Vitro Biopharma, Inc.
Vitro BioPharma filed its 10-Q for the quarter ended July 31, 2026, reporting revenue of $570,464 (down 6.3% YoY), a gross margin of 74.6%, and a net loss of $8.5M. The loss was overwhelmingly driven by an $8.3M non-cash loss on extinguishment of debt as the company converted multiple series of convertible notes into Series A-1 preferred stock. Cash improved dramatically to $5.7M from $604K at fiscal year-end, thanks to $8.75M in preferred stock issuances, but the stockholders' deficit widened to $23.1M.
- Net loss for Q3 FY2026 was $8.5M vs $1.7M a year ago, driven by an $8.3M loss on extinguishment of debt.
- Nine-month net loss reached $11.2M, nearly double the $6.0M loss in the prior-year period.
- Cash surged to $5.7M from $604K at fiscal year-end, fueled by $8.75M in Series A-1 preferred stock issuances.
- Total stockholders' deficit deepened to $23.1M from $16.3M at October 31, 2025.
- Revenue declined 6.3% YoY to $570K in Q3; gross margin was 74.6% but operating margin was -220.5%.
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A micro-cap biotech burning cash while converting nearly all its toxic convertible debt into preferred stock — the $8.3M extinguishment charge masks a balance-sheet reset that may determine survival.
Micro-cap biotech with sub-$1M quarterly revenue and a 74.6% gross margin, but operating expenses consume over 3x revenue, a common pre-revenue biotech profile. The debt-to-equity restructuring via preferred stock is a survival move seen among cash-strapped life-sciences issuers.
The company has a $23.1M stockholders' deficit and accumulated deficit of $60.4M, raising substantial doubt about its ability to continue as a going concern without additional capital. The $8.3M debt extinguishment loss reflects a major balance-sheet restructuring that could recur if remaining notes
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