Company: MDXG
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001376339-25-000045
Chunk: 3

Company: MIMEDX GROUP, INC.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 2
Chunk 3
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 EPIEFFECT randomized clinical trial along with ongoing investments in the development of future products in our pipeline.

Amortization of Intangible Assets

Amortization expense related to intangible assets was $0.1 million for the three months ended March 31, 2025, compared to  $0.2 million for the three months ended March 31, 2024, a decrease of $0.1 million or 47.6%. The decrease is due to certain intangible assets being fully amortized.

Interest Income (Expense), Net

Interest income, net was $0.5 million for the three months ended March 31, 2025 compared to net interest expense of $1.7 million for the three months ended March 31, 2024. The three months ended March 31, 2024 reflected loss on extinguishment of debt of $1.4 million resulting from the repayment and termination of a previous loan agreement. The remaining difference was driven by year-over-year decreases in outstanding borrowings and interest rates on outstanding borrowings, as well as improvements to our treasury management.

Income Tax Provision Expense

The effective tax rates for the Company were 18.5% and 20.6% for the three months ended March 31, 2025 and March 31, 2024, respectively. The effective tax rates in each period were favorably impacted by vestings of restricted stock.

Discussion of Cash Flows

Operating Activities

Net cash provided by operating activities from continuing operations during the three months ended March 31, 2025 was $5.3 million, compared to $6.8 million for the three months ended March 31, 2024. The change was primarily the result of lower collections and greater expenses during the three months ended March 31, 2025. 

Investing Activities

Net cash used for investing activities during the three months ended March 31, 2025 was $0.4 million, compared to $6.0 million for the three months ended March 31, 2024. Activity for the three months ended March 31, 2024 reflects our $5.0 million investment to expand our product portfolio through the TELA and Regenity agreements. There was no equivalent activity during 2025. The remaining difference reflects a year-over-year decrease in capital expenditures.

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Financing Activities

Net cash used for financing activities during the three months ended March 31, 2025 was $2.9 million