RemSleep's Revenue Plunges 90%, Net Loss Widens Amid Soaring Expenses

TL;DR

**RMSL is a burning dumpster fire, avoid at all costs; massive losses and dilution signal impending doom.**

AI Summary

RemSleep Holdings Inc. (RMSL) reported a significant decline in revenue and a substantial increase in net loss for the nine months ended September 30, 2025. Revenue plummeted by 90% to $12,278 from $122,735 in the prior year period. The net loss widened dramatically to $2,685,406, a 255% increase from a net loss of $756,088 in the same period of 2024. This was largely driven by a massive surge in compensation expense – related party, which soared to $2,248,000 from $105,000, and increased interest expense of $350,100. The company's cash position decreased to $343,948 as of September 30, 2025, from $463,343 at December 31, 2024, with net cash used in operating activities totaling $373,395. RMSL also issued 2,000,000 shares of Series C preferred stock for services valued at $2,160,000 and 50,754,443 common shares for debt, indicating reliance on equity financing. The company faces significant going concern risks due to its accumulated deficit of $17,956,162 and continued operating losses.

Why It Matters

This filing reveals a company in severe financial distress, which is critical for investors. The 90% revenue drop and 255% increase in net loss signal a rapidly deteriorating business model and operational inefficiencies. The heavy reliance on issuing preferred and common stock for services and debt conversion, rather than cash, suggests a struggle to secure traditional financing, potentially diluting existing shareholders significantly. For employees, this financial instability could raise concerns about job security. Customers might face uncertainty regarding product support or future innovation from a company struggling to stay afloat. In the broader market, this highlights the challenges faced by smaller medical device companies in competitive sectors, especially those with limited product lines like sleep apnea devices, against larger, more established players.

Risk Assessment

Risk Level: high — The company has an accumulated deficit of $17,956,162 as of September 30, 2025, and reported a net loss of $2,685,406 for the nine months ended September 30, 2025. Net cash used in operating activities was $373,395, and revenue declined by 90% to $12,278, indicating severe operational and financial challenges that raise substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should consider divesting any holdings in RMSL due to the severe financial deterioration, including a 90% revenue drop and a 255% increase in net loss. The significant going concern risk and reliance on dilutive equity financing make this a highly speculative and risky investment.

Financial Highlights

debt To Equity

0.86

revenue

$12,278

operating Margin

N/A

total Assets

$464,065

total Debt

$214,725

net Income

$(2,685,406)

eps

N/A

gross Margin

95%

cash Position

$343,948

revenue Growth

-90%

Revenue Breakdown

Key Numbers

• $12,278 — Revenue (90% decrease from $122,735 in the prior year period)
• $(2,685,406) — Net Loss (255% increase from $(756,088) in the prior year period)
• $2,248,000 — Related Party Compensation Expense (Significant increase from $105,000, driving losses)
• $343,948 — Cash (Decreased from $463,343 at year-end 2024)
• $(373,395) — Net Cash Used in Operating Activities (Indicates ongoing cash burn from operations)
• $17,956,162 — Accumulated Deficit (Highlights severe historical losses and going concern risk)
• 1,617,658,094 — Common Shares Outstanding (As of November 18, 2025, indicating significant dilution)
• 90% — Revenue Decline (Year-over-year decline for the nine months ended September 30, 2025)
• 255% — Net Loss Increase (Year-over-year increase for the nine months ended September 30, 2025)
• $2,160,000 — Preferred Stock Issued for Services (Non-cash expense contributing to net loss)

Key Players & Entities

• RemSleep Holdings Inc. (company) — registrant
• $12,278 (dollar_amount) — revenue for nine months ended September 30, 2025
• $122,735 (dollar_amount) — revenue for nine months ended September 30, 2024
• $2,685,406 (dollar_amount) — net loss for nine months ended September 30, 2025
• $756,088 (dollar_amount) — net loss for nine months ended September 30, 2024
• $2,248,000 (dollar_amount) — compensation expense – related party for nine months ended September 30, 2025
• $105,000 (dollar_amount) — compensation expense – related party for nine months ended September 30, 2024
• $343,948 (dollar_amount) — cash balance as of September 30, 2025
• $463,343 (dollar_amount) — cash balance as of December 31, 2024
• $17,956,162 (dollar_amount) — accumulated deficit as of September 30, 2025

FAQ

Risk Factors

• Substantial Accumulated Deficit and Operating Losses [high — financial]: The company has an accumulated deficit of $17,956,162 as of September 30, 2025. This, coupled with continued operating losses, raises significant concerns about the company's ability to continue as a going concern.
• Deteriorating Revenue and Widening Net Loss [high — financial]: Revenue for the nine months ended September 30, 2025, decreased by 90% to $12,278 from $122,735 in the prior year. Concurrently, the net loss increased by 255% to $2,685,406 from $756,088.
• Increased Related Party Compensation Expense [high — financial]: Compensation expense – related party surged to $2,248,000 for the nine months ended September 30, 2025, from $105,000 in the same period last year, significantly contributing to the widened net loss.
• Decreasing Cash Position and Operating Cash Burn [high — financial]: The company's cash decreased to $343,948 as of September 30, 2025, from $463,343 at December 31, 2024. Net cash used in operating activities was $373,395 for the nine months ended September 30, 2025.
• Reliance on Equity Financing and Dilution [medium — financial]: The company issued 2,000,000 shares of Series C preferred stock for services valued at $2,160,000 and 50,754,443 common shares for debt. This indicates a reliance on equity to fund operations and manage liabilities, potentially leading to further dilution.
• Inventory and Related Party Prepaid Expenses [low — operational]: The balance sheet shows inventory of $22,470 as of September 30, 2025, which was not present at year-end 2024. The company also had a prepaid expense – related party of $7,500 at year-end 2024, which is no longer listed.

Industry Context

RemSleep Holdings Inc. operates in the sleep apnea product market. This sector is characterized by a growing awareness of sleep disorders and demand for related medical devices and services. However, it also faces competition from established medical device manufacturers and requires significant investment in research, development, and regulatory compliance.

Regulatory Implications

As a company involved in medical products, RemSleep Holdings Inc. is subject to stringent regulations from bodies like the FDA. Compliance with these regulations requires ongoing investment and adherence to quality standards. Any failure to comply can result in product recalls, fines, or market access restrictions.

What Investors Should Do

1. Scrutinize Management's Strategy for Revenue Turnaround
2. Assess the Sustainability of Operations and Funding
3. Investigate Related Party Compensation
4. Monitor Going Concern Disclosures

Key Dates

• 2025-09-30: Nine Months Ended — Reporting period for the significant revenue decline, increased net loss, and cash burn.
• 2025-12-31: Year End — Prior period balance sheet comparison point for cash and other assets/liabilities.
• 2024-09-30: Nine Months Ended — Prior year period for comparison of revenue and net loss performance.
• 2024-12-31: Year End — Audited balance sheet figures used for comparison with the unaudited September 30, 2025 figures.

Glossary

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income or other gains. It represents a negative retained earnings balance. (Indicates the company's history of unprofitability and is a key indicator of going concern risk.)

Going Concern

An accounting assumption that a company will continue to operate for the foreseeable future, typically at least 12 months from the balance sheet date. (The company's financial condition, including its accumulated deficit and operating losses, raises substantial doubt about its ability to continue as a going concern.)

Related Party Transaction

A transaction between entities that are related to each other, such as between a company and its officers, directors, or major shareholders. (The significant increase in related party compensation expense is a major driver of the company's increased net loss.)

Series C Preferred Stock

A class of preferred stock with specific rights and preferences, issued by the company. In this case, issued for services. (The issuance of this stock for services represents a non-cash expense and contributes to the company's capital structure and potential dilution.)

Debt Discount

The difference between the face value of a debt instrument and the amount received when it is issued, typically when the interest rate on the debt is lower than the market rate. (Affects the carrying value of convertible notes payable on the balance sheet.)

Year-Over-Year Comparison

Compared to the prior year period, RemSleep Holdings Inc. has experienced a dramatic downturn. Revenue has plummeted by 90% to $12,278, while the net loss has widened by 255% to $2,685,406. This deterioration is largely attributed to a substantial increase in related party compensation expense, which surged from $105,000 to $2,248,000. The company's cash position has also decreased, and it continues to burn cash from operations, highlighting a worsening financial condition.

Key Financial Figures

• $0 — 0, 2025 and December 31, 2024, there is $0 and $ 9,050 deposits for inventory for

Filing Documents

• ea0265930-10q_remsleep.htm (10-Q) — 676KB
• ea026593001ex10-1_remsleep.htm (EX-10.1) — 167KB
• ea026593001ex31-1_remsleep.htm (EX-31.1) — 7KB
• ea026593001ex32-1_remsleep.htm (EX-32.1) — 4KB
• 0001213900-25-112640.txt ( ) — 4479KB
• rmsl-20250930.xsd (EX-101.SCH) — 33KB
• rmsl-20250930_cal.xml (EX-101.CAL) — 35KB
• rmsl-20250930_def.xml (EX-101.DEF) — 203KB
• rmsl-20250930_lab.xml (EX-101.LAB) — 342KB
• rmsl-20250930_pre.xml (EX-101.PRE) — 214KB
• ea0265930-10q_remsleep_htm.xml (XML) — 406KB

- FINANCIAL INFORMATION

PART I. - FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Plan of Operations 2 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 6 Item 4

Controls and Procedures

Controls and Procedures 6

- OTHER INFORMATION

PART II - OTHER INFORMATION 7 Item 1.

Legal Proceedings

Legal Proceedings 7 Item 1A.

Risk Factors

Risk Factors 7 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 7 Item 3. Defaults Upon Senior Securities 7 Item 4. Mine Safety Disclosures 7 Item 5. Other Information 7 Item 6. Exhibits 7

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS REMSLEEP HOLDINGS, INC. Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 (audited) F-1 F-2 F-3 F-5 Notes to the Financial Statements (unaudited) F-6 1 REMSLEEP HOLDINGS, INC. BALANCE SHEETS September 30, 2025 December 31, 2024 ASSETS (Unaudited) (Audited) Current assets: Cash $ 343,948 $ 463,343 Accounts receivable, net of allowance of $ 9,741 and $ 7,000 , respectively — 2,741 Other assets 6,250 9,100 Prepaid – related party — 7,500 Inventory 22,470 — Deposit on inventory — 9,050 Total current assets 372,668 491,734 Other asset 10,000 10,000 Right of use asset 30,642 16,154 Property and equipment, net 50,755 73,809 Total Assets $ 464,065 $ 591,697 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities: Accounts payable $ 14,000 $ 30,000 Accrued compensation 46,000 46,000 Convertible notes payable, net of $ 70,976 and $ 100,162 debt discount, respectively 68,124 16,438 Accrued interest 8,242 1,406 Derivative liability 47,717 152,014 Operating lease liability – current portion 18,382 9,136 Total current liabilities 202,465 254,994 Operating lease liability – net of current portion 12,260 — Total Liabilities 214,725 254,994 Commitments and Contingencies — — STOCKHOLDERS' EQUITY (DEFICIT): Series A preferred stock, $ 0.001 par value, 5,000,000 shares authorized, 5,000,000 and issued and outstanding 5,000 5,000 Series B preferred stock, $ 0.001 par value, 5,000,000 shares authorized, 500,000 shares issued and outstanding 500 500 Series C preferred stock, $ 0.001 p

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS SEPTEMBR 30, 2025 (Unaudited) NOTE 1 – BACKGROUND Business Activity REMSleep Holdings, Inc., (the "Company") was incorporated in the State of Nevada on June 6, 2007 . On January 5, 2015 the name of the Company was changed to REMSleep Holdings, Inc. and the business model was changed to reflect the new direction of the Company; to develop and distribute products to help people affected by sleep apnea. On May 30, 2015, REMSleep LLC was formally merged into REMSleep Holdings, Inc. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation These unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC"). These financial statements and the notes attached hereto should be read in conjunction with the financial statements and notes included in the Company's 10-K for its fiscal year ended December 31, 2024. In the opinion of the Company, all adjustments, including normal recurring adjustments necessary to present fairly the financial position of the Company, as of September 30, 2025, and the results of its operations and cash flows for the nine months then ended have been included. The results of operations for the interim period are not necessarily indicative of the results for the full year ending December 31, 2025. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which

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View this 10-Q filing on SEC EDGAR