NOTE 2. Equity Investments

The Company had no equity investments as of December 31, 2025. The Company’s equity investments as of June 30, 2026 consist of the following:

 SCHEDULE OF EQUITY INVESTMENTS

Investment In Enquantum

In January 2026, the Company advanced a $166,000 secured bridge loan to Enquantum Ltd. (“Enquantum”), an Israeli quantum encryption technology company. The bridge loan converted into equity on February 19, 2026 in connection with the initial closing under a Share Purchase Agreement (“SPA”) entered into on February 5, 2026, pursuant to which the Company may acquire up to 51% of Enquantum’s fully diluted ordinary shares for aggregate consideration of approximately $2.1 million payable in milestone-based tranches. During the six months ended June 30, 2026, the Company funded an aggregate of approximately $834,000, including the converted bridge loan, and acquired 85,088 ordinary shares of Enquantum, representing approximately 34% of Enquantum’s issued and outstanding shares. The Company holds two board-designated seats on Enquantum’s five-member board of directors and accounts for the investment under the equity method of accounting pursuant to ASC 323 due to its ability to exercise significant influence over Enquantum’s financial and operating policies. Funding of the remaining aggregate consideration balance is at the Company’s discretion, and no liability has been recorded for the unfunded portion, which was approximately $1.3 million as of June 30, 2026.

As of June 30, 2026, the carrying value of the investment was approximately $714,000, after recognizing approximately $94,000 and $120,000 of equity method losses during the three and six months ended June 30, 2026, respectively, which were recorded within loss from equity method investment in the Company’s unaudited condensed consolidated statements of operations.

The Company determined that the investment did not constitute a business acquisition under ASC 805, as substantially all of the fair value of Enquantum’s gross assets is concentrated in its quantum encryption intellectual property and in-process research and development (“IPR&D”). In connection with the Company’s equity method accounting analysis under ASC 323, the Company determined that the purchase price exceeded its proportionate share of Enquantum’s underlying net assets by approximately $910,000 at the respective investment dates, primarily due to Enquantum’s accumulated deficit and the value attributed to its intellectual property and IPR&D. This excess basis difference represents an equity method basis adjustment under ASC 323 associated with the Company’s investment in Enquantum and is included within the carrying value of the investment. The amount is not separately presented as an intangible asset on the Company’s unaudited condensed consolidated balance sheets and is not currently subject to amortization unless the related research and development activities are completed or abandoned.

Formation of LGG and Investment in Innervate

In April 2026, the Company formed LifeSci Global Group LLC, a Delaware limited liability company, to pursue investments in healthcare and life sciences companies. The Company holds approximately 51% of LGG’s membership interests through its wholly owned subsidiary EZRA International Group, LLC, and LifeSci Management Group LLC (“Management Group”), an entity owned by certain members of the Company’s management and Board of Directors, holds the remaining approximately 49%. LGG is consolidated as a majority-owned subsidiary of the Company, and the interest held by Management Group is presented as a noncontrolling interest in the unaudited condensed consolidated financial statements.

In connection with the formation of LGG, EIG entered into a promissory note with LGG (the “LGG Note”) providing for advances of up to $2.0 million to fund LGG’s investment activities. The LGG Note bears interest at 7% per annum, compounded annually, and matures on April 29, 2031. As of June 30, 2026, $500,000 had been advanced under the LGG Note. The LGG Note and the related interest eliminate in consolidation and had no effect on consolidated net loss; however, the interest expense recognized at the LGG level is reflected in the allocation of net loss to the noncontrolling interest.

On April 30, 2026, LGG entered into a subscription agreement to acquire a minority equity interest in Innervate Radiopharmaceuticals LLC (“Innervate”), an early-stage life sciences company developing radiopharmaceutical product candidates, for aggregate consideration of up to approximately $2.0 million, payable in tranches. As of June 30, 2026, LGG had funded $500,000 and held 105,263 units of Innervate, representing an ownership interest of approximately 0.55% on an as-issued basis. Subsequent to June 30, 2026, LGG funded an additional installment of $150,000 in July 2026, increasing its holdings to 136,842 units and 68,421 warrants. Funding of the remaining installments is at LGG’s discretion, and no liability has been recorded for the unfunded portion, which was approximately $1.5 million as of June 30, 2026.

The Company, through LGG, does not exercise control or significant influence over Innervate, and there is no readily determinable fair value for the investment. Accordingly, the investment is accounted for as an equity investment under the measurement alternative in ASC 321, Investments—Equity Securities, and is carried at cost, less impairment, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. As of June 30, 2026, no impairment losses or observable price adjustments had been recognized, and the carrying value of the investment was $500,000, presented within equity investments in the unaudited condensed consolidated balance sheets.

In connection with the investment, LGG receives warrants to purchase additional units of Innervate at a ratio of one warrant for every two units purchased, at an exercise price of $4.75 per unit and exercisable through October 31, 2029. As of June 30, 2026, LGG had acquired 52,631 warrants in connection with the units funded to date. LGG is also entitled to certain preferential payment rights providing for a return of its subscription price prior to ordinary distributions to other members of Innervate. No value has been separately ascribed to the warrants or preferential payment rights as of June 30, 2026.

The formation of LGG, the LGG Note, and the investment in Innervate constitute related party transactions. Certain members of the Company’s management and Board of Directors hold ownership interests in Management Group, and one member of the Company’s Board of Directors serves as the chief executive officer of Innervate. These transactions were reviewed and approved by the independent and disinterested members of the Company’s Board of Directors.