Scorpius Holdings Reports 94% Revenue Decline and $11.3 Million Net Loss in Q1 2025

Scorpius Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues plummeting to $212,264, a decrease of approximately 94% from $3.5 million in the same period of 2024. The company attributed this drop primarily to the loss of a major customer, which had previously accounted for a substantial portion of its revenue. Operating expenses surged to $14 million, up from $8.8 million year-over-year, largely due to a $5.7 million loss on lease assignment and termination, as well as increased costs in research and development and general administrative expenses.

The company's total assets decreased sharply to $23.6 million as of March 31, 2025, down from $39.2 million at the end of 2024. This decline was driven by a reduction in cash and cash equivalents, which fell to $188,914 from over $1 million. Scorpius also reported a net loss of $11.3 million for the quarter, compared to a loss of $4.7 million in the prior year, reflecting ongoing challenges in generating sufficient revenue to cover operational costs. The accumulated deficit now stands at approximately $297.9 million.

Strategically, Scorpius has faced operational setbacks, including the termination of its lease for a manufacturing facility in San Antonio due to non-payment of rent. This has raised concerns about the company's ability to continue operations effectively. In response to these challenges, Scorpius is exploring various strategic alternatives, including potential partnerships and additional financing options. The company has engaged Alliance Global Partners to assist in this exploration, although no specific transactions have been confirmed.

Operationally, Scorpius has seen a decrease in customer engagement, with a notable reduction in contract liabilities, which stood at $1.5 million as of March 31, 2025. The company is also facing significant liquidity challenges, with cash and cash equivalents projected to last only until August 2025 without additional funding. The management has expressed substantial doubt about the company's ability to continue as a going concern, emphasizing the need for significant revenue generation to achieve profitability.

Looking ahead, Scorpius Holdings is focused on stabilizing its operations and exploring avenues for capital infusion. The company is considering multiple funding strategies, including equity and debt financing, to support its ongoing activities and mitigate the impact of recent operational disruptions. However, the success of these efforts remains uncertain, and the company has cautioned that it may need to reduce or terminate operations if it cannot secure the necessary funding.