Scorpius Holdings Swings to $6.98M Deficit as Revenue Plunges 87% in Q3 2025

Scorpius Holdings posted revenue of $229,842 for the three months ended September 30, 2025, a 75% decline from $922,365 in the same quarter of 2024. For the nine months ended September 30, 2025, revenue totaled $669,640, down 87% from $5.20 million in the year-ago period. Read more earnings reports.

The company reported a net loss of $1.20 million for the third quarter of 2025, narrowing sharply from a $10.55 million loss in the third quarter of 2024. For the nine-month period, net loss totaled $16.81 million, down 31% from $24.49 million a year earlier.

Net loss attributable to Scorpius Holdings for the three months ended September 30, 2025 was $984,429, or $0.02 per share, compared to a loss of $10.11 million, or $1.43 per share, in the prior-year quarter. For the nine-month period, the company posted a loss of $15.78 million, or $0.41 per share, compared to $23.41 million, or $9.27 per share, in the first nine months of 2024.

Operating Performance

Operating loss for the third quarter of 2025 was $4.73 million, compared to an operating loss of $9.66 million in the same quarter of 2024. For the nine months ended September 30, 2025, operating loss reached $24.29 million, roughly flat with the $24.25 million operating loss in the year-ago period.

Cost of revenues for the three months ended September 30, 2025 totaled $145,370, down 83% from $852,016 in the third quarter of 2024. For the nine-month period, cost of revenues was $735,185, down 72% from $2.63 million a year earlier.

Research and development expense for the third quarter of 2025 was $2.47 million, down 43% from $4.30 million in the prior-year quarter. For the nine months, R&D expense totaled $8.42 million, down 29% from $11.79 million in the first nine months of 2024.

Selling, general and administrative expense was $2.35 million for the three months ended September 30, 2025, down 58% from $5.63 million in the third quarter of 2024. For the nine-month period, SG&A expense totaled $9.35 million, down 40% from $15.65 million a year earlier.

The company recorded a $5.73 million loss on lease assignment and termination during the nine months ended September 30, 2025. No such charge was recorded in the prior-year period.

Non-Operating Items

Non-operating income for the third quarter of 2025 totaled $3.53 million, compared to non-operating expense of $880,928 in the same quarter of 2024. The nine-month period saw non-operating income of $7.49 million, compared to non-operating expense of $237,508 a year earlier.

The company recorded a gain of $5.02 million from the change in fair value of convertible promissory notes with a related party for the three months ended September 30, 2025, compared to a loss of $120,000 in the prior-year quarter. For the nine months, this item contributed a gain of $7.79 million, compared to a loss of $224,250 in the first nine months of 2024.

Change in fair value of non-convertible promissory notes with a related party contributed a gain of $1.06 million for the third quarter of 2025, compared to a loss of $10,000 in the year-ago quarter. For the nine-month period, this item generated a gain of $1.30 million, compared to a loss of $20,000 a year earlier.

Scorpius recognized a $2.65 million loss on debt extinguishment for both the three- and nine-month periods ended September 30, 2025. In the prior year, the company recorded a $730,000 loss on debt extinguishment in the third quarter and a $560,000 loss for the nine-month period.

Interest expense for the third quarter of 2025 was $163,638, down 30% from $233,656 in the same quarter of 2024. For the nine months, interest expense totaled $575,163, down 21% from $723,582 in the year-ago period.

Balance Sheet and Cash Flow

Total stockholders' deficit was $6.98 million as of September 30, 2025, compared to stockholders' equity of $1.68 million at December 31, 2024. The swing from equity to deficit reflects the accumulated losses during the nine-month period and changes in the company's capital structure.

Cash and cash equivalents totaled $581,608 as of September 30, 2025, down 43% from $1.03 million at year-end 2024. Short-term investments declined to $19,178 from $135,143 over the same period.

Total current assets were $2.12 million as of September 30, 2025, down 35% from $3.26 million at December 31, 2024. Total assets decreased to $20.77 million from $39.18 million, a 47% decline driven primarily by reductions in property and equipment, operating lease right-of-use assets, and finance lease right-of-use assets.

Current liabilities totaled $22.20 million as of September 30, 2025, down 9% from $24.29 million at year-end 2024. Convertible promissory notes payable to a related party decreased to $8.86 million from $16.02 million, while the company recognized $2.41 million in non-convertible promissory notes payable to a related party as of September 30, 2025.

Cash used in operating activities for the nine months ended September 30, 2025 was $9.69 million, compared to $20.72 million used in the year-ago period. Cash provided by financing activities totaled $9.19 million for the nine months, compared to $22.27 million in the first nine months of 2024.

The company received proceeds of $550,000 from the settlement of a related party receivable during the nine months ended September 30, 2025. It also obtained proceeds of $7.84 million from the issuance of non-convertible promissory notes with a related party and $1.94 million from a private investment in public entity.

Outstanding shares increased to 61.14 million as of September 30, 2025, from 5.08 million at December 31, 2024. The increase reflects the partial conversion of secured convertible notes with a related party and the issuance of shares through private investment.

Quarterly Financials

Nine-Month Financials

Balance Sheet Summary