NOTE 6 — ACCRUED EXPENSES

Accrued expenses consist of the following amounts:

Accrued bonuses include amounts earned by employees (including officers of the Company), which are expected to be paid in cash in the subsequent fiscal year. Certain amounts may be voluntarily deferred for cash management purposes.

Accrued CRO expenses represent costs incurred under the Company’s CRO agreements for services performed as of June 30, 2026, but not yet invoiced or paid. Such costs are recognized as research and development expense based on management’s assessment of the progress toward completion of the applicable contractual services. As of June 30, 2026, accrued clinical trial expenses included approximately $182,000 related primarily to the Company’s agreement with its CRO in connection with the Company’s clinical trial evaluating the Gen-3 HALO device for the treatment of insomnia.