Core Viewpoint - Regencell Bioscience Holdings Ltd., a Hong Kong-based biotech startup, has experienced an extraordinary stock price increase of over 59,000% in 2025, reaching a market value of nearly $30 billion despite having no reported revenue [1][3]. Company Overview - Regencell is focused on developing traditional Chinese herbal treatments for childhood ADHD and autism, in collaboration with TCM practitioner Sik-Kee Au, who is also the CEO's father [3]. - The company has not generated any revenue or received regulatory approval for its products, and its latest annual report indicates net losses of $4.36 million and $6.06 million for the fiscal years ending June 2024 and 2023, respectively [3][4]. Stock Performance - Following a 38-for-1 stock split announced in June, Regencell's stock surged by over 280% on a single day [1]. - The company's market valuation is now comparable to major firms like Lululemon Athletica, Inc. and exceeds that of Super Micro Computer, Inc. and Reddit, Inc. [2]. Shareholder Structure - The CEO of Regencell holds 86% of the company's outstanding shares, which may be influencing the stock price dynamics [4]. Market Sentiment - Regencell has become a trending stock on platforms like Yahoo Finance and Stocktwits, with mixed social media commentary. Some retail investors are enthusiastic about the stock's volatility, while others express skepticism, likening its trading behavior to that of meme coins [5]. - As of Tuesday, Regencell shares were up 23% at $73.80 [5].

Core Insights - Regencell's stock has experienced a dramatic increase, with shares rising over 280% in a single day, following a 38-for-1 stock split [2][4] - The company, which focuses on traditional Chinese herb treatments for ADHD and autism, has seen its market capitalization reach approximately $29.7 billion [1][2] - Despite the stock surge, Regencell has not generated any revenue and has incurred significant net losses in recent fiscal years [9][10] Company Overview - Regencell, founded in 2014, is a Hong Kong-based bioscience company that trades on Nasdaq under the ticker 'RGC' since 2021 [1][2] - The CEO, Yat-Gai Au, controls 86.24% of the total shares outstanding [1] - The company develops proprietary Traditional Chinese Medicine (TCM) formulas aimed at treating ADHD and Autism Spectrum Disorders (ASD) [7][8] Financial Performance - Regencell reported total net losses of $4.36 million and $6.06 million for the fiscal years ended June 2024 and 2023, respectively [9] - The company has not generated any revenue from its TCM formula candidates nor applied for regulatory approvals [10] Market Activity - The stock's volatility is notable, with significant one-day price swings, including a 30% increase followed by a 30% decrease on consecutive trading days [6] - Regencell's market value is now comparable to established companies like Lululemon and exceeds that of Super Micro Computer and Fifth Third Bancorp [3] Product Development - Regencell's TCM formula candidates are designed to address varying severities of ADHD and ASD, utilizing natural ingredients [8] - The company has conducted limited efficacy trials, with a recent case study indicating symptom improvement in 28 patients over three months [11] Industry Context - The surge in Regencell's stock coincides with a growing interest in alternative medicines, particularly following the appointment of Robert F. Kennedy Jr. as Secretary of the U.S. Department of Health and Human Services [5] - Regencell's stock has drawn comparisons to other speculative stocks, such as AMTD Digital, which also saw significant price increases without substantial fundamentals [3]

Stock Performance - Regencell Bioscience Holdings shares experienced a significant surge of 250% [1] Corporate Action - A 38-to-1 stock split for Regencell Bioscience Holdings went into effect [1]

Company Overview - RGC Resources, Inc. is a regulated natural gas company serving the greater Roanoke Valley in Virginia, making it one of the smallest publicly traded utilities [1] Investment Strategy - The company aims to generate a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] Subscription Service - A two-week free trial is currently being offered for the subscription service, which provides access to exclusive investment ideas and in-depth research not available to the general public [1]

Company Overview - RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its operating subsidiaries Roanoke Gas Company and RGC Midstream, LLC [2]. Upcoming Events - RGC Resources, Inc. will host its quarterly conference call and webcast to review the results of its fiscal fourth quarter and 2024 fiscal year on Thursday, December 5, 2024, at 9:00 a.m. eastern time [1]. - Related presentation materials will be available before the call on the Company website [1]. Access Information - Interested parties may access the conference call by dialing toll-free 1-877-304-9269 and entering conference identification number 917621 [2]. - An archive of the webcast will be available for one year on the website [2]. Contact Information - Timothy J. Mulvaney is the VP, Treasurer, and CFO, and can be reached at telephone number 540-777-3997 [4].

Core Points - RGC Resources, Inc. declared a quarterly dividend of $0.2075 per share, marking a 3.8% increase from the previous annual level, bringing the total annual dividend to $0.83 per share [1] - The company has increased its annual dividend for 21 consecutive years, demonstrating a commitment to long-term shareholder value [1] - The completion of the MVP project in 2024 is expected to enhance the delivery of affordable and reliable natural gas to Southwest Virginia [1] Company Overview - RGC Resources, Inc. provides energy and related products and services to customers in Virginia through its subsidiaries, including Roanoke Gas Company and RGC Midstream, L.L.C. [2]

Financial Performance - RGC Resources, Inc. reported consolidated earnings of $11,760,896, or $1.16 per share, for the fiscal year ended September 30, 2024, an increase from $11,299,282, or $1.14 per share, for the fiscal year ended September 30, 2023 [1] - For the quarter ended September 30, 2024, net income was $140,822, or $0.01 per share, compared to $1,014,175, or $0.10 per share, for the same quarter in 2023 [2] - Operating revenues for the fourth quarter of 2024 were $13,104,302, up from $12,467,528 in 2023, while total operating revenues for the fiscal year were $84,641,232, down from $97,439,765 in 2023 [5] Investment and Infrastructure - The company continued to invest in utility infrastructure to enhance system reliability and support customer and earnings growth [2] - The Mountain Valley Pipeline (MVP) began operations in June 2024, contributing to higher earnings due to increased Allowance for Funds Used During Construction (AFUDC) prior to its service [1][2] Cost and Revenue Dynamics - Lower natural gas prices in 2024 reduced customer bills and company revenues, despite inflationary costs leading to higher tariffs [1] - Interest expenses increased primarily due to higher interest rates, impacting overall net income [2][5] Balance Sheet Overview - As of September 30, 2024, total assets were $320,891,159, an increase from $303,729,340 in 2023 [7] - Current liabilities decreased to $28,698,430 from $32,918,787 in 2023, while long-term debt increased to $136,672,908 from $125,844,728 [7]

[Company Overview and Risk Factors](index=6&type=section&id=Part%20I) [Key Information](index=6&type=section&id=Item%203.%20KEY%20INFORMATION) The company faces significant risks from its early-stage operations, lack of revenue, financial control weaknesses, and adverse PFIC tax status [Financial and Capital Risks](index=6&type=section&id=Risks%20Related%20to%20Our%20Financial%20Position%20and%20Need%20for%20Capital) The company has a history of net losses, no revenue, and requires substantial future financing to sustain its operations - The company is an early-stage TCM bioscience company with a limited operating history and has incurred operating losses since its formation[11](index=11&type=chunk) Net Losses | Fiscal Year Ended June 30 | Net Loss (USD) | | :--- | :--- | | 2024 | $4.36 million | | 2023 | $6.06 million | - The company has **not generated any revenue** from its TCM formulae candidates, has not applied for regulatory approvals, and lacks distribution capabilities[13](index=13&type=chunk)[14](index=14&type=chunk) - The company has limited working capital and will need **substantial additional financing**, and failure to secure funds could curtail or cease operations[15](index=15&type=chunk)[16](index=16&type=chunk) [Product Development and Regulatory Risks](index=8&type=section&id=Risks%20Related%20to%20Our%20Product%20Development%2C%20Regulatory%20Approval%2C%20Manufacturing%20and%20Commercialization) The company's core products are in early-stage development, facing significant regulatory hurdles and commercialization uncertainties - The company's three standardized TCM formulae candidates for ADHD and ASD are still in development and the business is **materially dependent on their successful commercialization**[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) - The company's research is at an early stage, requires **significant investment**, and has no certainty of obtaining regulatory approval or achieving commercial success[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Efficacy trial data relies on assessments provided by parents and caregivers, which may be **subject to bias**, potentially affecting result accuracy[25](index=25&type=chunk)[27](index=27&type=chunk) - The company relies on **trade secrets** for its core formulae, which may not be adequately protected, despite holding several trademarks in Hong Kong[48](index=48&type=chunk)[51](index=51&type=chunk) [General Company Risks](index=19&type=section&id=General%20Company%20Related%20Risks) The company has a limited operating history, key person dependency, and has identified material weaknesses in its internal financial controls - The company has a **very limited operating history**, making it difficult to evaluate its future viability[67](index=67&type=chunk)[68](index=68&type=chunk) - The company's success is **wholly dependent on its founder and CEO**, Mr. Yat-Gai Au, and its strategic partner, Mr. Sik-Kee Au (the CEO's father)[76](index=76&type=chunk)[78](index=78&type=chunk) - **Three material weaknesses** in internal control over financial reporting have been identified, including lack of skilled staff and poor segregation of duties[80](index=80&type=chunk)[81](index=81&type=chunk) - The company believes it was a **Passive Foreign Investment Company (PFIC)** for FY2024, which could result in adverse U.S. tax consequences for shareholders[94](index=94&type=chunk)[96](index=96&type=chunk) - The founder and CEO, Mr. Yat-Gai Au, beneficially owns **81.2%** of the company, making it a "controlled company" under Nasdaq rules[112](index=112&type=chunk)[113](index=113&type=chunk) [Hong Kong Operational Risks](index=30&type=section&id=Risks%20Related%20to%20Doing%20Business%20in%20Hong%20Kong) The company's Hong Kong-based operations are exposed to regional political, economic, and regulatory uncertainties - The company's operations are based in Hong Kong and it states that **PRC laws do not currently have a material impact** on its business, but this could change[117](index=117&type=chunk)[130](index=130&type=chunk) - Political and legal developments in Hong Kong, including the **National Security Law**, create uncertainty and could adversely affect the business[118](index=118&type=chunk)[119](index=119&type=chunk)[140](index=140&type=chunk) - If the PCAOB's ability to inspect the company's Hong Kong-based auditor is hindered in the future, the company's shares could be **delisted under the HFCAA**[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) [Company Information](index=36&type=section&id=Item%204.%20INFORMATION%20ON%20THE%20COMPANY) The company is an early-stage bioscience firm developing Traditional Chinese Medicine treatments for ADHD and ASD in Hong Kong - The company is an early-stage bioscience firm focused on R&D and commercialization of TCM for neurocognitive disorders like ADHD and ASD[150](index=150&type=chunk) - The company completed its IPO on July 20, 2021, raising net proceeds of approximately **$22.67 million**[158](index=158&type=chunk) - The business plan includes patenting its TCM formulae, scaling production, and commercializing first in Hong Kong before global expansion[161](index=161&type=chunk) - A second efficacy trial for its three standardized TCM formulae has shown **positive interim results** in reducing ADHD and ASD symptoms[174](index=174&type=chunk)[211](index=211&type=chunk) - The company's operations are subject to Hong Kong regulations, including the **Hong Kong Chinese Medicine Ordinance (HKCMO)**[243](index=243&type=chunk)[244](index=244&type=chunk)[247](index=247&type=chunk) [Financial and Corporate Information](index=60&type=section&id=Part%20I_Continued) [Operating and Financial Review and Prospects (MD&A)](index=60&type=section&id=Item%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) The company has generated no revenue, reported a lower net loss in FY2024, and has sufficient liquidity for the next twelve months Results of Operations (FY2024 vs. FY2023) | Metric | FY 2024 (USD) | FY 2023 (USD) | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$0** | **$0** | **$0** | **N/A** | | Selling and marketing | $125,427 | $262,664 | ($137,237) | (52)% | | General and administrative | $3,545,066 | $4,429,379 | ($884,313) | (20)% | | Research and development | $1,066,233 | $1,581,628 | ($515,395) | (33)% | | **Total operating expenses** | **$4,736,726** | **$6,273,671** | **($1,536,945)** | **(24)%** | | **Net Loss** | **($4,363,221)** | **($6,062,329)** | **$1,699,108** | **(28)%** | | **Loss Per Share (Basic & Diluted)** | **($0.33)** | **($0.45)** | **$0.12** | **(27)%** | Cash Flow Summary (FY2024) | Cash Flow Activity | Amount (USD) | | :--- | :--- | | Net cash used in operating activities | ($4,001,687) | | Net cash provided by investing activities | $5,242,624 | | Net cash provided by financing activities | $102,282 | - As of June 30, 2024, the company had **$8.0 million in cash and short-term investments** and believes this is sufficient to fund operations for at least the next twelve months[310](index=310&type=chunk) - Critical accounting estimates include share-based compensation and deferred tax assets, for which a **full valuation allowance** has been provided[326](index=326&type=chunk)[327](index=327&type=chunk)[329](index=329&type=chunk) [Directors, Senior Management and Employees](index=71&type=section&id=Item%206.%20DIRECTORS%2C%20SENIOR%20MANAGEMENT%20AND%20EMPLOYEES) This section details the company's leadership, board composition, executive compensation, share option plan, and employee count - The executive team is led by Yat-Gai Au (Chairman & CEO) and James Wai Hong Chung (Director, COO & CSO), with a board including three independent directors[332](index=332&type=chunk) - For FY2024, aggregate cash compensation paid to directors and executive officers was **$0.78 million**, with the CEO's annual base salary set at $1[342](index=342&type=chunk)[343](index=343&type=chunk) - Under the 2021 Share Option Plan, **754,553 options are outstanding** as of the report date[347](index=347&type=chunk)[355](index=355&type=chunk) - As of June 30, 2024, the company had **12 full-time employees** in Hong Kong[377](index=377&type=chunk) [Major Shareholders and Related Party Transactions](index=81&type=section&id=Item%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) The founder beneficially owns 81.2% of the company, and a key related party transaction involves exclusive rights to his father's TCM formulae Major Shareholder Ownership | Shareholder | Shares Beneficially Owned | Percentage | | :--- | :--- | :--- | | Yat-Gai Au (Founder, CEO) | 10,568,839 | 81.2% | - The company has a Strategic Partnership Agreement with the CEO's father, granting **exclusive rights to all his TCM formulae** in exchange for a 3% net revenue donation[390](index=390&type=chunk)[391](index=391&type=chunk) - The company's Audit Committee is responsible for reviewing and approving all related party transactions[395](index=395&type=chunk) [Financial Information](index=85&type=section&id=Item%208.%20FINANCIAL%20INFORMATION) The company is not involved in any material legal proceedings and does not plan to pay dividends in the foreseeable future - The company is **not currently involved in any material legal proceedings**[397](index=397&type=chunk) - The company **does not expect to declare or pay any dividends** in the foreseeable future, retaining earnings to finance business operations[398](index=398&type=chunk) [Additional Information](index=86&type=section&id=Item%2010.%20ADDITIONAL%20INFORMATION) This section covers taxation details and highlights the significant adverse PFIC tax risk for U.S. investors - The company is incorporated in the Cayman Islands and is **not subject to profits, income, or capital gains taxes there**[405](index=405&type=chunk) - In Hong Kong, subsidiaries are subject to a profits tax rate of **16.5%** on assessable profits over HK$2 million[307](index=307&type=chunk)[407](index=407&type=chunk) - The company believes it was a **PFIC for its taxable year ended June 30, 2024**, which can lead to adverse U.S. federal income tax consequences for U.S. Holders[416](index=416&type=chunk)[420](index=420&type=chunk)[428](index=428&type=chunk) - The company **does not intend to provide information for a QEF election**, limiting options for U.S. Holders to mitigate adverse PFIC tax treatment[424](index=424&type=chunk) [Market Risk Disclosures](index=94&type=section&id=Item%2011.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks, including foreign exchange, credit, and interest rate risks, are considered minimal - **Foreign exchange risk is considered minimal** because most transactions are in HKD or USD, and the HKD is pegged to the USD[443](index=443&type=chunk) - **Credit risk is limited** by placing bank deposits with well-established, high-credit-rating financial institutions[444](index=444&type=chunk) [Controls, Procedures, and Corporate Governance](index=95&type=section&id=Part%20II) [Use of IPO Proceeds](index=95&type=section&id=Item%2014.%20MATERIAL%20MODIFICATIONS%20TO%20THE%20RIGHTS%20OF%20SECURITY%20HOLDERS%20AND%20USE%20OF%20PROCEEDS) The company has used approximately $14.7 million of its IPO proceeds, with $8.0 million remaining as of June 30, 2024 - The company received net proceeds of approximately **$22.67 million** from its IPO and over-allotment[451](index=451&type=chunk) - As of June 30, 2024, **$8.0 million** of the net IPO proceeds remained unused[453](index=453&type=chunk) [Controls and Procedures](index=95&type=section&id=Item%2015.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls were ineffective as of June 30, 2024, due to three identified material weaknesses - Management concluded that **disclosure controls and procedures were not effective** as of June 30, 2024[454](index=454&type=chunk) - **Three material weaknesses** were identified: (1) lack of staff with U.S. GAAP/SEC knowledge, (2) lack of an internal audit function, and (3) lack of segregation of duties[458](index=458&type=chunk) - Remediation efforts include recruiting experienced personnel and engaging external experts for complex transactions[459](index=459&type=chunk) - As an emerging growth company, an **attestation report on internal control is not required** from the independent auditor[462](index=462&type=chunk) [Corporate Governance and Other Matters](index=97&type=section&id=Item%2016.%20Corporate%20Governance%20and%20Other%20Matters) This section outlines corporate governance details, including the audit committee financial expert, accountant fees, and cybersecurity framework - The board has determined that Dr. Wing Yan (William) Lo qualifies as an "**audit committee financial expert**"[464](index=464&type=chunk) Principal Accountant Fees (USD) | Fee Type | FY 2024 | FY 2023 | | :--- | :--- | :--- | | Audit Fees | $120,000 | $120,000 | | Audit-Related Fees | $30,000 | $30,000 | | **Total Fees** | **$150,000** | **$150,000** | - The company has implemented a **cybersecurity risk management strategy**, with oversight from the board of directors[476](index=476&type=chunk)[477](index=477&type=chunk)[478](index=478&type=chunk) [Financial Statements](index=99&type=section&id=Part%20III) [Consolidated Financial Statements](index=100&type=section&id=Item%2018.%20FINANCIAL%20STATEMENTS) This section presents the U.S. GAAP consolidated financial statements for the three years ended June 30, 2024 Consolidated Balance Sheet Highlights (as of June 30) | Account | 2024 (USD) | 2023 (USD) | | :--- | :--- | :--- | | Cash | $2,961,235 | $1,564,795 | | Short-term investment | $5,000,000 | $10,000,000 | | **Total Assets** | **$8,438,211** | **$12,621,755** | | **Total Liabilities** | **$219,512** | **$632,320** | | **Total Shareholders' Equity** | **$8,218,699** | **$11,989,435** | Consolidated Statement of Operations Highlights (Year Ended June 30) | Account | 2024 (USD) | 2023 (USD) | 2022 (USD) | | :--- | :--- | :--- | :--- | | Total operating expenses | $4,736,726 | $6,273,671 | $7,617,770 | | **Net Loss** | **($4,363,221)** | **($6,062,329)** | **($7,594,555)** | | **Loss Per Share** | **($0.33)** | **($0.45)** | **($0.58)** | - The company's operations are primarily funded by proceeds from its IPO and it has **not generated revenue since inception**[504](index=504&type=chunk)[508](index=508&type=chunk) - As of June 30, 2024, the company had tax loss carry-forwards of approximately **$17 million**, against which a full valuation allowance has been recorded[554](index=554&type=chunk)

Core Points - RGC Resources, Inc. declared a quarterly dividend of $0.20 per share, marking its 322nd consecutive quarterly cash dividend [1] - The dividend will be paid on November 1, 2024, to shareholders of record on October 18, 2024 [1] - RGC Resources, Inc. operates through subsidiaries such as Roanoke Gas Company and RGC Midstream, L.L.C., providing energy and related services in Virginia [1] Company Overview - RGC Resources, Inc. is involved in the energy sector, specifically providing gas and related services [1] - The company has a consistent history of dividend payments, indicating a stable financial performance [1] Financial Information - The declared dividend of $0.20 per share reflects the company's ongoing commitment to returning value to shareholders [1]

ROANOKE, Va., July 26, 2024 (GLOBE NEWSWIRE) -- RGC Resources, Inc. (Nasdaq: RGCO) will host its quarterly conference call and webcast to review the results of its fiscal third quarter 2024 on Wednesday, August 7, 2024 at 9:00 a.m. eastern time. Related presentation materials will be available before the call on the Company website on the Investor & Financial Information page at https://www.rgcresources.com/investor-financial-information/. Interested parties may access the conference call by dialing toll-f ...