Exousia Bio Faces Liquidity Crisis with Past-Due, Highly Dilutive Convertible Note

summarizeSummary

Exousia Bio, Inc. reported a going concern warning, no cash, and a past-due $250,000 convertible note with highly dilutive conversion terms, signaling severe financial distress.

check_boxKey Events

• Going Concern Warning Issued

  The company explicitly stated a going concern warning, reporting no cash and a working capital deficit of $261,023 as of February 28, 2026, raising substantial doubt about its ability to continue operations.

• Convertible Note Past Due with High Dilution Risk

  A $250,000 convertible promissory note, issued on January 20, 2026, matured on March 26, 2026, and is now past due. The note's conversion price can drop to 10% of the market price, potentially leading to over 10% dilution for existing shareholders if converted.

• 21 Million Shares Rescinded

  Effective March 14, 2026, 21,000,000 common shares previously issued in the Exousia AI acquisition were canceled due to a mistake of fact, reducing the total outstanding shares from 70,000,000 to 49,000,000 (before other adjustments).

• New IP License and Service Agreement

  Effective May 1, 2026, the company entered an exclusive intellectual property license agreement for a 6% royalty on net sales and a service agreement with ProgeniX Bio, Inc. for a monthly fee of $10,000, adding to cash burn.

auto_awesomeAnalysis

Exousia Bio, Inc. is in a critical financial state, explicitly stating a going concern warning due to no cash and a significant working capital deficit. The company has a $250,000 convertible promissory note that matured on March 26, 2026, and is now past due. The conversion terms are highly dilutive, with the price dropping to as low as 10% of the market price, potentially leading to over 10% dilution if converted. This immediate debt obligation, coupled with a new $10,000 monthly service fee for its biotech operations, poses a severe threat to the company's solvency and existing shareholder value. While 21,000,000 shares from a prior acquisition were rescinded, reducing overall dilution, it does not resolve the immediate liquidity and debt crisis.