Zhongchao Inc. reported a net loss of $5.4 million for the six months ended June 30, 2026, compared to a net loss of $862,000 in the prior year period. Revenues declined approximately 85% to $840,000 from $5.6 million, driven by intensified market competition and a strategic decision to scale down existing operations. The company discontinued its patented drug sales in June 2025, contributing to the revenue drop. Gross profit fell sharply to $55,557 with a gross margin of just 6.6%, down from 48.4% previously, as fixed costs remained elevated during the business reduction. General and administrative expenses increased by roughly $1.7 million due to share-based compensation and severance costs. The company raised approximately $4.8 million in net proceeds from a registered direct offering completed in July and August 2026. Zhongchao Inc. operates as a healthcare information, education, and training services provider for professionals and the public in China.
