NovelStem International Corp. reported a net loss of approximately $3.2 million for the fiscal year ending December 31, 2024, a decrease from a loss of about $4.2 million in the previous year. The company’s total operating expenses for 2024 were approximately $939,000, significantly lower than the $3.5 million reported in 2023. This reduction was primarily due to a substantial decrease in litigation expenses, which fell from approximately $2.9 million in 2023 to about $59,000 in 2024. However, the company recorded an impairment loss of approximately $1.6 million related to its investment in NewStem, which ceased operations and began liquidation in October 2024.
In terms of strategic developments, NovelStem's acquisition of NewStem was a significant focus, but the company was unable to complete the purchase agreement due to funding issues. Consequently, NewStem's technology and license reverted to the original licensor, Yissum, while NovelStem retains a financial interest in any future monetization of the technology. The company’s executive leadership saw changes as well, with Jan Loeb being appointed as President and Executive Chairman in early 2023, consolidating leadership roles within the organization.
Operationally, NovelStem's financial health has been challenged, with current assets dropping from approximately $87,000 in 2023 to about $32,000 in 2024, while current liabilities increased from $346,000 to approximately $5.3 million. The company has not paid dividends since its name change in 2018 and does not anticipate doing so in the foreseeable future. As of December 31, 2024, NovelStem had no employees and relied on consultants for operational duties.
Looking ahead, NovelStem's management indicated that the company would need to secure additional funding to continue operations. Plans include potentially selling its interest in NetCo to settle related debts and seeking further financing to support its business initiatives. The company’s future profitability is contingent on the successful commercialization of NewStem's technology and the ability to navigate the challenges posed by its current financial situation. The company’s stock is traded on the OTC Pink Market, with limited liquidity and trading volume, which may affect shareholder returns.
About NovelStem International Corp.
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