Medicale Corp. Reports $5.5 Million Net Loss for Quarter, Sees 47% Decrease in Losses

Medicale Corp. has reported its financial results for the three and nine months ended June 30, 2025, revealing a net loss of $5.5 million for the quarter, a 47% decrease from the $10.5 million loss recorded in the same period last year. For the nine-month period, the company reported a net loss of $30.5 million, down 26% from $41.3 million in the prior year. The reduction in losses is attributed to a significant decrease in operating expenses, which fell by 62% to $3.6 million for the quarter and by 37% to $24.8 million for the nine months, primarily due to lower audit, accounting, and filing fees.

In terms of financial position, Medicale Corp. reported total current liabilities of $29.4 million as of June 30, 2025, a 90% increase from $15.5 million at the end of the previous fiscal year. This increase is largely due to rising accounts payable and accrued liabilities. The company’s accumulated deficit has grown to $206.3 million, reflecting ongoing operational challenges and the need for additional capital to sustain its business activities. The company had no cash on hand as of June 30, 2025, compared to $159,000 at the end of September 2024.

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 depend 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 leadership or operational focus since the appointment of Chen Zu De as CEO in December 2022. Medicale Corp. remains in the early stages of its business development, and management has expressed uncertainty regarding its ability to achieve market acceptance for its proposed operations and products. The company has not generated any revenue to date and continues to face challenges in establishing a stable source of income.

Looking ahead, Medicale Corp. acknowledges the substantial doubt about its ability to continue as a going concern without securing additional financing. The management's outlook emphasizes the need for successful capital raising efforts to support its business plans. The company has not provided specific timelines or strategies for achieving operational stability, highlighting the inherent risks and uncertainties associated with its future performance.