Regencell Bioscience Holdings Limited Announces First Half 2026 Management Financial Results

Bioscience Holdings Limited Announces First Half 2026 Management Financial Results

KONG, May 8, 2026 - Regencell Bioscience Holdings Limited (Nasdaq: RGC) (the "Company") today announced its unaudited

condensed consolidated interim financial results for the six months ended December 31, 2025.

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF

AND COMPREHENSIVE LOSS

DISCUSSION AND ANALYSIS

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Discussion and Analysis of Financial Condition and Results of Operations ("Management's Discussion and Analysis")

is designed to provide you with a narrative explanation of the financial condition and results of operations of Regencell Bioscience

Holdings Limited as of and for the six months ended December 31, 2025. Unless otherwise indicated or the context otherwise requires,

all references in this discussion and analysis to "RGC", the "Company," "we," "our,"

"ours," "us" or similar terms refer to Regencell Bioscience Holdings Limited and its consolidated subsidiaries.

should read this Management's Discussion and Analysis in conjunction with our summary of unaudited condensed consolidated interim

financial statements as of and for the six months ended December 31, 2025. You should also read this Management's Discussion and

Analysis in conjunction with our audited consolidated financial statements, including the notes thereto, and the section titled "Risk

Factors" included in the Company's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission

("SEC") on October 31, 2025.

unaudited condensed consolidated interim financial statements were prepared in accordance with U.S. GAAP. The Company's functional

currency is Hong Kong Dollar ("HK$") and its financial statements are presented in U.S. dollars. "HK$" refers

to the legal currency of Hong Kong and "$", "US$" or "U.S. Dollars" refers to the legal currency

of the United States. We have made rounding adjustments to some of the figures included in this Management's Discussion and Analysis.

Accordingly, any numerical discrepancies in any table between totals and sums of the amounts listed are due to rounding.

the six months ended December 31, 2025, we incurred total operating expenses of approximately $5.3 million, an increase of approximately

$3.4 million, or 170%, as compared to total operating expenses of approximately $2.0 million during the six months ended December

and marketing expenses decreased by approximately $5 thousand, or 67%, to approximately $2 thousand for the six months ended December

31, 2025 from approximately $7 thousand for the six months ended December 31, 2024. The selling and marketing expenses were mainly relating

to digital marketing and the decrease was mainly due to a decrease in digital marketing activities.

and administrative expenses increased by approximately $3.5 million, or 236%, to approximately $4.9 million for the six months ended

December 31, 2025 from approximately $1.5 million for the six months ended December 31, 2024. The increase was mainly attributable to

(i) an increase in share-based compensation for general and administrative personnel of approximately $1.4 million; (ii) an increase

in professional fees of approximately $2.3 million for legal and other expenses due to the investigation matters, partially offset by

(iii) a decrease in rental expenses of approximately $0.08 million; (iv) a decrease in payroll expenses of approximately $0.06 million;

and (v) a decrease in travelling and entertainment expenses of approximately $0.07 million.

and development expenses decreased by approximately $0.09 million, or 18%, to approximately $0.4 million for the six months ended December

31, 2025 from approximately $0.5 million for the six months ended December 31, 2024. The decrease was mainly due to decrease in share-based

compensation for research and development personnel of approximately $0.08 million.

other income, net was approximately $0.02 million for the six months ended December 31, 2025 and total other income, net was approximately

$0.1 million for the six months ended December 31, 2024.

income mainly consisted of cash received from interest income. The decrease in other income was due to the decrease in principal and

interest rate which resulted in lower interest income received.

net loss increased by approximately $3.5 million, or 187%, to approximately $5.3 million for the six months ended December 31, 2025,

from approximately $1.8 million for the six months ended December 31, 2024. Such change was a result of the combination of the changes

and diluted loss per share

and diluted loss per share were 1.08 cents for the six months ended December 31, 2025, compared to 0.37 cents in the same period of 2024,

which had taken the retroactive effect of the 38-for-1 forward stock split effected on June 13, 2025. For

the six months ended December 31, 2025 and 2024, there were no dilutive shares.

of December 31, 2025, our total assets stood at approximately $3.0 million compared to approximately $5.8 million as of June 30, 2025.

of December 31, 2025, our cash remained stable at approximately $2.4 million compared to approximately $2.4 million as of June 30, 2025.

Note Regarding Forward-Looking Statements

Management's Discussion and Analysis contains "forward-looking statements" within the meaning of the Private Securities

Litigation Reform Act of 1995. You can identify some of these forward-looking statements by words or phrases such as "may,"

"will," "expect," "anticipate," "aim," "estimate," "intend,"

"plan," "believe," "is/are likely to," "potential," "continue" or other similar

expressions. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking

statements. Among other things, the business outlook from management in this Management's Discussion and Analysis, as well as the

Company's strategic and operational plans, contain forward-looking statements. The Company may also make written or oral forward-looking

statements in its periodic reports to the SEC on Forms 20-F and 6-K, in its annual reports to shareholders, in other written materials,

and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks

number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but

not limited to the following: the Company's goals and strategies; the Company's future business development, financial condition

and results of operations; changes in the Company's expenditures; general economic and business conditions globally; and assumptions

underlying or related to any of the foregoing.

information regarding these and other risks is included in the Company's annual report on Form 20-F and current report on Form

6-K and other documents filed with the SEC. All information provided herein is as of the date of this Management's Discussion and

Analysis, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable

addition to the information disclosed in the Company's prior filings with the SEC, investors should consider recent developments,

including but not limited to:

we are not currently subject to any legal or administrative proceedings other than the litigation noted above, it is possible that government

investigations, including the pending investigation in which we are involved, and related legal and administrative proceedings in the

future, if any, could result in the institution of administrative, injunctive, or other proceedings against us and/or our directors,

officers, or employees or the imposition of fines, suspension, or other remedies and sanctions. Because the outcome of any complex litigation

is inherently uncertain, it is possible that we may be required to pay fines, penalties, damages or settlement costs in excess of our

insurance coverage, if any, related to the investigation. Any such material costs and expenses or injunctive relief could have a material

adverse effect on our financial condition and results of operations. Since the Company cannot predict the ultimate resolution might have

on the Company's financial position, results of operations or liquidity, the Company has not established any provision for losses

relating to this matter.