Limitless X Holdings Reports 75.4% Revenue Decline and $34.62 Million Net Loss

Limitless X Holdings Inc. reported significant financial challenges in its latest 10-Q filing for the three months ended March 31, 2025. The company generated total net revenue of $251,936, a substantial decrease of 75.4% compared to $1,022,525 in the same period last year. This decline in revenue was attributed to a shift in marketing strategies, including changes in performance marketers and platforms, which adversely affected product sales. The cost of sales also decreased to $117,194, representing 46.5% of sales, down from 23.6% in the previous year, reflecting reduced operational activity.

The company's operating expenses surged to $4.37 million, up from $1.76 million in the prior year, primarily due to increased stock compensation expenses related to stock options and restricted stock issued. This led to a loss from operations of $4.23 million, compared to a loss of $974,756 in the same quarter of 2024. The net loss for the period reached $34.62 million, significantly higher than the $1.08 million loss reported a year earlier, largely due to a $29.93 million loss on debt settlement resulting from the conversion of loans payable to shareholders into preferred stock.

In terms of operational metrics, the company reported a notable increase in its employee headcount, which is expected to enhance its operational capabilities. The total assets of Limitless X Holdings increased to $201.92 million as of March 31, 2025, up from $120.84 million at the end of the previous fiscal year. This increase was primarily driven by the conversion of various notes payable to preferred stock, which also contributed to a reduction in current liabilities from $13.19 million to $4.21 million.

Looking ahead, Limitless X Holdings indicated that it needs to raise additional capital to support its operations and business model. The company has not faced liquidity issues in settling payables or repaying loans but acknowledges the risks associated with renewing loans and the competitive landscape in which it operates. The management is committed to enhancing its financial reporting and internal controls, recognizing the need for additional personnel to improve the segregation of duties and oversight within its accounting functions. The outlook remains cautious as the company navigates these challenges while seeking to stabilize its financial position.