Solesence Inc(SLSN) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $14.5 million, a decrease of 14.5% compared to $16.9 million in Q3 2024[9] - Net loss for Q3 2025 was $1.1 million, compared to a net income of $3.0 million in Q3 2024[9] - Gross profit for Q3 2025 was $3.4 million, a decline from $6.1 million in Q3 2024[9] - Product revenue for Q3 2025 was $14,533,000, a decrease of 13.4% from $16,785,000 in Q3 2024[22] - The company reported a net loss of $1,120,000 for Q3 2025, compared to a net income of $3,045,000 in Q3 2024[22] - Adjusted EBITDA for the nine months ended September 30, 2025, was $3,275,000, down 49.8% from $6,532,000 in the same period of 2024[22] Margins and Expenses - Gross margin in Q3 2025 was 23%, down from 36% in the same period last year[9] - Research and development expenses for Q3 2025 were $1.1 million, compared to $970,000 in Q3 2024[21] - Selling, general and administrative expenses increased to $3.1 million in Q3 2025 from $1.9 million in Q3 2024[21] - Research and development expenses for Q3 2025 totaled $1,082,000, an increase of 11.5% from $970,000 in Q3 2024[22] - Selling, general and administrative expenses for Q3 2025 were $3,069,000, up 58.7% from $1,934,000 in Q3 2024[22] - Interest expense increased to $339,000 in Q3 2025 from $153,000 in Q3 2024[22] Assets and Liabilities - Total current assets increased to $32.8 million as of September 30, 2025, from $29.3 million at the end of 2024[17] - Total liabilities decreased to $36.8 million as of September 30, 2025, from $35.1 million at the end of 2024[17] Strategic Focus - The company is focused on expanding its product offerings in skin care, sun care, and color cosmetics despite a challenging market environment[3] Other Income and Tax Provisions - The company recorded other income of $1,234,000 for the nine months ended September 30, 2025, compared to no other income in the same period of 2024[22] - The provision for income taxes for the nine months ended September 30, 2025, was $390,000, while there was no provision in the same period of 2024[22]