Corporate Actions - The company executed a reverse stock split at a ratio of 1:30, reducing the number of outstanding shares from approximately 30.1 million to about 1 million shares [131][132]. - The merger agreement with 20/20 Biolabs includes a requirement for the company to raise a minimum of $4 million in concurrent financing, with up to $2 million allowed as debt [134]. - The company completed the acquisition of Elevai Skincare, Inc., involving the issuance of 38,308 shares of common stock and a cash payment of $56,525 contingent on product sales [136][137]. Financial Performance - As of March 31, 2025, the company reported a negative net working capital of $3,805,736 and a net loss from continuing operations of $1,505,867, with negative cash flow from operations of $752,953 for the three months ended March 31, 2025 [149][150][158]. - Gross sales for the three months ended March 31, 2025, were $534,943, resulting in net sales of $510,353 and a gross profit of $269,823 [153][154]. - Operating expenses increased by 29% to $1,776,574 for the three months ended March 31, 2025, compared to $1,380,345 in the same period of 2024 [153]. - Research and development expenses decreased by 54% to $196,912 in the first quarter of 2025, down from $429,420 in the same period of 2024 [156]. - The company completed the Elevai Acquisition on January 16, 2025, which generated approximately $2.5 million in revenue in 2024 [151][160]. - The net loss from continuing operations decreased by 58% from $3,553,162 in the first quarter of 2024 to $1,505,867 in the first quarter of 2025 [165]. Compliance and Regulatory Issues - The company received Nasdaq delisting notices due to failing to meet the minimum market value of listed securities requirement of $35 million and the minimum bid price requirement of $1 per share [141][142]. - The Nasdaq Hearings Panel granted the company an additional compliance period until September 2, 2025, to regain compliance with listing requirements [144]. - The company believes that the merger and reverse stock split may help regain compliance with Nasdaq's listing requirements, but there are no guarantees [145]. Economic Factors - Economic uncertainties, including geopolitical tensions and inflation, could materially affect the company's financial condition and results of operations [146]. Capital and Liquidity - Net cash provided by financing activities was $1,515,861 for the three months ended March 31, 2025, compared to cash used in financing activities of $195,726 for the same period in 2024 [167]. - The company is exploring raising additional capital and out-licensing certain research and development programs to enhance liquidity [152][160]. - As of March 31, 2025, the company had outstanding debt totaling $119,409 related to insurance premium financing [163]. - The company anticipates that revenue from the continued commercialization of its cosmetic products will assist in extending its cash runway [160].
ALPHA HEALTHCARE(ALPA) - 2025 Q1 - Quarterly Report