NanoVibronix, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of approximately 11% to $1,025,000, compared to $921,000 in the same period of 2024. This growth is attributed primarily to the recent merger with ENvue Medical Holdings, which contributed to the overall revenue increase. The company noted that its largest distributor, Ultra Pain Products LLC, accounted for 49% of total revenue during the quarter, up from 38% in the previous year.
Despite the revenue growth, NanoVibronix experienced a significant decline in gross profit, which fell to approximately $369,000 from $664,000 year-over-year, representing a decrease of about 44%. The gross margin percentage also dropped from 72% to 36%, largely due to reduced wholesale prices offered to key customers. Operating expenses surged, with research and development costs increasing by 338% to $530,000, driven by ongoing product development and clinical trials. Selling and marketing expenses rose by 112% to $349,000, reflecting the integration of ENvue's operations.
The company reported a net loss of $2,495,000 for the quarter, a substantial increase from a loss of $588,000 in the prior year. This increase in net loss was primarily due to higher operating expenses associated with the merger and ongoing development projects. As of March 31, 2025, NanoVibronix had a cash balance of $601,000, down from $752,000 at the end of 2024, and reported negative cash flow from operating activities of $1,343,000.
Strategically, the merger with ENvue, completed on February 14, 2025, has positioned NanoVibronix to expand its product offerings in the medical device sector, particularly in enteral feeding. The merger has resulted in the consolidation of ENvue's assets and operations, significantly impacting the company's asset base. However, the company faces challenges in maintaining compliance with Nasdaq listing requirements, having previously received notices regarding its stock price and equity levels.
Looking ahead, NanoVibronix anticipates continued losses and negative cash flows, necessitating additional capital to sustain operations. The company plans to leverage equity financing and strategic partnerships to meet its liquidity needs while navigating the complexities of the medical device market. The management has expressed concerns about its ability to continue as a going concern without securing further funding.
About NanoVibronix, Inc.
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