Impact BioMedical Reports $1.15M Operating Loss and $15.63M Net Loss for Quarter Ending June 30, 2025

Impact BioMedical, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated total revenue of $7,000 for the three months ended June 30, 2025, a stark contrast to the previous year when it reported no revenue. However, the company incurred substantial costs, leading to an operating loss of $1,153,000 for the quarter, compared to a loss of $626,000 in the same period last year. For the six months ending June 30, 2025, the net loss reached $15,631,000, a 731% increase from the $1,880,000 loss reported in the prior year.

The financial performance reflects a dramatic increase in total costs and expenses, which rose by 85% to $1,160,000 for the three months ended June 30, 2025, and by 56% to $2,172,000 for the six-month period. This increase was primarily driven by a 793% rise in professional fees, attributed to consulting and legal services related to the company's business strategy post-IPO, as well as higher sales, general, and administrative expenses due to increased headcount and bonus accruals. The company also reported a significant fair value adjustment of $12,942,000 related to its note payable to a related party, which contributed to the overall net loss.

In terms of strategic developments, Impact BioMedical completed the acquisition of certain assets from DSS Pure Air, Inc. for $1,150,000, which was settled through the issuance of shares. This acquisition included intellectual property related to the Celios air purification system, indicating the company's ongoing efforts to expand its product offerings. The company also reported an increase in its common stock outstanding, rising to 12,185,412 shares as of June 30, 2025, compared to 10,000,000 shares at the end of the previous fiscal year.

Operationally, the company has not yet seen significant adoption of its products, with customer counts remaining low. The company’s cash and cash equivalents decreased to $624,000 from $1,999,000 at the end of 2024, reflecting ongoing cash burn. The total liabilities surged to $26,440,000, up from $13,053,000, primarily due to the increase in the note payable to the related party. The company’s stockholders’ equity also turned negative, with a deficit of $10,341,000 as of June 30, 2025, compared to a positive equity of $4,259,000 at the end of 2024.

Looking ahead, Impact BioMedical's management has indicated plans to continue monetizing its intellectual properties and controlling operating costs to address its liquidity challenges. The company is also exploring potential partnerships and further development of its proprietary technologies. However, the substantial losses and negative cash flow raise concerns about its ability to sustain operations without additional financing or significant revenue growth in the near future.