Aclarion(US:ACON)2025-11-12 11:20Revenue Performance - Total revenues for the three months ended September 30, 2025, were $18,942, an increase of $4,535 or 31.5% compared to $14,407 for the same period in 2024, driven by the growing volume of NOCISCAN® reports sold in the UK market [133]. - Total revenues for the nine months ended September 30, 2025, were $57,251, an increase of $21,759 or 61.3% from $35,492 in 2024, driven by increased NOCISCAN® report sales in the UK [142]. Cost of Revenue - Total cost of revenue for the three months ended September 30, 2025, was $14,556, a decrease of $6,776 or 31.8% from $21,332 in 2024, primarily due to reduced hosting fees allocation and a change in revenue mix [134]. - Total cost of revenue for the nine months ended September 30, 2025, was $52,214, a decrease of $11,888 or 18.5% from $64,102 in 2024, due to reduced hosting fees allocation [143]. Expenses - Sales and marketing expenses for the three months ended September 30, 2025, were $632,409, an increase of $399,634 or 171.7% compared to $232,775 in 2024, largely due to the initiation of the Clarity trial [135]. - Research and development expenses for the three months ended September 30, 2025, were $302,037, an increase of $106,240 or 54.3% from $195,797 in 2024, driven by patent maintenance fees and expanded regulatory compliance activities [136]. - General and administrative expenses for the three months ended September 30, 2025, were $900,904, an increase of $40,443 or 4.7% compared to $860,461 in 2024, influenced by bonus accruals and higher D&O insurance costs [137]. - Sales and marketing expenses for the nine months ended September 30, 2025, totaled $1,278,759, an increase of $639,890 or 100.2% compared to $638,869 in 2024, primarily due to higher post-market clinical expenses [144]. - Research and development expenses increased by $133,719 or 21.0% to $770,659 for the nine months ended September 30, 2025, compared to $636,940 for the same period in 2024 [145]. - General and administrative expenses rose by $612,608 or 25.5% to $3,015,016 for the nine months ended September 30, 2025, driven by higher accruals under the 2025 incentive bonus program [146]. Net Loss - The net loss for the three months ended September 30, 2025, was $1,706,294, compared to a net loss of $1,366,176 for the same period in 2024, reflecting an increase of $340,118 [131]. - The net loss for the nine months ended September 30, 2025, was $5,344,487, compared to a net loss of $5,003,355 for the same period in 2024, an increase of $341,132 [141]. Cash Flow and Financing - Cash used in operating activities was $5,536,766 for the nine months ended September 30, 2025, an increase of $1,188,019 compared to $4,348,747 used in the same period in 2024 [164]. - The company raised an aggregate of $20,058,913 in gross proceeds through various offerings during the nine months ended September 30, 2025 [160]. - The public offering price for each Unit was $0.10, with net proceeds to the Company of $13.4 million from the offering [176]. - The Company may need to obtain substantial additional funds to achieve its business objectives, as developing medical technology products is expensive and uncertain [184]. Other Financial Information - Interest expense decreased to $0 for the nine months ended September 30, 2025, from $535,199 for the same period in 2024 due to the retirement of all unsecured non-convertible notes [147]. - The company recognized a gain of $73,272 during the nine months ended September 30, 2025, related to the retirement of an obligation associated with commitment shares [149]. - Cash used in investing activities decreased to $162,441 for the nine months ended September 30, 2025, from $261,220 in the same period in 2024 [167]. - The Company does not have any contractual obligations or off-balance sheet arrangements as of September 30, 2025 [187][188]. - The Company is classified as a "smaller reporting company," with a market value of stock held by non-affiliates less than $700 million and annual revenue below $100 million [191]. Shareholder Activities - As of March 31, 2025, all Pre-Funded Warrants have been exercised, with Series A and Series B Common Warrants having an exercise price of $0.20 [177]. - Approximately 14.7 million common shares were issued from Series B warrant exercises following the approval on March 5, 2025 [178]. - The Company redeemed all Series B Preferred Stock for a cash payment of $1,213,590 on January 22, 2025 [179]. - During the nine months ended September 30, 2025, holders converted 874 shares of C Preferred Stock into 6,211,618 shares of common stock [181]. - The Company received payments of $336,411 from the exercise of 5,685,049 Series C warrants during the nine months ended September 30, 2025 [182]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $4,900,996, including gross proceeds of $2,691,391 from a public offering [183].