Quantum Healthcare Limited Q3 2025 Financial Review: Improving Losses, Ongoing Uncertainty

Quantum Healthcare Limited has released its unaudited condensed interim financial statements for the third quarter ended 30 September 2025. The company, which has shifted its focus primarily to dental and healthcare services after exiting its vascular business, continues to face challenges on both profitability and balance sheet strength. This review summarizes the key results, tracks YoY and QoQ performance, and highlights notable events and risks for investors.

Key Financial Metrics

Historical Performance and Trends

• Revenue: The Group’s revenue for the nine months ended 30 September 2025 increased modestly by 3.8% YoY to S\$9.60 million, mainly attributed to the new dental clinic at TDH Sengkang.
• Profitability: Loss before tax narrowed significantly YoY: S\$574,000 loss in 9M 2025 vs S\$1,281,000 loss in 9M 2024, thanks to higher gross profit and lower administrative expenses.
• Operating Cash Flow: The company generated positive cash flow from operations (S\$1.67 million in 9M 2025 vs S\$1.13 million in 9M 2024), but this was offset by financing outflows and investments.
• Balance Sheet Health: The group remains in a net liability position, with negative equity of S\$3.59 million as of 30 September 2025. Current liabilities exceed current assets by S\$8.78 million.

Exceptional Items & Legal Proceedings

• Legal Proceedings: The Group remains embroiled in legacy legal disputes arising from the discontinued vascular business. A key arbitration resulted in a ruling for a final milestone payment (EUR 500,000 plus 10% interest), reimbursement of US\$119,875 in AAA administrative fees, and significant legal costs (S\$2.95 million). No further significant provisions are expected, as the core dispute appears settled.
• Going Concern Uncertainty: Auditors have issued disclaimers for the past three years due to doubt about the Group’s ability to continue as a going concern. Management intends to resolve this by raising new equity (S\$3 million placement pending), converting debt to equity, and capitalizing directors’ fees.
• Fundraising and Dilution: The company plans a substantial placement (S\$3 million) and debt-to-equity conversion (S\$1.76 million), which will dilute existing shareholders but improve the balance sheet.

Chairman’s Statement

On behalf of the Board of Directors of the Company, we the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the unaudited condensed interim financial statements of the Company and the Group for the three months and nine months ended 30 September 2025 to be false or misleading in any material aspect.

The tone of the statement is neutral and procedural, focusing on compliance and accuracy, with no direct commentary on business prospects or strategy.

Dividend Policy

• No dividend has been declared or recommended for the current period, consistent with the previous corresponding period. The company remains loss-making, and this policy is expected to continue.

Events and Risks Impacting the Business

• Liquidity Risk: Negative working capital and net liabilities pose a material risk. The company is relying on fundraising and restructuring to avoid insolvency.
• Fundraising Dependency: The company’s ability to continue as a going concern is highly dependent on the successful completion of the share placement, debt-to-equity conversion, and continued support from creditors and directors.
• Operational Trends: Demand for dental services remains steady, but cost pressures and manpower constraints persist. Management is focused on streamlining operations and seeking new business opportunities.

Directors’ Remuneration

• Some directors’ fees remain unpaid and will be converted to shares, further diluting existing shareholders.

Outlook

The company’s outlook is highly contingent on successful fundraising and ongoing support from creditors and directors. While the core healthcare business is generating positive cash flow, the Group’s overall financial position remains weak due to legacy liabilities and accumulated losses.

Recommendations

• If currently holding the stock:
  
  Caution is advised. While management is taking steps to address the going concern risk through fund-raising and debt conversion, the high debt load, negative equity, and dilution risk remain significant. Existing holders should monitor the outcome of the planned placement and debt conversion closely and consider reducing exposure if these efforts falter or dilution is excessive.
• If not holding the stock:
  
  It is prudent to remain on the sidelines until the company demonstrates a sustainable improvement in its balance sheet and profitability, and successfully executes its fundraising and restructuring plans. The risk of further dilution and persistent negative equity outweighs the modest operational progress.

Disclaimer: This article is not investment advice. Recommendations are based strictly on the contents of the company’s published financial report as of 13 November 2025. Investors should conduct their own due diligence and consider their risk appetite before making any investment decisions.

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