Hypha Labs, Inc.

What they do

Hypha Labs, Inc. (formerly Digipath, Inc.) sold its cannabis-testing lab assets in February 2024 and now focuses on developing the Hypha Micropearl accelerator (also referred to as a bioreactor), a home appliance designed to produce functional mushroom mycelium (Micropearls) in eight days. The device uses pre-sterilized, nutrient-filled cartridges with QR codes that integrate with a Hypha Labs app. The company has not yet commercialized the product and is still in design, development, and testing phases.

Revenue drivers

• Hypha Micropearl accelerator — Planned home appliance for producing functional mushroom mycelium; no revenue generated to date.
• Replacement cartridges — Pre-sterilized cartridges with nutrient formulations, sold as consumables alongside the device; not yet in commercial production.
• Hypha Labs app — Mobile application that scans cartridge QR codes; intended to enhance device use, but no revenue streams identified.

Recent performance

For the fiscal year ended September 30, 2025, the company reported net income of $-3.1 million and diluted EPS of $-0.02, with operating cash flow of $-379,975. In the prior fiscal year (2024), net income was $-785,429 and operating cash flow was $-1.0 million. Latest balance sheet (March 31, 2026) shows total assets of $159,819, total liabilities of $2.9 million, and shareholder equity of $-3.1 million. The company holds $56,168 in cash and equivalents, and long-term debt of $1.8 million. Historical revenue figures (2018-2022, $2.5M-$2.8M) reflect the former cannabis lab business, not current operations.

Strategy

Management plans to continue design, development, and testing of the Hypha Micropearl accelerator over the next twelve months (as of the 10-K) or nine months (as of the 10-Q). They will produce a limited number of units at headquarters for testing with mycologists and industry experts. After successful testing, they intend to outsource manufacturing to a facility outside the United States. The stated goal is to market the device by the latter part of calendar year 2026, though management acknowledges no assurance of meeting this timeline.

Risks

• Going concern uncertainty — Auditor has expressed substantial doubt about the company's ability to continue as a going concern due to recurring net losses and insufficient cash reserves.
• No current revenue or product launch — The company has no commercial product and has not generated revenue from the mushroom device; launch is still in development and testing stages.
• Financing and dilution risk — The company relies on equity sales and convertible notes for capital; future financing may be unavailable or cause substantial dilution for stockholders.
• Manufacturing and supply chain risk — Plans to manufacture outside the United States introduce reliance on third-party manufacturers and potential disruptions.

Outlook

Management expects to complete design and testing of the Hypha Micropearl accelerator within the next nine to twelve months, with a target market launch in the latter part of calendar year 2026. They will first produce limited test units and seek a manufacturing partner outside the U.S. The company cautions there is no assurance it will achieve this timeline or commercialization at all. The outlook is contingent on raising additional capital and overcoming going concern risks.