10-Q: Pluri Inc. Reports Increased Revenue but Continues to Face Losses in Q3 2025

Pluri Inc.'s Q3 2025 shows revenue growth driven by CDMO and agtech sectors, but the company still grapples with net losses and reliance on external funding.

Summary

• Pluri Inc. reported its financial results for the third quarter of fiscal year 2025, ended March 31, 2025.
• Revenues increased to $938,000 for the nine-month period and $427,000 for the three-month period, compared to $230,000 and $71,000 in the corresponding periods of 2024, driven by CDMO services and agtech collaborations.
• The company incurred a net loss of $15.48 million for the nine-month period and $6.34 million for the three-month period, slightly higher than the losses of $15.48 million and $5.39 million in the same periods of the previous year.
• As of March 31, 2025, Pluri's cash and cash equivalents totaled $8.91 million, and the company had a working capital surplus of $21.75 million.
• The company is actively pursuing various funding strategies, including strategic collaborations, research grants, and potential sales of equity securities.
• Pluri is in discussions with the European Investment Bank (EIB) to restructure the terms of its existing loan, with a decision expected by the end of June 2025.
• The company's operations are subject to risks related to its location in Israel, including potential disruptions from military conflicts.
• Pluri completed the acquisition of approximately 71% of Kokomodo Ltd., an agtech company, on April 28, 2025.
• A contract with the NIAID was terminated for the Government's convenience, effective April 15, 2025, though Pluri expects to receive an additional $75,000 for work completed before the termination.
• The company has regained compliance with Nasdaq's listing requirements.

Sentiment

Score: 5

Explanation: The sentiment is neutral. While revenue is increasing and the company has regained Nasdaq compliance, it continues to face significant losses and relies on external funding. The termination of the NIAID contract and uncertainty around the EIB loan restructuring add to the concerns.

Positives

• Revenue increased significantly due to the launch of new business verticals in CDMO and agtech.
• The company has a working capital surplus of $21.75 million as of March 31, 2025.
• Pluri has regained compliance with Nasdaq's listing requirements.
• The company completed the acquisition of Kokomodo Ltd., expanding its presence in the agtech sector.
• PluriCDMO is generating revenues from signed agreements with clients.
• The company received a patent covering its immune cell expansion technologies.

Negatives

• The company continues to incur net losses, with a net loss of $15.48 million for the nine months ended March 31, 2025.
• The company has an accumulated deficit of $435.46 million.
• A contract with the NIAID was terminated, impacting future funding.
• The company is reliant on external funding sources to sustain operations.
• There is uncertainty regarding the restructuring of the EIB loan.
• The company's operations are subject to risks related to its location in Israel, including potential disruptions from military conflicts.

Risks

• Failure to reach an agreement with the EIB regarding the restructuring of its loan could adversely affect the company's financial condition and liquidity.
• Military conditions in Israel may cause interruption or suspension of business operations.
• The termination of the NIAID contract may reflect broader federal budgetary adjustments, impacting future funding opportunities.
• The company's ability to generate significant revenue from product sales in the near term is uncertain.
• The company's continued compliance with Nasdaq listing requirements is not guaranteed.
• The company's principal research, development and manufacturing facilities are located in Haifa, Israel and military conditions in Israel, including armed conflicts between Israel and Hamas, Hezbollah and other terrorist organizations from the Gaza Strip and Lebanon, may cause interruption or suspension of our business operations without warning.

Future Outlook

Pluri anticipates generating revenue from CDMO services, collaborations, and licensing of its technologies and products, but may need additional funding to support commercialization and R&D activities. The company believes its existing resources will be sufficient to support operations for at least the next twelve months.

Management Comments

• The Company is expecting to finalize such discussion by the end of June 2025; however, there is no certainty that such restructuring will be achieved on the expected timeline or at all.

Industry Context

Pluri's focus on cell-based technologies aligns with the growing interest in regenerative medicine, immunotherapy, agtech, and food tech. The launch of PluriCDMO positions the company to capitalize on the increasing demand for cell therapy manufacturing services. The company's agtech initiatives, including cultivated coffee and cacao, address the need for sustainable agriculture solutions.

Comparison to Industry Standards

• Pluri's revenue growth in the CDMO sector can be compared to companies like Lonza and Catalent, which are major players in contract manufacturing for pharmaceuticals and biologics.
• In the cell therapy space, Pluri's development of PLX cells can be benchmarked against companies like Mesoblast and Osiris Therapeutics, which are developing cell-based therapies for various indications.
• Pluri's agtech initiatives, particularly in cultivated coffee and cacao, can be compared to companies like BlueNalu and Memphis Meats (Upside Foods) in the cultivated food space, which are developing cell-based seafood and meat products, respectively.
• The company's collaboration with ICL Group Ltd. to revolutionize bio stimulant delivery and enhance yield sustainably can be compared to projects by Bayer Crop Science and Syngenta.

Related Party Transactions

• On January 23, 2025, the Company entered into a binding term sheet (the Term Sheet) for the purchase of certain shares representing approximately 71% of the equity of Kokomodo Ltd. (on a fully diluted basis), an Israeli agtech company specializing in cultivated cacao production, for an aggregate purchase price of $4.5 million, payable in Common Shares of the Company.
• Following the execution of the Term Sheet, on March 13, 2025, the Company and the Subsidiary (collectively, the Purchaser), entered into a Share Purchase Agreement (the Share Purchase Agreement), effective as of March 12, 2025, with Chutzpah Holdings Limited, a company wholly owned by Mr. Alejandro Weinstein, a director of the Company, and Plantae Bioscience Ltd., a corporation controlled by Mr. Weinstein (collectively, the Seller), pursuant to which, on April 28, 2025, the Seller sold to the Purchaser 400,000 ordinary shares and 175,000 preferred seed-1 shares (the Purchased Shares), representing approximately 71% of the equity of Kokomodo, for an aggregate purchase price of $4.5 million, payable in 976,139 of our common shares (the Consideration Shares).

Stakeholder Impact

• Shareholders: The company's continued losses and reliance on external funding may negatively impact shareholder value.
• Employees: Potential cost reduction measures and restructuring efforts may impact employees.
• Customers: The company's focus on CDMO services and cell-based products aims to deliver innovative solutions to customers.
• Suppliers: The company's financial condition may impact its ability to meet its obligations to suppliers.
• Creditors: The company's ability to repay its debts, including the EIB loan, is dependent on its financial performance and access to funding.

Next Steps

• Finalize discussions with the EIB regarding the restructuring of the EIB loan.
• Continue to pursue strategic collaborations and licensing agreements.
• Advance the development of PLX cells and MAIT cells.
• Expand the PluriCDMO business.
• Continue to seek funding through various channels.

Key Dates

Keywords

CDMO, agtech, MAIT cells, EIB loan, Kokomodo, NIAID, revenue, cell therapy, Pluri, loss