Nordicus Partners Corporation Reports First Revenue Recognition Amid Rising Operating Expenses

Nordicus Partners Corporation reported its financial results for the three and nine months ended December 31, 2024, revealing a significant increase in both revenue and operating expenses compared to the same period in the previous year. The company generated revenue of $2,500 for the three months and $5,000 for the nine months, marking its first revenue recognition since the previous year, when it reported no revenue. However, the company incurred substantial operating expenses totaling $1.27 million for the three months and $2.04 million for the nine months, a dramatic rise from $75,000 and $223,000, respectively, in the prior year. This resulted in a net loss of $1.54 million for the quarter and $2.31 million for the nine-month period, compared to losses of $75,000 and $214,000 in the same periods of 2023.

The increase in operating expenses was primarily driven by higher officer compensation, professional fees, and research and development costs associated with recent acquisitions. Officer compensation surged to $518,654 for the quarter, up from $30,158, while professional fees rose to $158,712 from $43,728. Research and development expenses, which were non-existent in the previous year, reached $417,808, reflecting the company's focus on its newly acquired subsidiaries, Orocidin A/S and Bio-Convert ApS. The company also reported a loss of $280,000 related to the change in fair value of a warrant liability, which was not present in the prior year.

Strategically, Nordicus has made significant moves in expanding its business through acquisitions. In May 2024, the company acquired a 95% interest in Orocidin A/S, a clinical-stage biopharmaceutical company, for 3.8 million shares of common stock. Subsequently, in November 2024, it acquired the remaining 5% of Orocidin, making it a wholly owned subsidiary. Additionally, Nordicus announced the acquisition of Bio-Convert ApS, another clinical-stage biopharmaceutical company, in exchange for 12 million shares of common stock. These acquisitions are expected to enhance the company's portfolio in the life sciences sector.

Operationally, the company has seen a notable increase in its employee headcount and engagement metrics, although specific figures were not disclosed. The acquisitions of Orocidin and Bio-Convert are anticipated to drive future growth, with both companies focusing on innovative treatments in the biopharmaceutical space. The company’s management expressed optimism about the potential synergies and market opportunities arising from these acquisitions.

Looking ahead, Nordicus Partners Corporation faces challenges related to its financial sustainability, as it reported an accumulated deficit of $46.18 million as of December 31, 2024. The company indicated that it plans to finance its operations through existing cash, private placements of common stock, and the exercise of outstanding warrants. However, there is substantial doubt about its ability to continue as a going concern without generating profitable operations or securing additional financing. The management's forward-looking statements suggest a cautious but hopeful outlook, contingent on the successful integration and performance of its newly acquired subsidiaries.