Rego Payment Architectures Reports $2.1 Million Net Loss and $0 Revenue for Q2 2025

Rego Payment Architectures, Inc. reported its financial results for the second quarter of 2025, revealing a continued lack of revenue generation, with net revenue remaining at $0 for both the three and six months ended June 30, 2025, and 2024. The company recorded a net loss of $2.1 million for the quarter, a decrease from a loss of $2.6 million in the same period last year. For the six-month period, the net loss was approximately $4.9 million, slightly down from $4.9 million in the prior year. The decrease in losses is attributed to reduced operating expenses, particularly in sales and marketing, which fell by 41% year-over-year.

Total operating expenses for the second quarter of 2025 were approximately $1.9 million, down from $2.4 million in the same quarter of 2024. The decline was primarily driven by lower sales and marketing expenses, which decreased to $110,408 from $187,237, and general and administrative expenses, which dropped to $826,464 from $1.4 million. However, product development expenses increased to $863,441, reflecting higher integration and compliance costs associated with the rollout of the company's mobile payment platform, Mazoola®.

Rego's balance sheet as of June 30, 2025, showed total assets of $2.2 million, a significant decrease from $3.3 million at the end of 2024. Current liabilities rose to $45.1 million, up from $41.1 million, largely due to increased convertible notes payable. The company's stockholders' deficit also widened to $42.8 million from $37.8 million, driven by accumulated losses and accrued preferred dividends, which totaled approximately $15.4 million.

In terms of strategic developments, Rego has engaged a new investment banker to explore capital funding and strategic alternatives, including a potential sale of the company. The company has also focused on licensing its technology to partners in various markets, aiming to expand its reach while reducing operational costs. As of August 14, 2025, Rego reported a cash position of approximately $1.3 million, which management believes will sustain operations through September 2025, contingent on generating sufficient revenue.

Looking ahead, Rego anticipates that significant revenue generation may not occur until late in the third quarter of 2025. The company continues to face challenges in securing additional financing and achieving operational sustainability. Management has indicated that if sufficient revenue is not generated, it may need to reduce expenses or seek further financing through debt or equity offerings, which could dilute existing shareholders. The outlook remains uncertain as the company navigates a rapidly evolving market landscape.