NOTE 2 – LIQUIDITY

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business within one year after the date the consolidated financial statements are issued. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update No. 2014-15, “Presentation of Financial Statements - Going Concern” (Subtopic 205-40), our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued.

As of June 30, 2026, the Company had an accumulated deficit of $86,775,872, cash and cash equivalents of $8,188,140 and restricted cash of $3,012,271.

As of June 30, 2026, the Company had cash and cash equivalents of $8,188,140, restricted cash of $3,012,271 and current liabilities of approximately $3.0 million, resulting in positive working capital of approximately $6.2 million. Management believes that its existing cash on hand, combined with revenues generated from the commercialization of ARBLI™ (SCN-102) and REZENOPY^TM (SCN-110), and its planned financing activities, will be sufficient to fund the Company’s operations and meet its obligations as they become due for at least twelve months from the date these financial statements are issued. In making this assessment, management considered the following: (i) cash on hand of $8.2 million as of June 30, 2026, together with $3.0 million of restricted cash, which management believes is sufficient to fund current operating requirements over the next twelve months; (ii) the Company’s ability to modulate discretionary operating and development expenditures to align with available capital; (iii) ongoing sales of ARBLI™ (SCN-102), which generated its initial revenues during the second half of 2025 and is expected to contribute increasing revenues in 2026 and sales from the launch of REZENOPY^TM (SCN-110) in August 2026; and (iv) management’s plans to access additional capital through equity or debt financing as needed to fund accelerated pipeline development activities. The Company’s ability to continue as a going concern is dependent upon the successful commercialization of ARBLI™ (SCN-102) and REZENOPY^TM (SCN-110) and its ability to raise additional capital as needed. There can be no assurance that the Company’s operations will generate positive cash flows, or that additional financing will be available on favorable terms, or at all. If the Company is unable to achieve planned commercial revenues or obtain additional financing, the Company may be required to delay, reduce, or eliminate certain development programs or commercialization activities. While these conditions initially indicated substantial doubt about the Company’s ability to continue as a going concern, management believes that its plans described above alleviate that doubt for at least one year after the date these condensed consolidated financial statements are issued.