CSDX Net Income Jumps on Cost Cuts, Revenue Dips Amid Cash Crunch

TL;DR

**CSDX's cost-cutting boosted net income, but with cash at just $13 and revenue falling, this diagnostic firm is on life support and needs a major capital infusion to survive.**

AI Summary

CS DIAGNOSTICS CORP. (CSDX) reported a net income of $32,081 for the nine months ended September 30, 2025, a significant increase from $13,448 in the prior-year period. This improvement was primarily driven by a substantial reduction in total operating expenses, which decreased to $62,119 from $92,933 in the same period of 2024, mainly due to lower professional fees. However, total revenues for the nine months ended September 30, 2025, declined by approximately 11% to $94,200, down from $106,381 in 2024, attributed to reduced diagnostic service activity and lower one-time licensing income. The company's cash and cash equivalents plummeted to $13 as of September 30, 2025, from $501 at December 31, 2024, and it used $528 in net cash from operating activities. Despite an accumulated deficit of $(4,735,847), the company's total assets stood at $499,431,013, largely comprising $499,400,000 in intangible assets. Management believes future capital requirements will be met through shareholder support and external financing, acknowledging substantial doubt about its ability to continue as a going concern without further capital. The company also issued 4,000,000 shares of Preferred Stock C, valued at $40, during the period.

Why It Matters

For investors, CSDX's increased net income is a positive signal, but the 11% revenue decline and critically low cash balance of $13 raise significant concerns about sustainability and growth prospects. The heavy reliance on intangible assets ($499.4 million) and shareholder support for liquidity suggests a high-risk profile, especially given the competitive medical technology and regulatory services market. Employees might face uncertainty if external financing or shareholder support falters, impacting job security. Customers could see service disruptions or slower innovation if the company struggles to secure necessary capital. The broader market for diagnostic and medical product approval services will watch if CSDX can stabilize its revenue and secure funding to compete effectively.

Risk Assessment

Risk Level: high — The company's cash balance of $13 as of September 30, 2025, down from $501 at December 31, 2024, is critically low. Furthermore, the filing explicitly states, "These conditions and the ability to successfully resolve these factors raise substantial doubt about the Company's ability to continue as a going concern." This, coupled with an accumulated deficit of $(4,735,847), indicates severe financial instability.

Analyst Insight

Investors should exercise extreme caution and consider divesting, as the company's liquidity is severely compromised with only $13 in cash. Await clear evidence of substantial new capital infusion and a concrete plan for revenue stabilization before considering any investment.

Financial Highlights

debt To Equity

0.00

revenue

$94,200

operating Margin

-0.19%

total Assets

$499,431,013

total Debt

$1,609

net Income

$32,081

eps

$0.00

gross Margin

N/A

cash Position

$13

revenue Growth

-11%

Revenue Breakdown

Key Numbers

• $32,081 — Net Income (Increased from $13,448 in prior year, driven by cost reductions.)
• $94,200 — Total Revenue (Decreased by 11% from $106,381 in prior year, due to reduced diagnostic activity.)
• $62,119 — Total Operating Expenses (Decreased significantly from $92,933, primarily due to lower professional fees.)
• $13 — Cash and Cash Equivalents (Critically low, down from $501 at year-end 2024, indicating severe liquidity issues.)
• $(528) — Net Cash Used in Operating Activities (Negative cash flow from operations for the nine months ended September 30, 2025.)
• $499.4M — Intangible Assets (Represents the vast majority of total assets, raising questions about asset liquidity and valuation.)
• $(4,735,847) — Accumulated Deficit (Indicates historical losses and ongoing financial challenges.)
• 11% — Revenue Decrease (Percentage decline in total revenues for the nine months ended September 30, 2025, compared to 2024.)
• 137,340,200 — Common Stock Shares Outstanding (As of September 30, 2025.)
• $1,609 — Total Liabilities (As of September 30, 2025, a slight increase from $1,428 at December 31, 2024.)

Key Players & Entities

• CS DIAGNOSTICS CORP. (company) — registrant
• $32,081 (dollar_amount) — net income for nine months ended September 30, 2025
• $13,448 (dollar_amount) — net income for nine months ended September 30, 2024
• $94,200 (dollar_amount) — total revenues for nine months ended September 30, 2025
• $106,381 (dollar_amount) — total revenues for nine months ended September 30, 2024
• $62,119 (dollar_amount) — total operating expenses for nine months ended September 30, 2025
• $92,933 (dollar_amount) — total operating expenses for nine months ended September 30, 2024
• $13 (dollar_amount) — cash and cash equivalents as of September 30, 2025
• $501 (dollar_amount) — cash and cash equivalents as of December 31, 2024
• $499,400,000 (dollar_amount) — intangible assets as of September 30, 2025

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company has an accumulated deficit of $(4,735,847) and cash and cash equivalents of only $13 as of September 30, 2025. Management acknowledges substantial doubt about its ability to continue as a going concern without further capital, with future requirements expected to be met through shareholder support and external financing.
• Severe Liquidity Constraints [high — financial]: Cash and cash equivalents plummeted to $13 from $501 at year-end 2024, and the company used $528 in net cash from operating activities for the nine months ended September 30, 2025. This indicates an immediate and critical need for funding.
• High Proportion of Intangible Assets [medium — financial]: Total assets are $499,431,013, with $499,400,000 attributed to intangible assets. This concentration raises concerns about asset liquidity and the realizable value of these assets.
• Declining Revenue Trends [medium — operational]: Total revenues decreased by 11% to $94,200 for the nine months ended September 30, 2025, from $106,381 in the prior year. This decline is driven by reduced diagnostic service activity and lower licensing income, signaling potential challenges in core business operations.
• Reliance on External Financing [high — financial]: The company explicitly states that future capital requirements will be met through shareholder support and external financing, highlighting a dependence on third-party capital injections to sustain operations.

Industry Context

CS Diagnostics Corp. operates in the medical technology sector, focusing on diagnostic and therapeutic products. The industry is characterized by innovation, regulatory oversight, and the need for significant R&D investment. Companies often collaborate with research institutions and healthcare providers to bring new technologies to market.

Regulatory Implications

As a medical technology company, CSDX is subject to stringent regulatory approvals from bodies like the FDA and equivalent international agencies. Compliance with healthcare regulations, data privacy laws (e.g., HIPAA), and international market access requirements are critical for its operations and product commercialization.

What Investors Should Do

1. Monitor future financing rounds closely.
2. Scrutinize the valuation and liquidity of intangible assets.
3. Evaluate the strategy for revenue stabilization and growth.
4. Assess the management's ability to control operating expenses.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period showing a net income of $32,081 on revenues of $94,200, but with critically low cash reserves of $13 and significant operating expense reductions.
• 2024-09-30: Nine months ended September 30, 2024 — Prior year comparable period with net income of $13,448 on revenues of $106,381 and higher operating expenses of $92,933.
• 2024-12-31: December 31, 2024 — Year-end balance sheet date showing cash and cash equivalents of $501, prior to the significant decline observed by September 30, 2025.

Glossary

Accumulated deficit

The cumulative net losses of a company since its inception that have not been offset by net income. (Indicates the company has historically incurred more losses than profits, standing at $(4,735,847) as of September 30, 2025.)

Intangible Assets

Assets that lack physical substance but have value, such as patents, copyrights, and goodwill. (These constitute the vast majority of CSDX's assets ($499,400,000), raising questions about their liquidity and valuation.)

Going Concern

The assumption that a company will continue to operate for the foreseeable future. (Management has expressed substantial doubt about CSDX's ability to continue as a going concern without additional capital.)

Preferred Stock Series C

A class of preferred stock with specific rights and privileges, issued during the period. (4,000,000 shares were authorized, and the company issued shares valued at $40 during the period, contributing to equity structure.)

Net Cash Used in Operating Activities

The net amount of cash spent or received from the normal day-to-day business operations of a company. (CSDX used $528 in operating activities for the nine months ended September 30, 2025, highlighting negative cash flow from core business.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, CS Diagnostics Corp. saw a significant improvement in net income, rising to $32,081 from $13,448, primarily driven by a substantial reduction in operating expenses, particularly professional fees. However, this was accompanied by an 11% decrease in total revenues to $94,200, attributed to lower diagnostic service activity and licensing income. The most alarming change is the drastic decline in cash and cash equivalents, from $501 at year-end 2024 to a mere $13, alongside negative operating cash flow, intensifying concerns about the company's financial stability.

Key Financial Figures

• $0.001 — h registered Common Stock, par value $0.001 per share CSDX OTCQB Preferred Stoc
• $0.00001 — hares of the registrant's common stock, $0.00001 par value, issued and outstanding. 2
• $94,200 — e months ended September 30, 2025, were $94,200, compared to $106,381 for the same peri
• $106,381 — ber 30, 2025, were $94,200, compared to $106,381 for the same period in 2024, representi
• $62,119 — ing expenses decreased significantly to $62,119 for the nine-month period ended Septemb
• $92,933 — h period ended September 30, 2025, from $92,933 for the same period in 2024. The reduct
• $22,424 — dministrative expenses rose modestly to $22,424, reflecting increases in compliance-rel
• $32,081 — 025, the Company recorded net income of $32,081, compared with $13,448 in the prior-yea
• $13,448 — ed net income of $32,081, compared with $13,448 in the prior-year period. The improveme
• $499,431,013 — , 2025, the Company had total assets of $499,431,013, compared to $499,400,501 at December 3
• $499,400,501 — tal assets of $499,431,013, compared to $499,400,501 at December 31, 2024. The asset base co
• $499.4 million — y of intangible assets of approximately $499.4 million and additional paid-in capital contribu
• $13 — ders. Cash and cash equivalents totaled $13 as of September 30, 2025, compared to $
• $501 — 3 as of September 30, 2025, compared to $501 at year-end 2024. The Company reported
• $1,428 — 9 as of September 30, 2025, compared to $1,428 in accounts payable as of December 31,

Filing Documents

• csd111225110q.htm (10-Q) — 333KB
• ex31_1.htm (EX-31.1) — 10KB
• ex31_2.htm (EX-31.2) — 7KB
• ex32_1.htm (EX-32.1) — 4KB
• ex32_2.htm (EX-32.2) — 4KB
• cscorp_logo.jpg (GRAPHIC) — 14KB
• 0001214659-25-016410.txt ( ) — 1664KB
• csdx-20250930.xsd (EX-101.SCH) — 13KB
• csdx-20250930_cal.xml (EX-101.CAL) — 20KB
• csdx-20250930_def.xml (EX-101.DEF) — 59KB
• csdx-20250930_lab.xml (EX-101.LAB) — 113KB
• csdx-20250930_pre.xml (EX-101.PRE) — 89KB
• csd111225110q_htm.xml (XML) — 126KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION 4

Financial Statements

Item 1. Financial Statements. 4

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 11

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk. 13

Controls and Procedures

Item 4. Controls and Procedures. 13

—OTHER INFORMATION

PART II—OTHER INFORMATION 14

Legal Proceedings

Item 1. Legal Proceedings. 14

Risk Factors

Item 1A. Risk Factors. 14

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 23

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities. 23

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. 24

Other Information

Item 5. Other Information. 24

Exhibits

Item 6. Exhibits. 24

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CS Diagnostics, Corp. Condensed Consolidated Balance Sheets CS DIAGNOSTICS CORP. CSDX BALANCE SHEET FOR THE PERIOD ENDED SEPTEMBER 30 2025 September 30, 2025 (Unaudited) December 31, 2024 (Audited) Assets Current Assets Cash 13 501 Other Receivables 31,000 - Total Current Assets $ 31,013 $ 501 Intangible Assets 499,400,000 499,400,000 Total Assets $ 499,431,013 $ 499,400,501 Liabilities and Stockholders' Deficit Current Liabilities Account Payables 1,609 1,428 Non-current liabilities - Total Liabilities $ 1,609 $ 1,428 Shareholder's Equity / (Deficit) Common stock, $ 0.00001 par value; 250,000,000 shares authorized, 137,340,200 shares issued and outstanding as of September 30, 2025 1,373 1,373 Preferred stock Series A, $ 0.00001 par value; 1,000,000 shares authorized, 10 shares issued and outstanding as of September 30, 2025 - - Preferred stock Series B, $ 0.00001 par value; 20,000,000 shares authorized, 19,992,575 shares issued and outstanding as of September 30, 2025 2,000 2,000 Preferred stock Series C, $ 0.00001 par value; 4,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2025 40 - Additional paid-in capital 504,161,838 504,163,629 Accumulated deficit ( 4,735,847 ) ( 4,767,928 ) Total Stockholders' Equity /(Deficit) $ 499,429,404 $ 499,399,073 Total Liabilities and Stockholders' Equity /(Deficit) $ 499,431,013 $ 499,400,501 The accompanying notes are an integral part of these financial statements. 4 CS Diagnostics, Corp. Condensed Consolidated Statement of Operations FOR THE PERIOD ENDED SEPTEMBER 30, 2025 (Unaudited) For The Three Months Ended September 30 2025 For The Three Months Ended September 30 2024 For The nine Months Ended September 30 2025 For The nine Months Ended September 30 2024 Revenue 23,050 7,964 94,200 106,381 Revenue $ 23,050.00 $

Management's Discussion and Analysis of Financial

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and reflect our current corporate structure and organization as if such structure had been in place throughout all periods presented. This discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Such factors include, among others, the risks described under " Risk Factors " in Part II, Item 1A of this Quarterly Report on Form 10-Q and elsewhere herein. Except as required by law, we undertake no obligation to revise or update any forward-looking statements to reflect events or circumstances occurring after the date of this report. Overview CS Diagnostics Corp. (the "Company") is a Wyoming-based corporation focused on improving therapeutic outcomes and minimizing side effects through innovative medical technologies. The Company collaborates with universities, research institutions, and healthcare professionals to develop, license, and commercialize diagnostic and therapeutic products. In addition, the Company provides international firms in the medical sector with regulatory approval services and market access throughout Europe and the MENA regions. During the nine months ended September 30, 2025, the Company continued transitioning from its develop

Quantitative and Qualitative Disclosures About Market

Item 3. Quantitative and Qualitative Disclosures About Market Risk. Not applicable.

Controls and Procedures

Item 4. Controls and Procedures. Under the supervision and with the participation of our management, including our Principal Executive Officer ("PEO") and Principal Financial Officer ("PFO"), we evaluated the effectiveness of the Company's disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of September 30, 2025. Evaluation of Disclosure Controls and Procedures Based on this evaluation, our PEO and PFO concluded that the Company's disclosure controls and procedures were effective as of September 30, 2025 in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and (ii) accumulated and communicated to the Company's management, including the PEO and PFO, as appropriate to allow timely decisions regarding required disclosure. Changes in Internal Control over Financial Reporting The Company also carried out an evaluation, under the supervision and with the participation of management, including the PEO and PFO, of changes in the Company's internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the fiscal quarter ended September 30, 2025. There were no changes in our internal control over financial reporting during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Forward-Looking Statements

Forward-Looking Statements This MD&A contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Factors that could cause such differences include, among others, those discussed under "Risk Factors" in Part II, Item 1A of this Report. 13

—OTHER INFORMATION

PART II—OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. As of the date of this Report, the Company is involved in the following legal proceedings: CS Diagnostics Corp. v. Wilson, U.S. District Court, Northern District of Texas (Dallas), Case No. 3:25-

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View this 10-Q filing on SEC EDGAR