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United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

__________________________________________________

(Mark One)


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

For the quarterly period ended September 30, 2025


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

For the transition period from to

Commission File Number: 000-23661

ROCKWELL MEDICAL, INC.

(Exact name of registrant as specified in its charter)


Delaware									38-3317208
(State or other jurisdiction of incorporation or organization)									(I.R.S. Employer Identification No.)
30142 S. Wixom Road, Wixom, Michigan									48393
(Address of principal executive offices)									(Zip Code)

(248) 960-9009

(Registrant’s telephone number, including area code)

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

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, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” 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

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

RMTI

Nasdaq Capital Market

The number of shares of common stock outstanding as of November 7, 2025 was 39,405,302.

Rockwell Medical, Inc. and Subsidiaries

Index to Form 10-Q


			Page
Part I — Financial Information (unaudited)

Item 1 - Unaudited Financial Statements

Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024			3

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024			5

Condensed Consolidated Statements of Comprehensive (Loss ) Income for the Three and Nine Months Ended September 30, 2025 and 2024			6

Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended September 30, 2025 and 2024			7

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024			8

Notes to Condensed Consolidated Financial Statements			9

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

Item 3 - Quantitative and Qualitative Disclosures about Market Risk			18

Item 4 - Controls and Procedures			19

Part II — Other Information

Item 1 - Legal Proceedings			19

Item 1A - Risk Factors			19

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds			19

Item 3 - Defaults Upon Senior Securities			19

Item 4 - Mine Safety Disclosures			19

Item 5 - Other Information			20

Item 6 - Exhibits			20

Signatures			21

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)


	September 30, 2025		December 31, 2024
ASSETS
Cash and Cash Equivalents	$	13,610	$	15,662
Investments Available-for-Sale	10,097		5,940
Accounts Receivable, net	8,328		8,291

Inventory, net	3,964		5,778
Prepaid and Other Current Assets	1,515		1,359
Total Current Assets	37,514		37,030

Property and Equipment, net	4,952		5,785
Inventory, Non-Current	—		178
Right of Use Assets - Operating, net	2,991		3,215
Right of Use Assets - Finance, net	753		1,344
Intangible Assets, net	9,794		10,207
Goodwill	921		921
Other Non-Current Assets	561		528
Total Assets	$	57,486	$	59,208
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts Payable	$	1,523	$	2,869
Accrued Liabilities	3,865		6,275
Deferred Consideration - Current	1,750		2,371
Lease Liabilities - Operating - Current	1,318		1,566
Lease Liabilities - Finance - Current	461		599
Deferred License Revenue - Current	—		46

Insurance Financing Note Payable	462		268
Customer Deposits	203		97

Total Current Liabilities	9,582		14,091

Lease Liabilities - Operating - Long-Term	1,724		1,699
Lease Liabilities - Financing - Long-Term	423		931
Term Loan - Long-Term, net of Issuance Costs	8,737		8,472
Deferred License Revenue - Long-Term	—		429
Deferred Consideration - Long-Term	—		1,000

Total Liabilities	20,466		26,622

Commitments and Contingencies (see Note 13)


	September 30, 2025		December 31, 2024
Stockholders' Equity:
Preferred Stock, $0.0001 par value, 2,000,000 shares authorized; 15,000 shares issued and outstanding at September 30, 2025 and December 31, 2024	—		—
Common Stock, $0.0001 par value; 170,000,000 shares authorized; 39,405,301 and 34,056,920 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively	4		3
Additional Paid-in Capital	439,381		430,207
Accumulated Deficit	(402,438)		(397,678)
Accumulated Other Comprehensive Income	73		54
Total Stockholders’ Equity	37,020		32,586
Total Liabilities and Stockholders’ Equity	$	57,486	$	59,208

The accompanying notes are an integral part of the condensed consolidated financial statements.

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024

Net Sales	$	15,927	$	28,316	$	50,912	$	76,824
Cost of Sales	13,655		22,077		43,095		62,971
Gross Profit	2,272		6,239		7,817		13,853
Research and Product Development	—		—		—		18
Selling and Marketing	531		726		1,814		1,906
General and Administrative	3,325		3,577		10,296		10,802
Operating (Loss) Income	(1,584)		1,936		(4,293)		1,127

Other Income (Expense):
Realized Gain on Available-for-Sale Investments	61		—		181		51
Interest Expense	(285)		(302)		(838)		(965)
Interest Income	55		30		190		63
Total Other Expense, net	(169)		(272)		(467)		(851)

Net (Loss) Income	$	(1,753)	$	1,664	$	(4,760)	$	276

Basic Net (Loss) Income per Share	$	(0.05)	$	0.05	$	(0.14)	$	0.01
Diluted Net (Loss) Income per Share	$	(0.05)	$	0.04	$	(0.14)	$	0.01
Basic Weighted Average Shares Outstanding	36,024,940		31,551,805		34,817,973		30,447,588
Diluted Weighted Average Shares Outstanding	36,024,940		32,420,168		34,817,973		31,013,464

The accompanying notes are an integral part of the condensed consolidated financial statements.

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(In thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024

Net (Loss) Income	$	(1,753)	$	1,664	$	(4,760)	$	276
Reclassification of Realized Gain on Available-for-Sale Investments Included in Net (Loss) Income	(61)		—		(181)		(25)
Unrealized Gain on Available-for-Sale Investments	77		13		200		38
Foreign Currency Translation Adjustments	—		—		—		(4)
Comprehensive (Loss) Income	$	(1,737)	$	1,677	$	(4,741)	$	285

The accompanying notes are an integral part of the condensed consolidated financial statements.

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(In thousands, except share amounts)


	PREFERRED STOCK			COMMON STOCK			ADDITIONAL PAID-IN CAPITAL		ACCUMULATED DEFICIT		ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)		TOTAL STOCKHOLDERS' EQUITY
	SHARES	AMOUNT		SHARES	AMOUNT
Balance as of January 1, 2025	15,000	$	—	34,056,920	$	3	$	430,207	$	(397,678)	$	54	$	32,586
Net Loss	—	—		—	—		—		(1,515)		—		(1,515)
Reclassification of Realized Gain on Available-for-Sale Investments	—	—		—	—		—		—		(56)		(56)
Unrealized Gain on Available-for-Sale Investments	—	—		—	—		—		—		62		62
Vesting of Restricted Stock Units Issued, net of Taxes Withheld and Cancellations	—	—		200,983	—		—		—		—		—
Stock-based Compensation	—	—		—	—		445		—		—		445
Balance as of March 31, 2025	15,000	—		34,257,903	3		430,652		(399,193)		60		31,522
Net Loss	—	—		—	—		—		(1,492)		—		(1,492)
Reclassification of Realized Gain on Available-for-Sale Investments	—	—		—	—		—		—		(64)		(64)
Unrealized Gain on Available-for-Sale Investments	—	—		—	—		—		—		61		61
Vesting of Restricted Stock Units Issued, net of taxes withheld	—	—		172,449	—		—		—		—		—
Stock-based Compensation	—	—		—	—		382		—		—		382
Balance as of June 30, 2025	15,000	—		34,430,352	3		431,034		(400,685)		57		30,409
Net Loss	—	—		—	—		—		(1,753)		—		(1,753)
Reclassification of Realized Gain on Available-for-Sale Investments	—	—		—	—		—		—		(61)		(61)
Unrealized Gain on Available-for-Sale Investments	—	—		—	—		—		—		77		77
Issuance of Common Stock, net of offering costs/At-the-Market Offering	—	—		4,964,636	1		7,799		—		—		7,800
Issuance of Common Stock upon Exercise of Options	—	—		10,313	—		16		—		—		16

Stock-based Compensation	—	—		—	—		532		—		—		532
Balance as of September 30, 2025	15,000	$	—	39,405,301	$	4	$	439,381	$	(402,438)	$	73	$	37,020

The accompanying notes are an integral part of the condensed consolidated financial statements.

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(In thousands, except share amounts)


	PREFERRED STOCK			COMMON STOCK			ADDITIONAL PAID-IN CAPITAL		ACCUMULATED DEFICIT		ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME		TOTAL STOCKHOLDERS' EQUITY
	SHARES	AMOUNT		SHARES	AMOUNT
Balance as of January 1, 2024	15,000	$	—	29,130,607	$	3	$	418,487	$	(397,198)	$	(1)	$	21,291
Net Loss	—	—		—	—		—		(1,731)		—		(1,731)
Unrealized Gain on Available-for-Sale Investments	—	—		—	—		—		—		25		25
Issuance of Common Stock, net of Offering Costs/At-The-Market	—	—		358,210	—		560		—		—		560
Vesting of Restricted Stock Units Issued, net of Taxes Withheld	—	—		67,657	—		—		—		—		—
Issuance of Warrant in connection with the Third Amendment (Note 11)	—	—		—	—		247		—		—		247
Stock-based Compensation	—	—		—	—		251		—		—		251
Balance as of March 31, 2024	15,000	—		29,556,474	3		419,545		(398,929)		24		20,643
Net Income	—	—		—	—		—		343		—		343
Reclassification of Realized Gains on Available-for-Sale Debt Instrument Investments Included in Net Income	—	—		—	—		—		—		(25)		(25)
Foreign Currency Translation Adjustments	—	—		—	—		—		—		(4)		(4)
Issuance of Common Stock, net of Offering Costs/At-the-Market Offering	—	—		1,350,169	—		2,203		—		—		2,203
Vesting of Restricted Stock Units Issued, net of Taxes Withheld	—	—		123575	—		—		—		—		—
Stock-based Compensation	—	—		—	—		338		—		—		338
Balance as of June 30, 2024	15,000	—		31,030,218	3		422,086		(398,586)		(5)		23,498
Net Income	—	—		—	—		—		1,664		—		1,664
Unrealized Gain on Available-for-Sale Investments	—	—		—	—		—		—		13		13
Issuance of Common Stock, net of offering costs/At-the-Market Offering	—	—		1,282,546	—		3,630		—		—		3,630
Issuance of Common Stock upon Exercise of Options	—	—		6,042	—		9		—		—		9
Stock-based Compensation	—	—		—	—		321		—		—		321
Balance as of September 30, 2024	15,000	$	—	32,318,806	$	3	$	426,046	$	(396,922)	$	8	$	29,135

The accompanying notes are an integral part of the condensed consolidated financial statements.

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


	Nine Months Ended September 30,
	2025		2024
Cash Flows From Operating Activities:
Net (Loss) Income	$	(4,760)	$	276
Adjustments To Reconcile Net Loss To Net Cash Used In Operating Activities:
Depreciation and Amortization	1,646		1,637
Stock-based Compensation	1,359		910
Write-off of Inventory	178		—
Change in Inventory Reserves	(61)		314
Non-cash Lease Expense from Right of Use Assets	1,616		1,446
Amortization of Debt Financing Costs and Accretion of Debt Discount and Premium	265		337
Loss on Disposal of Assets	56		—
Realized Gain on Sale of Investments	(181)		(51)
Gain on ROU early terminations	(24)		—
Changes in Operating Assets and Liabilities:
Accounts Receivable	(37)		2,024

Inventory	1,875		(331)
Prepaid and Other Assets	470		541
Accounts Payable	(1,344)		(1,909)
Lease Liabilities	(1,229)		(1,072)
Accrued and Other Liabilities	(2,304)		(751)
Deferred License Revenue	(475)		(34)
Net Cash (Used In) Provided By Operating Activities	(2,950)		3,337
Cash Flows From Investing Activities:
Purchases of Investments Available-for-Sale	(12,957)		(5,921)
Proceeds from sales of Investments Available-for-Sale	9,000		2,003
Purchases of Equipment	(456)		(616)
Net Cash Used In Investing Activities	(4,413)		(4,534)
Cash Flows From Financing Activities:



Payments on Insurance Financing Note Payable	(466)		(445)
Payments on Financing Lease Liabilities	(418)		(416)
Proceeds from Issuance of Common Stock	7,816		6,393

Deferred Consideration Paid in Connection with Evoqua Asset Acquisition	(1,621)		(976)


Net Cash Provided By Financing Activities	5,311		4,556

Effect of Exchange Rate Changes on Cash and Cash Equivalents	—		(4)

Net (Decrease) Increase in Cash and Cash Equivalents	(2,052)		3,355
Cash and Cash Equivalents at Beginning of Period	15,662		8,983
Cash and Cash Equivalents at End of Period	$	13,610	$	12,338

Supplemental Disclosure of Cash Flow Information:
Cash Paid for Interest	$	575	$	645

Supplemental Disclosure of Non-cash Investing and Financing Activities:
Issuance of Warrant in Connection with the Third Amendment as Debt Issuance Costs	$	—	$	247
Right of Use Assets - Operating Obtained in Exchange for Lease Liabilities - Operating	$	1,006	$	1,984
De-recognition of Lease Liability - Finance and ROU Asset - Finance upon early termination	$	228	$	—
Change in Unrealized Gain on Investments Available-for-Sale	$	19	$	13
Increase in Prepaid Assets from Insurance Financing Note Payable	$	660	$	670
Proceeds from Issuance of Common Stock Upon Exercise of Options in Accounts Receivable, net	$	—	$	9

The accompanying notes are an integral part of the condensed consolidated financial statements.

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Description of Business

Rockwell Medical, Inc. (the "Company," "Rockwell," or "Rockwell Medical") is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers worldwide.

Rockwell is a supplier of liquid and dry, acid and bicarbonate concentrates for dialysis patients in the United States. Hemodialysis is the most common form of end-stage kidney disease treatment and is usually performed in freestanding outpatient dialysis centers, hospital-based outpatient centers, skilled nursing facilities, or a patient’s home.

Rockwell manufactures hemodialysis concentrates under current Good Manufacturing Practices ("cGMP") regulations at its facilities in Michigan and Texas, and manufactures dry acid concentrate mixers at its facility in Iowa. The Company previously operated a manufacturing facility in South Carolina, but the Company concluded manufacturing at that manufacturing facility in the third quarter of 2025 as part of its ongoing efforts to streamline operations and improve efficiency.

Rockwell was incorporated in the state of Michigan in 1996 and re-domiciled to the state of Delaware in 2019. Rockwell's headquarters is located at 30142 Wixom Road, Wixom, Michigan 48393.

2. Liquidity and Capital Resources

As of September 30, 2025, Rockwell had approximately $23.7 million of cash, cash equivalents and investments available-for-sale, and net working capital of $27.9 million. Net cash used in operating activities for the nine months ended September 30, 2025 was approximately $3.0 million. Based on the currently available net working capital along with the expectation of management of its ability to execute on its operational plans as discussed below, management believes the Company currently has sufficient funds to meet its operating requirements for at least the next twelve months from the date of the filing of this report.

The Company continues to review its operational plans and execute on the acquisition of new customers, and has implemented cost containment activities. The Company may require additional capital to sustain its operations and make the investments it needs to execute its strategic plan. In addition, the Company's plans include raising capital, if needed, by using the $13.1 million available under its at-the-market ("ATM") facility or other methods or forms of financings, subject to existing limitations. If the Company attempts to obtain additional debt or equity financing, the Company cannot assume such financing will be available on favorable terms, if at all.

The Company is subject to certain covenants and cure provisions under its Loan Agreement (as defined below in Note 15) with Innovatus Life Sciences Lending Fund I, LP ("Innovatus"), which was amended on January 2, 2024 to include, among other things, an interest-only period for 30 months, or up to 36 months if certain conditions are met, and to extend the maturity date to January 1, 2029 (See Note 15 for further detail). The Company has satisfied those conditions and will make interest-only payments for the full 36 months. As of September 30, 2025, the Company was in compliance with all covenants.

In addition, the global macroeconomic environment is uncertain, and could be negatively affected by, among other things, changes in U.S. trade policies, including tariffs and other trade restrictions or the threat of such actions, instability in the global capital and credit markets, recent bank failures in the United States, supply chain weaknesses, and instability in the geopolitical environment, including as a result of the Russian invasion of Ukraine, the Middle East conflict and other political tensions, and the occurrence of natural disasters and public health crises. Such challenges have caused, and may continue to cause, recession fears, rising interest rates, foreign exchange volatility and inflationary pressures. At this time, the Company is unable to quantify the potential effects, if any, of this economic and political instability on its future operations.

On July 4, 2025, the U.S. enacted P.L. 119-21, a U.S. federal statute passed by the 119th United States Congress that included tax and spending policies (the “Act”), which contains a broad range of tax reform provisions affecting businesses, including extending or reinstating certain provisions of the 2017 Tax Cuts and Jobs Act, tax relief measures, modifications of certain energy tax credits granted under the Inflation Reduction Act and limits on various tax deductions, among other key provisions. The Company evaluated the Act and concluded it will not have a material impact on its condensed consolidated financial statements.

Rockwell has utilized a range of financing methods to fund its operations in the past; however, current conditions in the financial and credit markets may limit the availability of funding or refinancing or increase the cost of funding. Due to the rapidly evolving nature of the global situation, it is not possible to predict the extent to which these conditions could adversely affect the Company's liquidity and capital resources in the future.

3. Basis of Presentation, Summary of Significant Accounting Policies and Recent Accounting Pronouncements

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the U. S. Securities and Exchange Commission (“SEC”) and on the same basis as the Company prepares its annual audited consolidated financial statements.

The condensed consolidated balance sheet at September 30, 2025, and the condensed consolidated statements of operations, comprehensive loss, changes in stockholders' equity, and cash flows for the three and nine months ended September 30, 2025 and 2024 are unaudited, but include all adjustments, consisting of normal recurring adjustments the Company considers necessary for a fair presentation of the financial position, operating results, and cash flows for the periods presented. The results for the three and nine months ended September 30, 2025 are not necessarily indicative of results to be expected for the year ending December 31, 2025 or for any future interim period. The condensed consolidated balance sheet at December 31, 2024 has been derived from audited financial statements; however, it does not include all of the information and notes required by U.S. GAAP for complete financial statements. The accompanying condensed consolidated financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2024 and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed with the SEC on March 20, 2025. The Company’s consolidated subsidiaries consist of its wholly-owned subsidiaries, Rockwell Transportation, Inc. and Rockwell Medical India Private Limited.

The accompanying condensed consolidated interim financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant accounting estimates inherent in the preparation of the financial statements include estimates associated with revenue recognition and impairments of long-lived assets.

Restructuring and Other Charges

During the third quarter of 2025, the Company concluded manufacturing at its facility in Greer, South Carolina as part of its ongoing efforts to streamline operations and improve efficiency. This was neither material to the Company’s overall financial position nor performance. As a result, the Company incurred severance expense and other closure-related costs during the three and nine months ended September 30, 2025 of $0.5 million and $0.8 million, respectively, which were included in cost of sales on the accompanying condensed consolidated statements of operations. No impairment losses were recorded, as the plant's assets were either fully depreciated prior to closure or transferred to other operating locations. The closure is not expected to have a significant impact on the Company's future operations, and the restructuring activities associated with this closure are expected to be substantially completed by December 31, 2025.

Income (Loss) Per Share

Basic and diluted net income (loss) per share for the three and nine months ended September 30, 2025 and 2024 was calculated as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except share and per share amounts)	2025		2024		2025		2024
Numerator:
Net (Loss) Income	$	(1,753)	$	1,664	$	(4,760)	$	276
Less: Accretion of Series X Preferred Stock	—		—		(153)		—
Less: Undistributed Earnings to Participating Securities	—		(233)		—		(40)
Net (Loss) Income Attributable to Common Stockholders	$	(1,753)	$	1,431	$	(4,913)	$	236

Denominator:
Weighted Average Number of Shares of Common Stock Outstanding - Basic and Diluted	36,024,940		31,551,805		34,817,973		30,447,588
Incremental Shares Attributable to the Assumed Exercise of Outstanding Options to Purchase Common Stock	—		489,193		—		271,382
Incremental Shares Attributable to the Assumed Vesting of Unvested Restricted Stock Units	—		318,046		—		282,340
Incremental Shares Attributable to the Assumed Exercise of Warrants	—		61,124		—		12,154

Diluted Weighted Average Number of Shares of Common Stock Outstanding	36,024,940		32,420,168		34,817,973		31,013,464
Net (Loss) Income per Share Attributable to Common Stockholders - Basic and Diluted	$	(0.05)	$	0.05	$	(0.14)	$	0.01
Diluted Net (Loss) Income per Share Attributable to Common Stockholders	$	(0.05)	$	0.04	$	(0.14)	$	0.01

Basic income (loss) per share (“EPS”) is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, using the more dilutive of the two- class method and the if-converted method in the period of earnings. The two-class method is an earnings allocation method that determines income (loss) per share (when there are earnings) for common stock and participating securities. The if-converted method assumes all convertible securities are converted into common stock. Diluted EPS excludes all dilutive potential shares of common stock if their effect is anti-dilutive.

The Company’s potentially dilutive securities include stock options, restricted stock awards and units, convertible preferred stock and warrants. The following table includes the potential shares of common stock that were excluded from the

computation of diluted EPS attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
Warrants to Purchase Common Stock	3,984,484	3,793,388	3,984,484	3,793,388
Options to Purchase Common Stock	3,281,862	268,978	3,281,862	284,296
Convertible Preferred Stock	1,405,001	—	1,405,001	—
Unvested Restricted Stock Units	1,166,660	—	1,166,660	—
Unvested Restricted Stock Units - Market Condition	717,000	—	717,000	—
Unvested Restricted Stock Awards	891	891	891	891
Total	10,555,898	4,063,257	10,555,898	4,078,575

Adoption of Recent Accounting Pronouncements

The Company continually assesses new accounting pronouncements to determine their applicability. When it is determined a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a review to determine the consequences of the change to its consolidated financial statements and assures there are sufficient controls in place to ascertain the Company’s consolidated financial statements properly reflect the change.

In December 2023, the Financial Accounting Standards Board ("FASB") issued the Accounting Standards Update ("ASU") 2023-09, Improvements to Income Tax Disclosures, which updates income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This ASU also includes certain other amendments to improve the effectiveness of income tax disclosures. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. The Company is currently assessing the impact this ASU will have on the consolidated financial statements and footnote disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which is intended to provide more detailed information about specified categories of expenses (purchases of inventory, employee compensation, depreciation and amortization) included in certain expense captions presented on the consolidated statement of operations. This new standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently assessing the impact this ASU will have on the consolidated financial statements and footnote disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which simplifies the estimation of credit losses on current accounts receivable and contract assets by allowing the election of a practical expedient to assume that the current conditions as of the consolidated balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on these assets. The guidance in this ASU is effective for fiscal years beginning after December 15, 2025 and for interim periods within those fiscal years. Early adoption is permitted. If adopted in an interim period, entities are required to apply the new guidance as of the beginning of the annual reporting period that includes such interim period. The Company is currently assessing the impact this ASU will have on the consolidated financial statements and footnote disclosures.

4. Revenue Recognition

The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers, issued by the FASB. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

•Step 1: Identify the contract with the customer

•Step 2: Identify the performance obligations in the contract

•Step 3: Determine the transaction price

•Step 4: Allocate the transaction price to the performance obligations in the contract

•Step 5: Recognize revenue when the company satisfies a performance obligation

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by Rockwell from a customer, are excluded from revenue.

Shipping and handling costs associated with outbound freight related to contracts with customers are accounted for as a fulfillment cost and are included in cost of sales when control of the goods transfers to the customer.

Nature of goods and services

Rockwell operates in one market segment, the hemodialysis market, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process.

Rockwell's customer mix is diverse, with most customer sales concentrations under 10%. For the three months ended September 30, 2025, revenues from sales to two customers, DaVita, Inc. ("DaVita") and another customer were approximately 12% and 11% of total revenues for the period, respectively, and 17% and 10% of total revenues for the nine months ended September 30, 2025, respectively. For the three months ended September 30, 2024, revenues from DaVita was 52% of total revenues for the period, and 47% of total revenues for the nine months ended September 30, 2024. At September 30, 2025, DaVita represented 12% of the total net consolidated accounts receivable balance. At December 31, 2024, DaVita represented 20% of the total net consolidated accounts receivable balance. See below for additional information regarding the Company's contract with DaVita.

Product Sales

The Company accounts for individual products and services separately if they are distinct (i.e., if a product or service is separately identifiable from other items and if a customer can benefit from it on its own or with other resources that are readily available to the customer). The consideration, including any discounts, is allocated between separate products and services based on their stand-alone selling prices. The stand-alone selling prices are determined based on the cost plus margin approach.

Drug and dialysis concentrate products are sold directly to dialysis clinics and to wholesale distributors in both domestic and international markets. Distribution and license agreements for which upfront fees are received are evaluated upon execution or modification of the agreement to determine if the agreement creates a separate performance obligation from the underlying product sales. For all existing distribution and license agreements, the distribution and license agreement is not a distinct performance obligation from the product sales. In instances where regulatory approval of the product has not been established and the Company does not have sufficient experience with the foreign regulatory body to conclude that regulatory approval is probable, the revenue for the performance obligation is recognized over the term of the license agreement (over time recognition). Conversely, when regulatory approval already exists or is probable, revenue is recognized at the point in time that control of the product transfers to the customer.

For the majority of the Company's international customers, the Company recognizes revenue when the customer takes control at the shipping point, which is generally the Company's plant or warehouse. For other customers, the Company recognizes revenue based on when the customer takes control of the product upon delivery. The amount of revenue recognized is based on the purchase order less returns and adjusted for any rebates, discounts, chargebacks or other amounts paid to customers estimated at the time of sale. Customers typically pay for the product based on customary business practices with payment terms averaging 30 days, while a small subset of customers have payment terms averaging 60 days.

Deferred License Revenue

The Company received upfront fees under three distribution and license agreements, which were recognized as revenue over the estimated term of the applicable distribution and license agreement as regulatory approval was not received and the Company did not have sufficient experience in China, India, South Korea and Turkey to determine that regulatory approval was probable as of the execution of the agreement. During the nine months ended September 30, 2025, all remaining deferred

revenue relating to the distribution and license agreements was recognized, resulting in $0.3 million of revenue recorded. All license agreements have been terminated.

Product Purchase Agreement

On September 18, 2023, Rockwell and its long-time customer, DaVita, a provider of kidney care, entered into an Amended and Restated Products Purchase Agreement (the "Amended Agreement"), which amends and restates the Product Purchase Agreement, dated July 1, 2019, as amended, under which the Company supplies DaVita with certain dialysis concentrates. Under the Amended Agreement, the Company and DaVita agreed to an increase in product pricing, effective September 1, 2023. The term of the Amended Agreement was scheduled to expire on December 31, 2024. Prior to the expiration, the Company received written notice from DaVita, notifying the Company that DaVita intended to extend the term of the Amended Agreement through December 31, 2025 (the "Extension Term"). However, DaVita subsequently indicated that it will completely transition to another supplier, subject to further discussion between Rockwell and DaVita. DaVita has agreed to quarterly, non-refundable payments totaling $1.7 million during the nine months ended September 30, 2025 to ensure supply continuity during the transition period for products purchased. These quarterly, non-refundable payments of $0.4 million and $1.7 million were recorded as revenue during the three and nine months ended September 30, 2025, respectively. Discussions between Rockwell and DaVita are ongoing and the Company continues to supply DaVita as of the filing date of this report.

Disaggregation of revenue

Revenue is disaggregated by primary geographical market, major product line, and timing of revenue recognition.


In thousands	Three Months Ended September 30, 2025						Nine Months Ended September 30, 2025
Products By Geographic Area	Total		U.S.		Rest of World		Total		U.S.		Rest of World
Drug Revenues

License Fee – Over Time	$	—	$	—	$	—	$	325	$	—	$	325
Total Drug Products	—		—		—		325		—		325
Concentrate Products
Product Sales – Point-in-time	15,927		13,824		2,103		50,587		44,449		6,138

Total Concentrate Products	15,927		13,824		2,103		50,587		44,449		6,138
Net Revenue	$	15,927	$	13,824	$	2,103	$	50,912	$	44,449	$	6,463


In thousands	Three Months Ended September 30, 2024						Nine Months Ended September 30, 2024
Products By Geographic Area	Total		U.S.		Rest of World		Total		U.S.		Rest of World
Drug Revenues

License Fee – Over Time	$	11	$	—	$	11	$	34	$	—	$	34
Total Drug Products	11		—		11		34		—		34
Concentrate Products
Product Sales – Point-in-time	28,305		26,247		2,058		76,790		70,390		6,400

Total Concentrate Products	28,305		26,247		2,058		76,790		70,390		6,400
Net Revenue	$	28,316	$	26,247	$	2,069	$	76,824	$	70,390	$	6,434

Contract balances

The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers.


In thousands	September 30, 2025		December 31, 2024		January 1, 2024
Accounts Receivable, net	$	8,328	$	8,291	$	10,901
Contract Liabilities, which are included in deferred license revenue	$	—	$	475	$	521

There were no other material contract assets recorded on the condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024. The Company does not generally accept returns of its concentrate products and no material provision for returns of concentrates products was established as of September 30, 2025 or December 31, 2024.

Transaction price allocated to remaining performance obligations

Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, contracts where revenue is recognized as invoiced and contracts with variable consideration related to undelivered performance obligations, was nil as of September 30, 2025. The Company applies the practical expedient in ASC 606, paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

5. Intangible Assets and Deferred Consideration

Intangible Assets

Our customer relationship intangible asset relates to customer relationships acquired in connection with an acquisition executed on July 10, 2023 with Evoqua Water Technologies LLC ("Evoqua") (the "Evoqua Asset Acquisition").

The details of our intangible assets subject to amortization are set forth below (in thousands):


	September 30, 2025
	Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Customer Relationships	20 years	$	11,035	$	(1,241)	$	9,794


	December 31, 2024
	Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount

Customer Relationships	20 years	$	11,035	$	(828)	$	10,207

During each of the three months ended September 30, 2025 and 2024, the Company recorded amortization of its customer relationship intangible asset of $0.1 million. During each of the nine months ended September 30, 2025 and 2024, the Company recorded amortization of its customer relationship intangible asset of $0.4 million.

Estimated future amortization expense on the Company's customer relationships intangible asset as of September 30, 2025 is as follows (table in thousands):


Year ending December 31:
2025 (remainder of year)	$	138
2026	552
2027	552
2028	552
2029	552
Thereafter	7,448
Total	$	9,794

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Deferred Consideration

A portion of the purchase price of the Evoqua Asset Acquisition was deferred on the acquisition date, with payment terms extending through April 2026. During the three and nine months ended September 30, 2025, the Company made payments of $0.8 million and $1.6 million, respectively. As of September 30, 2025, a deferred consideration liability of $1.8 million is presented in Deferred Consideration - Current on the accompanying condensed consolidated balance sheet.

6. Investments - Available-for-Sale

Investments available-for-sale consisted of the following as of September 30, 2025 and December 31, 2024 (table in thousands):


	September 30, 2025
	Amortized Cost		Unrealized Gain		Fair Value
Available-for-Sale Securities
Debt Securities	$	10,018	$	79	$	10,097


	December 31, 2024
	Amortized Cost		Unrealized Gain		Fair Value
Available-for-Sale Securities
Debt Securities	$	5,880	$	60	$	5,940

The fair value of investments available-for-sale are determined using quoted market prices from daily exchange-traded markets based on the closing price as of the balance sheet date and are classified as a Level 1 measurement under ASC 820, Fair Value Measurements.

During the three and nine months ended September 30, 2025, the Company sold investments outstanding for a gain of $0.1 million and $0.2 million, respectively, which is included in realized gain on available-for-sale investments on the condensed consolidated statements of operations.

As of September 30, 2025, the Company's remaining available-for-sale securities are U.S. Department of the Treasury bonds and are all due within one year.

7. Segment Reporting

Operating segments are defined as components of an entity about which discrete financial information is evaluated regularly by the Company's Chief Operating Decision Maker ("CODM") in deciding how to allocate resources and assess performance. Rockwell operates in one market segment, the hemodialysis market, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process. Accordingly, the Company has one reportable segment. The Company has a single management team that reports to its Chief Executive Officer, the Company's CODM, who comprehensively manages the entire Company. The accounting policies of the segment are the same as those described in the summary of significant accounting policies.

The CODM assesses performance for the segment and decides how to allocate resources based on net (loss) income that also is reported on the statements of operations and comprehensive loss as net loss. The CODM uses net loss to monitor budget and forecast versus actual results in assessing segment performance, as well as cash forecast models, in order to evaluate operating results and performance in deciding how to allocate resources. The measure of segment assets is reported on the balance sheets as total assets.

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

The Company’s significant segment expenses for its one segment for the three and nine months ended September 30, 2025 and 2024 consisted of the following (table in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024

Net Sales	$	15,927	$	28,316	$	50,912	$	76,824
Cost of Sales	13,655		22,077		43,095		62,971
Gross Profit	2,272		6,239		7,818		13,853
Employee Compensation	2,538		2,663		7,598		7,243
Administrative Costs	1,318		1,640		4,513		5,483
Operating (Loss) Income	(1,584)		1,936		(4,293)		1,127

Other Income (Expense):
Realized Gain on Investments	61		—		181		51
Interest Expense	(285)		(302)		(838)		(965)
Interest Income	55		30		190		63
Total Other Expense, net	(169)		(272)		(467)		(851)

Net (Loss) Income	$	(1,753)	$	1,664	$	(4,760)	$	276

8. Inventory

Components of inventory, net of reserves, as of September 30, 2025 and December 31, 2024 were as follows (table in thousands):


	September 30, 2025		December 31, 2024
Inventory - Current Portion
Raw Materials	$	2,180	$	3,010
Work in Process	278		367
Finished Goods	1,506		2,401
Total Current Inventory	3,964		5,778
Inventory - Long Term (1)	—		178
Total Inventory	$	3,964	$	5,956

__________

(1)Represents inventory related to Triferic raw materials, which was expected to be utilized for the Company's international partnerships. (See Note 4, Deferred License Revenue section). During the nine months ended September 30, 2025, the Company wrote off this remaining inventory balance, resulting in an expense of $0.2 million recorded within cost of sales in the condensed consolidated statement of operations.

As of September 30, 2025 and December 31, 2024, Rockwell had total current concentrate inventory aggregating $4.4 million and $6.2 million, respectively, against which Rockwell had reserved $0.4 million and $0.5 million at September 30, 2025 and December 31, 2024, respectively.

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

9. Property and Equipment

As of September 30, 2025 and December 31, 2024, the Company’s property and equipment consisted of the following (table in thousands):


	September 30, 2025		December 31, 2024
Machinery and Equipment	$	12,264	$	11,973
Information Technology & Office Equipment	1,845		1,845
Leasehold Improvements	1,577		1,562
Laboratory Equipment	807		807
Total Property and Equipment	16,493		16,187
Accumulated Depreciation and Amortization	(11,541)		(10,402)
Property and Equipment, net	$	4,952	$	5,785

Depreciation and amortization expense for each of the three months ended September 30, 2025 and 2024 was $0.4 million. Depreciation and amortization expense for each of the nine months ended September 30, 2025 and 2024 was $1.2 million.

10. Accrued Liabilities

Accrued liabilities as of September 30, 2025 and December 31, 2024 consisted of the following (table in thousands):


	September 30, 2025		December 31, 2024
Accrued Compensation and Benefits	$	2,290	$	2,744
Accrued Unvouchered Receipts	600		1,417
Accrued Manufacturing Expense	—		602
Accrued Workers Compensation	103		176
Other Accrued Liabilities	872		1,336
Total Accrued Liabilities	$	3,865	$	6,275

11. Stockholders’ Equity

Preferred Stock

On April 6, 2022, the Company and DaVita entered into the Securities Purchase Agreement (the "SPA"), which provided for the issuance by the Company of up to $15 million of preferred stock to DaVita, which was issued to DaVita during 2022 as Series X Preferred Stock and, by virtue, made DaVita a related party.

The Series X Preferred Stock was issued for a price of $1,000 per share (the "Face Amount"), subject to accretion at a rate of 1% per annum, compounded annually. If the Company’s common stock trades above $22.00 for a period of 30 calendar days, the accretion will thereafter cease. As of September 30, 2025, a total of $0.5 million of the Series X Preferred Stock had been accreted, of which $0.2 million accreted during the nine months ended September 30, 2025.

The Series X Convertible Preferred Stock is convertible to common stock at a rate equal to the Face Amount, divided by a conversion price of $11.00 per share (subject to adjustment for future stock splits, reverse stock splits and similar recapitalization events). As a result, each share of Series X Preferred Stock will initially convert into approximately 91 shares of common stock. DaVita’s right to convert to common stock is subject to a beneficial ownership limitation, which is initially set at 9.9% of the outstanding common stock, which limitation may be reset (not to exceed 19.9%) at DaVita’s option and upon providing prior written notice to the Company. In addition, any debt financing is limited by the terms of our SPA with DaVita. Specifically, until DaVita holds less than 50% of its original investment in the Company's Series X Convertible Preferred Stock, the Company may only incur additional debt in the form of a purchase money loan, a working capital line of up to $5 million or to refinance existing debt, unless DaVita consents.

Additionally, the Series X Preferred Stock has a deemed liquidation event and redemption clause which could be triggered if the sale of all or substantially all of the Company's assets relating to the Company's dialysis concentrates business line. Since the Series X Preferred Stock may be redeemed if certain assets are sold at the option of the holder, but is not mandatorily redeemable as the sale of the assets that would allow for redemption is within the control of the Company, the preferred stock has been classified as permanent equity and initially recognized at fair value of $15 million (the proceeds on the date of issuance) less issuance costs of $0.1 million, resulting in an initial value of $14.9 million. The Company will assess at each reporting period whether conditions have changed to now meet the mandatory redemption definition which could trigger liability classification.

As of each of September 30, 2025 and December 31, 2024, there were 2,000,000 shares of preferred stock, $0.0001 par value per share, authorized and 15,000 shares of preferred stock issued and outstanding.

Common Stock

As of September 30, 2025 and 2024, the Company reserved for issuance the following shares of common stock related to the potential exercise of employee stock options, unvested restricted stock and awards, convertible preferred stock, and warrants (collectively, "common stock equivalents"):


	As of September 30,
Common Stock and Common Stock Equivalents:	2025	2024
Common Stock	39,405,301	32,318,806


Options to Purchase Common Stock	3,281,862	1,874,729
Unvested Restricted Stock Awards	891	891
Unvested Restricted Stock Units	1,166,660	534,309
Convertible Preferred Stock	1,405,001	1,391,045
Unvested Restricted Stock Units - Market Condition	717,000	—
Warrants to Purchase Common Stock	3,984,484	3,984,484
Total	49,961,199	40,104,264

Controlled Equity Offering

On April 8, 2022, the Company entered into a Sales Agreement (the "Sales Agreement") with Cantor Fitzgerald & Co. (the "Agent"), pursuant to which the Company may offer and sell from time to time shares of Company’s common stock through

the Agent pursuant to the Company’s shelf registration statement on Form S-3 (No. 333-259923) filed with the SEC on September 30, 2021 (the “Prior Registration Statement”).

This Prior Registration Statement expired on October 8, 2024 and, upon the effectiveness of the new registration statement on October 21, 2024, was deemed terminated. On November 13, 2024, in connection with the new registration statement, the Company filed a prospectus supplement covering the offer and sale of an aggregate offering price of up to $25.0 million of shares of the Company's common stock through the Agent under the Sales Agreement (as amended, the "ATM facility"). The offering and sale of such shares has been registered under the Securities Act of 1933, as amended.

During the three and nine months ended September 30, 2025, 4,964,636 shares were sold pursuant to the Sales Agreement for gross proceeds of $8.0 million, net of offering costs of $0.2 million, for net proceeds of $7.8 million. Approximately $13.1 million remains available for sale under the ATM facility.

Warrant Issuance

In connection with the execution of the Third Amendment, as defined and described in Note 15, on January 2, 2024, the Company issued to Innovatus a warrant to purchase 191,096 shares of the Company’s common stock with an exercise price of $1.83 per share. The warrant may be exercised on a cashless basis, and is immediately exercisable through January 2, 2029. The number of shares of common stock for which the warrant is exercisable and the exercise price are subject to certain proportional adjustments as set forth in the Third Amendment. The warrant is equity-classified with a fair value of approximately $0.2 million

at issuance, which was treated as a debt issuance cost and is being amortized through interest expense over the remaining contractual term of the Term Loans, as defined and described in Note 15.

12. Stock-based Compensation

The Company recognized total stock-based compensation expense during the three and nine months ended September 30, 2025 and 2024 as follows (table in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Service-based Awards:

Restricted Stock Units	$	263	$	163	$	744	$	440
Stock Option Awards	269		158		615		470
Total	$	532	$	321	$	1,359	$	910

Performance-based Restricted Stock Awards

A summary of the Company’s performance-based restricted stock awards during the nine months ended September 30, 2025 is as follows:


Performance-based Restricted Stock Awards	Number of Shares	Weighted Average Grant-Date Fair Value
Unvested at January 1, 2025	891	$	62.70

Unvested at September 30, 2025	891	$	62.70

Performance-based restricted stock awards are measured based on their fair value on the date of grant and amortized over the vesting period of 20 months. As of September 30, 2025, there is no unrecognized stock-based compensation expense related to performance-based restricted stock awards.

Restricted Stock Units - Market Condition

During the nine months ended September 30, 2025, the Company granted 717,000 restricted stock units with a market condition ("RSU-MC") under its Amended and Restated 2018 Long Term Incentive Plan with a grant date fair value of $0.6 million. The RSU-MCs are subject to both service and market based vesting conditions.

The RSU-MCs will vest, subject to the recipient's continued employment through the vesting date, if the average closing price of the Company's common stock equals or exceeds $2.14 per share for any consecutive 60-day trading period occurring prior to the third anniversary of the grant date. Except in the event of a change in control or termination due to death or disability, no portion of the award will vest before the first anniversary of the grant date. The RSU-MCs qualify as equity instruments and are accounted for under ASC 718, Compensation, Stock Compensation ("ASU 718").

The stock-based compensation expense recorded in connection with the RSU-MCs was $0.1 million for the three and nine months ended September 30, 2025.

The fair value of RSU-MCs was measured on the date of grant using the Monte Carlo Simulation valuation model based on the following assumptions:


Exercise price			$1.07
Expected stock price volatility			93.0%
Risk-free interest rate			4.0%
Term (years)			2.50

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Service-based Restricted Stock Units

A summary of the Company’s service-based restricted stock units during the nine months ended September 30, 2025 and 2024 is as follows:


Service-based Restricted Stock Units	Number of Shares	Weighted Average Grant-Date Fair Value
Unvested at January 1, 2025	584,309	$	1.72
Granted	1,000,000	1.07
Vested	(417,649)	1.85

Unvested at September 30, 2025	1,166,660	$	1.12

The fair value of service-based restricted stock units is measured on the date of grant and amortized over the vesting period. The vesting periods range from one to three years. As of September 30, 2025, the unrecognized stock-based compensation expense was $0.9 million, which is expected to be recognized over the next 1.4 years.

Service-based Stock Option Awards

The fair value of the service-based stock option awards granted during the nine months ended September 30, 2025 and 2024 were based on the following assumptions:


	Nine Months Ended September 30, 2025	Nine Months Ended September 30, 2024
Exercise price	$1.07 - $1.26	$1.39 - $1.80
Expected stock price volatility	90.4% - 91.2%	81.8%
Risk-free interest rate	3.74% - 4.14%	4.31% - 4.45%
Term (years)	5.62 - 5.86	5.61 - 5.62

A summary of the Company’s service-based stock option activity for the nine months ended September 30, 2025 is as follows:


Service-based Stock Option Awards	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2025	1,886,247	$	3.98
Granted	1,502,500	1.07
Exercised	(10,313)	1.48
Forfeited	(50,805)	1.42
Expired	(45,767)	3.08
Outstanding at September 30, 2025	3,281,862	$	2.71	8.3	$	192
Exercisable at September 30, 2025	1,108,150	$	5.47	6.8	$	—

The aggregate intrinsic value is calculated as the difference between the closing price of the Company's common stock at the date indicated and the exercise price of the stock options that had strike prices below the closing price.

As of September 30, 2025, total stock-based compensation expense related to unvested options not yet recognized totaled approximately $1.2 million, which is expected to be recognized over the next 2.5 years.

13. Commitments and Contingencies

From time to time, the Company has been or may become a party to various disputes, legal actions, proceedings and investigations involving claims incidental to the conduct of its business, including actions by customers, employees, government

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

entities and third parties. Due to the contract-intensive nature of the Company's business, the Company has been or may in the future become involved in disputes or legal actions with its contract counterparties, which could have a negative impact on the Company's business, results of operations or financial condition.

Product License Agreements

The Company is a party to a Licensing Agreement between the Company and Charak, LLC ("Charak") dated January 7, 2002 (the "2002 Agreement") that grants the Company exclusive worldwide rights to certain patents and information related to its Triferic product. On October 7, 2018, the Company entered into a Master Services and IP Agreement (the “Charak MSA”) with Charak and Dr. Ajay Gupta, a former Officer of the Company. Pursuant to the MSA, the parties entered into three additional agreements described below related to the license of certain soluble ferric pyrophosphate (“SFP”) intellectual property owned by Charak, as well as an employment agreement.

Pursuant to the Charak MSA, the aforementioned parties entered into an Amendment, dated as of October 7, 2018 (the “Charak Amendment”), to the 2002 Agreement, under which Charak granted the Company an exclusive, worldwide, non-transferable license to commercialize SFP for the treatment of patients with renal failure. The Charak Amendment amends the royalty payments due to Charak under the 2002 Agreement such that the Company is liable to pay Charak royalties on net sales by the Company of products developed under the license, which includes the Company’s Triferic product, at a specified rate until December 31, 2021 and thereafter at a reduced rate from January 1, 2022 until February 1, 2034. Additionally, the Company is required to pay Charak a percentage of any sublicense income during the term of the agreement, which cannot be less than a minimum specified percentage of net sales of the licensed products by the sublicensee in jurisdictions where there exists a valid claim, on a country-by-country basis, and can be no less than a lower rate of the net sales of the licensed products by the sublicensee in jurisdictions where there exists no valid claim, on a country-by-country basis.

Also pursuant to the Charak MSA, the Company and Charak entered into a Commercialization and Technology License Agreement IV Triferic dated as of October 7, 2018 (the “IV Agreement”), under which Charak granted the Company an exclusive, sub-licensable, royalty-bearing license to SFP for the purpose of commercializing certain intravenous-delivered products incorporating SFP for the treatment of iron disorders worldwide for a term that expires on the later of February 1, 2034 or upon the expiration or termination of a valid claim of a licensed patent. The Company was liable to pay Charak royalties on net sales by the Company of products developed under the license at a specified rate until December 31, 2021. From January 1, 2022 until February 1, 2034, the Company is liable to pay Charak a base royalty at a reduced rate on net sales and an additional royalty on net sales while there exists a valid claim of a licensed patent, on a country-by-country basis. The Company shall also pay to Charak a percentage of any sublicense income received during the term of the IV Agreement, which amount shall not be less than a minimum specified percentage of net sales of the licensed products by the sublicensee in jurisdictions where there exists a valid claim, on a country-by-country basis, and not be less than a lower rate of the net sales of the licensed products by the sublicensee in jurisdictions where there exists no valid claim, on a country-by-country basis.

Also pursuant to the Charak MSA, the Company and Charak entered into a Technology License Agreement TPN Triferic dated as of October 7, 2018 (the “TPN Agreement”), pursuant to which Charak granted the Company an exclusive, sub-licensable, royalty-bearing license to SFP for the purpose of commercializing worldwide certain TPN products incorporating SFP. The license grant under the TPN Agreement continues for a term that expires on the later of February 1, 2034 or upon the expiration or termination of a valid claim of a licensed patent. During the term of the TPN Agreement, the Company is liable to pay Charak a base royalty on net sales and an additional royalty on net sales while there exists a valid claim of a licensed patent, on a country-by-country basis. The Company shall also pay to Charak a percentage of any sublicense income received during the term of the TPN Agreement, which amount shall not be less than a minimum royalty on net sales of the licensed products by the sublicensee in jurisdictions where there exists a valid claim, on a country-by-country basis, and not be less than a lower rate of the net sales of the licensed products by the sublicensee in jurisdictions where there exists no valid claim, on a country-by-country basis.

The potential milestone payments are not considered probable, and no milestone payments have been accrued as of September 30, 2025 and December 31, 2024.

14. Leases

Rockwell leases its production facilities and administrative offices as well as certain equipment used in its operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to six

years. Rockwell occupies a 51,000 square foot facility and a 17,500-square foot facility in Wixom, Michigan under a lease expiring in August 2027. During March 2024, the lease for the Wixom facilities was extended by three years to August 2027, which was accounted for as a modification. Rockwell also occupies two other manufacturing facilities, a 51,000-square foot facility in Grapevine, Texas under a lease expiring in December 2025, and a 57,000-square foot facility in Greer, South Carolina under a lease expiring February 2026.

During the nine months ended September 30, 2025, Rockwell entered into a lease for a 16,800-square foot storage facility in Allentown, Pennsylvania, that expires in April 2030, resulting in the recognition of a right-of-use asset and corresponding lease liability of approximately $1.0 million on the condensed consolidated balance sheets.

The following summarizes quantitative information about the Company’s operating and finance leases (table in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating Leases
Operating Lease Cost	$	477	$	418	$	1,391	$	1,179
Variable Lease Cost	146		126		411		376
Operating Lease Expense	623		544		1,802		1,555
Finance Leases
Amortization of Right-of-use Assets	109		139		387		421
Interest on Lease Obligations	16		28		59		89
Finance Lease Expense	125		167		446		510
Short-term Lease Rent Expense	5		5		16		16
Total Lease Expense	$	753	$	716	$	2,264	$	2,081

Other Information
Operating Cash Flows from Operating Leases	$	483	$	449	$	1,385	$	1,312
Operating Cash Flows from Finance Leases	$	46	$	28	$	89	$	89
Financing Cash Flows from Finance Leases	$	124	$	140	$	418	$	416


	September 30, 2025		September 30, 2024
Weighted-average Remaining Lease Term – Operating Leases	2.7		2.6
Weighted-average Remaining Lease Term – Finance Leases	1.9		2.7
Weighted-average Discount Rate – Operating Leases	7.9	%	6.3	%
Weighted-average Discount Rate – Finance Leases	6.8	%	6.4	%

Future minimum rental payments under operating and finance lease agreements are as follows (table in thousands):


	Operating		Finance
Year ending December 31, 2025 (remaining)	$	486	$	125
Year ending December 31, 2026	1,316		504
Year ending December 31, 2027	912		311
Year ending December 31, 2028	328		—
Year ending December 31, 2029	282		—
Remaining future payments	96		—
Total	3,420		940
Less Present Value Discount	(378)		(56)
Operating and Finance Lease Liabilities	$	3,042	$	884

ROCKWELL MEDICAL, INC. AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

(Unaudited)

15. Loan and Security Agreement

On March 16, 2020, the Company and Rockwell Transportation, Inc., as Borrowers, entered into a Loan and Security Agreement (the "Loan Agreement") with Innovatus, as collateral agent and the lenders party thereto, pursuant to which Innovatus, as a lender, agreed to make certain term loans to the Company in the aggregate principal amount of up to $35.0 million (the "Term Loans"). Funding of the first $22.5 million tranche was completed on March 16, 2020. The Company is no longer eligible to draw on additional tranches, which were tied to the achievement of certain milestones. Net draw down proceeds were $21.2 million with closing costs of $1.3 million. The Company also owes an additional fee equal to 4.375% of the funded amount of the Term Loans, or $1.0 million (such additional fee, the "Final Fee") at maturity. The Company is accreting up to this Final Fee premium with a charge against interest expense on the accompanying condensed consolidated statements of operations.

In connection with each funding of the Term Loans, the Company was required to issue to Innovatus a warrant (each a “Warrant”, and together the “Warrants”) to purchase a number of shares of the Company’s common stock equal to 3.5% of the principal amount of the relevant Term Loan funded divided by the exercise price. In connection with the first tranche of the Term Loans, the Company issued a Warrant to Innovatus, exercisable for an aggregate of 43,388 shares of the Company’s common stock at an exercise price of $18.15 per share. The Warrant may be exercised on a cashless basis and is immediately exercisable through the seventh anniversary of the applicable funding date. The number of shares of common stock for which the Warrant is exercisable and the associated exercise price are subject to certain proportional adjustments as set forth in such Warrant. The Company evaluated the warrant under ASC 470, Debt, and recognized an additional debt discount of approximately $0.5 million based on the relative fair value of the base instruments and warrants. The Company calculated the fair value of the Warrant using the Black-Scholes model.

The Term Loans were scheduled to mature on March 16, 2025, and bore interest at the greater of (i) Prime Rate (as defined in the Loan Agreement) and (ii) 4.75%, plus 4.00%, with an initial interest rate of 8.75% per annum. The Company had the option, under certain circumstances, to add 1.00% of such interest rate amount to the then outstanding principal balance in lieu of paying such amount in cash.

On January 2, 2024, the Company entered into the Third Amendment to and Restatement of the Loan and Security Agreement (the "Third Amendment") with Innovatus, dated January 1, 2024 (the "Effective Date"). The Third Amendment provides for the continuation of term loans initially borrowed under the Loan Agreement amounting to $8.0 million as of January 1, 2024. The Company will make interest-only payments on the Term Loans for 36 months as certain conditions in the Third Amendment were met. The Company will make equal monthly payments of principal, together with applicable interest, in arrears, starting February 1, 2027. The Term Loans will mature on January 1, 2029. Effective on January 1, 2024, the Term Loans bear interest equal to the sum of (i) the greater of (a) Prime Rate (as defined in the Third Amendment) and (b) 7.50% plus (ii) 3.50%. At the Company's option, 2.00% of the interest due on any applicable interest payment date during the interest-only period may be paid in-kind by adding such amount to the then outstanding principal balance of the Term Loans. The Term Loans may be voluntarily prepaid in full (but not partially) at any time, upon at least seven business days’ prior notice. In connection with any voluntary prepayment or satisfaction of the Term Loans prior to the maturity date (including any acceleration), the Company will pay all accrued and unpaid interest and all other amounts due in connection with the Term Loans, together with (x) a prepayment fee (the “Prepayment Fee”) equal to: (i) 6.0% of the principal amount of the Term Loans prepaid if the payment is made before January 1, 2025; (ii) 2.0% of the principal amount of the Term Loans prepaid if the payment is made after January 1, 2025 but on or before January 1, 2026; (iii) 1.0% of the principal amount of the Term Loans prepaid if the payment is made after January 1, 2026 but on or before January 1, 2027; or (iv) 0% of the principal amount of the Term Loans prepaid if the payment is made after January 1, 2027 through maturity, and (y) the Final Fee. The Term Loans will be mandatorily prepaid upon a change in control of the Company, or upon any early termination/acceleration of the Term Loans. In the event of a mandatory prepayment of the Term Loans, the Company shall be required to pay the Prepayment Fee (if applicable), as well as the Final Fee. The Third Amendment Final Fee shall be due and payable at maturity if it has not previously been paid in full in connection with a prepayment of the Term Loans. The Third Amendment was treated as a modification for accounting purposes.

The Third Amendment contains various financial covenants and customary representations and warranties and affirmative and negative covenants, subject to exceptions as described in the Third Amendment. The Company's ability to comply with the covenants under the Third Amendment may be adversely affected by events beyond its control. If the Company is unable to comply with the covenants under the Third Amendment, it would pursue all available cure options in order to regain compliance. However, the Company may not be able to mutually agree with Innovatus on appropriate remedies to cure a future

breach of a covenant, which could give rise to an event of default. As of September 30, 2025, the Company was in compliance with all covenants under the Third Amendment.

In connection with the execution of the Third Amendment, on January 2, 2024, the Company issued a warrant to purchase shares of the Company’s common stock. The warrant is equity-classified with a fair value of $0.2 million at issuance, which was treated as a debt issuance cost and is being amortized through interest expense over the remaining contractual term of the Term Loan. For additional information, see Note 11.

The effective interest rate used to amortize the debt issuance cost relating to these warrants is 11.0% as of September 30, 2025. For each of the three months ended September 30, 2025 and 2024, interest expense amounted to $0.2 million. For the nine months ended September 30, 2025 and 2024, interest expense amounted to $0.7 million and $0.7 million respectively. As of September 30, 2025, the outstanding balance of the Term Loans was $8.7 million, net of unamortized issuance costs and discount of $0.5 million, and including $0.8 million of premium accretion, and paid-in-kind interest of $0.3 million.

The Loan Agreement is secured by all assets of the Company and Rockwell Transportation, Inc. and contains customary representations and warranties and covenants, subject to customary carve outs, and initially included financial covenants related to liquidity and sales of Triferic.

The following table reflects the schedule of principal payments on the Term Loans as of September 30, 2025 (table in thousands):


	September 30, 2025
2025 (remaining)	$	—
2026	—
2027	3,833
2028	4,181
2029 (inclusive of Final Fee)	1,333
Total Debt Maturities	9,347
Unamortized Issuance Costs and Discount, net	(610)
Term Loan - Long-Term, net	$	8,737

16. Insurance Financing Note Payable

On June 3, 2025, the Company entered into a short-term note payable with a principal amount of $0.7 million, bearing interest at a rate of 7.14% per annum to finance various insurance policies, which required an upfront payment of $0.2 million. Principal and interest payments related to this note began on July 3, 2025 and are being paid in 10 equal monthly payments of $0.1 million, with the final payment due on April 3, 2026. As of September 30, 2025, the Company's insurance financing note payable balance was $0.5 million.

On June 4, 2024, the Company entered into a short-term note payable with a principal amount of $0.7 million, bearing interest at a rate of 7.89% per annum to finance various insurance policies, which required an upfront payment of $0.2 million. Principal and interest payments related to this note began on July 3, 2024 and were paid in 10 equal monthly payments of $0.1 million, with the final payment due on April 3, 2025. During the nine months ended September 30, 2025, the Company's insurance financing note payable balance was paid in full.

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

The following discussion and analysis should be read in conjunction with our condensed consolidated financial statements and related notes in “Item 1. Condensed Consolidated Financial Statements”. References in this report to “Rockwell,” the “Company,” “we,” “our” and “us” are references to Rockwell Medical, Inc. and its subsidiaries.

Forward-Looking Statements

We make forward-looking statements in this report and may make such statements in future filings with the U.S. Securities and Exchange Commission ("SEC"). We may also make forward-looking statements in our press releases or other public or shareholder communications. Our forward-looking statements are subject to risks and uncertainties and include information about our current expectations and possible or assumed future results of our operations. When we use words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “could,” “plan,” “potential,” “predict,” “forecast,” “project,” “intend,” “is focused on” or similar expressions, or make statements regarding our intent, belief, or current expectations, we are making forward-looking statements. Our forward looking statements also include, without limitation, statements about our liquidity and capital resources; our ability to continue as a going concern; our ability to successfully negotiate a contract extension with and/or future volume commitments by DaVita; our ability to successfully integrate acquisitions; the size of the hemodialysis concentrates market opportunity; our ability to successfully execute on our business strategy; our ability to raise additional capital; our ability to successfully implement certain cost containment and cost-cutting measures; our ability to achieve profitability and statements regarding our anticipated future financial condition, operating results, cash flows and business plans.

While we believe our forward-looking statements are reasonable, you should not place undue reliance on any such forward-looking statements, which are based on information available to us on the date of this report or, if made elsewhere, as of the date made. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different. Factors that might cause such a difference include, without limitation, the risks and uncertainties discussed in this report, “Item 1A — Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and from time to time in our other reports filed with the SEC.

Other factors not currently anticipated may also materially and adversely affect our results of operations, cash flow and financial position. There can be no assurance future results will meet expectations. Forward-looking statements speak only as of the date of this report and we expressly disclaim any intent to update or alter any statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.

Overview

Rockwell is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers worldwide. Rockwell's mission is to provide dialysis clinics and the patients they serve with the highest quality products supported by the best customer service in the industry.

The Company is a leading supplier of liquid bicarbonate concentrates, and the second largest supplier of acid and dry bicarbonate concentrates, for dialysis patients in the United States. Hemodialysis is the most common form of end-stage kidney disease treatment and is usually performed in freestanding outpatient dialysis centers, hospital-based outpatient centers, skilled nursing facilities, or a patient’s home. This represents a large market opportunity for which we believe Rockwell's products are well positioned to meet the needs of patients.

Rockwell's products are vital to vulnerable patients with end-stage kidney disease. We are an established leader in manufacturing and delivering high-quality hemodialysis concentrates and dialysates, along with certain ancillary products, to dialysis providers and distributors in the United States and abroad. Rockwell provides the hemodialysis community with products controlled by a Quality Management System regulated by the U.S. Food and Drug Administration ("FDA"). Rockwell is ISO 13485 Certified and adheres to current Good Manufacturing Practices ("cGMP") and Association for Advancement of Medical Instrumentation ("AAMI") standards. Rockwell manufactures hemodialysis concentrates at its facilities in Michigan and Texas, and manufactures its dry acid concentrate mixers at its facility in Iowa. The Company previously operated a manufacturing facility in South Carolina, but the Company concluded manufacturing at that facility in the third quarter of 2025 as part of its ongoing efforts to streamline operations and improve efficiency.

Rockwell delivers the majority of its hemodialysis concentrates products and mixers to dialysis clinics throughout the United States and internationally utilizing its own delivery trucks and third-party carriers. Rockwell has developed a core expertise in manufacturing and delivering hemodialysis concentrates, and has built a longstanding reputation for reliability, quality, and excellent customer service.

Rockwell's commercial organization supports the Company's vision to focus its efforts on enhancing its revenue-generating business and driving the Company towards sustainable profitability. The Company concentrates its efforts on increasing its market share, broadening its product portfolio, right-sizing its product pricing, improving gross margins, and growing the Company's business through organic and inorganic growth and other business development opportunities.

We currently operate in one market segment, the hemodialysis market, which involves the manufacturing, sale and distribution of hemodialysis products to hemodialysis clinics, including dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process.

On September 18, 2023, Rockwell and DaVita, Inc. ("DaVita") entered into the Amended Agreement, which amended and restated the Product Purchase Agreement, dated July 1, 2019, as amended, under which the Company supplies DaVita with certain dialysis concentrates. Under the Amended Agreement, the Company and DaVita agreed to an increase in product pricing, effective September 1, 2023. The term of the Amended Agreement was scheduled to expire on December 31, 2024. Prior to the expiration, the Company received written notice from DaVita that DaVita intended to extend the term of the Amended Agreement through December 31, 2025 (the "Extension Term"). However, DaVita subsequently indicated that it will completely transition to another supplier, subject to further discussions between Rockwell and DaVita. DaVita has agreed to quarterly, non-refundable payments totaling $1.7 million to ensure supply continuity for products purchased during the nine months ended September 30, 2025. These quarterly, non-refundable payments of $1.7 million were recorded as revenue during the nine months ended September 30, 2025. Discussions between Rockwell and DaVita are ongoing and include a potential contract extension and/or future volume commitments by DaVita to Rockwell. There can be no assurance that these discussions will yield a successful outcome for Rockwell. We continue to supply DaVita as of the filing date of this report, but at significantly reduced levels from 2024.

In the second quarter of 2025, Rockwell entered into a product purchase agreement with Innovative Renal Care ("IRC"), one of the largest dialysis service providers in the United States. Under the terms of the agreement, Rockwell will supply IRC with liquid and dry, acid and bicarbonate hemodialysis concentrates, as well as the Company's DAMX45 dry acid concentrate mix system, which is 510(k) approved to be used exclusively with Rockwell's CitraPure and Dri-Sate dry acid concentrate powders. This multimillion-dollar agreement contains utilization commitments will remain in effect for three years, with the option to extend for an additional one-year period.

Results of Operations for the Three Months Ended September 30, 2025 and 2024

The following table summarizes our operating results for the periods presented below (dollars in thousands):


	Three Months Ended September 30,
	2025		% of Revenue		2024		% of Revenue		% Change

Net Sales	$	15,927			$	28,316			(44)	%
Cost of Sales	13,655		86	%	22,077		78	%	(38)	%
Gross Profit	2,272		14	%	6,239		22	%	(64)	%


Selling and Marketing	531		3	%	726		3	%	(27)	%
General and Administrative	3,325		21	%	3,577		13	%	(7)	%
Operating (Loss) Income	$	(1,584)	(10)	%	$	1,936	6	%	(182)	%

Net Sales

During the three months ended September 30, 2025, net sales were $15.9 million compared to net sales of $28.3 million during the three months ended September 30, 2024. The decrease of $12.4 million was primarily due to a $13.0 million reduction in sales to DaVita, partially offset by an increases of $0.6 million from price increases to other existing customers and sales to new customers. The three months ended September 30, 2024 included $4.5 million from a special large order of premium-priced product to DaVita. DaVita represented 12% and 52% of net sales for the three months ended September 30, 2025 and 2024, respectively. Non-Product revenue was not material for either period.

Gross Profit

Cost of sales for the three months ended September 30, 2025 was $13.7 million, resulting in gross profit of $2.3 million for the three months ended September 30, 2025, compared to cost of sales of $22.1 million and a gross profit of $6.2 million for the three months ended September 30, 2024. The gross profit decrease of $3.9 million was primarily due to (i) $3.2 million a decrease in product sales, which includes $1.5 million from a special large order of premium-priced product to DaVita during the three months ended September 30, 2024 that did not repeat during the 2025 period, (ii) and increase of $0.2 million in severance expense and $0.3 million of other costs related to the closure of the Greer manufacturing facility and (iii) an increase of $0.6 million in additional manufacturing costs, partially offset by a price adjustment of $0.4 million for DaVita purchases for the three months ended September 30, 2025.

Selling and Marketing Expense

Selling and marketing expenses for the three months ended September 30, 2025 were $0.5 million compared to $0.7 million during the three months ended September 30, 2024. The decrease was primarily due to lower compensation expense.

General and Administrative Expense

General and administrative expenses were $3.3 million for the three months ended September 30, 2025, compared to $3.6 million for the three months ended September 30, 2024. The decrease of $0.3 million was primarily driven by a $0.2 million decrease in administrative costs and a $0.1 million decrease in professional fees.

Other Expense

Total other expense of $0.2 million and $0.3 million for the three months ended September 30, 2025 and 2024, respectively, was driven primarily by interest expense of $0.2 million in each period related to our debt facility (See Note 15 to the condensed consolidated financial statements included elsewhere in this Form 10-Q). The interest expense for the three months ended September 30, 2025 was partially offset by $0.1 million of interest income and realized gains on available-for-sale investments of $0.1 million.

Results of Operations for the Nine Months Ended September 30, 2025 and 2024

The following table summarizes our operating results for the periods presented below (dollars in thousands):


	Nine Months Ended September 30,
	2025		% of Revenue		2024		% of Revenue		% Change

Net Sales	$	50,912			$	76,824			(34)	%
Cost of Sales	43,095		85	%	62,971		82	%	(32)	%
Gross Profit	7,817		15	%	13,853		18	%

Research and Product Development	—		—	%	18		—	%	(100)	%
Selling and Marketing	1,814		4	%	1,906		2	%	(5)	%
General and Administrative	10,296		20	%	10,802		14	%	(5)	%
Operating (Loss) Income	$	(4,293)	(9)	%	$	1,127	2	%

Net Sales

During the nine months ended September 30, 2025, net sales were $50.9 million compared to net sales of $76.8 million during the nine months ended September 30, 2024. Product revenue for the nine months ended September 30, 2025 was $50.6 million compared to product revenue of $76.8 million for the nine months ended September 30, 2024. The decrease of $25.9 million was primarily due to a $27.9 million reduction in DaVita sales as a result of DaVita transitioning to a new supplier, partially offset by an increase of $2.0 million from price increases to other existing customers and sales to new customers. The three months ended September 30, 2024 included $5.4 million from a special large order of premium-priced product to DaVita. DaVita represented 17% and 47% of net sales during the nine months ended September 30, 2025 and 2024, respectively.

Net sales of non-product revenue were $0.3 million for the nine months ended September 30, 2025 from the recognition of the remaining deferred license revenue associated with Sun Pharmaceutical Industries Ltd. ("Sun Pharma"), Jeil Pharmaceutical Co., Ltd. ("Jeil Pharma") and Drogsan Pharmaceuticals ("Drogsan Pharma"). Non-Product revenue was not material for either period.

Gross Profit

Cost of sales for the nine months ended September 30, 2025 was $43.1 million, resulting in gross profit of $7.8 million for the nine months ended September 30, 2025, compared to cost of sales of $63.0 million and a gross profit of $13.9 million for the nine months ended September 30, 2024. The gross profit decrease of $6.1 million was primarily due to (i) a $5.5 million decrease in product sales, which includes $1.6 million from a special large order of premium-priced product to DaVita during the nine months ended September 30, 2024 that did not repeat during the 2025 period, (ii) an increase of $0.4 million in severance expense and $0.4 million of other costs related to the closure of the Greer manufacturing facility and (iii) an increase of $1.6 million in manufacturing costs, partially offset by a price adjustment of $1.7 million for DaVita purchases for the nine months ended September 30, 2025. Gross profit from non-product sales consists of $0.1 million associated with recognition of the remaining deferred license revenue associated with Sun Pharma, Jeil Pharma and Drogsan Pharma during the nine months ended September 30, 2025.

Research and Product Development Expense

Research and product development expenses were immaterial for the each of nine months ended September 30, 2025 and 2024 due to the decision to pause all research and development related to Triferic in 2023.

Selling and Marketing Expense

Selling and marketing expenses were $1.8 million and $1.9 million for the nine months ended September 30, 2025 and 2024, respectively. The decrease of $0.1 million is primarily due to lower employee compensation expenses.

General and Administrative Expense

General and administrative expenses were $10.3 million for the nine months ended September 30, 2025, compared to $10.8 million for the nine months ended September 30, 2024. The decrease of $0.5 million was primarily driven by decreases of (i) $0.5 million in administrative costs and (ii) $0.4 million in professional fees, partially offset by an increase of $0.4 million of stock-based compensation expense.

Other Expense

Total other expense of $0.5 million and $0.9 million for the nine months ended September 30, 2025 and 2024, respectively, was driven primarily by interest expense of $0.7 million in each period related to our debt facility (See Note 15 to the condensed consolidated financial statements included elsewhere in this Form 10-Q). The nine months ended September 30, 2025 was partially offset by $0.2 million of interest income, as well as realized gains on available-for-sale investments of $0.2 million.

Liquidity and Capital Resources

As of September 30, 2025, we had approximately $23.7 million of cash, cash equivalents and investments available-for-sale, and net working capital of $27.9 million. Based on the currently available net working capital along with the

expectation of management of its ability to execute on its operational plans as discussed below, management believes the Company currently has sufficient funds to meet its operating requirements for at least the next twelve months from the date of the filing of this report.

Additionally, the Company's operational plans include raising capital, if needed, by using the $13.1 million remaining availability under its at-the-market ("ATM") facility or other methods or forms of financings, subject to existing limitations. Under the ATM, we have the ability to control the timing and floor price at which capital is raised.

The actual amount of cash that we will need to execute our business strategy is subject to many factors, including, but not limited to, the costs associated with our manufacturing and transportation operations related to our concentrate business.

We may elect to raise capital in the future through one or more of the following: (i) equity and debt raises through the equity and capital markets, though there can be no assurance we will be able to secure additional capital or funding on acceptable terms, or if at all; and (ii) strategic transactions, including potential alliances and collaborations focused on markets outside the United States, as well as potential combinations (including by merger or acquisition) or other corporate transactions.

We believe our ability to fund our activities in the long term will be highly dependent upon (i) our ability to execute on the growth strategy of our hemodialysis concentrates business and maintain sales with existing customers, (ii) our ability to achieve sustained profitability, and (iii) our ability to identify, develop, in-license, or acquire new products in developing our renal care product portfolio. All of these strategies are subject to significant risks and uncertainties such that there can be no assurance we will be successful in achieving them. If we are unsuccessful in executing our business plan and we are unable to raise the required capital, we may be forced to curtail all of our activities and, ultimately, cease operations. Even if we are able to raise sufficient capital, such financings may only be available on unattractive terms, or result in significant dilution of stockholders’ interests and, in such event, the market price of our common stock may decline.

If the Company attempts to obtain additional debt or equity financing, the Company cannot assume such financing will be available on favorable terms, if at all. In addition, any debt financing is limited by the terms of our Securities Purchase Agreement with DaVita. Specifically, until DaVita owns less than 50% of its investment, the Company may only incur additional debt in the form of a purchase money loan, a working capital line of up to $5.0 million or to refinance existing debt, unless DaVita consents.

The Company is subject to certain covenants and cure provisions under its Loan and Security Agreement (the "Loan Agreement") with Innovatus Life Sciences Lending Fund I, LP. As of September 30, 2025, the Company was in compliance with all covenants. On January 2, 2024, the Loan Agreement was amended to include, among other things, an interest-only period for 30 months, or up to 36 months if certain conditions are met, and extend the maturity date to January 1, 2029 (See Note 15 to the accompanying condensed consolidated financial statements).

The global macroeconomic environment is uncertain, and could be negatively affected by, among other things, changes in U.S. trade policies, including tariffs and other trade restrictions or the threat of such actions, instability in the global capital and credit markets, recent bank failures in the United States, supply chain weaknesses, and instability in the geopolitical environment, including as a result of the Russian invasion of Ukraine, the Middle East conflict and other political tensions, and the occurrence of natural disasters and public health crises. Such challenges have caused, and may continue to cause, recession fears, rising interest rates, foreign exchange volatility and inflationary pressures. At this time, the Company is unable to quantify the potential effects of this economic instability on our future operations. Due to the rapidly evolving nature of the global situation, it is not possible to predict the extent to which these conditions could adversely affect the Company's liquidity and capital resources in the future.

On July 4, 2025, the U.S. enacted P.L. 119-21, a U.S. federal statute passed by the 119th United States Congress that includes tax and spending policies (the “Act”), which contains a broad range of tax reform provisions affecting businesses, including extending or reinstating certain provisions of the 2017 Tax Cuts and Jobs Act, tax relief measures, modifications of certain energy tax credits granted under the Inflation Reduction Act and limits on various tax deductions, among other key provisions. The Company evaluated the Act and concluded it will not have a material impact on its condensed consolidated financial statements.

Cash (Used In) Provided By Operating Activities

Net cash used in operating activities was $3.0 million for the nine months ended September 30, 2025 compared to net cash provided by operating activities of $3.3 million for the nine months ended September 30, 2024. The change in cash used in operating activities during the current period as compared to cash provided by operating activities in the prior period was primarily due to increases in (i) net loss of approximately $5.0 million and (ii) cash used in changes in current balance sheet accounts in the ordinary course of business of approximately $1.5 million, partially offset by (iii) non-cash adjustments of $0.3 million.

Cash Used In Investing Activities

Net cash used in investing activities was $4.4 million during the nine months ended September 30, 2025 compared to net cash used in investing activities of $4.5 million for the nine months ended September 30, 2024. Net cash used in investing activities during the nine months ended September 30, 2025 and 2024 was primarily driven by net cash payments from purchases and sales of our available-for-sale investments during each period of $4.0 million and $3.9 million, respectively.

Cash Provided By Financing Activities

Net cash provided by financing activities was $5.3 million during the nine months ended September 30, 2025 compared to net cash provided by financing activities of $4.6 million for the nine months ended September 30, 2024. Net cash provided by financing activities during the nine months ended September 30, 2025 was primarily due to the gross proceeds from the issuance of common stock in connection with the ATM facility of $7.8 million, as defined and described in Note 11 to the condensed consolidated financial statements, partially offset by the cash paid in connection with the Evoqua Asset Acquisition of $1.6 million, as defined and described in Note 5 to the condensed consolidated financial statements. Net cash provided by financing activities for the nine months ended September 30, 2024 was primarily due to the gross proceeds from the issuance of common stock in connection with the ATM facility of $6.4 million, partially offset by the cash paid in connection with the Evoqua Asset Acquisition of $1.0 million.

Contractual Obligations and Other Commitments

Due to the contract-intensive nature of the Company's business, the Company has been and may in the future become involved in disputes or legal actions with its contract counterparties, which could have a negative impact on the Company's business, results of operations or financial condition. See Note 13 to the condensed consolidated financial statements included elsewhere in this Form 10-Q for additional disclosures. There have been no other material changes from the contractual obligations and other commitments disclosed in Notes 14 and 15 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Critical Accounting Policies and Significant Judgments and Estimates

Our critical accounting policies and significant estimates are detailed in our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes in our critical accounting policies and estimates as compared to the critical accounting policies and estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Recently issued and adopted accounting pronouncements:

We have evaluated all recently issued accounting pronouncements and believe such pronouncements do not have a material effect our financial statements. See Note 3 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Per §229.305 of Regulation S-K, the Company, designated a Smaller Reporting Company as defined in §229.10(f)(1) of Regulation S-K, is not required to provide the disclosure required by this Item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure material information required to be disclosed in our reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and such information is accumulated and communicated to our management, including our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer) as appropriate, to allow timely decisions regarding required financial disclosure. In designing and evaluating the disclosure controls and procedures, we recognized that a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. Management was necessarily required to apply its judgment in evaluating the cost‑benefit relationship of possible controls and procedures.

Under the supervision of and with the participation of our management, including the Company’s Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures (as such terms are defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of September 30, 2025. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2025.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting in connection with the evaluation required by Rule 13a-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We may be involved in certain routine legal proceedings from time to time before various courts and governmental agencies. We cannot predict the final disposition of such proceedings. We regularly review legal matters and record provisions for claims considered probable of loss. The resolution of these pending proceedings is not expected to have a material effect on our operations or consolidated financial statements in the period in which they are resolved.

Item 1A. Risk Factors

Our business is subject to various risks, including those described in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2024 under "Item 1A - Risk Factors."

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits

The exhibits filed or furnished as part of this Quarterly Report on Form 10-Q are set forth on the Exhibit Index, which Exhibit Index is incorporated herein by reference.


EXHIBIT INDEX
Exhibit No.						Description








10.1						Employment Agreement, dated as of August 31, 2022, as amended, between the Company and Heather Hunter (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed on September 29, 2025).

31.1*						Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934





31.2*						Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934



32.1**						Certification pursuant to 18 U.S.C. Section 1350 and Rule 13a-14(b) of the Securities Exchange Act of 1934

32.2**						Certification pursuant to 18 U.S.C. Section 1350 and Rule 13a-14(b) of the Securities Exchange Act of 1934

101.INS*						XBRL Instance Document

101.SCH*						XBRL Taxonomy Extension Schema

101.CAL*						XBRL Taxonomy Extension Calculation Linkbase

101.DEF*						XBRL Taxonomy Extension Definition Database

101.LAB*						XBRL Taxonomy Extension Label Linkbase

101.PRE*						XBRL Taxonomy Extension Presentation Linkbase

104*						The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline XBRL (included as Exhibit 101)

*						Filed herewith
**						Furnished herewith and not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act

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 thereunto duly authorized.


	ROCKWELL MEDICAL, INC.
	(Registrant)

Date: November 12, 2025		/s/ Mark Strobeck
		Mark Strobeck, Ph.D. President, Chief Executive Officer and Director (Principal Executive Officer)

ROCKWELL MEDICAL, INC. 10-Q