Non-Invasive Monitoring Systems Reports Increased Net Loss and Pursues Merger with Gravitics

Non-Invasive Monitoring Systems, Inc. (NIMS) reported a net loss of $163,000 for the three months ended March 31, 2026, a significant increase from the $39,000 loss recorded during the same period in 2025. The company's operating costs surged to $144,000, up from $23,000 in the prior year, primarily due to professional fees associated with a planned merger with Gravitics, Inc. Interest expenses also rose slightly to $19,000 from $16,000, reflecting ongoing obligations related to promissory notes with related parties. The increase in losses and expenses highlights the financial challenges the company faces as it navigates its current operational status.

As of March 31, 2026, NIMS reported total assets of $26,000, a notable increase from $6,000 at the end of 2025, primarily due to cash on hand rising to $24,000 from $6,000. However, the company also reported total liabilities of $1,185,000, up from $1,002,000, driven by increases in accounts payable and accrued expenses. The shareholders' deficit widened to $1,159,000 from $996,000, indicating ongoing financial strain. The company continues to operate with negative working capital, raising concerns about its ability to sustain operations without additional financing.

In terms of strategic developments, NIMS is currently pursuing a merger with Gravitics, which was formalized in an agreement on March 6, 2026. This merger is part of the company's efforts to revitalize its business model after discontinuing its previous operations in 2019. The company has no current plans to develop or market new products and is classified as a shell company, focusing on potential mergers and acquisitions to enhance its operational capabilities.

Operationally, NIMS has maintained a consistent number of shares outstanding, with 154,810,655 common shares issued and outstanding as of March 31, 2026. The company has not reported any significant changes in customer counts or user statistics, as it has not engaged in active product sales since 2019. The lack of operational activity has resulted in limited engagement metrics, and the company is currently assessing its strategic options to re-enter the market.

Looking ahead, NIMS acknowledges the substantial doubt regarding its ability to continue as a going concern, given its history of losses and the need for additional financing. The company is exploring options for further promissory notes and is actively seeking to finalize the merger with Gravitics to stabilize its financial position. However, there is no assurance that these efforts will yield the necessary capital or operational viability in the near future. The management's outlook remains cautious, emphasizing the need for strategic partnerships and potential financing to navigate the current economic landscape.