RGC · Regencell Bioscience Holdings Limited

Regencell Bioscience Holdings Limited, an early-stage bioscience company focused on Traditional Chinese Medicine for ADHD and Autism Spectrum Disorder, reported significantly wider losses for the six months ended December 31, 2025. Total operating expenses surged 170% to $5.34 million from $1.98 million in the prior year period, driven primarily by a 236% increase in general and administrative expenses to $4.92 million. This was attributed to $1.63 million in share-based compensation for G&A personnel (up from $0.22 million) and $2.3 million in elevated professional fees related to investigation matters, partially offset by reductions in rental, payroll, and travel expenses. Selling and marketing expenses declined 67% to $2,454 due to lower digital marketing activities, while R&D expenses fell 18% to $416,030, reflecting reduced share-based compensation. Other income, net dropped to $22,475 from $124,222, mainly from lower interest income. Consequently, net loss expanded 187% to $5.32 million, or 1.08 cents per share (post 38-for-1 split), from $1.85 million or 0.37 cents per share. Balance sheet shows total assets contracting to $3.01 million from $5.76 million at June 30, 2025, with cash stable at $2.36 million after $2.59 million used in operations offset by short-term investment maturities. Shareholders’ equity declined to $1.22 million amid the $30.52 million accumulated deficit. Management highlights substantial going concern doubt, citing ongoing losses and cash burn, with plans to pursue cost savings and financing. Additionally, a April 24, 2026 class action in U.S. District Court for Maryland alleges Exchange Act violations tied to share volatility; the Company deems claims meritless and plans to defend vigorously, with no loss provision recorded.