Rego Payment Architectures Reports $2.74 Million Net Loss in Q1 2025

Rego Payment Architectures, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $2.74 million, compared to a net loss of $2.29 million for the same period in 2024. The company did not generate any revenue during this quarter, consistent with its performance in the previous year. Total operating expenses increased to $2.56 million from $2.04 million year-over-year, primarily driven by a significant rise in general and administrative costs, which surged to $1.81 million from $712,623. This increase was largely attributed to expenses related to the extension of certain outstanding stock options.

In terms of cash flow, Rego reported a cash position of approximately $850,000 as of May 15, 2025, down from $3.01 million at the end of 2024. The company utilized $1.39 million in cash for operating activities during the first quarter, a decrease from $1.83 million in the same quarter of the previous year. The reduction in cash used was primarily due to a change in the fair value of options issued in exchange for services. The company has indicated that its existing cash resources may not be sufficient to sustain operations beyond June 2025, highlighting the need for revenue generation or additional financing.

Rego has not made any significant acquisitions or product launches during this reporting period. However, the company continues to focus on its mobile payment platform, Mazoola®, which is designed to provide a secure banking solution for minors. The platform aims to comply with regulations such as the Children’s Online Privacy Protection Act (COPPA) and the General Data Protection Regulation (GDPR). Management believes that leveraging its compliance advantages will be crucial for future growth and market penetration.

The company’s operational metrics indicate a stable user base, with 136,248,105 shares of common stock outstanding as of March 31, 2025. Rego has maintained its employee headcount and continues to explore partnerships to expand its market reach. The management has expressed optimism about future revenue generation, projecting that significant revenue may not materialize until the third quarter of 2025. However, they caution that the ability to raise additional capital will be critical to executing their business plan and sustaining operations.

Looking ahead, Rego Payment Architectures, Inc. is actively seeking to enhance its financial position through potential partnerships and licensing agreements. The company is also assessing its strategic options, including the possibility of a sale, as it navigates a challenging financial landscape. The management's forward-looking statements emphasize the importance of generating sufficient revenue to support ongoing operations and the potential risks associated with their current financial condition.