Zeo ScientifiX Losses Double Amid Soaring Expenses, Despite Revenue Growth

TL;DR

**ZEOX is burning cash and its losses are accelerating, making it a risky bet despite revenue growth.**

AI Summary

Zeo ScientifiX, Inc. (ZEOX) reported a significant increase in net loss for the three months ended July 31, 2025, reaching $2,072,000, up from $1,012,000 in the prior year, representing a 104.7% increase. For the nine months ended July 31, 2025, the net loss widened to $4,706,000 from $3,451,000 in 2024, a 36.4% increase. Despite this, revenues saw growth, increasing to $1,306,000 for the three-month period from $1,091,000 in 2024 (19.7% increase), and to $3,545,000 for the nine-month period from $3,376,000 (5.0% increase). The company's gross profit also rose to $1,078,000 for the quarter and $2,870,000 for the nine months. However, general and administrative expenses surged to $3,149,000 for the quarter, up from $2,083,000, and to $7,588,000 for the nine months, up from $6,651,000, primarily driving the increased losses. Cash decreased significantly from $657,000 at October 31, 2024, to $314,000 at July 31, 2025, with net cash used in operating activities at $335,000 for the nine months. The company also acquired BioLumina assets, involving a $58,000 stock issuance and a $100,000 royalty payable.

Why It Matters

Zeo ScientifiX's widening net losses, despite revenue growth, signal a critical challenge in expense management that could erode investor confidence. The substantial increase in general and administrative expenses, up 51.2% quarter-over-quarter, raises questions about operational efficiency and scalability, potentially impacting future profitability and competitive positioning in the biopharmaceutical sector. For employees, continued losses could lead to job insecurity or reduced investment in R&D. Customers might face uncertainty regarding product development and availability if the company's financial health deteriorates. The broader market will watch if ZEOX can control costs and translate its revenue growth into sustainable profits, especially given its focus on innovative biological therapeutics.

Risk Assessment

Risk Level: high — The company's net loss more than doubled to $2,072,000 for the three months ended July 31, 2025, from $1,012,000 in the prior year, and cash decreased by $343,000 over the nine-month period to $314,000. This significant cash burn and increasing losses, coupled with a total stockholders' deficit of $2,314,000, indicate substantial financial instability.

Analyst Insight

Investors should exercise extreme caution and consider avoiding ZEOX given the accelerating net losses and significant cash burn. The company's inability to control general and administrative expenses, which surged by $1,066,000 quarter-over-quarter, suggests fundamental operational challenges that outweigh its modest revenue growth.

Financial Highlights

debt To Equity

N/A

revenue

$3,545,000

operating Margin

-133.1%

total Assets

$1,652,000

total Debt

$3,966,000

net Income

-$4,706,000

eps

N/A

gross Margin

80.9%

cash Position

$314,000

revenue Growth

+5.0%

Revenue Breakdown

Key Numbers

• $2,072,000 — Net Loss (3 months) (Increased 104.7% from $1,012,000 in Q3 2024)
• $4,706,000 — Net Loss (9 months) (Increased 36.4% from $3,451,000 in 9M 2024)
• $1,306,000 — Revenue (3 months) (Increased 19.7% from $1,091,000 in Q3 2024)
• $3,545,000 — Revenue (9 months) (Increased 5.0% from $3,376,000 in 9M 2024)
• $3,149,000 — General and Administrative Expenses (3 months) (Increased 51.2% from $2,083,000 in Q3 2024)
• $7,588,000 — General and Administrative Expenses (9 months) (Increased 14.1% from $6,651,000 in 9M 2024)
• $314,000 — Cash at End of Period (Decreased from $657,000 at October 31, 2024)
• $2,314,000 — Total Stockholders' Deficit (Worsened from $1,653,000 at October 31, 2024)
• 6,501,094 — Common Shares Outstanding (As of July 31, 2025)
• $58,000 — Stock Issued for BioLumina Assets (Non-cash transaction for acquisition)

Key Players & Entities

• Zeo ScientifiX, Inc. (company) — Registrant
• Zofin (product) — Proprietary product
• Patient Pure X (product) — Proprietary product
• General Surgical of Florida, Inc. (company) — Wholly owned subsidiary
• Exotropin LLC (company) — Affiliate launching collaborative product
• BioLumina (company) — Acquired assets
• SEC (regulator) — Securities and Exchange Commission
• $2,072,000 (dollar_amount) — Net loss for three months ended July 31, 2025
• $4,706,000 (dollar_amount) — Net loss for nine months ended July 31, 2025
• $314,000 (dollar_amount) — Cash at July 31, 2025

FAQ

Risk Factors

• Worsening Net Loss and Cash Burn [high — financial]: The company's net loss significantly increased by 104.7% to $2,072,000 for the three months ended July 31, 2025, and by 36.4% to $4,706,000 for the nine months. This is coupled with a substantial decrease in cash from $657,000 to $314,000, indicating a high cash burn rate and potential liquidity concerns.
• Surging General and Administrative Expenses [high — operational]: General and administrative expenses saw a dramatic rise of 51.2% to $3,149,000 for the quarter and a 14.1% increase to $7,588,000 for the nine months. This surge is the primary driver of the widening net loss, suggesting potential inefficiencies or significant investments in non-revenue generating activities.
• Deteriorating Stockholders' Deficit [medium — financial]: The total stockholders' deficit has worsened from $1,653,000 at October 31, 2024, to $2,314,000 at July 31, 2025. This indicates that the company's liabilities now exceed its assets by a larger margin, reflecting its ongoing losses.
• Acquisition Integration and Costs [medium — operational]: The acquisition of BioLumina assets, while potentially strategic, involved a $58,000 stock issuance and a $100,000 royalty payable. The impact of this acquisition on future operations and profitability, especially in light of current losses, needs careful monitoring.
• Increased Debt and Lease Obligations [medium — financial]: Total liabilities have increased from $3,296,000 to $3,966,000, driven by a significant rise in accounts payable and accrued expenses ($2,422,000 from $1,719,000) and an increase in finance lease obligations. This growing debt burden adds to the company's financial strain.

Industry Context

Zeo ScientifiX operates in the scientific and technology sector, likely involving research, development, and commercialization of scientific products or services. This industry is characterized by high R&D costs, long development cycles, and significant competition. Success often hinges on innovation, intellectual property protection, and the ability to scale operations efficiently. The current environment may see increased demand for specialized scientific solutions, but also heightened scrutiny on profitability and sustainable business models.

Regulatory Implications

As a public company, Zeo ScientifiX is subject to SEC regulations and accounting standards (GAAP). The significant increase in net loss and the worsening financial position could attract increased regulatory attention regarding financial reporting accuracy and going concern disclosures. Compliance with industry-specific regulations related to its scientific products or services is also crucial.

What Investors Should Do

1. Monitor G&A Expense Control
2. Assess Cash Runway
3. Evaluate Revenue Growth Sustainability
4. Analyze Acquisition Impact

Key Dates

• 2025-07-31: End of Third Quarter and Nine-Month Period — Reporting period for the significant increase in net loss and surge in G&A expenses, alongside revenue growth.
• 2025-07-31: Cash Balance as of Period End — Cash decreased to $314,000, down from $657,000 at the start of the fiscal year, highlighting cash burn.
• 2025-07-31: Total Stockholders' Deficit — Worsened to ($2,314,000), indicating a deteriorating equity position.
• 2024-10-31: Start of Fiscal Year / Previous Balance Sheet Date — Provides the comparative baseline for cash position and stockholders' deficit.

Glossary

Stockholders' Deficit

A negative stockholders' equity position where total liabilities exceed total assets. (Indicates the company has more liabilities than assets, worsening from the prior period ($2,314,000 vs $1,653,000).)

Accumulated Deficit

The cumulative net losses of a company since its inception that have not been offset by net income. (Shows the extent of historical losses, which increased significantly to ($66,919,000) for the nine months ended July 31, 2025.)

Cost of Revenues

The direct costs attributable to the production or purchase of the goods or services sold by a company. (Increased to $675,000 for the nine months, impacting gross profit margins.)

Convertible Promissory Note

A debt instrument that can be converted into equity under certain conditions. (The company has a $698,000 note outstanding, net of discount, contributing to its liabilities.)

Deferred Revenue

Revenue that has been received by the company but not yet earned. (Decreased to $709,000 from $884,000, suggesting a potential slowdown in future revenue recognition.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Zeo ScientifiX has experienced a significant deterioration in profitability, with net losses more than doubling for the three-month period and increasing by 36.4% for the nine-month period. While revenue has shown growth (19.7% for the quarter, 5.0% for nine months), it has been outpaced by a dramatic rise in general and administrative expenses, which surged by 51.2% for the quarter. This has led to a widening operating loss and a worsening stockholders' deficit. The company's cash position has also significantly declined, raising concerns about liquidity.

Key Financial Figures

• $0.001 — Section 12(g) of the Act: Common Stock, $0.001 par value Indicate by check mark wheth

Filing Documents

• zeoscientifix_10q.htm (10-Q) — 770KB
• zeoscientifix_ex31-1.htm (EX-31.1) — 12KB
• zeoscientifix_ex32-1.htm (EX-32.1) — 5KB
• 0001829126-25-007398.txt ( ) — 4686KB
• zeox-20250731.xsd (EX-101.SCH) — 51KB
• zeox-20250731_cal.xml (EX-101.CAL) — 54KB
• zeox-20250731_def.xml (EX-101.DEF) — 210KB
• zeox-20250731_lab.xml (EX-101.LAB) — 294KB
• zeox-20250731_pre.xml (EX-101.PRE) — 291KB
• zeoscientifix_10q_htm.xml (XML) — 612KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations. 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 29 Item 4.

Controls and Procedures

Controls and Procedures. 29 PART II OTHER INFORMATION Item 1. Legal Proceedings. 30 Item 1A. Risk Factors. 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 30 Item 3. Defaults Upon Senior Securities. 30 Item 4. Mine Safety Disclosures. 30 Item 5. Other Information. 30 Item 6. Exhibits. 30

Signatures

Signatures 31 i Unless stated otherwise, the words "we," "us," "our," the "Company" or "ZEO" in this Quarterly Report on Form 10-Q (this "Report") refer to Zeo ScientifiX, Inc., a Nevada corporation, and its subsidiaries. Cautionary Note Regarding Forward- Looking Statements The statements contained in this Report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. Statements using words such as "may," "could," "should," "expect," "plan," "project," "strategy," "forecast," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "continue," or similar expressions help identify forward-looking statements. The forward-looking statements contained in this Report are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management's assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this Report are not guarantees of future performance, and management cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will in fact occur. The Company's actual results may differ materially from those anticipated, estimated, projected or expected by management. All forward-looking statements speak only as of the date of this Report. We do not intend to pub

– FINANCIAL INFORMATION

Part I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Zeo ScientifiX, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts rounded to the nearest thousand except share amounts) July 31, 2025 October 31, 2024 (Unaudited) ASSETS Current Assets Cash $ 314,000 $ 657,000 Accounts receivable, net of allowance for bad debts - 194,000 Other receivables 1,000 3,000 Prepaid expenses 490,000 79,000 Inventories 258,000 232,000 Total Current Assets 1,063,000 1,165,000 Property and equipment, net 589,000 478,000 TOTAL ASSETS $ 1,652,000 $ 1,643,000 LIABILITIES, SHARES SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS' DEFICIT Current Liabilities Accounts payable and accrued expenses $ 2,422,000 $ 1,719,000 Finance lease obligations 28,000 5,000 Convertible promissory note, net of debt discount of $ 27,000 and $ 45,000 698,000 680,000 Obligation to repurchase shares 18,000 - Deferred revenue 709,000 884,000 Total Current Liabilities 3,875,000 3,288,000 Long term finance lease obligations 91,000 8,000 Total Liabilities 3,966,000 3,296,000 Commitments and contingencies Shares Subject To Possible Redemption Series C Preferred Stock, $ 0.001 par value, 100 shares authorized; 100 and 100 shares issued and outstanding, respectively - - Stockholders' Deficit Common stock, $ 0.001 par value, 2,500,000,000 shares authorized; 6,501,094 and 6,344,817 shares issued and outstanding, respectively 6,000 6,000 Additional paid-in capital 64,599,000 60,554,000 Accumulated deficit ( 66,919,000 ) ( 62,213,000 ) Total Stockholders' Deficit ( 2,314,000 ) ( 1,653,000 ) TOTAL LIABILITIES, SHARES SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS' DEFICIT $ 1,652,000 $ 1,643,000 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 Zeo ScientifiX, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts rounde

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