Polomar Health Services' Net Loss Triples Amid Business Model Shift

TL;DR

**PMHS is bleeding cash with revenue plummeting and losses soaring; this speculative play is a high-risk bet on a turnaround that's far from guaranteed.**

AI Summary

Polomar Health Services, Inc. (PMHS) reported a significant increase in net loss for the nine months ended September 30, 2025, reaching $1,712,193, a substantial rise from $622,544 in the same period of 2024. Revenue declined sharply to $16,174 for the nine months ended September 30, 2025, down from $37,954 in 2024, primarily due to a business model shift from local dermatological compounding to online GLP-1 agonist and erectile dysfunction drug fulfillment. Operating expenses surged, with general and administrative costs increasing to $1,588,725 from $582,119 year-over-year. The company is transitioning its business, launching SlimRx in early 2026 for weight loss medications and PoloMeds in Q1 2026 for diabetes and men's health. PMHS secured a one-year non-exclusive pharmacy services agreement with CareValidate, Inc. on September 26, 2025, for GLP-1 agonist prescriptions, with fulfillment starting October 6, 2025. The company remains highly dependent on third-party utilization of its compounded drug formulations and has faced capital access issues, supply chain delays, and logistical challenges during its business model transition.

Why It Matters

Polomar Health Services' substantial increase in net loss and declining revenue signals significant operational challenges and a precarious financial position for investors. The company's pivot from local dermatological compounding to online GLP-1 and erectile dysfunction drug fulfillment, while potentially addressing a growing market, introduces new competitive pressures from established telehealth providers and larger pharmaceutical companies. Employees face uncertainty given the operational losses and the ongoing business model transition, which could impact job security and future growth opportunities. Customers, particularly those relying on the new online fulfillment model, may experience service disruptions if the company's capital access and supply chain issues persist. The broader market will watch to see if PMHS can successfully execute its strategic shift and secure sufficient funding to compete in the rapidly evolving telehealth and compounded medication space.

Risk Assessment

Risk Level: high — The company reported a net loss of $1,712,193 for the nine months ended September 30, 2025, a 175% increase from the $622,544 loss in the prior year. Revenue declined by 57% to $16,174 from $37,954, indicating severe operational challenges and an inability to generate sufficient income. Furthermore, the company explicitly states it has had "insufficient access to capital to successfully implement its business plan," highlighting a critical liquidity risk.

Analyst Insight

Investors should exercise extreme caution and consider avoiding PMHS given the significant and increasing net losses, declining revenue, and stated insufficient access to capital. This filing suggests a highly speculative investment with substantial downside risk, despite potential future growth in GLP-1 and men's health markets.

Financial Highlights

debt To Equity

N/A

revenue

$16,174

operating Margin

N/A

total Assets

$9,269,726

total Debt

$1,503,130

net Income

-$1,712,193

eps

N/A

gross Margin

N/A

cash Position

$38,854

revenue Growth

-57.4%

Revenue Breakdown

Key Numbers

• $1,712,193 — Net Loss (Increased from $622,544 in 2024 for the nine months ended September 30, 2025)
• $16,174 — Revenue (Decreased from $37,954 in 2024 for the nine months ended September 30, 2025)
• $1,588,725 — General and administrative expenses (Increased from $582,119 in 2024 for the nine months ended September 30, 2025)
• $38,854 — Cash at end of period (As of September 30, 2025, up from $6,191 at December 31, 2024)
• $994,385 — Related party promissory notes (As of September 30, 2025, down from $1,138,570 at December 31, 2024)
• 28,053,090 — Common shares outstanding (As of November 21, 2025)
• $686,403.74 — Outstanding principal on Reprise Note (As of September 30, 2025)
• $172,136.16 — Draws on CWR Note II (As of September 30, 2025)
• 30 — States licensed for prescription delivery (As of September 30, 2025)
• 12% — Interest rate on Reprise Note and CWR Note II (Annual interest rate)

Key Players & Entities

• Polomar Health Services, Inc. (company) — Registrant
• PMHS (company) — Ticker symbol
• CareValidate, Inc. (company) — New pharmacy services agreement partner
• Reprise Management, Inc. (company) — Lender for Promissory Note and Loan Agreement
• CWR 1, LLC (company) — Significant shareholder and lender
• Daniel Gordon (person) — President of Reprise and manager of CWR
• SlimRx TM (company) — Upcoming weight loss online platform
• PoloMeds TM (company) — Upcoming platform for diabetes and men's health medications
• U.S. Patent and Trademark Office (regulator) — Trademark application authority
• Fastbase (company) — Former owner of the company

FAQ

Risk Factors

• Significant Increase in Net Loss [high — financial]: The company reported a net loss of $1,712,193 for the nine months ended September 30, 2025, a substantial increase from $622,544 in the prior year period. This indicates a worsening financial performance during the business transition.
• Business Model Transition Challenges [high — operational]: PMHS is undergoing a significant business model shift from local dermatological compounding to online fulfillment of GLP-1 agonists and erectile dysfunction drugs. This transition has led to sharp revenue declines and operational complexities.
• Declining Revenue [high — financial]: Revenue for the nine months ended September 30, 2025, plummeted to $16,174 from $37,954 in the same period of 2024. This sharp decrease is directly attributed to the shift away from the previous business model.
• Surging Operating Expenses [high — financial]: General and administrative expenses more than doubled, increasing to $1,588,725 for the nine months ended September 30, 2025, from $582,119 in the prior year. This surge contributes significantly to the widening net loss.
• Dependence on Third-Party Utilization [medium — financial]: The company remains highly dependent on third-party utilization of its compounded drug formulations. This reliance introduces external risks and limits direct control over revenue streams.
• Capital Access Issues [medium — financial]: PMHS has faced challenges in accessing capital, which could impede its ability to fund operations, invest in growth initiatives, or manage unexpected financial needs during its critical transition phase.
• Supply Chain and Logistical Challenges [medium — operational]: The company has experienced supply chain delays and logistical challenges during its business model transition. These issues can impact fulfillment, customer satisfaction, and overall operational efficiency.
• Pharmacy Licensing and Compliance [medium — regulatory]: The company is licensed for prescription delivery in 30 states. Expanding operations and maintaining compliance across multiple jurisdictions presents ongoing regulatory hurdles and potential risks.

Industry Context

The pharmaceutical fulfillment sector is increasingly shifting towards online platforms, driven by convenience and specialized services like weight loss and chronic condition management. Companies are leveraging technology to reach wider patient bases and manage prescription logistics. However, this space is competitive, with established players and emerging digital health companies vying for market share, often requiring significant investment in technology, marketing, and regulatory compliance.

Regulatory Implications

PMHS operates in a highly regulated industry. The shift to online prescription fulfillment requires strict adherence to state and federal pharmacy laws, data privacy regulations (like HIPAA), and drug distribution controls. Expansion into new states necessitates obtaining and maintaining appropriate licenses, and any non-compliance could lead to significant penalties, operational disruptions, or loss of licensure.

What Investors Should Do

1. Monitor the success of the SlimRx and PoloMeds launches in early 2026, as these are critical to the company's future revenue generation and profitability.
2. Closely track operating expense trends, particularly G&A, to assess management's ability to control costs during the transition and scale operations efficiently.
3. Evaluate the company's ability to secure additional capital, given its current low cash position and history of capital access issues, which is vital for sustaining operations and growth.
4. Assess the impact of the CareValidate agreement and any future partnerships on revenue growth and operational stability.
5. Analyze the company's progress in overcoming supply chain and logistical challenges to ensure reliable service delivery.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Period for which financial results show a significant increase in net loss and sharp revenue decline due to business model shift.
• 2025-09-30: Balance Sheet Date — Reflects current assets of $197,664 and total assets of $9,269,726, with cash at $38,854.
• 2025-09-26: CareValidate, Inc. Pharmacy Services Agreement — Secured a one-year non-exclusive agreement for GLP-1 agonist prescriptions, a key step in the new business model.
• 2025-10-06: Start of GLP-1 Fulfillment — Commencement of prescription fulfillment under the CareValidate agreement, marking the operational launch of a new revenue stream.
• 2026-Q1: Launch of PoloMeds — Planned launch for diabetes and men's health drug fulfillment, expanding the company's online pharmacy offerings.
• 2026-early: Launch of SlimRx — Planned launch for weight loss medications, a core component of the company's new strategic direction.

Glossary

GLP-1 agonist

A class of drugs that mimic the effects of glucagon-like peptide-1, often used for managing type 2 diabetes and weight loss. (Central to PMHS's new online fulfillment business model.)

Dermatological Compounding

The practice of preparing customized medications for dermatological conditions, often on a local basis. (The previous business model of PMHS that has been phased out.)

Stockholders' Deficit

A situation where a company's total liabilities exceed its total assets, resulting in a negative equity position. (Indicates the company's financial position where liabilities outweigh equity.)

Unearned Revenue

Revenue that has been received by the company for goods or services that have not yet been delivered or rendered. (Represents payments received for future services, indicating potential future revenue streams.)

Related party promissory notes

Loans or debt instruments between entities that are related through common ownership or control, such as between a company and its executives or major shareholders. (Represents debt owed to parties with a connection to the company, which can have implications for financial flexibility and governance.)

Intellectual property

Intangible assets such as patents, trademarks, and copyrights that are owned by a company. (A significant asset on PMHS's balance sheet, potentially related to its formulations or technology.)

Year-Over-Year Comparison

Compared to the prior year period, Polomar Health Services, Inc. has experienced a dramatic decline in revenue, falling from $37,954 to $16,174 for the nine months ended September 30, 2025, reflecting a strategic pivot away from its previous business model. Concurrently, the net loss has widened significantly from $622,544 to $1,712,193, driven by a substantial increase in general and administrative expenses to $1,588,725 from $582,119. While cash reserves have improved from $6,191 to $38,854, the company faces ongoing challenges related to capital access and operational execution during its business model transition.

Filing Documents

• form10-q.htm (10-Q) — 757KB
• ex2-3.htm (EX-2.3) — 20KB
• ex10-12.htm (EX-10.12) — 25KB
• ex10-13.htm (EX-10.13) — 118KB
• ex10-14.htm (EX-10.14) — 87KB
• ex10-15.htm (EX-10.15) — 197KB
• ex10-16.htm (EX-10.16) — 22KB
• ex10-17.htm (EX-10.17) — 19KB
• ex10-18.htm (EX-10.18) — 20KB
• ex14-1.htm (EX-14.1) — 14KB
• ex31-1.htm (EX-31.1) — 19KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 6KB
• 0001493152-25-024957.txt ( ) — 4468KB
• pmhs-20250930.xsd (EX-101.SCH) — 21KB
• pmhs-20250930_cal.xml (EX-101.CAL) — 32KB
• pmhs-20250930_def.xml (EX-101.DEF) — 129KB
• pmhs-20250930_lab.xml (EX-101.LAB) — 254KB
• pmhs-20250930_pre.xml (EX-101.PRE) — 207KB
• form10-q_htm.xml (XML) — 417KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1:

Financial Statements

Financial Statements 3 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 4 Item 3:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 9 Item 4:

Controls and Procedures

Controls and Procedures 9

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1:

Legal Proceedings

Legal Proceedings 10 Item 1A:

Risk Factors

Risk Factors 10 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 10 Item 3: Defaults Upon Senior Securities 10 Item 5: Other Information 10 Item 6: Exhibits 11 2 PART I - FINANCIAL INFORMATION Item 1. Financial Statements Our condensed unaudited financial statements included in this Form 10-Q are as follows: F-1 Balance Sheets as of September 30, 2025 and December 31, 2024. F-2 F-3 2024. F-4 F-5 Notes to Condensed Unaudited Financial Statements These condensed unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United considered necessary for a fair presentation have been included. Operating results for the interim period ended September 30, 2025, are not necessarily indicative of the results that can be expected for the full year. 3 POLOMAR HEALTH SERVICES, INC. (formerly TRUSTFEED CORP.) BALANCE SHEETS September 30, 2025 December 31, 2024 (unaudited) ASSETS Current assets Cash $ 38,854 $ 6,191 Accounts Receivable $ - $ 1,845 Inventory 158,810 68,777 Total current assets 197,664 76,813 Property, plant and equipment 41,458 41,458 Leasehold improvements 49,435 49,435 Accumulated Depreciations ( 37,952 ) ( 9,488 ) Property and equipment, net 52,941 81,405 Other assets Operating lease - right-of-use asset, net 23,620 49,180 Intellectual property 9,735,000 9,735,000 Other intangible assets 250,000 250,000 Accumulated Amortization ( 998,499 ) ( 249,625 ) Security depos

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View this 10-Q filing on SEC EDGAR