CONCORD, NC -- August 7, 2024 -- InvestorsHub 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
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.
Six (6) new customers signed contracts for coating evaluation
and/or coating services.
Financial Results for the Quarter Ended June 30,
2024:
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 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 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 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 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.
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