0001493152-26-022512
SEC filingNet loss widened significantly due to stock-based compensation, though operating cash burn improved and the company maintains a going concern outlook.
Net loss for the three months ended March 31, 2026 was $2.3 million, compared to $1.3 million in the prior year period, an increase of 80.5%. The increase was primarily driven by higher operating expenses, which included stock-based compensation from equity grants. Operating income also widened to a loss of $2.3 million from $1.0 million in the prior year period.
Net cash used in operating activities improved to $464,000 from $682,000 in the prior year period. The improvement was driven by lower accounts payable and favorable working capital changes, partially offset by the higher net loss.
Revenue of $7,000 was generated from retail sales of the Celios air purification system, a product line acquired from DSS PureAir in February 2025. This represents the company's first meaningful product revenue, though it remains negligible relative to operating expenses. The company's primary business model continues to focus on licensing its proprietary technologies (Linebacker, Laetose, 3F, Equivir) to partners for milestone and royalty payments, none of which generated revenue in the quarter.
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has historically met its liquidity and capital requirements primarily through debt financing. Although there is no certainty that management plans will be able to satisfy the requirements to continue operating as a going concern, management intends to take additional actions necessary to continue as a going concern.
Interest expense was eliminated after the October 2025 conversion of a related-party note to equity, reducing financial costs.