GTHP's Losses Widen Amid Cash Burn, Despite Revenue Jump

TL;DR

**GTHP is bleeding cash and its growing revenue isn't enough to stem the tide of increasing losses and debt, making it a high-risk bet.**

AI Summary

GUIDED THERAPEUTICS INC (GTHP) reported a net loss of $1.978 million for the nine months ended September 30, 2025, an increase from a net loss of $1.765 million in the same period of 2024. Revenue from devices and disposables significantly increased to $177,000 for the nine months ended September 30, 2025, compared to $6,000 in 2024. However, the company's total assets decreased from $1.378 million at December 31, 2024, to $903,000 at September 30, 2025, primarily due to a drop in cash and cash equivalents from $388,000 to $87,000. Operating expenses rose to $1.775 million for the nine months ended September 30, 2025, up from $1.578 million in 2024, driven by increased general and administrative expenses from $974,000 to $1.287 million. The company also saw a substantial increase in interest expense, reaching $433,000 for the nine months ended September 30, 2025, compared to $247,000 in the prior year. Total stockholders' deficit worsened from $(4.889) million to $(5.646) million over the same period, reflecting ongoing losses and debt conversions.

Why It Matters

GTHP's widening net loss and declining cash position signal significant financial distress, raising red flags for investors about its long-term viability and ability to fund operations. The substantial increase in revenue from devices and disposables, while positive, is overshadowed by escalating operating and interest expenses, indicating a lack of profitability at scale. This financial instability could impact employee morale and job security, while customers might face uncertainty regarding product support or future innovation. In a competitive medical device market, GTHP's precarious financial state makes it vulnerable to larger, better-capitalized rivals, potentially leading to market share erosion or even bankruptcy.

Risk Assessment

Risk Level: high — The company's cash and cash equivalents plummeted by 77.6% from $388,000 to $87,000 between December 31, 2024, and September 30, 2025. Concurrently, total liabilities increased from $6.267 million to $6.549 million, and the accumulated deficit deepened from $(153.709) million to $(155.813) million, indicating severe liquidity issues and an unsustainable financial structure.

Analyst Insight

Investors should avoid GTHP given its severe cash burn, increasing liabilities, and widening net losses. The company's ability to continue as a going concern is highly questionable, and further dilution or financial restructuring appears inevitable.

Financial Highlights

debt To Equity

N/A

revenue

$177,000

operating Margin

N/A

total Assets

$903,000

total Debt

$6,549,000

net Income

-$1,978,000

eps

N/A

gross Margin

N/A

cash Position

$87,000

revenue Growth

+2850%

Revenue Breakdown

Key Numbers

• $1.978M — Net Loss (Increased from $1.765M in prior year, indicating worsening profitability.)
• $177K — Revenue (Devices & Disposables) (Significant increase from $6K in prior year, showing sales growth.)
• $87K — Cash and Cash Equivalents (Decreased by 77.6% from $388K, highlighting severe liquidity issues.)
• $6.549M — Total Liabilities (Increased from $6.267M, adding to financial burden.)
• $(5.646)M — Total Stockholders' Deficit (Worsened from $(4.889)M, reflecting accumulated losses.)
• $433K — Interest Expense (Increased from $247K, indicating higher debt servicing costs.)
• $1.287M — General and Administrative Expenses (Increased from $974K, contributing to higher operating costs.)
• 83,599,156 — Common Stock Shares Outstanding (Increased from 65,131,000, indicating significant dilution.)

Key Players & Entities

• GUIDED THERAPEUTICS INC (company) — Registrant
• $1.978 million (dollar_amount) — Net loss for nine months ended September 30, 2025
• $1.765 million (dollar_amount) — Net loss for nine months ended September 30, 2024
• $177,000 (dollar_amount) — Sales - devices and disposables for nine months ended September 30, 2025
• $6,000 (dollar_amount) — Sales - devices and disposables for nine months ended September 30, 2024
• $87,000 (dollar_amount) — Cash and cash equivalents as of September 30, 2025
• $388,000 (dollar_amount) — Cash and cash equivalents as of December 31, 2024
• $6.549 million (dollar_amount) — Total liabilities as of September 30, 2025
• $6.267 million (dollar_amount) — Total liabilities as of December 31, 2024
• $433,000 (dollar_amount) — Interest expense for nine months ended September 30, 2025

FAQ

Risk Factors

• Deteriorating Liquidity [high — financial]: Cash and cash equivalents plummeted from $388,000 to $87,000, a 77.6% decrease. This severe reduction in liquidity poses a significant risk to the company's ability to meet its short-term obligations and fund ongoing operations.
• Increasing Net Losses [high — financial]: The company reported a net loss of $1.978 million for the nine months ended September 30, 2025, an increase from $1.765 million in the prior year. This trend indicates worsening profitability and a continued drain on financial resources.
• Rising Operating Expenses [medium — financial]: Operating expenses increased to $1.775 million from $1.578 million, primarily driven by a substantial rise in general and administrative expenses from $974,000 to $1.287 million. This escalation in costs, without a commensurate increase in revenue to offset it, further strains profitability.
• Increased Interest Expense [medium — financial]: Interest expense surged to $433,000 from $247,000, reflecting a higher debt burden or increased interest rates. This directly impacts net income and cash flow available for operations.
• Worsening Stockholders' Deficit [high — financial]: The total stockholders' deficit expanded from $(4.889) million to $(5.646) million. This indicates that accumulated losses have continued to erode the company's equity base.
• Significant Share Dilution [medium — financial]: The number of common stock shares outstanding increased from 65,131,000 to 83,599,156. This substantial dilution can negatively impact existing shareholders' ownership percentage and earnings per share.
• Dependence on Device Sales [medium — operational]: While revenue from devices and disposables saw a significant increase, the overall revenue base remains small ($177,000 for nine months). The company's financial health is heavily reliant on the continued growth and success of this segment.
• General Business Risks [low — regulatory]: As a company operating in the healthcare sector, GTHP is subject to various regulatory requirements and potential changes in healthcare policies. Failure to comply with these regulations could result in penalties or impact market access.

Industry Context

Guided Therapeutics Inc. operates in the medical device sector, specifically focusing on solutions for women's health. The industry is characterized by rigorous regulatory approval processes, significant R&D investment, and competition from established players and innovative startups. Trends include a growing demand for minimally invasive procedures and personalized medicine.

Regulatory Implications

As a medical device company, GTHP is subject to stringent regulations from bodies like the FDA. Changes in healthcare policy, reimbursement rates, and compliance requirements can significantly impact its financial performance and market access. Failure to adhere to these regulations poses a substantial risk.

What Investors Should Do

1. Monitor cash burn rate and liquidity closely.
2. Evaluate the sustainability of revenue growth.
3. Analyze the drivers of increased G&A expenses.
4. Assess the impact of debt and interest expense.
5. Consider the effect of share dilution.

Glossary

Stockholders' Deficit

A negative stockholders' equity, meaning the company's liabilities exceed its assets. It indicates that if all assets were liquidated and all debts paid, there would be nothing left for the shareholders. (GTHP's worsening deficit from $(4.889) million to $(5.646) million highlights ongoing losses and a deteriorating equity position.)

Cash and 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 sharp decline in GTHP's cash and cash equivalents to $87,000 signals a critical liquidity crunch.)

General and Administrative Expenses

Costs incurred for the overall management and operation of a business, not directly tied to the production of goods or services. This includes salaries of executives, legal fees, accounting fees, and office expenses. (The significant increase in GTHP's G&A expenses to $1.287 million is a major contributor to its rising operating costs and net loss.)

Interest Expense

The cost incurred by an entity for borrowed funds. It is typically calculated as the interest rate multiplied by the principal amount of the debt. (GTHP's increased interest expense to $433,000 indicates a growing debt burden or higher borrowing costs, impacting profitability.)

Common Stock Shares Outstanding

The total number of shares of common stock that have been issued by a company and are held by investors. (The increase in GTHP's outstanding shares to 83,599,156 signifies considerable dilution for existing shareholders.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, GTHP reported a net loss of $1.978 million, an increase from $1.765 million in the prior year, indicating worsening profitability. Revenue from devices and disposables saw a dramatic surge to $177,000 from $6,000, a positive sign for sales growth. However, total assets declined significantly to $903,000 from $1.378 million, primarily due to a sharp drop in cash and cash equivalents from $388,000 to $87,000, highlighting severe liquidity issues. Operating expenses and interest expenses also rose, contributing to the overall financial strain.

Key Financial Figures

• $0.001 — had 83,599,156 shares of Common Stock, $0.001 par value per share, outstanding. PAR

Filing Documents

• gthp_10q.htm (10-Q) — 1937KB
• gthp_ex101.htm (EX-10.1) — 21KB
• gthp_ex102.htm (EX-10.2) — 21KB
• gthp_ex103.htm (EX-10.3) — 168KB
• gthp_ex104.htm (EX-10.4) — 76KB
• gthp_ex105.htm (EX-10.5) — 7KB
• gthp_ex106.htm (EX-10.6) — 109KB
• gthp_ex107.htm (EX-10.7) — 146KB
• gthp_ex108.htm (EX-10.8) — 68KB
• gthp_ex109.htm (EX-10.9) — 60KB
• gthp_ex31.htm (EX-31) — 12KB
• gthp_ex32.htm (EX-32) — 4KB
• 0001477932-25-008196.txt ( ) — 9326KB
• gthp-20250930.xsd (EX-101.SCH) — 98KB
• gthp-20250930_lab.xml (EX-101.LAB) — 489KB
• gthp-20250930_cal.xml (EX-101.CAL) — 57KB
• gthp-20250930_pre.xml (EX-101.PRE) — 435KB
• gthp-20250930_def.xml (EX-101.DEF) — 307KB
• gthp_10q_htm.xml (XML) — 1412KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION Page Item 1.

Financial Statements

Financial Statements 3 Unaudited Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 3 Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2025 and 2024 5 Unaudited Condensed Consolidated Statements of Stockholders' Deficit for the Three and Nine Months Ended September 30, 2025 and 2024 6 Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 14 Notes to Unaudited Condensed Consolidated Financial Statements 16 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 47 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 57 Item 4.

Controls and Procedures

Controls and Procedures 57

— OTHER INFORMATION

PART II — OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 58 Item 1A.

Risk Factors

Risk Factors 58 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58 Item 3. Defaults Upon Senior Securities 59 Item 4. Mine Safety Disclosures 59 Item 5. Other Information 59 Item 6. Exhibits 60

Signatures

Signatures 61 2 Table of Contents GUIDED THERAPEUTICS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) September 30, December 31, 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 87 $ 388 Trade receivables, net of allowance for credit losses of $ 2 and $ 1 at September 30, 2025 and December 31, 2024, respectively. 6 3 Inventory, net of reserves of $ 818 at September 30, 2025 and December 31, 2024 583 633 Other current assets 123 173 Total current assets 799 1,197 Non-Current Assets: Property and equipment, net 18 23 Operating lease right-of-use assets, net of amortization 69 141 Other assets 17 17 Total non-current assets 104 181 TOTAL ASSETS $ 903 $ 1,378 LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable $ 2,382 $ 2,094 Accounts payable, related parties 29 36 Accrued liabilities 952 1,011 Deferred revenue 689 849 Current portion of lease liability 76 106 Short-term notes payable due to related parties - 70 Current portion of long-term debt, related parties 606 532 Current portion of notes payable 116 92 Short-term convertible debt, net of discounts 411 117 Short-term convertible debt in default 1,130 1,130 Derivative liability at fair value 79 118 Total current liabilities 6,470 6,155 Long-Term Liabilities Long-term lease liability - 49 Long-term notes payable 29 47 Long-term convertible debt, net of discounts - 14 Long-term debt, related parties 50 2 Total long-term liabilities 79 112 Total liabilities 6,549 6,267 COMMITMENTS AND CONTINGENCIES (Note 6) 3 Table of Contents 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 September 30, 2025 and December 31, 2024, respectively. Liquidation preference of nil and

View Full Filing

View this 10-Q filing on SEC EDGAR