Lobe Sciences Reports FY2025 with a Stronger Balance Sheet and Sharpened Strategy

Executive Summary

• Lobe Sciences reported a substantial improvement in its balance sheet, with cash rising to $5.85 M (up from $0.24 M) and working capital turning positive at $5.16 M.
• The company disclosed a subsidiary‑level financing that raised $8.46 M for Cynaptec Pharmaceuticals at a $22.56 M post‑money valuation, preserving 64% ownership of the parent.
• Lobe highlighted progress on its two core programs (L‑130 for chronic cluster headache and S‑100 for sickle cell disease) and outlined a value‑creation strategy focused on disciplined financing and potential business development opportunities.

Key Details

• Cash Position: $5,854,118 as of Aug 31 2025 vs. $237,772 at Aug 31 2024.
• Working Capital: Surplus of $5,163,526 (vs. deficit of $2,008,849 in 2024).
• Convertible Notes: Current portion eliminated on Aug 31 2025 ($0 vs. $641,374 in 2024).
• Derivative Liability: Decreased to $205,105 from $603,724.
• Short‑Term Investments: $1,686,688 held as of Aug 31 2025 (none reported a year earlier).
• Loss per Share: $0.03 for FY2025 vs. $0.04 in FY2024.
• Net Loss to Parent: $4,861,611 for FY2025 (FY2024: $4,420,727).

Financing Activity

• Subsidiary‑level financing of Cynaptec Pharmaceuticals raised $8.46 M at a post‑money valuation of $22.56 M, maintaining Lobe’s 64% ownership stake.
• Rationale: limit dilution at the parent level and fund continued development of L‑130.

Program Updates

• Cynaptec Pharmaceuticals (64% owned):
• L‑130 – oral psilocin analog for chronic cluster headache; Phase 1a completed, pre‑IND FDA correspondence received.
• Additional strategic review for substance use disorder indications.
• Altemia, Inc.:
• S‑100 – early‑stage candidate for sickle cell disease using a lipid‑based DHA/EPA delivery platform.
• Limited commercialization activities for a proprietary medical food targeting nutritional deficiencies in sickle cell patients; reimbursement pathways under assessment.

Strategic Outlook

• FY2026 focus on strengthening corporate infrastructure, advancing core programs via milestone execution, and evaluating strategic opportunities aligned with shareholder interests.
• Execution dependent on market conditions, financing availability, and regulatory outcomes.

Notable Quotes

“Fiscal 2025 was about strengthening Lobe's balance sheet and funding our core assets responsibly… securing development capital while limiting dilution at Lobe, which we believe better aligns capital with asset value.” – Dr. Frederick D. Sancilio, Chairman & CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the release.