NOTE 2 - LIQUIDITY AND MANAGEMENT PLANS

The Company generated an operating loss of $4.5 million, a net loss of $4.2 million, and cash used in operations of $2.7 million for the six months ended June 30, 2025. As of June 30, 2025, the Company had cash and cash equivalents of $5.0 million and $8.0 million invested in government securities. As of June 30, 2025, the Company had working capital of $12.6 million compared to working capital as of December 31, 2024 of $3.3 million.

Given the Company’s cash and investment positions as of June 30, 2025 and its projected cash flow from operations, the Company believes that it will have sufficient capital to sustain operations for a period of at least one year following the date of this filing. The Company may also raise funds through equity or debt offerings in the future to further accelerate the execution of its long-term strategic plan to develop and commercialize its core products.