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12.    CONTINGENT LIABILITY

On January 24, 2025, a putative class action lawsuit was filed against the Company, its Chief Executive Officer and its Chief Financial Officer in federal district court for the Eastern District of Wisconsin. The complaint, which purports to be brought on behalf of a class of persons and/or entities who purchased or otherwise acquired Common Shares between December 12, 2023 to October 31, 2024 (the “Class Period”), alleges violations by the defendants of Sections 10(b) and 20(a) of the Exchange Act by making material misstatements and/or omissions in the Company’s public statements with respect to its then-ongoing clinical trials of masofaniten (EPI-7386). On August 11, 2025, an amended complaint was filed. Among other things, the amended complaint amended the Class Period to begin March 15, 2023 and names the Chief Operating Officer as an individual defendant (while no longer naming the Chief Financial Officer as a defendant).The Company believes that it has valid defenses to the claims alleged in the amended complaint and intends to defend the lawsuit vigorously, but there is no guarantee that the Company will prevail. At the time of filing, the outcome of this matter and any possible related losses are not estimable or probable. As of June 30, 2025, the Company has not accrued any amounts in respect of this claim, nor established any reserves. Given the early stage of these proceedings, the outcome of this matter and the amount of any potential liability cannot be reasonably estimated.