Protagenic Therapeutics, Inc.

Protagenic Therapeutics, Inc. reported a net income of $2.2 million for Q3 2026 (period ending December 31, 2025), a significant improvement from a net loss of $850,287 in the prior year quarter. This profit was driven by a $3.1 million non-cash gain from the change in fair value of derivative liabilities, which offset an operating loss of $925K. Total operating expenses were $925K, with significant items including a $1.1M write-off of receivables and $246K in consulting fees. The company's cash position improved to $2.2M, a substantial increase from $15K at the beginning of the period, primarily due to $4.4M in net cash provided by financing activities from warrant exercises and note proceeds. However, the company reported a working capital deficit of $4.5M and an accumulated deficit of $9.1M, raising substantial doubt about its ability to continue as a going concern. A key subsequent event is the settlement and unwinding of the Phytanix Bio merger in February 2026.

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