Repro Med Systems Inc. (KRMD) shares surged 6.22% to trade at $4.44 in after-market on Tuesday, May 19, 2021, after KRMD’s stock lost 2.56% to close Tuesday’s normal trading session at $4.18. KRMD shares have lost 54.47% over the last 12 months, and they have moved up 16.43% in the past week. Over the past three months, the stock has declined11.06%, while over the past six months, it has added 4.50%.
Let’s see is there any reason behind its turnaround on Tuesday?
Repro Med Systems facing several lawsuits
Rosen Law Firm reminded purchasers of the securities of Repro Med Systems, Inc. between August 4, 2020, and January 25, 2021, about a class action filed by Rosen Law Firm
The lawsuits claim that the investors suffered the damage due to false and misleading statements by the company and the company was unable to disclose and provide the details such as the net sales were reasonably likely to decline.
KRMD increased the usage of allowances such as growth rebates to key customers to retain their business and improve growth starting in January 2020.
Financial result announcement
On May 13, 2021, Repro Med Systems Inc released its financial results for the first quarter ended March 31, 2021.
Q1 2021 financial highlights
- KRMD reported net sales of $5.4 million for the three months ending March 31, 2021, compared to $6.3 million in the same period of 2020.
- The gross margin was 59.5% in Q1 2021which is roughly equivalent in Q1 2020.
- Total operating expenses were $5.4 million in Q1 2021, compared to $3.2 million in Q1 2020.
- The company suffered a net loss of $1.3 million, or $0.03 per diluted share in Q1 2021, compared to a net gain of $0.4 million, or $0.01 per diluted share for the same period in 2020.
- Non-GAAP adjusted EBITDA was $0.4 million in Q1 2021, compared to $1.3 million in the first quarter of 2020.
About the company
Repro Med Systems, Inc., operating as KORU Medical Systems, is a leading developer and manufacturer of medical devices and supplies.
KORU Medical Systems is located in Chester, Orange County, NY. KORU manufactures medical devices used in emergency care, hospital settings, nursing homes, other medical facilities, and home care.
Well, we have no recent news about the company, and its turnaround on Tuesday is a bit strange. We have to wait and see how KRMD stock performs in the coming days.