Nexscient Reports Decreased Net Loss and Increased Liabilities for Q1 2025

Nexscient, Inc. has reported its financial results for the three months ending March 31, 2025, revealing a net loss of $134,851, a 37.9% decrease from the $217,292 loss recorded in the same period last year. The company, which has yet to generate any revenue since its inception in March 2023, attributed the reduction in losses primarily to a decrease in operating expenses, which totaled $114,581 for the quarter, down from $158,335 in the prior year. The decrease in expenses is largely due to reduced stock-based compensation and a focus on managing general and administrative costs.

For the nine months ending March 31, 2025, Nexscient reported a net loss of $422,239, compared to $676,441 for the same period in 2024, marking a 37.5% reduction. Total operating expenses for this period were $401,969, significantly lower than the $676,441 incurred in the previous year. The company’s cash position has also declined, with cash on hand at $21,376 as of March 31, 2025, down from $75,804 at the end of June 2024. This decline in cash reserves raises concerns about the company's liquidity, as it has no revenue to cover its operating costs.

Nexscient has made strategic moves to enhance its operational capabilities, including the acquisition of the AI Media Toolkit SaaS platform, which is expected to be integrated into its subscription-based service offering. The company is focused on developing a condition monitoring solution for industrial equipment, leveraging technologies such as the Industrial Internet of Things (IIoT) and artificial intelligence. As part of its growth strategy, Nexscient plans to continue seeking synergistic technology assets and businesses in the Enterprise AI domain.

The company’s total liabilities have increased significantly to $397,014 as of March 31, 2025, compared to $42,579 a year earlier. This increase is primarily due to the issuance of convertible debentures totaling $330,000 and a loan from an officer amounting to $30,000. The total stockholders' equity has shifted to a deficit of $216,165, reflecting the accumulated losses since inception. The company’s employee headcount remains limited, which has contributed to challenges in internal controls and financial reporting.

Looking ahead, Nexscient acknowledges substantial doubt about its ability to continue as a going concern without additional financing. The company plans to fund its operations through existing cash, loans from directors, and potential future equity offerings. Management has indicated that it will continue to seek additional capital to support its business development and operational needs, emphasizing the importance of generating profitable operations in the future to ensure sustainability.