Nexscient, Inc. reported its financial results for the third quarter of 2024, revealing significant changes in its financial position compared to the previous fiscal period. As of September 30, 2024, the company had total assets of $183.6 million, a substantial increase from $124.4 million as of June 30, 2024. This growth was primarily driven by an increase in cash, which rose to $151.4 thousand from $75.8 thousand in the prior quarter.

Total liabilities surged to $229.4 million from $42.6 million, largely due to the issuance of convertible debentures amounting to $180,000 during the quarter. The company reported a net loss of $127.6 thousand for Q3 2024, a notable improvement from a net loss of $243.1 thousand in Q3 2023. This reduction in losses was attributed to a decrease in total operating expenses, which fell to $127.6 thousand from $243.1 thousand year-over-year, primarily due to reduced stock-based compensation expenses.

Research and development expenses saw a significant increase, rising to $69.9 thousand in Q3 2024 from $15.0 thousand in the same period last year. Despite these investments, Nexscient has not generated any revenue since its inception and continues to face substantial doubt regarding its ability to continue as a going concern without additional financing.

The company’s cash flow from operating activities improved slightly, with a net cash used of $104.4 thousand in Q3 2024 compared to $113.1 thousand in Q3 2023. However, cash at the end of the period decreased to $151.4 thousand from $436.1 thousand a year earlier. Financing activities provided $180.0 thousand in Q3 2024, down from $346.8 thousand in the same quarter of 2023.

Nexscient's total stockholders' equity shifted to a deficit of $45.8 million as of September 30, 2024, compared to a positive equity of $81.8 million at the end of June 2024. The accumulated deficit increased to $1.16 million, reflecting ongoing operational losses.

The company, incorporated on March 14, 2023, focuses on developing a subscription-based condition monitoring solution for industrial equipment, utilizing technologies such as the Industrial Internet-of-Things (IIoT) and artificial intelligence (AI). Management plans to finance future operations through existing cash, loans from directors, and potential stock offerings. The company has identified material weaknesses in its internal controls and plans to enhance its accounting staff to address these issues.