Impact Biomedical Inc(US:IBO)2025-11-07 21:30Revenue and Sales Performance - Total revenue for the three months ended September 30, 2025, was $18,000, compared to $0 for the same period in 2024, indicating a significant growth in biotech retail sales [10]. - The company reported a net loss of $(1,475,000) for the three months ended September 30, 2025, compared to a net income of $4,241,000 for the same period in 2024 [10]. - For the nine months ended September 30, 2025, Impact BioMedical reported a net loss of $17.1 million compared to a net income of $2.4 million for the same period in 2024 [13]. Operating Loss and Expenses - The company reported an operating loss of $948,000 for the three months ended September 30, 2025, compared to a loss of $1,127,000 for the same period in 2024, reflecting a 16.0% improvement [10]. - Research and development expenses for the nine months ended September 30, 2025, were $230,000, down from $386,000 for the same period in 2024, a decrease of 40.5% [10]. - General and administrative costs incurred by DSS on behalf of the Company were approximately $238,000 for the nine months ended September 30, 2025, up from $187,000 for the same period in 2024 [76]. Assets and Liabilities - Total current assets decreased from $2,448,000 as of December 31, 2024, to $917,000 as of September 30, 2025, a decline of approximately 62.5% [7]. - Total liabilities increased from $13,053,000 as of December 31, 2024, to $27,061,000 as of September 30, 2025, representing a 107.4% rise [8]. - The company’s total stockholders' equity showed a deficit of $(8,853,000) as of September 30, 2025, compared to a positive equity of $7,237,000 as of December 31, 2024 [9]. Cash Flow and Financial Position - Cash and cash equivalents decreased significantly from $1,999,000 as of December 31, 2024, to $12,000 as of September 30, 2025, a drop of 99.4% [7]. - Cash used in operating activities for the nine months ended September 30, 2025, was $1.99 million, slightly higher than the $1.87 million used in the same period of 2024 [13]. - The Company has incurred operating losses and negative cash flows from operating activities over the past two years, raising substantial doubt about its ability to continue as a going concern [52]. Technology and Development - The company has several proprietary technologies in development, including Linebacker™, which has potential applications in oncology and inflammatory disorders [17]. - Linebacker-1 and Linebacker-2 compounds have been licensed to ProPhase Laboratories for worldwide development and commercialization, potentially generating future milestone and royalty payments [19]. - Laetose™ technology could lead to a 30% reduction in sugar consumption and lower caloric intake, with potential applications in therapeutic administration for metabolic diseases [21]. Goodwill and Impairment - The Company recorded a goodwill impairment as of December 31, 2024, due to projected cash flows indicating fair value far below the carrying amount, driven by limited historical revenues and sustained operating losses [42]. - Goodwill impairment of $25,093,000 was recorded as of December 31, 2024, resulting in a balance of $0, driven by limited historical revenues and sustained operating losses [62]. Stock and Equity Transactions - The Company completed an initial public offering on September 16, 2024, raising $3,726,000 net of issuance costs [53]. - The Company raised approximately $3,726,000 in net proceeds from an initial public offering of 1,500,000 shares at a price of $3.00 per share, which began trading on September 16, 2024 [72]. - The Company converted its related party note payable into 31,939,778 shares of common stock as agreed with the lender [84]. Future Projections and Agreements - Future amortization of developed technologies is projected to be $287,000 in 2025 and increase to $1,138,000 in 2026 [66]. - The Company plans to merge with Dr Ashleys Limited, with the deal anticipated to close in the first quarter of 2026 [83]. - The Company entered into a License Agreement for the Equivir technology, with a royalty of 5.5% of net sales, and is responsible for 50% of development costs not exceeding $1,250,000 [79].