Medicale Corp. Reports $8.3 Million Net Loss for Quarter, Sees Decrease in Operating Expenses

Medicale Corp. has reported its financial results for the three and six months ended March 31, 2025, revealing a net loss of $8.3 million for the quarter, a decrease from a loss of $11.6 million in the same period last year. For the six-month period, the company recorded a net loss of $25 million, down from $30.9 million in the prior year. The reduction in losses is attributed to a significant decrease in operating expenses, which fell by 41% to $6.3 million for the quarter and by 29% to $21.3 million for the six months, primarily due to lower audit, accounting, and filing fees.

In terms of financial position, Medicale Corp. reported total current liabilities of $25.9 million as of March 31, 2025, an increase of 67% from $15.5 million at the end of the previous fiscal year. This rise is largely due to increased accounts payable and accrued liabilities. The company’s accumulated deficit has grown to $200.8 million, reflecting ongoing operational challenges and the need for additional capital to sustain its business activities. As of the reporting date, Medicale had no cash on hand, down from $159, indicating a critical liquidity position.

Medicale Corp. has not yet commenced operations related to its planned consulting services and dietary supplement distribution. The company continues to focus on preserving cash and raising capital to fund its future operations. The management has indicated that it will rely on additional investment capital to cover operating expenses in the near term. The company has also noted that it has no off-balance sheet arrangements that could materially affect its financial condition.

The company’s strategic direction has seen no significant changes in terms of acquisitions or product launches, as it remains in the early stages of development. The current employee headcount remains at 5,920, unchanged from previous periods. Medicale Corp. has not reported any customer counts or user statistics, as it has yet to generate revenue from its business operations. The management has expressed uncertainty regarding the company's ability to continue as a going concern, emphasizing the need for successful capital raising efforts to ensure future viability.

Looking ahead, Medicale Corp. acknowledges the inherent risks and uncertainties associated with its business model and market conditions. The management has stated that while they anticipate potential growth, there are no guarantees of achieving significant market acceptance or financial stability. The company plans to position itself to raise additional funds through capital markets, but it remains to be seen whether these efforts will be successful in the face of ongoing operational challenges.