12. SUBSEQUENT EVENTS

U.S. Tax Regulation Update

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law in the United States. OBBBA includes significant changes, such as the permanent extension of certain provisions that were originally enacted in the 2017 Tax Cuts and Jobs Act and were set to expire on December 31, 2025, modifications to certain international tax provisions and the restoration of tax treatment for certain business expense provisions. The new legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing the impact on our condensed consolidated financial statements, as well as our annual estimated effective tax rate.

Compensation Arrangements

On August 11, 2025, the Company entered into success bonus agreements with certain individuals, including Stephen Brady, the Company’s Chief Executive Officer and President, Samuel Whiting, the Company’s Executive Vice President and Chief Medical Officer, Nicholas Maestas, the Company’s Chief Financial Officer and Head of Corporate Strategy, and Justin Trojanowski, the Company’s Corporate Controller, Treasurer and principal accounting officer, for total aggregate success bonuses of $725,000. Pursuant to the agreements, the individuals will be eligible to receive a success bonus if a change in control of the Company is consummated prior to January 31, 2026.