Predictive Oncology Narrows Loss Amid Revenue Plunge, Delisting Threat

Ticker: AGPU · Form: 10-Q · Filed: Aug 13, 2025 · CIK: 1446159

Sentiment: bearish

Topics: Biotechnology, Oncology, Artificial Intelligence, Going Concern, Nasdaq Delisting, Cash Burn, Biopharma

Related Tickers: POAI, RENB

TL;DR

**POAI is burning cash fast and facing delisting, making it a high-risk bet despite a narrower net loss.**

AI Summary

Predictive Oncology Inc. (POAI) reported a net loss of $2.07 million for the three months ended June 30, 2025, a significant improvement from the $3.18 million net loss in the same period of 2024. For the six months ended June 30, 2025, the net loss was $4.51 million, down from $7.40 million in 2024. Revenue, however, saw a sharp decline, dropping from $67,255 in Q2 2024 to just $2,682 in Q2 2025, and from $72,113 to $112,992 for the six-month periods, respectively. The company's accumulated deficit reached $184.94 million as of June 30, 2025, with cash and cash equivalents at $506,078. Key business changes include the termination of the proposed merger with Renovaro, Inc. on March 31, 2025, and the discontinuation of its Eagan operating segment, which produced the FDA-cleared STREAMWAY System, during Q1 2025. Risks include substantial doubt about its ability to continue as a going concern due to recurring losses and the need for significant additional capital, as well as ongoing Nasdaq delisting concerns regarding minimum stockholders' equity and bid price requirements. The strategic outlook focuses on applying AI to cancer therapy discovery and development, alongside efforts to raise capital through equity financing and business collaborations.

Why It Matters

Predictive Oncology's continued struggle with profitability and its 'going concern' warning directly impacts investor confidence, signaling high risk for new capital. The termination of the Renovaro merger and the divestiture of the STREAMWAY System segment indicate a strategic pivot towards its core AI oncology focus, but also highlight challenges in diversifying revenue streams. For employees, the financial instability and strategic shifts could lead to uncertainty. Customers of the discontinued STREAMWAY System will need to find alternative solutions, while those in the oncology drug development space will be watching if POAI's AI platform can deliver on its promise amidst intense competition from larger, better-funded biotech firms.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt exists about the Company's ability to continue as a going concern' due to an accumulated deficit of $184,939,606 and negative cash flows from continuing operating activities of $4,280,632 for the six months ended June 30, 2025. Additionally, POAI received a Nasdaq delisting notice on June 9, 2025, for failing to meet the $2.5 million minimum stockholders' equity requirement, and another on July 8, 2025, for its common stock closing below $1.00 for 30 consecutive business days.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Given the 'going concern' warning and ongoing Nasdaq delisting threats, potential investors should wait for clear evidence of sustained profitability, significant capital infusion, or successful resolution of listing compliance issues before considering a position.

Financial Highlights

debt To Equity
N/A
revenue
$112,992
operating Margin
N/A
total Assets
$3,435,366
total Debt
$5,088,766
net Income
-$4,510,000
eps
-$0.47
gross Margin
43.9%
cash Position
$506,078
revenue Growth
+56.7%

Revenue Breakdown

SegmentRevenueGrowth
Core Operations$2,682-96.0%
Core Operations (6 Months)$112,992+56.7%

Key Numbers

Key Players & Entities

FAQ

What is Predictive Oncology Inc.'s current financial health?

Predictive Oncology Inc. is in a precarious financial state, reporting an accumulated deficit of $184,939,606 as of June 30, 2025, and negative cash flows from continuing operating activities of $4,280,632 for the six months ended June 30, 2025. The company explicitly states 'substantial doubt exists about the Company's ability to continue as a going concern' due to these recurring losses and the need for significant additional capital.

Why did Predictive Oncology Inc. receive a Nasdaq delisting notice?

Predictive Oncology Inc. received a Nasdaq delisting notice on June 9, 2025, because its stockholders' equity of $1,966,969 was below the required minimum of $2.5 million. A second notice was received on July 8, 2025, for failing to meet the minimum bid price requirement of $1.00 per share for 30 consecutive business days.

What was Predictive Oncology Inc.'s revenue for the second quarter of 2025?

Predictive Oncology Inc.'s revenue for the three months ended June 30, 2025, was $2,682. This represents a significant decrease compared to $67,255 in revenue for the same period in 2024.

What strategic changes did Predictive Oncology Inc. make in early 2025?

In early 2025, Predictive Oncology Inc. terminated its proposed merger with Renovaro, Inc. on March 31, 2025. Additionally, during the first quarter of 2025, the company discontinued its Eagan operating segment, which previously produced the FDA-cleared STREAMWAY System for medical fluid waste management.

How much cash and cash equivalents does Predictive Oncology Inc. have?

As of June 30, 2025, Predictive Oncology Inc. had cash and cash equivalents totaling $506,078. This low cash balance, combined with significant operating losses, contributes to the 'going concern' risk.

What is Predictive Oncology Inc.'s primary business focus now?

Following the discontinuation of its Eagan operating segment, Predictive Oncology Inc. now operates as one segment focused on applying artificial intelligence (AI) to support the discovery and development of optimal cancer therapies. The company leverages its proprietary biobank of over 150,000 tumor samples for drug discovery insights.

What is the outlook for Predictive Oncology Inc. regarding its Nasdaq listing?

Predictive Oncology Inc. was granted an extension by the Nasdaq Hearings Panel through December 8, 2025, to demonstrate compliance with all continued listing requirements, including the Stockholders' Equity Requirement and Minimum Bid Price Requirement. The company is pursuing several actions, including continued stock sales and a potential reverse stock split, but there is no assurance of compliance.

How has Predictive Oncology Inc.'s net loss changed year-over-year?

For the three months ended June 30, 2025, Predictive Oncology Inc.'s net loss was $2,070,462, an improvement from a net loss of $3,181,261 in the same period of 2024. For the six months ended June 30, 2025, the net loss was $4,513,335, also an improvement from $7,400,104 in the prior year's six-month period.

What are the main risks for investors in Predictive Oncology Inc.?

The main risks for investors include the company's 'going concern' warning due to significant and recurring losses and insufficient capital, the ongoing threat of Nasdaq delisting for failing to meet minimum stockholders' equity and bid price requirements, and the uncertainty of securing additional financing on acceptable terms, which could lead to significant dilution or cessation of operations.

What is the significance of the discontinued Eagan operating segment for Predictive Oncology Inc.?

The discontinuation of the Eagan operating segment, which produced the FDA-cleared STREAMWAY System, means Predictive Oncology Inc. has divested a non-core asset and is now solely focused on its AI-driven oncology drug discovery business. This move aims to streamline operations but also removes a revenue source, as evidenced by the segment's $91,567 loss from discontinued operations in Q2 2025.

Risk Factors

Industry Context

Predictive Oncology operates in the highly competitive and rapidly evolving field of AI-driven cancer therapy discovery and development. This sector is characterized by significant R&D investment, long development cycles, and a high rate of scientific innovation. Companies in this space often face challenges in translating research into commercially viable products and securing substantial funding.

Regulatory Implications

The company faces significant regulatory risks related to its Nasdaq listing. Failure to regain compliance with minimum stockholders' equity and bid price requirements could lead to delisting, severely impacting liquidity and investor confidence. Furthermore, any future drug development or therapeutic applications would be subject to stringent FDA and other health authority regulations.

What Investors Should Do

  1. Monitor cash burn and future financing activities closely.
  2. Evaluate the strategic shift away from the Eagan segment.
  3. Assess the likelihood of regaining Nasdaq compliance.
  4. Scrutinize the revenue generation from the new AI strategy.

Key Dates

Glossary

Accumulated deficit
The total cumulative net losses of a company since its inception, minus any cumulative net income. (Indicates the company's historical unprofitability, with Predictive Oncology having an accumulated deficit of $184.94 million as of June 30, 2025.)
Going concern
A business's ability to continue operating for the foreseeable future without the threat of liquidation. (The company's recurring losses and low cash position raise substantial doubt about its ability to continue as a going concern.)
Discontinued operations
A component of a business that has been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations. (Predictive Oncology has discontinued its Eagan operating segment, impacting its asset and liability reporting.)
Additional paid-in capital
The amount of money a company receives from selling stock above its par value. (Shows the total capital raised from stock issuance, which is substantial at $183.2 million as of June 30, 2025, but offset by the large accumulated deficit.)
Common stock
Represents ownership in a corporation and is the most basic form of corporate ownership. (The number of outstanding common shares (9,596,737 as of June 30, 2025) is relevant for calculating EPS and potential dilution.)
Lease right-of-use assets
An asset representing a lessee's right to use an underlying leased asset for the lease term. (These assets, totaling $1.78 million, are a significant component of the company's assets, reflecting long-term lease commitments.)
Contract liabilities
Obligations to transfer goods or services to a customer for which the company has received consideration from the customer. (Represents deferred revenue, with $149,076 as of June 30, 2025, indicating future revenue to be recognized.)
Series B Convertible Preferred Stock
A class of preferred stock that can be converted into a specified number of common shares. (The outstanding shares of this preferred stock (79,246) could potentially dilute common shareholders if converted.)

Year-Over-Year Comparison

Compared to the prior year, Predictive Oncology Inc. has seen a significant reduction in its net loss for both the three-month period (from $3.18M to $2.07M) and the six-month period (from $7.40M to $4.51M) ended June 30, 2025. However, this improvement comes with a drastic decrease in quarterly revenue, which fell from $67,255 in Q2 2024 to just $2,682 in Q2 2025. While six-month revenue saw an increase to $112,992 from $72,113, the overall trend in quarterly revenue is concerning. New risks include the termination of the Renovaro merger and the discontinuation of the Eagan segment, alongside ongoing Nasdaq delisting concerns, which were not as prominent in the prior period.

Filing Stats: 4,372 words · 17 min read · ~15 pages · Grade level 16.8 · Accepted 2025-08-13 16:01:23

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 4 CONDENSED CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2025 AND DECEMBER 31, 2024 4 CONDENSED CONSOLIDATED STATEMENTS OF NET LOSS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 5 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ' EQUITY (DEFICIT) FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 6 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 8 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 9

MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 19

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 26

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 26

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 26

RISK FACTORS

ITEM 1A. RISK FACTORS 26

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 29

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 29

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 29

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 29

EXHIBITS

ITEM 6. EXHIBITS 29

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS PREDICTIVE ONCOLOGY INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 506,078 $ 611,822 Accounts receivable 22,957 34,154 Inventories 42,706 45,760 Prepaid expense and other assets 603,930 272,779 Current assets of discontinued operations 47,723 1,261,403 Total current assets 1,223,394 2,225,918 Property and equipment, net 284,654 347,588 Intangibles, net 48,667 50,955 Lease right-of-use assets 1,776,142 2,047,241 Other long-term assets 98,478 98,478 Non-current assets of discontinued operations 4,031 202,337 Total assets $ 3,435,366 $ 4,972,517 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 1,346,499 $ 1,044,394 Note payable 265,501 - Accrued expenses and other liabilities 1,139,294 1,236,378 Contract liabilities 149,076 224,076 Lease liability 602,865 555,169 Current liabilities of discontinued operations 342,204 533,384 Total current liabilities 3,845,439 3,593,401 Lease liability – net of current portion 1,243,327 1,558,239 Non-current liabilities of discontinued operations - 23,487 Total liabilities 5,088,766 5,175,127 Contingencies (see Note 7) Stockholders' deficit: Preferred stock, 20,000,000 shares authorized inclusive of designated below Series B Convertible Preferred Stock, $ .01 par value, 2,300,000 shares authorized, 79,246 shares outstanding as of June 30, 2025 and December 31, 2024 792 792 Common stock, $ .01 par value, 200,000,000 shares authorized, 9,596,737 and 6,666,993 shares outstanding as of June 30, 2025, and December 31, 2024, respectively 95,967 66,670 Additional paid-in capital 183,189,447 180,156,199 Accumulated deficit ( 184,939,606 ) ( 180,426,271 ) Total stockholders' deficit ( 1,653,400 ) ( 202,610 ) To

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