Company: CSDX
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001214659-25-014817
Chunk: 6

Company: CS DIAGNOSTICS CORP.
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 6
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 2025, from $85,505 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 $22,354,
reflecting increases in compliance-related and reporting costs associated with the Company’s OTCQB listing status.

Net Income.

For the six months ended June 30, 2025, the Company recorded net income
of $32,263, compared with $12,912 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.

Liquidity and Capital Resources

As of June 30, 2025, the Company had total assets of $499,431,377,
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 $196 as of June 30, 2025, compared to $501
at year-end 2024.

The Company reported no outstanding liabilities as of June 30, 2025,
compared to $1,428 in accounts payable as of December 31, 2024, reflecting an improved current balance sheet position.

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

  Net cash used in operating activities: $(345)  

  Net cash used in investing activities: $(499,444,401) primarily related to intangible asset acquisitions  

  Net cash provided by financing activities: $499,444,401 reflecting equity infusions and issuance of preferred shares  

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.

  11  

Capital Structure

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

Common Stock: 137,340,200 shares issued and outstanding

Preferred Stock Series A: 10 shares issued and outstanding

Preferred Stock Series B: 19,992,575 shares issued and outstanding

Preferred Stock Series C: