Scorpius Holdings(US:SCPX)2026-01-12 21:31Revenue and Operations - The company generated minimal revenue of $0.2 million for the three months ended June 30, 2025, a decrease of $0.6 million 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 has ceased operations as of the filing date of the Quarterly Report, with no current business activities being conducted [131]. - The company does not expect to generate revenue unless a strategic transaction, such as a merger or asset acquisition, is consummated [158]. - The company has ceased operations and does not anticipate generating any revenue for the remainder of 2025 [166][177]. Financial Position - 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]. - The company received a notice of default on September 9, 2025, due to failure to maintain an effective registration statement and other compliance issues, leading to $19,376,084 being due under the December 2024 Secured Convertible Notes [135][137]. - As of June 30, 2025, the company had approximately $0.5 million in cash and cash equivalents, which decreased to less than $0.1 million by January 12, 2026 [174][189]. - The accumulated deficit reached approximately $302.0 million through June 30, 2025 [175]. Expenses and Losses - 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]. - The company incurred a net loss of $15.6 million for the six months ended June 30, 2025 [186]. Strategic Actions - The company sold its CDMO biomanufacturing facility assets for $16,253,147 on December 10, 2025, resulting in nominal operations and assets, classifying it as a "Shell Company" [129][130]. - The company has entered into a twelve-month credit facility to borrow up to $5.0 million, with terms similar to existing non-convertible promissory notes [149]. - The company anticipates potential bankruptcy or liquidation if it cannot secure financing or a strategic alternative [158]. - The company is exploring strategic alternatives to raise capital and avoid bankruptcy [178][186]. Stock and Compliance - 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’s common stock was delisted from the NYSE American on May 1, 2025, due to non-compliance with listing standards and began trading on the OTC Markets Pink Limited exchange [153][155].