Predictive Oncology (US:POAI)2025-11-14 22:15Financial 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]