$SLSN

SOLESENCE, INC.

CIK:0000883107|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited Consolidated Condensed) (Not Reviewed) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue:
Total revenue	$ 15,332	$ 20,359	$ 28,290	$ 34,984
Operating expense:
Cost of revenue	10,584	13,916	20,400	24,895
Gross profit	4,748	6,443	7,890	10,089
Research and development expense	947	955	1,990	1,973
Selling, general and administrative expense	3,680	3,012	6,479	5,120
Net income (loss) from operations	121	2,476	(579)	2,996
Interest expense, net	279	87	543	263
Other income, net		1,234	2	1,234
Net income (loss) before provision for income taxes	(158)	3,623	(1,120)	3,967
Provision for income taxes		390		390
Net income (loss)	$ (158)	$ 3,233	$ (1,120)	$ 3,577
Net income (loss) per share-basic	$ (0.00)	$ 0.04	$ (0.02)	$ 0.05
Weighted average number of basic common shares outstanding	70,637,199	70,200,039	70,631,380	70,151,928
Net income (loss) per share-diluted	$ (0.00)	$ 0.04	$ (0.02)	$ 0.05
Weighted average number of diluted common shares outstanding	70,637,199	72,580,679	70,631,380	72,497,929
Product [Member]
Revenue:
Total revenue	$ 15,286	$ 20,261	$ 28,205	$ 34,836
Product and Service, Other [Member]
Revenue:
Total revenue	$ 46	$ 98	$ 85	$ 148

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited Consolidated Condensed) (Not Reviewed) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net income (loss)	$ (1,120)	$ 3,577
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization	636	451
Stock-based compensation	162	247
Changes in assets and liabilities related to operations:
Trade accounts receivable, net	(2,509)	(6,180)
Inventories, net	2,006	(395)
Prepaid expenses and other assets	219	(978)
Accounts payable	766	(2,202)
Accrued expenses	605	1,301
Deferred revenue	1,007	(3,402)
Change in right of use asset and lease liability, net	(64)	(294)
Net cash provided by (used in) operating activities	1,708	(7,875)
Investing activities:
Acquisition of equipment and leasehold improvements	(997)	(1,275)
Net cash used in investing activities	(997)	(1,275)
Financing activities:
Proceeds from line of credit - inventory, related party		5,500
Proceeds from line of credit – accounts receivable, related party		6,099
Payments to line of credit – accounts receivable, related party	(980)
Proceeds from issuance of stock and exercise of stock options	27	250
Net cash (used in) provided by financing activities	(953)	11,849
(Decrease) increase in cash	(242)	2,699
Cash at beginning of period	1,288	1,409
Cash at end of period	1,046	4,108
Supplemental cash flow information:
Cash paid for interest	452	354
Income taxes paid		325
Supplemental non-cash investing and financing activities:
Accounts payable incurred for the purchase of equipment and leasehold improvements	$ 104	$ 499

CONSOLIDATED BALANCE SHEETS (Unaudited Consolidated Condensed) (Not Reviewed) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash	$ 1,046	$ 1,288
Trade accounts receivable	10,240	7,642
Allowance for credit losses	(895)	(806)
Trade accounts receivable, net	9,345	6,836
Inventories, net	12,957	14,963
Prepaid expenses and other current assets	1,922	2,141
Total current assets	25,270	25,228
Equipment and leasehold improvements, net	14,794	14,329
Operating leases, right of use	6,337	6,913
Other assets, net	36	37
Total assets	46,437	46,507
Current liabilities:
Line of credit – accounts receivable, related party	3,787	4,767
Current portion of line of credit, inventory, related party	9,500
Current portion of debt, related parties	1,000
Current portion of operating lease obligations	1,343	1,255
Accounts payable	4,968	4,098
Deferred revenue	1,937	930
Accrued expenses	3,478	2,879
Total current liabilities	26,013	13,929
Long-term portion of operating lease obligations	7,070	7,798
Long-term line of credit – inventory, related party		9,500
Long-term debt, related party		1,000
Asset retirement obligations	200	194
Total long-term liabilities	7,270	18,492
Stockholders’ equity:
Preferred stock, $.01 par value, 24,088 shares authorized, and no shares issued and outstanding
Common stock, $.01 par value, 95,000,000 shares authorized; 70,647,045 and 70,614,045 shares issued and outstanding on June 30, 2026 and December 31, 2025, respectively	706	706
Additional paid-in capital	115,754	115,566
Accumulated deficit	(103,306)	(102,186)
Total stockholders’ equity	13,154	14,086
Total liabilities and stockholders’ equity	$ 46,437	$ 46,507