Financial Performance - For the three months ended September 30, 2025, net sales decreased by $195,249, or 24%, to $627,747, while gross profit increased by $82,641, or 46%, to $261,734 due to a decrease in cost of sales by $277,889, or 43%[131][132] - For the nine months ended September 30, 2025, net sales decreased by $90,515, or 3%, to $2,524,536, while gross profit decreased by $188,014, or 29%, to $463,201, primarily due to a one-time inventory transaction[131][134] - Operating loss for the three months ended September 30, 2025, increased by $236,923, or 7%, to $3,803,465, and for the nine months ended September 30, 2025, increased by $1,871,291, or 19%, to $11,950,469[138] - The accumulated deficit as of September 30, 2025, was approximately $32.33 million, with an operating loss of approximately $11.95 million for the nine months ended September 30, 2025[144] Expenses - Selling, general and administrative (SG&A) expenses increased by $319,564, or 9%, for the three months ended September 30, 2025, and by $1,683,277, or 16%, for the nine months ended September 30, 2025[135] - Other expenses for the three months ended September 30, 2025, increased to $686,361, a rise of $756,809, while for the nine months, it surged to $9,157,369 from $23,392, primarily due to merger-related expenses[140][141] Capital and Financing - The company entered into an equity line of credit agreement in February 2025, providing for up to $80 million in potential capital, and had raised gross proceeds of $741,937 by issuing 767,500 shares under this agreement as of September 30, 2025[146] - A definitive agreement was made to acquire Woori IO Co., Ltd. for newly issued OSRK shares worth KRW15 billion (~$10.5 million), enhancing product development and commercialization capabilities[129] Research and Development - The company expects to incur R&D expenses of $2.5 million to $3.0 million per quarter starting in 2026, potentially increasing to $5.0 million to $6.0 million per quarter[137] Compliance and Regulations - The company received a notification from Nasdaq regarding non-compliance with listing rules due to a closing bid price below $1.00 per share for 30 consecutive business days, with a grace period until March 4, 2026, to regain compliance[124][125] - The holders of founder shares and other equity securities are entitled to registration rights, including two demands for registration under the Securities Act[152] Accounting and Reporting - Management has not identified any critical accounting estimates that could materially differ from actual results[153] - The company qualifies as a smaller reporting company and is not required to provide additional market risk disclosures[154]
Bellevue Life Sciences Acquisition (BLAC) - 2025 Q3 - Quarterly Report