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NovelStem International Corp (NSTM0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net loss of $3,070,027, compared to a net loss of $4,240,045 in the same period the previous year. The decrease in net loss is attributed to a reduction in operating expenses.
Operating expenses for the quarter were $893,887, down from $3,441,244 in the previous year. This decrease is primarily due to the absence of litigation expenses that were present in the previous year.
The company reported a loss from operations of $884,887 for the quarter, compared to a loss of $3,432,244 in the previous year. The improvement is attributed to reduced operating expenses.
Interest expense increased to $306,742 from $56,274 in the previous year, reflecting increased debt levels.
The company recorded an impairment loss of $1,628,657 related to its investment in NewStem, which is currently in liquidation.
Cash used in operating activities was $232,744, while cash provided by financing activities was $475,000, primarily from borrowings.
NovelStem had current assets of $68,937 and current liabilities of $3,599,231 as of September 30, 2024. The company acknowledges its dependence on additional financing to meet future obligations.
The filing also details various financial agreements, including notes payable to related parties and convertible debt agreements.
NovelStem does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to insufficient resources for proper segregation of duties.
NovelStem continues to focus on its investment in NetCo and potential monetization of NewStem's intangible assets, despite NewStem's liquidation process.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the NovelStem International Corp quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.