As of September 30, 2024, NovelStem International Corp. reported total current assets of $68.9 million, a decrease from $86.6 million as of December 31, 2023. Total assets also saw a significant decline, reported at $198.5 million compared to $2.3 billion at the end of the previous fiscal year. Current liabilities surged to $3.6 million from $346.5 thousand, contributing to total liabilities of $5.2 million, up from $4.2 million. The company’s total shareholders’ deficit widened to $(5.0 million) from $(1.9 million).

For the nine months ending September 30, 2024, NovelStem reported total operating expenses of $893.9 thousand, a substantial decrease from $3.4 million in the same period of 2023. The loss from operations improved to $(884.9 thousand) from $(3.4 million) year-over-year. The net loss for the nine months was $(3.1 million), down from $(4.2 million) in 2023. The company attributed this reduction in losses to lower operating expenses, despite an impairment loss of $1.6 million related to its investment in NewStem.

In the third quarter of 2024, the company reported a net loss of $(2.5 million), compared to $(1.1 million) in the same quarter of 2023. General and administrative expenses for this quarter increased significantly to $566.6 thousand from $84.2 thousand in the prior year, reflecting higher operational costs.

The company’s investment in NewStem has faced challenges, with net revenues for NewStem dropping to $0 for the nine months ended September 30, 2024, down from $95 thousand in 2023. NewStem has since ceased operations and begun liquidation due to financing difficulties. NovelStem's ownership interest in NewStem is now approximately 30.5%, with the carrying value of this investment fully impaired to zero.

In terms of financing, NovelStem has engaged in various borrowings, including $750 thousand from shareholders and directors, and $300 thousand from a shareholder for working capital. The company reported net cash provided by financing activities of $475 thousand for the nine months ended September 30, 2024, compared to $270 thousand in the same period of 2023.

The company continues to face substantial doubt regarding its ability to continue as a going concern, primarily due to its reliance on additional fundraising and financing. The accumulated deficit has reached approximately $296 million since inception, with ongoing efforts to secure additional funds for operations.