GUIDED THERAPEUTICS' Losses Widen Amid Soaring Expenses

TL;DR

**GTHP is a burning dumpster fire; stay far away unless you're a vulture investor.**

AI Summary

GUIDED THERAPEUTICS INC reported a net loss of $1.236 million for the six months ended June 30, 2025, an increase from a net loss of $1.111 million in the prior year period. Revenue from devices and disposables significantly increased to $117,000 for the six months ended June 30, 2025, compared to $6,000 in the same period of 2024. However, this revenue growth was overshadowed by a substantial rise in operating expenses, which climbed to $1.255 million from $1.017 million year-over-year. General and administrative expenses saw the largest increase, reaching $924,000 in 2025 from $600,000 in 2024. The company's cash and cash equivalents decreased from $388,000 at December 31, 2024, to $185,000 at June 30, 2025, reflecting significant cash usage in operating activities, totaling $500,000. Strategic outlook remains challenging given the accumulated deficit of $155.028 million and total liabilities of $6.412 million, far exceeding total assets of $940,000.

Why It Matters

This filing reveals a company struggling with significant financial distress, marked by widening losses and a precarious cash position. For investors, the substantial accumulated deficit of $155.028 million and total liabilities of $6.412 million against minimal assets of $940,000 signal extreme risk and potential for further dilution or bankruptcy. Employees face job insecurity given the company's inability to generate sustainable profits. Customers might question the long-term viability of product support. In a competitive medical device market, GTHP's financial state makes it a highly vulnerable player, unable to invest adequately in R&D or marketing to compete effectively.

Risk Assessment

Risk Level: high — The company's total liabilities of $6.412 million significantly exceed its total assets of $940,000 as of June 30, 2025, indicating severe insolvency. Furthermore, cash and cash equivalents plummeted by 52.3% from $388,000 to $185,000 in six months, while net cash used in operating activities was $500,000, demonstrating a rapid depletion of liquidity.

Analyst Insight

Investors should avoid GUIDED THERAPEUTICS INC stock due to its severe financial instability, including a negative stockholders' deficit of $5.472 million and rapidly dwindling cash reserves. Existing shareholders should consider divesting to mitigate further losses, as the company's ability to continue as a going concern is highly questionable.

Financial Highlights

debt To Equity

N/A

revenue

$117,000

operating Margin

N/A

total Assets

$940,000

total Debt

$6.412 million

net Income

-$1.236 million

eps

N/A

gross Margin

N/A

cash Position

$185,000

revenue Growth

1850%

Revenue Breakdown

Key Numbers

• $1.236M — Net Loss (Increased from $1.111M in prior year period, indicating worsening financial performance.)
• $117K — Sales - devices and disposables (Significant increase from $6K in prior year, showing some product traction.)
• $1.255M — Total Operating Expenses (Increased from $1.017M, outpacing revenue growth and contributing to wider losses.)
• $185K — Cash and Cash Equivalents (Decreased from $388K, highlighting severe liquidity issues.)
• $500K — Net Cash Used in Operating Activities (Indicates rapid cash burn, unsustainable without significant new financing.)
• $6.412M — Total Liabilities (Far exceeds total assets, signaling deep insolvency and high financial risk.)
• $940K — Total Assets (Significantly lower than liabilities, indicating a weak balance sheet.)
• $155.028M — Accumulated Deficit (Massive historical losses, reflecting a long-standing inability to achieve profitability.)
• 78,971 — Common Shares Outstanding (Increased from 65,131 shares, indicating dilution from equity financing.)
• $5,472K — Total Stockholders' Deficit (Negative equity position, further emphasizing the company's insolvency.)

Key Players & Entities

• GUIDED THERAPEUTICS INC (company) — Registrant in 10-Q filing
• $1.236 million (dollar_amount) — Net loss for six months ended June 30, 2025
• $117,000 (dollar_amount) — Sales - devices and disposables for six months ended June 30, 2025
• $1.255 million (dollar_amount) — Total operating expenses for six months ended June 30, 2025
• $924,000 (dollar_amount) — General and administrative expenses for six months ended June 30, 2025
• $185,000 (dollar_amount) — Cash and cash equivalents as of June 30, 2025
• $388,000 (dollar_amount) — Cash and cash equivalents as of December 31, 2024
• $500,000 (dollar_amount) — Net cash used in operating activities for six months ended June 30, 2025
• $6.412 million (dollar_amount) — Total liabilities as of June 30, 2025
• $940,000 (dollar_amount) — Total assets as of June 30, 2025

FAQ

Risk Factors

• Severe Liquidity Constraints [high — financial]: Cash and cash equivalents decreased from $388,000 at December 31, 2024, to $185,000 at June 30, 2025. The company used $500,000 in operating activities during the six months ended June 30, 2025, indicating a rapid cash burn rate that poses an immediate threat to solvency.
• Insolvency and Accumulated Deficit [high — financial]: Total liabilities of $6.412 million far exceed total assets of $940,000, resulting in a stockholders' deficit of $5.472 million. The accumulated deficit stands at $155.028 million, highlighting a long-standing inability to generate profits and a high risk of bankruptcy.
• Dependence on Future Financing [high — financial]: The company's continued operations are contingent upon its ability to secure additional financing. The substantial cash burn and negative equity position suggest that future funding rounds may be difficult to obtain or will be highly dilutive.
• Rising Operating Expenses [medium — operational]: Total operating expenses increased to $1.255 million for the six months ended June 30, 2025, from $1.017 million in the prior year period. This increase, particularly in general and administrative expenses ($924,000 vs. $600,000), outpaced revenue growth and contributed to a wider net loss.
• Dilution from Equity Issuance [medium — financial]: The number of common shares outstanding increased from 65,131 to 78,971, indicating significant dilution. This suggests the company has been issuing equity to fund operations, which can negatively impact existing shareholders' value.

Industry Context

The medical device industry is highly competitive and capital-intensive, requiring significant R&D investment and regulatory approvals. Companies often face long development cycles and market penetration challenges. Trends include increasing demand for minimally invasive technologies and digital health integration, but smaller players like GTHP struggle to gain traction against established giants.

Regulatory Implications

As a medical device company, GTHP is subject to stringent regulations from bodies like the FDA. Compliance requires significant resources and can lead to delays or rejections of product approvals. Any failure to meet regulatory standards could result in fines, product recalls, or market withdrawal, posing a substantial risk.

What Investors Should Do

1. Monitor cash burn rate closely: The current burn rate of $500,000 per six months is unsustainable. Investors should watch for any signs of further acceleration or deceleration.
2. Assess future financing needs and dilution: The company's survival depends on new funding. Investors should evaluate the terms of any future equity or debt offerings and their dilutive impact.
3. Evaluate revenue growth sustainability: While device revenue increased significantly, it remains small ($117,000). Investors need to determine if this growth is sustainable and scalable.
4. Scrutinize operating expense management: The rise in operating expenses, particularly G&A, needs to be justified. Investors should look for cost-control measures.
5. Consider the high risk of insolvency: With negative equity and substantial liabilities, the risk of bankruptcy is significant. Investors should be prepared for potential total loss of investment.

Glossary

Accumulated Deficit

The total cumulative net losses of a company since its inception, minus any net gains. It represents the total amount of money a company has lost over its lifetime. (A large accumulated deficit, such as GTHP's $155.028 million, indicates a history of unprofitability and significant financial distress.)

Stockholders' Deficit

The negative value of a company's equity, occurring when liabilities exceed assets. It signifies that if all assets were liquidated, there would not be enough to cover all debts. (GTHP's stockholders' deficit of $5.472 million highlights its insolvent position and the lack of residual value for shareholders.)

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (The decline in GTHP's cash and cash equivalents to $185,000 signals a critical shortage of readily available funds for operations.)

Operating Activities

The principal revenue-producing activities of an entity and other activities that are not investing or financing activities. Cash flows from operating activities are a key indicator of a company's ability to generate cash from its core business. (GTHP's net cash used in operating activities of $500,000 for six months shows its core business is consuming cash rapidly.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, Guided Therapeutics Inc. reported a net loss of $1.236 million, an increase from $1.111 million in the prior year, indicating deteriorating profitability. While revenue from devices and disposables saw a dramatic increase to $117,000 from $6,000, this was overshadowed by a substantial rise in operating expenses to $1.255 million from $1.017 million. Cash reserves have significantly dwindled, falling from $388,000 to $185,000, highlighting severe liquidity concerns and a rapid cash burn.

Key Financial Figures

• $0.001 — had 80,283,991 shares of Common Stock, $0.001 par value per share, outstanding. PAR
• $155.0 million — an accumulated deficit of approximately $155.0 million. To date, the Company has engaged prima

Filing Documents

• gthp_10q.htm (10-Q) — 1783KB
• gthp_ex101.htm (EX-10.1) — 72KB
• gthp_ex102.htm (EX-10.2) — 57KB
• gthp_ex103.htm (EX-10.3) — 73KB
• gthp_ex104.htm (EX-10.4) — 58KB
• gthp_ex105.htm (EX-10.5) — 8KB
• gthp_ex106.htm (EX-10.6) — 65KB
• gthp_ex107.htm (EX-10.7) — 16KB
• gthp_ex31.htm (EX-31) — 12KB
• gthp_ex32.htm (EX-32) — 5KB
• gthp_ex107img2.jpg (GRAPHIC) — 2KB
• gthp_ex107img1.jpg (GRAPHIC) — 7KB
• 0001477932-25-005887.txt ( ) — 8230KB
• gthp-20250630.xsd (EX-101.SCH) — 91KB
• gthp-20250630_lab.xml (EX-101.LAB) — 453KB
• gthp-20250630_cal.xml (EX-101.CAL) — 55KB
• gthp-20250630_pre.xml (EX-101.PRE) — 390KB
• gthp-20250630_def.xml (EX-101.DEF) — 263KB
• gthp_10q_htm.xml (XML) — 1259KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Page Item 1.

Financial Statements

Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 3 Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 4 Unaudited Condensed Consolidated Statements of Stockholders' Deficit for the Three and Six Months Ended June 30, 2025 and 2024 6 Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 9 Notes to Unaudited Condensed Consolidated Financial Statements 10 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 48

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 50

Signatures

Signatures 51 2 Table of Contents GUIDED THERAPEUTICS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) June 30, December 31, 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 185 $ 388 Trade receivables, net of allowance for credit losses of $ 2 and $ 1 at June 30, 2025 and December 31, 2024, respectively. 8 3 Inventory, net of reserves of $ 818 at June 30, 2025 and December 31, 2024 595 633 Other current assets 23 173 Total current assets 811 1,197 Non-Current Assets: Property and equipment, net 18 23 Operating lease right-of-use assets, net of amortization 94 141 Other assets 17 17 Total non-current assets 129 181 TOTAL ASSETS $ 940 $ 1,378 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable $ 2,255 $ 2,094 Accounts payable, related parties 37 36 Accrued liabilities 1,117 1,011 Deferred revenue 679 849 Current portion of lease liability 104 106 Short-term notes payable due to related parties 25 70 Current portion of long-term debt, related parties 525 532 Short-term notes payable 24 92 Short-term convertible notes, net of discounts 421 117 Short-term convertible debt in default 1,130 1,130 Derivative liability at fair value 60 118 Total current liabilities 6,377 6,155 Long-Term Liabilities Long-term lease liability - 49 Long-term notes payable 35 47 Long-term convertible debt - 14 Long-term debt, related parties - 2 Total long-term liabilities 35 112 Total liabilities 6,412 6,267 COMMITMENTS AND CONTINGENCIES (Note 6) STOCKHOLDERS' DEFICIT: Series C convertible preferred stock, $ 0.001 par value; 9.0 shares authorized, nil and 0.3 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively. Liquidation preference of nil and $ 286 at June 30, 2025 and December 31, 2024, respectively. - 1

View Full Filing

View this 10-Q filing on SEC EDGAR