Exchange: OTC | Sector: Healthcare | Industry: Medical Healthcare Information Services
Q2 2025
Published: Oct 30, 2024
Earnings Highlights
EPS of $0.00 decreased by 118.8% from previous year
Net income of -249.10K
"N/A" - N/A
Eco Science Solutions Inc (ESSI) QQ2 2025 Results: Cash Burn in an Early-Stage Cannabis Tech HealthTech Play with Limited Revenue Data
Executive Summary
Eco Science Solutions Inc (ESSI) reported a negative quarter in QQ2 2025 with no disclosed revenue for the period. Operating loss of $229,924 and a net loss of $249,095 were recorded, alongside negative earnings per share of $0.0047. The company generated negative cash flow from operations of $121,299 for the quarter, and although financing activities provided a modest inflow of $123,919, the company ended the period with a minimal cash balance of $4,745. Liabilities far exceed assets, and stockholders' equity is deeply negative, signaling a precarious liquidity position that relies on ongoing external funding. YoY and QoQ metrics show some deterioration in profitability on Year-over-Year basis (net income down 120.8%), but a mixed QoQ move (+15.45%) for net income; however, revenue data for QQ2 2025 is not disclosed in the provided materials, severely limiting top-line assessment.
Management commentary is not included in the provided transcript data, so the analysis relies on the 10-Q-style figures. The business remains in a development and niche stage, centering on Herbo enterprise software for cannabis and CBD hemp operators. The key questions for investors are: (1) can ESSI convert product/enterprise software interest into material revenue, (2) can it achieve sustainable cash generation or require dilution/debt fundraising to fund ongoing losses, and (3) what regulatory or market developments could affect demand in cannabis-related information services? Until revenue materializes and cash flow improves, ESSI faces meaningful liquidity and solvency risk. The outlook depends heavily on execution, partner wins, and any strategic capital actions.
Key Performance Indicators
Operating Income
-229.92K
QoQ: 16.71% | YoY:59.15%
Net Income
-249.10K
QoQ: 15.45% | YoY:-120.80%
EPS
0.00
QoQ: 16.07% | YoY:-118.80%
Revenue Trend
Margin Analysis
Key Insights
Revenue: Not disclosed for QQ2 2025
Operating loss: ($229,924)
Net income: ($249,095)
EBITDA: ($229,924)
Interest expense: $19,171
Financial Highlights
Financial performance highlights (QQ2 2025):
- Revenue: Not disclosed for QQ2 2025
- Operating loss: ($229,924)
- Net income: ($249,095)
- EBITDA: ($229,924)
- Interest expense: $19,171
- EPS: ($0.0047)
- Weighted average shares: 52,957,572
- R&D expenses: $82,087
- G&A expenses: $147,837
- Cash from operations: ($121,299)
- Net change in cash: ($162)
- Cash at end of period: $4,745
Balance sheet and liquidity:
- Total assets: $104,745
- Total liabilities: $16,109,037
- Short-term debt: $6,733,979
- Cash and equivalents: $4,745
- Intangible assets: $100,000
- Retained earnings: ($78,168,292)
- Total stockholders' equity: ($16,004,292)
- Net debt: $6,729,234
- Current ratio: 0.0003; Quick ratio: 0.0003; Cash ratio: 0.0003
- Revenue visibility: Not disclosed for QQ2 2025; last reported quarterly revenue figures are inconsistent in the provided data
- Valuation signals: Enterprise value multiple: −29.38; Price/book and related multiples negative due to negative equity
Notes on YoY/QoQ metrics (from earnings metrics):
- Operating income YoY: +59.15%; QoQ: +16.71% (still negative at ($229,924))
- Net income YoY: −120.80%; QoQ: +15.45%
- EPS YoY: −118.80%; QoQ: +16.07%
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-229.92K
59.15%
16.71%
Net Income
-249.10K
-120.80%
15.45%
EPS
0.00
-118.80%
16.07%
Key Financial Ratios
currentRatio
0
returnOnAssets
-238%
returnOnEquity
1.56%
debtEquityRatio
-0.42
operatingCashFlowPerShare
$-0
freeCashFlowPerShare
$-0
priceToBookRatio
-0
priceEarningsRatio
-0.03
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript availability: No earnings call transcript was provided in the materials. As a result, there are no management quotes or thematic quotes to cite in this section. The analysis therefore relies on the disclosed financial data (10-Q-like figures) rather than verbatim management commentary. If a transcript becomes available, the highlights could be organized by themes such as strategy, operational execution, and market conditions, with direct quotes and their relevance to the investment thesis identified.
N/A
— N/A
N/A
— N/A
Forward Guidance
Forward guidance is not provided in the supplied materials. Given the absence of reported revenue for QQ2 2025 and the material cash burn against a backdrop of substantial liabilities, ESSI would likely need to pursue one or a combination of the following to improve the outlook: (1) material top-line growth through commercialized revenue from its Herbo enterprise software and related cannabis/hemp market services, (2) strategic partnerships or customer contracts with clear revenue recognition timelines, (3) capital raises or debt facilities to extend liquidity runway, and (4) cost discipline or restructuring to reduce the burn rate. Investors should monitor any new filings, management commentary on customer wins, product rollouts, regulatory developments in cannabis-related sectors, and any announced financing actions that would materially affect liquidity or equity structure. Absent revenue growth and improved liquidity, the investment thesis remains highly risk-oriented with a focus on potential capital events and execution milestones.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
ESSI Focus
0.00%
0.00%
1.56%
-2.66%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the QQ2 2025 financials, ESSI presents a high-risk, high-uncertainty investment profile. The absence of reported QQ2 2025 revenue combined with a negative equity base and substantial short-term liabilities implies a fragile liquidity position unless offset by new financing or a rapid, substantiated revenue ramp. The company could potentially achieve upside through material revenue realization from Herbo software, vendor partnerships, or licensing agreements, but the path requires clear, near-term commercial milestones and/or capital actions. Investors should monitor: (1) any disclosed revenue recognition from enterprise software contracts, (2) upcoming financing rounds, debt facilities, or equity raises, (3) any management commentary on customer wins, product updates, or regulatory developments in cannabis markets, and (4) changes in working capital and operating cash flow trends. Until such catalysts materialize, the investment thesis should be considered highly speculative with a focus on liquidity risk and potential dilution.
Key Investment Factors
Growth Potential
Unrealized growth potential centers on ESSI's Herbo enterprise software targeting cannabis and CBD hemp operators. If ESSI can convert pilot engagements or early-stage deployments into multi-quarter contracts and expand internationally, revenue could scale from low to meaningful levels. Long-term upside hinges on product differentiation, customer retention, and favorable regulatory clarity that expands enterprise adoption in regulated cannabis markets.
Profitability Risk
Key risks include: (a) liquidity risk given only $4,745 cash at period end and a high current liability base ($16.11m) with short-term debt of $6.73m; (b) negative equity ($16.0m) and reliance on external financing; (c) absence of disclosed revenue for QQ2 2025 which silences top-line validation; (d) regulatory and market risk inherent to cannabis’ information services market; (e) potential dilution or equity/debt financing requirements to fund ongoing losses.
Financial Position
Weak near-term liquidity with negative stockholders' equity and substantial liabilities. Earnings are negative, EBITDA negative, and cash from operations negative for the quarter. The company holds intangible assets ($100k) but faces a fragile balance sheet with a cash burn that is not currently offset by disclosed revenue.
SWOT Analysis
Strengths
Niche focus on enterprise software for cannabis/hemp operators (Herbo suite) which could capture a specialized market if monetized.
Intellectual property/scale potential in healthcare information services tied to regulated cannabis markets.
Management continuity and demonstrated ID of product focus despite revenue constraints.
Weaknesses
No disclosed revenue for QQ2 2025; limited top-line visibility.
Severe liquidity constraints with minimal cash and high current liabilities.
Negative stockholders' equity; reliance on external financing to fund operations.
Opportunities
Growing cannabis/hemp market presents demand for enterprise software, compliance, and operational resources.
Potential partnerships or customer expansion could unlock recurring revenue and improve visibility.
Regulatory clarity in certain jurisdictions could accelerate adoption of information services platforms.
Threats
Regulatory risk and evolving cannabis legislation impacting addressable market.
High competition in healthcare information services and cannabis tech with potentially lower-margin entrants.
Capital market volatility that could hinder fundraising and exacerbate liquidity risk.