Revenue Performance - Total revenue decreased to $14,597 for the three months ended September 30, 2025, compared to $16,866 for the same period in 2024, but increased to $49,581 for the nine months ended September 30, 2025, compared to $39,780 for the same period in 2024[63] - Product revenue decreased to $14,533 for the three months ended September 30, 2025, compared to $16,785 during the same period of 2024, while it increased to $49,369 for the nine months ended September 30, 2025, compared to $39,479 during the same period of 2024[63] Expenses - Research and development expense increased to $1,082 for the three months ended September 30, 2025, compared to $970 for the same period in 2024, and to $3,055 for the nine months ended September 30, 2025, compared to $2,746 for the same period in 2024[68] - Selling, general and administrative expense increased to $3,069 for the three months ended September 30, 2025, compared to $1,934 for the same period in 2024, and to $8,188 for the nine months ended September 30, 2025, compared to $5,321 for the same period in 2024[70] - Cost of revenue increased to $11,227 for the three months ended September 30, 2025, compared to $10,764 for the same period in 2024, and to $36,952 for the nine months ended September 30, 2025, compared to $26,358 for the same period in 2024[65] Cash Flow and Capital Expenditure - The net cash used in operating activities during the nine months ended September 30, 2025, was $(10,386), primarily due to increased accounts receivable and decreased accounts payable[73] - Total cash decreased to $429 for the nine months ended September 30, 2025, compared to $2,925 for the same period in 2024[73] - The company expects capital spending for 2025 to be between $0.1 million and $1 million, funded by profit from operations and existing loans[74] Tax and Financial Position - The company has federal net operating loss carryforwards for tax purposes of approximately $42 million as of December 31, 2024[75] Market and Operational Risks - Inflation has had an incremental impact on the company's costs of operations, with potential material effects in 2025 if price increases cannot be passed through[72] - The company has incurred losses since its incorporation but aims to achieve consistent profitability in the future[78] - There is a dependence on a limited number of key customers, which poses a risk of order cancellations[78] - The company faces challenges in obtaining working capital on acceptable terms[78] - Demand for Solésence products and advanced materials remains uncertain, impacting future sales[78] - The company has limited marketing experience with its Solésence product suite, which could affect market penetration[78] - Potential new governmental regulations regarding nanomaterials could increase compliance costs[78] - Business interruptions due to unexpected events, including public health crises, are a risk factor[78] - The company is subject to competitive pressures from other products and technologies in the market[78] - The ability to maintain an appropriate electronic trading venue for its securities is crucial for investor confidence[78] - Forward-looking statements are subject to various risks and uncertainties that could materially affect future results[78]
Solesence Inc(SLSN) - 2025 Q3 - Quarterly Report