Mainz Biomed(MYNZ) - 2025 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2025 was $537,080, a decrease of 40% compared to $893,991 in 2024[103] - Cost of revenue decreased by 54% to $147,288 in 2025 from $319,108 in 2024[104] - Gross profit decreased to $389,792 in 2025, with an improved gross margin of 73% compared to 64% in 2024[105] - Research and development expenses were $4,960,566 in 2025, down 15% from $5,839,033 in 2024[106] - Sales and marketing expenses decreased by 42% to $3,820,509 in 2025 from $6,581,333 in 2024[107] - General and administrative expenses were $5,107,535 in 2025, a decrease of 23% from $6,650,561 in 2024[108] Impairment and Losses - The company recorded an impairment loss on intangible assets of $2,640,280 in 2025 due to the closure of its subsidiary in Germany[110] Cash Flow and Liquidity - Cash used in operating activities improved to $10,979,587 in 2025 from $17,329,254 in 2024, a reduction of $6,349,667[114] - As of December 31, 2025, the company had $889,091 in cash and cash equivalents, down from $6,235,670 in 2024[112] - The company plans to fund its cash flow needs through current cash on hand and future debt and/or equity financings, including a completed $6 million preferred stock offering[120] Accounting and Estimates - The cumulative effect of the transition from IFRS to U.S. GAAP resulted in an adjustment to the opening accumulated deficit from $69,328,021 to $67,092,885, with a total adjustment of $2,235,136[134] - The Company prepares its financial statements in accordance with U.S. GAAP, requiring ongoing evaluation of estimates and judgments[124] - The provision for expected credit losses on trade receivables is estimated based on historical information and current economic trends, indicating sensitivity to changes in circumstances[130][131] - Significant estimates in the impairment test for indefinite-lived intangible assets include discount rates and revenue growth rates, which could materially affect the assessment of fair value[129] - The estimated useful lives of property and equipment are reviewed annually and may be adjusted based on physical wear and tear or obsolescence[125] - The Company applies judgment in estimating the fair value of financial instruments when there is no active market, which may impact the reported values[128] - The Company uses a Black-Scholes model to estimate the fair value of share-based payments, relying on historical stock price volatility[127] Going Concern and Financial Condition - The assessment of the Company's ability to continue as a going concern is critical, considering events or conditions that may create significant uncertainty[136] - The Company does not have any off-balance sheet arrangements that could materially affect its financial condition[132]