0001493152-26-023227
SEC filingOperating and net losses narrowed significantly year-over-year by 94.8% and 73.4% respectively amid cost discipline, though cash used in operations increased to $139K as the development-stage company funds minimal activities through equity sales and short-term borrowings.
NovelStem International Corp. (NSTM), a development-stage holding company, reported meaningful year-over-year improvements in operating and net losses for Q1 2026 ended March 31, despite conducting no revenue-generating business activities. With no operating revenue or cost of revenue, the company's results reflect ongoing G&A expense management and interest relief in a pre-commercialization phase awaiting NewStem technology monetization by partner Yissum.
Operating income loss shrank 94.8% to -$5.0K from -$94.6K in Q1 2025. This narrowing occurred as management executed cost discipline across general and administrative functions, enabling the company to sustain minimal operations without revenue. Diluted EPS remained $0.00, consistent with prior year, reflecting the fully-diluted impact of persistent losses.
Cash flow dynamics highlighted intensified usage despite loss improvements. Net cash provided by operating activities deteriorated to -$138.7K from -$44.0K YoY, driven by working capital shifts including reductions in accounts payable. These paydowns reflect efforts to manage vendor obligations, though offset by interest accruals on debt and advances on short-term borrowings to cover ongoing expenses.
Liquidity remains challenged as a going concern. Management pursues financing and technology commercialization plans, but success is uncertain. Additional funds will be needed to continue operations, with no assurance of obtaining cash on acceptable terms or achieving profitability through NewStem's technology.