Sunshine Biopharma increased its cash and cash equivalents by approximately 51% during the first half of 2026 to $13.75 million, up from $9.12 million at the end of 2025, while net inventory declined to $12.12 million from $13.47 million. The stronger cash position was supported primarily by financing activity during the period rather than operating cash generation.
The balance-sheet movement left Sunshine with approximately $30.67 million of current assets at June 30, compared with $26.85 million at year-end. Current liabilities declined to $5.62 million from $6.44 million, while total assets increased to approximately $33.63 million from $30.08 million.
Cash increased by approximately $4.7 million during the first half. Sunshine generated $7.80 million of financing cash flow, including $5.09 million from a public offering and $2.72 million from warrant exercises. That capital more than offset approximately $2.99 million of operating cash use and roughly $110,000 of investing outflows.
Inventory moved in the opposite direction. Gross finished-goods inventory declined to approximately $12.97 million at June 30 from $13.95 million at year-end. At the same time, the allowance for obsolete inventory increased to approximately $845,000 from $476,000, resulting in net inventory of $12.12 million compared with $13.47 million.
The inventory position is important because Sunshine’s commercial business is centered on generic pharmaceuticals sold through its Nora Pharma subsidiary in Canada. Nora Pharma currently markets 60 generic prescription drugs, while the broader company also maintains proprietary development programs involving K1.1 mRNA for liver cancer and SBFM-PL4 for coronavirus infections.
Revenue declined during the first half despite the stronger liquidity position. Sunshine generated $17.35 million of revenue, down 5.2% from $18.31 million a year earlier. Gross profit decreased to $4.61 million from $6.15 million as cost of sales increased relative to revenue. Net loss improved modestly to $2.81 million from $2.95 million.
The company’s second-quarter results showed similar pressure on product economics. Revenue slipped 1.6% to $9.26 million, while gross profit declined to $2.43 million from $3.42 million. Gross margin fell to 26.2% from 36.4% as finished-goods costs, sales rebates and inventory obsolescence increased.
Operating expenses, however, declined enough to partly offset that margin pressure. First-half general and administrative expenses fell to $7.62 million from $9.50 million, helping reduce operating loss to $3.01 million from $3.35 million despite the lower gross profit.
Management estimates that its existing cash combined with cash generated from sales could fund operations for approximately 27 months, based on quarterly revenue of roughly $9 million and a quarterly deficit of approximately $1.5 million. Sunshine cautioned that the estimate may prove inaccurate and said additional capital will eventually be required to expand generic pharmaceutical sales and continue research and development.
Sunshine has already raised additional capital since quarter-end. Between July 27 and August 12, the company sold approximately 1.43 million shares through a newly established at-the-market offering program and received approximately $1.72 million of net proceeds. The ATM facility permits aggregate common-stock sales of up to $4 million.
