Nuwellis Reports $11.2 Million Net Loss for Fiscal Year 2024, Sees Revenue Decline

Nuwellis, Inc. reported a net loss of $11.2 million for the fiscal year ending December 31, 2024, a significant improvement compared to a net loss of $20.2 million in the previous year. The company's revenue for the year was $8.7 million, slightly down by 1.4% from $8.9 million in 2023. This decline was attributed to decreased console sales and international sales, although there was a 7% increase in circuit sales. The cost of goods sold decreased by 21.1% to $3.1 million, primarily due to higher manufacturing volumes and lower fixed overhead expenses. Selling, general, and administrative expenses also saw a reduction of 21.7%, reflecting efficiency initiatives implemented in late 2023.

In terms of strategic developments, Nuwellis underwent an executive transition with the retirement of President and CEO Nestor Jaramillo, Jr. on February 23, 2025, and the appointment of John Erb as interim CEO. The company has also been active in the capital markets, raising approximately $11 million through various public offerings and warrant exercises throughout 2024. Notably, the company completed a reverse stock split of 1-for-35 in June 2024 to comply with Nasdaq listing requirements, which had previously flagged the company for not meeting minimum bid price and stockholder equity requirements.

Operationally, Nuwellis has focused on expanding its customer base, particularly in the heart failure, critical care, and pediatric markets. The Aquadex System, which is used for ultrafiltration therapy, has been adopted by over 30,000 patients since its reintroduction to the U.S. market in 2016. The company has also initiated a pilot program with DaVita Inc. to treat patients with congestive heart failure, which is expected to enhance the visibility and utilization of the Aquadex System in clinical settings.

Looking ahead, Nuwellis anticipates continued losses as it invests in expanding its sales and marketing capabilities, manufacturing, and clinical research. The company has expressed confidence in its ability to fund operations through May 2025 but acknowledges the need for additional capital to support growth initiatives. The management has identified two material weaknesses in internal controls over financial reporting, which they are actively working to remediate. The company remains focused on increasing market acceptance of the Aquadex System, which is critical for achieving profitability in the future.