Propanc Biopharma, Inc. — Form 10-K Summary
Business context and reporting period
Propanc Biopharma, Inc. is a development-stage biopharmaceutical company focused on PRP, an intravenous pancreatic proenzyme therapy intended to prevent recurrence and metastasis in solid tumors, initially targeting pancreatic, ovarian and colorectal cancers. The company had no commercial products or revenue during the fiscal year ended June 30, 2026 and operated as a single segment. Its principal operations are in Australia, with substantial research and development conducted in Europe.
PRP remains preclinical. The company is preparing a Clinical Trial Application for submission in the fourth quarter of calendar 2026 and plans to initiate a Phase Ib first-in-human study in Australia in the second quarter of calendar 2027, subject to regulatory approval and additional financing.
Financial performance and key metrics
| Metric | FY2026 | FY2025 |
|---|---|---|
| Revenue | $0 | $0 |
| Operating expenses | $18.2 million | $57.3 million |
| Net loss | $18.9 million | $58.9 million |
| Net loss available to common stockholders | $19.8 million | $58.9 million |
| Basic and diluted loss per share | $17.62 | $371.22 |
| Net cash used in operations | $5.7 million | $0.4 million |
| Net cash provided by financing | $6.5 million | $0.5 million |
| Cash at year-end | $0.8 million | $12,088 |
| Current liabilities | $3.4 million | $5.6 million |
| Total liabilities | $3.4 million | $5.7 million |
| Accumulated deficit | $144.5 million | $125.6 million |
Administration expense increased to $670,607 from $108,950, while research and development expense increased to $625,477 from $223,721. Compensation and related taxes declined to $2.3 million from $23.3 million, and professional and consulting expense declined to $14.6 million from $33.6 million. The changes were substantially affected by the prior-year and current-year issuance of stock for compensation and consulting services.
At June 30, 2026, reported assets included $832,006 of cash, $7.7 million of current prepaid expenses and $4.2 million of long-term prepaid expenses. The consolidated balance sheet reports total assets of $12,779,912, while the liquidity discussion states $12,799,912; the filing text does not explain this $20,000 discrepancy.
Material changes versus the prior comparable period
- Net loss improved by approximately $40.1 million, principally because FY2025 included approximately $21.3 million more stock-based compensation and approximately $21.2 million more stock-based consulting and legal expense.
- Operating cash use increased materially to $5.7 million from $0.4 million despite the lower reported net loss, reflecting higher cash operating expenditures and working-capital movements.
- The company raised approximately $3.3 million from common stock, $950,000 from Series C preferred stock, $3.0 million from Series C warrant exercises, $175,000 from notes and $78,249 from related-party loans.
- Convertible notes, notes payable and embedded conversion option liabilities were reported at zero at June 30, 2026, compared with $537,921, $543,312 and $403,892, respectively, at June 30, 2025. Related-party loans remained $460,809 and included $211,545 of principal and $59,658 of accrued interest in default.
- Common shares issued and outstanding increased from 464,471 at June 30, 2025 to 3,310,827 at June 30, 2026, with 487,939 additional shares classified as issuable. The company completed a 1-for-25 reverse stock split effective May 18, 2026, following a 1-for-60,000 reverse split effective January 29, 2025.
- Series C preferred stock conversions and debt conversions resulted in substantial equity issuance. The company also recorded a $932,246 deemed dividend related to Series C preferred stock.
Guidance, outlook, risks and unusual items
- Management expects to submit the PRP CTA in late calendar 2026, seek approval in early calendar 2027 and begin a Phase Ib study in the second quarter of calendar 2027. Estimated Phase Ib costs are approximately $6.5 million.
- Management expects to require additional financing for planned Phase Ib, Phase II and Phase III trials and working capital. The filing states that available cash is insufficient to meet obligations over the next 12 months.
- The independent auditor included a going-concern qualification. The company had no revenue, an $18.9 million net loss, $5.7 million of operating cash use and a $144.5 million accumulated deficit. Management’s ability to continue depends on additional debt or equity financing and successful development of PRP.
- Clinical, regulatory and commercialization risks remain substantial. PRP has not entered human clinical trials, has not been approved for marketing and may not demonstrate safety or efficacy or obtain regulatory approval.
- Management reported material weaknesses in internal control over financial reporting, including inadequate written control documentation and insufficient segregation of duties. Disclosure controls were deemed ineffective as of June 30, 2026.
- The company settled an investment-firm dispute for $75,000 in cash and $75,000 of common stock. It also paid $170,000 under a settlement with the underwriter of its 2025 offering.
- The company established a repurchase plan of up to $5.0 million, although no shares had been repurchased at fiscal year-end. Subsequent to year-end, it repurchased 320,031 shares for approximately $500,000.
- Subsequent events included issuance of 3.5 million shares for services valued at approximately $4.8 million, additional Series C conversions, approximately $2.0 million of Series C warrant exercise proceeds, and substantial additional common-stock issuance.
- The company reports 85 granted, allowed or accepted patents and four additional patent applications relating to PRP and proenzyme technology.
Most important facts for investors to verify
- Whether the company can raise sufficient capital to fund operations and the approximately $6.5 million Phase Ib study.
- The precise post-year-end common-share count, including Series C conversions, service awards, settlement shares, repurchases and other issuances.
- The terms, current status and default balances of related-party loans, particularly the $211,545 of principal and $59,658 of accrued interest identified as in default.
- Whether the planned CTA submission and Phase Ib start dates remain achievable and whether regulators accept the proposed clinical protocol.
- The potential dilution from Series C preferred stock, Series C warrants, common-stock warrants, convertible instruments and future equity financing.
- Management’s remediation of the material weaknesses in internal controls and the effect of those weaknesses on the reliability of future reporting.
- The legal and economic terms of the related-party transactions, executive compensation, prepaid consulting arrangements and share-based compensation.
- The distinction between the balance-sheet total assets of $12,779,912 and the $12,799,912 amount stated in the liquidity discussion.