AGPU · Predictive Oncology Inc.

Predictive Oncology Inc. reported a significantly wider net loss of -$7.7 million in Q1 FY2026, compared to -$2.4 million in the prior year quarter, a -215.6% year-over-year change. This deterioration stems from heightened operating costs during a pivotal executive transition and the ramp-up of the Company's Treasury Strategy, which directs substantial balance sheet resources toward holding ATH tokens.

Management commentary in Item 2 highlights that the net loss expansion was primarily due to severance expense for the prior CEO, alongside payroll increases from salary adjustments for existing employees and elevated stock-based compensation in the three months ended March 31, 2026. These leadership changes coincide with strategic shifts away from legacy Drug Discovery Services, where activity levels declined, mirroring reduced revenues and costs in that segment.

Cash flow dynamics reflect this transition, with operating cash usage rising due to increased working capital demands and higher cash operating expenses. The latter primarily arose from professional services adopted under the Treasury Strategy, including asset management and accounting advisory fees. Capital expenditures marked a modest start at $21K, the first such activity versus zero in Q1 2025, likely tied to enabling these initiatives.

Looking ahead, operating losses are expected to continue in the near term as the Company scales its AI compute and Treasury Strategy efforts. This pivot underscores a deliberate reallocation of resources from traditional oncology services toward crypto asset management, positioning the balance sheet for potential upside in ATH while contending with near-term expense pressures and market risks.