Protagenic Therapeutics Swings to $2.2M Q3 Profit After Nine-Month Loss Widens

Protagenic Therapeutics, Inc., a clinical-stage biopharmaceutical company, reported net income of $2.21 million for the three months ended December 31, 2025, a sharp reversal from a net loss of $850,287 in the same quarter a year earlier. The swing to profitability came despite the company reporting no revenue for the period. Read more earnings reports.

For the nine months ended December 31, 2025, Protagenic posted a net loss of $3.72 million, more than double the $1.76 million loss recorded in the first nine months of fiscal 2024. Operating expenses for the nine-month period surged to $4.38 million from $1.08 million a year earlier, a 306% increase.

Operating Expenses Rise as Revenue Remains Zero

Operating expenses in the December quarter totaled $925,103, up 130% from $401,401 in the prior-year quarter. Research and development spending increased to $153,786 from $134,580 in the year-ago period. The company reported no revenue for the three-month or nine-month periods ending December 31, 2025.

The quarterly profit in the December period appears to reflect non-operating gains not detailed in the operating results. Operating loss for the quarter was $925,103, yet net income reached $2.21 million, suggesting gains of approximately $3.14 million from non-operating items.

Cash Position Strengthens as Liabilities Climb

Protagenic held $2.21 million in cash and restricted cash as of December 31, 2025, up sharply from $79,568 at December 31, 2024, and $14,531 at March 31, 2025. The company raised $4.41 million from financing activities during the nine-month period, while using $3.07 million in operations.

Total liabilities increased to $6.82 million at December 31, 2025, from $5.04 million at March 31, 2025. Accounts payable more than doubled to $2.03 million from $961,117 over the same span. All liabilities are classified as current.

Stockholders' Deficit Narrows

The company's stockholders' deficit narrowed to $2.39 million at December 31, 2025, from $4.95 million at the start of the fiscal year on March 31, 2025. The improvement reflects the nine-month net loss of $3.72 million offset by a $6.49 million increase in additional paid-in capital, which rose to $6.94 million from $455,657.

Accumulated deficit stood at $9.11 million as of December 31, 2025. Total assets grew to $4.43 million from $89,093 at fiscal year-end March 31, 2025, driven primarily by the increase in cash and the addition of $2.09 million in intangible assets.

Per-Share Results and Share Count

Basic and diluted earnings per share for the December quarter were $1.14, compared to a loss of $0.16 per share a year earlier. For the nine-month period, the company reported a loss of $1.50 per share versus a $0.33 loss in the prior year. Weighted average shares outstanding for the nine months fell to 2.48 million from 5.40 million in the year-ago period.

Common shares outstanding totaled 1.93 million at December 31, 2025, down from 5.80 million at March 31, 2025.

Financial Summary