NovelStem International Corp. Annual Report: A Plain-English Guide

I have put together this guide to help you understand NovelStem International Corp.’s performance this year. My goal is to translate complex financial filings into clear terms so you can decide if this company fits your investment goals.

1. What does this company do and how did they perform?

NovelStem is a holding company that owns stakes in other businesses rather than creating its own products. After moving from media to biotech in 2018, the company spent this past year downsizing significantly.

Their portfolio looks very different today than it did a year ago. In May 2025, they sold their 50% stake in "NetCo"—which owned the Net Force franchise—for $1.3 million. They used this money to pay off a $1.25 million legal debt. In October 2025, they liquidated their main biotech investment, NewStem, resulting in a total loss of that capital. Currently, the company has no employees. It is essentially a shell holding rights to potential future royalties from a stem-cell technology license owned by Yissum, a technology transfer company at Hebrew University.

2. Financial performance

The main story this year is debt reduction. Selling the NetCo stake allowed the company to wipe out a high-interest legal debt. While this cleans up the balance sheet, it also means the company sold the assets that were supposed to generate cash. The company earned almost no money from operations this year—just $600 in residual payments from NetCo. By year-end, the company reported a loss of roughly $450,000, mostly from the legal and administrative costs of staying a public company.

3. Major wins and challenges

• The Win: They successfully cleared a major legal debt. By settling the $1.25 million liability, they avoided potential bankruptcy and removed a claim against their remaining assets.
• The Challenge: They are essentially starting over without an active business. They now rely entirely on a third party (Yissum/Hebrew University) to find new users for their stem-cell technology. If that fails, NovelStem has no other way to make money, as they have less than $50,000 in cash reserves.

4. Financial health

The company is in survival mode. With a market value of roughly $1.27 million, it is a very small player. With no employees, they rely on consultants and the Executive Chairman to manage operations. Because they aren't generating cash, they must rely on outside deals or loans to stay afloat and pay the $150,000 annual cost of SEC compliance.

5. Key risks

The biggest risk is the company’s future viability. You are betting on whether a third party will successfully sell a stem-cell technology. If they fail to get approvals or find customers, NovelStem has no backup plan to cover its monthly costs of $10,000 to $15,000. They also depend heavily on Executive Chairman Jan Loeb. If he leaves, the company would likely shut down.

6. Competitive positioning

NovelStem is no longer a true competitor in the biotech space. They are currently a financial vehicle rather than an active business. They hold no patents and have no research infrastructure, meaning they have no competitive advantage in the market.

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Final Thought for Investors: When considering an investment in NovelStem, ask yourself if you are comfortable with a company that has no active operations, no employees, and a total reliance on a third party for its only potential source of future income. This is a high-risk situation where the company’s survival depends entirely on external developments outside of its direct control.