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Scienture Holdings Inc. (SCNX-13.71%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's financial performance, including a net loss from continuing operations of $18,244,480, compared to a net loss of $8,482,864 in the previous year. The increase in net loss was primarily due to higher operating expenses following the acquisition of Scienture LLC.
Scienture Holdings reported total revenues of $136,643, a decrease from $1,363,830 in 2023, largely due to the disposition of Softell's assets. Gross profit for the year was $6,005, down from $49,031 in 2023.
Operating expenses increased significantly to $14,707,020, up from $4,445,482 in 2023. This increase was driven by higher wages, professional fees, and research and development costs associated with Scienture LLC's operations.
The company recognized an impairment loss of $2,500,000 on its investment in equity securities. Interest expense for the year was $1,335,631, up from $1,143,223 in 2023, due to new convertible debt.
Scienture Holdings completed the acquisition of Scienture LLC on July 25, 2024. The acquisition added significant intangible assets and goodwill to the company's balance sheet.
The company declared two special cash dividends in 2024, totaling $14,858,831, using proceeds from asset sales.
Scienture Holdings plans to continue developing its pharmaceutical pipeline, with a focus on CNS and CVS diseases. Key product candidates include SCN-102, SCN-104, SCN-106, and SCN-107.
The company is exploring strategic options for its business-to-consumer subsidiaries, including potential sales or wind-downs, as part of its ongoing restructuring efforts.
Scienture Holdings identified a material weakness in its internal controls over financial reporting due to insufficient technical accounting and external reporting personnel.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Scienture Holdings Inc. annual 10-K report dated March 26, 2025. To report an error, please email earnings@qz.com.