NightHawk Biosciences(NHWK) - 2025 Q2 - Quarterly Report

Financial Performance - Revenue decreased by $0.6 million to $0.2 million for the three months ended June 30, 2025, compared to the same period in 2024, due to the cancellation or suspension of four customer contracts[159] - Revenue decreased by $3.9 million to $0.4 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to the loss of a major customer[166] - The company incurred a net loss of $15.6 million for the six months ended June 30, 2025[186] - The accumulated deficit reached approximately $302.0 million through June 30, 2025[175] Operational Status - The company is considered a "Shell Company" with nominal operations and assets, impacting its ability to attract investors[130] - The company has no current operations and does not expect to generate revenue for the remainder of 2025 and potentially longer[158] - The company has ceased operations and does not anticipate generating any revenue for the remainder of 2025[166][177] Financing Activities - The company issued 48,755,000 shares of common stock at a price of $0.04 per share, raising $1,942,650 in a private placement on April 30, 2025[151] - The company has entered into a twelve-month credit facility to borrow up to $5.0 million, with terms comparable to existing non-convertible promissory notes[149] - Net cash provided by financing activities was $6.2 million for the six months ended June 30, 2025, compared to $9.5 million for the same period in 2024[184] Compliance and Regulatory Issues - The company received a notice of default on September 9, 2025, due to failure to maintain an effective registration statement and other compliance issues[135] - The company’s common stock was delisted from the NYSE American and began trading on the OTC Markets Pink Limited exchange on April 22, 2025[154] Strategic Outlook - The company does not anticipate generating revenue unless a strategic transaction, such as a merger or asset acquisition, is consummated[158] - The company is exploring strategic alternatives to avoid bankruptcy or liquidation due to insufficient cash flow and ongoing losses[178][186] Asset Management - The company sold its CDMO biomanufacturing facility assets for $16,253,147 on December 10, 2025, following a public auction on November 24, 2025[129] - The outstanding amount of the December 2024 Secured Convertible Notes was $14,460,205 as of January 12, 2026, including principal, accrued interest, and other fees[138] Expense Management - Cost of revenues decreased by $1.2 million to $0.6 million for the six months ended June 30, 2025, attributed to lower production levels[167] - Research and development expenses decreased by $1.5 million to $6.0 million for the six months ended June 30, 2025, compared to the same period in 2024[168] - Selling, general and administrative expenses decreased by $3.0 million to $7.0 million for the six months ended June 30, 2025, due to cost-cutting measures[169]