Mitesco Reports First Quarter 2025 Financial Results with Revenue of $17,000 and Improved Net Income

Mitesco, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $17,000, a significant increase from zero in the same period last year. The company attributed this revenue to its newly established subsidiary, Centcore, LLC, which focuses on data center services. However, Mitesco's operating expenses rose sharply to $283,986, compared to $135,476 in the prior year, primarily due to costs associated with launching its new business units.

The company's net income for the quarter was $3,450,336, a notable improvement from a net loss of $592,041 in the first quarter of 2024. This positive shift was largely driven by a gain on the revaluation of derivative liabilities amounting to $4,362,645, which contrasted with the previous year's results that did not include such a gain. Additionally, interest expenses increased significantly to $392,049, reflecting the accretion of Series A preferred shares.

Mitesco's balance sheet as of March 31, 2025, showed total assets of $189,586, a slight decrease from $189,841 at the end of 2024. Current liabilities decreased to $15,021,731 from $18,443,143, primarily due to the restructuring of debt and the conversion of obligations into equity. The company reported a total stockholders' equity deficit of $22,151,545, an improvement from $26,415,946 at the end of the previous year.

Operationally, Mitesco has been focusing on expanding its business through strategic initiatives. The formation of Centcore and Vero Technology Ventures, LLC, aims to enhance its offerings in cloud computing and data center services. The company is also developing an artificial intelligence-based application called "Robo Agent," expected to launch in the third quarter of FY2025. As of March 31, 2025, Mitesco had 11,157,010 shares of common stock outstanding, up from 9,762,258 shares at the end of 2024, reflecting its efforts to raise capital through equity.

Looking ahead, Mitesco faces challenges related to its liquidity and ongoing operational losses. The company reported cash and cash equivalents of approximately $189 as of March 31, 2025, raising concerns about its ability to sustain operations without additional funding. Management has indicated that the company's future is contingent on securing further capital and generating sufficient revenue to support its business plan.