NovelStem International Corp. Reports Q1 2025 Financial Results with Reduced Net Loss and Ongoing Liquidation Efforts

NovelStem International Corp. reported its financial results for the first quarter of 2025, revealing a net loss of approximately $207,216, a decrease from a net loss of $303,280 in the same period of 2024. The company did not generate any administrative fee income during the quarter, compared to $3,000 in the prior year. Operating expenses were significantly reduced to $94,574 from $183,306, primarily due to lower general and administrative costs. The decrease in expenses was attributed to a reduction in professional fees and other operational costs.

The company's total assets decreased to $149,987 as of March 31, 2025, down from $160,111 at the end of 2024. Current assets also fell to $21,747, primarily due to a decline in cash reserves, which stood at $3,401 compared to $6,099 at the end of the previous year. Current liabilities increased to $5,492,837, driven by accrued interest on debt and short-term borrowings. The accumulated deficit rose to approximately $296,568,069, reflecting ongoing operational challenges.

In terms of strategic developments, NovelStem is in the process of liquidating its investment in NewStem, which has been unable to raise funds for continued operations. The company has fully impaired its investment in NewStem, reducing its carrying value to zero. Additionally, NovelStem is finalizing the sale of its interest in NetCo, a joint venture, for $1,300,000, which will be used to settle a litigation funding liability. This transaction is expected to provide some liquidity to the company.

Operationally, NovelStem has not reported any significant changes in customer counts or user statistics, as it continues to focus on its investments rather than generating direct revenue. The company has maintained a consistent employee headcount, with no new hires reported during the quarter. The management has indicated that it will need to secure additional funding to continue operations, emphasizing the importance of monetizing its remaining assets and pursuing further financing options.

Looking ahead, NovelStem's management remains cautious about the company's future, acknowledging the uncertainty surrounding its ability to raise sufficient capital. The company is actively seeking additional financing and exploring options to monetize its technology and assets. The ongoing liquidation of NewStem and the sale of NetCo are critical steps in addressing its financial challenges and improving its liquidity position.