Scinai posts net income on $6.2M acquisition bargain gain

Scinai Immunotherapeutics (NASDAQ:SCNI) reported a net profit for the first quarter of fiscal year 2026, driven primarily by a substantial, non-cash accounting gain linked to its recent acquisition of Recipharm Israel.

The Jerusalem-based biopharmaceutical firm generated net income of $3.6 million for the three months ended March 31, 2026, swinging from a net loss of $1.6 million during the first quarter of 2025.

The positive bottom-line result was driven by a $6.2 million non-cash bargain purchase gain recognized after absorbing Recipharm's manufacturing site in Yavne, Israel.

Total revenues for the quarter fell to $489 thousand, down from $586 thousand in the prior-year period.

The current quarter's top-line figure included an initial $200 thousand contribution from the newly integrated Yavne site, which represents Scinai's broader strategic shift toward building out its contract development and manufacturing organization (CDMO) service line.

Excluding the acquisition accounting adjustment, underlying operations experienced widening losses.

Scinai’s first-quarter operating loss grew to $2.5 million compared to an operating loss of $1.6 million a year ago.

Cost of revenues escalated significantly to $1.6 million from $0.4 million, reflecting both expanded CDMO facility operations and an internal accounting change.

Under this revised allocation methodology, certain personnel and facility expenses previously labeled as research and development are now counted under cost of revenues, lowering reported R&D line items to $0.6 million for the quarter.

Meanwhile, marketing, general, and administrative expenses increased to $0.7 million as the company absorbed broader operational overhead from the Recipharm footprint.