IRADIMED CORP [IRMD] Filings

10-Q 1 irmd-20240930x10q.htm 10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2024

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No.: 001-36534

IRADIMED CORPORATION

(Exact name of Registrant as specified in its charter)


Delaware		73-1408526
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

1025 Willa Springs Drive Winter Springs, Florida		32708
(Address of principal executive offices)		(Zip Code)

(407) 677-8022

(Registrant’s telephone number, including area code)

N/A

(Former Name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol	Name of each exchange on which registered:
Common stock, par value $0.0001	IRMD	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company,” and “emerging growth company” as defined in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The registrant had 12,673,441 shares of common stock, par value $0.0001 per share, outstanding as of October 31, 2024.

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IRADIMED CORPORATION

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			Page
Cautionary Note Regarding Forward-Looking Statements			3

Part I	Financial Information		6

	Item 1	Financial Statements	6

		(a) Condensed Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 (Audited)	6

		(b) Condensed Statements of Operations for the three and nine months ended September 30, 2024 and 2023 (Unaudited)	7

		(c) Condensed Statements of Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited)	8

		(d) Condensed Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (Unaudited)	9

		(e) Notes to Unaudited Condensed Financial Statements	10

	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

	Item 3	Quantitative and Qualitative Disclosures About Market Risk	23

	Item 4	Controls and Procedures	23

Part II	Other Information		24

	Item 1	Legal Proceedings	24

	Item 1A	Risk Factors	24

	Item 2	Unregistered Sale of Equity Securities and Use of Proceeds	24

	Item 3	Default Upon Senior Securities	24

	Item 4	Mine Safety Disclosures	24

	Item 5	Other Information	24

	Item 6	Exhibits	25

Signatures			26

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CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (this “Quarterly Report”) that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this Quarterly Report the words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” and “potential,” and other similar words and expressions of the future, are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements about the Company’s future financial and operating results and the Company’s plans, objectives, and intentions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any results, performance, or achievements expressed or implied by such forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, including, but not limited to:

●

our ability to receive 510(k) clearance for our products and product candidates, complete inspections conducted by the U.S. Food & Drug Administration (“FDA”) or other regulatory bodies resulting in favorable outcomes, additional actions by or requests from the FDA, including a request to cease domestic distribution of products, or other regulatory bodies and unanticipated costs or delays associated with the resolution of these matters;

●

the timing and likelihood of regulatory approvals or clearances from the FDA or other regulatory bodies and regulatory actions on our product candidates and product marketing activities;

●

unexpected costs, expenses and diversion of management attention resulting from actions or requests posed to us by the FDA or other regulatory bodies;

●

our primary reliance on a limited number of products;

●

our ability to retain the continued service of our key professionals, including key management, marketing and scientific personnel, and to identify, hire and retain such additional qualified professionals;

●

our expectations regarding the sales and marketing of our products, product candidates and services;

●

our expectations regarding the integrity of our supply chain for our products;

●

the potential for adverse application of environmental, health and safety and other laws and regulations of any jurisdiction on our operations;

●

our expectations for market acceptance of our new products;

●

the potential for our marketed products to be withdrawn due to recalls, patient adverse events or deaths;

●

our ability to successfully prepare, file, prosecute, maintain, defend, including in cases of infringement, and enforce patent claims and other intellectual property rights on our products;

●

our ability to identify and pursue development of additional products;

●

the implementation of our business strategies;

●

the potential for exposure to product liability claims;

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●

our financial performance expectations and interpretations thereof by securities analysts and investors;

●

our ability to compete in the development and marketing of our products and product candidates with other companies in our industry;

●

difficulties or delays in the development, production, manufacturing and marketing of new or existing products and services, including difficulties or delays associated with obtaining requisite regulatory approvals or clearances associated with those activities;

●

changes in laws and regulations or in the interpretation or application of laws or regulations, as well as possible failures to comply with applicable laws or regulations as a result of possible misinterpretations or misapplications;

●

cost-containment efforts of our customers, purchasing groups, third-party payers and governmental organizations;

●

costs associated with protecting our trade secrets and enforcing our patent, copyright and trademark rights, and successful challenges to the validity of our patents, copyrights or trademarks;

●

actions of regulatory bodies and other government authorities, including the FDA and foreign counterparts, that could delay, limit or suspend product development, manufacturing or sales or result in recalls, seizures, consent decrees, injunctions and monetary sanctions;

●

costs or claims resulting from potential errors or defects in our manufacturing that may injure persons or damage property or operations, including costs from remediation efforts or recalls;

●

the results, consequences, effects or timing of any commercial disputes, patent infringement claims or other legal proceedings or any government investigations;

●

interruption in our ability to manufacture our products or an inability to obtain key components or raw materials or increased costs in such key components or raw materials;

●

uncertainties in our industry due to the effects of government-driven or mandated healthcare reform;

●

competitive pressures in the markets in which we operate;

●

potential negative impacts resulting from climate change or other environmental, social and governance and sustainability related matters;

●

the impact on our operations and financial results of any public health emergency and any related policies and actions by governments or other third parties;

●

breaches or failures of our or our vendors’ or customers’ information technology systems or products, including by cyber-attack, data leakage, unauthorized access or theft;

●

the loss of, or default by, one or more key customers or suppliers;

●

unfavorable changes to the terms of key customer or supplier relationships;

●

weakening of economic conditions, or the anticipation thereof, that could adversely affect the level of demand for our products;

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●

geopolitical risks, including from international conflicts and upcoming elections in the United States and other countries, which could, among other things, lead to increased market volatility; and

●

other risks detailed in our filings with the United States Securities and Exchange Commission (the “SEC”).

These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should, therefore, be considered in light of various factors, including those set forth under “Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report, and under “Part I, Item 1A. Risk Factors” and “Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report”) and those set forth from time to time in our other filings with the SEC. These documents are available through our website or through the SEC's Electronic Data Gathering and Analysis Retrieval system at http://www.sec.gov. In light of such risks and uncertainties, we caution you not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date of this Quarterly Report, or if earlier, as of the date they were made. We do not intend to, and disclaim any obligation to, update or revise any forward-looking statements unless required by securities law.

Unless expressly indicated or the context requires otherwise, references in this Quarterly Report to “IRADIMED,” the “Company,” “we,” “our,” and “us” refer to IRADIMED CORPORATION.

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PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

IRADIMED CORPORATION

CONDENSED BALANCE SHEETS


	September 30,		December 31,
	2024		2023
	(unaudited)		(audited)
ASSETS
Current assets:
Cash and cash equivalents	$	51,721,051	$	49,762,198
Accounts receivable, net of allowance for credit losses of $277,437 as of September 30, 2024, and $368,835 as of December 31, 2023		10,364,786		12,224,273
Inventory, net		11,251,549		12,821,194
Prepaid expenses and other current assets		948,841		1,193,447
Total current assets		74,286,227		76,001,112
Property and equipment, net		14,155,985		9,288,625
Intangible assets, net		2,891,657		2,519,053
Operating lease right-of-use asset		264,075		2,043,043
Deferred tax asset, net		2,464,604		2,122,816
Other assets		184,213		181,449
Total assets	$	94,246,761	$	92,156,098
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,400,544	$	1,857,091
Accrued payroll and benefits		3,284,226		2,775,103
Other accrued taxes		193,688		103,241
Warranty reserve		118,203		117,463
Deferred revenue		2,555,105		2,570,407
Dividend payable		—		7,975,997
Current portion of operating lease liabilities		261,244		427,963
Other current liabilities		250,000		250,000
Accrued income taxes		—		250,041
Total current liabilities		8,063,010		16,327,306
Deferred revenue, non-current		2,748,295		2,793,548
Operating lease liabilities, non-current		2,831		1,615,080
Total liabilities		10,814,136		20,735,934
Stockholders’ equity:
Common stock; $0.0001 par value per share; 31,500,000 shares authorized; 12,669,912 shares issued and outstanding as of September 30, 2024, and 12,660,313 shares issued and outstanding as of December 31, 2023		1,267		1,265
Additional paid-in capital		29,886,087		28,160,745
Retained earnings		53,545,271		43,258,154
Total stockholders' equity		83,432,625		71,420,164
Total liabilities and stockholders’ equity	$	94,246,761	$	92,156,098

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Revenue	$	18,325,959	$	16,504,640	$	53,852,954	$	48,110,120
Cost of revenue		4,134,253		3,667,256		12,263,932		11,364,791
Gross profit		14,191,706		12,837,384		41,589,022		36,745,329
Operating expenses:
General and administrative		3,967,799		3,615,020		12,063,971		10,848,611
Sales and marketing		3,795,320		2,864,469		11,098,945		8,812,872
Research and development		639,467		452,555		2,261,596		2,208,221
Total operating expenses		8,402,586		6,932,044		25,424,512		21,869,704
Income from operations		5,789,120		5,905,340		16,164,510		14,875,625
Other income, net		629,201		503,192		1,766,572		1,180,988
Income before provision for income taxes		6,418,321		6,408,532		17,931,082		16,056,613
Provision for income tax expense		1,368,830		1,341,352		3,843,834		3,403,523
Net income	$	5,049,491	$	5,067,180	$	14,087,248	$	12,653,090
Net income per share:
Basic	$	0.40	$	0.40	$	1.11	$	1.00
Diluted	$	0.40	$	0.40	$	1.10	$	0.99
Weighted average shares outstanding:
Basic		12,669,741		12,602,581		12,665,743		12,597,250
Diluted		12,778,446		12,735,837		12,762,346		12,716,988

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)



				Additional
	Common Stock			Paid-in		Retained		Stockholders’
	Shares	Amount		Capital		Earnings		Equity
Balances, December 31, 2023	12,660,313	$	1,265	$	28,160,745	$	43,258,154	$	71,420,164
Net income	—		—		—		4,136,533		4,136,533
Stock-based compensation expense	—		—		628,640		—		628,640
Net share settlement of restricted stock units	3,872		1		(63,876)		—		(63,875)
Balances, March 31, 2024	12,664,185	$	1,266	$	28,725,509	$	47,394,687	$	76,121,462

Net income	—		—		—		4,901,224		4,901,224
Dividends paid $0.15 per share	—		—		—		(1,899,644)		(1,899,644)
Stock-based compensation expense	—		—		609,096		—		609,096
Net share settlement of restricted stock units	4,581		1		(63,946)		—		(63,945)
Exercise of stock options	335		—		3,296		—		3,296
Balances, June 30, 2024	12,669,101	$	1,267	$	29,273,955	$	50,396,267	$	79,671,489

Net income	—		—		—		5,049,491		5,049,491
Dividends paid $0.15 per share	—		—		—		(1,900,487)		(1,900,487)
Stock-based compensation expense	—		—		629,965		—		629,965
Net share settlement of restricted stock units	811		—		(17,833)		—		(17,833)
Balances, September 30, 2024	12,669,912	$	1,267	$	29,886,087	$	53,545,271	$	83,432,625



				Additional
	Common Stock			Paid-in		Retained		Stockholders’
	Shares	Amount		Capital		Earnings		Equity
Balances, December 31, 2022	12,591,004	$	1,259	$	26,407,446	$	47,264,282	$	73,672,987
Net income	—		—		—		3,406,070		3,406,070
Dividends paid $1.05 per share	—		—		—		(13,222,907)		(13,222,907)
Stock-based compensation expense	—		—		533,643		—		533,643
Net share settlement of restricted stock units	3,572		—		(49,878)		—		(49,878)
Balances, March 31, 2023	12,594,576	$	1,259	$	26,891,211	$	37,447,445	$	64,339,915

Net income	—		—		—		4,179,840		4,179,840
Stock-based compensation expense	—		—		568,453		—		568,453
Net share settlement of restricted stock units	5,965		1		(97,106)		—		(97,105)
Exercise of stock options	1,000		—		7,339		—		7,339
Balances, June 30, 2023	12,601,541	$	1,260	$	27,369,898	$	41,627,285	$	68,998,442

Net income	—		—		—		5,067,180		5,067,180
Stock-based compensation expense	—		—		533,749		—		533,749
Net share settlement of restricted stock units	1,310		—		(31,372)		—		(31,372)
Balances, September 30, 2023	12,602,851	$	1,260	$	27,872,275	$	46,694,465	$	74,568,000

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended
	September 30,
	2024		2023
Operating activities:
Net income	$	14,087,248	$	12,653,090
Adjustments to reconcile net income to net cash provided by operating activities:
Allowance for credit losses		(91,398)		136,830
Provision for excess and obsolete inventory		202,140		219,928
Depreciation & amortization		622,790		559,805
Loss on disposal of property and equipment		3,872		12,535
Stock-based compensation		1,867,701		1,635,845
Deferred income taxes, net		(591,829)		(1,102,866)
Changes in operating assets and liabilities:
Accounts receivable		1,950,885		343,054
Inventory		1,278,208		(6,130,592)
Prepaid expenses and other current assets		244,606		(40,055)
Other assets		(2,764)		418,274
Accounts payable		(473,820)		519,648
Accrued payroll and benefits		509,123		(581,699)
Other accrued taxes		90,447		(18,696)
Warranty reserve		740		16,274
Deferred revenue		(60,555)		407,064
Other current liabilities		—		250,000
Prepaid income taxes		—		254,093
Net cash provided by operating activities		19,637,394		9,552,532
Investing activities:
Purchases of property and equipment		(5,214,859)		(6,908,607)
Capitalized intangible assets		(545,198)		(465,744)
Net cash used in investing activities		(5,760,057)		(7,374,351)
Financing activities:
Dividends paid		(11,776,128)		(13,222,907)
Proceeds from exercises of stock options		3,296		7,341
Taxes paid related to the net share settlement of equity awards		(145,652)		(178,355)
Net cash used in financing activities		(11,918,484)		(13,393,921)
Net increase/decrease in cash and cash equivalents		1,958,853		(11,215,740)
Cash and cash equivalents, beginning of period		49,762,198		57,960,864
Cash and cash equivalents, end of period	$	51,721,051	$	46,745,124
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	4,456,827	$	4,136,152
ROU asset recognized in exchange for new lease obligation	$	—	$	227,983
ROU asset and liability adjustment	$	1,486,093	$	—
Operating and short-term lease payments recorded within cash flow provided by operating activities	$	612,910	$	492,528

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

Notes to Unaudited Condensed Financial Statements

1 — Basis of Presentation

The accompanying interim condensed financial statements of IRADIMED CORPORATION (“IRADIMED”, the “Company,” “we,” “our” and “us”) have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The interim financial information is unaudited, but reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, and other interim periods, or future years or periods.

The accompanying interim condensed financial statements should be read in conjunction with the financial statements and related footnotes to financial statements included in our 2023 Annual Report. The accounting policies followed in the preparation of these interim condensed financial statements, except as described in Note 1 herein, are consistent in all material respects with those described in Note 1 to the Financial Statements in the 2023 Annual Report.

We operate in one reportable segment, which is the development, manufacture and sale of Magnetic Resonance Imaging (“MRI”) compatible medical devices, related accessories, disposables and service for use primarily by hospitals and acute care facilities during MRI procedures.

Certain Significant Risks and Uncertainties

We market our products to end users in the United States and to third-party distributors internationally. Sales to end users in the United States are generally made on open credit terms. Management maintains an allowance for potential credit losses.

We have deposited our cash and cash equivalents with various financial institutions. Our cash and cash equivalents balances exceed federally insured limits regularly throughout the year. We have not incurred any losses related to these balances.

Our medical devices require clearance from the FDA and international regulatory agencies prior to commercialized sales. Our future products may not receive required approvals. If we were denied such approvals, or if such approvals were revoked or delayed or if we were unable to timely renew certain approvals for existing products, it would have a materially adverse impact on our business, results of operations and financial condition.

Certain key components of our products essential to their functionality are sole-sourced. Any disruption in the availability of these components would have a materially adverse impact on our business, results of operations and financial condition.

2 — Revenue Recognition

Disaggregation of Revenue

We disaggregate revenue from contracts with customers by geographic region and revenue type as we believe it best depicts the nature, amount, timing and uncertainty of our revenue and cash flow.

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Revenue information by geographic region is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

	(unaudited)				(unaudited)
United States	$	15,207,195	$	13,948,368	$	44,101,367	$	38,876,418
International		3,118,764		2,556,272		9,751,587		9,233,702
Total revenue	$	18,325,959	$	16,504,640	$	53,852,954	$	48,110,120

Revenue information by type is as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

	(unaudited)				(unaudited)
Devices:
MRI Compatible Intravenous ("IV") Infusion Pump Systems	$	6,952,142	$	3,905,520	$	19,026,021	$	13,966,905
MRI Compatible Patient Vital Signs Monitoring Systems		5,926,028		7,738,549		17,837,910		18,564,085
Ferro Magnetic Detection Systems		128,505		138,760		744,607		619,539
Total Devices revenue		13,006,675		11,782,829		37,608,538		33,150,529
Disposables, services and other		4,735,066		4,213,666		14,604,879		13,464,278
Amortization of extended warranty agreements		584,218		508,145		1,639,537		1,495,313
Total revenue	$	18,325,959	$	16,504,640	$	53,852,954	$	48,110,120

Contract Liabilities

Our contract liabilities consist of:


	September 30,		December 31,
	2024		2023
	(unaudited)		(audited)
Advance payments from customers	$	216,097	$	508,956
Shipments in-transit		166,700		15,438
Extended warranty agreements		4,920,603		4,835,966
Total	$	5,303,400	$	5,360,360

Changes in the contract liabilities during the periods presented are as follows:


	Deferred
	Revenue
	(unaudited)
Contract liabilities, December 31, 2023	$	5,360,360
Increases due to cash received from customers		3,353,763
Decreases due to recognition of revenue		(3,410,723)
Contract liabilities, September 30, 2024	$	5,303,400


	Deferred
	Revenue
	(unaudited)
Contract liabilities, December 31, 2022	$	4,748,319
Increases due to cash received from customers		3,716,326
Decreases due to recognition of revenue		(3,309,262)
Contract liabilities, September 30, 2023	$	5,155,383

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Capitalized Contract Costs

Our capitalized contract costs totaled $164,898 and $162,134 as of September 30, 2024 and December 31, 2023, respectively, and are classified as other assets on the unaudited condensed balance sheets.

3 — Basic and Diluted Net Income per Share

Basic net income per share is based upon the weighted-average number of shares of Company common stock, par value $0.0001 per share (“common stock”), outstanding during the period. Diluted net income per share of common stock reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Stock options, restricted stock units and performance-based restricted stock units granted by us represent the only dilutive effect reflected in diluted weighted-average shares of common stock outstanding.

The following table presents the computation of basic and diluted net income per share of common stock:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

	(unaudited)				(unaudited)
Net income	$	5,049,491	$	5,067,180	$	14,087,248	$	12,653,090
Weighted-average shares outstanding — Basic		12,669,741		12,602,581		12,665,743		12,597,250
Effect of dilutive securities:
Stock options		2,104		18,727		2,223		18,860
Restricted stock units		63,929		73,478		55,870		63,300
Performance-based restricted stock units		42,672		41,051		38,510		37,578
Weighted-average shares outstanding — Diluted		12,778,446		12,735,837		12,762,346		12,716,988
Basic net income per share	$	0.40	$	0.40	$	1.11	$	1.00
Diluted net income per share	$	0.40	$	0.40	$	1.10	$	0.99

Stock options and restricted stock units excluded from the calculation of diluted net income per share because the effect would have been anti-dilutive are as follows:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2024	2023	2024	2023

	(unaudited)		(unaudited)
Anti-dilutive stock options and restricted stock units	7	438	13	352

4 — Inventory, net

Inventory consists of:


	September 30,		December 31,
	2024		2023
	(unaudited)		(audited)
Raw materials	$	9,700,270	$	10,833,004
Work in process		703,363		501,191
Finished goods		1,470,786		1,907,729
Inventory before allowance for excess and obsolete		11,874,419		13,241,924
Allowance for excess and obsolete		(622,870)		(420,730)
Total	$	11,251,549	$	12,821,194

Table of Contents

5 — Property and Equipment, net

Property and equipment consist of:


	September 30,		December 31,
	2024		2023
	(unaudited)		(audited)
Land	$	6,253,790	$	6,253,790
Computer software and hardware		1,516,280		1,380,289
Furniture and fixtures		1,842,773		1,757,129
Leasehold improvements		270,486		270,486
Machinery and equipment		2,624,609		2,438,922
Construction in-process		6,108,204		1,257,844
		18,616,142		13,358,460
Accumulated depreciation		(4,460,157)		(4,069,835)
Total	$	14,155,985	$	9,288,625

Depreciation expense of property and equipment was $139,840 and $164,595 for the three months ended September 30, 2024 and 2023, respectively, and $450,194 and $484,094 for the nine months ended September 30, 2024 and 2023, respectively.

Property and equipment, net, information by geographic region is as follows:


	September 30,		December 31,
	2024		2023
	(unaudited)		(audited)
United States	$	13,746,389	$	8,950,580
International		409,596		338,045
Total property and equipment, net	$	14,155,985	$	9,288,625

Long-lived assets held outside of the United States consist principally of tooling and machinery and equipment, which are components of property and equipment, net.

6 — Intangible Assets, net

The following table summarizes the components of intangible asset balances:


	September 30,		December 31,
	2024		2023
	(unaudited)		(audited)
Patents — in use	$	321,874	$	321,874
Patents — fully amortized		70,164		70,164
Patents — in process		162,233		128,221
Internally developed software — in use		1,840,521		1,773,720
Internally developed software — in process		1,583,423		1,149,409
Trademarks		38,067		27,697
		4,016,282		3,471,085
Accumulated amortization		(1,124,625)		(952,032)
Total	$	2,891,657	$	2,519,053

Amortization expense of intangible assets was $57,731 and $25,236 for the three months ended September 30, 2024 and 2023, respectively, and $172,596 and $75,708 for the nine months ended September 30, 2024 and 2023, respectively.

Table of Contents

Expected annual amortization expense for the remaining portion of 2024 and the next five years related to intangible assets, excluding trademarks considered to have indefinite lives and in process intangible assets, is as follows:


Three months remaining ending December 31, 2024	$	59,518
2025	$	235,703
2026	$	223,987
2027	$	150,274
2028	$	147,672
Thereafter	$	290,780

7 — Fair Value Measurements

The fair values of cash equivalents, accounts receivables net, and accounts payable approximate their carrying amounts due to their short duration.

As of September 30, 2024, we did not have any assets or liabilities subject to recurring fair value measurements.

8 — Stock-Based Compensation

Stock-based compensation was recognized as follows in the unaudited Condensed Statements of Operations:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

	(unaudited)				(unaudited)
Cost of revenue	$	62,359	$	63,119	$	178,713	$	187,292
General and administrative		381,339		290,370		1,139,316		871,100
Sales and marketing		135,358		129,340		393,649		435,707
Research and development		50,908		50,919		156,023		141,746
Total	$	629,964	$	533,748	$	1,867,701	$	1,635,845

As of September 30, 2024, we had (i) $2,875,176 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.14 years and (ii) $866,155 of unrecognized compensation cost related to unvested performance-based restricted stock units, which is expected to be recognized over a weighted-average period of 1.82 years.

The following table presents a summary of our equity award activity for the nine months ended September 30, 2024 (shares):

IRADIMED CORP [IRMD] Filings
10-Q	[2024-10]
10-Q	[2024-08]
10-Q	[2024-05-02]
10-K	[2024-03-01]
10-Q	[2023-11-03]
10-Q	[2023-08-03]
10-Q	[2023-05-04]
10-K	[2023-03-02]
10-Q	[2022-11-03]
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-03-04]
10-Q	[2021-11-05]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-03-05]
10-Q	[2020-11-06]
10-Q	[2020-08-06]
10-Q	[2020-05-07]
10-K	[2020-03-06]
10-Q	[2019-11-07]
10-Q	[2019-08-07]
10-Q	[2019-05-08]
10-K	[2019-03-07]
10-Q	[2018-11-07]
10-Q	[2018-08-08]
10-Q	[2018-05-08]
10-K	[2018-03-08]
10-Q	[2017-11-06]
10-Q	[2017-08-04]
10-Q	[2017-05-05]
10-K	[2017-03-10]
10-Q	[2016-11-04]
10-Q	[2016-08-05]
10-Q	[2016-05-06]
10-K	[2016-03-10]
10-Q	[2015-11-10]
10-Q	[2015-08-11]
10-Q	[2015-05-11]
10-K	[2015-03-23]
10-Q	[2014-11-13]
10-Q	[2014-08-14]
S-1	[2014-06-18]