NovelStem International Corp.

NSTM: 10-Q · periodic report

NovelStem International Corp. filed its 10-Q for the quarter ended June 30, 2026 with substantial doubt about its ability to continue as a going concern. The holding company has no operating revenue and states it will need additional funds to continue operations for the next 12 months, relying on fundraising, monetization of former NewStem license rights, or a potential merger or buyout. The company reported a net loss of $140,816 for the six months ended June 30, 2026, versus prior-year net income of $2,546,625 that was driven by one-time items including a $1,171,760 gain on the NetCo sale and $1,697,024 of debt relief income. Cash stood at $56,235 against total liabilities of $2,097,158 and a shareholders' deficit of $2,032,471. Management concluded that disclosure controls and internal control over financial reporting were not effective as of June 30, 2026, citing a material weakness from insufficient resources to maintain proper segregation of duties. On the funding side, the company raised $250,000 in March 2026 by selling 2,450,980 shares at about $0.102 per share, extended all note maturities to March 30, 2027 with related-party and third-party lenders, and is negotiating to convert all outstanding debt to equity. It also holds an agreement to receive up to $3,750,000 from any monetization of the former NewStem licenses now held by Yissum.

SEC 10-Q•2mo ago

NSTM: 10-Q · periodic report

NovelStem International Corp. reported a net loss of $55,021 for the quarter ended March 31, 2026, with cash reserves of only $89,850 against total liabilities of $2.05 million. The company explicitly states that these factors raise substantial doubt about its ability to continue as a going concern. The firm remains a holding company with no operating revenue, relying on the potential monetization of intellectual property from its liquidated subsidiary, NewStem Ltd. It raised $250,000 in March 2026 by issuing 2.45 million shares to an unrelated party and extended maturity dates on related-party debt to June 2026. Management disclosed material weaknesses in internal controls, citing insufficient resources for proper segregation of duties. The company continues to negotiate with debt holders for potential debt-to-equity conversions to avoid insolvency.

SEC 10-Q•5mo ago