Why did MGRM's EPS remain flat in 2024?

Monogram Technologies Inc. (MGRM) experienced a diluted EPS of -0.46 in 2024, which was a slight improvement from the previous year's -0.51. Despite this modest improvement, the company's net income continued to decline, with a net loss of $16.3 million for the year ended December 31, 2024, compared to $13.7 million in the previous year.

The diluted EPS remained flat in 2024 due to several factors:

1. **Strategic Focus on R&D**: Monogram has been actively investing in research and development (R&D), with R&D expenses amounting to $1.74 million in Q4 2024. This focus on innovation is a key reason for the company's financial losses, as it indicates that the company is prioritizing long-term growth over short-term profitability.

|code|Ticker|Name|Date|R&D Expenses|R&D Expenses YoY|market_code|
|---|---|---|---|---|---|---|
|MGRM|MGRM.O|Monogram|2024 Q1|2406754|24.08820391936072|186|
|MGRM|MGRM.O|Monogram|2024 Q2|2425629|-18.43376269203027|186|
|MGRM|MGRM.O|Monogram|2024 Q3|2214729|-16.88143778555564|186|
|MGRM|MGRM.O|Monogram|2024 Q4|1742888|-42.06003604276862|186|

2. **Increased General and Administrative Costs**: The company has reported an increase in net loss due to ongoing R&D expenses and general and administrative costs. These costs are likely contributing to the flat EPS, as they offset any potential gains from the company's operations.
3. **No Product Sales**: Monogram did not report any revenue for the quarter ending Q2 2024, which is a critical factor in the company's financial performance. The absence of revenue means that any expenses, including those related to R&D and G&A, are directly impacting the net income and, consequently, the EPS.
4. **Financial Position**: The company's cash and cash equivalents were approximately $15.7 million as of December 31, 2024. This financial position suggests that the company is managing its resources carefully, which may be limiting its ability to increase profitability in the short term.

In conclusion, Monogram's diluted EPS remained flat in 2024 due to a combination of strategic decisions, including a continued focus on R&D and an increase in general and administrative costs, despite no product sales and a net loss. The company's financial position, with a focus on raising capital to support operations and product development, also plays a role in maintaining a relatively stable EPS.