Amesite Inc. (AMST) - 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended December 31, 2025. Amesite Inc. is a technology company developing AI-driven solutions, primarily focusing on its healthcare application, NurseMagic™, which streamlines nursing documentation and patient care. The company is classified as a smaller reporting company and an emerging growth company. As of February 5, 2026, there were 4,572,713 shares of common stock outstanding.
Key Financial Metrics
| Metric | Three Months Ended Dec 31, 2025 | Six Months Ended Dec 31, 2025 |
|---|---|---|
| Net Revenue | $108,050 | $202,346 |
| Net Loss | $(732,548) | $(1,374,814) |
| Loss Per Share (Basic & Diluted) | $(0.16) | $(0.30) |
| Cash and Cash Equivalents | $1,165,369 | $1,165,369 (Balance Sheet) |
| Total Cash, Equivalents & Restricted Cash | $1,265,369 (End of Period) | |
| Stockholders' Equity | $1,508,193 | |
| Accumulated Deficit | $(42,825,401) | |
| Operating Cash Flow (6 Months) | $(1,036,849) |
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased significantly compared to the prior year. For the six months ended December 31, 2025, revenue was $202,346, compared to $24,010 in the same period in 2024. This represents a 742% increase.
- Expense Reduction: Total operating expenses decreased to $1,609,723 for the six months ended December 31, 2025, down from $2,082,223 in the prior year period. This reduction was driven by lower payroll costs, reduced stock-based compensation (due to a smaller Board), and shifting marketing functions in-house.
- Improved Loss Position: The net loss for the six months ended December 31, 2025, was $1,374,814, a reduction from the $2,029,682 loss recorded in the same period in 2024.
- Customer Concentration: Customer concentration risk decreased. In the six months ended December 31, 2024, one customer accounted for 95% of revenue. In the current period, the largest customer accounted for only 11% of revenue.
Outlook, Risks, and Management Commentary
- Going Concern Warning: Management has concluded that there is substantial doubt about the company's ability to continue as a going concern. Current forecasts suggest cash may not be sufficient to maintain operations for the next twelve months. The company plans to raise additional capital through equity offerings, but success is not guaranteed.
- Nasdaq Compliance: On October 28, 2025, the company received a deficiency letter from Nasdaq for failing to meet the $2.5 million stockholders' equity requirement. The company submitted a compliance plan and was granted an extension until April 27, 2026, to regain compliance. Failure to comply could result in delisting.
- Strategic Pivot: Management has pivoted away from struggling academic customers toward the healthcare industry with the NurseMagic™ app. The strategy focuses on affordable AI tools that provide immediate ROI to customers.
- Liquidity: As of December 31, 2025, the company held approximately $970,000 in a short-term US Treasury Fund. The company has no long-term debt but relies on cash reserves and potential future financing.
Investor Verification Checklist
- Going Concern Status: Verify the company's ability to secure financing before cash reserves are depleted, given the explicit "substantial doubt" disclosure.
- Nasdaq Compliance Plan: Monitor the company's progress toward regaining compliance with Nasdaq listing standards by the April 27, 2026 deadline.
- Revenue Sustainability: Assess whether the recent revenue growth is sustainable and if the pivot to healthcare customers will continue to reduce reliance on single large clients.
- Cash Burn Rate: Review the operating cash burn of approximately $1.04 million over six months against current cash balances to estimate runway.
- Stock-Based Compensation: Note that stock-based compensation remains a significant non-cash expense ($144,504 for six months) and monitor future dilution from equity grants.