Instinct Bio Technical Company Holdings Inc. (Nasdaq: BIOT), a Tokyo-based developer, manufacturer and seller of stem-cell-based and regenerative-medicine-related cosmetics and health products, reported unaudited financial results for the six months ended May 31, 2026, showing a return to profitability and revenue growth. The results, announced on October 16, 2026, cover the Operating Group—Instinct Bio Technical Company Inc. and its four Japanese subsidiaries—which became wholly owned subsidiaries of the Company on July 23, 2026. The interim financial statements were reviewed by Morison LC PLT and furnished to the SEC on Form 6-K. Results exclude the Company’s predecessor, Relativity Holdings Inc., and business combination costs.
Revenue reached USD 1,142,598, up 4.7% year-over-year. In yen terms, revenue grew 9.8%, from JPY 163.7 million to JPY 179.8 million. Profit after tax was USD 90,251, compared with a loss of USD 206,817 in the prior-year period. Administrative expenses fell 30.1% to USD 741,691, largely because approximately USD 208,000 in listing-related fees expensed in the first half of fiscal 2025 did not recur. Gross margin declined to 72.6% from 79.7%, attributed to a smaller inventory build, new imported purchases, and higher manufacturing overhead.
“This is the first set of results we have reported since completing our Nasdaq listing in July,” said Tomoki Nagano, Chairman and Chief Executive Officer. “Until now, investors have had little visibility into who we are as a management team and what our business actually does. We chose to report our first half now, and will continue to report every six months, so that shareholders can judge us on facts: revenue grew almost 10% in yen terms, we returned to profit, and our customer base is broader than a year ago. We are not satisfied with our gross margin or cash position, and improving both is our priority for the second half.”
The company’s customer concentration decreased, with its largest customer’s share of revenue falling to 34.8% from 51.7%, as new OEM/ODM, export, and Value Athlete customers were added. By business line, OEM/ODM revenue rose 6.5% in yen terms, Value Village e-commerce revenue increased 12.2%, and Value Athlete revenue surged 552.4%. Overseas revenue grew 203.6%.
Net cash used in operating activities was USD 12,323, a significant improvement from USD 371,404 in the prior-year period. Cash and bank balances stood at USD 25,565 at May 31, 2026, with no bank borrowings. Total assets were USD 4,080,414, total liabilities USD 1,994,227, and total equity USD 2,086,187. The directors concluded the Operating Group has adequate resources to continue as a going concern for at least twelve months, though liquidity depends on collecting receivables, continued support from directors and related parties, and obtaining additional financing as needed. Full financial statements and MD&A are available at www.sec.gov.
Several overseas initiatives announced between July and September 2026 are progressing on schedule, according to management, and are targeted to be operational by the end of calendar 2026, with revenue contribution expected from fiscal 2027. These include a U.S. collaboration with INVITRX for GENREVER-branded cosmetics, an Indonesian product partnership with PT Parva Candela Kosmetick, a membership-based GENREVER Clinic in Jakarta, and non-exclusive representation of CelSiege BioSciences’ cancer immunotherapy program IN01 in Japan and China. These initiatives did not contribute to first-half revenue and remain subject to definitive agreements, regulatory approvals, and partner performance.
The results matter because they provide the first public financial snapshot of Instinct Bio since its Nasdaq listing, offering investors concrete data on revenue growth, profitability, and customer diversification. The return to profit and the reduction in customer concentration could improve investor confidence, while the company’s low cash position and reliance on related-party support highlight ongoing liquidity risks. The success of the overseas initiatives will be key to future growth. For more information, visit https://instinct-biot.com.
