Note 11 – Grants

In August 2025, the Company was awarded a grant totaling $400,000 in gross proceeds from the National Institutes of Health (“NIH”). The grant is structured pursuant to the NIH Small Business Technology Transfer (“STTR”) program, which requires collaboration with a research institution, whereby 40% of the grant funds, or $160,000, is allocated to the Company and 60%, or $240,000, is allocated to the Company’s academic research collaborator at USC as subcontractor.

In September 2025, the Company was awarded a grant totaling approximately $1,007,000 in gross proceeds from the NIH. The grant is structured pursuant to the NIH STTR program, which requires collaboration with a research institution, whereby approximately 24% of the grant funds, or approximately $245,000, is allocated to the Company and the remainder, or approximately $762,000, is allocated to USC as subcontractor.

The Company is the primary awardee under both STTR grants and is contractually responsible to the NIH for performance under the awards, including responsibility for USC’s compliance with award terms as subcontractor. The Company receives grant funds directly from the NIH and disburses USC’s portion to USC. The Company evaluated this arrangement and determined it acts as principal, rather than agent, with respect to the gross award proceeds, because the Company (i) is the party primarily obligated to the NIH, (ii) is responsible for the subcontractor’s performance and compliance, and (iii) controls the funds prior to disbursement to USC. Accordingly, the Company presents the gross amount receivable from the NIH — including the portion payable to USC — as a grant receivable, with a corresponding subcontract payable to USC, rather than presenting only the Company’s own net retained portion.

The Company recognized grant income of $47,123 and $94,246 for the three and six months ended June 30, 2026, respectively, representing allowable costs incurred under the Company’s two NIH grants, which is included within interest and other income in the condensed consolidated statements of operations. There was no comparable grant income during the three and six months ended June 30, 2025.

Correspondingly, USC incurs subcontractor costs under the two grants, which are recognized as research and development expense with a corresponding increase to the subcontract payable to USC. As of June 30, 2026, cumulative unpaid subcontractor costs incurred by USC under the two grants totaled $435,655.

As of June 30, 2026, the Company had a gross grant receivable of $601,148, comprised of $165,494 related to the Company’s own allowable costs and $435,655 related to amounts due to USC, and a corresponding subcontract payable to USC of $435,654, included within accounts payable – related parties. As of December 31, 2025, the Company had a gross grant receivable of $71,247.