Amesite Inc. (AMST) - Q1 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the three-month period ended September 30, 2025. Amesite Inc. is a technology company developing AI-driven solutions for B2C and B2B markets, including a higher education platform and the NurseMagic healthcare app. The company is classified as a non-accelerated filer, a smaller reporting company, and an emerging growth company. As of October 24, 2025, there were 4,572,713 shares of common stock outstanding.
Key Financial Metrics
| Metric | Q1 2026 (Ended Sept 30, 2025) | Q1 2025 (Ended Sept 30, 2024) |
|---|---|---|
| Net Revenue | $94,296 | $11,250 |
| Net Loss | $(642,266) | $(908,045) |
| Loss Per Share (Basic/Diluted) | $(0.14) | $(0.34) |
| Operating Cash Flow | $(415,765) | $(488,263) |
| Cash and Cash Equivalents | $1,830,053 | $2,333,418 (Prior Period End) |
| Total Assets | $2,596,126 | $3,097,099 (Prior Period End) |
| Accumulated Deficit | $(42,092,853) | $(41,450,587) (Prior Period End) |
Revenue Mix (Q1 2026): Business (B2B) revenue accounted for 74% ($70,244), while Individual (B2C) revenue accounted for 26% ($24,052). In the prior year, 100% of revenue was B2B.
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased by approximately 738% year-over-year, driven by the introduction of B2C revenue streams and a broader client base.
- Expense Reduction: Total operating expenses decreased from $938,594 to $756,420. This reduction was achieved through lower payroll costs, reduced professional fees, and shifting marketing functions from external providers to internal staff.
- Improved Loss Profile: The net loss narrowed by approximately 29% compared to the prior year, reflecting the company's strategic pivot to reduce cash burn while growing the customer base.
- Capitalization: Capitalized software additions were $87,600 in the current quarter, down from $148,000 in the prior year.
Outlook, Risks, and Management Commentary
Strategic Pivot: Management has pivoted away from securing large academic customers due to administrative barriers and pricing challenges. The focus has shifted to the healthcare industry with the NurseMagic app, targeting markets with immediate performance and bottom-line impacts.
Going Concern Warning: The filing contains a significant "Going Concern" disclosure. Management has concluded that conditions raise substantial doubt about the company's ability to continue as a going concern for the next twelve months. While management plans to generate cash through financing transactions (e.g., common stock offerings), these plans are subject to market conditions and cannot be deemed probable.
Liquidity: As of September 30, 2025, the company held $1,930,053 in total cash, cash equivalents, and restricted cash. The majority of liquid assets are invested in a short-term US Treasury Fund.
Risks: Key risks include the inability to obtain additional funding, reliance on third-party partners, intellectual property challenges, and the general uncertainties of an early-stage company with a history of net losses.
Investor Verification Checklist
- Going Concern Status: Verify the company's immediate plans for raising capital to address the substantial doubt regarding its ability to continue operations for the next 12 months.
- Revenue Sustainability: Assess the durability of the new B2C revenue stream and the traction of the NurseMagic app in the healthcare sector.
- Cash Burn Rate: Monitor the monthly cash burn rate against current cash reserves ($1.83M) to estimate the runway without new financing.
- Customer Concentration: Note that while concentration has decreased, one customer still accounted for 12% of revenue in Q1 2026.
- Dilution Risk: Review the potential dilution from future equity offerings required to fund operations, given the lack of profitability.