Sunshine Biopharma's Losses Widen Despite Revenue Growth

TL;DR

**Sunshine Biopharma's revenue growth is overshadowed by ballooning losses and asset impairments, making it a risky bet.**

AI Summary

Sunshine Biopharma Inc. reported a net loss of $3,834,425 for the nine months ended September 30, 2025, an increase from a net loss of $2,975,904 in the same period of 2024. Despite this, revenue grew to $27,728,750 for the nine months ended September 30, 2025, up from $25,279,291 in 2024, representing a 9.7% increase. Gross profit also improved to $9,226,832 from $7,576,745 year-over-year. However, general and administrative expenses surged to $13,663,850 from $11,351,144, primarily due to a significant impairment of intangible assets totaling $1,616,459, which was zero in the prior year. The company's cash and cash equivalents decreased to $9,306,438 as of September 30, 2025, from $9,686,529 at December 31, 2024. Strategic outlook includes continued focus on generic prescription drugs in Canada and development of proprietary drugs like K1.1 mRNA for liver cancer and SBFM-PL4 for SARS Coronavirus infections. The company completed a registered direct offering on April 3, 2025, raising net proceeds of $1,828,596.

Why It Matters

For investors, Sunshine Biopharma's widening net loss to $3.83 million, despite a 9.7% revenue increase, signals challenges in profitability and cost control, particularly with a $1.6 million intangible asset impairment. The company's reliance on the Canadian generic drug market, which is subject to government pricing policies, introduces regulatory risk. The ongoing dispute with former Nora Pharma seller Mr. Malek Chamoun over a $295,797 earnout could impact future operational stability and investor confidence. Competitively, the generic drug market is highly sensitive to pricing agreements, and the company's ability to navigate these will be crucial for sustained growth and market share against larger pharmaceutical players.

Risk Assessment

Risk Level: high — The company reported a net loss of $3,834,425 for the nine months ended September 30, 2025, a significant increase from $2,975,904 in the prior year. This is exacerbated by a $1,616,459 impairment of intangible assets, indicating potential issues with product commercialization or valuation. Additionally, the company has an accumulated deficit of $72,874,199 as of September 30, 2025, and cash and cash equivalents decreased by $380,091 since December 31, 2024.

Analyst Insight

Investors should exercise extreme caution and thoroughly evaluate Sunshine Biopharma's ability to achieve profitability and manage its expenses. Monitor future filings for signs of improved cost control, successful commercialization of proprietary drugs, and resolution of the earnout dispute, as the current financial trajectory suggests significant operational hurdles.

Financial Highlights

debt To Equity

0.30

revenue

$27.73M

operating Margin

-16.0%

total Assets

$31.49M

total Debt

$7.29M

net Income

($3.83M)

eps

($0.98)

gross Margin

33.3%

cash Position

$9.31M

revenue Growth

+9.7%

Revenue Breakdown

Key Numbers

• $27.73M — Revenue (Increased from $25.28M in 2024 for the nine months ended September 30, 2025)
• $3.83M — Net Loss (Increased from $2.98M in 2024 for the nine months ended September 30, 2025)
• $1.62M — Impairment of intangible assets (Recorded for the nine months ended September 30, 2025, compared to $0 in 2024)
• $9.31M — Cash and cash equivalents (Decreased from $9.69M at December 31, 2024)
• $72.87M — Accumulated Deficit (As of September 30, 2025, indicating significant historical losses)
• $1.83M — Net proceeds from public offering (Received on April 3, 2025)
• 4,905,945 — Common shares outstanding (As of November 13, 2025)
• $295,797 — Remaining earnout payable (In dispute with former Nora Pharma seller Mr. Malek Chamoun)
• 9.7% — Revenue growth (For the nine months ended September 30, 2025, compared to 2024)
• $9.23M — Gross profit (Increased from $7.58M in 2024 for the nine months ended September 30, 2025)

Key Players & Entities

• Sunshine Biopharma Inc. (company) — registrant
• Nora Pharma Inc. (company) — wholly owned subsidiary
• Sunshine Biopharma Canada Inc. (company) — wholly owned subsidiary
• Mr. Malek Chamoun (person) — seller of Nora Pharma
• Health Canada (regulator) — authorizes Nora Pharma's operations
• pan-Canadian Pharmaceutical Alliance (pCPA) (regulator) — negotiates drug prices
• Canadian Generic Pharmaceutical Association (CGPA) (company) — negotiates drug prices
• NASDAQ Stock Market LLC (regulator) — exchange where securities are registered
• Securities and Exchange Commission (SEC) (regulator) — filing authority
• Colorado (regulator) — state of incorporation

FAQ

Risk Factors

• Canadian Drug Pricing Policies [high — regulatory]: Generic drug prices in Canada are highly dependent on government policies and reimbursement programs. Changes in these policies, particularly negotiations with the pan-Canadian Pharmaceutical Alliance (pCPA), could materially impact pricing and profitability.
• Increasing Net Loss and Cash Burn [high — financial]: The company reported a net loss of $3.83M for the nine months ended September 30, 2025, an increase from $2.98M in the prior year. Cash and cash equivalents decreased to $9.31M from $9.69M at year-end 2024, indicating a continued need for financing.
• Intangible Asset Impairment [medium — operational]: A significant impairment of intangible assets totaling $1.62M was recorded for the nine months ended September 30, 2025, compared to zero in the prior year. This indicates a potential write-down of value in acquired assets.
• Reliance on Public Offerings [medium — financial]: The company raised $1.83M in net proceeds from a registered direct offering on April 3, 2025. Continued reliance on equity financing may dilute existing shareholders.
• Earnout Payable Dispute [low — legal]: There is a remaining earnout payable of $295,797 in dispute with the former Nora Pharma seller, Mr. Malek Chamoun. This could lead to potential legal costs or settlement expenses.
• Proprietary Drug Development Risks [high — operational]: The development of proprietary drugs like K1.1 mRNA for liver cancer and SBFM-PL4 for SARS Coronavirus infections involves significant R&D costs and inherent risks of failure in clinical trials and regulatory approval.

Industry Context

Sunshine Biopharma operates in the pharmaceutical sector, with a dual focus on generic prescription drugs in Canada and the development of proprietary drugs. The Canadian generic drug market is influenced by government pricing negotiations and reimbursement policies, as seen with the pCPA. The proprietary drug segment involves high-risk, high-reward R&D for novel treatments in areas like oncology and infectious diseases.

Regulatory Implications

The company's Canadian operations are subject to provincial and federal government drug reimbursement policies, which can significantly impact pricing and revenue. Changes in these policies or negotiation outcomes with bodies like the pCPA pose a continuous regulatory risk. Development of proprietary drugs requires adherence to stringent FDA and Health Canada regulations for clinical trials and market approval.

What Investors Should Do

1. Monitor R&D Pipeline Progress
2. Analyze Cash Burn and Financing Needs
3. Evaluate Canadian Generic Drug Market Dynamics
4. Assess Impact of Intangible Asset Impairment

Key Dates

• 2025-04-03: Completed registered direct offering — Raised $1.83M in net proceeds, providing additional capital for operations and development.
• 2025-09-30: End of the nine-month period — Reporting period for the 10-Q, showing increased revenue but also a larger net loss and decreased cash.
• 2024-10-01: Updated generic drug pricing in Canada took effect — These prices are valid for three years and impact the core revenue stream from Nora Pharma.
• 2024-02-10: Canadian federal government joined generic drug reimbursement program — Further strengthened the Canadian generic drug market, a key focus for the company.

Glossary

Reverse Acquisition

A transaction where a legal shell company acquires an operating company, with the operating company being the acquirer in substance. The accounting rules require the transaction to be treated as if the acquired company issued stock to acquire the shell company. (Explains how Sunshine Biopharma Inc. became the operating entity after acquiring a Colorado-based company.)

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, copyrights, and goodwill. They are subject to impairment if their carrying value exceeds their recoverable amount. (A significant $1.62M impairment was recorded, impacting the company's profitability and asset valuation.)

Accumulated Deficit

The cumulative net losses of a company since its inception that have not been offset by net income. It represents a negative balance in retained earnings. (Indicates the company has a history of significant losses, with an accumulated deficit of $72.87M as of September 30, 2025.)

Earnout Payable

A contingent payment made to a seller of a business based on the future performance of the acquired business. It is recorded as a liability. (A $295,797 earnout payable is in dispute, representing a potential financial obligation.)

Lipid Nano-Particle (LNP)

A type of nanoparticle used to deliver genetic material (like mRNA) into cells. LNPs are composed of lipids and are crucial for the efficacy of mRNA-based therapies. (K1.1 mRNA, a proprietary drug candidate for liver cancer, utilizes LNP technology.)

PLpro protease inhibitor

A type of drug that inhibits the activity of the PLpro (papain-like protease) enzyme, which is important for the replication of certain viruses, including coronaviruses. (SBFM-PL4, a proprietary drug candidate, is designed as a PLpro protease inhibitor for SARS Coronavirus infections.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, Sunshine Biopharma Inc. saw revenue increase by 9.7% to $27.73M compared to $25.28M in the prior year. However, the net loss widened from $2.98M to $3.83M, largely due to a significant $1.62M impairment of intangible assets, which was zero in the prior period. General and administrative expenses also rose. The company's cash position slightly decreased from $9.69M at year-end 2024 to $9.31M as of September 30, 2025.

Key Financial Figures

• $0 — he registrant's common stock, par value $0.001, issued and outstanding as of Novem
• $2,440.00 — s common stock valued at $ 4,514,000 or $2,440.00 per share. Nora Pharma sells generic ph
• $250,000 — in the form of twenty (20) payments of $250,000 CAD for every $1,000,000 CAD increase i
• $1,000,000 — (20) payments of $250,000 CAD for every $1,000,000 CAD increase in gross sales (as defined
• $3,632,000 — t with him. The total earnout amount of $3,632,000 has been recorded as a salary payable.
• $1,595,711 — and $ 1,595,711 , respectively. Of the $1,595,711 amount, $400,000 was paid to Advanomics
• $400,000 — respectively. Of the $1,595,711 amount, $400,000 was paid to Advanomics Corporation, a c
• $0.10 — preference equal to the stated value of $0.10 per share, relative to the common stock
• $2.00 — 24 Pre-Funded Warrants") exercisable at $2.00 per share, 3,986 Series A Warrants exer
• $4,200.00 — 3,986 Series A Warrants exercisable at $4,200.00 per share (subject to adjustment), or p
• $4,760.00 — 7,973 Series B Warrants exercisable at $4,760.00 per share, subject to adjustment. As of
• $45,000 — n the Company receiving net proceeds of $45,000, (ii) all of the Series A Warrants have
• $2.07 — eir exercise price had been adjusted to $2.07 as a result of two reverse stock splits

Filing Documents

• sunshine_i10q-093025.htm (10-Q) — 590KB
• sunshine_ex3101.htm (EX-31.1) — 11KB
• sunshine_ex3102.htm (EX-31.2) — 11KB
• sunshine_ex3201.htm (EX-32.1) — 4KB
• image_001.jpg (GRAPHIC) — 11KB
• 0001683168-25-008328.txt ( ) — 3598KB
• sbfm-20250930.xsd (EX-101.SCH) — 31KB
• sbfm-20250930_cal.xml (EX-101.CAL) — 48KB
• sbfm-20250930_def.xml (EX-101.DEF) — 124KB
• sbfm-20250930_lab.xml (EX-101.LAB) — 263KB
• sbfm-20250930_pre.xml (EX-101.PRE) — 221KB
• sunshine_i10q-093025_htm.xml (XML) — 402KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 3 Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 3 Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 4 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 (Unaudited) 5 Consolidated Statement of Shareholders' Equity for the Three and Nine Months Ended September 30, 2025 and 2024 (Unaudited) 6 Notes to Unaudited Consolidated Financial Statements 7 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 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 24

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Sunshine Biopharma Inc. Consolidated Balance Sheets September 30, December 31, 2025 2024 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 9,306,438 $ 9,686,529 Accounts receivable 4,155,599 3,868,418 Inventory 14,063,706 11,278,105 Prepaid expenses 441,489 1,133,297 Total Current Assets 27,967,232 25,966,349 Long-Term Assets: Property & equipment 598,087 546,055 Intangible assets 2,009,337 3,019,717 Deferred tax asset 92,234 92,234 Right-of-use-asset 820,489 936,037 Total Long-Term Assets 3,520,147 4,594,043 TOTAL ASSETS $ 31,487,379 $ 30,560,392 LIABILITIES Current Liabilities: Accounts payable & accrued expenses $ 6,137,465 $ 5,543,085 Earnout payable 295,797 295,797 Income tax payable – 268,276 Right-of-use-liability 218,053 207,756 Total Current Liabilities 6,651,315 6,314,914 Long-Term Liabilities: Right-of-use-liability 636,708 744,724 Total Long-Term Liabilities 636,708 744,724 TOTAL LIABILITIES 7,288,023 7,059,638 SHAREHOLDERS' EQUITY Preferred Stock Series B $ 0.10 par value per share; 1,000,000 shares authorized; 130,000 shares issued and outstanding 13,000 13,000 Common Stock $ 0.001 par value per share; 3,000,000,000 shares authorized; 4,555,945 and 2,580,098 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 4,555 2,580 Capital paid in excess of par value 97,376,841 93,354,907 Accumulated comprehensive income ( 320,841 ) ( 829,959 ) Accumulated (Deficit) ( 72,874,199 ) ( 69,039,774 ) TOTAL SHAREHOLDERS' EQUITY 24,199,356 23,500,754 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 31,487,379 $ 30,560,392 See Accompanying Notes To These Unaudited Consolidated

Financial Statements

Financial Statements 3 Sunshine Biopharma Inc. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) 3 Months 3 Months 9 Months 9 Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2025 2024 2025 2024 Revenue: $ 9,417,179 $ 8,435,178 $ 27,728,750 $ 25,279,291 Cost of Sales 6,343,639 5,569,027 18,501,918 17,702,546 Gross profit 3,073,540 2,866,151 9,226,832 7,576,745 General & Administrative Expenses: Accounting 135,413 124,772 504,783 565,172 Consulting 159,003 475,032 1,261,017 576,481 Director fees 100,000 100,000 300,000 300,000 Legal 193,009 118,311 285,203 563,745 Marketing 235,217 282,745 835,236 737,116 Office 614,661 530,334 2,347,144 2,203,970 R&D 119,298 126,362 530,807 784,630 Salaries 1,833,172 2,093,850 5,407,294 5,183,738 Taxes 119,909 56,471 342,760 278,177 Impairment of intangible assets 554,650 – 1,616,459 – Depreciation 95,821 64,627 233,147 158,115 Total G & A 4,160,153 3,972,504 13,663,850 11,351,144 (Loss) from operations ( 1,086,613 ) ( 1,106,353 ) ( 4,437,018 ) ( 3,774,399 ) Other Income (Expenses): (Loss) on asset sale ( 10,250 ) – ( 10,250 ) – Foreign exchange gain (loss) 253 15,153 2,644 295,921 Interest income 75,352 108,614 223,434 396,698 Interest expense – – – ( 245 ) Total Other Income (Expenses) 65,355 123,767 215,828 692,374 Net (loss) before income taxes ( 1,021,258 ) ( 982,586 ) ( 4,221,190 ) ( 3,082,025 ) Provision for income taxes 137,438 ( 215,217 ) 386,765 106,121 Net (Loss) $ ( 883,820 ) $ ( 1,197,803 ) $ ( 3,834,425 ) $ ( 2,975,904 ) Other comprehensive income: Gain (Loss) from foreign exchange translation ( 601,628 ) 851,640 509,118 ( 527,515 ) Comprehensive (Loss) $ ( 1,485,448 ) $ ( 346,163 ) $ ( 3,325,307 ) $ ( 3,503,419 ) Basic (Loss) per common share $ ( 0.19 ) $ ( 0.94 ) $ ( 0

Financial Statements

Financial Statements 4 Sunshine Biopharma Inc. Consolidated Statements of Cash Flows (Unaudited) September 30, September 30, 2025 2024 Cash Flows From Operating Activities: Net (Loss) $ ( 3,834,425 ) $ ( 2,975,904 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 233,489 158,128 Intangible asset impairment 1,616,459 – Stock issued for services – 12,000 Accounts receivable ( 157,466 ) ( 1,321,173 ) Inventory ( 2,410,073 ) ( 4,201,955 ) Prepaid expenses 291,716 251,391 Reduction in right-of-use asset 147,016 92,231 Accounts payable & accrued expenses 375,084 2,229,074 Lease liability ( 129,741 ) ( 87,852 ) Earn-out payable – ( 2,547,831 ) Income tax payable 152,874 ( 727,628 ) Net Cash Flows (Used In) Operating Activities ( 3,715,067 ) ( 9,119,519 ) Cash Flows From Investing Activities: Purchase of intangible assets ( 620,817 ) ( 327,088 ) Purchase of equipment ( 175,530 ) ( 1,554,455 ) Asset disposition 10,250 – Net Cash Flows (Used In) Investing Activities ( 786,097 ) ( 1,881,543 ) Cash Flows From Financing Activities: Proceeds from public offering net (common stock) 1,828,596 8,522,411 Exercise of warrants 2,195,312 1,940,610 Purchase of treasury stock – ( 3,139,651 ) Net Cash Flows Provided by Financing Activities 4,023,908 7,323,370 Cash and Cash Equivalents at Beginning of Period 9,686,529 16,292,347 Net increase (decrease) in cash and cash equivalents ( 477,256 ) ( 3,677,692 ) Foreign currency translation adjustment 97,165 ( 408,000 ) Cash and Cash Equivalents at End of Period $ 9,306,438 $ 12,206,655 Supplementary Disclosure of Cash Flow Information: Cash paid for income taxes $ – $ 956,012 Stock issued for services $ – $ 12,000 See Accompanying Notes To These Unaudited Consolidated

Financial Statements

Financial Statements 5 Sunshine Biopharma Inc. Consolidated Statements of Shareholders' Equity (Unaudited) Number Of Common Shares Common Capital Paid in Excess Number Of Preferred Shares Preferred Comprehensive Accumulated Three Months Period Issued Stock of Par Value Issued Stock Income Deficit Total Balance at June 30, 2025 4,555,945 $ 4,555 $ 97,376,841 130,000 $ 13,000 $ 280,787 $ ( 71,990,379 ) $ 25,684,804 Net (loss) – – – – – ( 601,628 ) ( 883,820 ) ( 1,485,448 ) Balance at September 30, 2025 4,555,945 $ 4,555 $ 97,376,841 130,000 $ 13,000 $ ( 320,841 ) $ ( 72,874,199 ) $ 24,199,356 Balance June 30, 2024 1,170,510 $ 1,171 $ 89,842,503 130,000 $ 13,000 $ ( 683,050 ) $ ( 65,683,759 ) $ 23,489,865 Exercise of warrants 829,150 829 1,894,781 1,895,610 Net (loss) – – – – – 851,640 ( 1,197,803 ) ( 346,163 ) Balance September 30, 2024 1,999,660 $ 2,000 $ 91,737,284 130,000 $ 13,000 $ 168,590 $ ( 66,881,562 ) $ 25,039,312 Nine Months Period Balance December 31, 2024 2,580,098 $ 2,580 $ 93,354,907 130,000 $ 13,000 $ ( 829,959 ) $ ( 69,039,774 ) $ 23,500,754 Exercise of warrants 787,443 787 2,194,525 2,195,312 Common stock and pre-funded warrants issued in an underwritten public offering, net of issuance costs 1,188,404 1,188 1,827,409 – – – – 1,828,597 Net (loss) – – – – – 509,118 ( 3,834,425 ) ( 3,325,307 ) Balance at September 30, 2025 4,555,945 $ 4,555 $ 97,376,841 130,000 $ 13,000 $ ( 320,841 ) $ ( 72,874,199 ) $ 24,199,356 Balance December 31, 2023 14,012 $ 14 $ 84,415,900 10,000 $ 1,000 $ 696,105 $ ( 63,905,658 ) $ 21,207,361 Preferred Stock issued to related party – – – 120,000 12,000 – – 12,000 Common stock and pre-funded warrants issued in an underwritten public offering, net of issuance costs 13,214 13 8,522,398 – – – – 8,522,411 Exercise of warrants 1,972,434 1,973 1,938,637 – – – –

Financial Statements

Financial Statements 6 Sunshine Biopharma Inc. Notes to Unaudited Consolidated Financial Statements For the Nine Months Ended September 30, 2025 and 2024 Note 1 – Description of Business The Company was incorporated under the name Mountain West Business Solutions, Inc. on August 31, 2006, in the State of Colorado. Effective October 15, 2009, the Company acquired Sunshine Biopharma Inc. in a transaction classified as a reverse acquisition. Upon completion of the reverse acquisition, the Company changed its name to Sunshine Biopharma Inc. and began operating as a pharmaceutical company. Sunshine Biopharma has two wholly owned subsidiaries: (i) Nora Pharma Inc. ("Nora Pharma"), a Canadian corporation with a portfolio of pharmaceutical products consisting of 76 generic prescription drugs on the market in Canada, and (ii) Sunshine Biopharma Canada Inc. ("Sunshine Canada"), a Canadian corporation which develops and sells nonprescription over-the-counter ("OTC") supplements. The Company operates the two subsidiaries as a single business segment. Sales of the OTC supplements represent less than 3% of the Company's total sales. The Company is not subject to material customer concentration risks as it sells its products directly to pharmacies in several Canadian provinces. However, provincial governments in Canada reimburse patients for their prescription drug expenditures to various degrees under drug reimbursement programs, making generic drugs prices highly dependent on government policies which may change over time. The most recent negotiations between the pan-Canadian Pharmaceutical Alliance ("pCPA"), the entity that negotiates drug prices on behalf of the government, and the Canadian Generic Pharmaceutical Association ("CGPA") resulted in updated generic pricing for certain products which took effect on October 1, 2023. The updated prices are valid for three years and the agreement contains an option to extend for an additional two years. On February 10, 20

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