NovelStem International Corp. Reports $140,816 Net Loss for Six Months Ended June 30, 2026

NovelStem International Corp. reported its financial results for the six months ended June 30, 2026, revealing a net loss of approximately $140,816, a significant decline from a net income of $2,546,625 during the same period in 2025. The company’s revenue remains non-existent as it has shifted its focus primarily to the monetization of its rights to the former NewStem license. Operating expenses for the first half of 2026 were $39,888, a decrease of 75% compared to $158,537 in the prior year, primarily due to reduced general and administrative costs.

The company’s balance sheet showed a notable increase in current assets, which rose to $64,687 from $15,786 at the end of 2025, largely attributed to the issuance of common stock that generated $250,000 in cash. Conversely, total current liabilities decreased slightly to $2,097,158 from $2,157,441, reflecting a reduction in accounts payable and the repayment of short-term borrowings. The shareholders' deficit improved to $(2,032,471) from $(2,141,655) as of December 31, 2025, indicating a slight recovery in the company's financial position.

Strategically, NovelStem has undergone significant changes, including the liquidation of its former investment in NewStem in August 2025 and the sale of its 50% interest in NetCo in May 2025. The latter transaction was executed to settle a litigation funding liability, which has allowed the company to focus on its remaining assets. The company is currently negotiating with debt holders to convert their debt into equity, which could further enhance its financial stability.

Operationally, NovelStem has not reported any revenue-generating activities, as it continues to rely on fundraising and the potential monetization of its intangible assets. The company’s employee headcount remains unchanged, and it has not issued any new stock options during the reporting period. The management has indicated that it will need to secure additional funding to sustain operations, with plans to pursue further financing and explore potential merger opportunities.

Looking ahead, NovelStem's management has expressed uncertainty regarding its ability to continue as a going concern, emphasizing the need for successful fundraising and the commercialization of its remaining assets. The company’s future financial health will depend on its ability to generate revenue from its licensing agreements and manage its liabilities effectively.