Balance Labs Reports Increased Net Loss and Ongoing Financial Challenges for Fiscal Year 2024

Balance Labs, Inc. reported a net loss of $528,223 for the fiscal year ending December 31, 2024, compared to a net loss of $381,571 in the previous year, marking an increase in losses of 38%. The company generated no revenue in both 2024 and 2023, reflecting ongoing challenges in establishing a client base. General and administrative expenses decreased significantly to $13,647 from $35,571, while professional fees surged to $71,634 from $25,085, indicating increased reliance on external services. The company's total assets fell to $95,575 from $220,721, primarily due to a reduction in cash and marketable securities.

The company’s financial position has deteriorated, with a working capital deficiency of $5,071,106 as of December 31, 2024, compared to $4,542,883 the previous year. Cash reserves dwindled to $13,199 from $112,809, highlighting liquidity issues. Balance Labs has not yet established a diversified client base, which has hindered its ability to generate revenue. The company’s independent auditors have expressed substantial doubt regarding its ability to continue as a going concern, emphasizing the need for additional financing to sustain operations.

Strategically, Balance Labs has focused on expanding its service offerings to startup and development-stage businesses, although it has only worked with three clients since its inception. The company plans to add two to three new clients by the end of 2025, utilizing personal networks and online marketing strategies. However, the effectiveness of these strategies remains uncertain due to limited resources and budget constraints. The management team, led by CEO Michael D. Farkas, is exploring various financing options to support operations and growth.

Operationally, the company has not reported significant changes in customer counts or user statistics, and it continues to face challenges in market penetration. The employee headcount remains minimal, with only four key personnel managing all operations. The company has also recognized the need for improved internal controls, as its current structure lacks adequate segregation of duties and oversight, which could impact financial reporting and compliance.

Looking ahead, Balance Labs aims to enhance its marketing efforts and establish a more robust client acquisition strategy. However, the company acknowledges that without securing additional funding, it may face further operational challenges. The management is actively pursuing financing options but cannot guarantee success, which could lead to potential delays in operations or even the need for reorganization under bankruptcy laws if conditions do not improve.