10-Q: US Nuclear Corp. Q1 2026 Sales Decline, Net Loss Widens

US Nuclear Corp. reported a 26.1% decrease in sales for Q1 2026 compared to the prior year, alongside a widening net loss, driven by increased costs and reduced revenue.

Summary

• US Nuclear Corp. reported a net loss of $187,086 for the three months ended March 31, 2026, a significant improvement from the $560,232 net loss in the same period of 2025.
• Sales for the first quarter of 2026 decreased by 26.1% to $352,209, down from $476,705 in Q1 2025.
• Cost of goods sold increased by 54.3% to $197,214, leading to a gross profit of $154,995, a 55.6% decrease from $348,917 in the prior year.
• Selling, general, and administrative expenses were reduced by 65.5% to $300,898, primarily due to lower stock-based compensation.
• The company's total assets decreased to $1,638,950 as of March 31, 2026, from $1,921,883 at December 31, 2025.
• Total liabilities also decreased to $2,379,021 from $2,435,574 over the same period.
• Net cash used in operating activities was $126,563 for Q1 2026, compared to $92,486 for Q1 2025.
• The company anticipates needing approximately $5,000,000 in additional capital over the next twelve months.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to declining sales, increased cost of goods sold, and a significant net loss, despite some efforts to reduce operating expenses.

Positives

• Significant reduction in Selling, General, and Administrative (SG&A) expenses by 65.5% to $300,898, largely due to a decrease in stock-based compensation.
• Net loss for the quarter improved to $187,086 from $560,232 in the prior year's comparable period.
• Total liabilities decreased by $56,553 to $2,379,021 as of March 31, 2026.
• The company has plans to seek additional capital through loans and private placement offerings to mitigate going concern issues.

Negatives

• Sales decreased by 26.1% to $352,209 in Q1 2026 compared to $476,705 in Q1 2025.
• Cost of goods sold increased by 54.3% to $197,214, significantly impacting gross profit.
• Gross profit decreased by 55.6% to $154,995 from $348,917 in the prior year.
• The company recorded a net loss of $187,086 for the quarter.
• There is substantial doubt about the company's ability to continue as a going concern due to its net loss and accumulated deficit.
• Net cash used in operating activities increased to $126,563 from $92,486 in the prior year's comparable period.
• Total assets decreased by $282,934 to $1,638,950 as of March 31, 2026.

Risks

• The company's ability to continue as a going concern is dependent on its ability to generate profitable operations and/or obtain necessary financing.
• The company anticipates needing approximately $5,000,000 in additional capital over the next twelve months, and failure to raise this capital could impact its ability to meet expenses.
• The company operates in an intensely competitive market and relies on continued growth and orders from specific reactor types (CANDU, MSR, LFTR).
• The company's risk profile depends on increased foreign customers for business, with potential reliance on South Korea and China for future revenue growth.
• Unforeseen market forces such as lower natural gas prices, difficulty attracting qualified executive staff, general downturns in the sector, or competition could impact business plans.
• The company's gross margins are susceptible to shifts in revenue mix between lower-margin services and higher-margin products, as well as inflationary fluctuations in raw material costs.
• The company's disclosure controls and procedures were not effective as of March 31, 2026.

Future Outlook

The company anticipates needing approximately $5,000,000 in additional capital over the next twelve months to fund its business plans. Failure to raise this capital may prevent the company from meeting its expenses and executing its business plans. Growth projections are dependent on increased foreign customers and the development of new reactor technologies.

Management Comments

• Management believes that with a more diverse product line, the company will become more competitive.
• Management expects international revenues to increase over time as new order inquiries are fielded and new customers are engaged overseas.
• Management believes that South Korea and China will likely be larger contributors to revenue within the next few years.
• Management believes that the international side of the business may be a larger component as nuclear technology and rapid development for clean energy grows abroad.
• Management believes that the company relies on continued growth and orders from CANDU reactors and the rapid development of next-generation reactors like Molten Salt Reactors (MSR) and Liquid-Fluoride Thorium Reactors (LFTR).
• Management believes that if they do not raise the required capital, they may not meet their expenses and there can be no assurance that they will be able to do so.
• Management believes that they may find the cost of such financing to be burdensome on the Company.
• Management believes that they may not be able to execute on their business plans due to unforeseen market forces.

Industry Context

StockSavvy.ai notes that the company operates in the radiation detection and measuring equipment market, which is influenced by global trends in nuclear technology, clean energy development, and specific reactor types like CANDU, MSR, and LFTR. The competitive landscape is described as intense, with a reliance on international markets for future growth.

Comparison to Industry Standards

• No direct comparisons to specific industry benchmarks or competitors were provided in the filing.
• The filing mentions intense competition within the industry, but does not name specific competitors or provide comparative financial data.

Corporate Governance

Legal Proceedings

• There are no material pending legal proceedings to which the Company is a party, nor are any known to be threatened or contemplated.

Related Party Transactions

• The company leases its current facilities from Gold Team Inc., a company owned by the CEO, Robert Goldstein. Rent expense for Q1 2026 was $18,000.
• The CFO, Michael Hastings, loaned $5,231 to the company on demand, non-interest bearing, during Q1 2026.
• The CEO, Robert Goldstein, converted a $300,000 note payable into Series A Convertible Preferred stock on September 30, 2025.
• Gold Team Inc. converted a $350,000 note payable into Series A Convertible Preferred stock on September 30, 2025.
• A Multi-party Netting and Offset Agreement was entered into on August 31, 2026, settling various related party transactions including loans and obligations between entities like Cali From Above, Overhoff Technology, Averox, Optron Scientific, Electronic Control Concepts, and Robert Goldstein.

Stakeholder Impact

• Shareholders may be concerned about the declining sales, widening net loss, and the company's ability to continue as a going concern.
• The need for significant additional capital may lead to dilution for existing shareholders if equity is issued.
• Creditors and lenders may be concerned about the company's liquidity and ability to meet its obligations, as indicated by the going concern doubt and default notices on credit lines.
• Employees may be impacted by the company's financial performance and potential need for restructuring or capital raises.

Next Steps

• Management plans to seek additional capital through loans and private placement offerings.
• The company will continue to field new order inquiries and engage new customers overseas.
• The company will focus on diversifying its product line to become more competitive.
• The company will continue to monitor significant estimates made during the preparation of its financial statements.
• The company will continue to explore project management tools and centralized platforms to integrate data and improve visibility into resource utilization.

Key Dates

Recommendation

The filing indicates a worsening financial situation with declining sales, increased costs, a significant net loss, and substantial doubt about the company's ability to continue as a going concern. The need for substantial additional capital and the ineffectiveness of disclosure controls further heighten the risk for investors. While operating expenses were reduced, this was insufficient to offset the revenue decline and cost increases.

Keywords

radiation detection, tritium monitors, manufacturing, sales, net loss, operating expenses, financial condition, going concern