CONCORD, NC, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Hydromer, Inc. (OTC: HYDI) (the “Company”), a leader in hydrophilic, thromboresistant and antimicrobial coating technologies for medical devices for over 44 years, is pleased to announce certain Corporate Highlights and preliminary, unaudited management-prepared financial results for the quarter ended June 30, 2024. These results are based on the most current information available to management, are unaudited and are subject to change upon the completion of the Company’s 2024 year-end financial reporting processes, reviews and audit. Any resulting adjustments could result in changes to the numbers reported, including material changes.
Recent Corporate Highlights
- Research and Development
Twelve (12) research and development (R&D) projects signed with both large and early-stage companies. The R&D projects are primarily testing Hydromer’s coating technologies for both medical devices and industrial (anti-fog) applications.
- New Customers
Six (6) new customers signed contracts for coating evaluation and/or coating services.
Financial Results for the Quarter Ended June 30, 2024:
- Revenue
Recorded revenue of $836,000 for the three months ended June 30, 2024, a decrease of 32% compared to $1,225,000 for the same period in 2023.
- Cost of Goods Sold
Cost of Goods Sold were $129,000 for the three months ended June 30, 2024. The Company decreased cost of goods sold by 23% compared to the same period in 2023 of $168,000.
- Operating Expenses
Operating Expenses were $713,000 for the three months ended June 30, 2024. The Company decreased operating expenses by 8% compared to the same period in 2023 of $777,000.
- Net Ordinary Income
Net Ordinary Income decreased to ($6,700) for the three months ended June 30, 2024, a decrease of 102% compared to Net Ordinary Income of $281,000 for same period in 2023.
- Net Income
Net Income was $30,000 for the three months ended June 30, 2024, a decrease of 97% compared to Net Income of $1,089,000 (which includes $809,000 of PPP loan forgiveness) for same period in 2023.
Summary of Financial Results:
For Q2 2024, the company's financial performance declined compared to Q2 2023.
Total revenue, comprised of Coating services, Polymer Solutions and Royalties decreased by 32%, to $836,000, compared to $1,225,000 in the same period last year.
We believe that the decline in sales is attributed to attrition in our legacy customer base, lack of innovation, and insufficient sales prospecting efforts in the previous years. While the Company has faced a current decline in sales, it remains committed to strengthening operations and sales strategies.
With a reduction in operating expenses by 8%, to $713,000 from $777,000 in Q2 2023, the Company experienced a drop in net ordinary income, which decreased by 102% to a loss of $6,700 from a profit of $281,000 in the previous year.
Despite challenging conditions faced in Q2, the cumulative results for the first half of 2024 reflect a more balanced outlook. For the six months ended June 30, 2024, total revenue is down by 14% compared to the same period in 2023, but operating expenses have been significantly reduced, by 20%. Net ordinary income decreased by 3% compared to the first half of 2023. Net income of $379,000 in 2024 decreased by 63% compared to the first half of 2023 of $1,128,000. The decline in net income is mainly attributed to $809,000 in Paycheck Protection Program (“PPP”) loan forgiveness received during the quarter ended June 30, 2023, for funds advanced to the Company in 2020 and 2021 from U.S. Small Business Administration (“SBA”).
Summary of Corporate:
In Q2 2024, the Company successfully converted twelve (12) promising research and development projects. The Company intends on leveraging these projects to build and establish long-term partnerships to drive future growth. Underscoring this point, the Company signed supply agreements with six (6) new customers. In addition to the projects won and executed on, the Company is continuing to develop new and advanced product offerings.
The company has committed to exhibiting at both the MEDICA Germany and Medtec China trade fairs held during autumn 2024.
About Hydromer
Hydromer, Inc. is an ISO 9001:2015 global business-to-business (B2B) surface modification and coating solutions provider offering polymer R&D and manufacturing services capabilities for a wide variety of applications. We are domiciled in Concord, NC. Our customers are located across the United States, Europe and Asia-Pacific. Our facilities are U.S. Food and Drug Administration (FDA), Good Manufacturing Practice (GMP), International Organization for Standardization (ISO) 13485, and International Organization for Standardization (ISO) 9001 compliant. For over four decades, the Company has developed value-added solutions to serve businesses in domestic and international markets in a wide range of industries. We manage numerous global B2B services such as coating services, research and development, analytical testing, technology transfer, and dedicated machinery building, installation, and support. We have successfully developed numerous proprietary formulations and hold patents worldwide.
Contact:
Hydromer Inc.
Info@hydromer.com
Forward-Looking Statements
The statements contained in the above communication that are not historic facts are forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward-looking statements. For example, if our actual results differ materially from those contemplated by the forward-looking statements the trading price of our common stock could decline, and investors in our securities may lose all or part of their investment.
