Balance Labs Reports Increased Net Loss and Declining Assets in Q2 2025

Balance Labs, Inc. has reported its financial results for the second quarter and first half of 2025, revealing a net loss of $146,142 for the three months ending June 30, 2025, compared to a loss of $100,700 in the same period of 2024. This represents an increase in losses of 45% year-over-year. For the six months ended June 30, 2025, the company reported a net loss of $152,548, a decrease from a loss of $217,643 in the prior year, indicating a 30% improvement. The company has not generated any revenue during these periods, maintaining a consistent trend from previous fiscal periods.

The financial performance reflects significant changes in operational expenses. General and administrative expenses rose to $5,845 for the second quarter of 2025, up from $3,181 in 2024, marking an 84% increase. Professional fees also surged to $26,681, a 212% increase from $8,545 in the prior year, primarily due to higher legal costs. The total operating expenses for the second quarter reached $79,259, compared to $57,871 in the same quarter of 2024. The company also recorded an unrealized loss of $10,363 on available-for-sale securities, contrasting with a gain of $14,083 in the previous year.

Balance Labs' balance sheet as of June 30, 2025, shows total assets of $77,232, a decrease from $95,575 at the end of 2024. The company’s cash and cash equivalents have significantly declined to $3,625 from $13,199. Total liabilities increased to $5,300,886, up from $5,166,681, with a working capital deficit of $5,223,654. The accumulated deficit has also grown to $6,035,869, reflecting ongoing financial challenges. The company has a total of 21,674,000 shares of common stock outstanding, with no preferred stock issued.

In terms of strategic developments, Balance Labs is actively pursuing new client relationships and plans to enhance its marketing efforts to attract new business. The company aims to add two to three new clients by the end of 2025, utilizing both personal outreach and online marketing strategies. However, the company faces substantial doubt regarding its ability to continue as a going concern, as highlighted by its independent auditors. The company plans to seek additional capital to sustain operations, but there is no assurance that such financing will be available or on favorable terms.

Looking ahead, Balance Labs intends to formalize relationships with subcontractors to offer comprehensive business development services. The company is also preparing for potential challenges in cash flow management and operational expenditures. The management's focus remains on improving liquidity and managing current liabilities while navigating the complexities of its business model. The outlook remains cautious, with the need for additional funding and successful client acquisition being critical to the company's future viability.