KRMD · CIK 0000704440
What KORU Medical Systems, Inc. told the SEC could break it.
KORU Medical's disclosures cluster on concentration at both ends of its business. It sells largely through a handful of distributors — nine made up about 77% of 2025 net revenue, with one U.S. distributor alone around 29% — so a shift or loss among them would materially hit revenue. Its supply is just as concentrated: all the components in its products are single-sourced, partly for FDA-validation reasons, and all consumables subassemblies come from a single contract manufacturer, Command, with that consumables production based in Nicaragua. On top of that, after IEEPA tariffs were struck down, a new across-the-board Section 122 tariff of up to 15% has already pressured its gross margin and could further raise import and material costs.
4 self-disclosed vulnerabilities, pulled from its own filings — each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- nine distributors = ~77% of revenue; one U.S. distributor ~29%high
KORU sells mostly through a small number of distributors — nine accounted for ~77% of 2025 net revenue and a single U.S. distributor ~29% — so changes in their purchasing patterns or loss of one would materially affect revenue.
“As of December 31, 2025, these nine distributors comprised approximately 77% of our net revenues with one of our U.S. distributors contributing approximately 29%.”
SEC filing →As of 2026
Sole-source dependency
- all components single-sourced; consumables subassemblies sole-sourced from Commandhigh
All components used in KORU's products are sourced single-source (partly for FDA validation reasons), and all consumables subassemblies come from a single CMO (Command); a supply interruption would be hard to replace quickly.
“All of the components that go into the manufacturing of our products and accessories are sourced from third-party suppliers on a single source basis.”
SEC filing →As of 2026
Geographic concentration
- consumables manufactured in Nicaragua (Command) plus Mahwah, NJmedium
KORU's products are manufactured in Nicaragua (by Command) and Mahwah, NJ, with finished goods staged through Miami; concentration of consumables production in Nicaragua exposes it to climate, cross-border and political disruption.
“Our products are currently manufactured in Nicaragua and Mahwah, NJ, and stored in warehouse space at our corporate headquarters in Mahwah, NJ.”
SEC filing →As of 2026
Regulatory & policy
- U.S. tariffs (Section 122 up to 15%) raising import/material costsmedium
After IEEPA tariffs were struck down, a new across-the-board tariff of up to 15% under Section 122 was implemented; tariff-related charges already pressured KORU's 2025 gross margin and could further raise import and material costs.
“Shortly thereafter, the Trump Administration announced and implemented a new across-the-board tariff of up to 15% on certain imports pursuant to Section 122 of the Trade Act of 1974. These actions have resulted in changes to applicable U.S. tariff rates and may continue to create uncertainty regarding U.S. trade policy, which could materially affect import costs, supply chains, pricing, and overall operating results.”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings — including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
Command Medical Products, Inc.
“Command currently provides subassemblies for all of our consumables (needle and tubing sets), and manufactures, assembles and packages approximately 85% of our consumables.”
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