Balance Labs Reports Improved Net Loss of $6,406 in Q1 2025

Balance Labs, Inc. has reported its financial results for the first quarter of 2025, revealing a net loss of $6,406, a significant improvement compared to a net loss of $116,943 during the same period in 2024. This reduction in loss, amounting to $110,537 or 95%, is primarily attributed to the cancellation of an accounts payable balance with a vendor, which resulted in a gain of $127,579 recognized as other income. The company did not report any revenue for the quarter, consistent with its previous fiscal periods.

In terms of expenses, Balance Labs recorded total operating expenses of $78,839 for the three months ended March 31, 2025, compared to $65,718 in the prior year, marking an increase of 20%. This rise was driven by higher professional fees, which increased by 56% to $25,035, reflecting increased legal and accounting costs. General and administrative expenses also saw a slight increase of 5%, totaling $4,262. The company’s accumulated deficit as of March 31, 2025, stood at $5,889,727, up from $5,883,321 at the end of 2024.

Balance Labs continues to face challenges in liquidity, with cash and cash equivalents decreasing to $3,040 from $13,199 at the end of 2024. The company reported a working capital deficiency of $5,077,512, slightly worsening from $5,071,106 in the previous quarter. The company utilized $22,659 in cash for operating activities during the first quarter, a decrease from $37,045 in the same period last year. The company’s management has indicated plans to seek additional capital to sustain operations over the next twelve months, although there is no assurance that such financing will be available.

The company has maintained its share count at 21,674,000 shares of common stock outstanding. Balance Labs has not engaged in any significant acquisitions or product launches during this period, focusing instead on its consulting services for start-up and development-stage businesses. The company aims to expand its client base, targeting two to three new clients by the end of 2025, and plans to enhance its marketing efforts through personal outreach and online channels.

Looking ahead, Balance Labs acknowledges substantial doubt regarding its ability to continue as a going concern, as highlighted by its independent auditors. The company is actively pursuing new client relationships and intends to formalize partnerships with subcontractors to enhance service offerings. However, the success of these initiatives remains uncertain, and the company may need to implement cost reductions or delay vendor payments if it fails to secure necessary funding.