10-Q: Remsleep Holdings Reports Q1 2025 Results: Focus Shifts to DeltaWave Product Launch Amidst Ongoing Going Concern Uncertainty

Remsleep Holdings reports a net loss of $85,488 for Q1 2025, shifting focus to the launch of their DeltaWave product while navigating going concern challenges.

Summary

• Remsleep Holdings, Inc. reported its financial results for the quarter ended March 31, 2025.
• The company is transitioning its business model to focus on the DeltaWave product, a new sleep apnea interface.
• For Q1 2025, Remsleep did not recognize any revenue, compared to $57,881 in revenue from CPAP machine sales in Q1 2024.
• The net loss for Q1 2025 was $85,488, a decrease from the $252,580 net loss in Q1 2024.
• Operating expenses decreased, primarily due to lower investor relations and consulting expenses.
• The company's independent auditor has expressed substantial doubt about its ability to continue as a going concern.
• Management plans to address the going concern issue by obtaining funding from new investors and generating sales.
• The company received FDA 510k approval for its DeltaWave product on July 2, 2024, and expects to have inventory ready for market in Q2 2025.
• As of May 15, 2025, there were 1,535,389,060 shares of common stock outstanding.

Sentiment

Score: 4

Explanation: The sentiment is neutral to slightly negative. While the company reduced its net loss, the lack of revenue and going concern warning raise significant concerns. The potential of the DeltaWave product offers some hope, but its success is uncertain.

Positives

• The net loss decreased significantly from $252,580 in Q1 2024 to $85,488 in Q1 2025.
• Operating expenses were reduced due to lower investor relations and consulting costs.
• The company received FDA 510k approval for its DeltaWave product.
• The company expects to have product inventory ready for the market in the second quarter of 2025.

Negatives

• The company did not recognize any revenue in Q1 2025.
• The company's independent auditor has expressed substantial doubt about its ability to continue as a going concern.
• The company has an accumulated deficit of $15,356,244 as of March 31, 2025.
• The company has suffered recurring losses from operations since its inception.

Risks

• The company's ability to continue as a going concern is uncertain due to recurring losses and the need for additional financing.
• The company's future success depends on generating capital financing.
• Failure to generate sufficient revenues or raise additional capital may have a material and adverse effect on the company and its shareholders.
• The company faces intense competition in the sleep industry.
• The company needs to successfully commercialize its technology and develop a sales and marketing infrastructure.

Future Outlook

The company expects to have product inventory ready for the market in the second quarter of 2025 and will continue to finance its operations through debt and/or equity financing as needed.

Management Comments

• Our officers have 35 years of sleep-industry experience, including having been employed at sleep industry companies.
• Our officers invented our DeltaWave CPAP interface (the DeltaWave) as an innovative new device to treat patients with sleep apnea.
• We believe that our DeltaWave is designed to effectively address the stubborn issues that continue to affect a patients ability to comply with treatment.
• Our goal is to continue to develop sleep products for the treatment of OSA and capture 10% of the market in the next 24 months.

Industry Context

The company is targeting the sleep apnea market with its DeltaWave product, aiming to address issues of comfort and compliance that affect CPAP users. The company believes that mask-interface comfort was their primary concern.

Comparison to Industry Standards

• It's difficult to compare Remsleep's Q1 2025 performance to industry standards due to the lack of revenue during the transition to the DeltaWave product.
• Comparable companies in the sleep apnea device market include ResMed and Philips Respironics, which have significantly larger revenue bases and established market positions.
• ResMed, for example, reported revenue of $1.1 billion in its most recent quarter, demonstrating the scale of established players in the industry.
• Remsleep's success will depend on its ability to effectively market and distribute the DeltaWave product and capture market share from these larger competitors.

Related Party Transactions

• The Company executed a new employment agreement with Mr. Wood on January 1, 2025, compensating him $9,000 per month.
• The Company made cash payments to Jonathan Lane, Chief Technology Officer, of $7,000 during the three months ended March 31, 2025.
• The Company paid $12,500 to the brother of the CEO for services related to development of the Company's product during the three months ended March 31, 2025.

Stakeholder Impact

• Shareholders face uncertainty due to the company's going concern status and lack of revenue.
• Employees' job security is potentially at risk due to the company's financial challenges.
• Customers may benefit from the launch of the DeltaWave product if it proves to be effective and comfortable.
• Creditors face increased risk due to the company's financial instability.

Next Steps

• The company plans to launch the DeltaWave product in Q2 2025.
• The company plans to obtain funding from new investors.
• The company plans to implement a plan to generate sales.

Key Dates

Keywords

Remsleep Holdings, DeltaWave, Sleep Apnea, Convertible Note, Going Concern, Financial Results, Q1 2025, FDA Approval