Nexien BioPharma Reports Increased Net Loss and Deteriorating Financial Position

Nexien BioPharma, Inc. reported its financial results for the three and six months ended December 31, 2024, revealing a net loss of $39,472 for the quarter, an increase of 61% from the $24,518 loss recorded in the same period of 2023. For the six-month period, the company reported a net loss of $71,476, a decrease of 28% compared to the $99,436 loss from the prior year. The company has not generated any revenue during these periods, and its operating expenses totaled $24,027 for the three months and $39,737 for the six months, primarily driven by professional fees and general administrative costs.

The company’s financial position has deteriorated, with total current assets dropping to $1,306 as of December 31, 2024, down from $4,183 at the end of June 2024. Current liabilities increased to $423,997 from $365,432 during the same period, leading to a working capital deficit of $422,691. This decline in cash reserves and increase in liabilities is attributed to the ongoing operational costs and the lack of revenue generation, which has forced Nexien to cease its research and development activities due to insufficient working capital.

In terms of strategic developments, Nexien issued 300,000 shares of common stock valued at $6,600 in connection with a convertible loan during the reported period. The company has also been actively seeking additional capital to fund its operations, with its CEO advancing $20,000 for working capital. Despite raising approximately $2.1 million in equity capital and $181,750 in debt financing since inception, Nexien faces substantial doubt about its ability to continue as a going concern without further capital infusion.

Operationally, Nexien has not reported any significant changes in customer counts or product adoption rates, as it has not yet launched any products or generated revenue. The company continues to pursue pre-clinical and drug development activities related to cannabinoid-based medications, having filed three provisional patent applications. However, the lack of sufficient funding has hindered its ability to advance these projects.

Looking ahead, Nexien's management has indicated that it will require a minimum of $40,000 to maintain its status as a public company for the remainder of the fiscal year. The company is exploring merger opportunities and other strategic arrangements to secure the necessary capital. The outlook remains uncertain, as Nexien does not anticipate generating revenue from its drug development projects in the near future, emphasizing the critical need for additional funding to sustain its operations and pursue its business objectives.