Quest Patent Research Reports No Revenue and Increased Losses in Latest 10-Q Filing

Quest Patent Research Corporation reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded no revenue during this period, a stark contrast to the $1.045 million generated in the same quarter of the previous year. This decline in revenue has contributed to a net loss of $826,385, or $0.15 per share, compared to a loss of $431,442, or $0.08 per share, in the prior year. The absence of revenue reflects the company's ongoing difficulties in monetizing its intellectual property assets, which are primarily derived from patent licensing fees associated with litigation settlements.

The financial position of Quest Patent Research has deteriorated, with total current assets dropping to approximately $82,452 from $502,285 at the end of the previous fiscal year. The company's liabilities have increased, with total current liabilities amounting to $12.308 million, up from $12.038 million. The accumulated deficit has also widened to $27.209 million, raising concerns about the company's ability to continue as a going concern. The filing indicates that the company has negative working capital of approximately $12.226 million, which further complicates its financial stability.

Operationally, the company has not made significant progress in expanding its customer base or product adoption rates. The filing notes that Quest Patent Research is currently managing 23 intellectual property portfolios, with only seven actively seeking monetization. The company has engaged in litigation to enforce its patents, but the outcomes remain uncertain, and the costs associated with these legal actions continue to mount. The lack of revenue generation from these efforts has led to increased selling, general, and administrative expenses, which rose to $654,306 from $577,279 year-over-year.

In terms of strategic developments, Quest Patent Research has entered into new financing agreements to support its operations. On April 11, 2025, the company formed a new subsidiary, MR Licensing LLC, and entered into agreements with QPRC Corporate Finance for a financing facility of up to $3 million for operating expenses and $9 million for patent acquisitions. This funding is intended to facilitate the purchase of a patent portfolio from Monterey Research LLC, which consists of over 2,500 patents related to data storage device security and semiconductor circuitry. However, the company has acknowledged that it cannot assure future revenue generation or the successful monetization of its intellectual property.

Looking ahead, Quest Patent Research faces substantial risks and uncertainties, particularly regarding its ability to raise funds and secure third-party financing for litigation and operational expenses. The company has indicated that its financial condition, history of losses, and low stock price may hinder its ability to attract investment. As such, the outlook remains cautious, with management emphasizing the need for continued monitoring of market conditions and potential impacts on its business operations.