Core Points - The company will make forward-looking statements during the presentation, which include projections, expectations, plans, beliefs, and future performance [1] - These forward-looking statements are based on judgment and analysis as of the presentation date and are subject to risks and uncertainties that could lead to actual results differing materially from those described [1] - The company cannot guarantee the accuracy or reliability of statements made by third parties or advisers, nor can it assure that any expressed expectations or forecasts will materialize [2] - The risks and uncertainties associated with the forward-looking statements are detailed in the company's public periodic filings with the SEC [2] - The company does not intend to update forward-looking statements to reflect future events or actual outcomes, except as required by law [2] - Presentation slides can be accessed via the Investors page of the company's website [2]

Predictive Oncology (NasdaqCM:POAI) Q3 2025 Earnings Call November 17, 2025 09:00 AM ET Company ParticipantsRaymond Vennare - CEOJosh Blacher - CFOKyle Okamoto - CTO and AI General ManagerTom McLaughlin - CIOOperatorBefore we begin, let me quickly remind you that during the course of this presentation, the company will make forward-looking statements. We caution you that any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the company's project ...

Predictive Oncology (NasdaqCM:POAI) Q3 2025 Earnings Call November 17, 2025 09:00 AM ET Company ParticipantsRaymond Vennare - CEOJosh Blacher - CFOKyle Okamoto - CTO and AI General ManagerTom McLaughlin - CIOOperatorBefore we begin, let me quickly remind you that during the course of this presentation, the company will make forward-looking statements. We caution you that any statement that is not a statement of historical fact is a forward-looking statement. This includes remarks about the company's project ...

Financial Data and Key Metrics Changes - The company concluded Q3 2025 with $182,000 in cash and cash equivalents, down from $612,000 as of December 31, 2024 [13] - The net loss for Q3 2025 was $77.7 million, compared to a loss of $3.1 million in Q3 2024, primarily due to a $74.4 million loss on remeasurement of a derivative liability [13] - Revenue for Q3 2025 was $3.6 million, largely unchanged from $3.9 million in the same period in 2024 [14] - General and administrative expenses increased to $2.6 million in Q3 2025 from $1.5 million in Q3 2024 [15] Business Line Data and Key Metrics Changes - The company launched a digital asset treasury strategy focused on Aethir's ATH token, representing a new business line aimed at generating revenue through AI infrastructure [3][4] - The investment in ATH tokens is expected to create a new revenue stream by converting tokens into GPU compute capacity [6][7] Market Data and Key Metrics Changes - AI infrastructure spending is projected to reach $2.8 trillion globally by 2029, indicating a significant growth opportunity for the company [7][26] - The demand for AI compute power is outpacing supply by more than 10 times, highlighting a critical market need [26][27] Company Strategy and Development Direction - The company aims to leverage its strategic compute reserve to democratize access to AI infrastructure while generating revenue [7][39] - The digital asset strategy includes passive staking, active staking, GPU leasing, and token rotation to diversify revenue sources [18][20] - The company plans to utilize ATH tokens to rent GPUs and provide AI infrastructure to enterprises, creating a virtuous cycle of revenue generation [30][39] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of building a strategic compute reserve to address the growing demand for AI infrastructure [27][39] - The company is optimistic about its partnership with Aethir and the potential for significant revenue growth in the AI infrastructure market [40] Other Important Information - The company holds approximately 5.7 billion ATH tokens with a market value of approximately $145.9 million as of November 10, 2025 [17] - The strategic compute reserve is expected to allow the company to onboard NVIDIA's latest GPUs to meet enterprise demand [39] Q&A Session Summary Question: What is the company's strategy regarding the ATH tokens? - The company plans to actively manage ATH tokens through staking, leasing, and token rotation to maximize returns and generate cash flow [18][20] Question: How does the company plan to address the supply-demand imbalance in AI infrastructure? - The company aims to stimulate supply by monetizing ATH holdings and providing GPU access to enterprises, addressing the critical shortage in AI infrastructure [27][30]

Financial Performance - Revenue for Q3 2025 was $3,618, slightly down from $3,907 in Q3 2024, indicating minimal change year-over-year[9] - Basic and diluted loss per common share from continuing operations for Q3 2025 was $(107.24), compared to $(4.99) for Q3 2024[9] - The net loss for the company was $82,165,178, compared to a net loss of $10,494,794 in the prior period[18] - Loss from continuing operations was $77,646,737, significantly higher than the loss of $2,129,880 reported previously[18] - Loss per common share, basic and diluted, was $136.12, compared to $31.20 in the previous period[18] - The company reported a total operating loss of $8,226,779, compared to $8,207,133 in the prior period[18] Expenses - General and administrative expenses increased by $1.1 million to $2.6 million in Q3 2025, primarily due to higher legal fees and stock-based compensation[9] - Total operating expenses for the period were $8,271,694, a slight increase from $8,235,685 in the previous period[18] - General and administrative expenses amounted to $6,316,930, up from $5,696,109 in the previous period[18] - Research and development expenses were $1,548,678, a decrease from $1,724,013 in the prior period[18] - Sales and marketing expenses increased to $406,086 from $815,563 in the previous period[18] - Sales and marketing expenses increased to $133,494 in Q3 2025 from $72,667 in Q3 2024, attributed to higher digital marketing consultant fees[9] Digital Asset Strategy - The company recorded a derivative liability of $74.4 million related to the initiation of its digital asset treasury strategy focused on the ATH token[9] - The company initiated a digital asset treasury strategy focused on ATH, receiving approximately $50.8 million in cash gross proceeds and in-kind contributions valued at approximately $292.7 million[4] - The company held approximately 5.70 billion ATH with a market value of approximately $152.8 million as of November 10, 2025[4] - The company experienced a significant loss on derivative instruments amounting to $74,366,000[18] Corporate Developments - The company appointed Shawn Matthews, CEO of DNA Holdings, to its Board of Directors[4] - The company announced a strategic collaboration with Every Cure to identify and prioritize drugs for repurposing to improve patient outcomes[4]

Financial Position and Capital Structure - The company holds approximately 5.70 billion ATH tokens, valued at approximately $152.8 million, with 3.7 billion ATH locked and subject to vesting restrictions[131] - The company received gross proceeds of approximately $413,093 from the August 2025 private placement, selling 36,237 shares at $11.40 per share[147] - The company completed a reverse stock split of 1-for-15 on September 29, 2025, resulting in a significant increase in stock price and regaining compliance with Nasdaq's Minimum Bid Price Requirement[144] - The company entered into a securities purchase agreement on September 29, 2025, raising approximately $50.8 million from the sale of 4,366,703 shares at $11.6265 per share[150] - The company entered into a securities purchase agreement on September 29, 2025, to sell warrants for up to 14,903,393 shares of common stock, with an aggregate notional value of approximately $292.7 million[152] - The company plans to use proceeds from the September Private Placements primarily for acquiring ATH in the open market and for working capital[155] - The engagement agreement with Wainwright entitles them to a cash fee of 5% of gross cash proceeds from the September Private Placements[157] - The company closed two private placements on October 7, 2025, receiving approximately $50.8 million in gross proceeds[190] - As of September 30, 2025, the company held approximately 5.70 billion ATH, with a market value of approximately $152.8 million[191] - As of May 31, 2024, the company offered and sold 107,140 shares of common stock for gross proceeds of approximately $3,696,000, with net proceeds of about $3,122,000 after deducting commissions and offering expenses[201] - On September 30, 2025, the company had approximately $2,292,000 remaining available for sales of common stock under the Sales Agreement[203] - During the three months ended September 30, 2025, the company issued and sold 78,356 shares of common stock, resulting in net proceeds of approximately $921,000 after deducting issuance costs[204] - In August 2025, the company sold 36,237 shares of common stock at a purchase price of $11.40 per share in a private placement transaction[205] - The September 2025 Private Placements generated aggregate proceeds of $50.8 million before issuance fees and expenses from the sale of 4,366,703 shares of common stock[206] - The company received ATH with an aggregate notional value of $292.7 million and a discounted value of $173.3 million from the Crypto PIPE Warrants[207] - The company intends to use the ATH received in-kind from the Crypto PIPE Offering to fund its Treasury Strategy and for working capital and general corporate purposes[208] Revenue and Expenses - The company reported a revenue of $3,618 and $3,907 for the three months ended September 30, 2025 and 2024, respectively, indicating a decrease of $289[171] - For the nine months ended September 30, 2025, revenue increased to $116,610 from $76,020 in the same period of 2024, a growth of approximately 53.4%[172] - The company incurred losses from continuing operations of $68,437,048 for the nine months ended September 30, 2025, compared to $8,150,654 for the same period in 2024[165] - The cost of sales decreased to $8,356 in Q3 2025 from $11,177 in Q3 2024, resulting in improved gross margin[173] - Cost of sales increased to $71,695 in the nine months ended September 30, 2025, from $47,468 in 2024, with a gross profit margin of approximately 39%[174] - General and administrative expenses rose by $1,067,804 to $2,613,075 in the three months ended September 30, 2025, primarily due to increased legal fees and stock-based compensation[175] - Operations, research and development expenses decreased by $175,335 to $1,548,678 in the nine months ended September 30, 2025, driven by lower headcount and decreased consultant fees[178] - Sales and marketing expenses decreased by $409,477 to $406,086 in the nine months ended September 30, 2025, mainly due to reduced employee compensation and headcount[180] - Other income for the nine months ended September 30, 2025, was $688,483, compared to $64,497 in 2024, primarily related to the write-off of aged accounts payable[181] - Losses on derivative instruments amounted to $74,366,000 in the three and nine months ended September 30, 2025, related to the Crypto PIPE Offering[182] Cash Flow and Financial Health - Cash and cash equivalents decreased by $430,155 from December 31, 2024, totaling $181,667 as of September 30, 2025[183] - Net cash used in operating activities of continuing operations was $5,934,497 in the nine months ended September 30, 2025, down from $8,049,679 in 2024[184] - The company is facing continued negative operating cash flows and capital needs that may require further financing, potentially dilutive[128] - The company has an accumulated deficit of $249,117,449 as of September 30, 2025, up from $180,426,271 at the end of 2024[165] Strategic Initiatives - The company has adopted a Treasury Strategy focused on acquiring and staking ATH tokens to generate yield and enhance treasury asset productivity[130] - The company adopted a Treasury Strategy in September 2025 to create new sources of capital and address additional capital needs[166] - The company is concentrating its treasury assets in ATH, which poses risks if adverse developments occur within the ATH network[135] - The company discontinued discussions regarding a proposed merger with Renovaro, which could have material impacts due to ongoing litigation[138] - The company has received a notice from Nasdaq regarding potential delisting due to non-compliance with stockholders' equity requirements, but has since been granted an extension to demonstrate compliance[140]

Core Viewpoint - Predictive Oncology has initiated a digital asset treasury strategy focused on the Aethir ecosystem and its native utility token, ATH, aiming to enhance access to affordable AI infrastructure and drive innovation in drug discovery [3][5][11]. Q3 2025 and Recent Highlights - The company reported a significant development in September 2025, launching a digital asset treasury strategy centered on ATH, which is expected to democratize AI access and address the demand for advanced computing power [3][5]. - Predictive Oncology's partnership with Aethir aims to leverage the latter's decentralized GPU network to provide enterprise-grade AI solutions at lower costs [3][5]. - The company appointed Shawn Matthews to its Board of Directors, enhancing its leadership team [5]. Q3 2025 Financial Summary - The company raised approximately $50.8 million in cash and received in-kind contributions of ATH valued at about $292.7 million through private placements [5]. - As of November 10, 2025, Predictive Oncology held approximately 5.70 billion ATH, with a market value of around $152.8 million, based on a price of $0.0268 per ATH [5]. - The company aims to utilize ATH to create a Strategic Compute Reserve, facilitating enterprise demand for computing power [5][11]. Q3 2025 Financial Results - For the quarter ended September 30, 2025, the company reported revenue of $3,618, a slight decrease from $3,907 in the same period of 2024 [10][17]. - General and administrative expenses increased to $2.6 million, primarily due to higher legal fees and stock-based compensation [10][17]. - The company recorded a net loss of $77.65 million for the quarter, significantly higher than the loss of $3.09 million in Q3 2024, largely due to a derivative liability of $74.4 million related to the digital asset strategy [10][17]. Balance Sheet Overview - As of September 30, 2025, the company had total assets of approximately $3.14 billion, down from $4.97 billion as of December 31, 2024 [14][15]. - Current liabilities increased significantly to approximately $79.49 million, compared to $3.59 million at the end of 2024 [15]. - The stockholders' deficit improved to $77.43 million from $202.61 million as of December 31, 2024 [15].

Core Insights - Predictive Oncology Inc. has appointed Shawn Matthews, Thomas McLaughlin, and Sara Turken to its leadership team and Board of Directors to support its new digital asset treasury strategy focused on the Aethir (ATH) token [1][2][3] Leadership Appointments - Shawn Matthews, CEO of DNA Holdings Venture, Inc. and former CEO of Cantor Fitzgerald, joins the Board of Directors [2][3] - Thomas McLaughlin, CIO of DNA Holdings Venture, Inc., is appointed as Chief Investment Officer [2][4] - Sara Turken, JD, a biopharmaceutical veteran, is appointed as General Counsel [2][5] Strategic Focus - The company is leveraging its AI-driven drug discovery capabilities to implement an innovative digital treasury asset strategy, which aims to address its AI requirements and capitalize on the growing global need for AI infrastructure [3][8] - Predictive Oncology operates a digital asset treasury focused on the Aethir (ATH) token, creating the world's first Strategic Compute Reserve [8] Company Background - Predictive Oncology utilizes AI and machine learning to expedite early drug discovery, with its platform, PEDAL, achieving 92% accuracy in predicting tumor responses to drug compounds [6][7] - The company has a biobank of over 150,000 assay-capable heterogeneous human tumor samples, providing extensive AI-based drug discovery solutions [7]

Core Insights - Predictive Oncology has successfully closed two private investment in public equity transactions (PIPEs) totaling approximately $343.5 million to support its digital asset treasury strategy focused on ATH, the native utility token of the Aethir ecosystem [1][2] Investment Details - The PIPEs consist of two components: - A cash PIPE raising approximately $50.8 million through the sale of about 4.4 million shares of common stock at a price of $11.6265 per share [2] - A crypto PIPE involving pre-funded warrants to purchase up to approximately 14.9 million shares of common stock for a purchase price of $11.6165 per warrant, in exchange for approximately $292.7 million in notional value of ATH contributions [2] - The PIPEs closed on October 7, 2025, and the pre-funded warrants will be exercisable following shareholder approval [2][4] Strategic Intent - The company aims to utilize the in-kind contribution of ATH to fund its digital asset treasury strategy and acquire ATH in the open market, alongside working capital and general corporate purposes [4] - The investment aligns with the company's computational needs and capital requirements as it seeks to lead in AI-driven drug discovery [5] Company Background - Predictive Oncology leverages AI and machine learning for drug discovery, with its platform, PEDAL, achieving 92% accuracy in predicting tumor responses to drug compounds [9] - The company has a biobank of over 150,000 tumor samples, enhancing its AI-based drug discovery capabilities [9] Aethir Overview - Aethir is a decentralized physical infrastructure network providing GPU resources for AI computation, gaming, and cloud workloads, aiming to democratize access to AI infrastructure [7][8] - ATH serves as a utility token within the Aethir ecosystem, facilitating GPU rentals, staking, and rewards [8]

Market Overview - U.S. stocks traded higher, with the Nasdaq Composite gaining around 150 points on Monday, while the Dow rose 0.19% to 46,333.68, the NASDAQ increased 0.67% to 22,635.76, and the S&P 500 climbed 0.42% to 6,671.51 [1] - Information technology shares jumped by 0.8%, while energy stocks fell by 0.8% [1] Real Estate Sector - U.S. pending home sales surged by 4% in August, marking the sharpest gain in five months, compared to a 0.4% decline in the previous month [2][7] Commodity Market - Oil traded down 2% to $64.41, while gold increased by 0.9% to $3,844.30. Silver rose 0.5% to $46.895, and copper gained 0.7% to $4.8070 [4] European Market - European shares were mostly higher, with the eurozone's STOXX 600 gaining 0.2%, while Spain's IBEX 35 Index fell 0.2%. London's FTSE 100 rose 0.4%, Germany's DAX 40 slipped 0.1%, and France's CAC 40 climbed 0.3% [5] Asian Market - Asian markets closed mixed, with Japan's Nikkei 225 falling 0.69%, Hong Kong's Hang Seng gaining 1.89%, China's Shanghai Composite rising 0.90%, and India's BSE Sensex falling 0.08% [6] Stock Performance - Maison Solutions Inc. (NASDAQ: MSS) shares surged 257% to $3.3603, while Predictive Oncology Inc. (NASDAQ: POAI) increased 112% to $1.64 after announcing a 1-for-15 reverse stock split. Maison Solutions Inc. also saw a 167% gain to $2.56 [9] - KALA BIO, Inc. (NASDAQ: KALA) shares dropped 92% to $1.4350 after failing to meet primary endpoints in a clinical trial. MoonLake Immunotherapeutics (NASDAQ: MLTX) shares fell 89% to $6.76 following disappointing trial results, and IO Biotech, Inc. (NASDAQ: IOBT) was down 75% to $0.3941 after an update post-FDA meeting [9]