Mon, May 19, 9:21 PM (24 days ago)
**NovelStem International Corp. (NSMC) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** No revenue generated in Q1 2025, consistent with Q1 2024. - **Profit Margins:** Negative, with a net loss of $207,216,000 in Q1 2025, improving from a net loss of $303,280,000 in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $43,698,000 in Q1 2025, an improvement from $72,882,000 in Q1 2024. Net cash provided by financing activities was $41,000,000 in Q1 2025, compared to $275,000,000 in Q1 2024. - **Earnings Changes:** Net loss per share was $0.00 in Q1 2025, compared to $0.01 in Q1 2024. **Quarterly Performance Discussion:** - **Operating Expenses:** General and administrative expenses decreased by $88,732,000 in Q1 2025. - **Other Expenses:** Interest expense increased by $17,878,000 due to higher debt levels. - **Investment Impairment:** Full impairment loss recorded on the investment in NewStem due to liquidation and inability to raise funds. **Trends and Uncertainties:** - **Going Concern:** NovelStem faces substantial doubt about its ability to continue as a going concern due to significant accumulated deficits and the need for additional financing. - **Liquidity:** The company has been relying on short-term borrowings and related-party financing to fund operations. - **Future Operations Impact:** The company plans to monetize assets, including the sale of its interest in NetCo, to settle liabilities and continue operations. **Future Outlook:** - **Fundraising:** NovelStem will need to secure additional funds to continue operations and develop its technology. - **Asset Monetization:** The company is in the process of selling its interest in NetCo to settle litigation funding liabilities. - **Risk Factors:** The company faces risks related to its ability to raise funds, monetize assets, and develop profitable technology. **Ticker:** NSMC