Accustem Sciences Inc. (ACUT) - Annual Investor Guide

I’m putting together this guide to help you understand Accustem Sciences Inc. (ACUT). My goal is to explain their latest filings in plain English so you can decide if this company fits your investment goals.

1. What does this company do?

Accustem is a clinical-stage diagnostics company. They are currently in the research phase and do not sell products yet. They are developing two main genomic tests:

• MSC (Multi-Signature Classifier): A test designed to analyze lung nodules. It aims to tell doctors if a nodule is benign or malignant, helping patients avoid unnecessary biopsies.
• StemPrintER: A test for breast cancer patients. It measures gene expression to predict the risk of cancer returning, helping doctors decide if a patient needs chemotherapy.

2. How are they doing?

They are "pre-revenue," meaning they have made $0 in sales. With only four full-time employees, they run a lean operation. They rely on outside research firms and lab partners to run their clinical studies. They are currently spending cash to fund the research needed to get regulatory approval and insurance coverage.

3. The "Checkbook" Reality

The company loses money every year.

• The Losses: In 2025, they reported a loss of about $1.76 million, up from $1.51 million in 2024. This increase comes from higher professional and administrative fees.
• The Big Picture: Since starting in 2013, they have accumulated a total loss of nearly $9.8 million.
• The Runway: They have about $0.5 million in cash. Because they spend money faster than they earn it, they have warned that they lack enough cash to operate for the next 12 months without raising more money through debt or selling more shares.

4. Major Risks

• Cybersecurity: They handle sensitive patient data. They lack specific cyber-insurance, so a data breach could lead to massive legal costs and the loss of their research.
• "Side-Hustle" Leadership: Key executives and board members also work for Tiziana Life Sciences. This creates a conflict of interest, as these leaders divide their time between two different organizations.
• Regulatory Fragility: Their business depends on meeting FDA rules for lab tests. If the FDA tightens these rules, the company might need to run expensive, multi-year trials that exceed their current budget.
• The "Going Concern" Warning: Auditors have warned that the company might not survive. They acknowledge that they may never become profitable. Shareholders face a high risk of their ownership percentage being reduced if the company issues more shares to stay afloat.

5. Future Outlook

The company’s survival depends on finding lab partners to launch their tests. As they move toward commercialization, their expenses will grow. This will likely force them to raise more money, which could significantly reduce the value of your shares.

Final Thought: At this stage, the company is a high-risk research project that requires constant cash to stay alive. Because their cash reserves are critically low and they have yet to generate revenue, the primary question for any investor is whether the potential of their genomic tests outweighs the significant risk of dilution or insolvency.