Qualigen Therapeutics(US:QLGN)2026-03-30 10:21Financial Performance - Total expenses increased from $5.76 million in 2024 to $13.20 million in 2025, representing a 129% increase[157]. - The net loss attributable to shareholders increased from $6.35 million in 2024 to $19.53 million in 2025, marking a 208% increase[157]. - The company experienced a loss of approximately $3.59 million on digital assets in 2025, with no digital assets held in 2024[170]. - The company expects to continue incurring net losses and negative cash flow from operations, raising substantial doubt regarding its ability to continue as a going concern[179]. Expenses Breakdown - General and administrative expenses rose from $4.20 million in 2024 to $8.82 million in 2025, primarily due to a $1.4 million increase in investor relation fees and a $3.0 million increase in consultant fees[158]. - Research and development expenses decreased significantly from $1.20 million in 2024 to $0.18 million in 2025, a reduction of approximately 85%[159]. - Credit loss expense for short-term note receivable surged from $0.36 million in 2024 to $4.20 million in 2025, attributed to Marizyme's debt increasing from $2.4 million to $4.9 million[160]. - Interest expense increased to $0.99 million in 2025 from $0.91 million in 2024, due to higher interest rates on short-term promissory notes[167]. Cash Flow and Financing Activities - Net cash used in operating activities was $7.0 million for the year ended December 31, 2025, primarily due to a loss from continuing operations of $16.9 million[191]. - Net cash used by investing activities was approximately $15.8 million in 2025, primarily due to purchases of digital assets totaling $16.5 million[193]. - Net cash provided by financing activities was $41.0 million in 2025, resulting from the issuance of preferred shares amounting to $38.9 million[195]. - The company raised approximately $45.7 million in new equity during the year ended December 31, 2025, compared to $9.0 million in 2024, highlighting a significant increase in financing activities[180]. Stock and Debt Transactions - Following a reverse stock split on November 5, 2024, the outstanding common stock increased by approximately 192% due to conversions of Series B Preferred Stock[154]. - The company recognized a gain of approximately $56,000 on the voluntary conversion of convertible debt into common stock during the year ended December 31, 2024, with a fair value of approximately $674,000 for 58,378 shares issued at a weighted average share price of $13.00[171]. - A loss on debt extinguishment of approximately $57,000 was recorded in 2024, primarily due to the repayment of the 2024 Alpha Debenture, resulting in a net loss of approximately $68,000 offset by a gain of approximately $13,000 from the issuance of Series A-2 Preferred Stock[172]. - The company issued 45,496 shares of common stock with a fair value of approximately $903,000 for monthly redemptions of $660,000 principal, resulting in a loss of approximately $209,000 during the year ended December 31, 2024[173]. - The company settled $395,000 of outstanding accounts payable for a gain of approximately $348,000 in 2024[174]. Financial Position - As of December 31, 2025, the company had approximately $19.3 million in cash and an accumulated deficit of $140.0 million, indicating a weak financial position[177].