Stimcell Energetics Inc. Reports Increased Losses and Financial Challenges for November 2024

Stimcell Energetics Inc., formerly known as Cell MedX Corp., reported its financial results for the three and six months ended November 30, 2024, revealing a net loss of $139,508 for the quarter and $206,427 for the half-year period. This marks a significant increase in losses compared to the same periods in the previous fiscal year, where the company recorded a net loss of $60,547 for the three months and $137,500 for the six months ended November 30, 2023. The company's total operating expenses surged to $130,698 for the quarter, up from $42,562 a year earlier, driven primarily by increased consulting fees and foreign exchange losses.

The company's balance sheet as of November 30, 2024, shows total assets of $38,346, a decrease from $46,122 as of May 31, 2024. Current liabilities increased to $1,021,051, up from $872,577, with notable increases in accounts payable and amounts due to related parties. The accumulated deficit has grown to $10,501,690, reflecting ongoing operational challenges. The company’s stockholders’ deficit also widened to $982,705 from $826,455, indicating a continued struggle to achieve profitability.

In a strategic move, Stimcell completed a 1-for-15 reverse stock split effective November 1, 2024, which reduced its authorized capital from 7.5 billion shares to 500 million shares. This restructuring was accompanied by a name change to Stimcell Energetics Inc. The company aims to enhance its market position and streamline its operations, although the impact of these changes on future performance remains to be seen.

Operationally, the company has not reported significant increases in customer counts or product adoption rates, and there are no indications of geographic expansion in the latest filing. The employee headcount remains stable, but the company continues to rely heavily on related party transactions for financing, with amounts due to related parties increasing to $325,945 as of November 30, 2024. The company has indicated that it plans to seek additional funding through loans from directors and officers, as well as potential private placements.

Looking ahead, management has expressed uncertainty regarding the company's ability to continue as a going concern, emphasizing the need for financing to meet obligations and achieve profitable operations. The company’s future performance will depend on its ability to secure necessary funding and effectively implement its strategic initiatives. The financial results for the upcoming quarters will be closely monitored as the company navigates these challenges.