Company: SINT
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021930
Chunk: 26

Company: Sintx Technologies, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 8
Chunk 26
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, 2025, product revenue decreased $0.5 million, or 49%, compared to the same period in 2024. During
the nine months ended September 30, 2025, grant and contract revenue decreased $1.1 million, or 86% as compared to the same period in
2024.

Revenue
trends and strategic focus

The
decrease in total revenue for the two periods was primarily due to the Company’s ongoing strategic repositioning away from non-core,
low-margin OEM technical manufacturing contracts that did not support long-term profitability. This planned reduction in OEM-related
revenue is consistent with our corporate shift toward commercializing proprietary silicon nitride-based biomedical devices, which we
believe offer stronger margins, a more defensible competitive position, and better long-term value for shareholders.

While
this strategic realignment has led to a decline in reported revenue, we believe it is a necessary step in positioning
the Company for sustainable growth. During this transitional period, we continue to invest in the development and regulatory advancement
of silicon nitride-based orthopedic and surgical implants, as evidenced by the recently received 510(k) clearance for osteotomy wedges
used in foot and ankle fusion procedures. Additionally, we entered into a private label agreement to supply OsseoSculpt™, a next next-generation
biologic designed to complement the foot and ankle osteotomy wedges. We began recognizing commercial revenue from OsseoSculpt™ in
Q3 2025. We believe that these products will serve as key revenue drivers beginning in 2026.

Cost
of revenue and Gross profit

For
the three months ended September 30, 2025, cost of revenue decreased $0.1 million, or 45%, compared to the same period in 2024 primarily
due to the decrease in revenue mentioned above.

For
the nine months ended September 30, 2025, cost of revenue decreased $0.2 million, or 31%, compared to the same period in 2024 primarily
due to the decrease in revenue mentioned above.

Research
and development expenses

For
the three months ended September 30, 2025, research and development expenses increased $0.5 million, or 59%, compared to the same period
in 2024, primarily due to an increase in costs related to the Research Agreement (see Note 13).

For
the nine months ended September 30, 2025, research and development