Stemtech Corporation Reports 2.7% Increase in Net Sales, Faces $3.77 Million Net Loss

Stemtech Corporation reported a modest increase in net sales for the fiscal year ending December 31, 2024, achieving $5.05 million compared to $4.92 million in 2023, marking a year-over-year growth of approximately 2.7%. Despite this increase in revenue, the company continues to face challenges, posting a net loss of $3.77 million, an improvement from the $5.43 million loss reported in the previous year. This reduction in net loss is attributed to a significant decrease in total operating expenses, which fell to $6.11 million from $8.14 million, primarily due to effective cost management strategies that included a reduction in general and administrative expenses.

In terms of operational developments, Stemtech has focused on expanding its Independent Business Partner (IBP) network, which is crucial for its direct sales model. The company anticipates adding approximately 30,000 new IBPs over the next 12 to 24 months, which is expected to enhance sales and customer engagement. The total number of IBPs is currently not disclosed, but the company believes that this expansion will help lower customer acquisition costs and improve overall sales performance. Additionally, Stemtech has introduced new products, including the Cellect One® Shield HOCL skin care product in January 2025, and plans to launch a pet supplement, StemPets™, in April 2025, tapping into the $303 billion global pet industry.

Financially, Stemtech's current assets increased to $921,746 as of December 31, 2024, up from $400,710 in the previous year, indicating improved liquidity. However, current liabilities also rose significantly to $9.01 million from $6.46 million, primarily due to increased financing obligations and trade-related payables. The company's stockholders' deficit widened to $5.23 million, up from $2.78 million, largely due to the net loss incurred during the year. The company continues to rely on financing activities, including proceeds from notes payable and stock issuances, to meet its liquidity needs.

Looking ahead, Stemtech's management acknowledges the need for additional capital to sustain and expand operations. The company plans to finance its working capital requirements through a combination of existing funds and further issuances of equity and debt securities. While management is optimistic about reinvigorating sales to align with historical performance, they caution that the ability to execute their business plan and achieve profitability remains uncertain. The company has not yet generated positive cash flows from operating activities and will need to navigate ongoing financial challenges to ensure long-term viability.