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NASDAQ:MGRM
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Monogram (NASDAQ:MGRM) reported 1st quarter 2025 financial results on May 14, 2025 which were largely in line with our expectations. Research and development expenses for the quarter were $2.26 million compared to $2.41 million in the prior year period. The R&D decrease was primarily due to the company moving into the verification and validation phase of its robot prototype. The move into the validation phase, which consisted largely of testing and documenting the system components and protocols led to decreases in prototype material and contractor services which are largely associated with the verification phase. The decrease in R&D was partially offset by a $250,000 performance-based compensation accrual during the quarter from the FDA 510(k) clearance grant for the mBôs™ TKA System.
General & administrative expenses in the quarter were $1.0 million, which was a slight decrease from $1.1 million in the prior year period. Marketing and advertising expenses were $44,000 million in the quarter compared to $120,000 in the prior year period. The decrease was largely caused by market conditions that significantly influenced the effectiveness of fundraising efforts, which impacted both the cost of investor acquisition and the overall success of a crowdfunded capital raise.
The company continues to operate a highly variable cost structure with 27 full-time employees working mostly in R&D and engineering. Other engineers are outsourced and can be used as needed on an adjustable basis.
Net loss for the 1st quarter was ($3.2) million compared to a net loss of ($3.5) million in the prior year period. EPS was a loss of ($0.10) per share compared to a loss of ($0.11) per share 1st quarter of 2024. For the 1st quarter, operating cash flow was a use of cash of ($2.3) million. We expect the monthly burn rate to be approximately $1.2-$1.3 million in 2025 which takes into account the cost of the OUS clinical trial in India.
Cash and cash equivalents totaled $13.3 million as of March 31, 2025, compared to $15.7 million at the end of 2024. Net working capital was approximately $11.3 million and total stockholders’ equity was $11.7 million.
Valuation and Estimates
Monogram has the potential to deliver strong revenue growth and positive earnings over the next 10 years after commercialization of its robotic system and customized press-fit implants. We believe the company can generate average annual revenue growth in the range of 25%-35% over the next 10 years and improve margins to industry averages over time.