VANCOUVER, BC – August 13th, 2025 – Deemos, a pioneering research company at the forefront of generative AI for 3D content, is celebrating a triumphant week at SIGGRAPH 2025, marked by winning the conference’s prestigious Best Paper Award and successfully debuting its powerful new foundation model, Hyper3D Rodin Gen-2. This victory marks the company’s first win after three nominations at the premier computer graphics conference.
The pinnacle of Deemos’s presence at the event was the recognition of its technical paper, “CAST: Component-Aligned 3D Scene Reconstruction from an RGB Image,” with the Best Paper Award. This top honor validated the paper’s groundbreaking approach to analyzing a single 2D picture and intelligently reconstructing it into a complex, component-level 3D scene. The work represents a significant leap beyond simple object creation, demonstrating an advanced understanding of object composition crucial for building detailed virtual worlds.
Building on this profound research, Deemos provided attendees with a hands-on look at the future of digital content creation at its booth. The team conducted live, interactive demonstrations of Hyper3D Rodin Gen-2, a versatile foundation model that serves as a new engine for 3D asset generation. Attendees witnessed firsthand how the technology interpreted simple text prompts or 2D images to produce intricate, high-fidelity 3D models. This process, which the company calls the “Vibe Modeling” era, moves beyond the technical complexities of traditional 3D software, allowing creativity to flow directly from idea to asset. The model’s ability to generate individual, editable parts of a larger object was a key point of interest for professionals seeking to integrate the technology into their production pipelines.
“Winning the Best Paper Award at SIGGRAPH is a tremendous honor and a powerful validation of our team’s persistent, research-driven approach to solving fundamental challenges in 3D AI,” said Qixuan Zhang, CTO of Deemos. “It was incredibly rewarding to share this moment with the community. With Hyper3D Rodin Gen-2, we are turning our most advanced research into a tangible, powerful tool. The enthusiastic reception at SIGGRAPH confirms our belief that this technology will fundamentally change the workflow for 3D artists, game developers, and virtual world builders, making it faster, smarter, and more intuitive than ever before.”
The company’s deep expertise was further showcased through a series of highly-attended technical paper presentations. In addition to presenting the award-winning “CAST” paper, the Deemos team also presented “BANG: Dividing 3D Assets via Generative Exploded Dynamics,” which details a novel method for deconstructing 3D models. They also presented collaborative research with Tsinghua University on “Facial Appearance Capture at Home with Patch-Level Reflectance Prior,” highlighting innovations in realistic human digital rendering.
The successful debut and industry recognition at SIGGRAPH 2025 mark a pivotal moment for Deemos, solidifying its position as a leader in generative 3D. The company has effectively bridged the gap between state-of-the-art academic research and practical, commercially-ready solutions that will define the next generation of digital experiences.
About Deemos: Deemos is an AI research and product company dedicated to building the next generation of 3D content creation tools. By combining cutting-edge academic research with intuitive product design, Deemos is accelerating the world’s transition to a 3D future. The company is committed to democratizing 3D creation, making it possible for anyone to build, share, and experience immersive digital worlds.
ClearSight has released a new resource, LASIK Myths and Misconceptions, aimed at addressing the misinformation that often keeps people from considering LASIK as a safe and effective vision correction option. The article identifies and explains the truth behind 12 of the most common misunderstandings about LASIK, including concerns about pain, safety, cost, recovery, and long-term results. With decades of clinical data and thousands of successful patient outcomes, ClearSight’s team of refractive surgery specialists hopes to empower individuals to make confident, informed decisions about their vision.
According to the article, one of the most prevalent myths is that LASIK is painful. In reality, patients receive numbing eye drops before the procedure, which eliminates pain during surgery. While some may feel minor pressure during the process and experience temporary dryness or mild discomfort afterward, most report the experience as surprisingly comfortable. Another common concern is safety, with some believing LASIK is too risky or even capable of causing blindness. ClearSight emphasizes that LASIK is one of the most studied elective procedures in modern medicine, with an exceptional safety record. Serious complications are rare, and the practice’s use of advanced laser platforms and diagnostic tools such as corneal topography further reduces potential risks.
The resource also addresses the misconception that LASIK only works for mild vision problems. ClearSight routinely performs LASIK for a range of refractive errors, including myopia, hyperopia, and astigmatism. Modern technology allows correction of more complex prescriptions, meaning many who previously thought they were ineligible for LASIK may now qualify after a proper evaluation. Another persistent myth is that LASIK results wear off over time. The article explains that the vision correction achieved through LASIK is permanent, with any changes years later typically related to the natural aging process, not the procedure itself.
Cost is another barrier fueled by misunderstanding. While some assume LASIK is prohibitively expensive, ClearSight notes that it can save money over time by eliminating the ongoing cost of glasses, contact lenses, and related supplies. The practice offers financing options to make LASIK more accessible and emphasizes the value of factoring in the daily convenience and long-term savings when considering the procedure. The belief that everyone is automatically a candidate for LASIK is also clarified—while not everyone qualifies, many who assume they are ineligible are surprised to learn they can safely undergo the surgery after a thorough examination.
Night vision concerns are another topic of misinformation. Some patients worry that glare or halos will be a permanent problem, especially while driving at night. ClearSight explains that while mild visual effects may occur in the early healing period, these typically fade as the eyes adjust. Advanced laser technology used at the practice is designed to reduce nighttime visual disturbances and improve contrast sensitivity, often resulting in sharper night vision than patients had with glasses or contacts.
The article also dispels the idea that LASIK is a new or experimental treatment. LASIK has been performed for more than 25 years and is supported by extensive research in the field of ophthalmology. Millions of people worldwide, including medical professionals, pilots, and athletes, have trusted the procedure for its precision and predictable outcomes. Another overlooked benefit is quality of life. While many view LASIK solely as a way to eliminate corrective lenses, ClearSight patients frequently report improvements that extend beyond convenience—such as greater confidence, more freedom in sports and outdoor activities, and the ability to wake up with clear vision.
Finally, ClearSight addresses the belief that LASIK is purely cosmetic. LASIK is a medically guided, highly technical refractive surgery that improves visual acuity, reduces dependence on corrective lenses, and addresses real vision problems affecting daily function. It is performed with the same level of precision and care as any other form of eye surgery, with the goal of delivering both visual clarity and long-term eye health.
By publishing LASIK Myths and Misconceptions, ClearSight aims to replace confusion with clarity and give prospective patients the facts they need to weigh their options. The practice stresses that the decision to undergo LASIK should be based on accurate information and a personalized evaluation. Misinformation can prevent people from exploring a procedure that could significantly improve their vision and quality of life.
ClearSight invites reporters, editors, and medical writers to explore the full article and speak directly with its experienced surgical team to gain additional insights into the safety, benefits, and candidacy requirements for LASIK. Patients interested in learning whether they qualify are encouraged to schedule a consultation to receive a thorough eye health evaluation and customized treatment plan.
First Quarterly Results as a Nasdaq-Listed Company Mark Milestone Period of Growth
INDIANAPOLIS, INDIANA / ACCESS Newswire / August 14, 2025 / Arrive AI (NASDAQ:ARAI), an autonomous delivery network anchored by patented AI-powered Arrive Points™, today reported results for the second quarter of 2025 – its first quarter concluded as a public company.
Q2 2025 Highlights
Strategic Partnerships: Signed agreements with Go2 Delivery (specialty pharmacy courier), AllMart – Local Marketplace, ACT Antigua, and Skye Air Mobility (India’s leading hyperlocal delivery platform).
First Commercial Revenue: Earned initial revenue through a partnership with Hancock Health, a Mayo Clinic Care Network hospital in Indiana, validating real-world adoption of Arrive AI’s technology.
Growth Capital Secured: Took delivery of a $4 million tranche from its previously announced $40 million structured capitalization with Streeterville Capital and completed a PicMii crowdfunding raise with nearly 2,000 new retail investors.
Operational Momentum: Launched three new pilots in healthcare, logistics, and municipal sectors; cut onboarding time to under two weeks, creating a repeatable deployment model.
Team Expansion: Announced plans to triple headcount with 40 new hires in engineering, operations, QA, and AI systems.
IP Leadership: Secured U.S. patent protection for climate-assisted Arrive Points, bringing total issued patents to eight; filed additional patents for climate optimization, adaptive access control and drone landing coordination.
Financial Results
Revenue: $90,725 – first in company history.
Net Loss: $4.69 million – primarily from one-time public listing costs of approximately $3 million. Excluding these, loss was comparable to Q2 2024 of $1.46 million.
Positive Cash Flow – ending the quarter with $607,000 cash on hand and nearly full access to the rest of the new $40 million capital facility.
CEO Commentary
“Our second quarter was about turning vision into tangible action,” said CEO Dan O’Toole. “We moved from R&D to putting our Arrive Points into the field, engaging real-world users, and proving our technology is not just innovative; it’s operational. We’re building the nervous system for a new era of automated logistics, one where packages arrive securely, intelligently, and precisely where they are needed.”
O’Toole added, “Our recent capital raise gives us the financial flexibility and runway to execute without near-term liquidity pressure and federal rulemaking plans indicate important flexibility in drone usage is coming. We are committed to our disciplined investment strategy and business model, have the right team, the right technology, and a clear vision to create enduring value for our shareholders. We are continuing to protect our first-position, foundational patent, as well, as we build for scale, impact and legacy.”
IP & Partnerships: Expanding patent portfolio and embedding technology through strategic industry alliances.
Recurring Revenue Model: Establishing platform-as-a-service agreements where revenue grows with each delivery, data point, and Arrive Point deployed.
2025 Priorities
Hiring: Bringing on AI scientists, software engineers, and sales/marketing staff to drive production, global rollout, and partner acquisition.
Product Development: Scaling production of patented Arrive Points for international deployment.
AI Innovation: Advancing low-cost, edge AI analytics-such as time-of-flight sensor applications-to optimize delivery efficiency without high computational costs.
“If you’ve believed in our vision and opportunity, you’re going to love where we’re headed,” O’Toole said.
SECOND QUARTER CONFERENCE CALL
The company will host a conference call and webcast today at 4:30 PM Eastern Time to review its results and strategic progress. Please join the webcast live via this link: https://edge.media-server.com/mmc/p/psy2vzvk. Webcast participants will be able to submit questions through the webcast portal. A replay of the call will be accessible on https://www.arriveai.com/investor-relations.
-30-
About Arrive AI Arrive AI (NASDAQ:ARAI) is a leader in autonomous delivery infrastructure, developing AI-powered Arrive Points™ to serve as secure, climate-assisted endpoints for package delivery by drones, robots, and conventional carriers. Learn more at https://www.arriveai.com and via the company’s press kit.
This news release and statements of Arrive AI’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements (including statements related to the closing, and the anticipated benefits to the Company, of the private placement described herein) related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would”, “optimistic” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors which may be beyond our control. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. Potential investors should review Arrive AI’s Registration Statement and other filings with the Securities and Exchange Commission, for more complete information, including the risk factors that may affect future results, which are available for review at www.sec.gov. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.
ARRIVE AI INC. CONDENSED BALANCE SHEETS (Unaudited)
June 30, 2025
December 31, 2024
(Unaudited)
ASSETS
CURRENT ASSETS
Cash
$
607,496
$
129,318
Accounts receivable
89,075
–
Prepaid expenses
197,298
55,867
Deferred offering costs
7,182,455
427,898
Other current assets
3,208
4,179
Total current assets
8,079,532
617,262
LONG-TERM ASSETS
Property and equipment, net
126,586
95,425
Patents, net
273,149
273,601
Security deposit
1,500
1,500
Long-term assets
401,235
370,526
TOTAL ASSETS
$
8,480,767
$
987,788
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable
$
725,083
$
1,868,689
Accrued liabilities
52,311
79,556
Credit card payable
13,579
3,636
Convertible note payable, net of discount of $128,000
4,202,000
–
Current portion of note payable
8,827
8,524
Total current liabilities
5,001,800
1,960,405
NONCURRENT LIABILITIES
Note payables, net of current portion
6,068
10,558
Total liabilities
5,007,868
1,970,963
Commitments and Contingencies (See Note 12)
–
STOCKHOLDERS’ EQUITY (DEFICIT)
Common stock, $0.0002 par value, 200,000,000 shares authorized, 33,023,385 shares and 29,120,905 issued and outstanding at June 30, 2025, and December 31, 2024, respectively
7,104
6,322
Treasury stock, 2,500,000 at cost
(500
)
(500
)
Additional paid-in capital, net of offering costs
26,060,146
14,984,561
Subscription receivable
(5,167
)
(53,003
)
Accumulated deficit
(22,588,684
)
(15,920,555
)
Total stockholders’ equity (deficit)
3,472,899
(983,175
)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
$
8,480,767
$
987,788
See condensed notes to unaudited financial statements included in Form 10-Q.
ARRIVE AI INC. CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Three Months
Six Months
Ended June 30,
Ended June 30,
2025
2024
2025
2024
REVENUE
$
90,725
$
–
$
90,725
$
–
OPERATING EXPENSES
General and administrative
4,286,558
803,311
6,181,537
1,604,242
Research and development
293,468
452,538
384,731
540,939
Sales and marketing
49,602
226,289
57,263
252,746
Total operating expenses
4,629,628
1,482,138
6,623,531
2,397,927
OTHER INCOME (EXPENSES)
Other income
43,151
24,089
60,066
24,089
Interest expense and bank charges
(194,212
)
(1,053
)
(195,389
)
(2,017
Total other income (expenses)
(151,061
)
23,036
(135,323
)
22,072
NET LOSS BEFORE TAXES
(4,689,964
)
(1,459,102
)
(6,668,129
)
(2,375,855
PROVISION FOR INCOME TAXES
–
–
–
–
NET LOSS
$
(4,689,964
)
$
(1,459,102
)
$
(6,668,129
)
$
(2,375,855
NET LOSS PER SHARE:
Basic and diluted
$
(0.15
)
$
(0.05
)
$
(0.22
)
$
(0.08
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted
31,543,921
28,950,088
30,637,620
28,903,132
See condensed notes to unaudited financial statements included in Form 10-Q.
ARRIVE AI INC. CONDENSED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2025 and 2024 (Unaudited)
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$
(6,668,129
)
$
(2,375,855
)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation
2,845,223
605,615
Depreciation and amortization
17,118
14,469
Amortization of discount on convertible debt
192,000
–
Changes in operating assets and liabilities
(Increase) decrease in
Accounts receivable
(89,075
)
–
Prepaid expenses
(141,431
)
(3,381
)
Other current assets
971
–
Increase (decrease) in
Accounts payable
61,131
344,817
Accrued liabilities
(27,245
)
85,136
Credit card payable
9,943
(24,786
)
Net cash used in operating activities
(3,799,494
)
(1,353,985
)
CASH FLOWS FROM INVESTING ACTIVITIES
Construction in progress
(47,827
)
–
Net cash used in investing activities
(47,827
)
–
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock, net
444,360
1,201,233
Proceeds from the exercise of warrants, net
573,896
–
Repayments of note payables
(4,187
)
(3,905
)
Proceeds from issuance of convertible debt
4,010,000
–
Deferred offering costs
(698,570
)
–
Net cash provided by financing activities
4,325,499
1,197,328
NET INCREASE (DECREASE) IN CASH
478,178
(156,657
)
CASH, BEGINNING OF PERIOD
129,318
325,472
CASH, END OF PERIOD
$
607,496
$
168,815
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for:
Interest
$
1,939
$
888
Income taxes
$
–
$
–
SUPPLEMENTAL DISCLOSURE OF NONCASH INFORMATION
Common stock issued as payment of offering costs
$
6,927,869
$
–
Common stock issued as settlement of legal expenses
$
1,204,737
$
–
Deferred offering costs recognized as additional paid-in capital
$
871,882
$
–
Cashless exercise of stock options
$
8,970
$
–
See condensed notes to unaudited financial statements included in Form 10-Q.
STONY BROOK, NY / ACCESS Newswire / August 14, 2025 / Applied DNA Sciences, Inc. (NASDAQ:APDN) (“Applied DNA” or the “Company”), a biotechnology company focused on providing nucleic acid production solutions for the biopharmaceutical and diagnostics industries, today reported financial results for its third quarter of fiscal 2025 ended June 30, 2025. The Company’s Form 10-Q for its fiscal third quarter can be viewed on the SEC Filings page of its Investor Relations website. The Company will not host a conference call to discuss these results. Applied DNA investor relations remains available for questions at investors@adnas.com .
Following its previously announced recent restructuring and workforce reductions (“Corporate Actions”), the Company, through its majority-owned LineaRx, Inc. subsidiary, has transitioned to a pure play provider of synthetic DNA and mRNA manufacturing solutions for advanced biotherapeutics, such as gene therapies, personalized medicine, adoptive cell therapies, messenger RNA (mRNA) therapeutics, and DNA vaccines, as well as diagnostic applications that utilize chemically-modified DNA. The Company is commercializing three distinct and complementary technology solutions for DNA production:
LineaDNA™: A proprietary, cell-free DNA production platform that uses a large-scale PCR process to rapidly and efficiently produce high-fidelity, synthetic DNA as a market-ready alternative to plasmid DNA (pDNA). LineaDNA is applicable to biotherapeutics development and production, serving as the starting material for mRNA therapeutics and vaccines and as a critical component in numerous in vitro diagnostics (IVDs).
LineaRNAP™: A next-generation T7 RNA polymerase (RNAP) used to transcribe DNA into mRNA. Designed as a direct replacement for wild-type T7 RNAP currently utilized in conventional IVT mRNA systems that use synthetic or pDNA templates, LineaRNAP incorporates a patented DNA-binding domain that delivers high mRNA yields while reducing double-stranded RNA (dsRNA) contamination, the latter a common byproduct in mRNA production.
LineaIVT™: An integrated system that combines the LineaDNA and LineaRNAP technologies and their respective benefits. For mRNA manufacturers, we believe LineaIVT offers reduced dsRNA contamination and expedited mRNA drug substance production, among other advantages.
Management Commentary
“Our operational activities center on repositioning Applied DNA as a single business that is aligned with our proven core competencies, which underpin our commercially available, cell-free DNA and mRNA manufacturing solutions offerings. With operations now right-sized, coupled with active marketing under the LineaRx brand that is now synonymous with synthetically produced DNA, we look forward to delivering value to shareholders,” stated Judy Murrah, chairperson, president, and CEO of Applied DNA.
Recent Corporate and Operational Updates
Financial
Monthly net cash burn from operations in the reported quarter declined approximately 19% on a sequential basis and 25% compared to the prior year period due to cost-cutting and optimization initiatives implemented in prior quarters. The Company expects a further reduction in the quarter ending September 30, 2025, reflecting the implementation of Corporate Actions.
Customer Acquisition and Repeat Orders
Received a multi-gram follow-on order for LineaDNA valued at over $600 thousand from a global manufacturer of IVDs for use in a cancer diagnostic application.
Added a U.S.-based mRNA contract development manufacturing organization as a customer for LineaDNA IVT templates. This customer is also evaluating LineaRNAP.
Shipped multiple LineaDNA sequences to a U.S.-based developer of a novel vaccine delivery system.
Subsequent to quarter-end, sales quotes were provided to a large public biotech and a multinational biotech tools company for LineaDNA to be used in gene editing applications.
Product and Platform Development
Launched the LineaRx IVT Discovery Kit, which enables potential customers to easily and rapidly evaluate the benefits of LineaDNA and LineaIVT performance against conventional mRNA production methods.
Launched industry marketing for LineaRNAP as a standalone product based on recent Company data confirming that LineaRNAP can be used in conventional mRNA production workflows to enable higher mRNA yields and integrity with reduced dsRNA as compared with conventional wild-type T7 RNAP. The Company also continues to market LineaRNAP as a component of its integrated LineaIVT solution.
Initiated ISO 13485 certification, an internationally recognized quality management standard aligned with GMP, to enhance customer trust, expand market opportunities, and elevate LineaRx’s competitive position. The Company expects to be ISO 13485-certified in the first quarter of fiscal 2026.
Participated in multiple mRNA-focused conferences to engage potential customers and showcase its platforms’ capabilities as part of LineaRx’s ongoing sales and marketing strategy.
Third Quarter Fiscal 2025 Financial Highlights
As part of the Corporate Actions, the Company announced the closure of its MDx Testing Services business segment (Applied DNA Clinical Labs) to focus exclusively on LineaRx. Financial results for the reported and prior periods have been recast to separately report discontinued operations and the results of continuing operations.
In February 2025, the Company announced the wind down of its DNA Tagging and Security Products and Services business segment and continues to terminate business activities in this segment in accordance with customer agreements. Financial results for this segment are included in the results of continuing operations for the reported and prior periods.
Please refer to segment information detailed in the ‘Note H – Segment Information’ section of the Form 10-Q for the period reported for more information.
On March 13, 2025, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-fifty (1:50) reverse stock split of its common stock, par value $0.001 per share, effective March 14, 2025. On May 29, 2025, the Company filed a Certificate of Amendment of its Certificate of Incorporation with the Secretary of State of the State of Delaware that effected a one-for-fifteen (1:15) reverse stock split of its common stock, par value $0.001 per share, effective June 2, 2025. All warrant, option, share, and per share information in this press release gives retroactive effect to these reverse stock splits.
Summary Financial Results
Total revenues: $304 thousand compared to $473 thousand in the third quarter of fiscal 2024.
Operating loss: $3.7 million, compared to an operating loss of $3.3 million in the prior period.
Adjusted EBITDA: Negative $3.9 million, compared to negative $3.2 million in the prior period.
Monthly net cash burn: Monthly net cash burn from operations in the reported period was $934 thousand, compared to $1.15 million in the second quarter of fiscal 2025 and $1.25 million in the prior fiscal year period.
Cash and cash equivalents as of June 30, 2025: $4.7 million, which includes $723 thousand of proceeds from the exercise of Series A warrants received during the reported period. Additional proceeds totaling $292 thousand were received subsequent to the reported period from the exercise of Series A warrants.
Information about Non-GAAP Financial Measures
As used herein, “GAAP” refers to accounting principles generally accepted in the United States of America. To supplement our condensed consolidated financial statements prepared and presented in accordance with GAAP, this earnings release includes Adjusted EBITDA and monthly net cash burn from operations, which are non-GAAP financial measures as defined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission. Generally, a non-GAAP financial measure is a numerical measure of a company’s historical or future performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information presented in accordance with GAAP. We use this non-GAAP financial measure for internal financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core businesses. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the performance of our businesses by excluding non-cash expenses that may not be indicative of our recurring operating results. We believe these non-GAAP financial measures are useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
“EBITDA” – is defined as earnings (loss) before interest expense, income tax expense and depreciation and amortization expense.
“Adjusted EBITDA” – is defined as EBITDA adjusted to exclude (i) stock-based compensation and (ii) other non-cash expenses and non-cash gains/income.
“Monthly net cash burn” – is defined as total monthly cash outflow, including all operating costs, reduced by cash inflow from revenue.
About Applied DNA Sciences
Applied DNA Sciences is a biotechnology company focused on providing nucleic acid production solutions for the biopharmaceutical and diagnostics industries. Through its majority-owned subsidiary, LineaRx, Inc., the Company is commercializing its LineaDNA™, LineaRNAP™, and LineaIVT™ platforms to enable the manufacture of next-generation nucleic acid-based therapies.
The statements made by Applied DNA in this press release may be “forward-looking” in nature within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe Applied DNA’s future plans, projections, strategies, and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Applied DNA. These forward-looking statements are based largely on the Company’s expectations and projections about future events and future trends affecting our business and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements, including statements regarding its goal to position the Company for long-term growth and value creation and the potential to achieve that goal, including the future success of its LineaDNA, LineaRNAP and LineaIVT technologies. Actual results could differ materially from those projected due to its history of net losses, limited financial resources, unknown future ability to remain compliant with all Nasdaq listing standards, unknown future demand for its biotherapeutics products and services, the unknown amount of revenues and profits that will result from its technologies, the fact that there has never been therapeutic clinical trial material and/or a commercial drug product produced utilizing its technologies, whether its restructuring will position the Company for future growth potential, as well as various other factors detailed from time to time in Applied DNA’s SEC reports and filings, including its Annual Report on Form 10-K filed on December 17, 2024, Forms 10-Q filed on February 13, 2025, May 15, 2025, and August 14, 2025, and other reports it files with the SEC, which are available at www.sec.gov . Applied DNA undertakes no obligation to update publicly any forward-looking statements to reflect new information, events, or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless otherwise required by law.
APPLIED DNA SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
June 30,
September 30,
2025
2024
ASSETS
(unaudited)
Current assets:
Cash and cash equivalents
$
4,727,677
$
5,852,363
Accounts receivable, net of allowance for credit losses of $80,423 and $75,000 at June 30, 2025 and September 30, 2024, respectively
199,047
328,252
Inventories
338,723
432,725
Prepaid expenses and other current assets
338,447
756,185
Current assets of discontinued operations
25,008
678,146
Total current assets
5,628,902
8,047,671
Property and equipment, net
511,203
458,895
Noncurrent assets of discontinued operations
11,264
94,337
Other assets:
Restricted cash
750,000
750,000
Intangible assets
2,698,975
2,698,975
Operating right of use asset
334,402
739,162
Total assets
$
9,934,746
$
12,789,040
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
1,564,707
$
1,737,366
Operating lease liability, current
334,403
545,912
Deferred revenue
12,285
58,785
Current liabilities of discontinued operations
124,565
56,061
Total current liabilities
2,035,960
2,398,124
Long term accrued liabilities
31,467
31,467
Deferred revenue, long term
194,000
194,000
Operating lease liability, long term
–
193,249
Deferred tax liability, net
684,115
684,115
Warrants classified as a liability
1,160
320,000
Total liabilities
2,946,702
3,820,955
Commitments and contingencies (Note G)
Applied DNA Sciences, Inc. stockholders’ equity:
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of June 30, 2025 and September 30, 2024
–
–
Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of June 30, 2025 and September 30, 2024
–
–
Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of June 30, 2025 and September 30, 2024
–
–
Common stock, par value $0.001 per share; 200,000,000 shares authorized as of June 30, 2025, and September 30, 2024; 901,500 and 13,755 shares issued and outstanding as of June 30, 2025, and September 30, 2024, respectively
902
14
Additional paid in capital
381,150,267
318,815,358
Accumulated deficit
(373,888,601
)
(309,672,755
)
Applied DNA Sciences, Inc. stockholders’ equity
7,262,568
9,142,617
Noncontrolling interest
(274,524
)
(174,532
)
Total equity
6,988,044
8,968,085
Total liabilities and equity
$
9,934,746
$
12,789,040
APPLIED DNA SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three months Ended June 30,
Nine months Ended June 30,
2025
2024
2025
2024
Revenues
Product revenues
$
195,262
$
246,644
$
1,239,747
$
947,086
Service revenues
109,131
226,145
697,759
678,777
Total revenues
304,393
472,789
1,937,506
1,625,863
Cost of product revenues
299,263
230,188
930,619
853,034
Gross profit
5,130
242,601
1,006,887
772,829
Operating expenses:
Selling, general and administrative
2,930,627
2,635,863
8,423,602
8,440,919
Research and development
768,563
913,031
2,632,931
2,762,040
Total operating expenses
3,699,190
3,548,894
11,056,533
11,202,959
LOSS FROM OPERATIONS
(3,694,060
)
(3,306,293
)
(10,049,646
)
(10,430,130
)
Interest income
40,267
29,688
168,762
33,989
Transaction costs allocated to warrant liabilities
–
–
–
(633,198
)
Unrealized gain on change in fair value of warrants classified as a liability
6,410
5,160,000
318,840
9,564,000
Unrealized loss on change in fair value of warrants classified as a liability – warrant modification
–
–
–
(394,000
)
Loss on issuance of warrants
–
–
–
(1,633,767
)
Other expense, net
(531
)
(103
)
(23,778
)
(9,060
)
(Loss) income before provision for income taxes
(3,647,914
)
1,883,292
(9,585,822
)
(3,502,166
)
Provision for income taxes
–
–
–
–
Net (loss) income from continuing operations
$
(3,647,914
)
$
1,883,292
$
(9,585,822
)
$
(3,502,166
)
Net loss from discontinued operations, net of tax
(336,195
)
(33,791
)
(403,120
)
(272,397
)
NET (LOSS) INCOME
$
(3,984,109
)
$
1,849,501
$
(9,988,942
)
$
(3,774,563
)
Less: Net loss attributable to noncontrolling interest
38,746
30,295
99,992
78,785
NET (LOSS) INCOME attributable to Applied DNA Sciences, Inc.
$
(3,945,363
)
$
1,879,796
$
(9,888,950
)
$
(3,695,778
)
Deemed dividend related to warrant modifications
(15,500,244
)
–
(54,326,896
)
(233,087
)
NET (LOSS) INCOME attributable to common stockholders
$
(19,445,607
)
$
1,879,796
$
(64,215,846
)
$
(3,928,865
)
Net (loss) income per share attributable to common stockholders-basic and diluted from continuing operations
$
(33.41
)
$
1,191.52
$
(255.14
)
$
(4,862.32
)
Net loss per share attributable to common stockholders-basic and diluted from discontinued operations
(0.59
)
(21.04
)
(1.61
)
(362.23
)
Net (loss) income per share attributable to common stockholders-basic and diluted
$
(34.00
)
$
1,170.48
$
(256.75
)
$
(5,224.55
)
Weighted average shares outstanding- basic and diluted
572,018
1,606
250,107
752
APPLIED DNA SCIENCES, INC. CALCULATION AND RECONCILIATION OF ADJUSTED EBITDA (unaudited)
Three-Month Period Ended June 30,
2025
2024
Net loss
$
(3,984,109
)
$
1,849,501
Interest income
(40,267
)
(29,688
)
Depreciation and amortization
78,346
134,163
Stock-based compensation expense
24,889
30,336
Unrealized (loss) on change in fair value of warrants classified as a liability
Medical Interview Preparation is rolling out a series of digital products to improve how aspiring medical professionals get ready for their interviews. These tools make the preparation process more interactive and convenient, ensuring it’s thorough and accessible for everyone involved.
Among the offerings are online tools such as e-books, video tutorials, webinars, and full online courses. Each of these tools is designed to meet the varied needs of candidates preparing for their medical interviews. This allows candidates to tailor their study sessions to fit their unique schedules and learning styles. This adaptability means candidates can work on their medical consultant interview preparation whenever it suits them.
What sets these digital products apart is how they focus on practical application. With mock interviews and scenario-based exercises, candidates can practice in settings that mimic real interview situations. This hands-on approach helps them apply theoretical knowledge and reflect on their performance, getting them ready for the types of questions they might face during actual interviews.
Nalin Wickramasuriya, a notable figure in the medical field and head coach at Medical Interview Preparation, emphasizes the importance of having a practical mindset in interviews. Wickramasuriya points out, “Be conversational in your interview by explaining the ways in which you can help the patients and the department you are aiming to join. It’s crucial to avoid treating the interview like a viva exam from medical school days.”
This approach resonates with the entire range of the company’s digital products, encouraging candidates to engage in genuine conversations and communicate clearly with interviewers. The focus is to move beyond traditional study methods and push candidates to think critically about the roles they are pursuing.
Another vital component of these digital products is community support. Online forums and collaborative study groups offer a space for candidates to connect, share insights, and learn from one another’s experiences. This shared learning environment helps create a sense of community among candidates, which can ease the stress often associated with interview preparation.
Medical Interview Preparation has found that candidates who incorporate digital programs into their preparation, especially those who participate in four online coaching sessions, achieve a 97% success rate in UK consultant interviews. This high success rate highlights how effective these digital programs are, combining well-structured content with personal coaching and peer-to-peer interaction.
The mission of providing medical interview help is central to Medical Interview Preparation. They offer a wide range of services, from one-on-one consultations to group programs, all of which complement their digital tools and offer support for every stage of the preparation process. Whether it’s personalized advice, group exercises, or self-paced learning, Medical Interview Preparation equips candidates with everything needed to succeed.
The launch of these digital tools is a significant advancement toward making medical interview preparation more efficient and accessible. By integrating technology with their services, the company shows its dedication to adapting to the needs of future medical professionals, emphasizing readiness and adaptability in a fast-paced field.
Aspiring candidates who want to improve their interview skills and learn the best strategies should check out these new digital resources. These tools are designed to help candidates present themselves well and face the challenges of medical interviews with confidence.
Anyone interested in exploring the variety of digital products and services, or seeking more information on medical consultant interview preparation methods, can find additional resources and guidance by visiting the company’s website. This is an ideal starting point for every aspiring medical professional on their journey. Additionally, clients can access a free guide on how to achieve desirable interview outcomes while overcoming common challenges, providing even more value for individuals preparing for medical interviews.
Las Vegas Homes By Leslie – RE/MAX United Realtor has announced new listings for the Dakota Condos in The Canyons at Summerlin. Led by Leslie Hoke, a well-respected realtor, the company focuses on connecting clients with homes that fit their needs perfectly. They value transparency and provide expert guidance in all their property listings. The listings for the Dakota Condos include detailed information, which helps buyers make smart decisions.
The condos in Summerlin come with great amenities and are situated in a prime location. Leslie Hoke and her team have put together six listings with prices from $339,000 to $418,000. Each listing is thorough, offering property descriptions, photos, number of bedrooms and bathrooms, square footage, and zoning details. Buyers looking for more can find maps and additional property features through linked pages.
Leslie Hoke is dedicated to giving buyers all the info they need to find the right home. She stated, “We focus on ensuring our clients receive all the necessary details to make informed decisions. Our property listings are designed to give prospective buyers a clear picture of what to expect.” This shows how focused the company is on the needs of their clients.
The company highlights important community information for those interested in the Dakota Condos and nearby areas in The Canyons Village at Summerlin. The Dakota Condos page also links to other local properties. This thorough approach not only showcases the properties but also keeps clients in the know about the area and available amenities.
Understanding the community plays a crucial role for buyers, as Leslie Hoke noted: “Understanding the community is just as important as the home itself. We provide comprehensive community data so our buyers know exactly what each neighborhood offers. It’s about creating an environment where our buyers feel confident in their decisions.”
The approach at Las Vegas Homes By Leslie – RE/MAX United Realtor combines deep market knowledge, comprehensive listings, and a focus on the client’s needs. By blending these elements, Leslie Hoke’s team continues to offer outstanding service and support throughout the home-buying process. Their professional experience and understanding of the Las Vegas market keep them as a leading force in real estate, helping buyers efficiently and effectively on their journey to home ownership.
Beyond listing properties, Las Vegas Homes By Leslie – RE/MAX United Realtor offers valuable guidance through the buying process. They provide various services including property management and help with new home construction. From loan pre-approval to offering market trends and statistics, Leslie and her team aim to ease the complexities of the Las Vegas real estate market.
The Dakota Condos listings form part of the company’s diverse offerings, reflecting how they cater to different client needs. Whether someone is searching for a townhome, condo, single-family home, luxury estate, or a neighborhood bursting with community spirit, Leslie Hoke’s team is ready to provide tailored options.
Potential clients should feel free to reach out to Leslie Hoke and her team for any questions about the Dakota Condos or other Las Vegas real estate interests. Those looking to explore the available condos can find detailed listings on the company’s website. Further information can be accessed at https://www.lasvegashomesbyleslie.com/dakota-condos-for-sale.php.
New York State County Supreme Court, Commercial Division, approves previously announced settlement
MONTREAL, QC / ACCESS Newswire / August 14, 2025 / Vision Marine Technologies Inc. (NASDAQ:VMAR) (“Vision Marine” or the “Company”) today announced that, on August 13, 2025, the New York State County Supreme Court, Commercial Division, formally approved the Company’s settlement of an outstanding legal claim related to certain of its shareholders, which was previously announced on May 16, 2025.
About Vision Marine Technologies Inc. Vision Marine Technologies Inc. (NASDAQ:VMAR) is a pioneer innovative marine company that offers premium boating experiences across both electric and internal combustion engine (ICE) segments. The Company designs, manufactures, and sells high-performance electric powertrain systems and boats, and operates a multi-brand boat retail and service platform through its Nautical Ventures division. With a vertically integrated model that spans technology, retail, and service, Vision Marine delivers scalable, market-ready solutions that enhance the on-water experience for consumers and commercial operators.
Completed divestiture of FaZe Media on April 1, 2025
Treasury management strategy launched on July 1, 2025, backed by crypto pioneers, expected to benefit financial results in the 2025 third quarter and beyond
The second half of 2025 positioned for revenue growth, enhanced margins, and reduced operating expenses
FRISCO, TEXAS / ACCESS Newswire / August 14, 2025 / GameSquare Holdings, Inc. (NASDAQ:GAME), (“GameSquare”, or the “Company”), today announced financial results for the three- and six-months ended June 30, 2025.
Justin Kenna, CEO of GameSquare, stated, “2025 is on track to be a transformative year for GameSquare as we aggressively execute against a bold vision aimed at building a leading digital-first platform at the intersection of media, technology, esports, and onchain finance. Since January, we’ve taken decisive actions by divesting our remaining stake in FaZe Media, restructuring our operations to streamline costs, forming a strategic alliance with GGTech Entertainment, and doubling down on high-growth areas across our Experiences, Managed Services, and Technology business units, all to position us for unparalleled success.”
“In July, after months of detailed planning, we launched what we believe is one of the most sophisticated Ethereum-based treasury strategies in the market and backed by crypto industry pioneers including Ryan Zurrer of Dialectic, Robert Leshner of Superstate, and Rhydon Lee of Goff Capital. Our $250 million authorized onchain treasury management program leverages Medici, Dialectic’s proprietary platform that combines machine learning, automated optimization, and multi-layered risk controls. In connection with the launch, we raised approximately $90 million in gross proceeds, which has strengthened our balance sheet and funded the initial phase of our treasury strategy,” Mr. Kenna continued.
“We are currently in active discussions with more than 15 crypto-native organizations seeking partners with proven capabilities to help them reach and engage audiences at scale. GameSquare’s established operating platform positions us uniquely to meet this demand. We believe these relationships will not only deepen our presence in the onchain ecosystem but also generate incremental, high-margin revenue streams. Based on our current pipeline, we expect initial wins to begin in the third quarter and building further into the fourth, creating another powerful growth driver for our business.”
“GameSquare now has the strongest financial position in its history, giving us the flexibility to invest in growth, generate yield from our crypto assets, and opportunistically repurchase our stock. In the second half of the year, we are focused on achieving profitability, benefiting from core revenue growth, improved gross margin, lower operating expenses, and the impact of our restructuring initiatives. We believe the combination of our innovative onchain strategy and the improving performance of our operating businesses positions GameSquare as a powerful platform for long-term value creation,” concluded Mr. Kenna.
GameSquare’s Treasury Management Assets at August 13, 2025:
Ethereum (“ETH”) Assets: The Company held 15,630.07 ETH, with an original cost basis and market value of $55 million and $74.3 million, respectively, which reflects an average cost per ETH of approximately $3,519, and a market price per ETH of $4,751, respectively.
Unrealized ETH Gains – As of August 13, 2025, the Company had approximately $19.3 million in unrealized gains on its Ethereum holdings.
NFT Holdings: As of August 13, 2025, the Company owned CryptoPunk #5577, one of only 24 Ape CryptoPunks in existence, which the Company purchased on July 24, 2025 for $5.15 million. 1OF1 AG, is managing GameSquare’s NFT yield strategy and is targeting annualized yields of 6% to 10%.
Yield Strategy: GameSquare’s onchain yield strategy with Dialectic commenced August 1, 2025 and is targeting annualized yields of 8% to 14%.
Total ETH + Cash: The Company had $99 million in ETH, NFT and cash, or $1.00 per share and total debt of just $1.25 million as of August 13, 2025.
Three months ended June 30, 2025, compared to June 30, 2024
Revenue of $15.9 million, compared to $17.8 million
Gross profit of $2.4 million, compared to $2.5 million
Net loss attributable to GameSquare of $3.0 million, compared to a net loss of $11.6 million
Adjusted EBITDA loss of $3.5 million, compared to a loss of $4.2 million
Adjusted EBITDA loss was 22.1% of revenue, versus 23.4% of revenue last year
Reported results for the six months ended June 30, 2025, compared to June 30, 2024
Revenue of $30.6 million, compared to $33.4 million
Gross profit of $5.8 million, compared to $4.6 million
Net loss attributable to GameSquare of $8.2 million, compared to a net loss of $16.9 million
Adjusted EBITDA loss of $6.5 million, compared to a loss of $8.7 million
Adjusted EBITDA loss was 21.1% of revenue, versus 26.0% of revenue last year
Updated 2025 Outlook
As a result of the strong performance since the launch on July 1, 2025 of GameSquare’s Ethereum-based treasury management strategy, and continued restructuring initiatives aimed at streamlining operations and accelerating the path to profitability the Company expects to reintroduce full-year guidance in the third quarter of 2025.
The Company believes its operating and financial trajectory in the second half of 2025 will be significantly stronger, driven by:
Launch of Ethereum Yield Strategy – On August 1, 2025, GameSquare began deploying Ethereum holdings through Dialectic’s Medici platform, targeting annualized onchain yields of 8% to 14%.
Unrealized ETH Gains – As of August 13, 2025, the Company had approximately $19.3 million in unrealized gains on its Ethereum holdings.
Back-Half Revenue Weighting – Approximately 60% of 2025 core revenue is expected to be generated in the second half of the year, in line with typical seasonal trends. Agency and Teams revenue tends to be more profitable and is expected to improve consolidated gross margin in the second half of the year.
Pipeline Timing – Opportunities that shifted out of the second quarter are now on track to close in the coming months. GameSquare expects meaningful sequential growth, with third quarter revenue higher than second quarter and fourth quarter building further on that growth, supported by both new wins and expansion with existing partners.
Restructuring Impact – Ongoing restructuring initiatives are expected to lower operating expenses in the second half of 2025 and the Company has identified an additional $5 million in annualized savings that are expected to begin contributing in the third quarter.
GameSquare remains confident that the combination of an improving operating profile and the contribution from its onchain treasury strategy provides a powerful foundation for long-term growth and shareholder value creation.
Conference Call Details
Justin Kenna, CEO, Lou Schwartz, President, and Mike Munoz CFO are scheduled to host a conference call with the investment community. Analysts and interested investors can join the call via the details below:
Corporate Contact Lou Schwartz, President Phone: (216) 464-6400 Email: ir@gamesquare.com
Investor Relations Andrew Berger Phone: (216) 464-6400 Email: ir@gamesquare.com
Media Relations Chelsey Northern / The Untold Phone: (254) 855-4028 Email: pr@gamesquare.com
About GameSquare Holdings, Inc.
GameSquare (NASDAQ:GAME) is a cutting-edge media, entertainment, and technology company transforming how brands and publishers connect with Gen Z, Gen Alpha, and Millennial audiences. With a platform that spans award-winning creative services, advanced analytics, and FaZe Clan, one of the most iconic gaming organizations, we operate one of the largest gaming media networks in North America. Complementing our operating strategy, GameSquare operates a blockchain-native Ethereum treasury management program designed to generate onchain yield and enhance capital efficiency, reinforcing our commitment to building a dynamic, high-performing media company at the intersection of culture, technology, and next-generation financial innovation.
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company’s future performance, revenue, growth and profitability; and the Company’s ability to execute on its current and future business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability. Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company’s ability to grow its business and being able to execute on its business plans, the success of Company’s vendors and partners in their provision of services to the Company, the Company being able to recognize and capitalize on opportunities and the Company continuing to attract qualified personnel to supports its development requirements. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the Company’s ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company’s portfolio across entertainment and media platforms, dependence on the Company’s key personnel and general business, economic, competitive, political and social uncertainties. These risk factors are not intended to represent a complete list of the factors that could affect the Company which are discussed in the Company’s most recent MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
GameSquare Holdings, Inc. Consolidated Balance Sheets (Unaudited)
June 30, 2025
December 31, 2024
Assets
Cash
$
4,697,832
$
12,094,950
Restricted cash
1,789,259
1,054,030
Accounts receivable, net
12,954,496
21,330,847
Government remittances
121,617
119,721
Promissory note receivable, current
176,647
379,405
Prepaid expenses and other current assets
884,038
1,493,619
Total current assets
20,623,889
36,472,572
Investment
2,199,909
2,199,909
Promissory note receivable
8,754,585
9,212,785
Property and equipment, net
119,989
303,950
Goodwill
5,557,551
12,704,979
Intangible assets, net
5,231,027
15,265,736
Right-of-use assets
1,600,843
2,570,516
Total assets
$
44,087,793
$
78,730,447
Liabilities and Shareholders’ Equity
Accounts payable
$
26,129,652
$
27,349,372
Accrued expenses and other current liabilities
11,174,343
13,694,179
Players liability account
47,535
47,535
Deferred revenue
2,473,552
2,726,121
Current portion of operating lease liability
425,461
748,916
Line of credit
3,228,001
3,501,457
Promissory note payable, current
2,871,076
–
Convertible debt carried at fair value
1,669,330
6,481,704
Warrant liability
27,164
14,314
Arbitration reserve
210,008
199,374
Total current liabilities
48,256,122
54,762,972
Convertible debt carried at fair value
–
9,908,784
Operating lease liability
1,374,054
2,054,443
Total liabilities
49,630,176
66,726,199
Commitments and contingencies (Note 14)
Preferred stock ($0.001 par value, 50,000,000 authorized, zero shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively)
–
–
Common stock and Additional paid-in capital ($0.001 par value, 100,000,000 shares authorized, 39,123,968 and 32,635,995 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively)
125,396,697
119,441,634
Accumulated other comprehensive loss
(594,074
)
(208,617
)
Non-controlling interest
–
14,942,287
Accumulated deficit
(130,345,006
)
(122,171,056
)
Total shareholders’ equity
(5,542,383
)
12,004,248
Total liabilities and shareholders’ equity
$
44,087,793
$
78,730,447
GameSquare Holdings, Inc. Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Revenue
$
15,852,706
$
17,829,175
$
30,583,937
$
33,406,699
Cost of revenue
13,426,252
15,307,881
24,793,857
28,816,057
Gross profit
2,426,454
2,521,294
5,790,080
4,590,642
Operating expenses:
General and administrative
4,076,391
4,917,730
8,350,837
9,402,195
Selling and marketing
1,497,096
1,636,571
2,944,853
3,449,227
Research and development
557,403
585,031
1,113,010
1,189,305
Depreciation and amortization
302,360
564,346
558,825
1,182,368
Restructuring charges
165,328
–
782,541
–
Other operating expenses
547,188
994,717
1,292,565
2,088,137
Total operating expenses
7,145,766
8,698,395
15,042,631
17,311,232
Loss from continuing operations
(4,719,312
)
(6,177,101
)
(9,252,551
)
(12,720,590
)
Other income (expense), net:
Interest income (expense)
44,590
(192,257
)
(4,968
)
(627,385
)
Change in fair value of convertible debt carried at fair value
(5,561
)
563,360
327,916
456,759
Change in fair value of warrant liability
(17,731
)
15,643
(12,384
)
52,900
Arbitration settlement reserve
(66,217
)
43,500
(10,634
)
138,625
Other income (expense), net
(1,274,450
)
(3,913,773
)
(1,347,992
)
(4,031,043
)
Total other income (expense), net
(1,319,369
)
(3,483,527
)
(1,048,062
)
(4,010,144
)
Loss from continuing operations before income taxes
(6,038,681
)
(9,660,628
)
(10,300,613
)
(16,730,734
)
Income tax benefit
–
–
–
–
Net loss from continuing operations
(6,038,681
)
(9,660,628
)
(10,300,613
)
(16,730,734
)
Net income (loss) from discontinued operations
3,020,335
(2,342,513
)
108,531
(533,355
)
Net loss
(3,018,346
)
(12,003,141
)
(10,192,082
)
(17,264,089
)
Net loss attributable to non-controlling interest
–
389,590
2,018,132
389,590
Net loss attributable to attributable to GameSquare Holdings, Inc.
$
(3,018,346
)
$
(11,613,551
)
$
(8,173,950
)
$
(16,874,499
)
Comprehensive loss, net of tax:
Net loss
$
(3,018,346
)
$
(12,003,141
)
$
(10,192,082
)
$
(17,264,089
)
Change in foreign currency translation adjustment
(547,983
)
(540,813
)
(385,457
)
13,183
Comprehensive loss
(3,566,329
)
(12,543,954
)
(10,577,539
)
(17,250,906
)
Comprehensive income attributable to non-controlling interest
–
389,590
2,018,132
389,590
Comprehensive loss
$
(3,566,329
)
$
(12,154,364
)
$
(8,559,407
)
$
(16,861,316
)
Income (loss) per common share attributable to GameSquare Holdings, Inc. – basic and assuming dilution:
From continuing operations
$
(0.15
)
$
(0.32
)
$
(0.27
)
$
(0.70
)
From discontinued operations
0.08
(0.06
)
0.06
(0.01
)
Loss per common share attributable to GameSquare Holdings, Inc. – basic and assuming dilution
$
(0.08
)
$
(0.38
)
$
(0.22
)
$
(0.71
)
Weighted average common shares outstanding – basic and diluted
38,968,089
30,442,837
37,850,112
23,905,674
Management’s use of Non-GAAP Measures
This release contains certain financial performance measures, including “EBITDA” and “Adjusted EBITDA,” that are not recognized under accounting principles generally accepted in the United States of America (“GAAP”) and do not have a standardized meaning prescribed by GAAP. As a result, these measures may not be comparable to similar measures presented by other companies. For a reconciliation of these measures to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.
We believe EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define “EBITDA” as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense.
Adjusted EBITDA
We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define “Adjusted EBITDA” as EBITDA adjusted to exclude extraordinary items, non-recurring items and other non-cash items, including, but not limited to (i) share based compensation expense, (ii) transaction costs related to merger and acquisition activities, (iii) arbitration settlement reserves and other non-recurring legal settlement expenses, (iv) restructuring costs, primarily comprised of employee severance resulting from integration of acquired businesses, (v) impairment of goodwill and intangible assets, (vi) gains and losses on extinguishment of debt, (vii) change in fair value of assets and liabilities adjusted to fair value on a quarterly basis, (viii) gains and losses from discontinued operations, and (ix) net income (loss) attributable to non-controlling interest.
Reconciliation of Non-GAAP Measures
A reconciliation of Adjusted EBITDA to the most directly comparable measure determined under US GAAP is set out below. (Unaudited)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Net loss
$
(3,018,346
)
$
(12,003,141
)
$
(10,192,082
)
$
(17,264,089
)
Interest expense
(44,590
)
192,257
4,968
627,385
Income tax benefit
–
–
–
–
Amortization and depreciation
302,360
564,346
558,825
1,182,368
Share-based payments
5,616
602,139
34,614
1,021,367
Transaction costs
547,188
1,037,044
1,292,565
2,130,464
Arbitration settlement reserve
66,217
(43,500
)
10,634
(138,625
)
Restructuring costs
165,328
–
782,541
–
Change in fair value of contingent consideration
–
(42,327
)
–
(42,327
)
Change in fair value of warrant liability
17,731
(15,643
)
12,384
(52,900
)
Change in fair value of convertible debt carried at fair value
CEO Allan Evans Shares Q3 2025 Highlights and Provides Strategic Insight into the Company’s Plans
ORLANDO, FLORIDA / ACCESS Newswire / November 6, 2025 / Unusual Machines, Inc. (NYSE American:UMAC) (“Unusual Machines” or the “Company”), a leading provider of NDAA-compliant drone components, today announced it filed its Form 10-Q with the U.S. Securities and Exchange Commission for the third quarter of 2025 and provided the following letter to its shareholders from CEO Allan Evans.
Dear Shareholders,
This shareholder letter follows the completion of our third quarter of 2025. It has been another record revenue quarter. It is also our first profitable quarter with a net gain of $0.05 per share. We achieved the highest margins in our history and saw great returns on our corporate investments. We closed a financing for $48.5 million of gross proceeds during the quarter and raised another $72.1 million in gross proceeds last month on our ATM. We want to take this opportunity to provide context and deeper insights into our business and discuss Unusual Machines’ future.
Operations Update
Unusual Machines revenue for the third quarter was about $2.13 million which represents a year over year increase for the quarter of approximately 39%. This is our best revenue quarter of all time for the sixth consecutive quarter and was achieved through increasing enterprise sales offsetting weak consumer demand. For the first quarter ever, enterprise sales exceeded 50% of our total revenue. This allowed us to continue to improve gross margins to 39% which represents our highest quarterly margins to date. We expect the increase in enterprise sales to continue throughout 2025 and extend into 2026. We already have more than $16 million in purchase order commitments that we expect to fulfill in Q4 of 2025 through Q2 of 2026. We have a variety of GAAP results that obscure cashflow including $2.1 million in non-cash stock compensation expense and $5.8 million in unrealized gains from our investment strategy. Our non-GAAP adjusted numbers for the third quarter after taking into account the non-cash and non-recurring items resulted in an adjusted net loss from operations of $0.9 million (see Table 2).
Cash Position
We prioritize managing our cash position and cash flow. We started the third quarter with $38.9 million and finished the quarter with $64.3 million. We have subsequently raised an additional $72.1 million in gross proceeds through our ATM in October. The breakdown of the cash position change over the quarter (see Table 1) provides greater detail into our expenses. Total expenses are increasing as we rapidly grow, and we expect it to take a few quarters until revenue and operational gains catch up. We still absolutely prioritize prudent spending and are seeking to get to being consistently cash flow positive in late 2026.
Cap Table Changes
The financings have changed our capitalization table substantially. Unusual Machines now has 36.8 million of common shares outstanding with no shareholder to our knowledge owning more than 9.9% of the total. We have over $133 million in cash as of today (which includes the ATM, but excludes investments and inventory), and $0 in debt. Given the cash position, limited cash burn, improving revenues, and diversified shareholder base; we believe the company is in a very strong position to continue to grow quickly.
Looking Ahead
Our priorities moving forward are clear:
Grow Revenue: We are being aggressive. This quarter enterprise sales overtook consumer sales and we have over $16 million in purchase orders that we plan on fulfilling in less than a year. We expect these bookings to continue to increase as the government reopens and more of the 2025 and 2026 U.S. Government fiscal budgets are spent on drones.
Grow the Company: We have been scaling as quickly as we can. On Monday, we onboarded 31 new employees to help build motors and drone kits. We have expanded from our initial 7,000 square feet and expect to have approximately 70,000 square feet under lease by the end of 2025 with 60,000 square feet dedicated to manufacturing and fulfillment of drone components.
Get to Cash Flow Positive : We were profitable this quarter, but we don’t expect that to consistently happen over the next year. We are growing with the focus of our efforts driving us toward positive cash flow once we have scaled to the next revenue milestones. Accounting for growth, we expect to need $30 million in an annual revenue run rate to reach this target and are working toward getting there in 2026.
We are enthusiastic about the future of Unusual Machines. The company is in a great position to capitalize on enterprise sales and take advantage of macroeconomic factors to continue rapidly scaling. We are doing everything we can to capture market share and deliver great products for our customers. We appreciate you all for the confidence and support in our vision. Please reach out with any questions or comments.
Sincerely, Allan Evans CEO of Unusual Machines
Third Quarter Financial Results
Revenues totaled approximately $2.13 million for the three months ended September 30, 2025 as compared to $1.53 million for the three months ended September 30, 2024 which was a 39% increase for the third quarter year over year.
Revenues totaled approximately $6.30 million for the nine months ended September 30, 2025 as compared to pro forma revenue of $4.06 million for the nine months ended September 30, 2024, which represents a 55% increase for the first nine months year over year.
Gross margin for the third quarter was approximately 39%, which improved related to the increase in enterprise sales, increasing costs related to tariffs and expanding certain retail margins. Our gross margin for the first nine months of the year is approximately 34%.
Our loss from operations was approximately $4.9 million for the three months ended September 30, 2025 as compared to an operating loss of $1.4 million for the three months ended September 30, 2024. Included in this is non-cash stock compensation expense of $2.1 million and $0.4 million for the three months ended September 30, 2025 and 2024, respectively.
Interest income was $0.7 million for the three months ended September 30, 2025 related to interest earned from our cash balance which increased from our recent common stock offerings.
Unrealized gain from short term trading securities was $5.8 million for the three months ended September 30, 2025 related to investment gains from our investments made during the third quarter.
Net income attributable to common shareholders for the third quarter 2025 was approximately $1.6 million or $0.05 per share as compared to a net loss of approximately $2.1 million for the third quarter 2024 or $0.30 per share. The improvement in net income from a net loss position during the third quarter primarily related to the increase in our other income from unrealized gains in our short term trading securities and interest income.
We had approximately $64.3 million of cash as of September 30, 2025 as compared to $3.7 million as of December 31, 2024. The increase in cash primarily relates to our common stock offerings completed in May and July 2025 and cash exercise of warrants in February 2025. See table 1 for additional details.
For further information concerning our financial results, see the tables attached to this shareholders’ letter.
About Unusual Machines
Unusual Machines manufactures and sells drone components and drones across a diversified brand portfolio, which includes Fat Shark, the leader in FPV (first-person view) ultra-low latency video goggles for drone pilots. The Company also retails small, acrobatic FPV drones and equipment directly to consumers through the curated Rotor Riot e-commerce store. With a changing regulatory environment, Unusual Machines seeks to be a dominant component supplier to the fast-growing multi-billion-dollar US drone industry and the global defense business. According to Fact.MR, the global drone accessories market is currently valued at $17.5 billion and is set to top $115 billion by 2032.
This shareholder letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements include: our expectation that we will improve gross margins, grow the Company and grow our revenues, expand enterprise sales throughout 2025 and extend into 2025, our ability to become cash flow positive and the timing, our ability to achieve rapid growth, our expectation concerning the impact from tariffs and achieve GAAP validation, that we will be successful leasing a new facility and expand our manufacturing footprint and build our headset production capabilities, our ability to anticipate market conditions, and the impact that the uncertain regulatory environment may have on our ability to accurately model for and grow our consumer business. The results expected by some or all of these forward-looking statements may not occur. Factors that affect our ability to achieve these results include our expectation that we will commence operations in our new Orlando manufacturing facility in September 2025, the continued availability of commercial real estate near our Orlando, Florida facilities, the availability of a satisfactory labor pool, potential supply chain issues, the impact from tariffs including inflation, and the Risk Factors contained in our Form 10-Q, filed with the SEC on May 8, 2025, Prospectus Supplement filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025 and in our Form 10-K for the year ended December 31, 2024. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Any forward-looking statement made by us herein speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
This shareholder letter includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net income (loss), operating income (loss), and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
Our management uses and relies on adjusted net loss, which is a non-GAAP financial measure. We believe that management, analysts, and shareholders benefit from referring to the following non-GAAP financial measure to evaluate and assess our core operating results from period-to-period after removing the impact of items that affect comparability. Our management recognizes that the non-GAAP financial measure has inherent limitations because of the excluded items described below.
We have included in Table 2 a reconciliation of our non-GAAP financial measure to the most comparable financial measure calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance.
Table 1
Cash balance at June 30, 2025
$
38.9M
Q3 cash financings:
Registered direct offering
44.9M
Employee stock option exercises
0.2M
Interest income
0.7M
Q3 cash spend:
Normal operations
(1.0M)
Non-recurring legal and transaction expenses
(0.3M)
Non-recurring investor relations
(0.9M)
Inventory build up
(6.0M)
Motor facility equipment purchases
(1.3M)
Short-term investments
(11.0M)
Cash Balance at September 30, 2025
$
64.3M
Table 2
Net income for three months ended September 30, 2025
$
1.6M
Q3 non-cash income and expenses for the three months ended September 30, 2025:
Stock compensation expense
2.1M
Unrealized gains from short term investments
($5.8M)
Q3 non-recurring expenses for the three months ended September 30, 2025:
Investor relations
0.9M
Legal expenses related to acquisitions
0.3M
Adjusted net loss for the three months ended September 30, 2025
$
(0.9M)
Unusual Machines, Inc. Consolidated Condensed Balance Sheets
September 30, 2025
December 31, 2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
64,285,750
$
3,757,323
Short-term investments
16,849,713
–
Accounts receivable
309,544
66,575
Inventories
3,118,491
1,335,503
Prepaid inventory
6,921,679
904,728
Other current assets
218,871
31,500
Total current assets
91,704,048
6,095,629
Non-current assets:
Property and equipment, net
1,728,661
570
Operating lease right-of-use asset, net
1,268,278
323,514
Other assets
84,693
59,426
Goodwill
7,402,906
7,402,906
Intangible assets, net
2,164,264
2,225,530
Unallocated purchase price provisional, Rotor Lab (See note 3)
8,725,968
–
Total non-current assets
21,374,770
10,011,946
Total assets
$
113,078,818
$
16,107,575
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses
$
1,167,242
$
668,732
Operating lease liability
247,957
67,820
Deferred revenue
1,518,736
197,117
Contingent consideration
3,000,000
–
Total current liabilities
5,933,935
933,669
Non-current liabilities
Deferred tax liability
93,793
93,793
Operating lease liability – non-current
1,035,175
262,171
Total non-current liabilities
1,128,968
355,964
Total liabilities
7,062,903
1,289,633
Commitments and contingencies (See note 13)
Stockholders’ equity:
Preferred stock – $0.01 par value, 10,000,000 authorized (See note 10)
Series A preferred stock – $0.01 par value, 4,250 designated and 0 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively
–
–
Series B preferred stock – $0.01 par value, 1,000 designated and 0 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively
–
–
Series C preferred stock – $0.01 par value, 3,000 designated and 0 and 0 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively
–
–
Common stock – $0.01 par value, 500,000,000 authorized and 31,568,949 and 15,122,018 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively
Unusual Machines, Inc. Consolidated Condensed Statement of Operations For the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited)
Three months ended September 30,
Nine months ended September 30,
2025
2024
2025
2024
Revenues
$
2,134,588
$
1,531,264
$
6,300,857
$
3,561,303
Cost of goods sold
1,294,200
1,131,777
4,168,984
2,569,209
Gross Margin
840,388
399,487
2,131,873
992,094
Operating Expenses
Operations
636,705
218,126
1,343,584
544,220
Research and development
39,369
15,000
110,002
42,078
Sales and marketing
373,539
252,253
883,514
795,643
General and administrative
4,730,063
1,374,989
15,151,160
3,728,749
Depreciation and amortization
22,449
171
63,635
513
Total operating expenses
5,802,125
1,860,539
17,551,894
5,111,203
Loss from operations
(4,961,737
)
(1,461,052
)
(15,420,021
)
(4,119,109
)
Other income and (expense)
Interest income
715,489
180
942,755
180
Unrealized gain in short term investments
5,849,713
–
5,849,713
–
Interest expense
–
(41,465
)
–
(101,648
)
Loss on debt extinguishment
–
(685,151
)
–
(685,151
)
Change in fair value of derivatives and warrant liabilities
–
43,238
–
43,238
Other income and (expense)
6,565,202
(683,198
)
6,792,468
(743,381
)
Net income (loss)
$
1,603,465
$
(2,144,250
)
$
(8,627,553
)
$
(4,862,490
)
Net income (loss) per share attributable to common stockholders
Basic
$
0.05
$
(0.30
)
$
(0.38
)
$
(0.63
)
Diluted
$
0.05
$
(0.30
)
$
(0.38
)
$
(0.63
)
Weighted average common shares outstanding
Basic
30,002,179
7,147,866
22,610,516
7,749,285
Diluted
30,581,194
7,147,866
22,610,516
7,749,285
Unusual Machines, Inc. Consolidated Condensed Statement of Changes in Stockholders’ Equity For the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited)
Three and Nine Months Ended September 30, 2024
Series A, Preferred Stock
Series B, Preferred Stock
Series C, Preferred Stock
Common Stock
Additional Paid-In
Accumulated
Total Stockholders’
Shares
Value
Shares
Value
Shares
Value
Shares
Value
Capital
Deficit
Equity
Balance, December 31, 2023
–
$
–
190
$
2
–
$
–
3,217,255
$
32,173
$
5,315,790
$
(3,933,046
)
$
1,414,919
Issuance of common shares as settlement
–
–
–
–
–
–
16,086
161
64,183
–
64,344
Issuance of common shares, initial public offering, net of offering costs
–
–
–
–
–
–
1,250,000
12,500
3,837,055
–
3,849,555
Issuance of common shares, business combination
–
–
–
–
–
–
4,250,000
42,500
16,957,500
–
17,000,000
Conversion of preferred shares
–
–
(120
)
(1
)
–
–
600,000
6,000
(5,999
)
–
–
Net loss
–
–
–
–
–
–
–
–
–
(1,106,002
)
(1,106,002
)
Balance, March 31, 2024
–
$
–
70
$
1
–
$
–
9,333,341
$
93,334
$
26,168,529
$
(5,039,048
)
$
21,222,816
Conversion of preferred shares
–
–
(20
)
–
–
–
100,000
1,000
(1,000
)
–
–
Issuance of common shares, equity incentive plan
–
–
–
–
–
–
977,899
9,779
(9,779
)
–
–
Stock compensation expense – vested stock
–
–
–
–
–
–
–
–
346,854
–
346,854
Stock option compensation expense
–
–
–
–
–
–
–
–
14,389
–
14,389
Net loss
–
–
–
–
–
–
–
–
–
(1,612,238
)
(1,612,238
)
Balance, June 30, 2024
–
$
–
50
$
1
–
$
–
10,411,240
$
104,113
$
26,518,993
$
(6,651,286
)
$
19,971,821
Issuance of common shares, equity incentive plan
–
–
–
–
–
–
23,743
237
(237
)
–
–
Exchange of common shares for Series A preferred
4,250
43
–
–
–
–
(4,250,000
)
(42,500
)
42,457
–
–
Exchange of convertible note for Series C preferred
–
–
–
–
210
2
–
–
999,998
–
1,000,000
Stock compensation expense – vested stock
–
–
–
–
–
–
–
–
375,345
–
375,345
Stock option compensation expense
–
–
–
–
–
–
–
–
23,086
–
23,086
Net loss
–
–
–
–
–
–
–
–
–
(2,144,250
)
(2,144,250
)
Balance, September 30, 2024
4,250
$
43
50
$
1
210
$
2
6,184,983
$
61,850
$
27,959,642
$
(8,795,536
)
$
19,226,002
Unusual Machines, Inc. Consolidated Statement of Changes in Stockholders’ Equity For the Three and Nine Months September 30, 2025 and 2024 (Unaudited)
Three and Nine Months Ended September 30, 2025
Series A, Preferred Stock
Series B, Preferred Stock
Series C, Preferred Stock
Common Stock
Additional Paid-In
Accumulated
Other Comprehensive
Accumulated
Total Stockholders’
Shares
Value
Shares
Value
Shares
Value
Shares
Value
Capital
Deficit
Income
Equity
Balance, December 31, 2024
–
$
–
–
$
–
–
$
–
15,122,018
$
151,221
$
50,580,235
$
(35,913,514
)
$
–
$
14,817,942
Issuance of common shares, equity incentive plan
–
–
–
–
–
–
483,546
4,835
(4,835
)
–
–
–
Issuance of common shares for exercise of warrants
–
–
–
–
–
–
1,224,606
12,246
2,424,720
–
–
2,436,966
Stock compensation expense – vested stock
–
–
–
–
–
–
–
–
1,883,433
–
–
1,883,433
Stock compensation expense
–
–
–
–
–
–
–
–
22,940
–
–
22,940
Net loss
–
–
–
–
–
–
–
–
(3,266,279
)
–
(3,266,279
)
Balance, March 31, 2025
–
$
–
–
$
–
–
$
–
16,830,170
$
168,302
$
54,906,493
$
(39,179,793
)
$
–
$
15,895,002
Issuance of common shares, Management/BOD
–
–
–
–
–
–
208,336
2,082
(2,082
)
–
–
–
Issuance of common shares, Option exercises
–
–
–
–
–
–
94,650
947
366,923
–
–
367,870
Issuance of common shares, consulting services
–
–
–
–
–
–
4,630
46
(46
)
–
–
–
Issuance of common shares, advisory board
–
–
–
–
–
–
150,000
1,500
(1,500
)
–
–
–
Issuance of common shares, public offering
–
–
–
–
–
–
8,000,000
80,000
36,416,000
–
–
36,496,000
Stock option compensation expense
–
–
–
–
–
–
–
–
576,831
–
–
576,831
Stock Compensation expense – vested stock
–
–
–
–
–
–
–
–
4,936,497
–
–
4,936,497
Net loss
–
–
–
–
–
–
–
–
–
(6,964,739
)
–
(6,964,739
)
Balance, June 30, 2025
–
$
–
–
$
–
–
$
–
25,287,786
$
252,877
$
97,199,116
$
(46,144,532
)
$
–
51,307,461
Issuance of common shares, Management/BOD
–
–
–
–
–
–
589,232
5,892
(5,892
)
–
–
–
Issuance of common shares, Option exercises
–
–
–
–
–
–
25,250
253
133,487
–
–
133,740
Issuance of common shares, consulting services
–
–
–
–
–
–
1,539
15
(15
)
–
–
–
Issuance of common shares, public offering
–
–
–
–
–
–
5,000,000
50,000
44,851,000
–
–
44,901,000
Issuance of common shares, Rotor Lab acquisition
–
–
–
–
–
–
656,642
6,566
5,916,345
–
–
5,922,911
Issuance of common shares – warrant exercises
–
–
–
–
–
–
8,500
85
42,415
–
–
42,500
Stock compensation expense
–
–
–
–
–
–
–
–
114,960
–
–
114,960
Stock compensation expense – vested stock
–
–
–
–
–
–
–
–
1,987,600
–
–
1,987,600
Net income
–
–
–
–
–
–
–
–
–
1,603,465
–
1,603,465
Equity adjustment from foreign currency translation
–
–
–
–
–
–
–
–
–
–
2,278
2,278
Balance, September 30, 2025
–
$
–
–
$
–
–
$
–
31,568,949
$
315,688
$
150,239,016
$
(44,541,067
)
$
2,278
$
106,015,915
Unusual Machines, Inc. Consolidated Condensed Statement of Cash Flows For the Nine Months Ended September 30, 2025 and 2024 (Unaudited)
Nine Months Ended September 30,
2025
2024
Cash flows from operating activities:
Net loss
$
(8,627,553
)
$
(4,862,490
)
Depreciation and amortization
63,635
513
Stock compensation expense as settlement
–
64,344
Stock compensation expense
9,522,261
759,673
Unrealized gains from short term investments
(5,849,713
)
–
Bad debt
12,146
–
Change in fair value for warrant and derivative liabilities
–
(43,239
)
Loss on debt extinguishment, non-cash component
–
663,250
Change in assets:
Accounts receivable
(122,696
)
(73,109
)
Inventory
(1,746,100
)
337,562
Prepaid inventory
(6,016,951
)
(319,532
)
Other assets
(165,529
)
(29,100
)
Operating lease right-of-use asset
72,202
–
Change in liabilities:
Accounts payable and accrued expenses
406,399
630,595
Operating lease liabilities
(80,346
)
(33,056
)
Customer deposits and other current liabilities
1,137,953
186,076
Net cash used in operating activities
(11,394,294
)
(2,718,513
)
Cash flows from investing activities
Cash portion of consideration paid for acquisition of businesses, net of cash received
93,054
(852,801
)
Investments in short term securities
(11,000,000
)
–
Purchases of property and equipment
(1,550,687
)
–
Net cash used in investing activities
(12,457,633
)
(852,801
)
Cash flows from financing activities:
Proceeds from issuance of common shares, IPO
–
5,000,000
Proceeds from issuance of common shares, public offering
40,000,000
–
Proceeds from issuance of common shares, registered direct
48,500,000
–
Proceeds from option exercises
501,610
–
Proceeds from issuance of common shares, warrant exercises
2,479,466
–
Common share issuance offering costs
(7,103,000
)
(637,687
)
Net cash provided by financing activities
84,378,076
4,362,313
Net increase in cash
60,526,149
790,999
Effect of exchange rate changes on cash
2,278
–
Cash, beginning of period
3,757,323
894,773
Cash, end of period
$
64,285,750
$
1,685,772
Supplemental disclosures of cash flow information:
Non-cash consideration paid for assets acquired and liabilities assumed
$
8,922,911
$
19,000,000
Non-cash right of use asset and liability
$
973,443
$
–
Deferred acquisition costs
$
–
$
100,000
Deferred offering costs recorded as reduction of proceeds
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