Lobe Sciences Ltd. Reports Fiscal 2025 Results and Highlights Strategic Transformation Following Leadership Transition

Overview

Lobe Sciences Ltd., a biopharmaceutical company advancing programs in diseases with unmet medical needs, reported audited financial results for the fiscal year ended August 31, 2025 and provided an update on operational progress achieved since the company's leadership transition and Board renewal beginning in late 2024. The company significantly strengthened its balance sheet during FY2025, with cash increasing to $5.85 million from $237,772 the prior year and working capital improving to a surplus of $5.16 million compared to a deficit of $2.01 million. The company is advancing two strategic development programs through subsidiaries: L-130 (psilocin mucate) for chronic cluster headache through Cynaptec Pharmaceuticals, and S-100 for sickle cell disease through Altemia, Inc.

Key Highlights

Financial:

• Cash increased to $5,854,118 as of August 31, 2025, compared to $237,772 on August 31, 2024.
• Short-term investments of $1,686,688 held as of August 31, 2025 (none reported prior year).
• Working capital improved to a surplus of $5,163,526, compared to a deficit of $2,008,849 on August 31, 2024.
• Convertible notes (current portion) decreased to $nil from $641,374.
• Net loss attributed to parent company of $4,861,611 (FY2024: $4,420,727).
• Loss per share of $0.03 for FY2025, compared to $0.04 for FY2024.

Strategic:

• L-130 program transferred to subsidiary Cynaptec Pharmaceuticals, Inc.
• Cynaptec completed $8,460,000 financing at a post-money valuation of $22,560,000.
• Lobe retained 64% ownership interest in Cynaptec following the financing.
• Phase 1a study in healthy volunteers and supporting preclinical work completed internationally for L-130.
• Development plan advancing in line with US FDA guidance received in Pre-IND correspondence.

Strategic & Operational Context

Following its leadership transition and Board renewal in late 2024, Lobe undertook an operational and financial stabilization program designed to improve corporate governance, strengthen disclosure practices, reduce legacy balance-sheet complexity, and position the company to pursue value-accretive transactions.

During FY2025, the company's market capitalization remained below $5,000,000, making parent-level capital raises challenging without significant dilution. In response, management transferred the L-130 program to subsidiary Cynaptec and completed a financing at the subsidiary level, preserving shareholder participation at the parent level while funding development.

"During fiscal 2025, our focus was on strengthening the Company's financial position, reducing legacy liabilities, and ensuring that our core assets were funded in a manner that preserved long-term shareholder participation," said Dr. Frederick D. Sancilio, Chairman and CEO. "By advancing L-130 through Cynaptec Pharmaceuticals and completing financing at the subsidiary level, we were able to secure capital for development while minimizing dilution at Lobe."

Product Development Overview

Cynaptec Pharmaceuticals, Inc. (64% owned by Lobe) – L-130

L-130 is a novel, patented, oral, stable analog of psilocin, the active metabolite of psilocybin, designed to enhance bioavailability and therapeutic efficacy. The lead indication is chronic cluster headache, a neurological condition with limited treatment options and significant unmet clinical need. Additional indications under evaluation include substance use disorder.

Altemia, Inc. (wholly owned) – S-100

S-100 is an early-stage drug product candidate for sickle cell disease utilizing a patented drug delivery platform. The company is also conducting preliminary commercialization activities for a proprietary medical food intended to address nutritional deficiencies in sickle cell patients, with efforts focused on pursuing third-party reimbursement authorization.

What to Watch Next

• Advancement of L-130 development plan in line with FDA Pre-IND guidance.
• Progress on Cynaptec partnership strategy and potential milestone execution.
• Third-party reimbursement authorization outcomes for sickle cell medical food product.
• Strategic opportunities and potential value-accretive transactions in FY2026.

Commentary

This release highlights a material improvement in Lobe's financial position following its 2024 leadership transition, with cash increasing over 24x year-over-year and working capital swinging from a $2 million deficit to a $5.2 million surplus. The subsidiary financing structure at Cynaptec ($8.46M raised at a $22.56M post-money valuation) allowed the company to fund L-130 development while limiting dilution at the parent level. The 64% retained ownership in Cynaptec provides ongoing participation in L-130 value creation. Investors should note that net losses continued, and commercial success of both L-130 and S-100 remains subject to clinical, regulatory, and financing risks.

About Lobe Sciences Ltd.

Lobe Sciences Ltd. is a biopharmaceutical company advancing programs in diseases with unmet medical needs. The company is pursuing strategic development through its subsidiaries, including a majority interest in Cynaptec Pharmaceuticals, Inc. and wholly owned subsidiary Altemia, Inc.

About Cynaptec Pharmaceuticals, Inc.

Cynaptec is a biopharmaceutical company dedicated to developing innovative therapies for neurological and psychiatric disorders. Cynaptec's initial development program is focused on L-130 (psilocin mucate) for treatment of chronic cluster headache, with additional preliminary proof-of-concept for substance use disorders. Cynaptec is 64% owned by Lobe.

ArcStone Financial Pulse Team

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