Nuo Therapeutics, Inc.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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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 14, 2026
AURXStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001437749-26-017104
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001437749-26-028053
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 71 previous paragraphs and 103 current paragraphs.
58 unchanged; 13 reworded; 27 added; 0 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 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 (27)
Current report
Supply and Manufacturing
Current report
We outsource the manufacturing of various Aurix product components to contract manufacturers. While we believe these manufacturers demonstrate competency, reliability and stability, there is no assurance that one or more of them will not experience an interruption or inability to provide us with the components needed to satisfy customer demand.
Current report
While most of the components of Aurix are generally readily available on the open market, a reagent used for Aurix - bovine thrombin (Thrombin-JMI or “TJMI”) - is available solely through Pfizer, with which we have a long-standing supply agreement. Historically, we have used single suppliers for several components of the Aurix product line; however, when feasible, we obtain alternative suppliers of components, such as in 2025 when we established a dual supply for an ascorbic acid reagent component of Aurix.
Current report
In Spring 2026, we became aware that Pfizer was experiencing challenges regarding regular uninterrupted supply of commercially available TJMI. Our understanding has been that the TJMI supply challenges related to a diluent co-packaged with the lyophilized thrombin vial in the TJMI product. We use only the lyophilized thrombin (not the diluent) as a component in the Aurix reagent kit. Nonetheless, in late June 2026, Pfizer notified us that TJMI would be unavailable with recovery expected in early 2027.
Current report
We had previously been addressing the potential unavailability of TJMI in whole or in part via possible alternative supply arrangements. Upon notice of TJMI outage in late June 2026, we initiated contact with an FDA drug shortage group to discuss possible mitigation approaches to an impending Aurix shortage. In addition, we remain engaged with Pfizer on supply to us of bulk lyophilized thrombin in different packaging configurations with potential availability prior to 2027. There can be no assurance as to when or whether the supply of TJMI will resume, in its original or different packaging configurations, or whether the supply of TJMI will resume at preexisting levels. Further, upon a resumption of its supply, Pfizer may unilaterally raise the price or alter its allocation of TJMI to its customers including us or may decline to renew or may terminate the supply agreement.
Current report
Due to the TJMI supply chain interruption, the Aurix branded and the Private Label products entered a temporary out-of-stock situation in early August. While we have mitigated the thrombin supply outage as of the filing date of the Quarterly Report with an alternative supply for at least the short term, we are continuing to pursue longer-term alternative approaches, supplies, and suppliers of thrombin to use in the Aurix product line. These alternatives include seeking FDA regulatory relief, utilizing human recombinant thrombin, and establishing sources of supply from outside the United States. Despite our efforts, we may be unable to obtain, utilize, or establish these alternatives in the long term, or at all, at prices or quality levels that are acceptable to us or that meet applicable regulatory clearance or approval requirements, including import and customs requirements. If these alternative approaches are insufficient or untimely, or if the TJMI supply chain interruption is more than temporary, our ability to supply Aurix to customers directly and through distributors would be disrupted and our Aurix commercialization efforts and operating results would be adversely affected.
Current report
If a temporary or permanent interruption in the supply of any other reagent were to occur, or the manufacturing costs charged by any supplier exceed what we can reasonably afford, we would have to seek alternative sources of supply. There is no assurance we would be able to identify a suitable second source of supply or do so without significant delay. Despite our efforts to maintain an adequate supply of inventory, the loss a supplier or its inability to provide us with an adequate supply of a reagent could cause delay in manufacture of our product, thereby impairing our ability to meet the demand of our customers and causing significant harm to our business. Any disruption of this nature or increased expenses could harm our commercialization efforts and adversely affect our operating results.
Current report
Comparison of Six Months Ended June 30, 2026 and 2025
Current report
Revenue and Gross Profit
Current report
Operating Expenses
Current report
Other Income (Expense)
Current report
Amended and Restated Loan and Security Agreement
Current report
Loan Agreement
Current report
On May 29, 2026, the Company entered into an Amended and Restated Loan and Security Agreement (the “Interim Loan Agreement”) with five lenders (collectively, the “Lenders”), including Scott Pittman, a director of the Company. The Interim Loan Agreement amended and restated the Loan and Security Agreement (the “Initial Loan Agreement”) dated as of January 21, 2026 entered into between the Company and four of the Lenders, including Mr. Pittman.
Current report
The Interim Loan Agreement provided for a $400,000 increase in the aggregate commitment of the Lenders and an adjustment of their funding amounts such that their loans totaled an aggregate principal amount of up to $2.0 million with (a) $1,000,000 previously funded on the January 23, 2026 initial closing date (the “Initial Funding”), (b) $675,000 funded on the interim closing date (the “Interim Funding”), and (c) $325,000 to be funded, if requested in advance by the Company and subject to closing conditions, on September 30, 2026 (the “Second Funding”). The closing of the Interim Funding occurred on May 29, 2026.
Current report
At the closing of the Interim Funding, the Company issued a Secured Promissory Note (each, an “Interim Note”) to each of the Lenders and upon any Second Funding, the Company will issue an additional Secured Promissory Note (each, if any, a “Second Note”). The Interim Notes bear interest at an annual rate of 12%. If the Company requests a Second Funding, the Second Notes will also bear interest at an annual rate of 12%. In addition, pursuant to the Interim Loan Agreement, the interest rate of Initial Notes previously issued pursuant to the Initial Loan Agreement increased from 10% to an annual rate of 12% upon the Interim Funding.
Current report
The maturity date of the Initial Notes previously issued, the Interim Notes, and any Second Notes is December 31, 2028 (the “Maturity Date”).
Current report
Interest on the Initial Notes, the Interim Notes, and, if any, the Second Notes (together, the “Notes”) will be payable in Interest Warrants as described below, and not in cash. Interest on the Notes will be payable and issued at the Maturity Date (or earlier upon certain prepayments as described below). Interest on the Notes will accrue on a quarterly calendar basis without regard to partial quarters.
Current report
The Notes are interest only through December 31, 2026. The principal on the Notes is repayable in cash in equal quarterly installments on the last business day of each calendar quarter commencing March 31, 2027 and continuing to the Maturity Date.
Current report
The Company may, at its option on the last business day of a calendar quarter commencing December 31, 2026, voluntarily prepay the Notes in their entirety by paying the then outstanding principal balance and all accrued interest on the Notes, subject to a prepayment fee equal to 1.5% of the then outstanding principal balance if the Notes are prepaid on or after December 31, 2026 but before December 31, 2027, with no prepayment fee applicable to such prepayments on or after December 31, 2027. The prepayment fee, if any, is payable in Prepayment Restated Warrants as described below, and not in cash, that will vest in the event of a voluntary prepayment.
Current report
In addition, the Interim Loan Agreement mandates the prepayment of the Notes in the event of (i) an equity financing of at least $5 million, (ii) certain changes in control as defined in the Interim Loan Agreement, or (iii) a default by the Company. In the event of such an equity financing or change in control, the Company has agreed to repay the Notes in their entirety by paying the then outstanding principal balance and all accrued interest on the Notes, subject to a prepayment fee equal to 2.75% of the then outstanding principal balance if such event occurs before December 31, 2026 and 1.5% of the then outstanding principal balance if such event occurs on or after December 31, 2026 but before December 31, 2027, with no prepayment fee applicable if such event occurs on or after December 31, 2027. In the event of a default, the Company has agreed to repay the Notes in their entirety by paying the then outstanding principal balance and all accrued interest on the Notes, subject to a prepayment fee equal to 2.75% of the then outstanding principal balance. The prepayment fee, if any, is payable in Prepayment Restated Warrants as described below, and not in cash, that will vest in the event of a mandatory prepayment.
Current report
The Notes are secured by a lien upon and security interest in all of the Company’s assets, including intellectual property.
Current report
Warrants
Current report
On May 29, 2026, the closing date of the Interim Funding, and pursuant to the Interim Loan Agreement, the Company (a) issued to each Lender warrants, a portion of which are subject to vesting provisions, to purchase shares of the Company’s common stock, (b) cancelled certain warrants previously issued pursuant to the Initial Funding, and (c) again agreed to issue additional warrants to each Lender in the Interim Funding to purchase shares of the Company’s common stock as payment for accrued interest under the Notes.
Current report
The securities issued by the Company at the closing of the Interim Funding consisted of: (i) warrants representing a fee of 0.75% of each Lender’s revised, as applicable, commitment pursuant to the Interim Loan Agreement (the “Commitment Supplemental Warrants”); (ii) warrants representing a fee of 1.25% of each Lender’s loan amount in the Interim Funding (the “Origination Interim Warrants”); (iii) warrants representing 25% coverage of each Lender’s loan amount in the Interim Funding (the “Capital Interim Warrants”); (iv) warrants representing a fee of 1.25% of each Lender’s loan commitment amount, if any, in a Second Funding, vesting on September 30, 2026 only upon the occurrence of a Second Funding (the “Origination Restated Second Warrants”); (v) warrants representing 25% coverage of each Lender’s loan commitment amount, if any, in a Second Funding, vesting on September 30, 2026 only upon the occurrence of a Second Funding (the “Capital Restated Second Warrants”); and (vi) warrants representing a fee, if any, vesting only in the event of a voluntary or mandatory prepayment as described above and at a percentage as described above of each Lender’s then outstanding principal balance (the “Prepayment Restated Warrants”). In addition as discussed above, warrants are issuable by the Company at the Maturity Date (or earlier upon voluntary or mandatory prepayment as described above) as payment for accrued interest on the Notes (the “Interest Warrants”).
Current report
Except as described above, each of the warrants issued and issuable under the Interim Loan Agreement contains similar material terms. The exercise price of each of the warrants is $1.50 per share of the Company’s common stock. The determination of the number of shares issuable upon exercise of each of the warrants is calculated based upon the same $1.50 exercise price. Each of the warrants contains provisions for anti-dilution and certain other adjustments, such as due to stock dividends, stock splits, and reverse stock splits. The expiration date of each warrant is January 23, 2031 (the “Expiration Date”), which is five years from the closing date of the Initial Funding. Subject to the vesting provisions described above, each of the warrants is exercisable at any time, or from time to time up to and including the Expiration Date, by (a) making a cash payment equal to the exercise price multiplied by the quantity of shares, or (b) on a cashless basis by receiving a net number of shares calculated pursuant to the formula set forth in the warrant, provided that the shares issuable upon exercise are not registered for sale under the Securities Act of 1933, as amended.
Current report
Accordingly, upon the Interim Funding on May 29, 2026, the Company issued securities representing: (i) Commitment Supplemental Warrants, Origination Interim Warrants, and Capital Interim Warrants (together, the “Interim Warrants”) immediately exercisable for an aggregate of 120,125 shares; (ii) Origination Restated Second Warrants and Capital Restated Second Warrants (together, the “Second Restated Warrants”), vesting upon a Second Funding, exercisable for an aggregate of 56,875 shares, and (iii) Prepayment Restated Warrants, vesting upon a voluntary or mandatory prepayment event as described above, exercisable for an aggregate of up to 36,665 shares. The number of Interim Warrants reflects a net reduction of 250 shares to account for a $50,000 decrease in the commitment amount of two of the Lenders since the Initial Funding. In addition, upon the Interim Funding, the Company cancelled, as previously issued to the four Lenders in the Initial Funding, securities representing (i) Origination Second Warrants and Capital Second Warrants (together, the “Second Warrants”), which had not vested, exercisable for an aggregate of 105,000 shares, and (ii) Prepayment Warrants, which had not vested, exercisable for an aggregate of up to 29,332 shares. Further, the Company has agreed to issue Interest Warrants at the Maturity Date (or earlier upon voluntary or mandatory prepayment as described above) immediately then exercisable for an aggregate of up to 303,667 shares representing the maximum interest payable for the maximum principal amount of $2.0 million potentially funded under the notes and then repaid by the Maturity Date per the terms of the Interim Loan Agreement.
Reworded paragraphs (13)
Previous wording
Although the FDA cleared the Aurix System for marketing for wound care management in 2007 under Section 510(k) of the FDCA, economically viable reimbursement in the commercial market for the product only became viable with CMS's issuance of the NCD in 2021. For 2026, the CMS national average reimbursement rate for the Aurix System is $2,108 per treatment in place of service ("POS") 22 (hospital outpatient departments), which we believe provides appropriate payment to facilities for product usage. We submitted public comments to CMS as part of its annual rule-making procedures under the Physician Fee Schedule ("PFS") for payments to clinicians in primarily POS 11 (physician offices) in both 2023 and 2024. In November 2024, CMS issued its final PFS for calendar 2025 and established a national average payment of $890. In response to this final rule which removed the payment amount discretion from the MACs within POS 11, the Aurix System became economically viable within the physician office care setting effective January 1, 2025. For 2026, the CMS national average reimbursement rate for the Aurix System is $1,064 per treatment in POS 11 (private offices).
Current wording
In 2023 and 2024, we submitted public comments to CMS as part of its annual rule-making procedures under the Physician Fee Schedule ("PFS") for payments to clinicians in primarily POS 11 (physician offices) in both 2023 and 2024. In November 2024, CMS issued its final PFS for calendar 2025 and established a national average payment of $890. In response to this final rule which removed the payment amount discretion from the MACs within POS 11, the Aurix System became economically viable within the physician office care setting effective January 1, 2025. For 2026, the CMS national average reimbursement rate for the Aurix System is $1,064 per treatment in POS 11 (private offices).
Previous wording
As of March 31, 2026, we had established contractual relationships with more than 200 third-party entity and individual representatives. The number of sales agent representatives may continue to expand modestly in the months ahead, but the current focus is broadening commercial customer relationships with wound care providers operating in private office settings while continuing to engage with hospitals and hospital systems regarding expanded POS 22 usage while ensuring that the reimbursement mechanisms are appropriately administered by the local Medicare Administrative Contractors in support of the April 2021 NCD.
Current wording
As of June 30, 2026, we had established contractual relationships with more than 200 third-party entities and individual representatives. The number of sales agent representatives may continue to expand modestly in the months ahead, but the current focus is broadening commercial customer relationships with wound care providers operating in private office settings while continuing to engage with hospitals and hospital systems regarding expanded POS 22 usage while ensuring that the reimbursement mechanisms are appropriately administered by the local Medicare Administrative Contractors in support of the April 2021 NCD.
Previous wording
The amounts presented in this comparison section are rounded to the nearest thousand.
Current wording
The amounts presented in these comparison sections are rounded to the nearest thousand.
Previous wording
Total revenues for the three months ended March 31, 2026 totaled approximately $1,302,000 including approximately $78,000 of distribution fee revenue related to the Smith+Nephew distribution agreement as amended. Product revenues for the three months ended March 31, 2026 totaled approximately $1,224,000 in comparison to product and total revenues of approximately $484,000 for the three months ended March 31, 2025 representing an increase of approximately $740,000 or approximately 153%. Product revenues associated with the Smith+Nephew private label distribution arrangement recognized during the three months ended March 31, 2026 consisted of (i) centrifuge devices sold to Smith+Nephew and (ii) fulfillment of purchase orders for stocking of Private Label kits. Associated gross profit was approximately $850,000 for the three months ended March 31, 2026 in comparison to approximately $363,000 of gross profit in the three months ended March 31, 2025.
Current wording
Total revenues for the three months ended June 30, 2026 totaled approximately $1,769,000 including approximately $78,000 of distribution fee revenue related to the Smith+Nephew distribution agreement as amended. Product revenues for the three months ended June 30, 2026 totaled approximately $1,691,000 in comparison to Aurix only product revenues of approximately $625,000 for the three months ended June 30, 2025 representing an increase of approximately $1,066,000 or approximately 170%. Product revenues associated with the Smith+Nephew private label distribution arrangement recognized during the three months ended June 30, 2026 consisted of (i) centrifuge devices sold to Smith+Nephew and (ii) fulfillment of purchase orders for stocking of Private Label kits. Associated gross profit was approximately $1,170,000 for the three months ended June 30, 2026 in comparison to approximately $541,000 of gross profit in the three months ended June 30, 2025.
Previous wording
The increase in revenues was due primarily to (i) increased Aurix product revenues resulting from an expanding customer base over the past year, (ii) Smith+Nephew related product revenues for centrifuge devices and kits solely and (iii) distribution fee revenue recognized under the distribution agreement as amended. Aggregate gross margin was approximately 65% for the three months ended March 31, 2026 as compared to approximately 75% for the three months ended March 31, 2025. The gross margin decline was primarily due to the centrifuge devices sold to Smith+Nephew at a near zero gross margin on the negotiated transfer price of the devices which was partially offset by distribution fee revenue having no associated cost.
Current wording
The increase in revenues was due primarily to (i) increased Aurix product revenues resulting from an expanding customer base over the past year, (ii) Smith+Nephew related product revenues for centrifuge devices and kits and (iii) distribution fee revenue recognized under the distribution agreement as amended. Aggregate gross margin was approximately 66% for the three months ended June 30, 2026 as compared to approximately 77% for the three months ended June 30, 2025. The gross margin decline was primarily due to (i) the centrifuge devices sold to Smith+Nephew at a near zero gross margin on the transfer price of the devices and (ii) lower product gross margins on sales of Private Label kits to Smith+Nephew resulting from transfer pricing which was partially offset by approximately 4% of gross margin attributable directly to distribution fee revenue having no associated cost.
Previous wording
Interest income (expense), net for the three months ended March 31, 2026 primarily represents (i) $25,000 of non-cash interest expense on the secured notes payable and (ii) $149,365 of debt discount amortization due to our election of the fair value option while other income (expense) for the three months ended March 31, 2025 was nominal.
Current wording
Interest income (expense), net for the three months ended June 30, 2026 primarily represents (i) $50,250 of non-cash interest expense on the secured notes payable and (ii) $63,660 of debt discount amortization considered interest expense due to our election of the fair value option while other income (expense) for the three months ended June 30, 2025 was nominal.
Previous wording
Total operating expenses increased approximately $188,000 to approximately $1,296,000 comparing the three months ended March 31, 2026 to the three months ended March 31, 2025. The increase from the prior year was due primarily to increases in (i) compensation and benefit costs of approximately $110,000 and (ii) third party commission expense of approximately $158,000 for independent sales representatives and distributors resulting from increased Aurix product revenues which was partially offset by a decrease in professional fees of approximately $74,000 as the costs associated with the finalization of the Smith+Nephew distribution agreement were absent in the current year period.
Current wording
Total operating expenses increased approximately $331,000 to approximately $2,633,000 comparing the six months ended June 30, 2026 to the six months ended June 30, 2025. The increase from the prior year was due primarily to increases in (i) compensation and benefit costs of approximately $179,000 and (ii) third party commission expense of approximately $246,000 for independent sales representatives and distributors resulting from increased Aurix product revenues which was partially offset by a decrease in professional fees of approximately $152,000 primarily as the costs associated with finalization of the Smith+Nephew distribution agreement and SEC registration expenses were absent in the current year period.
Previous wording
As of March 31, 2026, we had cash balances of approximately $0.3 million, total current assets of approximately $1.5 million and total current liabilities of approximately $1.4 million. As an operational business, we have a history of losses and are not currently profitable. For the years ended December 31, 2025, and 2024, we incurred net losses of approximately $2.5 million and $2.3 million, respectively. As of March 31, 2026, our accumulated deficit was approximately $35.4 million and our stockholders’ deficit was approximately $1.4 million.
Current wording
As of June 30, 2026, we had cash balances of approximately $0.4 million, total current assets of approximately $2.0 million and total current liabilities of approximately $1.6 million. As an operational business, we have a history of losses and are not currently profitable. For the years ended December 31, 2025, and 2024, we incurred net losses of approximately $2.5 million and $2.3 million, respectively. As of June 30, 2026, our accumulated deficit was approximately $35.7 million and our stockholders’ deficit was approximately $1.5 million.
Previous wording
In January 2026, we received funding proceeds from the issuance of secured notes payable of $500,000 in addition to $500,000 of proceeds which were pre-funded on December 31, 2025. The total amount of notes payable at closing was $1,000,000.
Current wording
In January 2026, we received funding proceeds from the issuance of secured notes payable of $500,000 in addition to $500,000 of proceeds which were pre-funded on December 31, 2025. The total amount of notes payable at the initial closing was $1,000,000. In May 2026, we received additional proceeds of $675,000 from the issuance of secured notes payable in an interim funding.
Previous wording
Cash used in operating activities for the three months ended March 31, 2026 of approximately $784,000 primarily reflects our net loss of approximately $618,000 adjusted by (i) approximately $423,000 net change in operating assets and liabilities, (ii) non-cash interest expense and amortization of debt discount on notes payable issued of approximately $175,000, and (iii) approximately $83,000 in total for amortization of right of use assets, depreciation of property and equipment, stock-based compensation, and vendor expense settled in shares of common stock.
Current wording
Cash used in operating activities for the six months ended June 30, 2026 of approximately $1,021,000 primarily reflects our net loss of approximately $896,000 adjusted by (i) approximately $604,000 net change in operating assets and liabilities and partially offset by (ii) non-cash interest expense and amortization of debt discount on notes payable issued of approximately $289,000, and (iii) approximately $191,000 in total for amortization of right of use assets, depreciation of property and equipment, stock-based compensation, and vendor expense settled in shares of common stock.
Previous wording
Cash provided by operating activities for the three months ended March 31, 2025 of approximately $2,000 primarily reflects our net loss of approximately $746,000 adjusted by (i) approximately $474,000 net change in operating assets and liabilities (excluding deferred revenue), (ii) approximately $52,000 in total for amortization of right of use assets, depreciation of property and equipment, and stock-based compensation, and (iii) $200,000 increase in deferred revenue. The deferred revenue is due to the receipt in February 2025 of a $200,000 exclusivity payment from Smith+Nephew in conjunction with the private label distribution agreement which was executed as of March 31, 2025.
Current wording
Cash provided by operating activities for the six months ended June 30, 2025 of approximately $264,000 primarily reflects our net loss of approximately $1,396,000 adjusted by (i) the $1,425,000 increase in deferred revenues (ii) approximately $83,000 net change in operating assets and liabilities (excluding deferred revenue), and (iii) approximately $116,000 in total for amortization of right of use assets, depreciation of property and equipment, and stock-based compensation. The deferred revenue is due to the receipt of the $1.5 million upfront distribution fee from Smith+Nephew in conjunction with the private label distribution agreement which was effective as of March 31, 2025.
Previous wording
Cash used in investing activities for the three months ended March 31, 2026 was nominal while cash used in investing activities for the three months ended March 31, 2025 primarily represents $220,000 in expenditures for the purchase of centrifuge devices.
Current wording
Cash used in investing activities for the six months ended June 30, 2026 and 2025 primarily represents approximately $250,000 and $220,000, respectively in capital expenditures for the purchase of centrifuge devices.
Previous wording
For the three months ended March 31, 2026, we received an additional $500,000 in loan proceeds under the secured notes payable after $500,000 of proceeds were pre-funded on December 31, 2025. We did not have any financing activities for the three months ended March 31, 2025.
Current wording
For the six months ended June 30, 2026, we received an additional $500,000 in loan proceeds under the secured notes payable after $500,000 of proceeds were pre-funded on December 31, 2025 and a further $675,000 in loan proceeds from an interim funding in May 2026. We did not have any financing activities for the six months ended June 30, 2025.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Although the FDA cleared the Aurix System for marketing for wound care management in 2007 under Section 510(k) of the FDCA, economically viable reimbursement in the commercial market for the product only became viable with CMS's issuance of the NCD in 2021. For 2026, the CMS national average reimbursement rate for the Aurix System is $2,108 per treatment in place of service ("POS") 22 (hospital outpatient departments), which we believe provides appropriate payment to facilities for product usage. For 2027, the proposed payment in POS 22 is $2,360 pursuant to the proposed Outpatient Prospective Payment System (“OPPS”) covering Medicare payments in hospitals and ambulatory surgery centers.
Current report — wording carried from elsewhere
Total operating expenses increased approximately $144,000 to approximately $1,337,000 comparing the three months ended June 30, 2026 to the three months ended June 30, 2025. The increase from the prior year was due primarily to increases in (i) compensation and benefit costs of approximately $67,000 and (ii) third party commission expense of approximately $110,000 for independent sales representatives and distributors resulting from increased Aurix product revenues which was partially offset by a decrease in professional fees of approximately $78,000 primarily as the costs associated with prior year SEC registration expenses were absent in the current year period.
Current report — wording carried from elsewhere
Total revenues for the six months ended June 30, 2026 totaled approximately $3,071,000 including approximately $156,000 of distribution fee revenue related to the Smith+Nephew distribution agreement as amended. Product revenues for the six months ended June 30, 2026 totaled approximately $2,915,000 in comparison to Aurix only product revenues of approximately $1,110,000 for the six months ended June 30, 2025 representing an increase of approximately $1,806,000 or approximately 163%. Product revenues associated with the Smith+Nephew private label distribution arrangement recognized during the six months ended June 30, 2026 consisted of (i) centrifuge devices sold to Smith+Nephew and (ii) fulfillment of purchase orders for stocking of Private Label kits. Associated gross profit was approximately $2,020,000 for the six months ended June 30, 2026 in comparison to approximately $904,000 of gross profit in the six months ended June 30, 2025.
Current report — wording carried from elsewhere
The increase in revenues was due primarily to (i) increased Aurix product revenues resulting from an expanding customer base over the past year, (ii) Smith+Nephew related product revenues for centrifuge devices and kits and (iii) distribution fee revenue recognized under the distribution agreement as amended. Aggregate gross margin was approximately 66% for the six months ended June 30, 2026 as compared to approximately 76% for the six months ended June 30, 2025. The gross margin decline was primarily due to (i) the centrifuge devices sold to Smith+Nephew at a near zero gross margin on the transfer price of the devices and (ii) lower product gross margins on sales of Private Label kits to Smith+Nephew resulting from transfer pricing which was partially offset by approximately 5% of gross margin attributable directly to distribution fee revenue having no associated cost.
Current report — wording carried from elsewhere
Interest income (expense), net for the six months ended June 30, 2026 primarily represents (i) $75,250 of non-cash interest expense on the secured notes payable and (ii) $213,295 of debt discount amortization considered interest expense due to our election of the fair value option while other income (expense) for the six months ended June 30, 2025 was nominal.