KORU Medical Systems, Inc.
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
KRMD$3.09+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001161697-26-000108
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001161697-26-000189
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 45 previous paragraphs and 59 current paragraphs.
28 unchanged; 17 reworded; 10 added; 0 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 5 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
Net Income
Current report
Net Revenues
Current report
Total net revenues increased $4.0 million, or 20.1% to $23.8 million, for the six months ended June 30, 2026, as compared with the same prior year period. Domestic core revenues increased by 12.1% to $15.7 million, primarily due to volume growth in pumps and consumables, driven by new patient starts and market share gains. International core revenues increased by 46.5% to $6.8 million, primarily due to higher pump volumes, driven by prefill patient conversions, new patient starts in existing markets and entry into new geographic markets. Pharma services and clinical trials net revenues increased by $0.1 million, or 11.8% to $1.3 million in the six months ended June 30, 2026, as compared to the prior year period, driven by clinical trial orders and NRE revenue.
Current report
Gross Profit
Current report
Gross profit increased by $2.6 million or 20.4% in the six months ended June 30, 2026, as compared with the same prior year period. The increase in the first half of 2026 was driven by an increase in net revenues of $4.0 million as described above. Gross margin increased to 63.3% in the six months ended June 30, 2026, as compared with 63.1% in the prior year period. The increase in gross margin was primarily driven by lower manufacturing costs, increases in average selling prices, partially offset by tariff related price increases.
Current report
Operating Expenses
Current report
Selling, general and administrative expenses increased $1.2 million, or 10.4%, during the six months ended June 30, 2026, as compared with the prior year period, primarily due to increases in legal fees and compensation and benefits partially offset by lower consulting expenses.
Current report
Research and development expenses increased by $0.08 million, or 3.3% during the six months ended June 30, 2026, as compared with the same prior year period, primarily due to higher compensation and benefit expenses partially offset by lower project expenses.
Current report
Depreciation and amortization expense remained flat at $0.4 million in the six months ended June 30, 2026, as compared with $0.4 million in the same prior year period.
Current report
Our net loss decreased $0.8 million in the six months ended June 30, 2026, as compared with the same prior year period, mostly driven by an increase in gross profit of $2.6 million or 20.4%, partially offset by an increase in operating expenses of $1.2 million or 8.8%, and changes in other income and losses of $0.5 million.
Reworded paragraphs (17)
Previous wording
The Company ended the first quarter of 2026 with $11.8 million in net revenues, a 22.1% increase compared to $9.6 million in the same period last year. Revenues were driven by growth in our core domestic and international business of 11.7% and 35.2%, respectively, along with an increase of 166.0% in our pharma services and clinical trials business.
Current wording
The Company ended the second quarter of 2026 with $12.0 million in net revenues, an 18.2% increase compared to $10.2 million in the same period last year. Revenues were driven by growth in our core domestic and international business of 12.4% and 59.1%, respectively, along with a decrease of 35% in our pharma services and clinical trials business.
Previous wording
Gross profit for the first quarter of 2026 was $7.2 million, a 19.6% increase compared to $6.0 million in the same period last year, primarily driven by volume growth. Gross margin was 61.5% for the three months ended March 31, 2026, a decrease from 62.8% in the prior year period. We define gross margin as gross profit stated as a percentage of net revenues.
Current wording
Gross profit for the second quarter of 2026 was $7.8 million, a 21.2% increase compared to $6.5 million in the same period last year. Gross margin was 65.1% for the three months ended June 30, 2026, an increase from 63.5% in the prior year period. We define gross margin as gross profit stated as a percentage of net revenues.
Previous wording
Operating expenses for the first quarter of 2026 were $8.1 million, compared to $7.3 million for the same period last year, driven by an increase of $0.6 million in selling, general, and administrative expenses, and an increase of $0.2 million in research and development expenses.
Current wording
Operating expenses for the second quarter of 2026 were $7.2 million, an increase of 6.3%, compared to $6.8 million for the same period last year, driven by an increase of $0.6 million in selling, general, and administrative expenses, and a decrease of $0.1 million in research and development expenses.
Previous wording
The Company imports certain materials and products that are subject to U.S. government tariffs and import duties. On February 20, 2026, a US federal court ordered the U.S. government to begin refunding certain tariffs. The Company believes that some of the tariffs it has paid may be eligible for refund; however, the amount and timing of any potential refunds are uncertain. Accordingly, the Company has not recorded, nor plans to record, any benefit related to possible tariff refunds at this time.
Current wording
The Company imports certain materials and products that are subject to U.S. government tariffs and import duties. On February 20, 2026, a US federal court ordered the U.S. government to begin refunding certain tariffs. The Company believes that some of the tariffs it has paid may be eligible for refund; however, the amount and timing of any potential refunds are uncertain and not expected to have a material impact on the Company’s financial position. Accordingly, the Company has not recorded, nor plans to record, any benefit related to possible tariff refunds at this time.
Previous wording
Total net revenues increased $2.1 million, or 22.1%, to $11.8 million for the three months ended March 31, 2026, as compared to $9.6 million in the prior year period. Domestic core revenues were $7.7 million, an increase of 11.7% over the prior year period, primarily due to higher consumable volumes, driven by new patient starts and market share gains within new and existing accounts, supported by a strong underlying SCIg market. International core revenues were $3.3 million, an increase of 35.2% over the prior year period, primarily due to higher pump and consumable volumes, driven by distributor purchases supporting pre-filled syringe (PFS) conversions for a key EU market. Pharma services and clinical trials net revenues were $0.7 million, an increase of 166.0% over the prior year period, primarily due to higher clinical trial product revenues for advancing existing collaborations.
Current wording
Total net revenues increased $1.9 million, or 18.2%, to $12.0 million for the three months ended June 30, 2026, as compared to $10.2 million in the prior year period. Domestic core revenues were $8.0 million, an increase of 12.4% over the prior year period, primarily due to higher pump and consumable volumes, driven by new patient starts and market share gains within new and existing accounts, supported by a strong underlying SCIg market. International core revenues were $3.5 million, an increase of 59.1% over the prior year period, due to higher pump and consumable volumes, driven by distributor purchases supporting pre-filled syringe (PFS) conversions, and new patient starts in established EU markets. Pharma services and clinical trials net revenues were $0.6 million, a decrease of 35% over the prior year period, primarily due to lower clinical trial product revenues related to customer order timing.
Previous wording
Gross profit increased $1.2 million, or 19.6%, to $7.2 million in the three months ended March 31, 2026, as compared to $6.0 million in the prior year period, primarily driven by volume growth. Gross margin decreased to 61.5% in the three months ended March 31, 2026, as compared to 62.8% in the prior year period. The decrease in gross margin was primarily driven by higher production costs based on timing of production runs in the prior quarter that were amortized in the three months ended March 31, 2026, and tariff-related charges that did not occur in the prior year period, partially offset by a favorable geographic sales mix.
Current wording
Gross profit increased $1.4 million, or 21.2%, to $7.8 million in the three months ended June 30, 2026, as compared to $6.5 million in the prior year period, primarily driven by volume growth. Gross margin increased to 65.1% in the three months ended June 30, 2026, as compared to 63.5% in the prior year period. The increase in gross margin was primarily driven by lower manufacturing costs and higher average selling prices.
Previous wording
Selling, general and administrative expenses increased $0.6 million, or 10.5%, to $6.6 million during the three months ended March 31, 2026, as compared to $6.0 million in the prior year period. The increase in selling, general and administrative expenses was primarily driven by increases in legal fees and compensation expenses related to salary and stock compensation, partially offset by lower temporary labor expenses.
Current wording
Selling, general and administrative expenses increased $0.6 million, or 10.3%, to $5.9 million during the three months ended June 30, 2026, as compared to $5.4 million in the prior year period. The increase in selling, general and administrative expenses was primarily driven by increases in compensation and benefits from new hires, and legal fees, partially offset by lower stock compensation, recruiting, and consulting expenses.
Previous wording
Research and development expenses increased $0.2 million, or 18.1%, to $1.3 million during the three months ended March 31, 2026, as compared to $1.1 million in the prior year period, primarily due to higher compensation expenses for salary and stock compensation related to headcount additions, partially offset by lower temporary labor expenses.
Current wording
Research and development expenses decreased $0.1 million, or 10.5% to $1.1 million during the three months ended June 30, 2026, as compared to $1.2 million in the prior year period, primarily due to lower project spend and timing partially offset by higher compensation expenses for salary and stock compensation related to headcount additions
Previous wording
Our net loss decreased $0.4 million in the three months ended March 31, 2026, as compared to the prior year period, primarily driven by an increase in gross profit of $1.2 million, driven by increased revenues, partially offset by operating expense increases of $0.8 million.
Current wording
Our net income increased $0.5 million in the three months ended June 30, 2026, as compared to the prior year period, primarily driven by an increase in gross profit of $1.4 million from increased revenues, partially offset by operating expense increases of $0.4 million, and other income and losses change of $0.5 million due to an asset disposal.
Previous wording
Our principal source of liquidity is our cash on hand of $8.8 million as of March 31, 2026. Our principal source of operating cash inflows is from sales of our products and NRE. Our principal cash outflows relate to the purchase and production of inventory, funding of research and development, and selling, general and administrative expenses. To develop new products, support future growth, achieve operating efficiencies, and maintain product quality, we are continuing to invest in research and development and manufacturing equipment.
Current wording
Our principal source of liquidity is our cash on hand of $8.3 million as of June 30, 2026. Our principal source of operating cash inflows is from sales of our products and NRE. Our principal cash outflows relate to the purchase and production of inventory, funding of research and development, and selling, general and administrative expenses. To develop new products, support future growth, achieve operating efficiencies, and maintain product quality, we are continuing to invest in research and development and manufacturing equipment.
Previous wording
We expect that our cash on hand, cash flows from operations, and as needed, cash available under our credit facility, will be sufficient to meet our requirements at least through the next twelve months. Continued execution on our longer-term strategic plan may require the Company to draw on our credit facility, take on additional debt, raise capital through issuance of equity, or utilize a combination of the above. Our future capital requirements may vary from those currently planned and will depend on many factors, including our rate of sales growth, the timing and extent of spending on various strategic initiatives including research and development, our international expansion, the timing of new product introductions, market acceptance of our solutions, and overall economic conditions including inflation and the potential impact of global supply imbalances on the global financial markets. To the extent that current and anticipated future sources of liquidity are or are expected to be insufficient to fund our future business activities and requirements, we may be required to draw on our new credit facility or seek additional equity or debt financing sooner. There can be no assurance the Company will be able to obtain the financing or raise the capital required to fund operations or planned expansion.
Current wording
We expect that our cash on hand, cash flows from operations, and as needed, cash available under our credit facility, will be sufficient to meet our requirements at least through the next twelve months. Continued execution on our longer-term strategic plan may require the Company to take on additional debt, raise capital through issuance of equity, or utilize a combination of the above. Our future capital requirements may vary from those currently planned and will depend on many factors, including our rate of sales growth, the timing and extent of spending on various strategic initiatives including research and development, our international expansion, the timing of new product introductions, market acceptance of our solutions, and overall economic conditions including inflation and the potential impact of global supply imbalances on the global financial markets. To the extent that current and anticipated future sources of liquidity are or are expected to be insufficient to fund our future business activities and requirements, we may be required to obtain additional equity or debt financing sooner. There can be no assurance that the Company will be able to obtain the financing or raise the capital required to fund operations or planned expansion.
Previous wording
Net cash from operating activities was $0.01 million for the three months ended March 31, 2026, as compared to $(0.2) million in the prior year period. This net cash inflow of $0.01 million was primarily due to the net loss of $0.8 million, an increase in inventory of $0.8 million, offset by higher accounts payable of $0.4 million, higher accrued expenses of $0.2 million, and lower accounts receivable of $0.2 million. Additional offsets to the net loss were non-cash items including stock-based compensation expense of $0.7 million, and depreciation and amortization expense of $0.2 million.
Current wording
Net cash from operating activities was $0.2 million for the six months ended June 30, 2026, as compared to $(0.7) million in the prior year period. This net cash inflow of $0.2 million was due to a net loss of $0.6 million, working capital uses which netted $1.2 million and included a decrease of accrued expense by $2.0 million reflecting the pay-out of prior-year accrued bonuses, an increase in inventory of $0.8 million, and an increase in other receivables of $0.4 million partially offset by decreases in trade accounts receivable of $0.9 million, increases in accounts payable of $0.6 million, decreases of prepaid expense of $0.3 million, and other increases in payroll accruals and taxes of $0.3 million. Additional offsets to the net loss were non-cash items of $2.0 million including stock based compensation of $1.1 million, depreciation of $0.4 million, and losses on asset disposals of $0.4 million.
Previous wording
Net cash used in operating activities was $0.2 million for the three months ended March 31, 2025, as compared to $0.3 million in the prior year period. This net cash usage of $0.2 million was primarily due to the net loss of $1.2 million, an increase in accounts receivable of $0.2 million, and increases in inventory of $0.5 million, partially offset by increases in accounts payable of $0.4 million, expense and payroll related accruals of $0.3 million, and other liabilities of $0.1 million. Additional offsets to the net loss were non-cash items including stock-based compensation expense of $0.7 million, and depreciation and amortization expense of $0.2 million.
Current wording
Net cash used in operating activities was $0.7 million for the six months ended June 30, 2025, as compared to $0.3 million in the prior year period. This net cash usage of $0.7 million was primarily due to the net loss of $1.3 million, a decrease in accounts receivable and contract assets of $0.9 million and an increase in prepaid expenses of $0.4 million, offset by increases in inventory of $1.1 million and decreases in accounts payable of $0.6 million. Additional offsets to the net loss were non-cash items including stock-based compensation expense of $1.1 million, and depreciation and amortization expense of $0.4 million.
Previous wording
Net cash used in investing activities of $0.1 million for the three months ended March 31, 2026, was for capital expenditures for manufacturing equipment related to our new infusion pump production line.
Current wording
Net cash used in investing activities of $0.7 million for the six months ended June 30, 2026, was related to an acquisition of technology assets, capitalized software development costs, and capital expenditure for manufacturing equipment for our next generation pump production line.
Previous wording
Net cash used in investing activities of $0.4 million for the three months ended March 31, 2025, was for capital expenditures for manufacturing equipment related to our new consumables production lines.
Current wording
Net cash used in investing activities of $0.5 million for the six months ending June 30, 2025, was due to capital expenditures related to purchases of manufacturing equipment for next generation consumable and pump production lines.
Previous wording
Net cash used in financing activities of $0.03 million for the three months ended March 31, 2026 was due to payments for our finance leases.
Current wording
Net cash used in financing activities of $0.1 million for the six months ended June 30, 2026 was for payment for taxes related to net share settlement of equity awards, and for payments on our finance leases.
Previous wording
Net cash used in financing activities of $0.2 million for the three months ended March 31, 2025 was due primarily to payments on our note payable for insurance premium financing.
Current wording
Net cash used in financing activities of $0.4 million for the six months ended June 30, 2025 was primarily due to payments on our note payable for insurance premium financing.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Six months ended June 30, 2026, compared to June 30, 2025
Current report — wording carried from elsewhere
The following table summarizes our net revenues for the six months ended June 30, 2026, and 2025:
Current report — wording carried from elsewhere
Our gross profit for the six months ended June 30, 2026 and 2025 is as follows:
Current report — wording carried from elsewhere
Our selling, general and administrative, research and development and depreciation and amortization expenses for the six months ended June 30, 2026 and 2025 are as follows: