0001493152-26-015334
SEC filingNutra Pharma Corp. faced a challenging Q3 FY2025 with declining revenue and escalating losses, leading management to express substantial doubt about the company's ability to continue as a going concern due to significant cash burn and working capital deficits.
Revenue for Q3 FY2025 decreased to $70.2K from $75.0K in the prior year period, representing a 6.3% decline. This decrease was driven by lower private label customer order volumes and the timing of orders during the current quarter. While the company has experienced growth in private label customers and higher order volumes during the current nine-month period, the quarterly performance reflects variability in customer demand patterns. The decrease was primarily attributable to reduced sales volume and pricing during the current quarter compared to the prior-year period.
Gross profit declined to $64.6K from $70.7K in Q3 FY2024, representing an 8.7% year-over-year decrease. Despite maintaining a high gross margin of 91.9%, the decrease in adjusted gross margin is primarily attributable to higher manufacturing costs associated with private label product sales to unrelated parties. Operating performance deteriorated significantly, with operating loss widening to -$356.1K from -$184.8K in the prior year period. This resulted in an operating margin of -506.9%, reflecting substantial operating inefficiencies relative to revenue generation.
Net loss deepened to -$523.5K from -$260.7K in Q3 FY2024, representing a substantial year-over-year deterioration. The increase in interest expense was primarily due to the increase in amortization of loan discounts in the quarter ended September 30, 2025 compared to the quarter ended September 30, 2024. Diluted earnings per share remained at $0.00 for both periods. The significant net loss reflects both operational challenges and increased financing costs during the quarter.
Net cash used in operating activities was -$944.1K, representing a substantial increase in cash burn compared to -$245.7K in the prior year period. Capital expenditures of $26.1K were minimal relative to operating cash outflows, resulting in free cash flow of -$970.2K. The company's liquidity position is constrained by these significant cash outflows from operations.
Management has explicitly raised substantial doubt about the company's ability to continue as a going concern, citing significant losses from operations and working capital and stockholders' deficits. The company acknowledges that to the extent future revenues from the sales of Nyloxin and Pet Pain-Away are insufficient to cover operating expenses, it may need to raise additional equity capital, which could result in substantial dilution to existing shareholders. As sales increase, the company plans to begin marketing more aggressively to increase sales and awareness of its products, though such forward-looking statements are subject to the risks detailed in the company's filings.