BBLG — Q2 2026 Financial Report Analysis

Bone Biologics has no product on sale and no revenue. It is testing one bone-graft product, NB1, in a small pilot study of spinal fusion surgery in Australia. In the second quarter of 2026 (April to June) it lost $773,702, slightly more than the $740,519 it lost a year earlier. The real story is the balance sheet, not the income statement. Cash fell to $4.0 million by June 30. In July the company raised about $2.7 million net in a private placement that more than doubles its share count. Management now says its cash will last only "into the second quarter of 2027", and the filing still carries a going-concern warning (a formal statement that there is substantial doubt the company can keep operating for another year without new money).

At a glance

• $4.0 million cash at June 30, 2026, down from $5.3 million at the end of 2025. Add the roughly $2.7 million raised in July and the company says it is funded only into Q2 2027, so it will probably need to raise money again within about a year.
• Loss per share fell 68%, to $0.43 from $1.33, but the loss itself did not shrink. The net loss grew 4.5%. Per-share loss fell only because the average share count more than tripled (1.80 million vs 0.56 million) after a June 2025 stock offering.
• The July deal can add 2.1 million shares right away, plus 4.2 million more through new warrants. The company had 1.81 million shares outstanding at June 30, so existing shareholders' ownership is being heavily diluted (each share's slice of the company gets smaller).

The quarter in numbers

All figures are from the unaudited condensed consolidated statements in the 10-Q. The company reported no revenue in either period, so there is no revenue or margin line.

Where the money went. Research and development (R&D) spending rose $117,139 in the quarter. The company says this was "development activities to extend the shelf-life of our protein". The product is NELL-1, a lab-made human protein mixed with demineralized bone matrix (DBM, processed donor bone used as a graft scaffold). A longer shelf life matters for making and shipping the product at the scale a larger trial would need. For the full first half, R&D actually fell 26.8%, to $450,344 from $615,186. Management puts this down to "timing of our clinical trial". So the Q2 increase reflects a shift toward manufacturing and product work, not a general rise in trial spending. General and administrative costs (overhead such as staff, legal and listing costs) fell 10.3% in the quarter and were flat for the half ($1.16 million vs $1.17 million).

Interest income was five times higher than a year earlier ($34,512 vs $6,654). That is because cash at the start of the period was larger after the June 2025 offering. It offset about 4% of operating costs.

What the headline numbers hide

• Per-share improvement comes from dilution, not progress. Weighted shares rose from 557,787 to 1,796,755, mostly because of the June 2025 public offering (793,750 shares plus 346,250 from pre-funded warrants) and earlier at-the-market (ATM) sales. An ATM program lets a company sell new shares gradually into the market at the going price. The net loss was 4.5% larger. Any per-share comparison with last year mostly measures how many new shares were issued.
• Cash runway: roughly 9 to 12 months from July, on management's own estimate. Cash at June 30 was $4.03 million. The July placement added about $2.7 million net, so the total is roughly $6.7 million on our arithmetic. (The filing gives the two pieces, not the total.) Management estimates operating spending of $6.2 million over the next twelve months. That is about $517,000 a month, compared with about $220,000 a month of operating cash outflow in the first half ($1.32 million over six months). The company says its cash will fund operations "into the second quarter of 2027". At the first-half pace the same cash would last much longer. The guidance therefore implies spending is planned to more than double. The filing ties this to preparing "for our pivotal clinical study in the future" (a pivotal study is the large, final trial that a US approval would rest on). It does not itemize the $6.2 million.
• Going-concern warning still in place. Both the 10-Q and the auditor's report on the 2025 annual accounts state substantial doubt about the company's ability to continue as a going concern. The company also says that if money runs short it may have to scale back or stop development, or license away rights to its technology.
• The July private placement is large compared with the company. On July 7, 2026, one investor bought 2,112,677 pre-funded warrants at $1.419 per unit. Pre-funded warrants are almost fully paid shares, exercisable for $0.001 each. Each unit came with one Series F warrant and one Series G warrant, each for one share at $1.42. Placement costs were about $357,000, roughly 12% of the gross proceeds. By August 14, 945,677 of the pre-funded warrants had already been converted into shares. If every new instrument is exercised, this deal alone would add about 6.46 million shares: 2.11 million pre-funded, 4.23 million Series F/G and 126,761 placement-agent warrants. That compares with 1.81 million shares outstanding at June 30, for a total of about 8.3 million. The Series F/G warrants become exercisable only after shareholders approve them. The Series G warrants then last just 18 months. Existing warrants (2,753,827) and options (106,479) add more potential shares. Most of these are far above the $1.37 share price the filing cites for June 30: 2.5 million of the warrants are priced at $4.00.
• Nasdaq listing risk. On July 22, 2026 the SEC approved a new Nasdaq rule requiring a market value of listed securities of at least $5 million. On July 29 the SEC stayed that approval pending a petition for review. The company states it is "not in compliance" with the rule if it takes effect. At $1.37 a share, the 1,810,380 shares outstanding at June 30 were worth about $2.5 million (our arithmetic). If the rule takes effect and the company stays below the threshold for 30 business days, its shares would be suspended from Nasdaq.
• Cash burn ran slightly below the reported loss, partly through unpaid bills. First-half operating cash outflow was $1.32 million, against a $1.54 million net loss. Most of the gap comes from prepaid insurance being used up ($106,682) and from accounts payable and accrued expenses rising $128,442 (costs booked but not yet paid). Stock-based compensation, a non-cash cost, fell to $31,758 from $123,504. None of this is unusual, but some of the lower cash burn is timing.
• No one-offs in the income statement. The warrant-liability revaluation was immaterial (-$108 in Q2). The loss is almost entirely ordinary operating spending.

Takeaway: The quarter's loss was routine. What matters is that Bone Biologics had to sell securities worth more than its entire stock-market value (about $3.0 million gross vs roughly $2.5 million) to extend its runway, and that runway now reaches only about Q2 2027 because spending is planned to roughly double ahead of a pivotal trial. Expect another round of dilutive financing within a year unless a partnership or licensing deal arrives first.

What to watch next

• Pilot study data. The 10-Q gives no update on enrollment or results for the Australian pilot study of NB1. The study was designed for up to 30 patients having lumbar fusion surgery, and the first patients were treated in 2024. The FDA's orthopedic devices division has agreed the study design can support moving to a US pivotal trial. Results showing the graft helps bones fuse safely are what would justify the planned spending increase. They would also be the company's strongest argument when raising more money.
• Pivotal-trial costs. Under the UCLA license, enrolling the first patient in a pivotal study triggers a $250,000 milestone payment. NB1 is classed as a drug/device combination that needs FDA pre-market approval (PMA), so a US pivotal trial would cost far more than the $201,199 the company still owes under its current contracts with outside research and manufacturing firms.
• Shareholder vote on the Series F/G warrants, and whether the Nasdaq market-value rule survives the stay.
• Next filing: the Q3 2026 10-Q, likely in mid-November based on last year's November 14 filing date. It will show the first quarter-end cash balance that includes the July raise. It will also show whether quarterly spending has started rising toward the $6.2 million annual estimate.

Our view: NB1 has reached a small human study after more than ten years of lab and animal work, including two sheep spine studies. Even so, this is a single-product, pre-revenue company with about a year of funding. Its accumulated losses are $89.7 million against equity of $3.9 million. The best case is good pilot results that attract a partner or financing on better terms. Short of that, the likely path is repeated equity raises at low prices, and each one shrinks existing holders' share of whatever NB1 is eventually worth.