Company: CSDX
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001214659-25-016410
Chunk: 6

Company: CS DIAGNOSTICS CORP.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 of approximately 11%. This decline was primarily attributable
to reduced diagnostic service activity and lower one-time licensing income relative to the prior year. The Company anticipates that the
implementation of new service agreements and the expansion of its diagnostic offerings will stabilize and potentially increase revenues
during the remainder of 2025.

Operating Expenses.

Total operating expenses decreased significantly to $62,119 for the
nine-month period ended September 30, 2025, from $92,933 for the same period in 2024. The reduction was mainly due to lower professional
fees as several one-time legal, audit, and consulting engagements were completed in 2024. Research and development expenses were minimal
as the Company shifted resources from product development to commercialization. General and administrative expenses rose modestly to $22,424,
reflecting increases in compliance-related and reporting costs associated with the Company’s OTCQB listing status.

Net Income.

For the nine months ended September 30, 2025, the Company recorded
net income of $32,081, compared with $13,448 in the prior-year period. The improvement resulted primarily from the reduction in operating
expenses and the absence of any significant financing or debt-related costs.

  11  

Liquidity and Capital Resources

As of September 30, 2025, the Company had total assets of $499,431,013,
compared to $499,400,501 at December 31, 2024. The asset base consists primarily of intangible assets of approximately $499.4 million
and additional paid-in capital contributed by shareholders. Cash and cash equivalents totaled $13 as of September 30, 2025, compared to
$501 at year-end 2024.

The Company reported outstanding liabilities of $ 1,609 as of September
30, 2025, compared to $1,428 in accounts payable as of December 31, 2024, reflecting a temporary increase in the company liabilities position.

Cash flow activities for the nine-month period ended September 30,
2025, were as follows:

  Net cash used in operating activities: $(528)  

Management believes that the Company’s capital requirements will
continue to be met through shareholder support and, if necessary, through external financing arrangements. While liquidity remains limited,
management expects ongoing operational revenues and capital infusions to support continuing operations through 2026.

Capital Structure

As of September 30, 2025, the Company’s capital structure was
as follows:

Common Stock