| DISCONTINUED OPERATIONS |
NOTE K — DISCONTINUED OPERATIONS On June 27, 2025, the Company implemented a strategic restructuring and realignment of resources to focus exclusively on its Therapeutic DNA Production Services business. As part of actions undertaken, the Company implemented a workforce reduction of approximately 27% of its then current headcount and has ceased operations at ADCL. The following table presents the major classes of ADCL’s results within Net loss from discontinued operations, net of tax in the condensed consolidated statement of operations for the three and six months ended March 31, 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2025 | | Fiscal Year Ended September 30, | | | Three Months | | Six Months | | | 2025 | | 2024 | Clinical laboratory service revenues | | $ | | 220,552 | | $ | 546,878 | | | $ | 572,928 | | $ | 1,317,930 | | | | | | | | | | | | | | | | Cost of clinical laboratory service revenues | | | | 245,223 | | | 493,681 | | | | 790,455 | | | 1,275,891 | | | | | | | | | | | | | | | | Gross profit | | | | (24,671) | | | 53,197 | | | | (217,527) | | | 42,039 | | | | | | | | | | | | | | | | Selling, general and administrative | | | | 59,292 | | | 123,401 | | | | 215,105 | | | 398,357 | Interest (income) | | | | (143) | | | 3,286 | | | | (3,301) | | | (55,819) | Other expense, net | | | | — | | | — | | | | 36,600 | | | — | Net loss from discontinued operations | | | | (84,106) | | | (66,918) | | | | (392,731) | | | (300,499) | Provision for income taxes | | | | — | | | — | | | | — | | | — | Net loss from discontinued operations, net of tax | | $ | | (84,106) | | $ | (66,918) | | | $ | (392,731) | | $ | (300,499) |
Assets and liabilities of discontinued operations associated with ADCL presented in the consolidated balance sheets as of March 31, 2026 and September 30, 2025 are included in the following table: | | | | | | | | | | | | | | | | March 31, | | September 30, | | | 2026 | | 2025 | ASSETS | | | | | | | Cash and cash equivalents | | $ | — | | $ | 6,971 | Accounts receivable, net | | | — | | | — | Inventories | | | — | | | — | Prepaid expenses and other current assets | | | — | | | — | Total current assets of discontinued operations | | | — | | | 6,971 | Property and equipment, net | | | — | | | — | Total assets of discontinued operations | | | — | | | 6,971 | | | | | | | | LIABILITIES | | | | | | | Accounts payable and accrued liabilities | | | — | | | — | Total liabilities of discontinued operations | | $ | — | | $ | — |
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NOTE M – DISCONTINUED OPERATIONS On June 27, 2025, the Company implemented a strategic restructuring and realignment of resources to focus exclusively on its Therapeutic DNA Production Services business. As part of actions undertaken, the Company implemented a workforce reduction of approximately 27% of its then current headcount and has ceased operations at ADCL. The Company’s actions are intended to reduce its operating costs and concentrate resources on the development and commercialization of its Therapeutic DNA Production Services business. The Company paid $277,732 in one-time charges related to the June 30, 2025, workforce reduction and ceasing of operations at ADCL, primarily for separation benefits. As a result of this restructuring, the operations and financial results of ADCL have been accounted for as discontinued operations. The following table presents the major classes of ADCL’s results within Net loss from discontinued operations, net of tax in the consolidated statement of operations: | | | | | | | | | | | | | | | | | | Fiscal Year Ended September 30, | | | | 2025 | | 2024 | | Clinical laboratory service revenues | | $ | 572,928 | | $ | 1,317,930 | | | | | | | | | | Cost of clinical laboratory service revenues | | | 790,455 | | $ | 1,275,891 | | | | | | | | | | Gross profit | | | (217,527) | | | 42,039 | | | | | | | | | | Selling, general and administrative | | | 215,105 | | | 398,357 | | Interest (income) | | | (3,301) | | | (55,819) | | Other expense, net | | | 36,600 | | | — | | Net loss from discontinued operations | | | (392,731) | | | (300,499) | | Provision for income taxes | | | — | | | — | | Net loss from discontinued operations, net of tax | | $ | (392,731) | | $ | (300,499) | |
Assets and liabilities of discontinued operations associated with ADCL presented in the consolidated balance sheet as of September 30, 2025 and 2024 are included in the following table: | | | | | | | | | | | | | | | | September 30, | | September 30, | | | 2025 | | 2024 | ASSETS | | | | | | | Cash and cash equivalents | | $ | 6,971 | | $ | 578,732 | Accounts receivable, net | | | — | | | 33,760 | Inventories | | | — | | | 5,867 | Prepaid expenses and other current assets | | | — | | | 59,787 | Total current assets of discontinued operations | | | 6,971 | | | 678,146 | Property and equipment, net | | | — | | | 94,337 | Total assets of discontinued operations | | | 6,971 | | | 772,483 | | | | | | | | LIABILITIES | | | | | | | Accounts payable and accrued liabilities | | | — | | | 56,061 | Total liabilities of discontinued operations | | $ | — | | $ | 56,061 |
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