Quest Patent Research Reports No Revenue and Significant Losses in Latest Quarter

Quest Patent Research Corporation reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company did not generate any revenue during the quarter, a stark contrast to the $850,000 reported in the same period last year. For the six months ending June 30, 2025, Quest also reported no revenue, down from approximately $1.9 million in the prior year. The company incurred a net loss of approximately $1.14 million for the quarter, translating to a loss per share of $0.21, compared to a loss of $447,110, or $0.08 per share, in the previous year. The total net loss for the six months reached approximately $1.97 million, compared to $878,552 in the same period of 2024.

The financial position of Quest Patent Research has deteriorated significantly, with total assets increasing to approximately $11.68 million as of June 30, 2025, up from $3.54 million at the end of 2024. This increase is primarily attributed to the acquisition of patents, which now account for $11.41 million of total assets, compared to $3.04 million at the end of the previous fiscal year. However, the company’s liabilities have also surged, with total liabilities rising to approximately $22.35 million, up from $12.24 million at the end of 2024. This includes a substantial increase in funding liabilities, which rose to $17.38 million from $7.63 million, reflecting the company's reliance on external financing to support its operations.

Operationally, Quest Patent Research has been active in acquiring patents, including a significant purchase of a patent portfolio from Monterey Research LLC for $9 million, which was financed through a new funding agreement with QPRC Finance. The company has also engaged in litigation to enforce its patent rights, which is expected to be a primary source of future revenue. However, the absence of revenue generation during the reporting period raises concerns about the effectiveness of its monetization strategies. The company currently manages 24 intellectual property portfolios, with seven actively seeking monetization.

Looking ahead, Quest Patent Research faces substantial challenges, including an accumulated deficit of approximately $28.35 million and negative working capital of about $21.87 million. The company has expressed uncertainty regarding its ability to continue as a going concern, citing its history of losses and the difficulties in raising funds in the current market environment. The management has indicated that future revenue generation is contingent upon successful litigation outcomes and the ability to secure third-party funding for ongoing legal expenses. The company’s financial statements reflect these uncertainties, and no adjustments have been made for potential outcomes that could arise from these conditions.