Pluri Inc. (PLUR) - Q3 2025 10-Q Summary
Business Context and Reporting Period
This summary covers Pluri Inc.'s unaudited interim condensed consolidated financial statements for the quarterly and nine-month periods ended March 31, 2025. Pluri is a biotechnology company operating in regenerative medicine, immunotherapy, food technology, and agricultural technology (agtech). The company utilizes a proprietary 3D cell expansion platform and operates a Contract Development and Manufacturing Organization (CDMO) business. The company is a smaller reporting company and a non-accelerated filer.
Key Financial Metrics
| Metric (in thousands, except per share) | 9 Months Ended Mar 31, 2025 | 9 Months Ended Mar 31, 2024 | 3 Months Ended Mar 31, 2025 | 3 Months Ended Mar 31, 2024 |
|---|---|---|---|---|
| Revenues | $938 | $230 | $427 | $71 |
| Cost of Revenues | $(491) | $- | $(291) | $- |
| Gross Profit | $447 | $230 | $136 | $71 |
| Net Loss (Total) | $(15,481) | $(15,482) | $(6,335) | $(5,390) |
| Net Loss Attributable to Shareholders | $(14,985) | $(15,159) | $(6,147) | $(5,293) |
| Net Loss Per Share (Basic & Diluted) | $(2.56) | $(2.92) | $(0.94) | $(1.01) |
| Cash & Cash Equivalents (End of Period) | $8,499 | $7,081 | $8,499 | $7,081 |
| Total Cash & Deposits (End of Period) | $27,466 | $27,466 | $27,466 | $27,466 |
| Net Cash Used in Operating Activities | $(12,995) | $(13,708) | N/A | N/A |
| Net Cash Provided by Financing Activities | $9,968 | $- | N/A | N/A |
| Long-Term Debt (EIB Loan) | $24,948 | $24,027 | $24,948 | $24,027 |
Note: All financial figures are in U.S. Dollars in thousands unless otherwise noted. The filing text does not provide a clear value for quarterly cash flow from operations, only the nine-month figure.
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased significantly to $938,000 for the nine months ended March 31, 2025, compared to $230,000 in the prior year period. This growth is attributed to the launch of the CDMO business and increased activity in agtech collaborations.
- Cost of Revenues: The company recorded $491,000 in cost of revenues for the nine months ended March 31, 2025, whereas there were no costs of revenues in the comparable prior period. This reflects the commercialization of CDMO and agtech services.
- Operating Expenses: Net R&D expenses decreased slightly by 2% to $8.86 million (nine months), driven by reduced clinical study costs, partially offset by increased subcontractor activity. G&A expenses decreased by 2% to $7.15 million, primarily due to reduced share-based compensation, partially offset by reinstated CEO salary and bonuses.
- Financing Activity: The company raised approximately $10 million in gross proceeds during the nine-month period through private placements (Offering and Second Offering) and an Open Market Sales Agreement, compared to no financing activity in the prior year period.
- Equity Position: Total shareholders' equity moved from a surplus of $96,000 as of June 30, 2024, to a deficit of $(4,474,000) as of March 31, 2025, due to the accumulated net loss.
Guidance, Outlook, Risks, and Unusual Items
- Outlook: Management believes current resources are sufficient to meet obligations for at least the next twelve months. The company does not anticipate significant revenue from product sales in the near term but expects revenue from CDMO services and collaborations. Additional funding will likely be necessary beyond the 12-month horizon.
- Nasdaq Compliance: The company received a deficiency letter in November 2024 regarding minimum shareholders' equity. However, on May 7, 2025 (subsequent to the balance sheet date), Nasdaq determined the company regained compliance based on the market value of listed securities exceeding $35 million for 10 consecutive business days.
- EIB Loan Restructuring: The company is in advanced discussions with the European Investment Bank (EIB) regarding the restructuring of a €20 million loan (approx. $24.9 million principal and accrued interest) due June 1, 2026. Discussions focus on extending the maturity date. Finalization is expected by June 2025, but there is no certainty of success.
- NIAID Contract Termination: On April 15, 2025 (subsequent to period end), the U.S. National Institute of Allergy and Infectious Diseases (NIAID) terminated a $4.2 million contract for convenience. The company had received approximately $2.16 million prior to termination.
- Acquisition: On April 28, 2025 (subsequent to period end), the company completed the acquisition of approximately 71% of Kokomodo Ltd., an agtech company specializing in cultivated cacao, for $4.5 million in common shares.
- Risks: Key risks include the ongoing armed conflict in Israel affecting operations in Haifa, potential failure to secure EIB loan restructuring, and the need for additional capital to sustain operations and R&D.
Investor Verification Checklist
- EIB Loan Status: Verify the outcome of the restructuring discussions with the European Investment Bank, as the loan matures in June 2026 and represents a significant liability.
- Nasdaq Listing Status: Confirm continued compliance with Nasdaq listing requirements, specifically the market value of listed securities standard, following the recent deficiency notice.
- Capital Sufficiency: Assess the company's burn rate against current cash reserves ($27.5 million total cash/deposits) to validate the 12-month runway claim.
- Revenue Sustainability: Evaluate the durability of the revenue growth from CDMO and agtech sectors, given the termination of the NIAID contract.
- Subsequent Events: Review the impact of the Kokomodo acquisition and the NIAID contract termination on future financial projections.