Stimcell's Losses Soar 297% Amid Rising R&D, Administrative Costs

TL;DR

**Stimcell is bleeding cash and relying on insider loans, making it a high-risk bet with no clear path to profitability.**

AI Summary

Stimcell Energetics Inc. (STME) reported a significant increase in net loss for the three months ended August 31, 2025, reaching **$265,602**, a substantial rise from **$66,919** in the prior-year period. This 296.9% increase in net loss was primarily driven by a surge in general and administrative expenses to **$139,484** from **$16,451**, and the re-commencement of research and development costs totaling **$57,309** for the eBalance microcurrent device redesign. The company's cash position deteriorated, falling to **$6,437** as of August 31, 2025, from **$14,581** at May 31, 2025. Total liabilities increased to **$1,410,336** from **$1,267,508**, with significant increases in notes and advances due to related parties, which rose to **$582,013** from **$469,874**. The company issued **375,000** shares valued at **$120,000** for investor relations services and borrowed an additional **$100,000** from Mr. Richard Jeffs during the quarter, with a subsequent **$50,000** loan in September 2025. The accumulated deficit now stands at **$11,127,158**, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

Stimcell's escalating losses and precarious cash position signal significant financial instability, directly impacting investor confidence and raising questions about its long-term viability. The heavy reliance on related-party debt, now totaling **$582,013**, suggests limited access to external financing, a critical concern for a biotech company in a competitive market. For employees, this financial strain could lead to job insecurity, while customers might face uncertainty regarding product development and support, especially with the eBalance device redesign project costing **$57,309** this quarter. The company's 'going concern' warning highlights its struggle to compete effectively in the biotech sector without a clear path to profitability.

Risk Assessment

Risk Level: high — The company's net loss surged by 296.9% to **$265,602** for the quarter, and its cash balance plummeted to **$6,437** from **$14,581**. Furthermore, the accumulated deficit of **$11,127,158** and the explicit 'going concern' warning in the filing provide specific evidence of severe financial distress and high operational risk.

Analyst Insight

Investors should exercise extreme caution and consider divesting, as Stimcell Energetics Inc. faces significant financial challenges, including a 'going concern' warning and increasing reliance on related-party debt. The substantial increase in net loss and dwindling cash reserves indicate a high-risk investment with an uncertain future.

Financial Highlights

total Assets

$16,387

total Debt

$1,410,336

net Income

-$265,602

cash Position

$6,437

Key Numbers

• $265,602 — Net Loss (Increased by 296.9% from $66,919 in the prior year quarter)
• $6,437 — Cash on Hand (Decreased from $14,581 at May 31, 2025)
• $1,410,336 — Total Liabilities (Increased from $1,267,508 at May 31, 2025)
• $582,013 — Notes and Advances Due to Related Parties (Increased from $469,874 at May 31, 2025)
• $11,127,158 — Accumulated Deficit (Increased from $10,861,556 at May 31, 2025)
• $139,484 — General and Administrative Expenses (Increased from $16,451 in the prior year quarter)
• $57,309 — Research and Development Costs (Incurred for eBalance microcurrent device redesign, up from $0 in prior year)
• 20,641,272 — Common Shares Outstanding (As of October 14, 2025)
• $120,000 — Value of Shares Issued for Services (375,000 shares issued for investor relations)
• $150,000 — Total Borrowed from Richard Jeffs (Including $100,000 during the quarter and $50,000 subsequently)

Key Players & Entities

• Stimcell Energetics Inc. (company) — registrant
• Cell MedX (Canada) Corp. (company) — subsidiary
• Richard Jeffs (person) — significant shareholder and lender
• David Jeffs (person) — CEO, President, Director, and lender
• Amir Vahabzadeh (person) — director, significant shareholder, and lender
• ADM Tronics Unlimited, Inc. (company) — partner for eBalance device redesign
• SEC (regulator) — Securities and Exchange Commission
• Nevada (regulator) — state of incorporation

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company's accumulated deficit has reached $11,127,158 as of August 31, 2025, and its cash position has dwindled to $6,437. This severe liquidity constraint, coupled with increasing liabilities and operating losses, raises substantial doubt about Stimcell Energetics Inc.'s ability to continue as a going concern.
• Increasing Related Party Debt [high — financial]: Notes and advances due to related parties have significantly increased to $582,013 from $469,874 in the prior quarter. This growing reliance on related party financing, alongside total liabilities of $1,410,336, presents a concentration of financial risk and potential conflicts of interest.
• Surge in Operating Expenses [high — operational]: Total operating expenses for the three months ended August 31, 2025, more than quadrupled to $252,354 from $59,636 in the prior year period. This was driven by a nearly nine-fold increase in general and administrative expenses to $139,484 and the re-commencement of R&D costs at $57,309.
• Dilution from Share Issuance for Services [medium — financial]: The company issued 375,000 shares valued at $120,000 for investor relations services. While intended to support the company, such issuances can dilute existing shareholders' ownership and impact per-share metrics.
• Product Development and Redesign Risks [medium — market]: The company has recommenced research and development costs of $57,309 for the eBalance microcurrent device redesign. This indicates ongoing product development efforts, which are inherently risky and may not result in a commercially viable or successful product.

Industry Context

Stimcell Energetics Inc. operates in the biotech and wellness sector, focusing on therapeutic and non-therapeutic products related to general health, anti-aging, and pain relief. The company's subsidiary, Cell MedX (Canada), is developing devices based on proprietary eBalance Technology using microcurrents. This market is competitive, with numerous companies vying for innovation in areas like diabetes management, neuropathy, and wellness devices.

Regulatory Implications

As a biotech company, Stimcell Energetics Inc. is subject to regulatory oversight from bodies like the FDA for its therapeutic devices. The company's financial instability and ongoing product development efforts could face scrutiny regarding efficacy, safety, and compliance with evolving regulations.

What Investors Should Do

1. Monitor cash burn and financing activities closely.
2. Evaluate the progress and commercial viability of the eBalance device redesign.
3. Assess the sustainability of increased operating expenses.
4. Consider the implications of related party transactions.

Key Dates

• 2025-08-31: End of Q2 2025 reporting period — Reported a net loss of $265,602, a significant increase from the prior year, with cash falling to $6,437 and liabilities rising to $1,410,336.
• 2025-05-31: End of Q1 2025 reporting period — Cash on hand was $14,581, total liabilities were $1,267,508, and accumulated deficit was $10,861,556.
• 2025-09-01: Subsequent to Q2 2025 — Received an additional $50,000 loan from Mr. Richard Jeffs, further increasing debt.
• 2025-02-01: Partnership with ADM Tronics Unlimited, Inc. announced — Initiated redesign of the eBalance microcurrent device, leading to recommenced R&D costs in the current period.
• 2024-11-01: Reverse Stock Split and Name Change — Completed a 1-for-15 reverse split and changed name from Cell MedX Corp. to Stimcell Energetics Inc. This impacts share counts and historical per-share data.

Glossary

Accumulated Deficit

The cumulative net losses of a company since its inception, minus any cumulative net income. It represents a deficit in retained earnings. (Stimcell Energetics Inc. has a substantial accumulated deficit of $11,127,158, indicating persistent unprofitability and raising concerns about its long-term viability.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future, typically at least 12 months. If substantial doubt exists, it must be disclosed. (The company's financial condition, including its low cash balance and high accumulated deficit, raises substantial doubt about its ability to continue as a going concern.)

Related Parties

Entities or individuals that have the ability to control or significantly influence the financial or operating decisions of another entity. Transactions between related parties require disclosure. (The significant increase in 'Notes and advances due to related parties' to $582,013 highlights the company's reliance on financing from individuals or entities closely connected to it.)

Reverse Split

A corporate action where a company reduces the total number of its outstanding shares by consolidating them. This typically increases the per-share price. (Stimcell Energetics Inc. underwent a 1-for-15 reverse split, which affects share counts and can be an indicator of a company's efforts to meet exchange listing requirements or improve its stock price perception.)

eBalance Technology

Proprietary technology developed by Stimcell Energetics Inc. (via its subsidiary Cell MedX Canada) that utilizes microcurrents for therapeutic and wellness applications. (The company is incurring R&D costs for the redesign of its eBalance microcurrent device, indicating ongoing development and investment in this core technology.)

Year-Over-Year Comparison

Compared to the prior year period, Stimcell Energetics Inc. has experienced a dramatic deterioration in its financial performance. Net loss has ballooned by 296.9% to $265,602, driven by a significant increase in general and administrative expenses and the reintroduction of R&D costs. The company's cash position has halved, while total liabilities have grown, with a notable rise in related party debt. The accumulated deficit continues to expand, underscoring the company's ongoing struggle for profitability and financial stability.

Key Financial Figures

• $200,000 — ich allows the Company to draw up to USD$200,000 at 10% per annum and is payable on dema
• $13,837 — $ 67,786 (including accrued interest of $13,837) was borrowed under unsecured notes pay
• $100,000 — hich allow the Company to draw up to CAD$100,000 and up to US$200,000 at 10 % per annum,
• $30,000 — secured, and are payable on demand. The $30,000 loan was payable on April 24, 2023, and
• $130,000 — . The remaining notes payable, totaling $130,000, are payable on demand. During the thre
• $0.75 — at August 31, 2025, are exercisable at $0.75 and expire on March 12, 2026. NOTE 6 -
• $62,500 — tely 22 to 34 weeks and to cost between $62,500 and $127,000 . During the three months
• $127,000 — 4 weeks and to cost between $62,500 and $127,000 . During the three months ended August
• $121,318 — 2025, the Company had spent a total of $121,318 since the project began. F-8 NOTE 7 -
• $150,000 — -Q, the Company had borrowed a total of $150,000 under the credit line (Note 3). F-9 I
• $0 — hares of common stock with par value of $0.001, of which 297,236,373 shares were o
• $59,636 — ating expenses increased by 323.2% from $59,636 the Company incurred during the three m
• $252,354 — three months ended August 31, 2024, to $252,354 incurred during the three months ended
• $123,033 — hs ending August 31, 2025, increased by $123,033, or 747.9%, from $16,451 during the thr
• $16,451 — increased by $123,033, or 747.9%, from $16,451 during the three months ending August 3

Filing Documents

• stme-20250831_10q.htm (10-Q) — 402KB
• stme_ex311.htm (EX-31.1) — 6KB
• stme_ex312.htm (EX-31.2) — 6KB
• stme_ex321.htm (EX-32.1) — 3KB
• stme_ex322.htm (EX-32.2) — 3KB
• 0001493712-25-000003.txt ( ) — 1926KB
• stme-20250831_cal.xml (EX-101.CAL) — 19KB
• stme-20250831_def.xml (EX-101.DEF) — 48KB
• stme-20250831_lab.xml (EX-101.LAB) — 108KB
• stme-20250831_pre.xml (EX-101.PRE) — 101KB
• stme-20250831.xsd (EX-101.SCH) — 23KB
• stme-20250831_10q_htm.xml (XML) — 206KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1

Financial Statements

Item 1. Financial Statements 1

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

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

Quantitative and Qualitative Disclosure about Market Risk

Item 3. Quantitative and Qualitative Disclosure about Market Risk 5

Controls and Procedures

Item 4. Controls and Procedures 5

- OTHER INFORMATION

PART II - OTHER INFORMATION 7

Legal Proceedings

Item 1. Legal Proceedings 7

Risk Factors

Item 1A. Risk Factors 7

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 12

Defaults upon Senior Securities

Item 3. Defaults upon Senior Securities 12

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 12

Other Information

Item 5. Other Information 12

Exhibits

Item 6. Exhibits 13

SIGNATURES

SIGNATURES 16 iii

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements The accompanying unaudited condensed consolidated financial statements of Stimcell Energetics Inc. as at August 31, 2025, have been prepared by the Company's management in conformity with accounting principles generally accepted in the United States of America and in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' deficit in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three months ended August 31, 2025, are not necessarily indicative of the results that can be expected for the year ending May 31, 2026. As used in this Quarterly Report, the terms "we," "us," "our," "Stimcell," "Stimcell Energetics," and the "Company" mean Stimcell Energetics Inc. and its subsidiary, Cell MedX (Canada) Corp., unless otherwise indicated. All dollar amounts in this Quarterly Report are expressed in U.S. dollars. 1 STIMCELL ENERGETICS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (EXPRESSED IN US DOLLARS) (UNAUDITED) August 31, 2025 May 31, 2025 ASSETS Current assets Cash $ 6,437 $ 14,581 Other current assets 9,950 6,641 Total assets $ 16,387 $ 21,222 LIABILITIES AND STOCKHOLDERS' DEFICIT Liabilities Accounts payable $ 296,001 $ 322,144 Accrued liabilities 38,694 26,954 Due to related parties 493,628 448,536 Notes and advances due to related parties 582,013 469,874 Total liabilities 1,410,336 1,267,508 STOCKHOLDERS' DEFICIT Common stock, $ 0.001 par value, 500,000,000 shares authorized; 20,516,272 and 20,141,272 shares issued and out

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion of the Company's financial condition and results of operations should be read in conjunction with the Company's unaudited condensed consolidated financial statements, the notes to those financial statements and other financial information appearing elsewhere in this document. In addition to historical information, the following discussion and other parts of this document contain forward-looking statements that reflect plans, estimates, intentions, expectations and beliefs. Actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those set forth in the "Risk Factors" in Part II, Item 1A of this Quarterly Report. The discussion provided in this Quarterly Report should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended May 31, 2025, filed with the United States Securities and Exchange Commission (the "SEC") on September 2, 2025. Overview The Company was incorporated under the laws of the State of Nevada on March 19, 2010. On April 26, 2016, the Company formed a wholly owned subsidiary, Cell MedX (Canada) Corp., ("Cell MedX Canada", or the "Subsidiary") under the laws of the Province of British Columbia. Effective November 1, 2024, the Company completed a 1-for-15 reverse split (the "Reverse Split") of its common stock. As a result of the Reverse Split, the Company's authorized capital was decreased from 7,500,000,000 shares of common stock with par value of $0.001, of which 297,236,373 shares were outstanding immediately prior to the Reverse Split, to 500,000,000 shares of common stock with par value of $0.001, of which 19,816,272 were outstanding. All share and per-share amounts in this Quarterly Report on Form 10-Q have been retrospectively adjusted. Concurrent with the Reverse

View Full Filing

View this 10-Q filing on SEC EDGAR