Mitesco's Q3 Loss Deepens Amid Soaring Expenses, Cash Dwindles

Ticker: MITI · Form: 10-Q · Filed: Nov 13, 2025 · CIK: 802257

Sentiment: bearish

Topics: Going Concern, Liquidity Crisis, Net Loss, Operating Expenses, Technology Development, Small Cap, Dilution Risk

TL;DR

**MITI is burning cash with minimal revenue and massive liabilities; avoid this stock unless you're betting on a miracle turnaround.**

AI Summary

Mitesco, Inc. (MITI) reported a net income of $159,981 for the nine months ended September 30, 2025, a significant decrease from $1,711,107 in the same period of 2024. Revenue for the nine months increased to $38,700 in 2025 from $29,500 in 2024, but quarterly revenue for Q3 2025 was only $3,000, down from $23,500 in Q3 2024. The company experienced a substantial net loss of $3,202,971 in Q3 2025, compared to a net income of $2,077,028 in Q3 2024. Operating expenses surged, with general and administrative expenses rising to $1,616,687 for the nine months ended September 30, 2025, from $712,293 in the prior year. Interest expense also dramatically increased to $1,137,355 for the nine months ended September 30, 2025, from $159,206 in 2024. The company's cash and cash equivalents plummeted to $321 as of September 30, 2025, from $3,402 at December 31, 2024, and it faces current liabilities of approximately $17.6 million, raising substantial doubt about its ability to continue as a going concern.

Why It Matters

Mitesco's precarious financial state, marked by a mere $321 in cash and $17.6 million in current liabilities, signals extreme risk for investors. The company's shift into data center services and AI development, while strategic, has yet to generate meaningful revenue, and its ability to secure additional funding is critical for survival. This situation could lead to significant dilution for existing shareholders if new capital is raised through equity, or even bankruptcy, impacting employees and any potential customers of its nascent technology ventures. The competitive landscape in cloud computing and AI is fierce, making Mitesco's path to profitability highly uncertain.

Risk Assessment

Risk Level: high — Mitesco's risk level is high due to its critically low cash balance of $321 as of September 30, 2025, coupled with current liabilities of approximately $17.6 million. The filing explicitly states "there is substantial doubt about the ability of the Company to continue as a going concern for one year from the date the consolidated financial statements are issued."

Analyst Insight

Investors should exercise extreme caution and consider divesting any holdings in MITI. The company's going concern warning, minimal cash, and substantial liabilities indicate a high probability of further dilution or financial distress. Wait for clear evidence of sustained revenue growth and improved financial stability before considering any investment.

Financial Highlights

revenue
$38,700
net Income
$159,981
eps
$0.01
cash Position
$321
revenue Growth
31.2%

Revenue Breakdown

SegmentRevenueGrowth
Total Revenue$38,70031.2%

Key Numbers

Key Players & Entities

FAQ

What is Mitesco's current cash position as of September 30, 2025?

Mitesco, Inc. reported cash and cash equivalents of only $321 as of September 30, 2025, a significant drop from $3,402 at December 31, 2024.

Did Mitesco, Inc. generate a profit or loss in the third quarter of 2025?

Mitesco, Inc. incurred a net loss of $3,202,971 for the three months ended September 30, 2025, a stark contrast to the net income of $2,077,028 reported in the same period of 2024.

What are the primary business units Mitesco, Inc. is focusing on?

Mitesco, Inc. has formed two wholly owned business units: Centcore, LLC, which provides data center services including cloud computing, and Vero Technology Ventures, LLC, which seeks investment and acquisition opportunities in cloud computing and data center related applications, including developing AI-based applications like "Robo Agent."

What are the key risks highlighted in Mitesco's 10-Q filing?

The primary risk highlighted is the "substantial doubt about the ability of the Company to continue as a going concern" due to its low cash balance of $321 and high current liabilities of approximately $17.6 million, along with significant past losses and the need to secure additional funding.

How have Mitesco's operating expenses changed in 2025?

For the nine months ended September 30, 2025, Mitesco's total operating expenses increased to $1,668,862 from $721,095 in the same period of 2024, driven largely by a rise in general and administrative expenses to $1,616,687.

What is the status of Mitesco's "Robo Agent" project?

The "Robo Agent" project, an AI-based application for the sales process, is expected to be available for initial users in Q4 of FY2025. Mitesco retained a highly qualified executive in August 2025 at $10,000 per month and recruited three additional contract programmers to accelerate its development.

What is Mitesco's revenue for the nine months ended September 30, 2025?

Mitesco, Inc. reported revenue of $38,700 for the nine months ended September 30, 2025, an increase from $29,500 in the corresponding period of 2024.

How much did Mitesco's interest expense increase in the first nine months of 2025?

Mitesco's interest expense dramatically increased to $1,137,355 for the nine months ended September 30, 2025, compared to $159,206 for the same period in 2024.

What is the significance of the "going concern" disclosure for Mitesco investors?

The "going concern" disclosure indicates that Mitesco's management has significant doubts about the company's ability to continue operating for the next year without securing additional funding or generating substantial revenue. For investors, this implies a high risk of bankruptcy, further share dilution, or a significant decline in stock value.

Has Mitesco, Inc. issued more common stock recently?

Yes, Mitesco, Inc. had 15,093,055 shares of common stock issued and outstanding as of September 30, 2025, an increase from 9,762,258 shares as of December 31, 2024, indicating significant share issuance, partly for Series A redemptions and Series X dividends.

Risk Factors

Industry Context

Mitesco, Inc. is operating in the data center services and cloud computing sector, with new ventures into Centcore and Vero Technology Ventures. This industry is characterized by rapid technological advancements, high capital expenditure requirements, and intense competition from established players and emerging startups. The company's strategy involves leveraging co-location agreements and evaluating smaller data center development to manage costs.

Regulatory Implications

As a publicly traded company, Mitesco is subject to SEC regulations and reporting requirements. The company's current financial distress and the 'going concern' doubt may attract increased scrutiny from regulators regarding its disclosures and financial stability. Compliance with accounting standards and timely filing of financial reports are critical.

What Investors Should Do

  1. Monitor cash burn rate and liquidity closely.
  2. Analyze the sustainability of the new business units (Centcore, VTV).
  3. Evaluate the impact of increased operating and interest expenses.
  4. Assess the risk of further share dilution.

Key Dates

Glossary

Accumulated Deficit
The cumulative net losses of a company that have not been offset by net income. (Indicates the company's history of unprofitability, with a deficit of $63,695,370 as of September 30, 2025.)
Going Concern
An assumption that a company will continue to operate for the foreseeable future. (The company's current financial state, with minimal cash and high liabilities, raises substantial doubt about its ability to continue as a going concern.)
Stock-based compensation
Compensation provided to employees in the form of stock or stock options. (Increased significantly to $824,649 for the nine months ended September 30, 2025, contributing to operating expenses.)
Dilutive Net income (loss) per common share
Earnings per share calculated after considering the effect of all potentially dilutive securities, such as stock options and convertible preferred stock. (For the nine months ended September 30, 2025, this was a loss of $0.20, indicating that even with potential dilution, the company's performance was negative.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Mitesco, Inc. has seen a significant deterioration in its financial performance. While revenue for the nine months ended September 30, 2025, increased by 31.2% to $38,700 from $29,500, net income plummeted from $1,711,107 to $159,981. Operating expenses, particularly general and administrative, and interest expenses have surged dramatically. The company's cash position has also drastically worsened, leading to substantial doubt about its going concern status, a risk not as pronounced in the prior year's filings.

Filing Stats: 4,633 words · 19 min read · ~15 pages · Grade level 17.2 · Accepted 2025-11-13 17:26:15

Key Financial Figures

Filing Documents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets as of September 30, 2025, and December 31, 2024 1 Consolidated Statements of Operations for the three and nine months ended September 30, 2025, and 2024 2 Consolidated Stockholder's Deficit for the three and nine months ended September 30, 2025, and 2024 3 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025, and 2024 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 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. 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 24 Item 4.

Controls and Procedures

Controls and Procedures. 24

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1. Legal Proceedings. 25 Item 1A. Risk Factors. 26 Item 2. Sale of Unregistered Securities. 26 Item 3. Defaults Upon Senior Secured Securities. 26 Item 4. Mine Safety Disclosures. 26 Item 5. Other Information. 26 Item 6. Exhibits. 27

Signatures

Signatures 28 i Table of Contents MITESCO, INC. CONSOLIDATED BALANCE SHEETS September 30 December 31, 2025 2024 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 321 $ 3,402 Accounts receivable 36,300 29,700 Prepaid expenses and other current assets 3,651 4,968 Total current assets 40,272 38,070 Intangible assets, net 125,420 151,771 Total Assets $ 165,692 $ 189,841 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities Accounts payable and accrued liabilities $ 4,301,610 $ 4,167,061 Accrued interest 384,605 374,376 Accrued interest - related parties - 22,547 Derivative liabilities 1,172,020 4,685,675 Royalty payable 150,000 150,000 Deferred revenue 10,000 - Lease liability - operating leases, current 99,477 99,477 Notes payable 641,666 548,137 Notes payable - related parties - 64,044 SBA loan payable 374,643 393,761 Other current liabilities 96,136 96,136 Preferred stock dividends payable - related parties - 14,439 Legal settlements 3,322,834 2,666,675 Series A preferred stock liability, current 7,030,279 5,160,815 Total current liabilities 17,583,270 18,443,143 Series A preferred stock liability, non-current 6,367,442 8,162,644 Total liabilities 23,950,712 26,605,787 Commitments and contingencies (Note 15) Stockholders' equity (deficit) Preferred stock, $0.01 par value, 100,000,000 shares authorized; 10,000,000 shares designated Series D; 10,000 shares designated as Series E; 140,000 shares designated as Series F; and 31,427 shares designated Series X: Preferred stock, Series D, $ 0.01 par value, no shares and 25,000 shares issued and outstanding as of September 30, 2025, and December 31, 2024 respectively - 250 Preferred stock, Series F, $ 0.01 par value, no shares issued and outstanding as of September 30, 2025, and December 31, 2024 respectively - - Preferred stock, Series X, $ 0.01 par value, 42,103 and 19

financial statements

financial statements . 1 Table of Contents MITESCO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Revenue $ 3,000 $ 23,500 $ 38,700 $ 29,500 OPERATING EXPENSES: Cost of operations 19,902 8,802 29,953 8,802 General and administrative 993,420 230,940 1,616,687 712,293 Software development 1,100 - 22,222 - Total operating expenses 1,014,422 239,742 1,668,862 721,095 Net loss from operations ( 1,011,422 ) ( 216,242 ) ( 1,630,162 ) ( 691,595 ) OTHER INCOME (EXPENSES): Interest expense ( 386,699 ) ( 50,979 ) ( 1,137,355 ) ( 159,206 ) Interest expense - related parties - ( 10,587 ) ( 2,297 ) ( 26,133 ) Gain on termination of operating lease - 636,485 869,690 Gain on settlement of notes payable - 693,768 693,768 Gain on settlement of accounts payable - 1,024,583 562,793 1,024,583 Loss on legal settlement ( 500,000 ) - ( 500,000 ) Loss on revaluation of Series A Preferred ( 387,638 ) - ( 646,653 ) - Gain on revaluation of derivative liabilities ( 917,212 ) - 3,513,655 - Total other income (expense) ( 2,191,549 ) 2,293,270 1,790,143 2,402,702 Net income (loss) ( 3,202,971 ) 2,077,028 159,981 1,711,107 Preferred stock dividends ( 17,981 ) ( 18,637 ) ( 42,609 ) ( 878,092 ) Preferred stock dividends - related parties - ( 4,888 ) ( 388 ) ( 140,888 ) Net income (loss) available to common shareholders $ ( 3,220,952 ) $ 2,053,503 116,984 692,127 Basic Net income (loss) per common share $ ( 0.27 ) $ 0.32 $ 0.01 $ 0.12 Dilutive Net income (loss) per common share $ ( 0.27 ) $ 0.29 $ ( 0.20 ) $ 0.11 Weighted average shares outstanding – Basic 12,097,157 6,348,878 11,066,795 5,916,675 Weighted average shares outstanding – Diluted 12,097,157 6,984,629 16,399,627 6,552,426 See accompanying notes to these unaudite

financial statements

financial statements. 2 Table of Contents MITESCO, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS ' EQUITY (DEFICIT) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024 (UNAUDITED) Preferred Stock Series D Preferred Stock Series F Preferred Stock Series X Common Stock Additional Paid-in Accumulated Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Total Balance, December 31, 2024 25,000 $ 250 - $ - 19,703 $ 197 9,762,258 $ 97,623 $ 37,341,335 $ ( 63,855,351 ) $ ( 26,415,946 ) Shares issued for Series A redemptions - - - - - - 1,366,394 13,664 794,539 - 808,203 Shares issued for Series X dividends - - - - - - 28,358 284 12,030 - 12,314 Stock-based compensation - - - - - - - - 6,250 - 6,250 Preferred stock dividends - - - - - - - - ( 12,702 ) - ( 12,702 ) Net income - - - - - - - - - 3,450,336 3,450,336 Balance, March 31, 2025 25,000 250 - - 19,703 197 11,157,010 111,571 38,141,452 ( 60,405,015 ) ( 22,151,545 ) Shares issued for Series A redemptions - - - - - - 402,450 4,025 116,269 - 120,294 Shares issued for Series X dividends - - - - - - 33,347 333 11,981 - 12,314 Shares issued for settlement of Series D, notes payable, and accrued liabilities ( 25,000 ) ( 250 ) - - - - 150,000 1,500 41,035 - 42,285 Stock-based compensation - - - - - - - - 6,250 - 6,250 Preferred stock dividends - - - - - - - - ( 12,314 ) - ( 12,314 ) Net loss - - - - - - - - - ( 87,384 ) ( 87,384 ) Balance, June 30, 2025 - - - - 19,703 197 11,742,807 117,429 38,304,673 ( 60,492,399 ) ( 22,070,100 ) Shares issued for Series A redemptions - - - - - - 2,025,910 20,259 655,643 - 675,902 Shares issued for Series X dividends - - - - - - 99,336 993 16,988 - 17,981 Stock-based compensation - - - - 22,400 224 1,225,000

financial statements

financial statements. 3 Table of Contents MITESCO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended September 30, 2025 September 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 159,981 $ 1,711,107 Adjustments to reconcile net income to net cash used in operating activities: Amortization of intangible assets 26,351 - Original issue discount charged to interest expense 10,000 - Stock-based compensation 824,649 388,250 Accretion of Series A preferred recorded as interest expense 907,007 - Loss on revaluation of Series A preferred 646,653 - Gain on lease terminations - ( 869,690 ) Gain on revaluation of derivative liabilities ( 3,513,655 ) ( 693,768 ) Gain on settlement of note payable - ( 1,024,583 ) Gain on settlement of accounts payable ( 562,793 ) - Changes in operating assets and liabilities: Accounts receivable ( 6,600 ) ( 29,500 ) Prepaid expenses 1,317 - Accounts payable and accrued liabilities 1,200,445 ( 304,504 ) Deferred revenue 10,000 - Accrued interest 10,229 391,273 Accrued interest - related parties ( 22,547 ) 31,640 Net cash used in operating activities ( 308,963 ) ( 399,775 ) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on SBA loan ( 19,118 ) ( 20,241 ) Proceeds from sale of Series A preferred stock 125,000 - Proceeds from notes payable 200,000 449,000 Net cash provided by financing activities 305,882 428,759 Net change in cash ( 3,081 ) 28,984 Cash at beginning of period 3,402 2,838 Cash at end of period $ 321 $ 31,822 Supplemental disclosure of cash flow information: Cash paid for interest $ 2,901 $ - Cash paid for taxes $ $ - Supplemental disclosure of financing cash flow information: Preferred stock dividends $ 42,997 $ 1,018,980 Shares issued for Series X dividends $ 42,609 $ 92,140 Shares issued for redemption of Series A shares $ 1,604,399 $ - Shares

financial statements

financial statements. 4 Table of Contents MITESCO, INC. UNAUDITED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 Note 1: Description of Business Company Overview Mitesco, Inc. (the "Company," "we," "us," or "our") was formed in the state of Delaware on January 18, 2012. On December 9, 2015, we restructured our operations and acquired Newco4pharmacy, LLC, a development stage company which sought to acquire compounding pharmacy businesses. As a part of the restructuring, we shut down our former business line. On April 24, 2020, we changed our name to Mitesco, Inc. In October 2023, the Company changed its domicile from Delaware to Nevada in order to effect reduced costs. We are a holding company seeking to provide products, services and technology. In June 2024 we announced the formation of two (2) new wholly owned business units, Centcore, LLC ("Centcore") that is providing data center services including cloud computing and application hosting, and Vero Technology Ventures, LLC ("VTV"), whose aim is to seek investment and acquisition opportunities, generally in the areas of cloud computing and data center related applications. Centcore has two (2) areas of focus. The first, generic data center services, is aimed at hosting applications for a specific user, sometimes referred to as "managed services offerings" or MSO, where the client moves the software licensed from various vendors, or internally developed, into our data center where we maintain the computing, communications and backup environment. We currently offer services through a "co-location" agreement with a data center based in Melbourne, Florida, which has relationships with eight (8) other data centers worldwide. Using this approach, we have an ability to rapidly expand the size of our computing resources quickly, at minimal expense. Over time we expect to create similar situations with other data centers worldwide based on our clients' specific nee

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