Basanite, Inc. Reports Significant Financial Decline in Q1 2025

Basanite, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues of $27,974, down from $59,449 in the same period of 2024. The company experienced a gross loss of $13,215, compared to a gross profit of $55,190 in the prior year, primarily due to increased costs of goods sold, which rose to $14,759 from $4,259. Operating expenses also increased, totaling $201,861, up from $154,329, leading to a net loss of $439,195 for the quarter, compared to a net loss of $287,958 in the previous year.

The company's balance sheet reflects a substantial decrease in total assets, which fell to $110,820 as of March 31, 2025, from $265,709 at the end of 2024. Current assets plummeted to $6,946, down from $132,981, while total liabilities increased slightly to $9,375,962 from $9,091,656. The accumulated deficit also widened to $58,430,980, compared to $57,991,785 at the end of 2024, indicating ongoing financial challenges.

Strategically, Basanite has been focusing on its core product lines, including BasaFlex™, a basalt fiber reinforced polymer rebar, and other composite products aimed at the construction industry. The company is actively seeking to expand its manufacturing capacity, although it has faced constraints due to limited working capital. As of March 31, 2025, Basanite reported no inventory, reflecting its current operational challenges. The company is also in the process of searching for a new manufacturing facility after terminating a potential lease in Twinsburg, Ohio.

Operationally, Basanite's workforce has been reduced, with payroll and related costs decreasing to $40,680 from $45,463 year-over-year. The company anticipates returning to a fully staffed operation by the end of 2026. Despite the challenges, Basanite continues to receive inquiries and solicit orders for its products, indicating a level of market interest. However, the company acknowledges that it requires significant additional financing to support its operations and expansion plans, raising concerns about its ability to continue as a going concern.

Looking ahead, Basanite's management has expressed the need for further capital to sustain operations and expand manufacturing capabilities. The company is exploring various financing options, including potential private or public offerings of securities. However, there is no assurance that it will be successful in raising the necessary funds or that the terms will be favorable. The ongoing financial losses and the need for additional capital underscore the uncertainty surrounding Basanite's future operations and growth prospects.