Borealis Foods Inc. disclosed in its latest quarterly report, published around May 27, 2025, that its cash reserves had slipped to less than $200,000. The report indicated that the company incurred consecutive quarters of losses and negative cash flow, leading to substantial doubt about its ability to continue as a going concern. CEO Reza Soltanzadeh agreed to waive his salary for the quarter in response to the cash crunch.
The quarterly report showed the company generated $7.2 million in revenue for the period, a decrease from $8.5 million in the previous year's comparable quarter. This financial update follows previous disclosures, including material weaknesses in internal controls over financial reporting identified in the 2023 annual report. The 2024 report also revealed that CEO Soltanzadeh provided $800,000 to shore up cash reserves, which had fallen from $7.6 million to under $700,000.
The company had previously embarked on a $3 million share buyback program midway through the year, which impacted its cash position. Management stated it is actively evaluating additional financing options to address the liquidity constraints. Despite these challenges, the CEO issued a letter to shareholders on the same day, reiterating the company's strategic positioning as a US-based food producer with a manufacturing facility capable of producing 600 million meals per year.
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