CannaPharmaRx Reports Revenue Growth to $231,608 but Faces Significant Losses in Q2 2025

CannaPharmaRx, Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $231,608, a significant increase from $0 in the same period last year. For the first half of 2025, the company generated $566,927 in revenue, compared to $25,839 in the first half of 2024. Despite this growth in revenue, the company faced a gross loss of $621,210 for the quarter and $1,123,817 for the six-month period, primarily due to increased costs of goods sold, which rose to $852,818 and $1,690,744, respectively. The increase in costs was attributed to higher direct materials, labor, and overhead expenses, as well as inventory impairments.

The company's financial position showed a decline in profitability, with a net loss of $1,413,458 for the second quarter, compared to a net income of $5,362,264 in the same quarter of 2024. For the first half of 2025, the net loss was $2,104,052, an improvement from a loss of $6,353,369 in the prior year. The company’s accumulated deficit increased to $103,288,194 as of June 30, 2025, up from $101,184,142 at the end of 2024. CannaPharmaRx's cash position improved to $16,975 from $2,156 at the end of the previous year, although it still reported a working capital deficiency of $27,756,255.

Strategically, CannaPharmaRx has been focusing on expanding its operations and product offerings. The company entered into a security and royalty agreement with Koze Investments LLC, which requires the payment of royalties on cannabis product sales. Additionally, the company has been working on increasing its production capacity at its facility in Alberta, Canada, with plans to operate all 11 growing rooms in the near future. The company also aims to enhance its presence in the European market, particularly in Germany and Israel, by developing a sales network and obtaining necessary certifications.

Operationally, CannaPharmaRx reported a significant increase in its customer base, with sales to Cantek, an Israeli corporation, contributing to its revenue. The company sold 192,384 grams of cannabis products during the quarter, reflecting its growing market engagement. However, the company also faced challenges, including a Cease Trade Order issued by the British Columbia Securities Commission, which restricts trading in its securities. The company is actively seeking to resolve this issue and has filed an application to revoke the order.

Looking ahead, CannaPharmaRx's management has expressed concerns about the company's ability to continue as a going concern, given its substantial working capital deficiency and accumulated losses. The company plans to raise additional capital through debt or equity financing to support its operations and growth initiatives. However, there is no assurance that these efforts will be successful, which could significantly impact the company's future operations and financial stability.