0001161697-18-000406.txt : 20180806 0001161697-18-000406.hdr.sgml : 20180806 20180806163202 ACCESSION NUMBER: 0001161697-18-000406 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180806 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180806 DATE AS OF CHANGE: 20180806 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REPRO MED SYSTEMS INC CENTRAL INDEX KEY: 0000704440 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 133044880 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-12305 FILM NUMBER: 18995159 BUSINESS ADDRESS: STREET 1: 24 CARPENTER RD CITY: CHESTER STATE: NY ZIP: 10918 BUSINESS PHONE: 845-469-2042 MAIL ADDRESS: STREET 1: 24 CARPENTER RD CITY: CHESTER STATE: NY ZIP: 10918 8-K 1 form_8-k.htm FORM 8-K CURRENT REPORT FOR 08-06-2018

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)   August 6, 2018

 

REPRO MED SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

 

New York

0-12305

13-3044880

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)


24 Carpenter Road, Chester, New York

10918

(Address of principal executive offices)

(Zip Code)


Registrant’s telephone number, including area code   (845) 469-2042

 

not applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  [_]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [_]

 



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.


On August 6, 2018, Repro Med Systems, Inc. dba RMS Medical Products (“RMS”) issued a press release announcing its operating and financial results for the quarter ended June 30, 2018 and a related conference call to be held on August 7, 2018 at 9am ET.


The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.


ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.


(d) Exhibits.


Exhibit No. Description
   
99.1 Press release dated August 6, 2018



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 

REPRO MED SYSTEMS, INC.
(Registrant)

 

 

 

Date:  August 6, 2018

By:

/s/ Daniel S. Goldberger

 

Daniel S. Goldberger
Interim President and Chief Executive Officer


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EX-99 2 ex_99-1.htm PRESS RELEASE DATED 08-06-2018

Exhibit 99.1


RMS Medical Products Announces Record Quarterly Sales and Net Income


Net Sales for the quarter ended June 30, 2018 increased 17.6% over the same period last year

 

 

Net Income increased to $475,723 or 10.6% of Net Sales

 

 

Inaugural conference call August 7th at 9:00 AM ET


CHESTER, NY / August 6, 2018, Repro Med Systems, Inc. dba RMS Medical Products (OTCQX: REPR) today announced financial results for the second quarter ended June 30, 2018.


Net sales grew for the fifth consecutive quarter to $4.5 million, a 17.6% increase over the second quarter of 2017. The increase in net sales was driven by higher needle set sales, which we believe were bolstered by the FDA clearance on August 31, 2017, for the RMS “Integrated Catch-Up Freedom Syringe Driver Infusion System”. Net sales during the period included approximately $0.3 million of revenue related to one-time sales to support the clinical activities of various pharmaceutical companies.


Gross profit grew to $2.7 million, a 19.3% increase over the second quarter of 2017 and a gross margin improvement of 80 basis points. The increase in gross profit and margin is principally the result of higher net sales.


Net income for the period increased to a record $475,723, or 10.6% of net sales, which compares with $148,472 reported during the second quarter of 2017.  Higher net sales combined with improved gross profit on relatively flat operating expenses and a favorable tax rate change were principally responsible for the increase in profitability.


“Second quarter results were strong as RMS continues to grow market share within its core indications, as well as pursue new opportunities.” stated Dan Goldberger, Chairman and interim President and CEO. “As we undergo the next phase of RMS’s development, I want to assure all of our stakeholders that we will continue to pursue our mission to improve the quality of life of patients around the world through the design, development, and delivery of the highest quality innovative therapeutic solutions. Patient safety, product efficacy, respect for all of our stakeholders, customer service, and building shareholder value continue to be our highest priorities.”


On July 26, 2018, the Company announced that RMS Medical Products’ Board of Directors appointed Daniel Goldberger, Board Member, to the position of Chairman and interim President and Chief Executive Officer, replacing Andy Sealfon who will remain on the Board of Directors. Please reference the Company’s recent press release and filings for background information.


Conference Call


The Company will host a conference call to discuss the second quarter 2018 financial results and business developments on Tuesday, August 7, 2018, at 9:00 AM ET. Please refer to the information below for conference call dial-in information and webcast registration:


Conference date: August 7, 2018, 9:00 AM ET

Conference dial-in: 877-269-7756

International dial-in: 201-689-7817

Conference Call Name: RMS Medical Products (OTCQX: REPR) Second Quarter 2018 Results Call

Webcast Registration: Click Here


Following the live call, a replay will be available on the Company’s website, www.rmsmedicalproducts.com, under “Investor Relations” for a period of one year.


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About RMS Medical Products


The Company develops, manufactures and commercializes medical products used for home infusions and suctioning. The FREEDOM Syringe Infusion System currently includes the FREEDOM60® and FreedomEdge® Syringe Infusion Drivers, RMS Precision Flow Rate Tubing™ and RMS HIgH-Flo Subcutaneous Safety Needle Sets™. These devices are used for infusions administered in professional healthcare settings as well as at home. The Company’s RES-Q-VAC® line of medical suctioning products is used by emergency medical service providers in addition to a variety of other healthcare providers. For more information about RMS Medical Products, please visit www.rmsmedicalproducts.com.


Forward-Looking Statements


This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the term “believe” to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s reports and registration statements filed with the Securities and Exchange Commission.  The results of operations for the periods presented herein are not necessarily indicative of the results to be expected in the future.


 

 

 

 

 

 

 

 


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REPRO MED SYSTEMS, INC.

BALANCE SHEETS


 

 

June 30,

 

December 31,

 

 

 

2018

 

2017

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,421,186

 

$

3,974,536

 

Certificate of deposit (restricted cash)

 

 

1,504,818

 

 

 

Certificates of deposit

 

 

159,462

 

 

263,269

 

Accounts receivable less allowance for doubtful accounts of $77,067 at June 30, 2018 and $77,067 at December 31, 2017

 

 

1,840,094

 

 

1,861,949

 

Inventory  

 

 

1,718,294

 

 

1,658,681

 

Prepaid expenses

 

 

255,888

 

 

170,739

 

TOTAL CURRENT ASSETS

 

 

8,899,742

 

 

7,929,174

 

Property and equipment, net

 

 

795,484

 

 

836,283

 

Patents, net of accumulated amortization of $220,340 and $203,768 at June 30, 2018 and December 31, 2017, respectively

 

 

531,685

 

 

483,821

 

Other assets

 

 

31,582

 

 

31,582

 

TOTAL ASSETS

 

$

10,258,493

 

$

9,280,860

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

Deferred capital gain - current

 

$

15,003

 

$

22,481

 

Accounts payable

 

 

711,947

 

 

454,398

 

Accrued expenses

 

 

539,473

 

 

658,060

 

Accrued payroll and related taxes

 

 

187,307

 

 

334,903

 

Accrued tax liability

 

 

91,488

 

 

115,854

 

TOTAL CURRENT LIABILITIES

 

 

1,545,218

 

 

1,585,696

 

Deferred capital gain – long term

 

 

 

 

3,762

 

Deferred tax liability

 

 

20,733

 

 

21,675

 

TOTAL LIABILITIES

 

 

1,565,951

 

 

1,611,133

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Common stock, $0.01 par value; 75,000,000 shares authorized, 40,907,991 and 40,731,529 shares issued, 38,170,760 and 37,994,298 shares outstanding at June 30, 2018 and December 31, 2017, respectively

 

 

409,080

 

 

407,315

 

Additional paid-in capital

 

 

4,358,618

 

 

4,216,718

 

Retained earnings

 

 

4,269,048

 

 

3,389,898

 

 

 

 

9,036,746

 

 

8,013,931

 

Less: Treasury stock, 2,737,231 shares at June 30, 2018 and December 31, 2017

 

 

(344,204

)

 

(344,204

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

8,692,542

 

 

7,669,727

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

10,258,493

 

$

9,280,860

 


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REPRO MED SYSTEMS, INC.

STATEMENTS OF OPERATIONS (UNAUDITED)


 

 

For the

Three Months Ended

 

For the

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

$

4,502,326

 

$

3,829,457

 

$

8,535,550

 

$

7,467,893

 

Cost of goods sold

 

 

1,762,742

 

 

1,532,158

 

 

3,330,142

 

 

3,068,639

 

Gross Profit

 

 

2,739,584

 

 

2,297,299

 

 

5,205,408

 

 

4,399,254

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

2,022,631

 

 

2,005,336

 

 

3,902,900

 

 

3,780,445

 

Research and development

 

 

23,963

 

 

24,840

 

 

33,811

 

 

70,746

 

Depreciation and amortization

 

 

75,978

 

 

76,781

 

 

150,556

 

 

151,662

 

Total Operating Expenses

 

 

2,122,572

 

 

2,106,957

 

 

4,087,267

 

 

4,002,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Operating Profit

 

 

617,012

 

 

190,342

 

 

1,118,141

 

 

396,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Operating (Expense)/Income

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss)/Gain on currency exchange

 

 

(19,838

)

 

34,670

 

 

(10,414

)

 

51,744

 

Interest and other income

 

 

5,501

 

 

421

 

 

6,116

 

 

2,066

 

TOTAL OTHER (EXPENSE)/INCOME

 

 

(14,337

)

 

35,091

 

 

(4,298

)

 

53,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT BEFORE TAXES

 

 

602,675

 

 

225,433

 

 

1,113,843

 

 

450,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense

 

 

(126,952

)

 

(76,961

)

 

(234,693

)

 

(174,788

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

475,723

 

$

148,472

 

$

879,150

 

$

275,423

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.01

 

$

 

$

0.02

 

$

0.01

 

Diluted

 

$

0.01

 

$

 

$

0.02

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

38,100,040

 

 

37,825,209

 

 

38,058,500

 

 

37,799,981

 

Diluted

 

 

38,872,998

 

 

37,899,619

 

 

38,815,301

 

 

37,866,730

 


- 4 -



REPRO MED SYSTEMS, INC.

STATEMENTS OF CASH FLOWS

(UNAUDITED)


 

 

For the Six Months Ended

 

 

 

June 30,

 

 

 

2018

 

2017

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net Income

 

$

879,150

 

$

275,423

 

Adjustments to reconcile net income to net cash provided by/(used in) operating activities:

 

 

 

 

 

 

 

Amortization of deferred compensation cost

 

 

 

 

7,000

 

Stock based compensation expense

 

 

94,170

 

 

41,479

 

Depreciation and amortization

 

 

150,556

 

 

151,662

 

Deferred capital gain - building lease

 

 

(11,240

)

 

(11,240

)

Deferred taxes

 

 

(941

)

 

12,937

 

Provision for returns and doubtful accounts

 

 

 

 

(5,603

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Decrease/(Increase) in accounts receivable

 

 

21,855

 

 

(597,699

)

(Increase)/Decrease in inventory

 

 

(59,613

)

 

94,177

 

(Increase)/Decrease in prepaid expense and other assets

 

 

(85,149

)

 

33,174

 

Increase/(Decrease) in accounts payable

 

 

257,549

 

 

(492,919

)

(Decrease)/Increase in accrued payroll and related taxes

 

 

(147,597

)

 

71,113

 

Decrease in accrued expense

 

 

(118,587

)

 

(12,207

)

(Decrease)/Increase in accrued tax liability

 

 

(24,366

)

 

161,851

 

NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES

 

 

955,787

 

 

(270,852

)

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

Payments for capital expenditures

 

 

(93,185

)

 

(89,437

)

Purchase of certificate of deposit (restricted cash)

 

 

(1,500,000

)

 

 

Reinvested earnings on certificate of deposit (restricted cash)

 

 

(4,818

)

 

 

Payments for patents

 

 

(64,436

)

 

(53,346

)

Proceeds/(reinvested earnings) from certificates of deposit

 

 

103,807

 

 

(1,196

)

NET CASH USED IN INVESTING ACTIVITIES

 

 

(1,558,632

)

 

(143,979

)

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

Stock issuances

 

 

51,250

 

 

 

Payment for cancelled shares

 

 

(1,755

)

 

(19,360

)

Purchase of treasury stock

 

 

 

 

(484

)

NET CASH PROVIDED BY/(USED) IN FINANCING ACTIVITIES

 

 

49,495

 

 

(19,844

)

 

 

 

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(553,350

)

 

(434,675

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

3,974,536

 

 

3,417,183

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

3,421,186

 

$

2,982,508

 

 

 

 

 

 

 

 

 

Supplemental Information

 

 

 

 

 

 

 

Cash paid during the periods for:

 

 

 

 

 

 

 

Interest

 

$

 

$

 

Taxes

 

$

260,000

 

$

 

 

 

 

 

 

 

 

 

NON-CASH FINANCING AND INVESTING ACTIVITIES

 

 

 

 

 

 

 

Issuance of common stock as compensation

 

$

67,500

 

$

67,500

 


Contact

CG Capital

877.889.1972

investorrelations@cg.capital


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