APUSMEDIUM SIGNALFINANCIAL10-Q

APUS showed meaningful improvement in quarterly losses and operating cash flow burn while accumulated deficit expanded to $9.2M amid continued business development spending.

The company reduced its quarterly net loss by about one-third compared to the prior quarter, suggesting better expense management or potentially seasonal revenue patterns. However, the nine-month accumulated loss of $4.8M demonstrates ongoing substantial cash consumption as this pharmaceutical company continues pre-revenue operations.

Comparing 2025-11-12 vs 2025-08-19View on EDGAR →
FINANCIAL ANALYSIS

APUS exhibited mixed financial trends with meaningfully reduced quarterly losses and substantially improved operating cash flow burn from -$263K to -$20K. However, the company consumed $1.7M in cash reserves, reducing its position from $8.7M to $7.0M, while total liabilities grew by 35% to $1.1M. The overall picture reflects a pre-revenue pharmaceutical company managing cash burn more effectively in the recent quarter while still facing significant ongoing operational losses and declining cash reserves.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+92.3%
-$263K→-$20K

Operating cash flow surged 92.3% — exceptional cash generation, highest quality earnings signal.

Total Liabilities
Balance Sheet
+34.7%
$809K→$1.1M

Liabilities grew 34.7% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Liabilities
Balance Sheet
+34.7%
$809K→$1.1M

Current liabilities surged 34.7% — significant near-term obligations; verify ability to meet short-term debt.

Net Income
P&L
+33.1%
-$2.7M→-$1.8M

Net income grew 33.1% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+30.8%
-$2.7M→-$1.8M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Cash & Equivalents
Balance Sheet
-20%
$8.7M→$7.0M

Cash decreased 20% — monitor burn rate and upcoming capital needs.

Stockholders Equity
Balance Sheet
-16.2%
$9.7M→$8.2M

Equity decreased 16.2% — buybacks or losses reducing book value, monitor solvency ratios.

Total Assets
Balance Sheet
-12.3%
$10.5M→$9.3M

Total assets contracted 12.3% — asset sales, write-downs, or balance sheet optimization underway.

Current Assets
Balance Sheet
-12.2%
$10.3M→$9.1M

Current assets declined 12.2% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2025-11-12
PRIOR — 2025-08-19
ADDED
6 Apimeds Pharmaceuticals US, Inc Notes to the Unaudited Condensed Financial Statements 1.
Liquidity As of September 30, 2025, the Company had an accumulated deficit of $ 9,237,769 .
The Company incurred net losses of $ 1,781,255 and $ 4,845,845 for the three and nine months ended September 30, 2025, respectively, and expects to continue to incur substantial losses in the future.
7 Apimeds Pharmaceuticals US, Inc Notes to the Unaudited Condensed Financial Statements Use of Estimates The preparation of financial statements in conformity with U.S.
Significant estimates and assumptions made in the accompanying unaudited condensed financial statements include, but are not limited to, the determination of prepaid clinical development costs, stock-based compensation and estimates that are related to convertible instruments.
Because the obligation to issue the Advisor Warrants became unconditional at the IPO close (May 12, 2025), the Company recorded a warrant liability at the IPO date fair value and remeasures that liability at each reporting date.
The warrant liability as of August 5 , 2025, was valued utilizing the Black-Scholes options pricing model with the following inputs: $ 1.78 of stock price, 3.74 % risk-free rate, 77.11 % volatility, 0 % dividend rate, and the expected term of 5 years.
Upon issuance of the advisor warrants on August 5, 2025, the Advisor Warrants were reclassified to additional paid-in capital and will remain equity classified.
Upon the issuance of the warrants on August 5, 2025, the final terms were evaluated, and the warrants met all conditions for equity classification under ASC 815-40.
As a result, the warrants were revalued as of August 5, 2025 with the change in value reflected in the statement of operations.
REMOVED
The information included in this Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in our 2024 Form 10-K.
Liquidity As of June 30, 2025, the Company had an accumulated deficit of $ 7,456,514 .
The Company incurred net losses of $ 2,662,193 and $ 3,064,590 for the three and six months ended June 30, 2025, respectively, and expects to continue to incur substantial losses in the future.
6 Use of Estimates The preparation of financial statements in conformity with U.S.
Significant estimates and assumptions made in the accompanying unaudited condensed financial statements include, but are not limited to, stock-based compensation and estimates that are related to convertible instruments.
The warrant liability as of June 30, 2025, was valued utilizing the Black-Scholes options pricing model with the following inputs: $ 1.76 of stock price, 3.79 % risk-free rate, 77.82 % volatility, 0 % dividend rate, and the expected term of 5 years.
Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in financial institutions which, at times, may exceed the federal depository insurance corporation limit of $ 250,000 .
Because the obligation to issue the Advisor Warrants became unconditional at the IPO close (May 12, 2025) and the warrants had not yet been issued as of June 30, 2025, the Company recorded a warrant liability at the IPO date fair value and remeasured that liability at June 30, 2025.
For the three and six months ended June 30, 2025, the Company recognized a gain of $ 9,518 in other income (expense) for the change in fair value.
Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are expensed as incurred due to the uncertainty about the recovery of the expenditure.
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