Gemaxel Inc. (formerly Worlds Inc.) reported its financial results for the six months ending June 30, 2025, revealing a continued lack of revenue generation, consistent with the previous fiscal period. The company reported no revenue for both the six-month periods ending June 30, 2025, and June 30, 2024. The operating loss for the first half of 2025 was $217,541, compared to a loss of $190,085 in the same period of 2024. The net loss for the six months ended June 30, 2025, was $255,668, an increase from the net loss of $227,742 reported for the same period in 2024.
The company's financial position showed a decline in total assets, which decreased to $9,004,000 as of June 30, 2025, from $15,130,000 at the end of 2024. Current liabilities increased to $3,918,217, up from $3,668,675 at the end of the previous fiscal year. This resulted in a working capital deficiency of $3,909,213, raising substantial doubt about the company's ability to continue as a going concern. The accumulated deficit also widened to $47,508,964 from $47,253,296 at the end of 2024.
Operationally, Gemaxel has been focusing on its legacy celebrity worlds and non-fungible tokens (NFTs) as potential revenue sources. The company has not generated significant revenue since the spin-off of its primary operations to MariMed Inc. in 2011. The company’s expenses have been primarily related to selling, general, and administrative costs, which increased by $35,755 to $96,542 for the six months ended June 30, 2025, attributed to the transfer of intellectual property to a new data center. The company has only one salaried employee, the CEO, whose salary is dictated by a long-term employment agreement.
In terms of financing, Gemaxel received a loan of $61,610 from its CEO during the first half of 2025 to cover operating expenses. The company has also accrued significant liabilities, including $1,570,343 related to old accruals for which the statute of limitations has passed. The company has not issued any new shares or warrants during the reporting period, maintaining a consistent share count of 57,112,506.
Looking ahead, Gemaxel's management acknowledges the need for additional capital to support its operations and strategic initiatives. The company is exploring various avenues for funding but has no current arrangements in place. The outlook remains uncertain, as the ability to raise funds or generate revenue from its intellectual property will be critical for the company's future viability.
About WORLDS INC
Worlds Inc. develops virtual reality and 3D internet environments, including virtual worlds, portals, and avatars. It owns proprietary technology for creating multi-user online spaces used for entertainment, social interaction, and e-commerce. The company monetizes its legacy celebrity virtual worlds and non-fungible tokens, focusing on licensing and digital assets. Its business model centers on leveraging intellectual property and virtual assets in niche digital markets.
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