Amesite Narrows Losses, Boosts Revenue Amid Going Concern Doubts

TL;DR

**AMST is burning cash and explicitly states 'substantial doubt' about its future, despite revenue growth – stay away until they secure funding.**

AI Summary

Amesite Inc. reported a net loss of $642,266 for the three months ended September 30, 2025, a significant improvement from the $908,045 net loss in the same period of 2024. Revenue saw a substantial increase, reaching $94,296 in Q1 2025, up from $11,250 in Q1 2024, driven primarily by a shift towards B2C sales which accounted for 26% ($24,052) of total revenue, compared to 0% in the prior year. B2B revenue also increased to $70,244 from $11,250. Operating expenses decreased by 19.4% to $756,420 from $938,594, with general and administrative expenses falling to $547,060 from $633,122. Despite these improvements, the company's cash and cash equivalents decreased from $2,333,418 at June 30, 2025, to $1,830,053 at September 30, 2025, and management expressed substantial doubt about its ability to continue as a going concern for the next twelve months without additional financing. Capitalized software, net, increased to $557,301 from $523,804, reflecting ongoing investment in its AI-driven solutions like NurseMagic.

Why It Matters

Amesite's significant revenue growth, particularly the emergence of B2C sales, suggests potential market traction for its AI-driven solutions like NurseMagic, which could be a positive signal for investors. However, the explicit 'going concern' warning from management, coupled with declining cash reserves, presents a critical challenge. For employees, this raises job security concerns, while customers might question the long-term viability of the company's platforms. In the competitive AI and healthcare tech space, Amesite's ability to secure additional financing will be crucial to sustain operations and compete with larger, more established players.

Risk Assessment

Risk Level: high — The company explicitly states, "management believes that it may not have sufficient cash and cash equivalents to maintain the Company's planned operations for the next twelve months following the issuance of these condensed financial statements." This, combined with a net decrease in cash, cash equivalents, and restricted cash of $503,365 for the three months ended September 30, 2025, and an accumulated deficit of $42,092,853, indicates a severe liquidity risk.

Analyst Insight

Investors should exercise extreme caution and avoid initiating new positions in AMST given the explicit going concern warning and current cash burn. Existing investors should closely monitor any announcements regarding financing transactions, as the company's survival hinges on securing additional capital.

Financial Highlights

debt To Equity

N/A

revenue

$94,296

operating Margin

-702.3%

total Assets

$2,596,126

total Debt

N/A

net Income

$(642,266)

eps

$(0.14)

gross Margin

N/A

cash Position

$1,830,053

revenue Growth

+738%

Revenue Breakdown

Key Numbers

• $94,296 — Net Revenue (Increased from $11,250 in Q1 2024, a 738% increase)
• $(642,266) — Net Loss (Improved from $(908,045) in Q1 2024, a 29.3% reduction)
• $1,830,053 — Cash and cash equivalents (Decreased from $2,333,418 at June 30, 2025)
• $42,092,853 — Accumulated deficit (Increased from $41,450,587 at June 30, 2025)
• $503,365 — Net decrease in cash, cash equivalents, and restricted cash (For the three months ended September 30, 2025)
• 26% — B2C Revenue Share (Increased from 0% in Q1 2024, indicating a new revenue stream)
• $557,301 — Capitalized software, net (Increased from $523,804 at June 30, 2025, showing continued investment)
• $756,420 — Total operating expenses (Decreased from $938,594 in Q1 2024, a 19.4% reduction)

Key Players & Entities

• Amesite Inc. (company) — registrant of the 10-Q filing
• NurseMagic (company) — Amesite's mobile healthcare app
• Nasdaq Stock Market LLC (regulator) — exchange where AMST common stock is registered
• SEC (regulator) — Securities and Exchange Commission
• FDIC (regulator) — Federal Deposit Insurance Corporation
• Jumpstart Our Business Startups Act (regulator) — JOBS Act

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: Management has expressed substantial doubt about Amesite Inc.'s ability to continue as a going concern for the next twelve months without additional financing. The company's cash and cash equivalents decreased by $503,365 to $1,830,053 as of September 30, 2025, from $2,333,418 at June 30, 2025.
• Accumulated Deficit [high — financial]: The company has an accumulated deficit of $42,092,853 as of September 30, 2025, which increased from $41,450,587 at June 30, 2025. This indicates a history of net losses and a significant negative equity position.
• Dependence on Technology Investment [medium — operational]: Amesite Inc. continues to invest heavily in its AI-driven solutions, with capitalized software increasing to $557,301 from $523,804. While this reflects product development, it also signifies ongoing expenditure required to maintain and enhance its offerings.
• Shift to B2C Revenue [medium — market]: The company's strategic shift towards B2C sales, which now constitute 26% of revenue ($24,052), represents a new and potentially volatile revenue stream. Success in this segment will be critical for future growth.
• High Operating Expenses Relative to Revenue [high — operational]: Despite a 19.4% reduction in total operating expenses to $756,420, these expenses remain significantly higher than the net revenue of $94,296 for the quarter. This highlights the challenge of achieving profitability.

Industry Context

Amesite Inc. operates in the competitive EdTech and AI solutions market. The industry is characterized by rapid technological advancements and a growing demand for personalized learning and workforce training solutions. Companies in this space often face challenges in scaling revenue to meet high development and marketing costs, with a trend towards hybrid B2B and B2C models.

Regulatory Implications

As a publicly traded company, Amesite Inc. is subject to SEC regulations and reporting requirements. The 'going concern' disclosure is a critical regulatory point that signals potential financial distress to investors and regulators, requiring careful monitoring and disclosure.

What Investors Should Do

1. Monitor cash burn rate closely: With cash decreasing by over $500,000 in the quarter and a going concern warning, investors should track cash runway and future financing needs.
2. Evaluate B2C strategy effectiveness: The success of the new B2C segment is crucial. Investors should look for continued growth and profitability in this area.
3. Assess operating expense control: While expenses decreased, they remain high relative to revenue. Investors should watch for further efficiencies and a path to profitability.
4. Analyze future funding plans: The company's ability to secure additional financing will be paramount to its survival and future operations.

Key Dates

• 2025-09-30: End of Q1 Fiscal Year 2025 — Reported net loss of $642,266 and revenue of $94,296, with cash and cash equivalents at $1,830,053.
• 2025-06-30: End of Fiscal Year 2025 — Cash and cash equivalents were $2,333,418, and accumulated deficit was $41,450,587.
• 2024-09-30: End of Q1 Fiscal Year 2024 — Reported net loss of $908,045 on revenue of $11,250, indicating significant year-over-year improvements in both metrics.

Glossary

Accumulated deficit

The total net losses of a company since its inception that have not been offset by net income. (Indicates the company's historical unprofitability, with a current deficit of $42,092,853.)

Capitalized software, net

Costs incurred in developing software that are capitalized rather than expensed, representing an investment in the company's technology assets. (Shows Amesite's ongoing investment in its AI-driven solutions, with the net value increasing to $557,301.)

Going concern

An assumption that a company will continue to operate for the foreseeable future, typically at least the next 12 months. (Management's doubt about this status highlights significant financial instability and the need for additional funding.)

B2C Revenue

Revenue generated from business-to-consumer sales, where a company sells products or services directly to individual customers. (Represents a new and growing revenue stream for Amesite, contributing $24,052 in Q1 2025.)

B2B Revenue

Revenue generated from business-to-business sales, where a company sells products or services to other businesses. (Remains the primary revenue source for Amesite, generating $70,244 in Q1 2025.)

Year-Over-Year Comparison

Compared to the prior year's comparable quarter, Amesite Inc. has demonstrated significant revenue growth, increasing from $11,250 to $94,296 (+738%). The net loss has also narrowed considerably, from $(908,045) to $(642,266), a 29.3% improvement. Operating expenses saw a substantial reduction of 19.4%. However, cash reserves have declined, and the company faces heightened going concern risks, alongside an increasing accumulated deficit.

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 AMST The Nasdaq Stock Market LLC Indi

Filing Documents

• ea0261871-10q_amesite.htm (10-Q) — 376KB
• ea026187101ex31-1_amesite.htm (EX-31.1) — 11KB
• ea026187101ex31-2_amesite.htm (EX-31.2) — 10KB
• ea026187101ex32-1_amesite.htm (EX-32.1) — 4KB
• ea026187101ex32-2_amesite.htm (EX-32.2) — 4KB
• image_001.jpg (GRAPHIC) — 11KB
• 0001213900-25-102257.txt ( ) — 3014KB
• amst-20250930.xsd (EX-101.SCH) — 27KB
• amst-20250930_cal.xml (EX-101.CAL) — 21KB
• amst-20250930_def.xml (EX-101.DEF) — 125KB
• amst-20250930_lab.xml (EX-101.LAB) — 265KB
• amst-20250930_pre.xml (EX-101.PRE) — 138KB
• ea0261871-10q_amesite_htm.xml (XML) — 306KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 1

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 14

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 18

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 18

- OTHER INFORMATION

PART II - OTHER INFORMATION 19

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 19

RISK FACTORS

ITEM 1A. RISK FACTORS 19

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 19

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 19

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 19

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 19

EXHIBITS

ITEM 6. EXHIBITS 20

SIGNATURES

SIGNATURES 21 -i- CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements," which include information relating to future events, future financial performance, financial projections, strategies, expectations, competitive environment and regulation. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of when such performance or results will be achieved. Forward-looking statements are based on information we have when those statements are made or management's good faith belief as of that time with respect to future events, and are subject to a number of risks, and uncertainties and assumptions that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks are more fully described in the "Risk Factors" section of this Annual Report on Form 10-K. Amesite, Inc.'s suite of assets is collectively referred to as our "Site." Our Site includes all of our products and services and all of the technology and business services that create them, in part or whole: a blend of software, hardware, content, and technology that includes everything from behind-the-scenes processes to the user interface, our website, data handling, communication, and advanced analytics. The NurseMagic website available at https://www.nursemagic.ai, and/or our mobile app available at https://app.nursemagic.ai, NurseMagic is a product owned and operated by Amesite, Inc. ("Amesite," "we," "our," or "us"). The following is a summary of risks related to our Site: our planned expansions and improvements

forward-looking statements for any reason, even if new information becomes available in the future

forward-looking statements for any reason, even if new information becomes available in the future. This Quarterly Report on Form 10-Q also contains, or may contain, estimates, projections and other information concerning our industry, our business and the markets for our products, including data regarding the estimated size of those markets and their projected growth rates. Information that is based on estimates, forecasts, projections or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained these industry, business, market and other data from reports, research surveys, studies and similar data prepared by third parties, industry and general publications, government data and similar sources. In some cases, we do not expressly refer to the sources from which these data are derived. -ii-

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Amesite Inc. Condensed Financial Statements September 30, 2025 -1- Amesite Inc. Contents Condensed Financial Statements Page Condensed Balance Sheets (unaudited) 3 Condensed Statements of Operations (unaudited) 4 Condensed Statements of Stockholders' Equity (unaudited) 5 Condensed Statements of Cash Flows (unaudited) 6 Notes to Condensed Financial Statements 7 -2- Amesite Inc. Condensed Balance Sheets September 30, 2025 June 30, 2025 Assets (Unaudited) (Audited) Current Assets Cash and cash equivalents $ 1,830,053 $ 2,333,418 Accounts receivable 10,344 6,341 Prepaid expenses and other current assets 65,329 94,100 Total current assets 1,905,726 2,433,859 Noncurrent Assets Restricted cash 100,000 100,000 Property and equipment, net of accumulated depreciation of $ 149,244 and $ 142,907 , respectively 33,099 39,436 Capitalized software, net of accumulated amortization of $ 3,811,421 and $ 3,757,318 , respectively 557,301 523,804 Total noncurrent assets 690,400 663,240 Total assets $ 2,596,126 $ 3,097,099 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 19,362 $ 25,413 Accrued compensation 377,056 243,198 Deferred revenue 24,655 36,745 Other accrued liabilities 6,564 53,240 Total current liabilities 427,637 358,596 Stockholders' Equity Common stock, $ .0001 par value; 100,000,000 shares authorized; 4,572,713 and 4,572,713 shares issued and outstanding at September 30, 2025 and June 30, 2025, respectively. 458 458 Preferred stock, $ .0001 par value; 5,000,000 shares authorized; no shares issued and outstanding at September 30, 2025 and June 30, 2025 - - Additional paid-in capital 44,260,884 44,188,632 Accumulated deficit ( 42,092,853 ) ( 41,450,587 ) Total stockholders' equity 2,168,489 2,738,503 Total liabilities and stockholders' equity $ 2,596,126 $ 3,097,099 See accompanying No