10-Q · May 12, 2026
Impact BioMedical reported limited but notable revenue of $7,000 for Q1 2026, driven by biotech retail sales, marking a significant turnover from the previous year when no revenue was recorded. However, operating loss…
Earnings analysis · 10-Q
IBO earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Impact BioMedical’s Q2 2026 results showed a substantial reduction in net loss and a modest improvement in operating cash flow, but operating performance remains weak: revenue fell 57% year over year to $3,000 and the…
Read full summary
Impact BioMedical’s Q2 2026 results showed a substantial reduction in net loss and a modest improvement in operating cash flow, but operating performance remains weak: revenue fell 57% year over year to $3,000 and the operating loss was $702,000. Cash was only $10,000 against $2,045,000 of current liabilities, while due-to-related-party balances increased to $1,330,000. Management continues to cite substantial doubt about the company’s ability to continue as a going concern and expects to rely on intellectual-property monetization, cost controls, and potential capital or debt financing.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.01
- Segment
- Biotech retail sales: $3,000 in Q2 2026, down 57% from $7,000 in Q2 2025; $10,000 for the six months ended June 30, 2026, up 43% from $7,000.
What stood out
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Operating Loss Narrowed
Q2 revenue was $3,000, while total costs and expenses declined 39% year over year to $705,000 from $1,160,000. The operating loss narrowed to $702,000 from $1,153,000.
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Sharp Net Loss Improvement
Net loss improved to $700,000 from $14,352,000 in Q2 2025, primarily because the prior-year period included a $12,942,000 fair-value adjustment on the related-party note payable.
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Operating Cash Flow Turned Positive
Six-month operating cash flow was positive at $6,000 versus cash used of $1,376,000 in the prior-year period. Investing cash flow was $1,000 in both periods.
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Lower Professional and Other Costs
Professional fees fell 78% year over year to $92,000 in Q2, while other operating expenses fell 44% to $67,000, reflecting management’s cost-control efforts.
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Cash Increased, Receivables Cleared
Cash increased to $10,000 from $3,000 at December 31, 2025, and accounts receivable declined to $0 from $5,000.
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Legacy Related-Party Note Settled
The related-party note payable was settled in October 2025, eliminating the prior-year Q2 interest expense of $260,000 and the $12,942,000 fair-value adjustment recorded in Q2 2025.
What to watch
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Going-Concern Uncertainty
Management states that operating losses and negative operating cash flows over the past two years raise substantial doubt about continuing as a going concern within one year. Cash was only $10,000 at June 30, 2026, while current liabilities were $2,045,000.
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Minimal and Declining Revenue
Revenue remains minimal and declined 57% year over year to $3,000 in Q2 2026 from $7,000. The company states it has not generated significant operating revenue and cannot guarantee successful operations.
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Growing Related-Party Funding Dependence
Amounts due to the related party increased to $1,330,000 from $621,000 at December 31, 2025, a $709,000 increase. These non-interest-bearing balances are due upon demand and reflect funding advances and shared expenses from DSS.
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Elevated Equity Compensation
Stock-based compensation was $1,440,000 for the six months ended June 30, 2026, versus $3,000 in the prior-year period, following the issuance of 3,200,000 common shares in January 2026.
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Concentrated Intangible Asset Base
Intangible assets totaled $16,425,000, or approximately 98% of total assets of $16,745,000. Management notes that failure to generate forecasted revenue from new products could result in a future non-cash impairment.
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Unremediated Control Weaknesses
Disclosure controls remained ineffective as of June 30, 2026 because material weaknesses identified in the 2025 Form 10-K remained outstanding. The company stated that remediation had begun but did not report that the weaknesses were resolved.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management states that it intends to monetize intellectual property, tightly control operating costs, and explore capital raises and debt financing to support the company as a going concern.
Earlier filings 4
10-K · March 11, 2026
Impact BioMedical (IBO) positions itself as an IP-driven biotech and wellness company focused on polyphenol platforms (Linebacker, Equivir), Laetose sugar alternative, and functional fragrance (3F), pursuing…
10-Q · November 7, 2025
Impact BioMedical reported first quarterly product revenue of $18,000 for Q3 2025 and a gross margin of 94.4%, but operating loss remained large at $(948,000) and diluted EPS was $(0.12). Balance sheet and cash-flow…
10-Q · August 14, 2025
Impact BioMedical reported minimal revenue of $7,000 for Q2 2025 but a large net loss of $14,352,000 driven primarily by a $12,942,000 non‑cash change in fair value of a related‑party note. Cash fell to $624,000 and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.