Business Context and Reporting Period
Company: Apimeds Pharmaceuticals US, Inc. (APUS)
Filing Type: Form 10-Q (Unaudited)
Period Ended: June 30, 2026
Business Model: The Company operates two segments: the "BioBusiness" (clinical-stage pharmaceutical development of APITOX via subsidiary Lokahi Therapeutics) and the "Digital Asset" segment (holding and trading Bitcoin, Tether, and NILA tokens via subsidiary MindWave Innovations, acquired Dec 2025).
Corporate Actions: A 1-for-10 reverse stock split was effected on July 24, 2026; all share data in this filing is retroactively adjusted. The Company is an Emerging Growth Company and Smaller Reporting Company.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Three Months Ended June 30, 2026 | As of June 30, 2026 |
|---|---|---|---|
| Revenue | $0 | $0 | N/A |
| Net Loss | $(55,232,982) | $(20,173,129) | N/A |
| Loss Per Share (Basic/Diluted) | $(33.83) | $(11.77) | N/A |
| Cash & Cash Equivalents | N/A | N/A | $278,371 |
| Restricted Cash | N/A | N/A | $8,000,000 |
| Digital Assets (Fair Value) | N/A | N/A | $116,737,168 |
| Total Assets | N/A | N/A | $127,623,697 |
| Total Liabilities | N/A | N/A | $21,175,156 |
| Accumulated Deficit | N/A | N/A | $(65,626,043) |
| Operating Cash Flow | $(7,734,893) | N/A | N/A |
Note: The Company has no revenue from external customers. Digital assets represent 89% of total assets.
Material Changes vs. Prior Period
- Net Loss Expansion: Net loss for the six months ended June 30, 2026, was $55.2 million, compared to $3.1 million for the same period in 2025. This increase is primarily driven by a $35.3 million unrealized loss on digital assets and increased interest expense ($4.1 million vs. $61k).
- Operating Expenses: Total operating expenses rose to $18.5 million (six months 2026) from $3.0 million (six months 2025). Increases include $8.1 million in non-cash advisory share compensation and $1.3 million in settlement-related legal fees.
- Digital Asset Valuation: The fair value of digital assets decreased from $149.9 million (Dec 31, 2025) to $116.7 million (June 30, 2026), largely due to price declines in Bitcoin and NILA tokens.
- Debt Structure: The Company incurred $6.0 million in new short-term notes payable during the period. A senior secured convertible note of $10.9 million remains outstanding.
Outlook, Risks, and Contingencies
- Going Concern: Management has raised substantial doubt about the Company's ability to continue as a going concern. This is due to recurring losses, negative operating cash flows, and the expiration of a forbearance agreement on the senior secured convertible note as of June 30, 2026.
- Liquidity Constraints: Cash and cash equivalents are only $278,371. An additional $8.0 million in restricted cash is held in a control arrangement for the benefit of the convertible note holder and is not available for general operations.
- Debt Maturities: Short-term notes payable totaling $5.0 million matured on July 1, 2026. The Company is in discussions regarding repayment or extension. The senior secured convertible note forbearance expired June 30, 2026, with no extension reported as of the filing date.
- Settlement Agreement: A settlement with Inscobee Inc. and Apimeds Inc. (Korea) requires the distribution of 51% of Lokahi Therapeutics equity. As of June 30, 2026, this distribution had not been effected, though a subsequent event (July 14, 2026) indicates Lokahi became a subsidiary of Glucotrack, Inc.
- Listing Compliance: The Company is not in compliance with NYSE American listing standards due to late filings. Trading resumed under symbol "APUS.LF" pending regained compliance.
- Internal Controls: Disclosure controls and procedures were deemed ineffective due to material weaknesses in accounting personnel, journal entry reviews, and controls over complex transactions (digital assets, derivatives).
Investor Verification Checklist
- Debt Resolution: Verify the status of the $5.0 million notes payable maturing July 1, 2026, and the $10.9 million senior secured convertible note following the expiration of the forbearance period.
- Liquidity Runway: Assess the sufficiency of the $278k unrestricted cash balance against operating burn rates and upcoming debt obligations.
- Digital Asset Exposure: Confirm the valuation methodology and liquidity of the $116.7 million digital asset portfolio, specifically the NILA token (Level 2 asset) which comprises 43% of holdings.
- Spin-off Status: Monitor the completion of the Lokahi Therapeutics equity distribution and the subsequent deconsolidation of the BioBusiness segment.
- Listing Status: Track progress toward regaining full compliance with NYSE American listing standards to avoid delisting.