Company: OPGN
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001829126-25-008771
Chunk: 88

Company: OPGEN INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 2
Chunk 88
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converted into 7,200,000 shares of the Company’s common stock in August 2024.

23

Following the sale of control to AEI Capital Ltd., the Company further scaled down legacy operations while repositioning itself to operate in the financial
services and technology industry. In furtherance of such shift, the Company formed a wholly-owned subsidiary, CapForce International Holdings
Ltd. (“CapForce”), which launched a new business line offering listing sponsorship and consultancy services to international
companies seeking to list their securities on securities exchanges. Additionally, CapForce contemplates entering the financial technology
industry supporting digital investment banking activities and capital table management.

On
May 20, 2024, the Company effected a 1-for-10 reverse stock split of its issued and outstanding shares of common stock. All share
amounts and per share prices in this quarterly report have been adjusted to reflect the reverse stock split.

Subsequent
to the Company’s assignment of its office lease in April 2024, the Company has operated virtually. The Company operates in
one business segment.

Financial
Overview 

Revenue

Prior
to the repositioning of our business, we generated revenues from sales of our products, including sales of our products through our distribution
partners, such as our Unyvero instruments and consumables. We also generated revenue from sales by Ares Genetics of its AI-powered prediction
models and solutions. Revenues generated from our laboratory services related to services that we and our subsidiaries provided to customers.
Lastly, our collaboration revenues consisted of revenue received from research and development collaborations that we entered into with
third parties, such as our collaboration agreement with the Foundation for Innovative New Diagnostics.

Following
the acquisition of a controlling interest in the Company by AEI Capital Ltd. and the formation of CapForce as OpGen’s wholly-owned
subsidiary, we generate revenues from CapForce’s listing sponsorship and consulting services, and we anticipate generating revenues
from CapForce’s other business ventures including cross-border securities trading, advanced computational model-enabled investment
banking advisory and asset management services, and FinTech-enabled capital table management solutions via CapForce’s next generation
global digital investment banking platform.

Cost
of Products, Cost of Services, and Operating Expenses

Prior
to the repositioning of our business, our cost of products consisted of product and inventory costs, including materials costs and overhead,
and other costs related to the recognition of revenue. Cost of services related to the material and labor costs associated with providing
our services.