10-Q - Biostax Corp. (0001559356) (Filer)

Fri, Apr 11, 10:01 AM (38 days ago)

**Biostax Corp (BTAX) Q3 2024 Financial Summary** Biostax Corp, a drug development and commercialization company, reported significant financial challenges in Q3 2024. The company had $0 in cash on hand, negative working capital of $5,329,439, and an accumulated stockholders' deficit of $386,147,932. For the nine months ended September 30, 2024, Biostax reported a net loss attributable to common shareholders of $816,792, compared to $1,309,110 in the same period of 2023. **Revenue and Profit Margins:** - **Revenue:** No revenue was generated from operations for the three and nine months ended September 30, 2024 and 2023. - **Profit Margins:** The company reported a loss from operations of $112,341 for Q3 2024, compared to $352,323 in Q3 2023. For the nine months ended September 30, 2024, the loss from operations was $677,708, compared to $1,191,611 in the same period of 2023. **Cash Flow:** - **Operating Activities:** Net cash used in operating activities was $35,409 for the nine months ended September 30, 2024, compared to $568,460 in the same period of 2023. - **Financing Activities:** Net cash provided by financing activities was $5,624 for the nine months ended September 30, 2024, compared to $422,500 in the same period of 2023. **Earnings Changes:** - **Earnings per Share (EPS):** Basic and diluted EPS were $(0.00) for Q3 2024 and $(0.01) for the nine months ended September 30, 2024, compared to $(0.00) and $(0.02) in the same periods of 2023, respectively. **Quarterly Performance Discussion:** - **Operating Expenses:** Selling, general, and administrative expenses decreased by 57% in Q3 2024 compared to Q3 2023, primarily due to the reversal of accrued legal fees. Research and development expenses also decreased significantly, reflecting the impairment of intellectual property in 2023. - **Interest Expense:** Interest expense increased by 44% in Q3 2024 compared to Q3 2023, due to an increase in outstanding notes and consulting payments, as well as higher interest rates. **Trends and Uncertainties:** - **Going Concern:** The company's ability to continue as a going concern is uncertain due to its significant losses and lack of revenue. Management is seeking additional capital to fund operations and pursue its strategy of acquiring and developing late-stage drug assets. - **Contractual Obligations:** The company has several promissory notes in default, with significant amounts of accrued interest. The company's ability to meet its obligations is uncertain. **Future Operations Impact:** - **Capital Raising:** The company plans to fund future operations through additional private or public debt or equity offerings and may seek additional capital through arrangements with strategic partners. - **Operational Infrastructure:** The company aims to build out its operational infrastructure to generate revenue opportunities and grow shareholder value. **Conclusion:** Biostax Corp faces significant financial challenges and uncertainties. The company's ability to continue as a going concern is dependent on its ability to raise additional capital and successfully develop and commercialize its drug candidates. Investors should closely monitor the company's progress in securing additional funding and advancing its drug development pipeline.