Spectral Capital Reports Increased Net Loss and No Revenue for Q1 2025

Spectral Capital Corporation reported its financial results for the three months ending March 31, 2025, revealing a net loss of $660,028, a significant increase from the loss of $64,864 recorded during the same period in 2024. The company did not generate any revenue in either quarter, maintaining a consistent trend of no sales. Operating expenses surged to $660,028, compared to $64,864 in the prior year, primarily driven by increased selling, general, and administrative costs, which rose to $624,028 from $28,864.

The company's balance sheet as of March 31, 2025, showed total assets of $21,631, a sharp decline from $113,975 at the end of 2024. Current liabilities increased to $1,185,026 from $1,033,161, reflecting a rise in accounts payable and related party advances. The total stockholders' deficit expanded to $1,163,395, up from $919,186 at the end of the previous fiscal year, indicating ongoing financial challenges and a negative working capital position.

Strategically, Spectral Capital has focused on enhancing its intellectual property portfolio, filing 104 patent applications in 2024 across various technology sectors, including artificial intelligence and quantum computing. The company has also engaged a network of advisors to bolster its IP defensibility and commercialization efforts. However, in 2025, Spectral rescinded certain transactions involving its former chairman, Sean Michael Brehm, which clarified ownership of over 100 provisional patents and returned more than $100 million in share-based consideration to shareholders, aiming to restore corporate governance alignment.

Operationally, the company has not reported any significant changes in customer counts or user statistics, as it has not yet commenced revenue-generating activities. The management is actively pursuing strategic partnerships and financing opportunities to support its operational expansion and long-term commercialization efforts. As of March 31, 2025, the company had cash reserves of $21,631, raising concerns about its ability to sustain operations beyond the next 12 months without additional funding.

Looking ahead, Spectral Capital's management has indicated that it anticipates generating revenue from its Quantum Computing as a Service (QAAS) offerings and other technology initiatives within the next 90 to 120 days. However, the company acknowledges the risks associated with its limited operating history and the competitive landscape, which may impact its ability to achieve its financial and operational goals. The outlook remains uncertain, contingent on the successful execution of its strategic plans and the ability to secure necessary capital.