United Health Products, Inc. (UHP) reported significant financial challenges in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in cash and cash equivalents, which decreased to $43,783 from $95,420 at the end of the previous fiscal year. Total current assets also fell sharply to $63,691 from $151,822, contributing to a total asset reduction from $284,643 to $150,629. Total liabilities increased to $2,261,886 from $1,998,869, resulting in a total stockholders’ deficit of $(2,111,257), up from $(1,714,226).

For the three months ended September 30, 2024, UHP reported a net loss of $(303,662), an improvement compared to a net loss of $(485,732) for the same period in 2023. This reduction in loss was attributed to decreased operating expenses, which totaled $391,903, down from $450,451 in the prior year. The decrease was primarily due to a reduction in research and development expenses. The company did not generate any revenue during this period, as it continues to focus on obtaining a Class III PMA for its patented hemostatic gauze, CelluSTAT®.

For the nine months ended September 30, 2024, UHP reported a net loss of $(1,187,621), a significant decrease from $(2,151,349) in the same period of 2023. Total operating expenses for this period were $1,222,174, down from $1,979,882, largely due to reduced litigation settlement expenses and lower research and development costs. The company also recorded a gain of $115,085 from the settlement of debt, contrasting with a loss on settlement of debt in the previous year.

Cash flow from operating activities showed improvement, with $(1,013,278) used in the nine months ended September 30, 2024, compared to $(1,624,145) in 2023. However, cash flow from financing activities also decreased to $961,641 from $1,687,657. The company’s cash position at the end of the period was significantly lower than the previous year, reflecting ongoing financial difficulties.

UHP is actively seeking regulatory approval for its CelluSTAT product, which is currently in the process of addressing deficiencies identified by the FDA. The company is exploring potential commercial partnerships and financing options to support its operations and product development. Despite these efforts, there remains substantial doubt about UHP's ability to continue as a going concern, as highlighted in the independent auditor's report.