Quarta-Rad Reports 131.82% Revenue Growth Driven by Sellavir, Faces Net Loss of $72,095

Quarta-Rad, Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded total net sales of $67,330, a substantial increase of 131.82% compared to $29,044 in the same period last year. This growth was primarily driven by the performance of its subsidiary, Sellavir, which generated $65,000 in revenue, marking its first revenue recognition since its acquisition. However, Quarta-Rad's own sales decreased sharply by 91.98% to $2,330, attributed to reduced demand for its RD1503 model.

The company's cost of goods sold (COGS) also saw a notable increase, rising 60.67% to $29,602, largely due to the increased sales from Sellavir. Operating expenses surged by 46.99% to $124,296, influenced by stock-based compensation related to Sellavir's operations. Consequently, Quarta-Rad reported a net loss of $72,095 for the quarter, a 15.64% increase from the previous year's loss of $62,344. For the six-month period ending June 30, 2025, the net loss was $149,504, a slight improvement from $153,995 in the prior year.

In terms of strategic developments, Quarta-Rad is transitioning its focus from traditional product sales to software solutions, particularly through its AI-driven call center platform, CenterEye. This shift is part of a broader strategy to enhance operational efficiency and customer engagement in the call center industry. The company is actively developing this software and has begun marketing efforts in the U.S. and Japan, where initial traction has been observed.

Operationally, Quarta-Rad's total assets decreased significantly to $370,127 from $577,814 at the end of 2024, primarily due to a reduction in cash and accounts receivable. The company reported a working capital deficit of $214,295, an improvement from $260,907 at the end of the previous fiscal year. The total employee headcount remains unchanged, with the company relying on its existing personnel to manage operations.

Looking ahead, Quarta-Rad plans to continue its focus on developing CenterEye and expanding its market presence. The company is exploring options for a potential spin-off of its current operations to better support its strategic objectives. Management remains cautious about the future, citing ongoing challenges in securing inventory and the need for effective marketing strategies to drive sales growth.