Qualis Innovations, Inc. reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company, which focuses on pain management solutions through its subsidiary mPathix Health Inc., has not generated any revenue since its inception. As of September 30, 2024, total assets increased to $46.7 million from $2.4 million at the end of 2023, primarily due to a substantial increase in cash reserves.

Current liabilities decreased dramatically to $39.7 million from $525.4 million, reflecting a significant reduction in accounts payable and accrued expenses, which rose to $29.3 million from $16.3 million. The company’s total stockholders’ equity improved to $6.98 million, recovering from a deficit of $522.96 million at the end of 2023.

Operating expenses for the nine months ended September 30, 2024, were reported at $67.5 million, a drastic reduction of 96.1% compared to $1.75 million for the same period in 2023. This decrease was attributed to lower consulting fees and the absence of stock-based compensation expenses, which had previously accounted for a significant portion of operating costs. General and administrative expenses for the third quarter of 2024 were $21.4 million, down from $28.6 million in the same quarter of 2023.

The net loss for the nine months ended September 30, 2024, was $70,064, a substantial improvement from a net loss of $1.75 million for the same period in 2023. The loss before income taxes for the third quarter of 2024 was $22,676, compared to $28,572 in the prior year. The weighted average number of shares outstanding increased significantly to 20.2 million from 8.5 million, reflecting the issuance of new shares.

Qualis Innovations also reported net cash used in operating activities of $56,252 for the nine months ended September 30, 2024, an improvement from $68,527 in the same period of 2023. The company generated $100,000 in cash from financing activities during the current period, compared to no financing activities in the previous year.

The company has faced challenges, including an impairment of assets totaling $76,008 related to its SOLACE device due to manufacturing issues. Despite these challenges, Qualis Innovations is focused on its growth strategy, which includes acquiring or developing medical devices that larger companies may phase out. The company anticipates that its current working capital will be insufficient to fund operations for at least the next twelve months, indicating a need for additional capital.