Zacks Small Cap Research Press Releases

HOVR: Investing in the Full-Scale X7 Demonstrator While Navigating Choppy EVTOL Seas

Mon, 12 Oct 2026 14:55:00 -0400

NASDAQ: HOVR

On October 9th, before the market opened, New Horizon Aircraft (NASDAQ: HOVR) released its first quarter results for fiscal 2027 and held a conference call to update investors on its progress in building the full-scale Cavorite X7. The company remains on track to complete assembly of the full-scale Cavorite X7 within the next six months, which will be a key catalyst for investors to monitor. The company continues to pursue a prudent financing strategy, accessing the capital markets only when it views the terms as favorable. The company's CAD 70 million in cash balances (estimated at $50 million USD) and relatively low burn rate (estimated at CAD 2.4 million/month) provide its management team with significant flexibility to be patient when it comes to future financing.

We feel like there are two prospective catalysts for Horizon over the next six months. One will be the anticipated reveal of the completed full-scale prototype in the first quarter of calendar 2027, after which initial ground testing and taxi tests can begin. We think that the second potential catalyst will be any nondilutive financing secured by the company to further its development. We think this second point is underappreciated by the market.

The company has largely mitigated its near-term financing risks as a result of several capital raises in 2026, and while the company's shares have been treading water over the past three months, the stock has performed better than about half of its comps during that period, which has seen the share prices of several companies fall 30-70% during the quarter even though these companies are further along the development pipeline than Horizon.

As in previous quarters, the company's reported first-quarter results reflect the operating costs for the period, as it remains in pre-revenue development for the next several years. The company's first-quarter results reflected a sharp increase in R&D expenditures, with R&D costs rising CAD 4.7 million to CAD 7.4 million, up more than 170% from the same period in fiscal 2026. Engineering costs accounted for all of this increase, jumping from roughly CAD 5.1 million to CAD 5.3 million, which was partially offset by lower compensation costs. The company indicated on its quarterly conference call that it has increased its overall staffing from roughly 30 a year ago to 65 today, with roughly another 20 full-time equivalent positions contracted.

Cash used in operations was CAD 7.2 million in Q1, and with more than CAD 70 million on the balance sheet at 8/31/26 and a relatively slow uptick in expenses, the company appears to have adequate funding for operations for at least the next 24 months.

Given the company's current burn rate and cash balances, we do not anticipate any meaningful new share issuance until the end of fiscal 2028; however, the company has demonstrated that it will seek to raise funds when it views the terms as favorable, so investors should be aware that additional equity issuance could occur if market conditions were favorable.

Canadian Opportunities: We feel that the coming year could be very eventful for companies like Horizon that sit at the intersection of various industries poised to see marked increases in investment in Canada, including the sustainability, defense, and aerospace sectors. The federal government has prioritized domestic spending in these sectors, so the combination of additional spending with Canadian-based firms and an overall increase in spending should create several opportunities for Horizon. There are already several tax credit and research grant programs in effect that could provide additional funding for Horizon, but we think we could see even more opportunities when the Canadian federal budget for 2027 is finalized.

We would encourage investors to review our updated research report for a complete overview of the industry and our valuation for New Horizon Aircraft.

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GMEX: Emerging Robotics Strategy; Deploying 1st Order & Building Pipeline – Initiating Coverage

Thu, 08 Oct 2026 14:19:00 -0400

By M. Marin

NASDAQ: GMEX

READ THE FULL GMEX RESEARCH REPORT

GMEX developing technical infrastructure to support expansion into AI-enabled robotics

Technology company GMEX Robotics Corporation (NASDAQ: GMEX) is developing technical infrastructure to support its development and commercialization of AI-powered robotics and intelligent automation solutions. GMEX plans to serve core sectors where demand for robotics is strong and expected to grow. The company believes that it can draw on management’s expertise to oversee its strategic expansion and become an important player in the robotics space.

2026 is a transformational year as GMEX develops systems centered on actuation, sensor fusion, and machine learning (ML), among other key functions to enhance the utility of its robotics offerings. To advance its integrated "Terminal + Brain" closed-loop operating system that connects the mobility of robotics with the brain of AI, GMEX is creating a portfolio of automated solutions that operate in real-world settings.

Among various upgrades, GMEX introduced a proprietary modular vision sensor mounting structure, which is designed to eliminate maintenance bottlenecks in manufacturing and aligns with the company’s goal to offer turnkey solutions that are easy to implement, operate, and maintain.

GMEX is leveraging strategic M&A to complement its organic measures. The company plans to acquire a stake in MediaMeta.Ai to enhance its capabilities in social intelligence. MediaMeta develops AI designed to enable robots and technologies to understand social context. The pending acquisition is expected to add AI related to human behavioral modeling to enable robots to understand human social context and behavior and thereby improve robot-human collaborations and improve its commercial prospects as GMEX continues to move its solutions forward.

The company is expanding its leadership team and technical workforce to support its initiatives. GMEX recently appointed a new President of U.S. Operations, Brian Hartzband, to head its North American commercial expansion and develop strategic partnerships and customer relationships in the region. The company is designing its solutions portfolio to address multiple challenges facing – or expected to face in coming years – organizations operating in its target markets. Such challenges include, for example, labor shortages and quality control issues that hurt the reliability of manufacturing output, among other issues.

Initially, GMEX intends to focus on three core pillars: Consumer and Commercial Robotics; AI-Driven Hardware and Innovation & Ecosystem, to offer applications for supply chain and logistics services, collaborative and industrial automation, including in factories and warehouses, and resource exploration and excavation for the mining sector.

The GMEX platform addresses multiple challenges enterprises face, including labor shortages and variability in efficiency and productivity. In the hospitality sector, 87% of hotels reported staffing shortages in 2025. In production facilities, manufacturers face mounting issues hindering their ability to maximize output and quality consistency and minimize bottlenecks.

The company believes several recent milestones offer proof-of-concept that validate its strategy, including receiving its first deployment order with a leading Australian hospitality food and beverage group for the planned deployment of at least 50 intelligent kitchen robotics systems.

GMEX has also entered into a Letter of Intent to acquire an equity interest in a California-based company focused on physical AI connectivity solutions and wireless Systems-on-Chip (SoC) technology, which is expected to boost the performance of GMEX Robotics’ emerging Transportation & Logistics business.

The Total Addressable Market (TAM) for AI-enabled intelligent systems is sizable and characterized by growth. The hospitality sector, for example, “is experiencing a technological transformation,” according to a recent report that notes that “The Hospitality robots market reached $0.61 billion in 2025 and is expected to hit $1.84 billion by 2030.” On the industrial front, factory automation fleets continue to expand.

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LogicMark: Going Private Agreement Approved at Oct. 5 Special Stockholder Meeting

Thu, 08 Oct 2026 13:38:00 -0400

By M. Marin

READ THE FULL REPORT

LogicMark’s merger agreement to be acquired was approved at a special meeting of stockholders

LogicMark, Inc. provides personal safety and emergency response systems (PERS), health communications devices, and technology for the care and safety economy. The company had entered into a merger or “going private” agreement and scheduled a special meeting of stockholders on October 5, 2026, for stockholders to consider and vote on the proposal to adopt and approve a Plan of Merger, dated as of July 31, 2026, by and among Langham Project, LLC and LogicMark.

On October 5, 2026, the company held a special meeting of stockholders, and the proposal was approved to adopt the Plan of Merger. LogicMark has become a wholly owned subsidiary of Langham Project, and LogicMark shares will be delisted. The company’s current directors and executive officers will remain as the initial directors and executive officers. The per-share price of $1.31 for the Common Stock represents an approximately 156% premium to the closing price on July 31, 2026, the last trading day prior to the announcement of the agreement.

The premium is one factor that LogicMark’s board and a Special Committee evaluated when considering the transaction. Others included that the merger consideration consisted entirely of cash, providing stockholders with liquidity and certain value upon consummation. The company’s directors unanimously approved the Merger Agreement.

Moreover, management expects the new ownership structure will enable it to accelerate its growth measures. Such measures include innovating and expanding the product line, which is a key pillar of LogicMark’s growth strategy, as it transitions from hardware sales of legacy devices to proactive health monitoring devices and software solutions that can help prevent emergencies, falls, and other safety issues and enable people to remain independent safely. With more active lifestyles compared to earlier generations of people age 55 and over, clunky models that were offered in the past do not work for many, if not most, seniors.

The company operates in a space where demand for products is expected to grow, reflecting population trends. As baby boomers become seniors. The population of adults aged 65 and older is expected to jump dramatically over the next few years in what has been broadly described by Forbes and other publications as the Silver Tsunami. The aging of the population is expected to drive demand for technology services that can help people remain independent, improve their quality of life, and live at home. The latter is critical, as growing numbers of older adults report their desire to remain independent. For example, in March 2023, U.S. News & World Report surveyed 2,000 U.S. adults 55 and older and found that more than 90% of people 55+ want to age at home and remain in their communities.

In the U.S., 10,000 baby boomers turn 65 every day. Baby boomers represent a large and wealthy component of the U.S. population, comprising roughly 72 million adults. As they age, the implication is that there soon will be more older adults in the U.S. than people under the age of 18. Most baby boomers are expected to live independently, in turn driving demand for connected and remote monitoring devices. The need for monitoring tools is also expected to be driven by the dearth of healthcare workers, an issue that has been exacerbated by the pandemic. The Global Coalition on Aging forecasts that a national shortage of 151,000 care workers will exist In the U.S. by 2030 and a 355,000-caregiver shortfall is expected by 2040.

In 2021, the company introduced a new senior executive team charged with overseeing a transition to benefit from the market opportunity, position LogicMark as an innovator, and respond to the needs of a growing base of older active adults while concurrently serving the legacy market. Under new management, LogicMark is establishing a SaaS model and developing software and service solutions spanning a broad range of needs for its target market of older adults. The CEO has substantial technology industry experience in product development and launches. The company has made substantial strides, we believe, as evidenced by its growing product portfolio, product and service innovations and upgrades, rising revenue base, and expanding patent position.

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COSM Continues to Surge Revenue Growth

Wed, 07 Oct 2026 13:14:00 -0400

By Brad Sorensen, CFA

NASDAQ: COSM

READ THE FULL COSM RESEARCH REPORT

Cosmos Health (NASDAQ: COSM) provided investors with another encouraging operating update today, continuing to reinforce our belief in the growth prospects of the company, reporting preliminary revenue of approximately $54.3 million for the first nine months of 2026, a company record and a 19% increase from $45.6 million in the comparable period last year. Just as importantly, management reaffirmed its expectation that full-year revenue will exceed $90 million, which would represent approximately 38% growth from the record $65.3 million generated in 2025.

The results reinforce our view that Cosmos is moving beyond a period of building infrastructure and toward a phase where those investments are increasingly translating into measurable revenue growth. The company generated approximately $54.4 million in all of 2024, meaning revenue through the first nine months of 2026 is already nearly equal to the entire 2024 total.

We also appreciate that the growth has been relatively consistent, meaning to us that the company is building sustainable growth. Each of the first three quarters of 2026 established a revenue record for its respective period. Preliminary third-quarter revenue of approximately $17.4 million was modestly above the prior-year quarter, but that comparison comes against a strong Q3 2025, when revenue had already increased sharply from the year before. On a two-year basis, third-quarter revenue has risen meaningfully, supporting our belief that Cosmos is building from an increasingly higher revenue base.

One of the most important aspects of the announcement to us was that management attributed the nine-month growth to strength across multiple parts of the business, including pharmaceutical distribution, contract manufacturing and proprietary brands. This diversification is a key part of the investment thesis because the businesses complement one another and provide Cosmos with multiple avenues for growth.

Cana Laboratories may be especially important over the longer term. Cosmos recently reported that Cana's contract-manufacturing pipeline had expanded to more than 32.7 million units, representing more than $20 million of implied revenue over the lives of the underlying agreements. Because manufacturing can generate materially higher margins than traditional pharmaceutical distribution, continued growth at Cana could improve not only revenue but also the quality of Cosmos' earnings mix.

That margin opportunity is already beginning to show up in the company's financial results. In 2025, revenue increased 20% to $65.3 million, while gross profit increased substantially faster, rising 83% to $7.9 million. Gross margin improved to 12.1% from 7.9% a year earlier. If higher-margin contract manufacturing and proprietary products continue to represent a greater share of sales, Cosmos could potentially produce meaningful operating leverage as the business scales.

CosmoFarm also remains an important component of the overall strategy. Its pharmaceutical distribution network provides revenue scale and access to more than 1,500 pharmacies, while also giving Cosmos a commercial channel through which it can increasingly sell its own proprietary products. This creates the potential for a vertically integrated model in which the company develops or acquires products, manufactures them through Cana, and distributes them through its established network

The proprietary-products business is also becoming more geographically diversified, with Cosmos products now sold in more than 40 countries. The company continues to expand brands such as Sky Premium Life, C-Scrub, C-Sept and the 18 Series, while also pursuing U.S. growth opportunities. These products are important because proprietary brands can potentially generate higher margins and stronger long-term economics than third-party pharmaceutical distribution.

The most significant part of today's update, however, may be the reaffirmation of full-year revenue guidance above $90 million.

With approximately $54.3 million generated through the first nine months, Cosmos would need more than $35.7 million of fourth-quarter revenue to surpass that target. That represents a substantial step up from recent quarterly levels and therefore creates a meaningful execution hurdle. Management nevertheless expects the fourth quarter to be the strongest in company history, supported by contract-manufacturing orders, seasonal pharmaceutical demand and accelerating U.S. sales.

That makes the reaffirmed guidance particularly notable to us. Management has greater visibility into fourth-quarter activity now than it did earlier in the year, and its decision to maintain the $90 million-plus outlook suggests confidence in the current order book and sales pipeline. Investors should still treat the target as an important execution test, particularly because today's figures are preliminary and unaudited.

Overall, today's announcement strengthens the positive investment case for Cosmos Health. The company is demonstrating sustained revenue growth, broadening its product and geographic footprint and increasingly shifting toward businesses that could support higher margins.

If Cosmos exceeds $90 million of revenue in 2026, annual sales would have increased from approximately $54 million in 2024 to more than $90 million in only two years. That would represent roughly 65% cumulative growth over that period.

For investors comfortable with the risks associated with a small-cap healthcare company, today's update provides additional evidence that Cosmos' commercial platform is gaining traction. The revenue growth is increasingly tangible, and reaffirmed guidance suggests management believes the momentum can accelerate further through the end of the year.

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AEON: Initiating Coverage – Imitation is a Sincere Form of Flattery: Seeking a Botox Biosimilar

Mon, 05 Oct 2026 09:36:00 -0400

By John Vandermosten, CFA

NYSE: AEON

READ THE FULL AEON RESEARCH REPORT

We are initiating coverage of AEON Biopharma, Inc. (NYSE: AEON) with a valuation of $2.00 per share. This value is based on our estimates for successful development and commercialization of ABP-450, a botulinum toxinA (BoNT) similar to Botox and equivalent to Jeuveau, Nabota, and Nuceiva. AEON’s objective is to develop, obtain regulatory approval for, and commercialize a clinically substitutable therapeutic alternative to Botox. Botox has received approval for 16 indications in the United States and Europe. The lack of Botox biosimilars provides an opportunity for AEON to introduce ABP-450, a lower-cost alternative which may carve out share in a mature industry. Botox was first approved in 1989 for two eye-muscle disorders and later in 2002 for its first cosmetic indication.

BoNT is used in both aesthetic and therapeutic settings. Cosmetic applications comprise the majority of volume, with 7.8 million procedures performed by plastic surgeons worldwide.^[1] Therapeutic applications comprise about 40% of market size. The BoNT market was estimated to be anywhere from $6 to $10 billion in 2025 depending on the resource, suggesting a therapeutic market value of $3 to $4 billion. Global therapeutic use is estimated to be about 4.9 million procedures and $4.1 billion of market value^[2] in 2026. Annual growth for BoNT is expected to be from 7% to 8% over the next several years, with the therapeutic category generating faster growth. Market intelligence company Clarivate identifies chronic sialorrhea, off-label indications, and spasticity as the fastest growing groups.

We think an approved Botox biosimilar could perform well in the market given the large and growing demand base, financial incentives to shift to a lower cost alternative and improved provider and patient economics. Over the last two years, the FDA has moved towards a simpler regulatory pathway to approval for biosimilars. The agency has de-emphasized costly and lengthy comparative clinical efficacy trials and proposed the elimination of interchangeability switching studies along with an increased focus on analytical studies. The goal is to reduce development costs and increase access to competitive biosimilar products. AEON is more favorably positioned than other biosimilar developers. It holds a partnership with Daewoong, which is already manufacturing an FDA approved BoNT approved for aesthetic use. Daewoong’s position reduces both regulatory and commercial risk to AEON’s advancement of ABP-450. Furthermore, BoNT is cash pay in the aesthetic sphere and covered by payors in the therapeutic sphere, creating pricing discrepancies that can negatively impact therapeutic consumers. ABP-450 may solve this through separate pricing and J codes. These competitive advantages are material and position AEON to advance ABP-450 through the regulatory approval process.

While best known for its aesthetic use, Botox is approved to treat twelve therapeutic indications. It is most frequently prescribed for chronic migraine, spasticity, and cervical dystonia. Growth overall and in these indications has ranged from the high single digits to the low double digits. There is also the possibility that new indications could benefit from BoNT’s unique mechanism of action. Studies are either underway or have been conducted for broader coverage of migraine, essential tremor and back pain among other indications.

After injection into the muscle tissue, botulinum toxin is taken up by endocytosis into the cells and then enters the cytoplasm where it cleaves SNAP-25, which blocks neurotransmitter signals. The presence of the neurotoxic protein prevents acetylcholine and other transmitters from being released, thereby causing muscle paralysis or reduced secretion from glands. The effect lasts from three to twelve months, depending upon the condition, as nerve endings regrow and BoNT effects fade. The blockade has a local effect and does not travel far from the injection site. Side effects can include pain, swelling, and bruising at the injection site. Headache may also occur. Serious complications are rare, but may involve symptoms similar to an allergic reaction, vision problems, and loss of bladder control.

AEON has completed analytical studies demonstrating analytical similarity and clinical pharmacology. Analytical work has shown identical primary amino acid sequence between ABP-450 and the reference product, along with structural and functional comparability. Peptide-mapping methods increased the proportion of primary sequence coverage to 98% sequence coverage and 100% amino acid identity across all regions analyzed. The analysis further demonstrated preservation of the disulfide bond architecture required for toxin activation. In another study evaluating degradation under thermal and oxidative stress conditions between ABP-450 and Botox, comparable rates of potency loss and oxidization were measured across methionine sites. These results provide additional evidence of structural comparability in advance of the planned multi-lot comparability study.

AEON recently presented the next stage of its development plan. It expects to submit an investigational new drug (IND) application to the FDA in 4Q:26 followed by a pharmacodynamic (PD) study in 1Q:27. Management believes that it may provide sufficient support to proceed to a 351(k) application without a comparative efficacy study (CES). AEON will also conduct bridging studies for Botox and ABP-450’s comparative trials conducted by Daewoong.

We estimate that there will be approximately 6.1 million therapeutic BoNT 100-unit vials consumed in the United States in 2026, with volumes increasing at a high single-digit rate. For the purposes of our model, a unit is one 100-unit Botox vial of powder that is reconstituted before use. We rely on Clarivate data to guide our estimates and vet the figure by referencing Medicare pricing, Botox volumes, and estimated Botox share in dollars.

AEON’s balance sheet listed cash and equivalents of $3.4 million as of June 30^th, 2026, which was augmented by a net $13.6 million financing in July 2026. The deal includes warrants that could raise an additional $34 million if exercised. Based on our estimates, we believe this is sufficient cash to support operations into 1Q:27.

Daewoong manufactures ABP-450 for AEON and FDA-approved Jeuveau for Evolus. We see the risk of Chemistry, Manufacturing and Controls (CMC) observations during the regulatory review process as materially lower than for other biosimilar candidates. Our forecasts anticipate that if AEON is able to obtain approval for ABP-450, an established biopharmaceutical partner will acquire the company or asset. We reflect this assumption in our valuation and model. A Botox biosimilar should be very attractive for patients and providers based on historical biosimilar penetration, lower cost, greater access, full-label parity and improved economics that incentivize providers to switch.

An important background to our favorable view and thesis on ABP-450 relates to the recent shift in the FDA’s stance on biosimilars. The 351(k) biosimilar pathway governs the licensing and regulation of biological products. In June 2024, the agency issued draft guidance removing the recommendation for clinical switching studies to demonstrate interchangeability. As its view has evolved, later draft documents emphasized the need for analytical studies over clinical trials, citing data showing limited benefit and high cost from this approach. The agency is also moving away from switching studies and granting interchangeability along with approval. We believe these changes will materially reduce the time and cost necessary to gain 351(k) approval, with financial benefits accruing to shareholders.

Key reasons to own AEON Biopharma’s shares:

Developing ABP-450, a potential biosimilar and interchangeable alternative to Botox
- Identical product to already approved BoNT Jeuveau
- Biosimilar approval may open twelve therapeutic indications to ABP-450 use
- Reduced switching costs vs. non-Botox BoNT alternatives
- License for exclusive rights for commercialization in US, Canada, UK & EU
- Approval pathway forward elucidated by FDA Type 2b meeting minutes
Improved pricing and reimbursement as biosimilar
- Benefits from separate ASP calculation not diluted by aesthetics pricing
- Anticipated lower price vs. branded BoNT alternatives
Partnership with Daewoong
- FDA inspected and assessed manufacturing facility in South Korea
- Actively producing Jeuveau
- Sophisticated biologics facility with biohazard special handling
- Access to four head-to-head clinical studies demonstrating non-inferiority to Botox
ABP-450 approval provides access to $3.5 billion market
- Full label parity with Botox
- Clinical equivalence will allow for interchangeability
- Additional indications possible
Streamlined biosimilar regulatory pathway allows for faster approval & interchangeability
- FDA narrowing the requirements for biosimilar approval
- Potential for interchangeability to be granted along with agency approval
- Analytical work to date demonstrates 100% amino acid sequence identity to Botox
- High similarity for all five complex proteins between ABP-450 & Botox
- Type 2b meeting defines clinical requirements for biosimilarity

In our initiation report, we provide a historical background to the discovery of botulinum toxin and its source. It explains how researchers theorized about its therapeutic use and were eventually able to obtain FDA approval for the toxin’s use to treat strabismus and blepharospasm. The report presents a description of BoNT, its Clostridium botulinum source and the toxin’s mechanism of action. We look at BoNT side effects and review other determinants when considering therapeutic use of BoNT.

The following section dives into AEON’s pipeline candidate, ABP-450. We look at former studies that were conducted to evaluate the biologic spanning from AEON-generated clinical trials, to analytical studies that have been completed. We review the clinical trials run by Evolus for Jeuveau and also examine the head-to-head trials that were sponsored by Daewoong comparing ABP-450 to Botox in several key indications along with AEON’s own clinical trials in cervical dystonia and headache. One of our most relevant sections addresses the 351(k) biosimilar pathway and the recent changes that are being advanced by the FDA and contemplated by Congress to streamline the biosimilar approval process.

The report then looks at peers and competitors in the BoNT space, reviewing business focus, transactions and other recent events. We include an exhibit that summarizes each of the relevant companies in the space and their business focus along with market information. Our corporate review of AEON summarizes historical milestones for the company and forecasts anticipated clinical and regulatory goals. We provide a narrative that explains AEON’s many relationships, studies completed and path forward to approval for ABP-450. We include management profiles, a review of risks for both the industry and for AEON specifically, and close with our valuation and the assumptions behind our model. Our work generates a valuation of $2.00 per share for AEON Biopharma, Inc. See our full report for comprehensive details.

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^[1]^{International Society of Aesthetic Plastic Surgery (ISAPS) 2024 Global Survey on Aesthetic/Cosmetic Procedures.}

^{[2] Clarivate Market Insights. Therapeutic Botulinum Toxin, December 2025. (p. 44 & 47)}

MRDN: As Brazil Bans Gaming, Expect MRDN to Maintain Growth Initiatives in Other Markets

Fri, 02 Oct 2026 17:07:00 -0400

By M. Marin

NASDAQ: MRDN

READ THE FULL MRDN RESEARCH REPORT

BENEFITS OF GEOGRAPHIC DIVERSIFICATION STRATEGY

As Brazil moves to ban gaming, expect MRDN to maintain growth initiatives in other regions

Among Meridian Holdings’ (NASDAQ: MRDN) core strategies is its goal to diversify its revenue base across geographic markets, by operating segment and by channel. MRDN views the diversification of its operations across both B2B and B2C channels and geographic markets as a competitive advantage that also protects the company from contractions or interruptions in any single market or channel. We believe the benefits of its diversification are particularly evident as Brazil moves to ban online gaming.

Believe benefits of core diversification strategy particularly evident as Brazil moves to ban gaming

On September 25, the country’s president signed an order banning online gaming that took effect immediately but will expire within 60 days unless approved by Congress. Operators have expressed their intentions to challenge the order through legal routes, with trade bodies already bringing action to the Supreme Court. While research indicates that public support for the ban appears to be strong – research conducted by Bloomberg and AtlasIntel showed that 75% of the public agreed with it – it is expected to have negative consequences for the country’s economy.

Brazil’s regulated market is estimated at ~ $7.7 billion according to H2 Gambling Capital data, leading to about $1.87 billion in federal taxes paid in the January to August 2026 period. Moreover, the sector is estimated to employ about thousands. At the same time, a myriad of illegal gaming sites have apparently been created since the provisional ban went into effect. Given these factors, as well as vocal opposition from many of Brazil’s football clubs, there is a possibility, we believe, that the ban could be overturned.

Not expected to have material impact; expect expansion measures in multiple other markets

Nevertheless, it is notable that this is not expected to have a material near-term financial impact on MRDN. The company’s operations in Brazil are still ramping up and, reflecting costs to launch and grow operations, we believe margins likely are not at the level of those in more mature markets where MRDN operates. As we have noted in previous reports, although we have viewed Brazil as a potentially significant opportunity, the market is still in extremely early stages.

The company continues to advance its strategy to expand its global footprint, which is a core objective, as noted. As it implements expected growth measures, MRDN intends to prioritize expansion into new regulated markets, including Latin America and Europe, enhance AI-driven gaming innovation and boost operational efficiencies.

Examples include recent acquisition of Fairbet in Malta & sponsorship and also Expanse Studios’ strategic distribution agreement in Serbia

For example, Meridianbet recently acquired Fairbet Ltd., a licensed retail gaming operator in Malta. As a result of the transaction, Meridianbet holds 100% ownership of Fairbet’s operations across Malta and Gozo, adding nine new retail locations and bringing its footprint in the market to 20 total storefronts integrated under the Meridianbet brand. The company’s strategy regarding M&A has been to prioritize acquisitions in high-barrier markets where limited licensing to create structural competitive advantages. According to the company, Malta’s retail gaming sector operates under one of Europe’s most stringent regulatory frameworks. Only three licenses have been granted, and with the Fairbet acquisition, Meridianbet now holds two of the market’s three retail licenses. The other license is held by Izibet, the National Lottery operator.

Another recent example was MRDN’s sponsorship as an Official Partner of UFC Fight Night Serbia, the first MMA (mixed martial arts) event the Ultimate Fighting Championship (UFC) ever held in Serbia, which took place on August 1, 2026, at Belgrade’s Belgrade Arena. Meridianbet was founded in Serbia in 2001 and has operated in the market continuously since then. Moreover, such measures are consistent with Meridian’s promotional activities aligning its brand with high-profile sports figures or brands.

MRDN noted that the Meridianbet partnership with UFC, part of TKO Group Holdings, marks its highest-profile alignment with a global sports brand thus far, although Meridianbet has sponsored combat sports for years. UFC is a globally recognized MMA organization. Its more than 40 annual live events are distributed to an estimated one billion broadcast and digital households across 210 countries and territories, and its MMA athletes represent 75+ countries. These sponsorships come as Meridian continues to advance its B2B and B2C expansion strategy and as core Meridianbet operations continue to scale.

In addition, Expanse Studios, the company's proprietary game studio, continues to expand its content and distribution footprint. Expanse Studios recently signed a strategic distribution agreement with MaxBet, one of Serbia’s leading omni-channel gaming operators and a subsidiary of Flutter Entertainment plc (NYSE: FLUT, nr). Expanse also launched with new distribution partners such as MaxBet Serbia (part of Flutter Entertainment), Synottip, and Joker.lv, while also entering a North American distribution partnership with Bragg Gaming. Expanse Studios is a leading B2B iGaming content provider that specializes in slots, crash games, turn-based strategies, and card games. Expanse has a growing portfolio of more than 70 proprietary titles and 1,500+ casino brands across Europe, LATAM, and North America. The studio secured certifications in Latvia, Colombia, Portugal, and Slovenia, and enhanced player engagement with the launch of jackpots, tournaments, and its Achievo gamification platform. Reflecting expanded footprint and content access, Expanse 2Q26 revenue advanced 138% year-over-year and gross gaming revenue rose 90%.

We expect the company to remain focused on growth, organically and using strategic M&A that prioritizes acquisitions in high-barrier markets with limited licensing to complement organic growth. The company’s goal is to continue initiatives aimed at retention, repeat-deposit activity, and revenue contribution of the expanding customer base for conversion and retention of this base, to leverage its ongoing momentum. The company also expects to boost potential casino cross-selling opportunities.

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NCTY: Building an AI-Powered Ecosystem Around AI-Game Creation & Digital Asset Incentives

Fri, 02 Oct 2026 13:24:00 -0400

By M. Marin

NASDAQ: NCTY

READ THE FULL NCTY RESEARCH REPORT

Flagship platform, the9bit AI-powered digital asset ecosystem, is built around AI game creation & $9BIT token economy

The9 Limited (NASDAQ: NCTY) is a technology company that has operated in the traditional online gaming space for more than two decades and is now leveraging that expertise to develop an AI-powered digital asset ecosystem built around AI game creation. The company incentivizes participation from players and creators through reward points convertible into digital coins.

$9BIT is the native token of the ecosystem with a stated max supply of 10B coins

Participants earn points they can convert into $9BIT tokens. By engaging within the ecosystem, players and creators earn points that can be converted into NCTY’s proprietary $9BIT tokens. Participants need $9BIT to generate and publish AI-created games, unlock advanced features, and join revenue-sharing pools for AI-generated games. The fixed supply of $9BIT coins, stated at a maximum of 10B, is aimed at retaining the coin’s value.

Since launching its new the9bit ecosystem in August 2025, the platform has attracted 8M+ registered users and added 180,000+ user-generated games. The company has indicated that these metrics have subsequently climbed higher. User-generated content (UGC) is expected to further expand the games library, particularly as AI lowers costs and technical barriers to creating games on the the9bit platform.

Growing network of brand partnerships across various Southeast Asian markets under strategy to integrate digital entertainment and B&M retail via an O2O – online-to-offline – business model

Reflecting a young, digitally adept population that generally is familiar with play-to-earn gaming models, NCTY’s initial focus markets are in Southeast Asia, where NCTY is developing a network of brand partnerships under a strategy to integrate digital entertainment and bricks & mortar (BM) retail via an online-to-offline (O2O) business model.

Marketing revenue from brand partners complements gaming platform revenue. To date, the9bit has signed agreements with 41 brands across the region, with an additional 127 in the pipeline. These are paid engagements that represent a marketing-services revenue stream that is complementary to revenue generated from the consumer gaming platform and which the9bit expects will continue to grow.

NCTY expects the O2O model can generate value for both partners. NCTY is encouraged by early indicators that the O2O model can generate value for both brand partners and extend the company’s engagement with users beyond the the9bit ecosystem. During periods activating brand partners, the platform averaged ~120k daily active users across the region.

Market interest in the emerging 9BIT ecosystem appears to be growing. Since NCTY started partnership marketing activities in late May 2026, the $9BIT token has appreciated from about US$0.037 to US$0.069, which the company attributes to growing market interest in its emerging ecosystem. (BTC has appreciated over the same period.)

The9Bit cites third-party estimates projecting the global UGC platform market will grow from $12.3 billion in 2026 to $55 billion by 2033, a CAGR of 23.9%, implying that the target addressable market (TAM) opportunity is substantial.

The9 also holds a stake in NYB, which uses AI to facilitate the discovery of novel natural compound drug candidates, as part of a strategy to invest in AI-driven vehicles opportunistically. With a Nasdaq listing pending, NCTY expects to retain a roughly 15% to 16% stake of NYB.

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CEO Chat with Jay Chandan, Chairman and CEO of Gorilla Technology

Thu, 01 Oct 2026 16:10:00 -0400

NASDAQ: GRRR

Brian Lantier: Good morning. My name is Brian Lantier. I'm a senior research analyst with Zacks Small Cap Research, and thank you for joining us for another one of our CEO Chats. Today I'm thrilled to be joined by Jay Chandan, the CEO and Chairman at Gorilla Technology (NASDAQ: GRRR). Gorilla Technology, for those that don't know, is an AI security-powered analytics firm, and they're rapidly expanding into the AI infrastructure and data center markets, which is probably going to be the focus of most of our conversation today. Shares of Gorilla currently trade at about $14 a share, and I have what I feel is a fairly conservative target of $24 on the shares currently. Welcome, Jay, and thank you for joining us.

Jay Chandan: Brian, thank you for having me. $24 is way too conservative! [laughs]

BL: [laughs] That's a good thing for us to talk about. As I alluded to in the opening, you're in the midst of this meaningful transformation to focus on AI infrastructure, though you did just announce a nice little contract last week in the AI security market, which maybe you could touch on. Can you walk investors who are new to the story through the business as you see it today, and what drove the decision to really focus on the AI infrastructure market going forward?

JC: Absolutely, Brian. Once again, thank you for having me. For those who don't know Gorilla, we started out as an edge AI specialist: video analytics, big data, data intelligence, post-event analytics. We kind of morphed into cybersecurity, video, smart city technologies, and so on and so forth. But what most people don't realize is that as we started working in smart city technologies over the last 14 years, we've built a whole bunch of data centers for sovereigns. As you know, 98% to 99% of our customers are government customers across the world, ranging all the way from the US to Japan.

Now, the foundation remains as is. We're building more infrastructure underneath. Whether it's AI compute, whether it's GPU as a service, whether it's sovereign AI, or whether it's data centers, we have not abandoned our software, Brian. We are simply making it a little more what I call niche, rather than becoming more of what comes underneath it.

Now, as I think people have seen the growth story of Gorilla, we've gone from being a $22 million company to $74 million, give or take, in 2024. In 2025, we hit about $101 million. This year we're about to be $200 million. Next year, we've got a big challenge ahead of us, and we're anticipating to actually better that challenge. The commercial scale has actually increased quite significantly as well. Our contracts have gotten bigger. A contract with Yotta in India is about $3+ billion, and a contract in Indonesia is about $2.5 billion. These are all multiyear programs. I think most people have forgotten that in the first interview I did after we went public, I said I wanted to take this from a project-based business to a long-term, predictable revenue business. And today, lo and behold, I can tell you more than 90% of our business is long-term, predictable revenue.

Now, we touched upon the contracts which we recently signed, and that goes back to our foundation. We haven't abandoned our foundation. We recently won the extension of a 5G lawful interception contract with the largest criminal investigation bureau in Taiwan. That covers all of the networks across the region, and we'll be providing more insights into that over the next few weeks and months as we evolve into the project as well.

The strategic logic for us is to participate across all of the AI infrastructure layers, whether it's compute, software, integrated services, or just building the entire infrastructure for the customer, rather than just selling one layer today. Think about it this way: our business is growing larger because of the infrastructure we're building, but we're not discarding where we are.

BL: That's a great way to frame the discussion around Gorilla, because I think there is still some confusion in the marketplace. A couple of the major projects that we've talked about in the past, obviously Yotta, which you mentioned, and NeutraDC, are the ones that are really going to drive a lot of the growth in the next couple of years. Could you give us an update on where you stand with those contracts and what you see the next major milestones being?

JC: Absolutely, Brian. On the Yotta 1 project, which is in Navi Mumbai, surprise, surprise, we've actually started delivering, and we are now testing and installing our GPUs in Mumbai. This is well ahead of schedule. This is about 5,120 GPUs that need to be delivered, and I think all of the delivery should be done by the second week of October. Testing has commenced, equipment deliveries are well underway, and more importantly, deployment has commenced. That's number one.

On the Yotta 2 project, we have 20,736 NVIDIA B300 GPUs. That is the broader procurement arrangement we have had with Supermicro. What is also very important is that Supermicro has already started manufacturing all of those. The first delivery should be coming between the 15th and the 20th of October, and there are no delays there. In fact, we're anticipating them to be earlier. As committed to our friends at NVIDIA, we have to deliver and deploy all of them by the end of November, and this was part of our earnings release as well.

On the Indonesia side, we have to deliver the first 300 servers by the end of November and the rest of them in the first quarter of next year. We're going to complete all of the deployment by January of next year, so we're also ahead of schedule there. Now, think about it this way: these are the two projects which have about $5.5 billion of announced revenue value, but the conversion depends on delivery, site readiness, commissioning, acceptance, utilization, and billing. Most importantly, it's not about what I call a lovely press release going forward. It's about getting installed and getting paid.

BL: It sounds like it's going to be a very busy time over the next four to six weeks for you. One of the questions that comes up frequently when we talk about not just Gorilla, but anyone in this space, is financing and how you're going to finance these significant projects. I think your approach is unique, so maybe you could talk about how your financing strategy differs from some of the other approaches in the market.

JC: Absolutely, Brian. We're very unique, and I think we pride ourselves on that. We're a bunch of tech geeks, or tech guys as we call ourselves, with a whole lot of financing background. I don't know if most people realize, but I've invested in more than 500 companies in my lifetime, and that's in the last 15 or 16 years. What is unique is that we use corporate capital to unlock the projects, but at the same time, we also bring asset-level financing and support scale. Let me expand on that.

We raised about $232 million from June to July in bond financing, which the market obviously did not understand. But at the same time, we also received a whole bunch of net cash from our customers, which allowed us to be a little more fluid and liquid. Fast forward, come June, we had more than $299.5 million of cash. We deployed more than $270 million of that into advance payments for Yotta 1, Yotta 2, and the Batam project as well.

Now, this is where it gets interesting. We have to fund another $1.5 billion to $1.6 billion. We're doing what is called vendor financing. We're currently looking at bonds, and we're looking at funding through Gorilla Technology Capital. I think a lot of people have discounted that. They don't understand what we're trying to do there. What we're trying to do with Gorilla Technology Capital is go after long-term, patient capital, which effectively means that we'll be looking at raising between $2 billion and $3 billion over the next 12 to 18 months. The team is already deeply involved in setting up the structures in Singapore, because we're going to be headquartering these structures in Singapore, whether it's a QDS system or a VCC system.

Once we have received the capital, we'll be deploying it to close all of our deployments in Indonesia and India, and then we will go to the next round of fundraising for our Korat project, which is in Thailand. We are very excited about that as well, because that will give rise to roughly another $20 billion to $25 billion of revenue, which we're going after right now.

The test for us should be: can we generate more sustainable shareholder value without diluting the shareholders? Can we be better at the financing costs? Yes, of course we can. We've just gone through a credit rating with Fitch, and I think you've seen that we've received a B- with a positive outlook. We're now going through ratings at the project level as well, which will probably be much higher than where we are. We're excited about this, and we're looking at multiple agencies to potentially rate us as we go through this journey. We believe that a GPU will not just produce money the day it is deployed. It takes time. We have to manage the financing costs and make sure that we're able to balance the risk.

BL: That's really exciting to hear from you directly how that financing is going to come together, because it is going to be a challenge for sure. But your background and experience there are definitely going to play a big role in ensuring that the market recognizes that. You and CFO Bruce Bower have talked a lot about the inflection coming in your gross margin as the infrastructure business becomes a more significant part of your overall business. When do you think that margin inflection is going to start showing up meaningfully in your results?

JC: That's a great question, Brian. H1 2026 was kind of the turning point, where we had to deploy a lot more assets than we needed. As you've seen, we've hired a whole bunch of new people. We've gone from 250 full-time employees to now 500+ employees, including contractors and so on. We're going to go up to a thousand people by the middle of next year, so there's a lot of investment happening.

Now, the explanation for the market is that you have to look at what is called the revenue mix. It's the hardware, the initial deployment, the project mobilization, and so on and so forth. These activities establish what is called an installed base. These initially have a lower margin, and as the GPUs come to life, the recurring compute, monitoring, and managed services pieces kick in. As we go through that, customers start deploying, and we are looking at 99.5% delivery. Once we've done that, the higher-margin revenue will follow as the equipment is commissioned and accepted and the customers start using it. If I was sitting with a GPU crate without plugging it in, I'd be looking at very expensive furniture, right?

If you look at where we are today and where the inflection point is, it will be toward the latter part of H2 2026, and then it will pick up and start going into steady state in the first, second, and third quarters of 2027. Now, the indicators to watch at that point will be: What is the total commissioned capacity? What are the customer workloads? And more importantly, what does utilization look like? I don't want any utilization less than 99.5%, so I would make sure that we are delivering to the fullest extent of our capability and at the behest of the customer.

BL: That's well said. I appreciate that. I think it's a good goal. It's an ambitious target to have, but I think most people that know you know that you're going to set pretty ambitious goals and targets.

JC: We try.

BL: This is a unique opportunity for our investors, and for me personally, to talk directly to a management team, and that is really the reason why we host these chats. Could you talk about your strategic vision and where you see the company heading? Right now, you're building AI infrastructure to be owned and also infrastructure for others. What is the mix that you foresee out three to five years for the business, and will you be tweaking it as the market demands?

JC: Brian, our vision is big. It's really bold. The value proposition is not just having a simple operating platform. It's not just having what I call a collection of equipment and invoices. For us, the most important thing, and we talked about it a couple of weeks ago, is execution, execution, execution. Delivery matters, customer acceptance matters, utilization will matter, and cash collection will matter. As we evolve as a business, we're seeing our evolution in the shape of larger AI infrastructure programs.

I'm just going to step back. We talked about the 5G lawful interception program previously. That is infrastructure which we are building for the customer. We intend to participate in the entire infrastructure lifecycle, whether it's development, assets, compute, recurring software, or building all the services around them.

Now, one of the things I would like to highlight is that we've actually procured our own land with about 218 megawatts of facility, so you're looking at roughly 200+ megawatts. We've just about selected our partner who's going to help us build that data center. We're looking at about 12 to 18 months to close all of the 200 megawatts of build capacity. We're also going to be bringing in a whole bunch of institutional capital. As I mentioned, we're looking at about $2 billion to $3 billion raised by Gorilla Technology Capital. We'll be going to the bond market, and we'll be going through further rounds of project financing and so on.

So, what is our inflection point, especially from the business perspective? We talked about the profitability perspective. I want to make sure that we are moving from the 20 megawatts we have signed in Indonesia to a 200-megawatt campus in Thailand, and we're about to take on another 400 megawatts as we speak. I can let the market compute what those revenues could look like. But if you're looking at standard B300, GB300, and potentially the next generation of Vera Rubin, or working very closely with the likes of Cerebras or AMD Helios, we're looking at anything between $55 billion and $75 billion of revenue, right? I'm not saying that I'm targeting that as a number. I don't want the market to say, "My God, he gave me these big numbers, and he's going to go after it." But that's an ambition. You talked about big ambition.

We've already signed up, as you've seen, 20 megawatts and 200 megawatts, and we're about to close 400 megawatts. We're going to continue building all of this between the end of 2026, 2027, and 2028. Our approach is phased development, making sure that we fulfill our customer commitments and not just announcing capacity. We're announcing capacity with the financing already in place.

BL: That's an important part in this press release-driven world. Having the follow-up behind that is definitely what investors are looking for. If we have another one of these conversations in 12 to 18 months, what sort of milestones would you be pointing to and say, "We've actually delivered on what we said we were going to when we had the conversation in 2026"?

JC: First of all, I think people should look at it and say, "These guys said $137 million to $200 million, and they've actually gone to the higher end of it, which is $200 million by the end of this year." For 2027, we're planning anything between $450 million and $500 million. We made that very clear to the market. Compare a company that was about $22 million two and a half years ago going up to about $500 million. That's a decent jump in terms of revenue.

If you look at where we are today, that equates to an average quarterly revenue of roughly $110 million to $127 million, compared to $50 million in Q2 2026. It's not a target alone, and it's not a statement. It is revenue contracted. This is a very important term, which I will use over and over again.

The first milestone I am focused on is substantially delivering all the capacity we have contracted and commissioned. Number two is making sure that our customers are accepting all of that capacity and migrating all of their workloads. And the most important, third, is rising utilization, so that we can convert that into recurring cash and, more importantly, profitability.

I want investors to judge us on how we're delivering the equipment, when we're delivering the equipment, whether we're on time, capacity accepted by these customers, revenue recognized over the next 12 months, margins, which we talked about briefly, and more importantly, how much cash we're generating. One thing I can guarantee you: every quarter going forward from Q2 or Q3 of next year, we'll be generating cash hand over fist. That's the plan. We've always been very focused on cash generation. I think those will be the announcements the market needs to be focusing on.

BL: That's a perfect thing to circle back to in 12 to 18 months. We'll have a conversation about where you stand with cash generation. I think that's a great note to end on. Jay, thank you again for walking us through this very compelling story. There aren't a lot of small-cap companies that we cover that are looking at the growth rates that you're targeting, so this is a very exciting story. I would encourage all of our investors to take some time and read the research. You can find it on our website, scr.zacks.com, or reach out to me directly. Jay, again, thank you so much for spending some time with us. I really appreciate it.

JC: Brian, it's an absolute pleasure. Thank you very much for having me.

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DISCLOSURE: Zacks Investment Awareness (ZIA) is a Zacks SCR product. The Zacks SCR analyst conducting this Chat hereby certifies that the views expressed accurately reflect the personal views of the analyst about the subject securities and issuer. Zacks SCR certifies that no part of any analyst’s compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this Chat. Zacks SCR believes the information used for the creation of this Chat has been obtained from sources considered to be reliable, but we can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice. This text is not a verbatim transcript. This transcript has been edited and does not reflect the video-recording exactly. You may find the video recording in its entirety here. Full Disclaimer HERE.

IMNN: R&D Day Highlights IMNN-001 Data in Frontline Ovarian Cancer

Thu, 01 Oct 2026 15:40:00 -0400

By David Bautz, PhD

NASDAQ: IMNN

READ THE FULL IMNN RESEARCH REPORT

Business Update

R&D Day Highlights IMNN-001 in Advanced Ovarian Cancer

On September 23, 2026, Imunon, Inc. (NASDAQ: IMNN) held an R&D Day to discuss the IMNN-001 program, which included a discussion on the use of localized IL-12 in cancer therapy, translational data that showed IMNN-001 is preferentially taken up by macrophages that leads to local IL-12 expression and remodeling of the tumor microenvironment, final data from the OVATION 2 trial that showed median overall survival was 45.1 months with IMNN-001 plus chemotherapy compared to 30.4 months with chemotherapy alone, and an update on the OVATION 3 trial that includes an enrollment rate of approximately 0.5 patients per site per month compared to a 0.3 planning assumption. There was also a pre-recorded conversation that featured a participant from the OVATION 1 trial, who reported she is now almost 10 years from diagnosis and reports remaining free of cancer recurrence.

Resurrecting IL-12: Overcoming Historical Barriers with Targeted TheraPlas™ Delivery of IMNN-001

Dr. Douglas Faller, Imunon’s Chief Medical Officer, provided an overview of IL-12 biology and its role in antitumor biology. Importantly, IL-12 affects both innate and acquired immunity through activation of monocytes, macrophages, dendritic cells, neutrophils, natural killer cells, T cells, and B cells, thus making it a powerful modifier of immune activity.

IL-12 was previously tested as a cancer therapeutic; however, its systemic use was halted following two patient deaths in clinical trials in the late 1990’s. A number of follow-up trials were attempted; however, there was no meaningful benefit noted due to dose-limiting toxicities. Thus, while IL-12 is a very powerful anti-cancer agent, systemic use of the compound isn’t currently possible, and localized delivery is necessary to manage its side effect profile. IMNN-001 has an IL-12 expression vector that is injected into the intraperitoneal cavity where localized expression of IL-12 occurs. This is supported by translational data that shows increased expression of IL-12 along with changes in immune stimulatory and suppression markers from patients treated with IMNN-001 from the Phase 1 and 2 clinical trials, as shown in the following figure.

Dr. Faller also highlighted the consistent safety profile of IMNN-001 that has been seen in clinical trials thus far, which includes no cytokine release syndrome, no serious systemic toxicity, no immune-related adverse events, and two independent safety monitoring committee (IDMC) recommendations to continue the OVATION.3 and Measurable Residual Disease (MRD) study without modification, as there were no safety concerns for either study.

Phase II Randomized Translation Study of Clinical and Biological Changes Induced by IMNN-001 (MRD) Phase in Advanced Stage High Grade Serous Ovarian Cancer

Dr. Amir Jazaeri, the lead principal investigator of the Phase 2 MRD study, presented preliminary clinical and translational findings from the MRD study, in which patients are treated with standard of care chemotherapy and bevacizumab (Avastin^®) with and without IMNN-001. The primary outcome of the study is MRD as detected by second-look laparoscopy. Thus far, in the intent-to-treat (ITT) population, the MRD positive rate in the IMNN-001 treatment arm (44.4%, 4/9) was lower than the control arm (66.7%, 6/9). In addition, the rate of circulating tumor DNA (ctDNA) clearance was higher in the treatment arm (87.5%, 7/8) than the control arm (62.5%, 5/8). One patient from each cohort did not have ctDNA collection. While the numbers are too small for statistical analysis, there does appear to be a favorable trend in recurrence-free survival (RFS), which is twice as long in the IMNN-001 cohort compared to the control cohort.

Dr. Jazaeri also shared translational data from the study that showed macrophages are the primary cell type that expresses IL-12 following treatment with IMNN-001, along with some expression from cancer-associated fibroblasts (CAF). There was also evidence of localized IL-12 expression causing remodeling of the tumor microenvironment, as shown in the following tumor sample images from three patients on the left. The samples were stained to show the different cell types present in the tumor, with the samples showing infiltration by lymphocytes (light blue) and macrophages (green). The image on the right shows IL-12 expression in relation to the location of the different cell types, with the highest expression of IL-12 seen where macrophages are present.

The MRD study is continuing to enroll patients, and we anticipate the first abstract from the study being presented in 2027.

Advancing Frontline Efficacy: Translating OVATION 2 Overall Survival Signals into Pivotal Phase 3 OVATION 3

Dr. Premal Thaker, the study chair of the OVATION 2 and OVATION 3 studies, presented the final data from the OVATION 2 trial and noted that if replicated in the OVATION 3 trial, IMNN-001 would likely be included in the global standard of care for newly diagnosed, advanced ovarian cancer patients. The following plots show the 14.7-month improvement in median overall survival (mOS) for patients treated with IMNN-001 in the OVATION 2 trial, with those also on PARPi therapy showing an even more dramatic 24.2 month increase in mOS compared to standard of care.

In addition to the positive mOS result, treatment with IMNN-001 showed a consistent positive effect across a number of subgroups and endpoints, as shown in the following image. For example, all subgroup analyses for OS and progression-free survival (PFS) showed results that favored treatment with IMNN-001. This was also true for secondary endpoints such as R0 surgical response, chemotherapy response score, and response rate. This level of consistent signals favoring IMNN-001 provides additional evidence that the results seen in the OVATION 2 trial are meaningful and less likely to be due to random chance.

Dr. Thaker also provided an overview of the OVATION 3 trial, with the study design shown below. Thus far, the trial is off to a strong start, as exemplified by the rapid pace of site activation and patient enrollment. Currently, the study is averaging approximately 0.5 patients per site per month, compared to the industry standard of approximately 0.3 patients per site per month and the 0.2 patients per site per month that were seen in the OVATION 2 trial. We believe this enhanced pace of enrollment is being driven by a combination of factors, including the very promising OS results seen in OVATION 2 along with the biomarker data that supports the mechanism of action for IMNN-001.

Clinical Experience with IMNN-001

Lastly, there was a pre-recorded video interview conducted by Dr. William Bradley, who was a principal investigator in all three OVATION trials, with a patient that participated in the OVATION 1 study. The participant shared her journey from discovering she had ovarian cancer to being treated with IMNN-001 in the OVATION 1 trial to the years that have followed since the study. Notably, she explained that it is now almost 10 years since her initial diagnosis, and she reported remaining free of cancer recurrence.

Conclusion

Imunon’s R&D day provided an in-depth overview of IMNN-001 and its potential in treating front-line advanced ovarian cancer, and we encourage investors to watch the full program, which can be found here. The impressive OS results from OVATION 2, combined with the encouraging safety profile, support the idea that IMNN-001 could become the new standard of care for treating advanced ovarian cancer if the results can be replicated in the OVATION 3 trial. With no changes to our model, our valuation remains at $25 per share.

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YOUL: Initiation of China’s Largest Blue-Collar Lifetime Service Platform

Wed, 30 Sep 2026 10:03:00 -0400

By Tom Kerr, CFA

NASDAQ: YOUL

READ THE FULL YOUL RESEARCH REPORT

Youlife (NASDAQ: YOUL) is a leading technology-enabled blue-collar lifetime service platform in China, providing services across the career and life cycle of blue-collar workers. Its integrated platform comprises four core businesses: vocational education, HR recruitment, employee management, and market services, helping workers develop skills, find employment, advance their careers, and improve their quality of life. According to CIC, Youlife was China’s largest blue-collar lifetime service platform by revenue in 2025.

Youlife is also China’s largest vocational education management service provider by number of vocational schools under management for the 2025–2026 school year, according to CIC. It currently has agreements to manage approximately 37 vocational schools, providing talent development planning, curriculum design, faculty training, student management, and career guidance. The company also operated 21 curriculum development projects and completed smart campus projects at 10 schools, with projects spanning 37 cities and counties across 16 provinces. Its HR recruitment business combines technology with a nationwide network of offline service sites to provide tailored, multi-channel recruitment solutions, while its employee management business provides flexible HR solutions, including labor outsourcing, and ranks as China’s largest blue-collar employee management provider by blue-collar service revenue, according to CIC.

The four businesses are designed to complement one another, enabling Youlife to serve workers and corporate customers across the full employment life cycle. The company was an early entrant into blue-collar market services and has capitalized on its industry expertise and broad customer and service network to expand beyond education and recruitment. Its market position and service capabilities have earned numerous industry awards, including Top 100 Human Resource Service Provider recognition for five consecutive years from 2021–2025, along with awards for digital HR technology, innovation, and vocational education. Youlife has maintained steady revenue growth by addressing unmet demand in China’s expanding blue-collar services market, despite the disruption caused by COVID-19.

Valuation

We believe Youlife can generate double-digit revenue growth over the next 5-10 years through organic growth and accretive acquisitions. We believe gross margins can reach the mid-teens range and over the long-term approach 20%. The Youlife businesses are considered asset light and do not consume high levels of capital expenditures.

Our primary valuation tool utilizes a Discounted Cash Flow process. Under the scenario described above, we arrive at a target valuation of $2.00 per share. Our target price may be conservative as it incorporates a high discount rate of 12.5% due to the unpredictability of earnings, prevailing interest rates, and the timeline for reaching its margin goals on an annual basis.

We also use forward EV/sales multiples to validate our target price. The average 2027 EV/sales multiple for two major staffing and workforce solution companies is 0.34x. The two peer comps include Adecco (ADEN) and Randstad (RAND). That would provide a relative valuation of approximately $1.50 per share for YOUL based on our 2027 revenue estimates. We believe the EV/sales for YOUL could be higher than those peers as it is in its early stages of global expansion while those peers are more established and mature. This methodology supports our $2.00 DCF derived price target.

The current market cap of only $35.0 million appears to be irrational and could be more reflective of the ongoing microcap stock malaise as opposed to company fundamentals.

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