Protagenic Therapeutics(US:PTIX)2025-11-26 22:26Financial Performance - The net loss for the six months ended September 30, 2025, was $5,927,019, compared to a loss of $906,742 for the same period in 2024[10]. - The company reported a basic and diluted net loss per share of $2.16 for the six months ended September 30, 2025[10]. - Comprehensive loss for the six months ended September 30, 2025, was $5,891,661, compared to $1,045,936 in the previous year[10]. - The net loss for the period ending June 30, 2024, was $582,387, reflecting a significant increase compared to previous periods[12]. - The company reported a net loss of $5,057,523 for the period ending June 30, 2025, which raises concerns about sustainability[12]. - For the six months ended September 30, 2025, the company reported a net loss of $5,927,019, compared to a net loss of $906,742 for the same period in 2024[15]. - The net cash used in operating activities was $2,562,666 for the six months ended September 30, 2025, significantly higher than $563,868 for the same period in 2024[15]. - The company has incurred significant recurring losses, resulting in an accumulated deficit of $11,324,625 as of September 30, 2025[30]. - The company anticipates further losses in the development of its business, raising substantial doubt about its ability to continue as a going concern[30]. Assets and Liabilities - Total assets increased to $5,002,847 from $89,093, reflecting significant growth in current and long-term assets[8]. - Current liabilities rose to $9,703,412, up from $5,042,052, indicating increased financial obligations[8]. - Cash in bank increased significantly to $2,722,451 from $14,531, indicating improved liquidity[8]. - The accumulated deficit grew to $(11,324,625) as of September 30, 2025, from $(5,397,606) at the end of the previous fiscal year[8]. - The company had a working capital deficit of $6,845,200 as of September 30, 2025, compared to $4,952,959 as of March 31, 2025[30]. - The total stockholders' equity as of June 30, 2025, was $(10,455,129), underscoring significant financial distress[12]. - As of September 30, 2025, the Company reported total accounts payable of $1,641,443, an increase from $961,117 as of March 31, 2025[79]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $1,113,864, a substantial increase from $355,374 in the same period last year[10]. - Research and Development expenses surged to $273,229 for the three months ended September 30, 2025, compared to $16,964 in the prior year, highlighting a focus on innovation[10]. - The company expects to reduce annualized operating expenses by approximately $8 million as part of its restructuring plan[29]. - Stock-based compensation for the period was recorded at $105,868, highlighting the company's investment in employee incentives[13]. Equity and Financing - The company issued 5,705 shares in connection with the Phytanix Bio purchase, valued at approximately $950,000[12]. - The issuance of Series A Convertible Preferred Stock to officers amounted to 2,000 shares, indicating ongoing equity financing efforts[12]. - The total amount of common stock issued was 5,800,000 shares, reflecting ongoing capital raising efforts[12]. - The Company recognized a derivative liability of $3,656,394 as of September 30, 2025, reflecting changes in fair value and the recognition of conversion options on notes payable[91]. - The Company raised approximately $4.3 million from the exercise of warrants and a capital raise during the six months ended September 30, 2025[30]. Impairment and Revenue Recognition - The Company did not recognize any impairment losses for the period ended September 30, 2025[45]. - The Company assesses impairment of identifiable intangibles based on significant underperformance, changes in asset use, and negative industry trends[42]. - The Company recognizes revenue in accordance with ASC Topic 606, reflecting the transfer of goods or services to customers[54]. Corporate Governance and Compliance - The Company received a deficiency letter from Nasdaq on July 24, 2024, indicating non-compliance with minimum bid price requirements, with a deadline to regain compliance by January 20, 2025[137]. - The Company was granted an extension by Nasdaq to demonstrate compliance with listing requirements until April 28, 2025, following a proposed 1-for-14 reverse stock split[141]. - On June 17, 2025, Nasdaq confirmed the Company was in compliance with multiple listing rules, including bid price and public float requirements[143]. - Jennifer Chao resigned from the Board of Directors on November 3, 2025, with no reported disagreements[150]. Strategic Changes - The company temporarily suspended expenditures related to its preclinical programs as part of its restructuring plan[28]. - The company changed its fiscal year end to March 31, 2025, to align with Phytanix Bio, which is considered the accounting acquirer[26]. - The Company anticipates starting Phase 3 clinical trials for its drugs around Q3 2027, at which point the amortization of intangible assets will commence[78].