0001193125-26-131723
SEC filingRevenue grew modestly 16.5% to $9.1M as biomedical product sales gains offset anti-aging skincare weakness, but gross profit declined 4.8% to $5.1M due to higher production costs, widening operating and net losses amid ongoing cash management efforts.
Revenue rose 16.5% to $9.1M in FY 2025 from $9.085M in FY 2024, driven primarily by growth in biomedical market product sales, particularly cell products. This increase was partially offset by a decrease in anti-aging market segment skin care product sales due to reduced demand. The shift highlights resilience in the core biomedical business amid softer consumer-facing skincare performance, maintaining overall topline stability while exposing reliance on therapeutic segment momentum.
Gross profit fell 4.8% to $5.1M despite revenue growth, contracting the gross margin to 55.7% from prior levels. Cost of sales rose as biomedical production scaled, incorporating salaries, direct materials, laboratory supplies, and overhead allocations. This was partially mitigated by a decrease in anti-aging cost of sales tied to lower product volumes. Additional pressure came from inventory reserve adjustments establishing new cost bases, contributing to margin erosion. Management aims to refine manufacturing processes and supply chain for both biomedical (LCT) and anti-aging (LSC) lines to improve cost efficiency as a percentage of revenue.
Operating income deteriorated to a -$267K loss (-292.6% YoY change) with an operating margin of -2.9%, reflecting expense growth outpacing topline gains. Net income swung to -$418K (-100.0% YoY) and diluted EPS to -$0.05 (-66.7% YoY), incorporating non-operating items. These results underscore challenges in scaling profitability amid investments in growth areas, with losses widening from prior-year -$68K operating and -$209K net figures.
Facing going concern considerations, management is evaluating financing sources to fund R&D programs and operations, emphasizing cash flow management, capex timing, and capital raises. Plans prioritize operational efficiency without implying future result continuity, positioning the company to navigate biomedical opportunities while addressing anti-aging headwinds and broader funding needs.