Zeo ScientifiX, Inc.

What they do

ZEO develops and manufactures biologic products derived from ethically sourced birth tissue, including mesenchymal stem cells, exosomes and Wharton's Jelly matrix. Its principal product is Zofin, an amniotic fluid-derived product retaining naturally occurring extracellular vesicles, proteins and nanoparticles, and it also makes Patient Pure X (PPX), an autologous biologic precipitated from a patient's own peripheral blood. Products are made in FDA-registered, cGMP-compliant labs and sold as 'RAAM Products' to doctors and clinics in the healthcare industry. It operates an extracellular vesicle processing laboratory in Davie, Florida.

Revenue drivers

• Allogenic biologic products — The company attributes revenue growth in the six months ended April 30, 2026 primarily to increased sales of its allogenic biologic products, including Zofin.
• Florida SB 1768 market — Florida's stem cell therapy law, effective July 1, 2025, authorizes licensed physicians to administer non-FDA-approved stem cell and human tissue-derived therapies for orthopedic, wound care and pain management indications.
• Topical aesthetic products — The company recently developed and began distributing additional products incorporating its proprietary ingredients for topical aesthetic applications.
• RAAM Products and related services — Portfolio products and services are principally administered through doctors and clinics, referred to as Providers.

Recent performance

Revenue for the three months ended April 30, 2026 was $2,581,000 versus $1,149,000 a year earlier, an increase of 124.6%. Six-month revenue was $4,027,000 versus $2,239,000, up 79.9%, driven primarily by allogenic biologic products. Gross margins were approximately 80.0% in both six-month periods. Net loss narrowed to approximately $1.0 million for the six months ended April 30, 2026 from approximately $2.6 million a year earlier. Full-year fiscal 2025 revenue was $5.2 million with a net loss of $5.5 million.

Strategy

ZEO is pursuing clinical research and commercial sales strategies compliant with Florida SB 1768, which it expects to create substantial new demand for stem cell therapy products. It cites three mechanisms: meeting existing physician and patient interest, increasing awareness, and attracting medical tourists who previously went abroad. The company also expects the law to let it collect real-world safety and outcome data from providers, which it says could lower risks for future FDA submissions. It continues an IRB-approved PPX study in musculoskeletal joint pathologies, targeting up to 350 patients, with five clinics participating and seven patients enrolled to date. It is also exploring additional topical aesthetic applications for its proprietary ingredients.

Risks

• Going concern — Auditors expressed substantial doubt about the company's ability to continue as a going concern for the fiscal year ended October 31, 2025.
• Accumulated deficit — Accumulated deficits were $67,734,000 at October 31, 2025 and $62,213,000 at October 31, 2024, with a working capital deficit of $1,915,000 at October 31, 2025.
• Funding clinical trials — The company states it currently does not have sufficient available working capital to fund the substantial costs of completing clinical trials.
• Regulatory dependence — ZEO's commercial strategy and growth expectations rest in part on Florida SB 1768 and similar legislation announced by several other states, and on future FDA approvals.

Outlook

Management describes the six months ended April 30, 2026 as an inflection point, citing growth momentum as more physicians use ZEO as a supplier and educational partner. CEO Ian Bothwell said the foundation being built today should provide continued opportunities to expand. The company expects SB 1768 and similar legislation in other states to create substantial new demand and to allow faster advancement of clinical trial objectives at reduced cost.