10-K: Nu-Med Plus, Inc. Reports Financial Results for Fiscal Year Ended December 31, 2024, Citing Going Concern Uncertainty

Nu-Med Plus, Inc. files its Form 10-K for the year ended December 31, 2024, reporting a net loss and highlighting substantial doubt about its ability to continue as a going concern without additional funding.

Summary

• Nu-Med Plus, Inc., a medical device company focused on nitric oxide delivery systems, filed its annual report on Form 10-K for the fiscal year ended December 31, 2024.
• The company is currently in the product development phase and has suspended further development until additional capital is secured.
• NU-MED is seeking a merger partner to fund the final development of its products.
• The company reported a net loss of $68,345 for the year ended December 31, 2024, compared to a net loss of $125,526 for the year ended December 31, 2023.
• Operating expenses decreased by $57,195 compared to the previous year, primarily due to reduced stock-based compensation, rent expense, and professional fees.
• As of December 31, 2024, the company had total assets of $9,373 and total liabilities of $224,469.
• The company's auditors have expressed substantial doubt about its ability to continue as a going concern.
• The company needs approximately $1,250,000 to continue operations for the next year but does not currently have the funds.
• Management is seeking financing through debt or equity and may have to suspend operations if funding is not secured.
• The company has two patents approved and one patent pending for its Nitric Oxide systems.
• The company has identified material weaknesses in internal controls due to the limited number of personnel and lack of separation of financial reporting duties.
• The company's common stock is quoted on the OTCQB under the symbol NUMD, but trading volume is low.

Sentiment

Score: 2

Explanation: The document presents a highly negative outlook due to the going concern warning, net losses, limited assets, and dependence on external funding. The company's future is uncertain, and there are significant risks associated with its operations.

Positives

• The company has two patents approved and one patent pending for its Nitric Oxide systems.
• Operating expenses decreased by $57,195 compared to the previous year, primarily due to reduced stock-based compensation, rent expense, and professional fees.

Negatives

• The company's auditors have expressed substantial doubt about its ability to continue as a going concern.
• The company reported a net loss of $68,345 for the year ended December 31, 2024.
• As of December 31, 2024, the company had total assets of $9,373 and total liabilities of $224,469.
• The company needs approximately $1,250,000 to continue operations for the next year but does not currently have the funds.
• The company has identified material weaknesses in internal controls due to the limited number of personnel and lack of separation of financial reporting duties.

Risks

• The company's ability to continue as a going concern is highly uncertain due to its financial condition.
• The company is dependent on raising additional capital, which may dilute current investors.
• The medical product business is highly competitive and subject to extensive regulations.
• The company's success depends on the ability of management to develop medical devices, despite limited experience.
• The company may be subject to product liability claims if its products cause harm.
• The company has material weaknesses in internal controls, which could affect the accuracy of financial reporting.

Future Outlook

The company's future is highly uncertain and dependent on securing additional funding or a merger partner to continue operations and product development. Management believes it may take some time before a commercial product is able to be marketed and will have to rely on outside funding to support operations through not only the development and testing phases, but the licensing phase and initial marketing cycles.

Management Comments

• Management believes the current delivery systems and supply of nitrogen oxide are costly and creates an opportunity to develop nitric oxide delivery devices that can utilize cheaper delivery devices for nitrogen oxide.
• Management will adjust any salaries and expenditures based on the need for successful continuous operations.

Industry Context

The medical device industry is highly competitive, with large, well-financed companies having a distinct advantage. NU-MED faces competition from companies like Mallinckrodt Inc., GeNO LLC, and Beyond Air, which have greater resources and experience. The company's success depends on focusing on niche products and securing regulatory approvals.

Comparison to Industry Standards

• Mallinckrodt Inc. acquired the company which had the only FDA approved nitric oxide (INOMAX) delivery system.
• GeNO LLC is focused on their GeNOsyl Nitrosyl system of nitric oxide generation and delivery.
• Beyond Air (formerly AIT Therapeutics) (AITB) is a company that has acquired technology that produces nitric oxide from air through electrical discharge.

Related Party Transactions

• During the years ended December 31, 2024 and 2023 the Chief Financial Officer provided to the Company $20,592 and $11,740, respectively, for the payment of operating expenses, bringing the total funds he has provided the company to $66,231.
• A director of the company also provided $478 for operating expenses during 2023.
• The total payable to officers and directors at December 31, 2024 is $66,710.
• Mr. Hayde and Mr. Merrell have received employment agreements.
• On November 7, 2023 the Company approved the issuance of 2,200,000 shares of restricted common stock to its officers in recognition of services performed, for which they had received no monetary renumeration.

Stakeholder Impact

• Shareholders face significant risk of dilution or loss of investment due to the company's need for additional capital.
• Employees face uncertainty regarding job security due to the company's financial instability.
• The company's ability to develop and commercialize its products is uncertain, affecting potential customers and the medical community.

Next Steps

• The company is seeking a merger partner to fund the final development of its products.
• The company is seeking financing through debt or equity to continue operations.
• Management will adjust any salaries and expenditures based on the need for successful continuous operations.

Key Dates

Keywords

nitric oxide, medical device, going concern, financial results, product development, FDA approval, capital raise, patents, internal controls, NUMD