Scienture Holdings Reports No Revenue and Increased Losses in Latest Financial Filing

Scienture Holdings, Inc. (formerly TRxADE Health, Inc.) reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no revenue for the second quarter, a stark decline from $18,699 in the same period last year. For the first half of 2025, revenues totaled $10,258, down 45% from $18,699 in the first half of 2024. The absence of revenue is attributed to the divestiture of its subsidiary operations, including Softell and IPS, which were sold in early 2024 and April 2025, respectively.

The company's operating expenses surged to $5.16 million for the second quarter, compared to $1.49 million in the prior year, marking a 245% increase. This rise was driven by higher wage and salary expenses, which increased by 148% to $773,739, and significant general and administrative costs, which rose by 605% to $2.93 million. The net loss from continuing operations for the quarter was $6.72 million, a substantial increase from a loss of $1.62 million in the same quarter of 2024. For the first half of 2025, the net loss from continuing operations reached $9.78 million, compared to $8.26 million in the previous year.

Strategically, Scienture has undergone significant restructuring, including the acquisition of Scienture, LLC in July 2024, which focuses on developing specialty pharmaceutical products. The company has also divested from its legacy subsidiaries to streamline operations and focus on its core pharmaceutical business. As of June 30, 2025, Scienture's total assets were valued at approximately $104.29 million, with liabilities totaling $26.43 million, resulting in stockholders' equity of $77.86 million.

Operationally, the company has shifted its focus to developing a pipeline of pharmaceutical products, including SCN-102, which received FDA approval in March 2025. However, the company faces challenges, including an accumulated deficit of $48.82 million and a cash balance of only $15,391 as of the end of the reporting period. The company has indicated a need for additional capital to support ongoing operations and future growth, raising concerns about its ability to continue as a going concern without securing further funding.

Looking ahead, Scienture plans to continue its focus on product development and commercialization while exploring strategic partnerships and potential acquisitions. However, the company acknowledges that its ability to raise capital may be limited, which could impact its operational capabilities and growth trajectory in the coming months.