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CytoSorbents Corporation’s Financial Report for Q1 2025

On May 14, 2025, CytoSorbents Corporation, listed on NASDAQ as CTSO, unveiled its financial performance for the first quarter ending March 31, 2025. As a prominent player in the management of life-threatening illnesses in intensive care settings, the company showcased both challenges and advancements in its strategic direction and financial outcomes.

Financial Highlights

The company reported product revenue of $8.7 million, reflecting a 3% decrease from $9.0 million during the same period last year. This decrease was balanced by a stable revenue when adjusted for fluctuating currency rates. Gross margins fell from 77% to 71%, which was attributed to varying operational costs amid changing market conditions. Despite these challenges, the operating loss has shown improvement, narrowing by 17% to $3.9 million, down from $4.7 million in Q1 2024, primarily due to a 12% reduction in operating expenses.

The company's net loss declined significantly to $1.5 million, or $0.02 per share, in contrast to a net loss of $6.1 million, or $0.11 per share, for the first quarter of 2024. Additionally, the adjusted net loss remained stable at $3.7 million, supporting confidence in the company’s financial trajectory. Furthermore, the adjusted EBITDA loss reduced by 17% to $2.7 million compared to the previous year’s $3.3 million loss, suggesting improving operational efficiency.

Cash Position and Shareholder Offers

As of March 31, 2025, the company’s cash, cash equivalents, and restricted cash totaled $13.1 million, a noteworthy increase from $9.8 million recorded at the end of 2024. This escalation was bolstered by $6.8 million raised through a shareholder rights offering, enabling the release of restricted cash and enhancing liquidity.

Strategic Business Developments

CytoSorbents continues to strengthen its global presence, recently launching a regional sales subsidiary in Dubai, United Arab Emirates—a strategic move aimed at expanding its market reach into the Middle East and Africa. To further enhance its operations in North America, the firm appointed Thomas Shannon as Vice President of Marketing, focussing on the marketing strategies for the DrugSorb™-ATR.

During this quarter, the key focus has been the introduction and potential regulatory approval of DrugSorb™-ATR, an investigational device designed to mitigate life-threatening bleeding in patients undergoing cardiac surgeries while on blood thinners like Brilinta®. This device has garnered FDA Breakthrough Device Designation due to its potential to significantly impact outcomes for high-risk surgical patients.

Despite hurdles posed by the FDA’s denial letter related to the De Novo Request for DrugSorb-ATR, CytoSorbents maintains optimism. Dr. Efthymios N. Deliargyris, Chief Medical Officer, expressed confidence in navigating through the appeals process to clarify outstanding issues and secure approval.

The Company’s Vision and Future

Dr. Phillip Chan, CEO of CytoSorbents, remains steadfast in repositioning the company for growth, especially in light of a temporary disruption in direct sales within Germany due to a strategic realignment of their commercial team. Emphasizing the importance of tailored engagement with clinicians, Chan posits that increasing their outreach to medical professionals will facilitate understanding and adoption of their products, ultimately leading to improved clinical outcomes and financial performance.

Overall, CytoSorbents is on a path toward revitalizing its operations through new markets and strategic product positioning, while aiming for a near breakeven performance within the current year as they advance their innovative treatment technologies.