Q3 2025 Predictive Oncology Inc Earnings Call
Can be accessed via the Investor's page of our website.
Good morning, everyone, and welcome to Predictive Oncology Q3 Financial Results and Business Update presentation, which will include an overview of our latest digital asset investment in Aether's ATH token, aimed at creating the world's first strategic compute reserve.
This investment represents a new business line for predictive oncology through which we believe, we will be able to utilize atth for Revenue generating purposes.
On September 29, 2025, we launched the digital asset. Treasury focused on Aether's ATTH token, which not only powers Aether's AI infrastructure but also our ability to directly benefit from the active digital asset management of their AI infrastructure.
This is both relevant and important because, as we have learned, one of the biggest barriers to accelerating AI-driven medical research and discovery is no longer just about good science, but access to reliable and affordable computing power.
A growing constraint on innovation and drug discovery. Or personalized medicine isn't just about the science itself.
But the infrastructure required to perfect the computational models, and develop the AI methodologies that unlock the science.
By recognizing this challenge, we believe that we have strategically positioned ourselves with Aether to address our own future infrastructure needs while investing in an enabling technology that has the potential to unlock the next decade of Discovery and Innovation not just in healthcare but across multiple Industries.
Our plan is to turn Aether tokens into graphic processing units, or GPUs, via the Aether partnership and network.
And gpus into Revenue.
And today's deck will show you exactly how we plan to generate cash flow while supporting the AI compute ecosystem.
But first, let's start with the agenda so that everyone knows what to expect from today's presentation.
In addition to what I've already said, I will provide you with a brief company update, followed by a financial report by our CFO, Josh Blancher.
Then we'll move into our new digital asset treasury business and our vision for the UH token utilization, presented by Tom McLaughlin, who is our Chief Investment Officer, followed by Kyle Okamoto, a member of the Predictive Oncology Crypto Advisory Board.
Kyle will do a deep dive into how we plan to leverage our strategic compute, Reserve, to satisfy expertise market demand and generate revenue.
As I said in my opening remarks,
We were very excited to announce this past September that we have initiated a digital asset. Treasury strategy, focused on the Aether ecosystem and its native ath token.
While certainly not the first company to initiate additional assets, treasury strategy.
Predictive oncology is investment. In ath goes well beyond a strategy of Simply holding digital currencies in our treasury with the goal of enhancing short-term returns.
Although this is certainly one very important aspect of the initiative.
What really differentiates our digital asset strategy, is that by being a participant on the ather ecosystem, we can play a direct role in expanding access to high performance, AI infrastructure and significantly lowering costs as compared to the big cloud providers.
This represents a new potential revenue stream that we believe will translate into significant long-term value for the company and our shareholders.
The growth and demand for AI compute power. Cannot be overstated and numerous recent reports have indicated that this demand is rapidly outpacing infrastructure Supply. In fact, 1 report by Citi group estimates, that AI infrastructure spending will reach 2.8 trillion dollars globally by 2029.
We believe our digital asset strategy will allow us to be beneficiaries of this anticipated growth.
Availability of AI infrastructure. Cannot keep Pace with global demand.
Or when the cost is prohibitively expensive.
We believe this limits breakthrough, Innovation. Not just in healthcare but across all sectors.
Through this investment in ATH, Predictive Oncology has established the world's first strategic compute, Reserve, aiming to purchase GPU compute on the eighth or network to help democratize access to AI broadly, while we believe will address.
The rapidly growing need for advanced computing power.
This is an important event in our company's history, and I am excited about the opportunity that this represents.
at this point.
I will turn the call over to Josh Blancher, our CFO, for his view of our third quarter financial performance. Josh.
Thank you, Raymond. Before digging into the financials, I would like to point out that both our balance sheet and P&L this quarter include some complex and highly unusual effects of the private placement entered into on September 29th to support our new digital asset treasury strategy. They both include transit entries, necessitated simply because of the timing of the closing of the transaction. As you all know, in September, the company carried out two private financing deals to support its treasury strategy: one using cash.
As of September 29th or September 30th, the crypto deal or the crypto Spa involved, a more complex value exchange, the company agreed to issue a fixed number of pre-funded warrants in exchange. For a fixed number of at tokens, based on an at market price, determined on September 26th, the market value of that fixed number of atth tokens fluctuated, between the pricing on September 26th and the close of the third quarter on September 30th and continued to fluctuate until closing on September 7th. As a result, the economic value of the company.
And investors change between September 29th and the close of the third quarter on September 30th because the economic value changed due to the variable, not directly related to the company's own Equity us, gaap requires the contract to be accounted for as a derivative liability. As at fair value through earnings, the liability was recorded at fair value. When the contract took effect on September 29th, then we measured on September 30th for the quarter end. And finally again on October 7th at the settlement to reflect the fair value of the underlying atth contributed and the pre-funded warrants. As of that date, a Monte Carlo, simulation was used to model expected price changes in both at and
And the company's stock price, over the short period to calculate gains and losses.
When the deal closed on October 7th, the derivative liability was derecognized, and the ATH tokens were recorded as assets. Meanwhile, the pre-funded warrants were recorded as equity. The ultimate impact on the P&L will be an entry to earnings reflecting the ultimate change in the relative market value of what investors contributed, or ATH tokens, versus what they received, pre-funded warrants to purchase the company's common stock.
As a result of the foregoing, the financial statements, as of 9:30, 255 are not indicative of the company's underlying cash position or financial performance. I will call out a few such entries in this review.
We concluded the third quarter of 2025 with 182,000 in cash and cash equivalents compared to 612,000 as of December. 31st 2024 again, due to the derivative liability of 74 million related to the Securities purchase contract, supporting the initiation of our digital asset treasury strategy. Stockholders Equity of 77 million was compared to the stockholders deficit of 203,000. As of December, 31st 2024, our net loss for the third quarter, 2025 with 77.7 million as compared to 3.1 million.
Million for the third quarter of September 30th 2024 again, the significant loss for the third quarter of 2025 was a direct result of the 74.4 million dollar loss on remeasurement of the derivative liability, which was a non-cash charge, our revenue of 3.600 in the third quarter ended September. 30 2025 was largely unchanged from revenue of 3.90 in the comparable period in 2024.
General and administrative expenses of 2.6 million in the 3 months, ended September 30th 2025 was compared to 1.5 billion in the comparable period in 2024 in primarily consists of professional and Consulting fees. Operating expenses to operations in R&D or 529,000. For the third quarter of 2025 as compared to 535,000 for the corresponding quarter in 2024, operating expenses to sales and marketing were 133,000 for the third quarter of 2025 as compared to 73000 for the corresponding quarter. In 2024 importantly, on our statement of cash flows, the cash flow used for operations was 5.9 million for the 9 months and its September 30th 2025 versus 8.0 million for the corresponding period in 2024, the reduction.
Call over to Tom McLaughlin, our new Chief investment officer to walk through our investment strategy. Tom thank you, Josh. Hello everyone. I'm Tom McLaughlin, Chief investment officer and I will walk you through our investment strategy and our deploying our assets.
Let me start with the composition of our assets and our execution plan.
On November 10th 2025, we held approximately 5.7 billion ath tokens with a market value of approximately 145.9, million US dollars.
This figure is calculated based on a price of.
2.68 cents per APH token, as reported by the 4 PM Eastern Standard Time pricing on the Coinbase exchange on November 10th, 2025.
We've implemented multi-signature requirements for all movement and execution of tokens, with governance and oversight split between Predictive Oncology and our main asset manager, DNA Holdings.
We believe this ensures both security and accountability on behalf of all parties involved.
Our investment objective with respect to the digital asset strategy is straightforward.
Allocate the assets on our balance sheet to drive the best risk-adjusted returns for Predictive Oncology.
And we're aiming to achieve this objective through a combination of four different allocation models.
Our 4 all models. Number 1.
Passive ATH, staking and AI, and gaming pools.
This method provides baseline yield with minimum active management.
Number 2: Active staking for a third network. Cloud hosts.
Here we plan to share rewards from AI: bookings, participating directly in network revenue generation.
Number 3, TPU leasing utilizing our AI.
We plan to convert tokens into direct. Cash flows by booking gpus and selling compute capacity.
Number 4: other token rotation across ecosystems. There's an opportunity to book GPUs, using AP to earn other deepened, also known as decentralized physical infrastructure. Network tokens can either be held or sold for cash, which will be utilized to purchase additional AP.
The key point here that we'd like to stress is that we consider ATTH to be an active asset class and not a passive bolt.
The goal of this slide is to give a breakdown of the overall assets of the company.
As I mentioned in the previous Slide, the company currently holds an estimated 5.7 billion ath tokens on the balance sheet as of November 10th, this equates to an Mna metric of approximately 0.76.
As you can see from the chart on the right 3.74 billion of these at tokens are locked and will unlock through December 2028.
as these tokens unlocked, we're able to then leverage them to drive further returns
Our accumulation strategy since the close of the transaction has yielded an additional 927.9 million tokens as of November 10th, utilizing $25 million of cash.
We believe Predictive Oncology is well positioned with a large holding of AT tokens and plans to continue the accumulation of additional tokens off the open market.
Summary of objectives. Let me be clear about what we're targeting and why it matters.
Our target is to achieve a high single-digit yield.
On our ath tokens for fiscal year 2026. We believe this is conservative and achievable given the multiple revenue streams. We're activating, and I touched on on the previous slide.
We're leveraging different strategies with respect to our digital asset strategy, simultaneously staking, leasing, token rotation to de-risk and diversify revenue sources.
Immediate priority is to drive a baseline of cash flow to sustain our operations.
We're not just building for tomorrow, we're generating Revenue today.
Long term, we're working to create a strong sustained, business model that we believe will be positively valued by our Public Market compared to competitors, but based off of both revenue and profitability metrics.
And as you'll see, when looking at our peer comparisons, the AI infrastructure sector rewards, revenue growth, and margin discipline—both of which we will be delivering.
The ACR network is the foundation of our digital asset strategy and an enterprise-grade decentralized GPU platform serving AI, enterprise, and gaming workloads.
With over 430,000 gpus deployed across more than 200 global data centers and approximately 150 million in annualized Revenue.
Aether is the only decentralized compute platform operating at true enterprise scale.
What we think sets Aether apart is its tokenized participation model.
The at token is a sole mechanism for engaging with the network. It is used both to onboard GPU supply and to book compete demands.
Every unit of value that flows through Aether is settled in apa.
In the midst of a global compute shortage where AI demand outpaces Supply, by more than 10x building, a strategic treasury in at represents a unique opportunity to hold an asset directly, tied to the infrastructure layer of the AI economy.
Why this matters AI infrastructure spending among big Tech Giants is projected to reach 2.8 trillion by 2029.
This isn't a niche market. This is the foundation of the next decade of technological growth.
The network model that Aether brings represents a new way of doing business. We are excited about the Avenues. This system provides.
Pile. Okamoto will now plot will. Now double-click on the utility of the Strategic Compute Reserve and how we plan to convert it into enterprise revenue.
Thank you, Tom. And good day, everyone. I'm Kyle okamoto member of predictive oncology, is crypto Advisory Board and CTO. And AI general manager of Aether today, I'll walk you through the overall, AI infrastructure Market context and most importantly, how predictive oncology will leverage their strategic compute Reserve to generate real world utility and the next steps to return shareholder value as a result.
So now now that Tom is giving you a brief overview of the Aether Network. Let's zoom out a bit and take a look at the overall Global AI infrastructure market. And this data really tells a compelling story. You know, Tom mentioned that City group projects, that AI infrastructure spending will hit 2.8 trillion by 2029. The same forecast, has only gotten bigger as each quarter goes by
By 2023, the global power capacity demand is projected to be 200 gigawatts, according to Banging Company. While build-outs are happening today, they are still in the single gigawatt ballpark. So, very much early days. The AI infrastructure market is growing at approximately 40% CAGR through 2030. This isn't linear growth; this is exponential acceleration. There's a clear supply and demand imbalance of over 1,000%. Let me repeat that number: the demand for compute exceeds supply by more than 10 times. Right? Jensen from Nvidia, Elon from Tesla and X, Sam from OpenAI, and more importantly, our enterprise clients that we work with every day, all attest to the lack of access to affordable and appropriate AI infrastructure.
The top 5 hyperscalers alone will spend nearly half a trillion dollars on AI capex by 2026 according to both Citigroup Androids.
This is inherently the problem with such a precious resource being dominated by a small group of companies.
Aether's Mission and combined with predictive oncology, is to change that, right? And now predictive oncology is in a position to help, fulfill that mission.
We don't believe this is just a temporary blip. The well-versed analysts researching firm big bank, creditor, and investor communities have continually updated their forecasts around demand for GPU compute, and we believe this trend will only continue in the years ahead.
And to Raymond's earlier point about structural constraints, an average of 40 to 50-week lead times for enterprise GPUs means that companies can't wait to buy hardware themselves or wait for traditional infrastructure providers to ramp up. They need solutions now. Uh, I want to share a quote from Sam Altman, recently CEO of OpenAI, where he stresses that building a strategic national reserve of computing power makes a lot of sense. That's exactly what Predictive Oncology has done: building a strategic compute reserve. The strategy is quite simple yet powerful. So, let's double click on that.
It really starts with the establishment of the Strategic Compute Reserve, which is now done and announced. We're now looking forward; Predictive Oncology has built the industry-standard core component to unlock new ways of deploying compute. We have a great team in place that's already starting to put that Reserve to work.
To stimulate supply. This is in flight. Now, Predictive Oncology is aiming to monetize and grow their holdings via staking GPU clusters on the Athers network, providing loans to cloud hosts that contribute GPUs to the network. This will stimulate supply and reward the community, ultimately providing better options while further satisfying that insatiable demand and earning creative value for doing so.
In step 3, we aim to satisfy the demand, which is also in progress. Predictive Oncology anticipates converting ATTH to fiat revenue by renting GPUs on the eighth of the network and then providing that AI infrastructure to enterprises directly. We'll double-click on this point in a minute.
And lastly, step 4 is to grow the reserve predictive oncology anticipates. Buying more tokens. On the open market with cash proceeds and receiving an additional 20% of the number of at tokens. Purchased by predictive oncology on the open market from the Aether Foundation.
Also, by generating rewards for staking and lending, we can physically grow the overall war chest. This creates a virtuous cycle that satisfies enterprise demand and grows not only the digital assets on the balance sheet but also cash holdings.
So in short, we're converting Capital into productive compute at Market speed, which we believe will help solve that 40 40 to 52 week, supply chain problem while growing the Strategic compute reserve and generating positive cash flow.
Okay, we can't have a presentation without the infamous eye chart. So, here's that chart showing a detailed view of the transaction workflow. That generates the main utility, um, not the only utility but the main utility of the Native ath token which is satisfying Enterprise demand for premium, AI infrastructure,
So, let's walk through this and how it works in practice.
The simple 4-step operation: Step 1 is productive, with an oncology lens applied to cloud hosts for staking GPUs, and they then earn additional rewards on the ASIN network.
Step 2 is predictive oncology, which utilizes ATTH to rent GPUs to serve enterprise clients.
Predictive oncology and Step 3 then earns positive margins, fiat cash revenue, generating cash flow from delivering those GPUs to those enterprise clients.
And then step 4 is predictive oncology uses a portion of that Fiat Revenue to purchase more AT on the open market and receive a 20% grant from the Aether Foundation, with the remaining cash supporting operations, further investments, and profits. This creates a virtuous cycle that generates compute access. Compute generates cash, cash generates more AT, and more AT generates more compute capacity.
This capital allocation engine is designed for continuous Optum optimization across staking, rental, and sales cycles. All while aligning financial returns with market expansion objectives, this allows any cloud host to port GPU provider to engage with the Aether Network as predictive oncology can support them via staking, lending, and currency appropriation. Further stimulating the supply side of the equation, it is enlightening those enterprise clients with more choices, faster solutions, and better prices.
And that brings us to the near-term pipeline and how we're monetizing this demand today.
Predictive Oncology, in partnership with Aether, has access to a near-term pipeline with enterprise-scale revenue potential. Let me walk you through a few small samples of some of the significant opportunities we're currently developing.
These 6, active prospects, span gen, AI, platforms inferencing, leaders, multimodal, AI companies, Etc. These aren't speculative. These are well-funded. High growth companies mostly based in the US backed by top tier VCS and strategic investors like Nvidia or AMD or meta. Sequoia Etc.
You'll notice that the contract sizes range from about $3 million for a short-term training run for a real-time generative video firm on Nvidia H200 GPUs. This is a company that has already been successfully used in the past for such training months.
Um, it ranges up to a $120 million long-term engagement on the newest, latest, and greatest Nvidia GPUs, the Black Globe B300 series, which is being moved to production globally this quarter.
Big idea.
So while the latest, you know, AI unicorns in the Enterprise space, may get the Limelight on this slide and the earnings call. Um and the latest and greatest hopper in Blackwell gpus are obviously highlighted here. Um, the go to market teams are satisfying, a wide customer base across multiple GPU configurations, as AI is very much horizontal. It's touched or is touching all Industries, all markets, all geographies, all verticals. Uh and so therefore the team aims to have a diversified client portfolio. Very much in line with the vision and Mission to democratize access to such a precious resource.
So I would say the key takeaways are high-end industry-leading, AI infrastructure is in high demand at the right price.
There are several major enterprise opportunities being developed in partnership with Aether, with numerous small deals progressing.
Contract durations are usually long term, right? This is reserved dedicated bare metal infrastructure. So we shoot for 6 months or longer, um, and payment is always in advance, uh, to, to lower risks.
The market we now fully operate within represents billions in unmet demand that Raymond described, and we're really positioned to capture meaningful share.
So, let's take a look at what that might mean from an investor perspective.
AI infrastructure peers trade at 19x to 67x P/TOS ratios despite losses.
Predictive oncology aims to deliver profitable revenue with zero infrastructure. Hardware infrastructure requirements create significant scarcity value.
To put this in market context, let's look at the NIO Cloud, public company peer group, and highlight the key differentiation points. What we're doing is rare and unique in this space.
When you look at the AI infrastructure sector, investors strongly favored revenue and growth, largely ignoring large losses at companies like CoreWeave, White, Fiber, Applied Digital, and Nebulas, which are trading at price-to-sales multiples ranging from 18 to 67x, despite massive net losses of hundreds of millions of dollars per quarter. Their stock prices have clearly skyrocketed, as investors know the AI narrative is here to stay and we are in the early days. But here's what's different.
Predictive Oncology aims to have profitability on each AI infrastructure and customer deal that it may execute on the Aether Network.
O'Neal Cloud competitors are burning cash to build infrastructure. Predictive Oncology can provide large GPU clusters with zero physical infrastructure investment needed.
At the power of the Strategic Compute Reserve, it's instant access to AI infrastructure on an Opex basis, utilizing the native ATH token to unlock this capacity.
Similarly, this peer group has significant operating costs and overhead where predictive oncology gets a ready-made TurnKey solution for gpus as a service without the need for massive software development. Budgets
This allows predictive oncology to remain highly price competitive in the space and ultimately make GPUs affordable for developers working on that next life-changing innovation or researchers looking to tackle life's biggest challenges.
So, I'm showing you the numbers as of a few weeks ago in the Nio, cloud peer group, October 15th, and what's really unique here is that no public Nio Cloud that is generating positive net income and free cash flow exists.
That puts predictive oncology at cut above the rest.
While the market is rewarding growth in revenue, not profitability, Predictive Oncology ultimately aims to deliver both revenue growth and profitability.
So, we're quite excited about what's coming soon.
Predictive Oncology is expanding beyond medicine to become a key player in AI infrastructure.
As we look ahead to what's next on the near term horizon, beyond closing deals in the later stages of the pipeline, I just previously discussed predictive oncology, which is really anchoring the mission around compute infrastructure, powering the new AI economy.
We believe that the predictive oncology strategic compute reserve built on Aether's ATH token will allow Predictive Oncology to use ATH to provide the latest and greatest AI infrastructure to enterprises globally. This creates real utility for the digital assets in that reserve, generating revenue and profit for the company to further grow the reserve and ultimately delight clients.
This massive war chest of compute tokens is expected to allow Predictive Oncology to onboard NVIDIA's latest GPUs, those Blackwell V30s, to satisfy marquee enterprise logos that crave that bleeding-edge technology to push innovation forward.
Continuing predictive oncology leadership and AI and machine learning-based drug discovery and therapy techniques, while adding what we hope to be a high-growth business around AI infrastructure and digital asset management, with more exciting digital asset utility use cases to follow.
This includes this portion of the presentation, and we'll go back to Raymond for closing remarks. Thank you.
Thank you very much for your attention. This marks the end of today's presentation.
We remain very optimistic about the future and exceptionally enthusiastic about our partnership with Aether and DNA.