Balance Labs, Inc. has reported its financial results for the fiscal year ending December 31, 2025, revealing a significant increase in revenue and a substantial net loss. The company generated approximately $6,000 in advisory revenue during the fourth quarter of 2025, marking its first revenue since its inception, compared to no revenue in 2024. However, operating expenses surged to $13.1 million from $271,285 in the previous year, primarily due to a dramatic rise in salaries and wages, which increased to $12.9 million from $186,004. This increase was largely attributed to non-cash stock-based compensation related to the issuance of shares to executives and employees.
The company underwent a transformative debt-to-equity conversion on November 5, 2025, where it converted $4.17 million in debt into 16.67 million shares of common stock. This move significantly reduced total liabilities from $5.17 million at the end of 2024 to $3.77 million by the end of 2025, while also improving the stockholders' deficit from $(5.07 million) to $(3.38 million). Despite these changes, Balance Labs reported a net loss of $31.77 million for 2025, a substantial increase from the $528,223 loss in 2024, primarily due to non-cash charges including stock-based compensation and losses on the settlement of debt.
Operationally, Balance Labs has a small workforce, currently employing four individuals, including its CEO Alan Campbell and Chairman Michael D. Farkas. The company plans to expand its advisory services and establish a rules-based digital asset corporate treasury, contingent upon securing sufficient capital. The company has indicated that it may seek additional financing to support its operations and treasury strategy, which remains undeployed due to capital constraints. The advisory business is expected to grow as the company expands its client base and operational capabilities.
Looking ahead, Balance Labs acknowledges the challenges it faces, including the need for additional financing and the potential impact of evolving regulatory environments on its business model. The company has expressed intentions to pursue capital formation activities and may consider uplisting its common stock to a national securities exchange, subject to meeting applicable listing standards. However, the management has also cautioned that there is no assurance that it will be able to generate sufficient revenue or secure financing on favorable terms, raising substantial doubt about its ability to continue as a going concern.
About Balance Labs, Inc.
Balance Labs, Inc. is a consulting firm specializing in business development services for startup and development-stage companies across various industries. It offers customized support including business model development, marketing, financial modeling, product development, and professional introductions. Targeting early-stage businesses in the U.S. and abroad, the company leverages experienced management to help clients overcome operational challenges and implement growth strategies through a flexible, project-based consulting model.
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