Kirin

Third-Quarter Net Revenue of $2.4 Million; Active Customer Sites Increase 18% YoY to a New Record Level SOUTH ORANGE, NJ, Nov. 02, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Nephros, Inc. (Nasdaq: NEPH), a leading water technology company providing filtration solutions to the medical and commercial markets, today announced financial results for the third quarter ended September 30, 2022. Financial HighlightsWater Filtration Business Segment Highlights* Net revenue from continuing operations of $2.4 million, a decrease of 7%Net loss from continuing operations of $1.1 million, compared to $0.7 millionAdjusted EBITDA loss from continuing operations of ($0.2 million), compared with ($0.3 million) Consolidated Highlights* Net revenue from continuing operations of $2.4 million, a decrease of 7%Net loss from continuing operations of $1.3 million, compared to $0.8 millionAdjusted EBITDA loss from continuing operations of ($0.3 million), compared to ($0.4 million) *Stated performance is relative to same period prior year (third quarter of 2021) Andy Astor, President and Chief Executive Officer, commented, “Our third-quarter revenue was not at the level we anticipated, representing a decrease of 7% year-over-year. A significant contributor to the revenue growth shortfall was approximately $300,000 of price increase-related pull-ahead business in Q2.” Mr. Astor continued, “Of promising note, Active Customer Sites (ACS) grew to a record 1,391, a year-over-year increase of 18%. Our work to expand domestic sales coverage will support further growth and development of our customer base. Additionally, we agreed to sell our Pathogen Detection Systems (PDS) business to maximize its value and reduce near-term expenses by approximately $300,000 per quarter. This strategic action bolsters our financial position and offers the potential for new future revenue with a profit-sharing provision. Overall, we believe our cash position stands in good condition with no need to raise capital in the foreseeable future, and we remain confident in our capacity to attain positive cash flow by mid-2023.” Consolidated Financial Performance for the Quarter Ended September 30, 2022Net revenue from continuing operations for the quarter ended September 30, 2022, was $2.4 million, compared to $2.6 million in the corresponding period in 2021, a decrease of 7%. Net loss from continuing operations for the quarter ended September 30, 2022, was $1.3 million, compared to $0.8 million during the same period in 2021. The increase in net loss from continuing operations was driven by changes to inventory reserve estimates. Adjusted EBITDA loss from continuing operations for the quarter ended September 30, 2022, was ($0.3 million), compared to ($0.4 million) during the same period in 2021. Cost of goods sold for the quarter ended September 30, 2022 was $1.6 million, compared with $1.2 million for the quarter ended September 30, 2021, an increase of 35%. Gross margins for the quarter ended September 30, 2022 were 32%, compared with 53% in the same period in 2021. The increase in cost of goods sold and decrease in gross margin were driven primarily by a non-recurring charge of approximately $600,000 associated with slow-moving inventory management estimates. Research and development expenses for the quarter ended September 30, 2022 were $0.3 million, compared with $0.4 million during the quarter ended September 30, 2021. Depreciation and amortization expenses for the quarter ended September 30, 2022 were approximately $48,000, compared with approximately $49,000 for the corresponding period 2021. Selling, general and administrative expenses for the quarter ended September 30, 2022 were flat from the same period in 2021 at $1.7 million. As of September 30, 2022, Nephros had cash and cash equivalents of $3.9 million on a consolidated basis, compared with $4.2 million at the end of the second quarter. Adjusted EBITDA Definition and Reconciliation to GAAP Financial MeasuresAdjusted EBITDA loss from continuing operations is calculated by taking net loss from continuing operations calculated in accordance with generally accepted accounting principles (“GAAP”) and excluding all interest-related expenses and income, tax-related expenses and income, non-recurring expenses and income, and non-cash items, including depreciation, amortization and non-cash compensation. The following table presents a reconciliation of Adjusted EBITDA loss from continuing operations to net loss from continuing operations, the most directly comparable GAAP financial measure, for the third quarter of the 2022 and 2021 fiscal years for both the Nephros Water Filtration Business Segment and consolidated results: Three Months Ended Sept 30, Water Filtration Business Segment20222021 (in $ thousands) Reconciliation of net loss from continuing operations: Net loss from continuing operations (1,078) (730) Adjustments: Depreciation of property and equipment 12 7 Amortization of other assets 44 46 Interest expense 4 10 Interest income (4) (2) Non-cash stock-based compensation 206 257 Other non-cash items: Increase in inventory reserve 665 86 Loss on foreign currency transactions - 4 Adjusted EBITDA loss from continuing operations (151) (322) Three Months Ended Sept 30, Consolidated Results20222021 (in $ thousands) Reconciliation of net loss from continuing operations: Net loss from continuing operations (1,250) (802) Adjustments: Depreciation of property and equipment 12 7 Amortization of other assets 44 46 Interest expense 4 10 Interest income (4) (2) Non-cash stock-based compensation 225 257 Other non-cash items: Increase in inventory reserve 665 86 Loss on foreign currency transactions - 4 Adjusted EBITDA loss from continuing operations (304) (394) Nephros believes that Adjusted EBITDA loss from continuing operations provides useful information to management and investors regarding certain financial and business trends relating to Nephros’ financial condition and results of operations. Management does not consider Adjusted EBITDA loss from continuing operations in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Adjusted EBITDA loss from continuing operations is that it excludes significant expenses and income that are required by GAAP to be recognized in Nephros’ consolidated financial statements. In addition, Adjusted EBITDA loss from continuing operations is subject to inherent limitations as it reflects the exercise of judgments by management about which expenses and income are excluded or included in determining Adjusted EBITDA loss from continuing operations. In order to compensate for these limitations, management presents Adjusted EBITDA loss from continuing operations in connection with net loss from continuing operations, the most directly comparable GAAP financial measure. Nephros urges investors to review the reconciliation of Adjusted EBITDA loss from continuing operations to net loss from continuing operations and not to rely on any single financial measure to evaluate the business. Conference Call Today at 4:30pm ETNephros will host a conference call today at 4:30pm Eastern Time, during which management will discuss Nephros’ financial results and provide a general business overview. Participants may dial into the call as follows: Domestic access: 1 (844) 808-7106 International access: 1 (412) 317-5285 Upon joining, please ask to be joined into the Nephros conference call. An audio archive of the call will be available shortly after the call on the Nephros Investor Relations page. Alternatively, a replay of the call may be accessed until November 9th, 2022 at 1 (877) 344-7529 or 1 (412) 317-0088 for international callers and entering replay access code: 1478576. About NephrosNephros is committed to improving the human relationship with water through leading, accessible technology. We provide innovative water filtration products and services, along with water-quality education, as part of an integrated approach to water safety. Nephros goods serve the needs of customers within the healthcare and commercial markets, offering both proactive and emergency solutions for water management. For more information about Nephros, please visit us at nephros.com. Forward-Looking StatementsThis release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding Nephros’ expected future revenue, its belief that Active Customer Sites are a leading indicator of revenue growth, its potential to realize future revenue from the sale of its PDS business, its plans regarding capital raising, expectations on achieving positive cash flow and the timing thereof and other future financial performance, and other statements that are not historical facts, including statements that may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including the impact of the ongoing COVID-19 pandemic, inflationary factors and general economic conditions, changes in business and competitive conditions, the availability of capital when needed, dependence on third-party manufacturers and researchers, regulatory reforms, and uncertainties in litigation or investigative proceedings. These and other risks and uncertainties are detailed in Nephros’ reports filed with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021, which it may update in Part II, Item 1A – Risk Factors in its Quarterly Reports on Form 10-Q that it has filed or will file hereafter. Nephros does not undertake any responsibility to update the forward-looking statements in this release. Investor Relations Contacts:Kirin Smith, President PCG Advisory, Inc. (646) 823-8656 ksmith@pcgadvisory.com Andy Astor, CEO Nephros, Inc. (201) 345-0824 andy.astor@nephros.com NEPHROS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) ASSETS September 30, 2022 December 31, 2021 Current assets: Cash and cash equivalents $3,940 $6,973 Accounts receivable, net 1,374 1,641 Inventory 3,488 4,462 Prepaid expenses and other current assets 186 207 Current assets held for sale - 1,837 Total current assets 8,988 15,120 Property and equipment, net 128 72 Lease right-use-of assets 404 614 Intangible assets, net 433 465 Goodwill 759 759 License and supply agreement, net 435 536 Other assets 58 84 TOTAL ASSETS $11,205 $17,650 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of secured note payable 141 248 Accounts payable 779 1,334 Accrued expenses 272 444 Current portion of lease liabilities 229 313 Current liabilities associated with assets held-for-sale - 123 Total current liabilities 1,421 2,462 Secured note payable, net of current portion - 95 Equipment financing, net of current portion 2 4 Lease liabilities, net of current portion 201 340 TOTAL LIABILITIES 1,624 2,901 COMMITMENTS AND CONTINGENCIES (Note 15) STOCKHOLDERS' EQUITY: Preferred stock, $.001 par value; 5,000,000 shares authorized at September 30, 2022 and December 31, 2021; no shares issued and outstanding at September 30, 2022 and December 31, 2021. - - Common stock, $.001 par value; 40,000,000 shares authorized at September 30, 2022 and December 31, 2021; 10,303,818 and 10,258,444 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively. 10 10 Additional paid-in capital 148,275 147,346 Accumulated other comprehensive income - 64 Accumulated deficit (141,983) (135,725) Subtotal 6,302 11,695 Noncontrolling interest 3,279 3,054 TOTAL STOCKHOLDERS' EQUITY 9,581 14,749 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $11,205 $17,650 NEPHROS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended September 30, 2022 2022 Net revenue: Product revenues $2,399 $2,558 Royalty and other revenues 10 20 Total net revenues 2,409 2,578 Cost of goods sold 1,647 1,218 Gross margin 762 1,360 Operating expenses: Research and development 252 395 Depreciation and amortization 48 49 Selling, general and administrative 1,743 1,718 Total operating expenses 2,043 2,162 Loss from continuing operations -1,281 -802 Other (expense) income: Interest expense -4 -10 Interest income 4 2 Extinguishment of PPP Loan - - Other income (expense), net 31 8 Total other (expense) income: 31 - Loss from continuing operations -1,250 -802 Net loss from discontinued operations -1,904 -360 Net loss -3,154 -1,162 Less: net loss due to undeclared deemed dividend attributable to continuing noncontrolling interest -77 -60 Net loss attributable to Nephros Inc. shareholders -3,231 -1,222 Net loss per common share , basic and diluted from continuing operations -0.12 -0.08 Net loss per common share, basic and diluted, from discontinued operations -0.18 -0.03 Net loss per common share, basic and diluted $-0.30 $-0.11 Net loss per common share, basic and diluted, attributable to continuing noncontrolling interest -0.01 -0.01 Net loss per common share, basic and diluted attributable to Nephros Inc. shareholders $ -0.31 $-0.12 Weighted average common shares outstanding, basic and diluted 10,303,818 10,044,745 Comprehensive loss: Net loss $ -3,154 $ -1,162 Other comprehensive income (loss), foreign currency translation adjustments, net of tax - -4 Comprehensive loss -3,134 -1,166 Comprehensive loss attributable to continuing noncontrolling interest -77 -60 Comprehensive loss attributable to Nephros, Inc. shareholders $-3,231 $-1,226

SOUTH ORANGE, NJ, Sept. 28, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire -- Nephros, Inc. (Nasdaq: NEPH), a leading water technology company providing filtration and pathogen detection solutions to the medical and commercial markets, today announced it has shipped 3,000 commercial water filters as part of its ongoing annual contract with Donastar Enterprises LLC and Tractor Beverage Co. in service of a national chain of fast-casual restaurants. “Earlier this year we established ourselves as an approved vendor for a national and widely recognized Quick Service Restaurant (QSR) chain. The completion of this initial delivery is an important milestone in our continuing relationship, and a marker of success for the Nephros commercial water filtration business,” said Andy Astor, President and Chief Executive Officer. “The initial results of our partnerships with Donastar and Tractor are indicative of both positive momentum and high potential for additional national contracts. We look forward to developing even greater opportunities as our business relationships progress.” About NephrosNephros, Inc. is a company committed to improving the human relationship with water through leading, accessible technology. We provide innovative filtration and pathogen detection as part of an integrated approach to water safety that combines science, solutions, and support services. Nephros products serve the needs of customers within the healthcare and commercial markets, offering both proactive and emergency responses for water management. For more information about Nephros, please visit nephros.com. About Donastar Enterprises LLCDonastar is a primary provider of foodservice and beverage equipment service as well as water filtration systems. With over 500 service partners and thousands of trained technicians, we support operators all throughout the United States to help them provide the ideal product. We service restaurants, convenience stores, movie theaters, grocery stores, government facilities, schools & universities, entertainment venues, long term care facilities, residential properties, hotels & casinos and more. For more information, please visit donastar.com. About Tractor Beverage Co. Founded with a mission to create better beverages for all, Tractor Beverage Company is the first and only Certified Organic, Non-GMO full line beverage solution for foodservice. Tractor's handcrafted drinks feature clean ingredients that deliver on taste, functionality and an innovative consumer experience. Tractor's vision is to use its beverage platform to expand organic farm practices—and, in turn, lead the way to a more sustainable and flourishing future for restaurants, consumers, and farmers. Tractor was named to Fast Company's prestigious annual list of the World's Most Innovative Companies in 2021. In 2022, Tractor Beverage Company ranked No. 216 on the Inc. 5000 list and No. 10 in the Food and Beverage category in the publication’s prestigious list of the fastest-growing private companies in America. For more information, please visit drinktractor.com or follow along on Instagram at @drinktractor. Forward-Looking StatementsThis release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are provided under the protection of the safe harbor for forward-looking statements provided by such law. These forward-looking statements are subject to various risks and uncertainties. Such statements include statements regarding Nephros’s expectations concerning the future success of its commercial water filtration business, future revenue from that business and its ability to obtain additional contracts to supply QSR chains and other national end customers, and other statements that are not historical facts, including statements that may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including the impact of the ongoing COVID-19 pandemic, changes in business, economic and competitive conditions, Nephros’s ability to obtain market acceptance of its products, the availability of capital when needed, dependence on third-party manufacturers and researchers, regulatory reforms. These and other risks and uncertainties are detailed in Nephros’s most recent Annual Report on Form 10-K and such other reports filed with the U.S. Securities and Exchange Commission. Nephros does not undertake any responsibility to update the forward-looking statements in this release to reflect subsequent events or circumstances. Investor Relations Contacts:Kirin Smith, President PCG Advisory, Inc. (646) 823-8656 ksmith@pcgadvisory.com Andy Astor, CEO Nephros, Inc. (201) 345-0824 andy.astor@nephros.com

SOUTH ORANGE, NJ, Sept. 08, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Nephros, Inc. (Nasdaq: NEPH), a leading water technology company providing filtration and pathogen detection solutions to the medical and commercial markets, today announced the appointment of Joe Harris to its Board of Directors. “We are excited that Joe is joining our board,” said Andy Astor, President and Chief Executive Officer of Nephros. “He brings years of financial, sales, and marketing acumen to the board, with experience in both large and small healthcare ventures.” “I am thrilled to join the Nephros board,” said Joe Harris. “I believe Nephros is at an exciting point as they continue to focus on sales momentum and continued growth. With over 20 years of sales management experience in healthcare with large organizations and start-ups, I look forward to helping the company build on its foundation and achieve greater success.” Joe Harris is currently the Midwest, Sales Director at Murj. Previous positions have included East, Areas Sales Director at HeartFlow, Inc., Midwest Regional Sales Director at BIOTRONIK, and Regional Sales Manager at Boston Scientific. Joe is also a U.S. Army veteran. He received his B.S. in Systems Engineering Economics from the United States Military Academy at West Point, and his MBA in Marketing Finance from the University of Michigan. About Nephros Nephros, Inc. is a company committed to improving the human relationship with water through leading, accessible technology. We provide innovative filtration and pathogen detection as part of an integrated approach to water safety that combines science, solutions, and support services. Nephros products serve the needs of customers within the healthcare and commercial markets, offering both proactive and emergency responses for water management. For more information about Nephros, please visit nephros.com. Forward-Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are provided under the protection of the safe harbor for forward-looking statements provided by such law. These forward-looking statements are subject to various risks and uncertainties. Such forward-looking statements include statements regarding Nephros’s expected growth in revenue and financial performance, as well as other statements that are not historical facts. These statements may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including the impact of the ongoing COVID-19 pandemic, changes in business, economic and competitive conditions, Nephros’s ability to obtain market acceptance of its products, the availability of capital when needed, dependence on third-party manufacturers and researchers, regulatory reforms. These and other risks and uncertainties are detailed in Nephros’s most recent Annual Report on Form 10-K and such other reports filed with the U.S. Securities and Exchange Commission. Nephros does not undertake any responsibility to update the forward-looking statements in this release to reflect subsequent events or circumstances. Investor Relations Contacts: Kirin Smith, PresidentPCG Advisory, Inc.(646) 823-8656ksmith@pcgadvisory.com Andy Astor, CEONephros, Inc.(201) 345-0824andy.astor@nephros.com