Point of Care Nano-Technology Reports $6.7M Net Loss for Quarter, No Revenue

Point of Care Nano-Technology, Inc. reported its financial results for the three and six months ended January 31, 2024, revealing a net loss of $6.7 million for the quarter, a significant reduction from the $13.2 million loss recorded in the same period the previous year. For the six-month period, the company reported a net loss of $13 million, down from $41.2 million in the prior year. The company’s total revenue remained at $0 for both the three and six-month periods, indicating no sales activity during these times. Operating expenses decreased to $6.7 million for the quarter and $13 million for the six months, primarily due to reduced consulting, legal, and investor-related expenses.

The company’s financial position showed a decline in total assets, which decreased to $115.8 million as of January 31, 2024, from $124.6 million at the end of July 2023. Current assets also fell to $2.7 million, down from $5.8 million, while current liabilities increased slightly to $145.6 million from $141.4 million. The accumulated deficit rose to $120.99 million, reflecting ongoing financial challenges. The company had cash reserves of $273,000 at the end of the reporting period, a decrease from $498,000 at the end of July 2023.

In terms of strategic developments, Point of Care Nano-Technology, Inc. completed an acquisition on May 20, 2024, acquiring assets from Point of Care Nano-Technology, LLC, which included proprietary information for developing saliva-based diagnostic kits. This acquisition resulted in a change of control, with Dr. Raouf Guirguis becoming a director and Chief Scientific Officer of the company. The company also entered into a license agreement with Zeus Diagnostics, LLC, granting it exclusive rights to manufacture and commercialize saliva tests in North America.

Operationally, the company has not reported any significant customer counts or product adoption rates, as it has not generated revenue from its offerings. The company’s employee headcount remains limited, and it has indicated a reliance on external consultants for accounting and legal support due to a lack of in-house expertise. The company’s future cash flow will depend on the successful market entry of its strategic offerings, although it has expressed uncertainty regarding its ability to achieve this.

Looking ahead, Point of Care Nano-Technology, Inc. has acknowledged substantial doubt about its ability to continue as a going concern, given its accumulated losses and limited cash reserves. The company plans to focus on the commercialization of its EZ Saliva product line, but it has not provided specific revenue projections or timelines for achieving profitability. The management has indicated that it will seek to hire personnel with technical accounting expertise to strengthen its financial reporting capabilities as funds become available.