Nutriband Inc. (NTRB) 10-K Summary
Business Context and Reporting Period
Company: Nutriband Inc.
Filing Type: Form 10-K (Annual Report)
Fiscal Year Ended: January 31, 2026
Business Overview: Nutriband is a clinical-stage biopharmaceutical company focused on developing a portfolio of transdermal pharmaceutical products. Its primary asset is the AVERSA™ abuse-deterrent transdermal technology, designed to prevent the abuse and misuse of opioid and stimulant drugs. The company operates through two main subsidiaries: 4P Therapeutics (R&D) and Pocono Pharmaceuticals (contract manufacturing and services).
Key Financial Metrics
| Metric | Year Ended Jan 31, 2026 | Year Ended Jan 31, 2025 |
|---|---|---|
| Revenue | $2,036,651 | $2,139,537 |
| Gross Profit | $566,308 | $743,317 |
| Gross Margin | 27.8% | 34.8% |
| Net Loss | $(8,229,632) | $(10,482,617) |
| Net Loss Available to Common Shareholders | $(30,043,798) | $(10,482,617) |
| Diluted EPS | $(2.58) | $(0.99) |
| Cash and Cash Equivalents (End of Period) | $4,574,857 | $4,311,719 |
| Working Capital | $4,204,437 | $3,811,420 |
| Total Debt (Notes Payable) | $164,732 | $186,349 |
Note: The significant increase in Net Loss Available to Common Shareholders in 2026 is primarily due to a non-cash preferred stock dividend of $21,814,166 issued in July 2025.
Material Changes vs. Prior Period
- Revenue Decline: Revenue decreased by approximately 4.8% to $2.04 million. This was driven by the cessation of contract research and development services from the 4P Therapeutics segment, which generated zero revenue in 2026 compared to prior periods. Revenue from the Pocono Pharmaceuticals segment remained relatively constant.
- Gross Margin Compression: Gross profit declined to $566,308 (27.8% margin) from $743,317 (34.8% margin), attributed to lower margins on tape sales.
- Expense Fluctuations:
- SG&A: Increased significantly to $6.99 million from $4.31 million, primarily due to higher equity-based compensation expenses.
- R&D: Decreased to $1.89 million from $3.12 million, driven by a reduction in labor costs.
- Impairment: The $3.6 million goodwill and intangible impairment charge recorded in 2025 did not recur in 2026.
- Capital Structure: The company issued 3,008,643 shares of Series A Convertible Preferred Stock as a dividend to common shareholders in July 2025. Financing activities provided $5.4 million in cash, primarily from the exercise of warrants.
Guidance, Outlook, and Risks
Product Development & Outlook:
- AVERSA™ Fentanyl: The lead product is in clinical development. In September 2025, the company held a Type C meeting with the FDA to discuss Chemistry, Manufacturing, and Controls (CMC) plans. The company is moving forward with an IND filing to support a Human Abuse Potential (HAP) clinical study.
- Partnership: An amended agreement with Kindeva Drug Delivery formalizes an exclusive partnership. Remaining development costs through NDA submission are estimated at $2.5 million, with a $3.0 million milestone payment due upon FDA approval.
- Market Potential: Health Advances estimates peak annual US sales of $80-200 million for AVERSA Fentanyl and $70-130 million for AVERSA Buprenorphine.
Risks and Contingencies:
- Going Concern: While management believes current cash ($4.57 million) and working capital are sufficient for the next 12 months, the company has a history of operating losses and relies on equity financing.
- Internal Controls: The company disclosed material weaknesses in internal controls over financial reporting, citing a lack of segregation of duties and reliance on third-party consultants.
- Legal Proceedings: The company is a defendant in a lawsuit by Joseph Gunnar, LLC and Lucosky Brookman LLP seeking over $500,000 in damages regarding a terminated engagement letter. The company has filed counterclaims seeking $2 million.
- Subsequent Event: In February 2026, the company terminated an agreement to sell its subsidiary, Pocono Pharmaceuticals, to Earth Vision Bio Inc., due to the purchaser's failure to close and pay late fees.
Investor Verification Checklist
- Cash Runway: Verify if the $4.57 million cash balance is sufficient to fund the remaining $2.5 million Kindeva development costs plus general operating expenses for the next 12-18 months without further dilution.
- Preferred Stock Conversion: Review the terms of the Series A Convertible Preferred Stock dividend to understand the potential dilution impact upon FDA approval of AVERSA products.
- Internal Control Remediation: Assess the specific steps management is taking to address the material weaknesses in internal controls over financial reporting.
- Legal Exposure: Monitor the status of the Gunnar/LB lawsuit and the potential financial impact of the counterclaims.
- Pocono Sale Termination: Confirm the financial impact of the failed sale of Pocono Pharmaceuticals and whether the $30,000 in late fees received was the only financial recovery.