Business Context and Reporting Period
Company: PharmaCyte Biotech, Inc. (PMCB)
Filing Type: Form 10-K (Annual Report)
Period Ended: April 30, 2026
Business Overview: A biotechnology company developing cellular therapies for cancer using proprietary "Cell-in-a-Box" technology. The primary focus is a product candidate (CypCaps) for locally advanced, inoperable, non-metastatic pancreatic cancer (LAPC).
Operational Status: The company has no commercial revenue. Operations are focused on addressing a clinical hold placed by the FDA on its Investigational New Drug (IND) application in October 2020. The Board has formed a Strategic Scientific Committee to review risks, including the expiration of licensed patents and reliance on third-party partner SG Austria for technology know-how. Spending on development programs has been curtailed pending this review.
Key Financial Metrics
| Metric | Fiscal Year 2026 | Fiscal Year 2025 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss (GAAP) | $(19,424,654) | $30,656,050 (Income) |
| Net Loss Attributable to Common Stockholders | $(23,206,372) | $23,362,107 (Income) |
| Operating Expenses | $6,853,713 | $4,377,862 |
| Cash and Cash Equivalents (Ending) | $18,603,899 | $15,172,163 |
| Working Capital | $36,594,130 | $19,460,954 |
| Accumulated Deficit | $(104,393,614) | $(84,968,960) |
Note: The 2025 net income was driven primarily by non-cash fair value gains on investments in Q/C Technologies, Inc. (QCLS) and changes in warrant liabilities. The 2026 net loss includes significant non-cash fair value losses on these same instruments and a full impairment of an intangible asset.
Material Changes vs. Prior Period
- Net Income to Net Loss: The company swung from a net income of ~$30.7 million in 2025 to a net loss of ~$19.4 million in 2026. This reversal is primarily due to a change in accounting estimate regarding the expected term to settlement of QCLS Series G Preferred Stock (resulting in a $1.9 million loss) and significant decreases in the fair value of QCLS investments and warrant assets.
- Intangible Asset Impairment: The company recorded a full impairment of $1,549,427 for its In-Process Research and Development (IPR&D) asset related to pancreatic cancer cells, concluding the asset had de minimis value to a buyer.
- Operating Expenses: Increased by ~$2.5 million to $6.9 million, driven by the intangible asset impairment, increased compensation expenses (RSUs), and higher legal/professional fees.
- Investment Activity: The company settled a $5 million convertible note receivable from Femasys, Inc. in cash. It also invested $3 million in QCLS Series H Preferred Stock and warrants.
- Financing: Raised $7 million in gross proceeds via a Series C Convertible Preferred Stock private placement in August 2025.
Guidance, Outlook, Risks, and Contingencies
- FDA Clinical Hold: The IND for the LAPC clinical trial remains on clinical hold since October 2020. The company is working to address FDA requests regarding sequencing data, stability studies, and manufacturing processes. There is no assurance the hold will be lifted or when.
- Liquidity: Management believes cash on hand (~$18.6 million) is sufficient to fund operations for at least the next 12 months. However, additional capital will be required to complete clinical trials, and future financing may be dilutive.
- Third-Party Dependence: The company relies exclusively on Austrianova (a subsidiary of SG Austria) for manufacturing. SG Austria has experienced supply chain delays and potential liquidity issues. All licensed patents for the core technology have expired, and know-how resides solely with SG Austria.
- Stock Listing Risks: The company received notice from Nasdaq regarding non-compliance with the minimum bid price requirement ($1.00). It has been granted an extension until November 30, 2026, to regain compliance. The Board has authorized a reverse stock split (ratio to be determined) to address this.
- Internal Controls: Management identified material weaknesses in internal controls over financial reporting, specifically regarding insufficient segregation of duties for the CFO and insufficient management review controls.
- Investment Volatility: A significant portion of the company's assets and earnings volatility is tied to investments in QCLS and Femasys, which are marked to market. Changes in fair value of these instruments significantly impact reported net income/loss.
Key Facts for Investor Verification
- Revenue Status: Verify that the company has zero revenue and remains in a pre-revenue development stage.
- FDA Status: Confirm the current status of the FDA clinical hold on the LAPC IND and the timeline for lifting it, as this is the primary blocker to clinical trials.
- Manufacturing Risk: Assess the financial health and operational capacity of Austrianova/SG Austria, the sole manufacturer, given reported liquidity issues and supply chain delays.
- Stock Listing: Monitor the company's progress in regaining Nasdaq compliance (minimum bid price) before the November 30, 2026 deadline, and the potential implementation of a reverse stock split.
- Investment Valuation: Scrutinize the fair value assumptions used for the QCLS and Femasys investments, as these drive the majority of the company's reported net income/loss volatility.
- Internal Controls: Review the remediation plan for the identified material weaknesses in internal controls over financial reporting.