Propanc Biopharma's net loss narrowed to $18.9M from $58.9M on far less stock-based pay, but operating cash burn rose to $5.7M, year-end cash was $0.83M and the share count reached 6.3M.
Net income
-$19M
+68.0% YoY
Diluted EPS
$-17.62
+95.3% YoY
Overview
Propanc Biopharma is an Australian-founded, Delaware-incorporated drug developer working on PRP, an experimental cancer treatment built from pro-enzymes (inactive forms of enzymes the body can switch on). It has no approved product and no revenue, so its annual report is mostly about three things: how much money it lost, how much cash it actually burned, and how it paid for it.
For the fiscal year ended June 30, 2026, the net loss fell to $18.9 million from $58.9 million. That drop is almost entirely an accounting effect: the company paid far less of its staff and consultants in shares than a year earlier. Cash spending went the other way. Cash used by operations jumped to $5.7 million from $0.4 million, and the company ended the year with $0.83 million in cash. The auditor again flagged "substantial doubt" about whether the company can keep operating for the next 12 months without new money (a "going concern" warning).
Key figures
Metric
FY2026 (to Jun 30, 2026)
FY2025
YoY Change
Revenue
$0
$0
n/a
Total operating expenses
$18.19M
$57.28M
-68.3%
of which: professional & consulting
$14.57M
$33.62M
-56.7%
of which: compensation & related taxes
$2.28M
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$23.30M
-90.2%
of which: research & development
$0.63M
$0.22M
+179.6%
Net loss
$(18.86)M
$(58.92)M
loss narrowed 68.0%
Net loss to common (after deemed dividend)
$(19.79)M
$(58.92)M
loss narrowed 66.4%
Diluted EPS
$(17.62)
$(371.22)
loss per share narrowed 95.3%
Weighted average shares
1,123,709
158,727
+608%
Stock-based expenses for services
$13.49M
$55.97M
-75.9%
Net cash used in operations
$(5.68)M
$(0.41)M
~14x higher
Cash at year end
$0.83M
$0.01M
Share figures reflect the 1-for-25 reverse stock split that took effect on May 18, 2026 (a reverse split merges every 25 old shares into one new share; the filing restates earlier periods on the same basis).
Why the loss shrank: fewer share-based payments, not lower spending
Most of Propanc's reported expenses are not cash. The company routinely pays executives, consultants, lawyers and investor-relations firms in stock, and those shares are booked as an expense at their market value. The cash flow statement shows $13.5 million of stock-based expenses for services this year versus $56.0 million last year, and that $42.5 million swing more than explains the $40.1 million improvement in the net loss.
Line by line, per the MD&A (management's discussion section of the 10-K):
Compensation fell to $2.28 million from $23.30 million, "primarily attributable to the decrease in stock-based compensation expenses of approximately $21,260,000 to our officer and an employee," partly offset by a larger CEO bonus and a higher salary for one employee.
Professional and consulting fell to $14.57 million from $33.62 million because stock-based consulting and legal services dropped by about $21.2 million. Cash-type consulting costs actually rose: general consulting and investor relations up about $1.58 million, legal fees up about $380,000, director fees up about $145,000, and accounting up about $60,000, which the company ties to its Nasdaq listing and registration-statement work.
Administration rose to $0.67 million from $0.11 million, including about $200,000 of franchise tax, $144,000 of travel, $113,000 of public-company costs and $58,000 of insurance.
In other words, the underlying cost of running the company went up this year; the headline loss fell only because the share-based component came down from an unusually high level.
Research spending is still small
R&D rose to $625,477 from $223,721. That is the part of the business investors are ultimately paying for, and it was about 3.4% of total operating expenses, versus roughly $14.6 million spent on professional and consulting fees. The filing says the R&D went toward preparing PRP for a planned Phase 1b first-in-human study in 30 to 40 patients with advanced solid tumors: choosing a GMP manufacturer (a plant certified to make drug for human use), developing a method to measure PRP in patients' blood, and finalizing the trial outline. It also extended its POP1 research program on an anti-aging (senescence) compound by two years. The 10-K does not give a start date for the Phase 1b trial.
Cash, funding and dilution
The year started with a $4.0 million public offering in August 2025 (40,000 shares at $100.00 each on a post-split basis), which netted about $3.3 million after roughly $686,000 of fees. After that, the main funding source was Series C convertible preferred stock sold to Hexstone Capital: $1.0 million up front in November 2025, then $3.0 million more as Hexstone exercised warrants to buy additional preferred shares. Total financing inflow was $6.46 million, against $5.68 million of operating cash burn.
Those preferred shares convert into common stock at a discount to the market price (85% of the lowest trading price over a measuring period), and the minimum conversion price, originally $12.50, was cut to $1.25 in February 2026 and to $0.05 in May 2026. When a conversion price floats with the stock, a falling share price means more new shares per dollar converted. The results are visible in the share count:
Date
Common shares outstanding
June 30, 2025
464,471
June 30, 2026
3,310,827
September 23, 2026
6,331,116
That growth is also why loss per share improved much more (95%) than the net loss itself (68%): the loss was spread across about seven times as many shares on average.
After year end, Hexstone exercised warrants for another $2.0 million, and in August 2026 150 Series C preferred shares ($1.5 million of stated value) converted into 2,204,660 common shares, an implied price of roughly $0.68 each. Over the same July–August period the company spent about $500,000 buying back 320,031 of its own shares at an average $1.56 under a $5.0 million repurchase plan adopted June 17, 2026, and on July 24, 2026 issued 3.5 million new shares (valued at $4.8 million) to officers, an employee, directors and consultants. The stock last traded at $0.62 on September 18, 2026, per the filing.
A balance sheet made mostly of prepaid services
Total assets were $12.78 million at June 30, 2026, but $11.85 million (about 93%) of that is prepaid expenses, mainly shares already issued to consultants, investor-relations and advisory firms for services still to be delivered over the next one to three years. Those prepayments cannot be used to pay bills; they will turn into expenses as the service periods run. Cash was $0.83 million. Liabilities fell to $3.38 million from $5.73 million as the company repaid or converted all its convertible notes and third-party loans; what remains is mainly $1.99 million of payables and accrued expenses, a $0.75 million employee-benefit liability and $0.46 million owed to related parties.
Takeaway: The 68% narrower loss is an accounting effect from paying fewer people in stock. Operating cash burn rose to $5.7 million, R&D was only $0.6 million of $18.2 million in expenses, and the company is funding itself with preferred stock that converts at a discount with a $0.05 floor, so the common share count has already grown from about 0.5 million to 6.3 million in 15 months.
Other items worth knowing
Settlements: $320,000 of settlement expense, covering an underwriter dispute ($50,000 up front plus 4% of later offering proceeds; $170,000 paid in the year) and a $150,000 settlement with an investor, half in cash and half in stock.
Deemed dividend of $932,246: an accounting charge (not a cash payment) tied to the Series C preferred, which increases the loss attributable to common shareholders.
Internal controls: management concluded its disclosure controls were not effective as of June 30, 2026 because of material weaknesses in financial reporting.
Accumulated deficit (total losses since the company was founded) reached $144.5 million.
Outlook
Management gives no financial guidance. The filing states that the company does "not have enough available cash to meet our obligations over the next 12 months" and depends on further equity or debt financing. On the numbers disclosed, the near-term path is clear: operating cash use of roughly $5.7 million a year, funded largely by Hexstone continuing to exercise Series C warrants (about 500 of the 9,900 issued had been exercised by the end of August 2026), with each conversion adding common shares at a discount to the market price. What would change that picture is the Phase 1b trial actually starting, which would also push R&D spending well above this year's level. The next data point is the 10-Q for the quarter ending September 30, 2026, which will show the July share grant and the post-year-end conversions in the share count and expenses.