Nocera, Inc. Reports 41.4% Revenue Decline and Increased Net Loss in Q2 2025

Nocera, Inc. reported a significant decline in financial performance for the second quarter of 2025, as detailed in its latest 10-Q filing. The company generated revenue of $3.97 million for the three months ending June 30, 2025, a decrease of approximately 41.4% compared to $6.75 million in the same period of 2024. For the first half of 2025, revenue totaled $8.51 million, down from $11.65 million year-over-year. The decline was attributed primarily to reduced sales in both the fish trading and catering segments, with notable drops in volume and revenue from key product lines.

The company's gross profit also fell sharply, with a reported $32,454 for the second quarter of 2025, down from $45,787 in the prior year. For the six-month period, gross profit decreased to $83,404 from $129,748. Operating expenses were reduced to $236,322 for the second quarter, compared to $354,442 in 2024, reflecting a decrease in consulting and salary expenses. However, the overall net loss attributable to the company widened to $491,708 for the second quarter, compared to a profit of $84,423 in the same quarter of the previous year.

Nocera's operational metrics showed a decline in customer engagement, particularly in its fish trading business, where the volume of fish sold decreased from 443 tons to 388 tons, despite an increase in average selling prices. The catering segment also experienced a drop in sales volume from 190,962 kilograms to 102,006 kilograms. The company reported a foreign currency translation loss of $55,895 for the first half of 2025, further impacting its financial results.

Strategically, Nocera has been active in acquisitions and divestitures. The company sold its subsidiary, SY Culture, for $550,000 in June 2025, which resulted in a loss of $87,332 recognized in other income. Additionally, Nocera acquired a 35% equity interest in Tachyonext Inc. for $500,000, aiming to enhance its e-commerce operations. The company is also focused on expanding its fish farming systems in Taiwan and the U.S., with plans to raise approximately $40 million through equity issuance and debt financing to support these initiatives.

Looking ahead, Nocera's management expressed concerns regarding its ability to continue as a going concern, given its accumulated deficit of $21.98 million and ongoing cash flow challenges. The company plans to control cash expenses and is focused on growing its customer base to increase revenues. However, it acknowledges the need for additional capital to meet its long-term operational requirements and is actively seeking financing options to support its strategic growth initiatives.