Scientific Energy Reports Q3 Revenue Increase to $22M, Net Income Decline

Scientific Energy, Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a revenue increase to $22.0 million for the quarter, up from $19.4 million in the same period last year. For the nine-month period, revenue rose to $65.4 million compared to $50.6 million in 2024. The company achieved a gross profit of $7.6 million for the third quarter, a 17.2% increase from $6.5 million in the prior year, while the nine-month gross profit also improved to $20.8 million from $16.5 million. However, net income for the third quarter decreased to $460,103 from $1.8 million in 2024, and for the nine months, net income fell to $1.1 million from $3.0 million, primarily due to increased operating expenses.

The company experienced significant changes in its operational expenses, which rose sharply to $7.4 million in the third quarter from $4.8 million in the previous year, driven by higher selling, general, and administrative costs. The increase in expenses was attributed to strategic investments in marketing and operational enhancements. Additionally, Scientific Energy reported a notable increase in accounts receivable, which rose to $10.0 million from $5.3 million, indicating a growing customer base and higher sales volume.

In terms of strategic developments, Scientific Energy has been active in expanding its business operations. The company established several new subsidiaries, including AgriJoy Catering Management Company Limited and AOMI Corporation, aimed at enhancing its service offerings in the catering and e-commerce sectors. Furthermore, in September 2025, the company disposed of its joint venture, Gold Gold Gold Limited, for $111,246, settling the transaction through crypto assets. This move reflects the company's ongoing efforts to streamline operations and focus on core business areas.

Operationally, the company reported a total of 263.3 million shares outstanding, with no changes in the number of shares compared to the previous year. The company’s cash and cash equivalents increased to $5.8 million from $4.9 million, providing a stronger liquidity position. However, the accumulated deficit slightly improved to $46.7 million from $47.7 million, indicating ongoing challenges in achieving profitability. The company also noted a need for capital to support its operations and reduce current liabilities, which totaled $28.5 million as of September 30, 2025.

Looking ahead, Scientific Energy's management expressed cautious optimism about future growth, emphasizing the need for operational efficiency and cost reduction to navigate the current market conditions. The company is focused on enhancing its e-commerce platform and expanding its service offerings to capture a larger market share. However, the management acknowledged substantial doubt about the company's ability to continue as a going concern without securing additional financing or achieving profitability in the near term.