expenses		2,610,413			1,296,612
Accrued payroll and related taxes		287,130			190,265
Accrued tax liability		—			204,572
Finance lease liability – current		2,646			5,296
Operating lease liability – current		141,293			136,888
TOTAL CURRENT LIABILITIES		3,666,402			2,406,289
Finance lease liability, net of current portion		—			2,646
Operating lease liability, net of current portion		95,553			236,846
TOTAL LIABILITIES		3,761,955			2,645,781
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, $0.01 par value, 75,000,000 shares authorized, 46,680,119 and 42,239,788 shares issued; 43,259,617 and 39,502,557 shares outstanding at December 31, 2020, and December 31, 2019, respectively		466,801			422,398
Additional paid-in capital		35,880,986			6,293,069
Treasury stock, 3,420,502 shares and 2,737,231 shares at December 31, 2020 and December 31, 2019, respectively, at cost		(3,843,562	)		(344,204	)
Retained earnings		3,652,754			4,864,817
TOTAL STOCKHOLDERS’ EQUITY		36,156,979			11,236,080
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	39,918,934		$	13,881,861


	For the Three Months Ended					For the Years Ended
	December 31,					December 31,
	2020			2019		2020			2019

NET SALES	$	4,057,220		$	6,222,134	$	24,176,448		$	23,162,621
Cost of goods sold		1,759,947			2,274,850		9,240,362			8,308,811
Gross Profit		2,297,273			3,947,284		14,936,086			14,853,810

OPERATING EXPENSES
Selling, general and administrative		2,988,330			2,794,861		12,028,310			9,771,744
Litigation		466			934,412		2,447,213			3,415,683
Research and development		352,116			290,020		1,296,753			740,475
Depreciation and amortization		120,794			87,635		418,595			340,229
Total Operating Expenses		3,461,706			4,106,928		16,190,871			14,268,131

Net Operating (Loss)/Profit		(1,164,433	)		(159,644)		(1,254,785	)		585,679

Non-Operating Income
Gain/(Loss) on currency exchange		12,700			2,529		1,536			(17,754	)
(Loss)/Gain on disposal of fixed assets, net		—			(1,910)		16,591			47,830
Interest income, net		18,705			21,572		42,395			80,663
TOTAL OTHER INCOME		31,405			22,191		60,522			110,739

(LOSS)/INCOME BEFORE INCOME TAXES		(1,133,028	)		(137,453)		(1,194,263	)		696,418

Income Tax Benefit/(Expense)		298,400			57,197		(17,800	)		(132,069	)

NET (LOSS)/INCOME	$	(834,628	)	$	(80,256)	$	(1,212,063	)	$	564,349

NET (LOSS)/INCOME PER SHARE

Basic	$	(0.02	)	$	0.00	$	(0.03	)	$	0.01
Diluted	$	(0.02	)	$	0.00	$	(0.03	)	$	0.01

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

Basic		43,732,728			39,502,152		41,929,736			38,778,074
Diluted		43,732,728			39,502,152		41,929,736			39,061,310


	For the Years Ended December 31,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net (Loss)/Income	$	(1,212,063	)	$	564,349
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities:
Stock-based compensation expense		1,618,732			1,204,844
Stock-based litigation settlement expense		1,285,102			—
Depreciation and amortization		418,595			340,229
Gain on disposal of fixed assets		(16,591	)		(47,830	)
Deferred capital gain – building lease		—			(3,763	)
Deferred income taxes		62,967			(186,775	)
Provision for doubtful accounts		(8,176	)		(4,855	)
Abandonment of intangible assets		41,919			—
Changes in operating assets and liabilities:
Decrease/(Increase) in accounts receivable		669,743			(1,803,812	)
Increase in inventory		(4,441,295	)		(284,598	)
Increase in prepaid expenses and other assets		(420,614	)		(140,805	)
Increase in accounts payable		52,264			119,158
Increase/(Decrease) in accrued payroll and related taxes		96,865			(231,449	)
Increase in accrued expenses		1,313,801			607,963
(Decrease)/Increase in accrued tax liability		(204,572	)		187,964
NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES		(743,323	)		320,620

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(920,604	)		(201,174	)
Purchases of intangible assets		(140,548	)		(224,365	)
Proceeds from certificates of deposit		—			1,517,927
Proceeds from disposal of property and equipment		25,000			217,821
NET CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES		(1,036,152	)		1,310,209

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of equity		26,728,486			508,900
Purchase of treasury stock		(3,499,358	)		—
Borrowings from indebtedness		4,976,508			—
Payments on indebtedness		(4,976,508	)		—
Payments on finance lease liability		(5,296	)		(4,783	)
Payment for cancelled shares		—			(2,820	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		23,223,832			501,297

NET INCREASE IN CASH AND CASH EQUIVALENTS		21,444,357			2,132,126
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		5,870,929			3,738,803
CASH AND CASH EQUIVALENTS, END OF YEAR	$	27,315,286		$	5,870,929

Supplemental Information
Cash paid during the years for:
Interest	$	27,736		$	342
Income taxes	$	321,983		$	130,879

Schedule of Non-Cash Investing and Financing Activities:
Non-cash equity issuance for the EMED Settlement	$	938,094		$	—


	Three Months Ended						Year Ended
Reconciliation of GAAP Net (Loss)/Income	December 31,						December 31,
to Non-GAAP Adjusted EBITDA:	2020			2019			2020			2019
GAAP Net (Loss)/Income	$	(834,628	)	$	(80,256	)	$	(1,212,063	)	$	564,349
Income Tax (Benefit)/Expense		(298,400	)		(57,197	)		17,800			132,069
Depreciation and Amortization		120,794			87,635			418,595			340,229
Interest Income, Net		(18,705	)		(21,572	)		(42,395	)		(80,663	)
Reorganization Charges		95,700			—			95,700			354,926
Discontinued Product (Income)/Expense		(459	)		—			70,859			—
Litigation		466			934,212			2,447,213			3,415,683
Manufacturing Initiative Expenses		51,723			110,282			246,527			230,668
Stock-based Compensation Expense		607,592			564,069			1,618,732			1,204,844
Non-GAAP Adjusted EBITDA	$	(275,917	)	$	1,537,173		$	3,660,968		$	6,162,105