SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of recurring accruals) necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Form 10-K”), as the same may be amended from time to time. Capitalized terms not defined in this Quarterly Report on Form 10-Q refer to capitalized terms as defined in the Form 10-K. Certain prior period accounts and balances in these unaudited condensed consolidated financial statements and notes thereto may have been reclassified to conform to the current period’s presentation.
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries. During the second quarter of 2026, the Company formed LifeSci Global Group LLC (“LGG”), of which the Company owns 51% through its wholly owned subsidiary EZRA International Group, LLC (“EIG”). LGG is consolidated as a majority-owned subsidiary, and the equity interest not attributable to the Company is presented as a noncontrolling interest. All intercompany transactions and balances have been eliminated in consolidation.
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| Liquidity | Liquidity
As of June 30, 2026, the Company’s reported cash and restricted cash aggregated balance was approximately $1,807,000, current assets were approximately $3,165,000 and current liabilities were approximately $1,936,000. As of June 30, 2026, the Company had working capital of approximately $1,229,000 and stockholders’ equity of approximately $6,647,000. For the six months ended June 30, 2026, the Company had a loss from operations of approximately $3,064,000, and net loss of approximately $3,465,000.
Although there can be no assurance that debt or equity financing will be available on acceptable terms, or at all, the Company believes its financial position and its ability to raise capital to be reasonable and sufficient. Based on our assessment, we do not believe there are conditions or events that, in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern within one year of filing these unaudited financial statements with the Securities and Exchange Commission (“SEC”).
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| Use of Estimates | Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates.
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| Cash and Restricted Cash | Cash and Restricted Cash
Cash and restricted cash (restricted for debt service coverage) on our unaudited condensed consolidated statements of cash flows consists of the following:
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| Equity Investments | Equity Investments
Equity investments in entities over which the Company does not exercise control or significant influence, and for which there is no readily determinable fair value, are accounted for under the measurement alternative in ASC 321, Investments—Equity Securities. Under this alternative, such investments are carried at cost, less impairment, and adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company evaluates such investments for impairment at each reporting period based on qualitative and quantitative factors, including the investee’s financial condition, operating results, and near-term business prospects.
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| Equity Method Investments | Equity Method Investments
The Company accounts for investments in entities over which it exercises significant influence but does not control using the equity method of accounting (ASC 323). Under the equity method, the investment is initially recorded at cost and subsequently adjusted for the Company’s proportionate share of the investee’s net income or loss, which is presented as a non-operating item in the Company’s unaudited condensed consolidated statements of operations. Dividends received reduce the carrying value of the investment. The Company performs a memo purchase price allocation at the date of each investment to identify basis differences between the cost allocated to the investee’s assets and liabilities and the investee’s carrying values of those assets and liabilities. Indefinite-lived basis differences are not amortized until the related activities are complete or abandoned; definite-lived basis differences are amortized over the useful life of the underlying asset. The Company assesses its equity method investments for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company translates the financial statements of its equity method investee whose functional currency is not the U.S. dollar using the current rate method; resulting translation adjustments when material are recorded in other comprehensive income.
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| Revenue Recognition | Revenue Recognition
The following table disaggregates the Company’s revenue by line of business, showing commissions earned:
The following are customers representing 10% or more of total revenue:
No other single customer accounted for more than 10% of the Company’s commission revenues during the three and six months ended June 30, 2026 and 2025. The loss of any significant customer could have a material adverse effect on the Company.
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| Income Taxes | Income Taxes
The Company recorded no income tax expense for the three and six months ended June 30, 2026 and 2025 because the estimated annual effective tax rate was zero. In determining the estimated annual effective income tax rate, the Company analyzes various factors, including projections of the Company’s annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, the ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives.
As of June 30, 2026 and December 31, 2025, the Company provided a full valuation allowance against its net deferred tax assets since the Company believes it is more likely than not that its deferred tax assets will not be realized.
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| Noncontrolling Interests | Noncontrolling Interests
Noncontrolling interests represent the portion of equity in a consolidated subsidiary that is not attributable, directly or indirectly, to the Company. Noncontrolling interests are presented as a separate component of stockholders’ equity in the unaudited condensed consolidated balance sheets. Net income or loss is attributed to the Company and to the noncontrolling interest in proportion to their respective ownership interests, and losses are attributed to the noncontrolling interest even if doing so results in a deficit noncontrolling interest balance.
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| Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-08, Intangibles — Goodwill and Other — Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The ASU requires entities to measure certain digital assets at fair value each reporting period, with changes in fair value recognized in net income, and to provide specific quantitative and qualitative disclosures regarding such holdings. The Company adopted ASU 2023-08 effective July 1, 2025, using the modified retrospective transition method. Since the Company did not hold any digital assets prior to adoption, there were no cumulative-effect adjustments to retained earnings and no retrospective impacts.
In August 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which simplifies certain aspects of applying ASC 326, Financial Instruments—Credit Losses, to current accounts receivable and contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. The ASU permits entities to apply a practical expedient when estimating expected credit losses for certain short-term receivables and contract assets. The Company adopted ASU 2025-05 during the quarter ended June 30, 2026. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements or related disclosures.
We do not expect any other recently issued accounting pronouncements to have a material effect on our financial statements not already disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. |
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