Conexeu Sciences Inc. Reports Financial Results for the Quarter Ended July 31, 2026

Financial Performance Overview

Conexeu Sciences Inc. is an early-stage regenerative medicine company focused on developing biomaterial-based technologies for tissue restoration in wound care and aesthetics applications. The company has not generated any revenue to date and has been primarily focused on research and development, capital raising, and preparing to operate as a publicly traded company.

In the third quarter of fiscal 2026, Conexeu’s common stock began trading on the Nasdaq Capital Market, marking its transition from a private, development-stage company to a publicly traded issuer via a direct listing. This transition has had a significant impact on the company’s financial results, as it has led to a substantial increase in operating expenses related to supporting public company operations.

Revenue and Profit Trends

Conexeu did not generate any revenue during the three or nine months ended July 31, 2026, or the same periods in 2025. The company has been in the early stages of developing its technology and has not yet commercialized any products.

For the three months ended July 31, 2026, Conexeu reported a net loss of $7,725,651, compared to a net loss of $1,298,570 for the same period in 2025. This represents a significant increase in net loss of $6,427,081, or approximately 495%.

Similarly, for the nine months ended July 31, 2026, Conexeu reported a net loss of $11,748,757, compared to a net loss of $2,046,684 for the same period in 2025. This represents an increase in net loss of $9,702,073, or approximately 474%.

Expense Analysis

The increase in net loss was primarily attributable to higher operating expenses associated with the expansion of Conexeu’s operations and activities required to support its transition to a publicly traded company.

Key drivers of the increase in operating expenses include:

1. Business Development: Expenses increased by $1,175,087 (three months) and $1,263,624 (nine months) due to expanded marketing, investor relations, and business development initiatives undertaken following the Nasdaq listing to build and maintain trading visibility, liquidity, and investor awareness. This included significant travel-related expenses for investor and business development meetings.

2. Consulting: Expenses increased by $3,319,281 (three months) and $4,784,591 (nine months), driven substantially by non-cash, stock-based compensation issued to marketing, investor relations, and corporate advisory vendors, valued at then-current Nasdaq trading prices, together with increased engagement of third-party advisors supporting regulatory activities and capital markets initiatives.

3. Management and Personnel Costs: Expenses increased due to the expansion of the executive and scientific team, the appointment of a Chief Commercial Officer, and stock-based compensation associated with milestone warrants that vested upon the Nasdaq listing and subsequent stock-price milestones.

4. Regulatory Fees: Expenses increased by $206,371 (three months) and $299,015 (nine months) reflecting the company’s expanding efforts and continued preparations for the submission of its 510(k) application to the FDA.

5. Insurance: Expenses increased by $160,309 (three months) and $168,709 (nine months), primarily driven by the directors’ and officers’ liability insurance obtained ahead of the Nasdaq listing.

6. Professional Fees: Expenses increased by $101,716 (three months) and $593,088 (nine months) in legal, accounting, and advisory costs associated with the direct listing and operating as a publicly listed company.

7. Research and Development: Expenses increased by $135,750 (three months) and $198,783 (nine months), reflecting a lease commitment for company-operated laboratory facilities, engagement of scientific consultants, and procurement of materials used in development and testing.

Strengths and Weaknesses

Strengths:

• Successful transition to a publicly traded company, providing access to capital markets and increased visibility
• Experienced management team and scientific advisors
• Proprietary biomaterial-based technology platform with potential applications in wound care and aesthetics
• Ongoing research and development activities focused on advancing the company’s product pipeline

Weaknesses:

• Lack of revenue and commercial products, resulting in continued operating losses
• Significant increase in operating expenses associated with public company operations, which may strain resources
• Reliance on external financing to fund ongoing operations and development activities
• Early-stage nature of the company’s technology, with no assurance of successful commercialization

Outlook and Future Prospects

Conexeu’s transition to a publicly traded company has been a significant milestone, providing access to capital markets and increased visibility for the company. However, the increased operating expenses associated with public company operations have resulted in a substantial increase in net losses.

Going forward, Conexeu’s focus will be on advancing its product development activities, including preparation for a planned 510(k) submission to the FDA. The company will also need to continue its capital-raising efforts to fund its ongoing operations and development initiatives.

The successful commercialization of Conexeu’s technology and the development of revenue-generating products will be crucial for the company’s long-term success. While the company’s proprietary biomaterial-based platform shows promise, there is no assurance that its products will be successfully developed and commercialized.

Conexeu’s ability to manage its operating expenses, effectively allocate resources, and execute on its product development strategy will be key factors in determining the company’s future prospects. Investors should closely monitor the company’s progress in advancing its product pipeline, securing regulatory approvals, and achieving commercial milestones.

Table 1: Conexeu Sciences Inc. Financial Highlights

Note: All figures are in United States Dollars.