RAPP

Rapport is a clinical-stage neuroscience company with no revenue and a widening absolute loss (-$111M in FY2025 vs -$78.3M in FY2024), funded entirely by capital rather than operations. The whole investment case rests on one lead asset, RAP-219, an AMPAR negative allosteric modulator targeting TARP-8 for focal onset seizures, with optionality in PGTCS and bipolar mania. The MD&A materially de-risks the story versus a typical early biotech: the September 2025 Phase 2a proof-of-concept met both its primary (long-episode reduction) and secondary (clinical seizure reduction) endpoints, the drug was generally well tolerated, December 2025 post-hoc work showed consistent effect across the 8-week period, and — most importantly — a December 2025 FDA end-of-phase-2 meeting supports advancement into two Phase 3 FOS trials. That is a real, datable catalyst path, not just preclinical hope.

The balance sheet is genuinely clean and is the strongest part of the quality picture. Equity of $485M against just $27.8M of total liabilities (liabilities/equity 0.06x) and ~$499M of current assets means there is no leverage risk and a multi-year cushion even against a growing burn (operating cash outflow -$87.5M, R&D up 55.6% to $94.8M as programs scale). The flip side: that runway was bought through heavy dilution — shares outstanding jumped 31% YoY to 47.8M, and the 'improving' diluted EPS (-$2.86, +24.3%) is an artifact of that larger share count, not of narrowing losses. Pivotal Phase 3 seizure trials are expensive and long, so further equity raises before any approval are highly likely, and ROE of -23% will stay deeply negative for years.