Executive Summary / Key Takeaways

• MindWalk (formerly ImmunoPrecise Antibodies Ltd.) is undergoing a significant strategic transformation, pivoting from a traditional wet lab service provider to a platform-driven bio-native AI company, unifying its entities under a single brand and NASDAQ ticker HYFT.
• The BioStrand AI segment is a primary growth engine, demonstrating over 180% year-over-year revenue growth in fiscal year 2025 and achieving gross profit margins approaching 90%, significantly enhancing the company's financial trajectory.
• Strategic initiatives, including the divestiture of European wet labs for $16.1 million in net proceeds and the relocation of headquarters to Austin, Texas, are strengthening the balance sheet, streamlining operations, and focusing capital on high-margin, AI-driven opportunities.
• MindWalk's proprietary LENSai platform, powered by HYFT technology, offers significant technological differentiators, including rapid, high-precision epitope mapping (hours versus weeks) and AI-driven de novo antibody design, positioning it with a competitive edge in drug discovery.
• The company is actively pursuing scalable growth through Software-as-a-Service (SaaS), Data-as-a-Service (DaaS), internal asset generation (e.g., universal dengue vaccine, GLP-1 peptides), and strategic partnerships, aiming for sustainable value creation and improved profitability.

The Dawn of a Bio-Native AI Era

MindWalk, formerly ImmunoPrecise Antibodies Ltd., is charting a transformative course within the dynamic biopharmaceutical landscape, evolving from a specialized antibody service provider to a pioneering bio-native AI platform company. This strategic pivot, underscored by its recent rebranding and NASDAQ ticker change to HYFT, positions MindWalk at the nexus of artificial intelligence, multi-omic data, and advanced laboratory research. The company's journey began in 1983, with a foundational focus on custom antibody discovery and production. Over decades, it built a reputation for scientific rigor and quality, initially serving the diagnostic market before strategically expanding into therapeutic antibodies through acquisitions like ImmunoPrecise Antibodies Europe B.V. in 2018 and the formation of Talem Therapeutics LLC in 2019.

A pivotal moment arrived with the 2022 acquisition of BioStrand, which infused advanced multi-omics and in silico biotechnology capabilities, laying the groundwork for its current AI-driven strategy. This evolution aligns with broader industry trends, where the therapeutic antibodies market is projected to reach US$428 billion by 2029, growing at an 11.20% CAGR from 2024, driven by increasing R&D expenditures and a demand for innovative therapies. The biopharmaceutical sector, particularly in biologics, is experiencing rapid growth, with a notable trend towards outsourcing non-clinical research and an increasing emphasis on AI and data integration to accelerate drug discovery. Furthermore, regulatory shifts, such as the FDA's plans to phase out animal testing for monoclonal antibodies, directly validate MindWalk's in silico capabilities, which can predict toxicity, immune response, and efficacy, reducing reliance on traditional animal models.

MindWalk's overarching strategy is to leverage its BioIntelligence ecosystem, integrating bio-native AI powered by 25 billion proprietary HYFT connections, a multi-omic platform, and an advanced wet lab. This integrated approach aims to deliver earlier insights, stronger candidate selection, and faster decision-making at scale. The company is actively shifting its business model from primarily wet lab services to a scalable intelligence platform, opening new pathways for Software-as-a-Service (SaaS), Data-as-a-Service (DaaS), internal asset generation, and large-scale partnerships.

Technological Edge: LENSai and HYFT Propel Discovery

At the core of MindWalk's transformation is its proprietary LENSai platform, powered by the patented HYFT technology. This bio-native AI is purpose-built for biology, transforming fragmented biological information into a computable model for precision discovery and development. The HYFT universal fingerprint technology enables the identification of characteristic biological sequences in proteins, RNA, and DNA across multiple information layers, providing unprecedented insights into molecular relationships.

The tangible benefits of this technology are significant and quantifiable. MindWalk's in silico epitope mapping application, part of the LENSai platform, delivers X-ray crystallography-level insights in hours, a process that traditionally takes weeks or even years using gold-standard wet-lab methods. This dramatically accelerates early discovery and reduces the need for complex, time-consuming laboratory work. Similarly, LENSai's immunogenicity screening can reliably predict Anti-Drug-Antibody (ADA) risk for therapeutic proteins, outperforming leading industry benchmarks and flagging potential issues long before clinical trials. This capability helps drug developers identify and de-risk problem candidates earlier, saving substantial time and cost.

MindWalk is also at the forefront of R&D and new technological developments:

• Universal Dengue Vaccine: Using its HYFT-powered LENSai platform, the company discovered a highly conserved epitope across all four dengue virus serotypes. This breakthrough, confirmed for safety, immune activation, and structural stability, represents a key step toward a universal vaccine. MindWalk's strategy is to partner with interested parties, including the NIH, to sponsor Phase I clinical trials, retaining downstream recognition and capital without bearing the full funding burden.
• AI-Designed GLP-1 Peptides: MindWalk pioneered a new class of GLP-1 therapies entirely through artificial intelligence. In vitro results demonstrate comparable or superior receptor activation to Semaglutide, a commercially successful GLP-1 therapy. The program is advancing through parallel tracks with partners for manufacturing, in vitro testing, preclinical design, and formulation planning, with the potential for novel administration routes like transdermal delivery.
• De Novo Antibody Design: The company has added de novo antibody design to its portfolio, a transformative AI application that enables antibodies to be designed from scratch for specific, often difficult-to-access epitopes. A program utilizing this precise targeting method has already been commissioned by a top 20 pharmaceutical company.
• Computational Infrastructure Enhancement: Through collaborations with Vultr and Advanced Micro Devices (AMD), MindWalk is expanding its scalable cloud infrastructure. This integration of optimized versions of AlphaFold2 and AFmassive into the LENSai portal has led to up to 66% cost savings over traditional cloud providers and significantly improved processing speed and scalability.

For investors, these technological advancements translate into a robust competitive moat. The precision, speed, and cost-effectiveness offered by LENSai enhance MindWalk's market positioning, allowing it to deliver superior outcomes for clients and drive higher profit margins. The ability to generate novel therapeutic assets internally and through partnerships, coupled with a scalable platform model, underpins its long-term growth strategy.

Competitive Positioning in a Shifting Landscape

MindWalk operates in a highly competitive environment, primarily contending with other full-service Contract Research Organizations (CROs) and the in-house R&D departments of biopharmaceutical companies. Key direct competitors include Thermo Fisher Scientific (TMO), Charles River Laboratories (CRL), Bio-Techne (TECH), and Danaher Corporation (DHR) (through its Abcam subsidiary). These larger players often possess greater financial resources, broader service offerings, and more extensive global footprints.

However, MindWalk strategically carves out its niche by emphasizing innovative, tailored, and AI-integrated solutions. While larger competitors like Thermo Fisher Scientific and Charles River Laboratories excel in scale and standardized offerings, MindWalk's proprietary LENSai and HYFT technologies provide a distinct advantage in specialized areas like rapid epitope mapping and de novo antibody design. These capabilities offer significantly higher efficiency and faster innovation cycles for custom projects, attracting clients seeking cutting-edge, data-driven solutions. MindWalk's approach allows it to deliver a "much more sophisticated product that has an advanced thought of potential failures downstream," a critical differentiator in derisking drug development.

Qualitatively, MindWalk's gross profit margins, particularly from its BioStrand segment, are substantially higher than those typically seen in traditional wet lab services, indicating a superior efficiency model in its core AI offerings. This contrasts with the generally lower, albeit stable, margins of more diversified CROs. MindWalk's strategic partnerships, such as the US$8-10 million oncology collaboration, demonstrate its ability to secure significant, all-cash, execution-focused deals, a testament to the value clients place on its innovative platform. This positions MindWalk as a strong contender in customized services, leveraging its technological prowess to compete effectively against larger, more established rivals.

Financial Performance and Operational Momentum

MindWalk's financial performance in fiscal year 2025 and early fiscal year 2026 reflects its strategic pivot and operational discipline. For the full fiscal year ended April 30, 2025, the company achieved $24.5 million in revenue, a slight increase over fiscal year 2024. Gross margins expanded by 600 basis points, from 49% in fiscal year 2024 to 55% in fiscal year 2025. This improvement was largely driven by the BioStrand segment, which saw revenue growth exceeding 180% year-over-year and maintained gross margins approaching 90%.

The fourth quarter of fiscal year 2025 was particularly strong, with record revenue of $7.0 million and a gross margin of 64%, up from 48% in the prior year's fourth quarter. Adjusted EBITDA loss narrowed significantly to just $316,000, a substantial improvement from a $1.7 million loss in Q4 2024, highlighting enhanced operational efficiency. The Canadian business also demonstrated robust growth, with sales orders reaching $4.3 million in Q4 2025, more than double historical quarters, and a 47% year-over-year increase in sales.

Looking into the first quarter of fiscal year 2026 (ended July 31, 2025), MindWalk reported record total operations revenue of $7.6 million, a 45% increase year-over-year. Gross profit rose to $4 million, with margins expanding to 53%. Operating loss narrowed to $2.7 million, and adjusted EBITDA loss was cut in half year-over-year to $1.4 million. Importantly, continued operations contributed $3.2 million in revenue, up 28% year-over-year, demonstrating the sustainable growth of its core bio-native AI platform even after the divestiture.

Liquidity has been significantly bolstered. As of April 30, 2025, the company held $10.8 million in cash. Post-Q1 2026, the divestiture of its Netherlands operations generated an additional $16.1 million in net proceeds, further strengthening the balance sheet. MindWalk also successfully completed an $8.8 million equity raise through its At-the-Market (ATM) facility and fully converted its convertible debentures with Yorkville, rendering the company debt-free and removing potential share price overhang. Management has also implemented cost-cutting measures, including a reduction in general and administrative expenses and modifications to executive compensation, underscoring a commitment to financial discipline.

Outlook and Strategic Trajectory

MindWalk's outlook is firmly anchored in the continued expansion of its AI-driven platform and a strategic focus on high-margin opportunities. Management explicitly anticipates BioStrand to remain a strong contributor to top-line performance and to drive sustained margin expansion. The company expects continued growth in the utilization of LENSai through both API and portal access, as well as its fee-for-service offerings. The strategic divestiture of the European wet labs is projected to significantly lower overall operating costs and provide several years of operating capital, enabling MindWalk to concentrate resources on its core AI and Canadian wet lab operations.

The company is actively pursuing both internal pipeline development and strategic partnerships. For internal assets like the universal dengue vaccine and GLP-1 peptides, the strategy involves attracting partners to sponsor later-stage clinical trials, allowing MindWalk to participate in downstream economics without bearing the full funding burden. The successful US$8-10 million oncology partnership, structured with an initial US$8 million purchase order and weekly drawdowns, is viewed as a repeatable model for future collaborations, signaling a shift towards execution-focused, innovation-driven deals. MindWalk's relocation of its headquarters to Austin, Texas, is expected to enhance access to top-tier AI and biotech talent, foster strategic collaborations, and unlock new non-dilutive funding opportunities. While Zacks consensus estimates for Q1 2026 projected a loss of $0.03 per share on $4.45 million in revenues, MindWalk's actual Q1 2026 results significantly surpassed these revenue expectations, reporting $7.6 million in revenue, a net loss of $3 million, and an adjusted EBITDA loss of $1.4 million. The consensus for fiscal year 2026 anticipates a loss of $0.08 per share on $20.18 million in revenues.

Risks and Challenges

Despite its promising trajectory, MindWalk faces several inherent risks. The company has a history of net losses and negative operating cash flows, and while recent capital raises and divestitures have improved liquidity, there is no assurance that sufficient revenues will be generated in the near future to achieve sustained profitability. A material weakness in internal control over financial reporting, related to identifying complex technical accounting issues, remains an area of ongoing remediation.

Protecting its intellectual property is crucial, as patents can be challenged, narrowed, or invalidated by competitors. The highly competitive nature of the pharmaceutical and biotechnology industries, characterized by rapid innovation, poses a risk that MindWalk's products and services could become obsolete. Furthermore, a reduction in R&D expenditures by pharmaceutical and biotechnology companies or the termination of client contracts could adversely impact revenue. The company is also exposed to currency fluctuations and relies on a limited number of suppliers for key materials. The volatility of its common shares is another factor investors must consider.

Conclusion

MindWalk's transformation into a bio-native AI platform company marks a pivotal moment in its history, positioning it for scalable growth and enhanced profitability in the rapidly evolving biopharmaceutical sector. The strategic divestiture of its European operations, coupled with a strengthened balance sheet and a focused investment in its BioStrand AI segment, underscores a clear commitment to a high-margin, technology-driven future. MindWalk's proprietary LENSai and HYFT technologies offer a compelling competitive advantage, delivering unparalleled speed, precision, and cost-effectiveness in drug discovery, from epitope mapping to de novo antibody design.

While challenges such as historical losses and intense competition persist, the company's recent financial performance, including record revenues and expanding gross margins, demonstrates tangible progress. MindWalk's strategic partnerships and internal asset development, particularly in areas like universal vaccines and GLP-1 therapeutics, highlight its potential to democratize drug discovery and create significant long-term value for shareholders. The company's strategic realignment and technological leadership are poised to unlock novel therapeutic insights and accelerate the development of impactful medicines, making MindWalk a compelling investment story in the burgeoning TechBio space.