PureBase Corporation Reports 88% Revenue Growth but Faces Significant Losses in Q2 2025

PureBase Corporation has reported its financial results for the second quarter of 2025, revealing a significant increase in revenue and ongoing operational challenges. For the three months ending May 31, 2025, the company generated $198,621 in net revenue, an 88% increase from $105,722 in the same period last year. This growth is attributed to earlier customer purchases due to warmer weather conditions. However, the company continues to face substantial losses, reporting a net loss of $375,571 for the quarter, compared to a loss of $340,890 in the prior year.

In terms of operational expenses, PureBase's total operating expenses rose to $482,561, a 23% increase from $392,388 in the previous year. This rise was primarily driven by higher professional services costs and increased general and administrative expenses. The company's cost of goods sold also increased by 59%, reflecting the higher volume of products sold. Despite the revenue growth, the company reported a loss from operations of $336,683, slightly worse than the loss of $319,741 recorded in the same quarter of 2024.

The financial position of PureBase has also deteriorated, with total current assets increasing to $106,183 from $47,612, largely due to an increase in accounts receivable and prepaid expenses. However, current liabilities surged to $1,952,449, up from $1,140,670, resulting in a working capital deficiency of $1,846,266. The company’s cash reserves dwindled to $500, down from $28,100 at the end of the previous fiscal period, raising concerns about its liquidity and ability to meet short-term obligations.

Strategically, PureBase has made significant moves, including a master agreement with US Mine Corporation (USMC) that allows the company to purchase up to 100 million tons of metakaolin supplementary cementitious materials. This agreement is part of the company's efforts to expand its product offerings in the construction sector, particularly in developing lower CO2-emitting concrete. Additionally, the company has seen changes in its management structure, with CEO A. Scott Dockter entering into a master agreement to purchase shares from USMC, indicating a personal financial commitment to the company’s future.

Looking ahead, PureBase anticipates continued operational losses as it executes its development plans for 2025. The company is exploring various financing options, including bridge loans and equity securities, to address its cash flow challenges. However, management has expressed uncertainty regarding its ability to generate sufficient revenue and secure necessary funding, which raises substantial doubt about the company's ability to continue as a going concern over the next twelve months.