Nuwellis, Inc., a medical device company specializing in ultrafiltration therapy for fluid overload, reported its financial results for the third quarter and nine months ended September 30, 2024. The company experienced a slight decline in net sales for the third quarter, totaling $2.367 million, down from $2.412 million in the same period of 2023. However, for the nine months ended September 30, 2024, net sales increased to $6.418 million, compared to $6.313 million in the prior year, driven by a 3% rise in circuit sales attributed to an increase in patients treated with the Aquadex therapy.

Gross profit for the third quarter improved to $1.656 million, up from $1.381 million in 2023, while gross profit for the nine-month period rose to $4.321 million from $3.595 million. The company successfully reduced its selling, general, and administrative expenses to $2.702 million for the third quarter, down from $3.428 million in the previous year, and for the nine months, these expenses decreased to $10.544 million from $13.582 million. This reduction in expenses contributed to a narrower loss from operations of $(1.532 million) for the third quarter, compared to $(3.164 million) in 2023, and a loss of $(8.601 million) for the nine months, down from $(14.037 million).

Nuwellis reported a net income of $2.358 million for the third quarter of 2024, a significant turnaround from a net loss of $(3.370 million) in the same quarter of 2023. However, the company recorded a net loss of $(9.697 million) for the nine months, an improvement from $(14.700 million) in the prior year. The basic net income per share for the third quarter was $1.74, compared to a loss of $(63.27) per share in 2023.

The company’s total assets decreased to $6.728 million as of September 30, 2024, from $9.770 million at the end of 2023, while total liabilities also fell to $3.549 million from $6.559 million. Nuwellis has been actively managing its cash burn rate, reducing it by approximately 40% through cost-cutting measures, including job eliminations and salary reductions for senior management.

In terms of financing, Nuwellis raised approximately $2.7 million from a public offering in April 2024 and an additional $2.0 million from a securities purchase agreement in July 2024. The company also reported a net cash provided by financing activities of $6.246 million for the nine months ended September 30, 2024, compared to $2.088 million in the same period of 2023.

Looking ahead, Nuwellis anticipates continued losses as it invests in sales, marketing, and product development, while also seeking additional capital to support its growth initiatives. The company had an accumulated deficit of $297.3 million as of September 30, 2024.