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Scienture’s mission is to identify, develop and bring to market innovative technology-based products to address unmet medical needs. Its targeted portfolio consists of short term and long-term opportunities with efficient development, regulatory, and go to market strategies. The Company also owns all outstanding equity interests of SCNX Holdings, LLC, which was formed in connection with the issuance of certain secured promissory notes to Streeterville Capital, LLC. See Note 9 – Debt for more information. Disposition of Legacy Subsidiaries The Company previously owned all ownership interests of Softell Inc. (f/k/a Trxade Inc.) (“Softell”), Integra Pharma Solutions, LLC (“IPS”), Bonum Health, Inc., and Bonum Health, LLC. Softell & IPS Entities On October 4, 2024, the Company and Softell entered into an Assignment and Assumption of Membership Interests, pursuant to which the Company transferred, and Softell accepted, 100% of the membership interests of IPS. As a result, IPS became a wholly-owned subsidiary of Softell. On April 8, 2025, the Company entered into a Membership Interest Purchase Agreement with Tollo Health, Inc. (“Tollo”), pursuant to which Tollo agreed to purchase and the Company agreed to sell all of the Company’s membership interests in IPS. Suren Ajjarapu, the Company’s former Chief Executive Officer, and Prashant Patel, the Company’s former President and Chief Operating Officer, each had a beneficial interest in Tollo as of the date that Tollo acquired IPS. In August 2025, Integral Health, including its subsidiary IPS, were acquired by third parties. Therefore, at June 30, 2026 and December 31, 2025, Integral Health and Tollo are no longer considered related parties. On April 8, 2025, the Company also entered into a Stock Purchase Agreement with Tollo, pursuant to which Tollo agreed to purchase and the Company agreed to sell all issued and outstanding shares of common stock of Softell. Bonum Health Entities On April 8, 2025, the Company also entered into a Stock Purchase Agreement with Tollo, pursuant to which Tollo agreed to purchase and the Company agreed to sell all issued and outstanding shares of common stock of Bonum Health, Inc. In November 2025, the Company dissolved Bonum Health, LLC. The divestitures described above are part of a broader strategic realignment at the Company designed to sharpen operational focus and unlock long-term value. It is aligned with the Company’s commitment to streamline its core operations, optimize its portfolio, and accelerate growth in the Branded and Specialty Pharma markets. See Note 3 for further detail on the dispositions. Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules of the SEC and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 30, 2026, and amended on April 30, 2026. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. All significant intercompany balances and transactions have been eliminated in consolidation. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended December 31, 2025, as reported in the Company’s Annual Report on Form 10-K have been omitted. Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from its estimates. Significant estimates for the six months ended June 30, 2026 and 2025 include the valuation of intangible assets, including goodwill, and gain (losses) on dispositions. Fair Value of Financial Instruments Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 24px">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1—Quoted prices in active markets for identical assets or liabilities.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.</td></tr> </table> The carrying amounts for cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of their short-term maturity. The Company’s outstanding warrant liability is measured at fair value on a recurring basis and is classified within Level 3 of the fair value hierarchy. See Note 11 – Warrants for the significant unobservable inputs used in the valuation and a roll-forward of the warrant liability for the six months ended June 30, 2026. Cash and Cash Equivalents The Company’s cash equivalents include U.S. Treasury Bills with original maturities of three months or less from the date of purchase. These instruments are classified as held-to-maturity and are recorded at amortized cost, which includes the initial investment cost and the accretion of any purchase discounts. The Company recognizes interest income over the life of the Treasury Bills using the effective interest method. Due to the short-term nature of these investments, the carrying value approximates fair value, and no unrealized gains or losses are recognized in the consolidated statements of operations or within accumulated other comprehensive income. As of June 30, 2026, cash and cash equivalents of $8,188,140 consisted of U.S. Treasury Bills with an amortized cost of $5,980,048, comprising a $2,000,000 face value T-Bill maturing July 14, 2026 and a $4,000,000 face value T-Bill maturing August 13, 2026, both acquired on May 13, 2026, and cash on deposit of $2,207,937. As of December 31, 2025, cash and cash equivalents of $6,662,008 consisted of U.S. Treasury Bills with an amortized cost of $5,479,786, comprising a $1,500,000 face value T-Bill maturing January 15, 2026 and a $4,000,000 face value T-Bill maturing February 12, 2026, and cash on deposit of $1,182,066. These instruments were purchased at a discount and are being accreted to face value over their respective holding periods using the effective interest method. Interest income accreted on these instruments is reported within interest income in the consolidated statements of operations and was $39,251 for the six months ended June 30, 2026. Concentration of Credit Risks and Major Customers Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents and receivables. The Company places its cash and cash equivalents with financial institutions. Deposits are insured to Federal Deposit Insurance Corporation limits. During the three and six months ended June 30, 2026, two customers accounted for <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20260401__20260630__srt--ProductOrServiceAxis__custom--FederalDepositInsuranceCorpLimitsMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_zNaKfpOeCS" title="Concentration of credit risks and major customers percentage">83.64% and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_dp_uPure_c20260101__20260630__srt--ProductOrServiceAxis__custom--FederalDepositInsuranceCorpLimitsMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_zEAZFpNRSRrl" title="Concentration of credit risks and major customers percentage">81.94% of revenue, respectively, and during the three and six months ended June 30, 2025, no sales to customers represented greater than 10% of revenue. Accounts Receivable, net Accounts receivable represent amounts due from wholesale distributors for the sale of pharmaceutical products. These receivables are recorded at the invoiced amount, net of estimated variable consideration including rebates, chargebacks, discounts, and other gross-to-net sales adjustments, consistent with the Company’s revenue recognition policy. Payment terms are generally net 90 days from the date of invoice. The Company monitors the creditworthiness of its customers and evaluates the collectability of outstanding receivables on an ongoing basis. The Company estimates expected credit losses on trade receivables in accordance with ASC 326 using an allowance for credit losses (“ACL”). The ACL reflects management’s estimate of lifetime expected credit losses based on historical loss experience, current conditions, and reasonable and supportable forecasts. Trade receivables are pooled by similar risk characteristics. Balances are written off when deemed uncollectible, and recoveries are recorded when received. The Company monitors credit risk primarily through aging and customer-specific evaluations. Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method and includes the purchase price, inbound freight, and other costs directly attributable to the acquisition of finished goods. Inventories primarily consist of finished pharmaceutical products held for sale. The Company regularly evaluates inventory for obsolescence and slow-moving items and records a reserve, if necessary, to write down inventories to their estimated net realizable value. Factors considered in the valuation include current market conditions, historical sales trends, product expiration dates, and projected demand. Inventory write-downs are recorded as a component of cost of goods sold and are not reversed if the market value of the inventory subsequently increases. Deferred Offering Costs The Company complies with the requirements of Accounting Standards Codification (“ASC”) 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed. Deferred offering costs were $0 as of June 30, 2026, $47,384 as of December 31, 2025, and $534,800 as of December 31, 2024. During the six months ended June 30, 2025, the Company reclassified $1,587,001 of deferred offering costs to additional paid-in capital upon the completion of equity offerings, and deferred offering costs were $554,586 as of June 30, 2025. During the six months ended June 30, 2026, the remaining $47,384 of deferred offering costs was written off to expense. Acquisitions The Company accounts for acquisitions and investments in businesses as business combinations if the target meets the definition of a business and (a) the target is a variable interest entity and the Company is the target’s primary beneficiary, and therefore the Company must consolidate its financial statements, or (b) the Company acquires more than 50% of the voting interest of the target and it was not previously consolidated. The Company records business combinations using the acquisition method of accounting, which requires all the assets acquired and liabilities assumed to be recorded at fair value as of the acquisition date. The excess of the purchase price over the estimated fair values of the net tangible and intangible assets acquired is recorded as goodwill. The application of the acquisition method of accounting for business combinations requires management to make significant estimates and assumptions in the determination of the fair value of assets acquired and liabilities assumed in order to properly allocate purchase price consideration between assets that are depreciated and amortized from goodwill. The fair value assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. Significant assumptions and estimates include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital, and the cost savings expected to be derived from acquiring an asset, if applicable. If the actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the Company’s financial statements may be exposed to potential impairment of the intangible assets and goodwill. If the Company’s investment involves the acquisition of an asset or group of assets that does not meet the definition of a business, the transaction is accounted for as an asset acquisition. An asset acquisition is recorded at cost, which includes capitalizing transaction costs, and does not result in the recognition of goodwill. On July 25, 2024, the Company acquired intangible assets of $76,400,000 and recognized goodwill of $21,372,960 pursuant to the Scienture acquisition (see Note 3). The acquired goodwill represents the value in excess of the net assets and liabilities acquired at the acquisition date. During the year ended December 31, 2025, the Company performed its annual impairment assessment of goodwill and indefinite-lived intangible assets and recognized aggregate impairment charges of $26,346,050. See Note 8 – Goodwill and Intangible Assets for a full description of the impairment testing methodology, triggering events, valuation inputs, and results. Goodwill Goodwill is an asset representing the excess cost over the fair market value of net assets acquired in business combinations. In accordance with Intangibles - Goodwill and Other (Topic 350), goodwill is not amortized but is tested annually for impairment or on an interim basis when indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. The Company’s reporting units discrete financial information is available and management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on the reporting structure. The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors assessed for each of the applicable reporting units include, but are not limited to, changes in macroeconomic conditions, industry and market considerations, cost factors, discount rates, competitive environments and financial performance of the reporting units. If the qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, a quantitative test is required. The Company also has the option to proceed directly to the quantitative test. Under the quantitative impairment test, the estimated fair value of each reporting unit is compared to its carrying value, including goodwill. If the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge equal to the excess would be recognized, up to a maximum amount of goodwill allocated to that reporting unit. Management can resume the qualitative assessment in any subsequent period for any reporting unit. Intangible Assets In connection with the Scienture acquisition, the Company identified product technologies assets. The product technologies represent a broad range of novel product candidates including new potential treatments for hypertension, migraine, pain and thrombosis and other related disorders. Each of the product technologies are in various phases of development and had not achieved regulatory approval as of the valuation date. The product technologies are 505(b)(2) products and represent modifications and new delivery methods of already approved drugs (rather than novel drug compounds/formulations/treatments which require significant regulatory approvals and testing). These assets should be amortized over their expected remaining economic life. The product technology assets will remain unamortized, subject to potential impairment testing, until the assets are placed in service, which is when commercialization of the product commences. At that point, the assets will be amortized over their expected remaining life (likely a period of 15-20 years based on the patent lives). SCN-102 commenced amortization during the year ended December 31, 2025, upon the asset commercialization of the product commenced for its intended use. Amortization is recorded on a straight-line basis over an estimated useful life of 13 years; amortization expense recognized from the commencement date through June 30, 2026 was $1,361,539. Other three intangible assets are not amortized until commercialization. See Note 8 – Goodwill and Intangible Assets for detail on impairment testing results. Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. See Note 8 – Goodwill and Intangible Assets for a full description of the impairment testing methodology and results for the year ended December 31, 2025. The Company did not record an impairment charge for the three and six months ended June 30, 2026 and 2025. Stock-Based Compensation The Company accounts for stock-based compensation to employees in accordance with ASC 718, “Compensation-Stock Compensation.” ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. Stock option forfeitures are recognized at the date of employee termination. Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2018-07 for the accounting of share-based payments granted to non-employees for goods and services. Leases The Company accounts for its leases under ASC 842, “Leases.” Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases, and are recorded on the consolidated balance sheet as both a right of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset result in straight-line rent expense over the lease term. For finance leases, interest on the lease liability and the amortization of the right of use asset results in front-loaded expense over the lease term. Variable lease expenses are recorded when incurred. In calculating the right of use asset and lease liability, the Company has elected to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and recognizes rent expense on a straight-line basis over the lease term. Research & Development Expenses Research and development costs are expensed in the period incurred in accordance with ASC 730, “Research and Development.” These expenses consist of independent contractor costs, costs for outsourced analytical research and development activities, batch manufacturing cost and, advisory costs as a part of research, market research costs and other regulatory consulting costs. Income (loss) Per Common Share Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Diluted net income per common share is computed similar to basic net income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The dilutive effect of the Company’s options and warrants is computed using the treasury stock method. As of June 30, 2026, we had 177,536 outstanding warrants and 19,005 stock options, each exercisable for shares of common stock, as well as <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20260630__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_zsR3rSqvRa65" title="Exercisable shares of common stock">15,759 shares of Series B Preferred Stock outstanding and 1,448,331 unvested restricted shares of common stock. The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="display: none; text-align: left"> </td><td style="display: none; text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20260401__20260630_zNbGsA7JLAP5" style="border-bottom: Black 1pt solid; display: none; text-align: center; font-weight: bold">2026</td><td style="display: none; text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="display: none; text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20250401__20250630_zC4grmY4toch" style="border-bottom: Black 1pt solid; display: none; text-align: center; font-weight: bold">2025</td><td style="display: none; text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="display: none; text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20260101__20260630_zzqkGYBiLxA" style="border-bottom: Black 1pt solid; display: none; text-align: center; font-weight: bold">2026</td><td style="display: none; text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="display: none; text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250101__20250630_zsW8xX2SDCXc" style="border-bottom: Black 1pt solid; display: none; text-align: center; font-weight: bold">2025</td><td style="display: none; text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="text-align: center; font-weight: bold">Three Months Ended</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="text-align: center; font-weight: bold">Six Months Ended</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">June 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">June 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2026</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2026</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold">Numerator:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_401_eus-gaap--NetIncomeLoss_iT_mtNILzhem_zlOIYb7S75s8" style="vertical-align: bottom; background-color: White"> <td style="width: 36%; text-align: left">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(2,822,371</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(6,720,573</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(6,224,635</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(9,784,570</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--WeightedAverageNumberOfSharesOutstandingAbstract_iB_zeEJsVeF0jg4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Denominator for EPS – weighted average shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_i01_pid_zcwGIe6P4hV2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,615,815</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,141,443</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,615,815</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,844,024</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_i01_pid_zCrxk5BCkhAf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,615,815</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,141,443</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,615,815</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,844,024</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--EarningsPerShareAbstract_iB_zzvbGdF9E5Vk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--EarningsPerShareBasic_i01_pid_z7vAU1fwP8ei" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Basic</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.48</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.16</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.83</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--EarningsPerShareDiluted_i01_pid_zRSvmlxTCL83" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.48</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.16</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.83</td><td style="text-align: left">)</td></tr> </table> Income Taxes The Company’s provision for income taxes was $0 for the three and six months ended June 30, 2026 and 2025. The income tax provisions for these periods are based upon estimates of annual income (loss), annual permanent differences and statutory tax rates in the various jurisdictions in which the Company operates. For all periods presented, the Company utilized net operating loss carryforwards to offset the impact of any taxable income. The Company’s tax rate differs from the applicable statutory rates due primarily to the establishment of a valuation allowance, utilization of deferred and the effect of permanent differences and adjustments. Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public business entities to disclose, in tabular format, the nature of certain expenses included in specific income statement line items, including disaggregation by natural classification (inventory purchases, employee compensation, depreciation, intangible asset amortization, and other categories) and disclosure of total selling expenses. The guidance is effective for annual periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard and anticipates it will result in additional footnote disclosures but does not expect a material impact on its financial position, results of operations, or cash flows. Management does not believe that any other recently issued, but not yet effective, accounting standards will have a material effect on the accompanying consolidated financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

8188140

5980048

2000000

4000000

2207937

6662008

5479786

1500000

4000000

1182066

39251

0.8364

0.8194

47384

534800

1587001

554586

-47384

76400000

21372960

26346050

P15Y

P20Y

P13Y

1361539

177536

19005

15759

1448331

The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="display: none; text-align: left"> </td><td style="display: none; text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20260401__20260630_zNbGsA7JLAP5" style="border-bottom: Black 1pt solid; display: none; text-align: center; font-weight: bold">2026</td><td style="display: none; text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="display: none; text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20250401__20250630_zC4grmY4toch" style="border-bottom: Black 1pt solid; display: none; text-align: center; font-weight: bold">2025</td><td style="display: none; text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="display: none; text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20260101__20260630_zzqkGYBiLxA" style="border-bottom: Black 1pt solid; display: none; text-align: center; font-weight: bold">2026</td><td style="display: none; text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="display: none; text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250101__20250630_zsW8xX2SDCXc" style="border-bottom: Black 1pt solid; display: none; text-align: center; font-weight: bold">2025</td><td style="display: none; text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="text-align: center; font-weight: bold">Three Months Ended</td><td style="text-align: center; font-weight: bold"> </td><td style="text-align: center; font-weight: bold"> </td> <td colspan="6" style="text-align: center; font-weight: bold">Six Months Ended</td><td style="text-align: center; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">June 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">June 30,</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2026</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2026</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">2025</td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold">Numerator:</td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_401_eus-gaap--NetIncomeLoss_iT_mtNILzhem_zlOIYb7S75s8" style="vertical-align: bottom; background-color: White"> <td style="width: 36%; text-align: left">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(2,822,371</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(6,720,573</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(6,224,635</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">(9,784,570</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold">Denominator:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--WeightedAverageNumberOfSharesOutstandingAbstract_iB_zeEJsVeF0jg4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Denominator for EPS – weighted average shares</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_i01_pid_zcwGIe6P4hV2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,615,815</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,141,443</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,615,815</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,844,024</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_i01_pid_zCrxk5BCkhAf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Diluted</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,615,815</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,141,443</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,615,815</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,844,024</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--EarningsPerShareAbstract_iB_zzvbGdF9E5Vk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Net loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--EarningsPerShareBasic_i01_pid_z7vAU1fwP8ei" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Basic</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.48</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.16</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.83</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_eus-gaap--EarningsPerShareDiluted_i01_pid_zRSvmlxTCL83" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.07</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.48</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.16</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.83</td><td style="text-align: left">)</td></tr> </table>

-2822371

-6720573

-6224635

-9784570

39615815

14141443

39615815

11844024

39615815

14141443

39615815

11844024

-0.07

-0.48

-0.16

-0.83

-0.07

-0.48

-0.16

-0.83

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 REZENOPYTM (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 REZENOPYTM (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 REZENOPYTM (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.

-86775872

8188140

3012271

8188140

3012271

3000000.0

6200000

8200000

3000000.0

NOTE 3 – ACQUISITIONS AND DISPOSITIONS Acquisitions Scienture, Inc. The Company evaluated the Agreement and Plan of Merger, dated July 25, 2024, by and among the Company, MEDS Merger Sub I, Inc., MEDS Merger Sub II, LLC, and Scienture (the “Scienture Merger Agreement”) pursuant to ASC 805 and ASU 2017-01, Topic 805, “Business Combinations.” The Company first determined that Scienture met the definition of a business as it includes inputs and a substantive process that together significantly contribute to the ability to create outputs. Scienture’s results of operations are included in the Company’s consolidated financial statements from the date of acquisition. The acquisition method of accounting requires, among other things, that the assets acquired and liabilities assumed in a business combination be measured at their estimated respective fair values as of the closing date of the acquisition. Goodwill recognized in connection with this transaction represents primarily the potential economic benefits that the Company believes may arise from the acquisition. The purchase price allocation was finalized during the one-year measurement period following the acquisition date, which concluded on July 25, 2025. On July 25, 2024, the parties consummated the mergers contemplated by the Scienture Merger Agreement (together, the “Scienture Merger”) and the Company issued <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240725__20240725__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zrq4vz5IlGNi" title="Issuance of common stock pursuant to Merger">291,536 shares of common stock and <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240725__20240725__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--StatementClassOfStockAxis__custom--SeriesXPreferredStockMember__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_z8RjFcej3D7a" title="Issuance of shares pursuant to Merger">6,826,753 shares of Series X Preferred Stock at the closing. The aggregate fair value of the purchase price consideration was $78,646,184. The fair value was determined by the underlying stock price of the common stock on the date of the Scienture Merger, which was $11.63 per share, which was utilized for both the issuance of common and preferred stock after evaluating the terms of the Series X Preferred Stock. The Company also applied a discount for lack of marketability of 5% due to certain lock-up terms on the shares issued. <p id="xdx_898_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zi6eDDRyY7x1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following summarizes the purchase price consideration and the preliminary purchase price allocation as of the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20240725__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zG4bhnwWLAhf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">July 25, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Purchase consideration:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 78%; text-align: left; padding-left: 10pt">Common stock</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable_maPu1_c20240725__20240725__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_znq6GB06zZq4" style="width: 18%; text-align: right" title="Common stock, at fair value">3,221,245</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Series X preferred stock</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--BusinessCombinationConsiderationTransferredOther1_maPu1_c20240725__20240725__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zOVxOuTahsIb" style="border-bottom: Black 1pt solid; text-align: right" title="Series X Preferred Stock, at fair value">75,424,939</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total purchase consideration</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_987_eus-gaap--BusinessCombinationConsiderationTransferred1_iT_mtPu1_c20240725__20240725__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zH3Zih2sfaNc" style="border-bottom: Black 1pt solid; text-align: right" title="Total purchase consideration">78,646,184</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Purchase price allocation:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_maBCRIAzhFd_zD2JHUXM7AV8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Cash</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">132,976</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAssets_iI_maBCRIAzhFd_z46luEZe9HS8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Operating lease right-of-use assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">61,578</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--Goodwill_iI_maBCRIAzhFd_zepgFeTXBJ7l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Goodwill</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21,372,960</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill_iI_maBCRIAzhFd_ziyaDSW4etTi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Intangible assets - product technologies</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">76,400,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable_iNI_di_msBCRIAzhFd_zc6xck4aCPvc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Accounts payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(987,097</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccruedLiabilities_iNI_di_msBCRIAzhFd_zUJjizv9ke4i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Accrued liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,198,134</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesLoanPayableRelatedParty_iNI_di_msBCRIAzhFd_zDtPns7OOzL" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Loan payable, related party</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(265,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesOperatingLeaseLiability_iNI_di_msBCRIAzhFd_zui4CBkAwZdi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Lease liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(61,886</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDevelopmentAgreementLiability_iNI_di_msBCRIAzhFd_zIsA8gnqpvP5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Development agreement liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,285,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesConvertibleNotesPayable_iNI_di_msBCRIAzhFd_zCAwKcYVir7j" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Long-term convertible notes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,000,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredTaxLiability_iNI_di_msBCRIAzhFd_zInHJOW8qpNa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Deferred tax liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(13,524,213</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet_iTI_mtBCRIAzhFd_zLpQgXSKy4Fd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Net assets acquired</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">78,646,184</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> Goodwill is primarily attributable to the go-to-market synergies that are expected to arise as a result of the acquisition and other intangible assets that do not qualify for separate recognition. The goodwill is not deductible for tax purposes. Dispositions and Divestitures Refer to Note 1 and 4 for further detail on the disposition of the Company’s legacy subsidiaries. Discontinued Operations In accordance with the provisions of ASC 205-20, the Company has excluded the results of discontinued operations from its results of continuing operations in the accompanying consolidated statements of operations. For the three and six months ended June 30, 2026 and 2025, the results of discontinued operations were $0.

291536

6826753

78646184

11.63

<p id="xdx_898_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock_hus-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zi6eDDRyY7x1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following summarizes the purchase price consideration and the preliminary purchase price allocation as of the acquisition date: SCHEDULE OF PURCHASE PRICE ALLOCATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20240725__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zG4bhnwWLAhf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">July 25, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Purchase consideration:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 78%; text-align: left; padding-left: 10pt">Common stock</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable_maPu1_c20240725__20240725__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_znq6GB06zZq4" style="width: 18%; text-align: right" title="Common stock, at fair value">3,221,245</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Series X preferred stock</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--BusinessCombinationConsiderationTransferredOther1_maPu1_c20240725__20240725__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zOVxOuTahsIb" style="border-bottom: Black 1pt solid; text-align: right" title="Series X Preferred Stock, at fair value">75,424,939</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total purchase consideration</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_987_eus-gaap--BusinessCombinationConsiderationTransferred1_iT_mtPu1_c20240725__20240725__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zH3Zih2sfaNc" style="border-bottom: Black 1pt solid; text-align: right" title="Total purchase consideration">78,646,184</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Purchase price allocation:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCashAndEquivalents_iI_maBCRIAzhFd_zD2JHUXM7AV8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Cash</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">132,976</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedOperatingLeaseRightOfUseAssets_iI_maBCRIAzhFd_z46luEZe9HS8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Operating lease right-of-use assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">61,578</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--Goodwill_iI_maBCRIAzhFd_zepgFeTXBJ7l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Goodwill</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">21,372,960</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill_iI_maBCRIAzhFd_ziyaDSW4etTi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Intangible assets - product technologies</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">76,400,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccountsPayable_iNI_di_msBCRIAzhFd_zc6xck4aCPvc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Accounts payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(987,097</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesAccruedLiabilities_iNI_di_msBCRIAzhFd_zUJjizv9ke4i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Accrued liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,198,134</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesLoanPayableRelatedParty_iNI_di_msBCRIAzhFd_zDtPns7OOzL" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Loan payable, related party</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(265,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesOperatingLeaseLiability_iNI_di_msBCRIAzhFd_zui4CBkAwZdi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Lease liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(61,886</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDevelopmentAgreementLiability_iNI_di_msBCRIAzhFd_zIsA8gnqpvP5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Development agreement liability</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,285,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesConvertibleNotesPayable_iNI_di_msBCRIAzhFd_zCAwKcYVir7j" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Long-term convertible notes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,000,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40D_ecustom--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedCurrentLiabilitiesDeferredTaxLiability_iNI_di_msBCRIAzhFd_zInHJOW8qpNa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Deferred tax liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(13,524,213</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedNet_iTI_mtBCRIAzhFd_zLpQgXSKy4Fd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Net assets acquired</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">78,646,184</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

3221245

75424939

78646184

132976

61578

21372960

76400000

987097

1198134 265000 61886 1285000 2000000 13524213

78646184

NOTE 4- RELATED PARTY TRANSACTIONS Wellgistics Health and Tollo Health On November 21, 2023, but effective September 14, 2023, the Company issued a promissory note (the “Wellgistics Note”) to Wellgistics Health, Inc. (f/k/a Danam Health Inc.) (“Wellgistics”) in the amount of $300,000. The Company prepaid $250,000 prior to the execution date. The Wellgistics Note did not accrue interest. As of December 31, 2023, the balance of the Wellgistics Note was $50,000. The Wellgistics Note was fully paid off in February 2024. As of March 31, 2025, other receivables included a $3,828,769 receivable from Wellgistics and $215,000 receivable from Tollo. The receivables were unsecured, non-interest bearing and due on demand. The receivables were maintained by the Company’s former IPS subsidiary, which was sold to Tollo as of April 30, 2025. On April 30, 2025, the Company completed the sale of its subsidiaries, IPS, Softell, and Bonum Health, Inc. to Tollo in exchange for a $<span id="xdx_90E_eus-gaap--DebtInstrumentFaceAmount_iI_c20250430__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zCXIOtDzNqEe" title="Note principal amount">5,000,000 promissory note bearing interest at the prime rate and maturing on <span id="xdx_907_eus-gaap--DebtInstrumentMaturityDate_dd_c20250430__20250430__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zVrlBoTed9i5" title="Maturity date">June 30, 2030. The note requires Tollo to repay <span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20250430__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_z5BGe4sPvh8f" title="Interest rate">20% of any future equity financing proceeds toward the outstanding balance. In connection with the transaction, the Company recorded a $<span id="xdx_902_eus-gaap--NotesReceivableNet_iI_c20250430__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zDr0GICqSG63" title="Note principal amount">5,000,000 promissory note receivable, and derecognized subsidiaries’ accounts payable of $<span id="xdx_90C_eus-gaap--AccountsPayableCurrentAndNoncurrent_iI_c20250430__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zXUTjgIdRPnf" title="Accounts payable">117,162, other receivables of $<span id="xdx_90E_eus-gaap--OtherReceivables_iI_c20250430__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zyObW9vPDMcd" title="Other receivables">4,219,239, operating lease right-of-use assets of $<span id="xdx_903_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20250430__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zvYKV4dgxBYe" title="Operating lease right-of-use assets">142,138, operating lease liability of $<span id="xdx_90B_eus-gaap--OperatingLeaseLiability_iI_c20250430__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_znyvDl2UXuj9" title="Operating lease liability">158,687 and a related party note receivable of $<span id="xdx_906_eus-gaap--AccountsNotesAndLoansReceivableNetCurrent_iI_c20250430__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionAxis__custom--TolloMember_zd0uaL9lyd4j" title="Note receivables">1,300,000. As such, the Company recognized a loss on disposition of $<span id="xdx_905_eus-gaap--GainLossOnDispositionOfAssets1_di_c20250430__20250430__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zAxqATXJFq75" title="Gain (loss) on disposition of assets">385,528. On June 24, 2025, the promissory note was assigned by Tollo to Integral Health, Inc. Suren Ajjarapu, the Company’s former Chief Executive Officer, and Prashant Patel, the Company’s former President and Chief Operating Officer, each had a beneficial interest in Tollo as of June 30, 2025. In August 2025, Integral Health, including its subsidiary IPS, were acquired by third parties. Therefore, as of December 31, 2025, and June 30, 2026, Integral Health and Tollo are no longer considered related parties. As of December 31, 2025, the note receivable was outstanding and the Company recognized $250,000 in interest income during the year ended December 31, 2025, which was reclassified from note receivable, related party to note receivable on the consolidated balance sheet. As of June 30, 2026, the note receivable was outstanding and the Company recognized $93,750 and $187,500 in interest income during the three and six months ended June 30, 2026, respectively. As of June 30, 2026, accrued interest receivable on the note was $437,500. See Note 6 for detail on the note receivable from Wood Sage, LLC.

300000

250000

50000

3828769

215000

5000000

2030-06-30

0.20

5000000

117162

4219239

142138

158687

1300000

-385528

250000

93750 187500

437500

NOTE 5 – REVENUE RECOGNITION The Company’s sole source of revenue is product revenue from the sale of pharmaceutical products through wholesale distribution channels. ARBLI™ (SCN-102, Losartan Potassium Oral Suspension) received FDA approval in March 2025 and commenced commercialization in the third quarter of 2025. Revenue is recognized when control transfers to the wholesale distributor, generally upon delivery. Revenue is measured at the net transaction price equal to the gross invoice price reduced by estimated variable consideration. Gross-to-net adjustments include: Chargebacks. The difference between the invoice price charged to wholesale distributors and the lower contract price distributors extend to end-customers (retail pharmacies, hospitals, clinics). Estimated based on expected sell-through and contractual terms. Wholesaler Rebates and Distribution Service Fees. Fees and rebates paid to wholesale distributors and group purchasing organizations under contractual arrangements. Estimated based on contracted rates and expected sales volumes. Prompt Pay Discounts. Discounts offered to wholesale distributors for timely payment, estimated based on contractual terms. Product Returns. Returns accepted under limited conditions (generally damaged, expired, or defective product). Returns have not been material to date given the early stage of ARBLI™ commercialization. Estimates of variable consideration are reassessed each reporting period. Changes in estimates are recorded as adjustments to revenue in the period identified. Accrued gross-to-net liabilities are included within accrued liabilities on the consolidated balance sheets. Revenue disaggregated by product for the three and six months ended June 30, 2026 and 2025 is as follows: SCHEDULE OF DISAGGREGATED BY PRODUCT <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Product</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260401__20260630_zfI5PiV7DW7a" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20250401__20250630_zts3gAcVh067" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20260101__20260630_zZGqBfuhQ7X9" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250101__20250630_z6QvNzzieAg1" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three Months Ended</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Six Months Ended</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">June 30,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">June 30,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Product</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td></tr> <tr id="xdx_40E_eus-gaap--Revenues_iT_hsrt--ProductOrServiceAxis__custom--LosartanPotassiumOralSuspensionMember_z2x0G7P0fs11" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 36%; text-align: left">ARBLI™ (SCN-102, Losartan Potassium Oral Suspension)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">343,639</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">399,964</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_iT_hsrt--ProductOrServiceAxis__custom--PharmaceuticalProductResaleMember_zAD7WHmbXlzh" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Pharmaceutical product resale</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">10,258</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_iT_zoasZT85Abl2" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total revenues</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">343,639</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">399,964</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,258</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Revenue disaggregated by product for the three and six months ended June 30, 2026 and 2025 is as follows: SCHEDULE OF DISAGGREGATED BY PRODUCT <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; display: none; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Product</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20260401__20260630_zfI5PiV7DW7a" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20250401__20250630_zts3gAcVh067" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20260101__20260630_zZGqBfuhQ7X9" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250101__20250630_z6QvNzzieAg1" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Three Months Ended</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td> <td colspan="6" style="font: bold 10pt Times New Roman, Times, Serif; text-align: center">Six Months Ended</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">June 30,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">June 30,</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left">Product</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2026</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td></tr> <tr id="xdx_40E_eus-gaap--Revenues_iT_hsrt--ProductOrServiceAxis__custom--LosartanPotassiumOralSuspensionMember_z2x0G7P0fs11" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 36%; text-align: left">ARBLI™ (SCN-102, Losartan Potassium Oral Suspension)</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">343,639</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">399,964</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td style="font: 10pt Times New Roman, Times, Serif; width: 12%; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--Revenues_iT_hsrt--ProductOrServiceAxis__custom--PharmaceuticalProductResaleMember_zAD7WHmbXlzh" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Pharmaceutical product resale</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right">10,258</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--Revenues_iT_zoasZT85Abl2" style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: bold 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 2.5pt">Total revenues</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">343,639</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">-</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">399,964</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right">10,258</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

343639

399964

10258

343639

399964

10258

NOTE 6 – NOTES RECEIVABLE – RELATED PARTY On August 22, 2023, the Company received a Promissory Note (the “Wood Sage Note”) in the amount of $1,300,000 from Wood Sage, LLC. The Wood Sage Note bears no interest and is currently due and payable. As of June 30, 2026 and December 31, 2025, the outstanding balance of the Wood Sage Note was $<span id="xdx_903_eus-gaap--NotesAndLoansReceivableNetCurrent_iI_c20260630__us-gaap--DebtInstrumentAxis__custom--WoodSageNoteMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zUIQlcYRi1vg" title="Note receivables"><span id="xdx_90F_eus-gaap--NotesAndLoansReceivableNetCurrent_iI_c20251231__us-gaap--DebtInstrumentAxis__custom--WoodSageNoteMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zlvuCtMVTyp5" title="Note receivables">0. The note was held by Softell, a former subsidiary of the Company. On April 30, 2025, the Company completed the sale of its subsidiaries, IPS, Softell and Bonum Health, Inc., to Tollo in exchange for a $<span id="xdx_90C_eus-gaap--DebtInstrumentFaceAmount_iI_c20250430__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--IPSSoftellAndBonumHealthIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zBrSpL63rUjk" title="Note principal amount">5,000,000 promissory note bearing interest at the prime rate and maturing on <span id="xdx_90D_eus-gaap--DebtInstrumentMaturityDate_dd_c20250430__20250430__us-gaap--DebtInstrumentAxis__custom--PromissoryNoteMember__dei--LegalEntityAxis__custom--IPSSoftellAndBonumHealthIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zBz706rnAYXh" title="Note maturity date">June 30, 2030 (see Notes 1 and 4). In August 2025, Integral Health, including its subsidiary IPS, were acquired by third parties. Therefore, at June 30, 2026 and December 31, 2025, Integral Health and Tollo was no longer considered a related party, which was reclassified from note receivable, related party to note receivable on the consolidated balance sheet.

1300000

5000000

2030-06-30

NOTE 7 – INVENTORY Inventory value is determined using the first-in, first-out method and is stated at the lower of cost or net realizable value. As of June 30, 2026 and December 31, 2025, inventory was comprised of the following: SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260630_zNyVqRx3cRC8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251231_z173vYNg4879" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--InventoryFinishedGoods_iI_maINzsCx_zQIsnmZ2A0h4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Finished goods</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">203,074</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">213,408</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--InventoryNet_iTI_mtINzsCx_zZSBNGUj7Y5i" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Inventory</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">203,074</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">213,408</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20260630_zNyVqRx3cRC8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20251231_z173vYNg4879" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40A_eus-gaap--InventoryFinishedGoods_iI_maINzsCx_zQIsnmZ2A0h4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">Finished goods</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">203,074</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">213,408</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--InventoryNet_iTI_mtINzsCx_zZSBNGUj7Y5i" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Inventory</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">203,074</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">213,408</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

203074

213408

203074

213408

NOTE 8 – GOODWILL AND INTANGIBLE ASSETS In connection with the Scienture Merger on July 25, 2024, the Company recorded goodwill of $21,372,960 and intangible assets of $76,400,000. The purchase price allocation of intangible assets was evaluated under ASC 805. The identified intangible assets were determined to be product technologies, and were valued accordingly by each product candidate: SCHEDULE OF INTANGIBLE ASSETS WERE DETERMINED TO BE PRODUCT TECHNOLOGIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; float: right; border-collapse: collapse; width: 89%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left">Product Candidate</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260630__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zeBcYREZxgjj" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_hus-gaap--AwardTypeAxis__custom--SCN102Member_zExLgcJ2ZDCc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 78%">SCN-102(a)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">23,600,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_hus-gaap--AwardTypeAxis__custom--SCN104Member_zp1xw4b6bRLi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">SCN-104(b)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_hus-gaap--AwardTypeAxis__custom--SCN106Member_zjJxky7L24fg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">SCN-106(c)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,000,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_hus-gaap--AwardTypeAxis__custom--SCN107Member_zH2qj9H3txfg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">SCN-107(d)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_zzzK5HUOBbC5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Intangible Assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">76,400,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 72px; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 24px">(a)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SCN-102 received regulatory approval in March 2025.Product commercialization began in the third quarter of 2025.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">(b)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Management expects SCN-104 to achieve regulatory approval in late 2028, with product commercialization projected to begin in late 2028.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">(c)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Management expects SCN-106 to achieve regulatory approval in 2029, with product commercialization projected to begin in 2029.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">(d)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Management expects SCN-107 to achieve regulatory approval in 2029, with product commercialization projected to begin in 2030.</td></tr> </table> The fair value of the product technologies was determined by the Income Approach: Multi-Period Excess Earnings Methods (“MPEEM”). The MPEEM measures economic benefits by calculating the cash flows attributable to an asset after deducting appropriate returns for contributory assets used by the business in generating the asset’s revenue and earnings. The MPEEM utilized revenue and cash flow projections through 2030 based on each product candidate’s phase of development. Key assumptions include a 2% long-term revenue growth rate and 3% contributory asset charge rate. The Company discounted the expected future cash flows at a 53.0% rate of return, equal to the weighted-average cost of capital plus 10%, to reflect the risk of the cash flows related to the product technologies. The Company then summed the present values of the estimated future cash flows and included an amortization tax benefit to the value indication of each of the product technologies. The fair value of each product technology was determined using the MPEEM, an income approach that isolates the cash flows attributable solely to the subject intangible asset by projecting revenues and operating costs, deducting contributory asset charges (working capital at 4.0%, property and equipment at 12.9%), and discounting the resulting excess earnings to present value using risk-adjusted discount rates. A tax amortization benefit is included in each fair value indication. Projections reflect each asset’s market size, projected penetration, and net pricing assumptions, with a long-term growth rate of 4.8% applied at terminal value, benchmarked to long-term U.S. nominal GDP expectations. Key valuation inputs included: a risk-free rate of 4.79% (20-year U.S. Treasury yield as of December 31, 2025); a market rate of return of 13.0% (10-year CAGR of S&P 500, 2016–2025); an unlevered beta of 0.98 (Damodaran pharmaceutical industry data); and an effective tax rate of 26.7% (combined U.S. federal rate of 21% and New York state rate of 7.3%). Goodwill Impairment – ASC 350 In accordance with ASC 350-20, the Company performs its annual goodwill impairment test as of December 31. The Company operates as a single operating segment and, accordingly, goodwill is allocated to and tested at the consolidated entity level as a single reporting unit, consistent with ASC 280 and the manner in which the Company’s Chief Operating Decision Maker reviews operating results for purposes of resource allocation and performance evaluation. As of December 31, 2025, management identified the following indicators of impairment: (i) continued operating losses from continuing operations; (ii) a significant decline in the Company’s market capitalization relative to the carrying value of its net assets; and (iii) challenging conditions within the specialty pharmaceutical sector. Based on the presence of these triggering events, the Company bypassed the qualitative assessment and proceeded directly to a quantitative impairment test. The fair value of the reporting unit was estimated using the Market Capitalization Method, representing a Level 1 input under ASC 820, based on the Company’s quoted share price of $<span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20251231__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zut3x2APB4v8" title="Share price">0.51 and 40,630,815 shares outstanding as of December 31, 2025, resulting in an estimated fair value of approximately $20.7 million. No control premium or marketability discount was applied, as the Company’s shares are actively traded and the quoted market price represents the most reliable indicator of fair value from a market participant perspective. The carrying amount of the reporting unit was approximately $82.7 million, resulting in a shortfall of approximately $62.0 million. As the shortfall exceeded the recorded goodwill balance, the entire goodwill balance was determined to be impaired in accordance with ASC 350-20-35-3C. The Company recognized a non-cash goodwill impairment charge of $21,372,960 for the year ended December 31, 2025, recorded within impairment loss in the consolidated statements of operations. As of June 30, 2026 and December 31, 2025, no goodwill remains on the consolidated balance sheet. Intangible Assets – Classification and Annual Assessment The Company’s intangible assets consist of four product technology assets acquired in connection with the Scienture Merger. SCN-102 (ARBLI™ – Losartan Oral Suspension) received FDA approval in March 2025 and commenced commercialization during the third quarter of 2025; accordingly, it is classified as a finite-lived intangible asset amortized on a straight-line basis over an estimated useful life of 13 years, reflecting remaining patent life. SCN-104 (DHE Mesylate Injection), SCN-106 (Cathflo Injection – Potential Biosimilar), and SCN-107 (Bupivacaine Long-Acting Injection) remain in pre-commercial development and are classified as indefinite-lived in-process research and development (“IPR&D”) assets subject to annual impairment testing under ASC 350-30. Indefinite-Lived IPR&D – Annual Impairment Test (ASC 350-30) The Company performs its annual impairment test of indefinite-lived IPR&D assets as of December 31 each year, and on an interim basis when triggering events are identified. The fair value of each IPR&D asset was estimated using MPEEM, as described above. The required return on asset applied to SCN-104, SCN-106, and SCN-107 was 49.9%, reflecting a base unlevered cost of capital of 12.9% plus a 37.0% development and commercialization risk premium to capture regulatory approval uncertainty, market adoption risk, and execution risk associated with pre-commercial pharmaceutical assets. Based on the annual impairment test, the carrying amounts of SCN-104, SCN-106, and SCN-107 exceeded their respective estimated fair values as of December 31, 2025. In accordance with ASC 350-30-35, each asset was written down to its estimated fair value. Finite-Lived Intangible Asset – Recoverability Test (ASC 360) SCN-102 (ARBLI™ – Losartan Oral Suspension) received FDA approval in March 2025 and commenced commercialization during the third quarter of 2025. Upon commencement, SCN-102 was reclassified from indefinite-lived IPR&D to a finite-lived intangible asset and amortization commenced on a straight-line basis over an estimated useful life of 13 years. Amortization expense recognized from commercialization through December 31, 2025 was $453,846, and $453,846 and $<span id="xdx_906_eus-gaap--AmortizationOfIntangibleAssets_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN102Member_zpnYIBCF5HR3" title="Amortization of intangible assets">907,693 during the three and six months ended June 30, 2026, respectively, resulting in a carrying amount of $22,238,461 as of June 30, 2026. Due to the presence of impairment indicators as of December 31, 2025, the Company evaluated SCN-102 for recoverability under ASC 360-10-35. The recoverability test compares the carrying amount of the asset to the sum of undiscounted future cash flows expected to result from its use and eventual disposition. The total undiscounted future cash flows attributable to SCN-102, based on management’s projections, were approximately $71.1 million, exceeding the carrying amount of $23.1 million by approximately $48.0 million. Accordingly, SCN-102 was determined to be recoverable and no impairment loss was recognized for this asset as of December 31, 2025. The following table summarizes the carrying amounts of intangible assets as of June 30, 2026 and December 31, 2025 (in thousands): SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; float: right; border-collapse: collapse; width: 89%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left">Asset</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20260630_zZN842l028P" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20251231_zpEu2RUReJl4" style="border-bottom: Black 1pt solid; text-align: center">Dec 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN102Member_zqKB7f4FoNu5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 60%">SCN-102 – finite-lived (net of amortization of $908 for the six months ended June 30, 2026 and nil for the six months ended June 30, 2025)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">22,238</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">23,146</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN104Member_zmXWe899jXE6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">SCN-104 – indefinite-lived IPR&D</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,339</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,339</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN106Member_zBlMq4DtIDm4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">SCN-106 – indefinite-lived IPR&D</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13,381</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13,381</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN107Member_zDB5FPC6PFEe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">SCN-107 – indefinite-lived IPR&D</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,107</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,107</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_pn3n3_zTAgBZu9YETa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total intangible assets, net</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">70,065</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">70,973</td><td style="font-weight: bold; text-align: left"> </td></tr> </table><div style="clear: both"></div> The decrease in intangible assets from $76,400,000 as of December 31, 2024 to $70,973,064 as of December 31, 2025 reflects $4,973,090 of impairment charges recognized on SCN-104, SCN-106, and SCN-107, and $<span id="xdx_907_eus-gaap--AmortizationOfIntangibleAssets_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN102Member_zGiT8yNGSuy" title="Amortization of intangible assets">453,846 of amortization expense recognized during the year ended December 31, 2025 and $<span id="xdx_90D_eus-gaap--AmortizationOfIntangibleAssets_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN102Member_zCvQYHqPScLd" title="Amortization of intangible assets">907,693 during the six months ended June 30, 2026, on SCN-102 following its commercialization. Estimated future annual amortization expense for SCN-102 is approximately $<span id="xdx_90D_ecustom--EstimatedFutureAnnualAmortizationExpense_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN102Member_zy8iP8EmNcd1" title="Estimated future annual amortization expense">1,815,385 per year through the remainder of its estimated useful life. The three IPR&D assets will be reclassified from indefinite-lived to finite-lived and commence amortization upon commercialization: SCN-104 is expected to launch in 2028, SCN-106 in 2029, and SCN-107 in 2030.

21372960

76400000

SCHEDULE OF INTANGIBLE ASSETS WERE DETERMINED TO BE PRODUCT TECHNOLOGIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; float: right; border-collapse: collapse; width: 89%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left">Product Candidate</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260630__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zeBcYREZxgjj" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_hus-gaap--AwardTypeAxis__custom--SCN102Member_zExLgcJ2ZDCc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 78%">SCN-102(a)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">23,600,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_hus-gaap--AwardTypeAxis__custom--SCN104Member_zp1xw4b6bRLi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">SCN-104(b)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">25,000,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_hus-gaap--AwardTypeAxis__custom--SCN106Member_zjJxky7L24fg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">SCN-106(c)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,000,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_hus-gaap--AwardTypeAxis__custom--SCN107Member_zH2qj9H3txfg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">SCN-107(d)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,800,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--IntangibleAssetsNetExcludingGoodwill_iI_zzzK5HUOBbC5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Intangible Assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">76,400,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 72px; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 24px">(a)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SCN-102 received regulatory approval in March 2025.Product commercialization began in the third quarter of 2025.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">(b)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Management expects SCN-104 to achieve regulatory approval in late 2028, with product commercialization projected to begin in late 2028.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">(c)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Management expects SCN-106 to achieve regulatory approval in 2029, with product commercialization projected to begin in 2029.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top">(d)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Management expects SCN-107 to achieve regulatory approval in 2029, with product commercialization projected to begin in 2030.</td></tr> </table>

23600000

25000000

15000000

12800000

76400000

Key assumptions include a 2% long-term revenue growth rate and 3% contributory asset charge rate. The Company discounted the expected future cash flows at a 53.0% rate of return, equal to the weighted-average cost of capital plus 10%, to reflect the risk of the cash flows related to the product technologies.

The fair value of each product technology was determined using the MPEEM, an income approach that isolates the cash flows attributable solely to the subject intangible asset by projecting revenues and operating costs, deducting contributory asset charges (working capital at 4.0%, property and equipment at 12.9%), and discounting the resulting excess earnings to present value using risk-adjusted discount rates. A tax amortization benefit is included in each fair value indication. Projections reflect each asset’s market size, projected penetration, and net pricing assumptions, with a long-term growth rate of 4.8% applied at terminal value, benchmarked to long-term U.S. nominal GDP expectations. Key valuation inputs included: a risk-free rate of 4.79% (20-year U.S. Treasury yield as of December 31, 2025); a market rate of return of 13.0% (10-year CAGR of S&P 500, 2016–2025); an unlevered beta of 0.98 (Damodaran pharmaceutical industry data); and an effective tax rate of 26.7% (combined U.S. federal rate of 21% and New York state rate of 7.3%).

0.51

40630815 20700000 82700000 62000000.0 21372960 The Company performs its annual impairment test of indefinite-lived IPR&D assets as of December 31 each year, and on an interim basis when triggering events are identified. The fair value of each IPR&D asset was estimated using MPEEM, as described above. The required return on asset applied to SCN-104, SCN-106, and SCN-107 was 49.9%, reflecting a base unlevered cost of capital of 12.9% plus a 37.0% development and commercialization risk premium to capture regulatory approval uncertainty, market adoption risk, and execution risk associated with pre-commercial pharmaceutical assets. Based on the annual impairment test, the carrying amounts of SCN-104, SCN-106, and SCN-107 exceeded their respective estimated fair values as of December 31, 2025. In accordance with ASC 350-30-35, each asset was written down to its estimated fair value.

P13Y

453846

907693

22238461

71100000 23100000 48000000.0 The following table summarizes the carrying amounts of intangible assets as of June 30, 2026 and December 31, 2025 (in thousands): SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; float: right; border-collapse: collapse; width: 89%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left">Asset</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20260630_zZN842l028P" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20251231_zpEu2RUReJl4" style="border-bottom: Black 1pt solid; text-align: center">Dec 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40A_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN102Member_zqKB7f4FoNu5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 60%">SCN-102 – finite-lived (net of amortization of $908 for the six months ended June 30, 2026 and nil for the six months ended June 30, 2025)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">22,238</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">23,146</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN104Member_zmXWe899jXE6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">SCN-104 – indefinite-lived IPR&D</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,339</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,339</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN106Member_zBlMq4DtIDm4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">SCN-106 – indefinite-lived IPR&D</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13,381</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13,381</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_pn3n3_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--SCN107Member_zDB5FPC6PFEe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">SCN-107 – indefinite-lived IPR&D</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,107</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">12,107</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iI_pn3n3_zTAgBZu9YETa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total intangible assets, net</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">70,065</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left">$</td><td style="font-weight: bold; text-align: right">70,973</td><td style="font-weight: bold; text-align: left"> </td></tr> </table><div style="clear: both"></div>

22238000

23146000

22339000

13381000

12107000

70065000

70973000

76400000

70973064

4973090

453846

907693

1815385

NOTE 9 – DEBT October 2025 Streeterville Note On October 14, 2025, the Company entered into a note purchase agreement with Streeterville Capital, LLC (“Streeterville”), providing for the issuance of a senior secured promissory note in the aggregate principal amount of $3,911,111.11 (the “2025 Streeterville Note”). The 2025 Streeterville Note carried an original issue discount of $<span id="xdx_90C_ecustom--OriginalDebtIssuanceDiscount_pp2d_c20251014__20251014__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zWeUaGp4CSAl">391,111.11 and an interest rate of <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20251014__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zj6KfEFrEHnk">9% per annum. After deducting the original issue discount and $20,000 in transaction costs, the Company received net proceeds of $<span id="xdx_90F_eus-gaap--ProceedsFromConvertibleDebt_c20251014__20251014__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zuRdiR3u0LX3">3,500,000, which were utilized to repay the outstanding balance of the Scienture convertible debt and for general corporate purposes. During the year ended December 31, 2025, the 2025 Streeterville Note was fully repaid. In connection with this repayment, the Company recognized interest expense of $13,981 representing accrued interest through the date of payoff. Additionally, the Company fully amortized the $<span id="xdx_903_eus-gaap--AmortizationOfDebtDiscountPremium_pp2d_c20250101__20251231__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zsD0MxvTLS0a" title="Original issue discount, amortization">391,111.11 original issue discount and the $<span id="xdx_908_ecustom--LendersTransactionCostsAmortization_iI_c20251231__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember_zF9YQaEq2DX4" title="Lender's transaction costs, amortization">20,000 in transaction costs, which were recognized as interest expense during the period. As of June 30, 2026, and December 31, 2025, the 2025 Streeterville Note had no outstanding balance, and there was no remaining unamortized debt discount or transaction costs associated with this obligation. April 2026 Streeterville Notes On April 27, 2026, the Company issued to Streeterville a secured promissory note in the original principal amount of $<span id="xdx_90B_eus-gaap--DebtInstrumentFaceAmount_iI_c20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zs9HUzi92vzl" title="Principal amount">8,420,000, including a $<span id="xdx_90F_ecustom--OriginalDebtIssuanceDiscount_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zMqpkefirHnb" title="Original issue discount">400,000 original issue discount (the “A-1 Note”), and a secured promissory note in the original principal amount of $<span id="xdx_901_eus-gaap--DebtInstrumentFaceAmount_iI_c20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_zT6whFZp5sv" title="Principal amount">3,000,000 (the “B Note”). The A-1 Note bears interest at <span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zEvudWTKB223" title="Interest rate">9% per annum, the B Note bears interest at <span id="xdx_905_eus-gaap--DebtInstrumentInterestRateDuringPeriod_pid_dp_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_zg4vcg35mrD8" title="Interest rate">5% per annum, and both notes mature on <span id="xdx_906_eus-gaap--DebtInstrumentMaturityDate_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zaNrmPGMEVjc" title="Maturity date"><span id="xdx_90D_eus-gaap--DebtInstrumentMaturityDate_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_za8AcBgM4JFd" title="Maturity date">October 27, 2027. The Lender funded $8,000,000 in cash, of which $<span id="xdx_90B_ecustom--PlacementAgentFee_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zWo2sZM03Ay5" title="Placement agent fee">410,000 was paid as a placement agent fee, and deposited $3,000,000 into a controlled deposit account held by SCNX Holdings, LLC, a newly formed wholly-owned subsidiary of the Company (“SCNX Sub”). <span id="xdx_90C_eus-gaap--DebtInstrumentRedemptionDescription_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember_zBrKHAxP6s6i" title="Debt Instrument redemption description">Beginning December 27, 2026, the Lender may redeem up to $175,000 of A-1 Note principal per calendar month, plus additional amounts based on trading volume in certain circumstances. Debt discount and issuance costs of $<span id="xdx_901_ecustom--DebtDiscountAndIssuanceCosts_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zHlzSNVcdeP7" title="Debt discount and issuance costs">830,000 were recognized on the A-1 Note at issuance, comprising the $<span id="xdx_906_ecustom--OriginalDebtIssuanceDiscount_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zxY1kHxC8Op6" title="Original issue discount">400,000 original issue discount, $<span id="xdx_904_eus-gaap--DebtInstrumentFeeAmount_iI_c20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zmsgOXrE6DEg" title="Transaction costs">20,000 of transaction expenses and the $<span id="xdx_900_ecustom--PlacementAgentFee_c20260427__20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zIhY4uJzlo98" title="Placement agent fee">410,000 placement agent fee, and are being amortized to interest expense on a straight-line basis over the 18-month term. No discount or issuance costs were recognized on the B Note. During each of the three and six months ended June 30, 2026, the Company amortized $<span id="xdx_90C_eus-gaap--AmortizationOfDebtDiscountPremium_c20260401__20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zjBo9WqWU26b" title="Amortization of debt discount"><span id="xdx_909_eus-gaap--AmortizationOfDebtDiscountPremium_c20260101__20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zewYF4DMku9l" title="Amortization of debt discount">96,935 of debt discount and recognized stated interest expense of $<span id="xdx_90F_eus-gaap--InterestExpenseDebt_c20260401__20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_z5YZmT7vKGsb" title="Interest expenses"><span id="xdx_90D_eus-gaap--InterestExpenseDebt_c20260101__20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneMember_zGMoEmTzT978" title="Interest expenses">132,875 on the A-1 Note and $<span id="xdx_908_eus-gaap--InterestExpenseDebt_c20260401__20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_zdVvbmOq0mZf" title="Interest expenses"><span id="xdx_90E_eus-gaap--InterestExpenseDebt_c20260101__20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_zafhVX9tPrXl" title="Interest expenses">26,301 on the B Note. As of June 30, 2026, unamortized debt discount was $<span id="xdx_90E_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_c20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneAndBNoteMember_zILj5o2eKPYb" title="Unamortized discount">733,066, note payable, net of debt discount, was $<span id="xdx_903_eus-gaap--NotesPayableCurrent_iI_c20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneAndBNoteMember_zglb0cRVMNsk" title="Notes payable, current">1,118,349 current and $<span id="xdx_903_eus-gaap--LongTermNotesPayable_iI_c20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneAndBNoteMember_zKULPB3hjJWb" title="Notes payable, non-current">9,568,586 non-current based on the Lender’s monthly redemption rights, and accrued interest payable was $<span id="xdx_90A_eus-gaap--InterestPayableCurrent_iI_c20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteAOneAndBNoteMember_zz0QtZcCX5jd" title="Accrued interest payable">159,176. The $<span id="xdx_905_eus-gaap--Deposits_iI_c20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_zcZWQqBWW2" title="Deposits">3,000,000 held in the SCNX Sub deposit account is restricted until maturity of the B Note and is presented as non-current restricted cash on the consolidated balance sheet. Restricted cash was $<span id="xdx_900_eus-gaap--RestrictedCashNoncurrent_iI_c20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_zLjoYazujEE1" title="Restricted cash">3,012,271 as of June 30, 2026, and the Company recognized $<span id="xdx_907_eus-gaap--InterestIncomeExpenseNet_c20260401__20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_zMQb5sY3VkRj" title="Interest income"><span id="xdx_90B_eus-gaap--InterestIncomeExpenseNet_c20260101__20260630__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember__us-gaap--DebtInstrumentAxis__custom--SecuredPromissoryNoteBMember_zWj6V6totsRf" title="Interest income">13,200 of interest income on the account during each of the three and six months ended June 30, 2026. The notes are secured by a first-priority security interest in substantially all assets of the Company and Scienture, LLC, together with guaranties, a pledge of the Company’s membership interests in SCNX Sub and control of the deposit account, and contain customary covenants, trigger events and events of default. Upon an event of default, the outstanding balance becomes immediately due and payable and default interest accrues at the lesser of <span id="xdx_906_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20260427__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementMember__us-gaap--AwardTypeAxis__custom--StreetvilleNoteMember_zWGCsBhtS9ua" title="Default interest rate">18% per annum or the maximum rate permitted by law.

3911111.11

391111.11

0.09

20000

3500000

13981

391111.11

20000

8420000

400000

3000000

0.09

0.05

2027-10-27

8000000

410000

3000000

Beginning December 27, 2026, the Lender may redeem up to $175,000 of A-1 Note principal per calendar month, plus additional amounts based on trading volume in certain circumstances.

830000 400000

20000

410000

96935

132875

26301

733066

1118349

9568586

159176

3000000

3012271

13200

0.18

NOTE 10 – STOCKHOLDERS’ EQUITY Designation of Series B Preferred Stock Effective June 26, 2023, the Company filed a Certificate of Designation, Preferences, Rights and Limitations of the Series B Preferred Stock (the “Series B Preferred Stock”) with the Secretary of the State of Delaware that designated 787,754 shares of the Company’s authorized and unissued preferred stock as convertible Series B Preferred Stock at a par value of $0.00001 per share. Holders of the Series B Preferred Stock are not entitled to receive dividends and do not have redemption or voting rights. Furthermore, the Series B Preferred Stock does not have a liquidation preference. Shares of Series B Preferred Stock are automatically convertible into shares of the Company’s common stock at a ratio of 100 shares of common stock for each share of Series B Preferred Stock upon stockholder approval of such conversion. As of June 30, 2026 and December 31, 2025, there were 15,759 issued and outstanding shares of Series B Preferred Stock. Designation of Series X Preferred Stock On July 25, 2024, the Company revoked the authorization to issue shares of the Company’s Series A Preferred Stock, par value $0.00001 per share (the “Series A Preferred Stock”) and concurrently authorized the issuance of up to 9,211,246 shares of the Series X Preferred Stock, a then new class of preferred stock. As consideration for the Scienture Merger, the shares of Scienture common stock issued and outstanding immediately prior to the “Effective Time” of the mergers were converted into the right to receive, in the aggregate, (i) <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240725__20240725__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_zP0BGIJNGau4" title="Shares issued">291,536 shares of the Company’s common stock and (ii) <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20240725__20240725__us-gaap--StatementClassOfStockAxis__custom--SeriesXPreferredStockMember__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__us-gaap--BusinessAcquisitionAxis__custom--ScientureIncMember_z5Yq17LlPAQh" title="Shares issued in merger">6,826,753 shares of the Company’s Series X Preferred Stock, each share of which was convertible into one share of common stock. In September 20, 2024, all previously issued shares of Series X Preferred Stock were converted into a total of <span id="xdx_903_eus-gaap--ConversionOfStockSharesIssued1_c20240920__20240920__us-gaap--StatementClassOfStockAxis__custom--SeriesXPreferredStockMember_zteRK7UvRzHe" title="Common stock issued upon conversion">6,826,753 shares of common stock. As such, there were no issued and outstanding shares of Series X Preferred Stock as of June 30, 2026, and December 31, 2025. Common Stock Other than the issuance of <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20260401__20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zhudVlw1p0Dj" title="Number of restricted shares issued for services">433,331 restricted shares of common stock for services described below, the Company did not issue any shares of common stock during the six months ended June 30, 2026. During the year ended December 31, 2025, the Company issued an aggregate of 7,103,614 shares of common stock for net proceeds of $9,008,199. Restricted Common Stock As of June 30, 2026 and December 31, 2025, the Company had <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_c20260630__us-gaap--PlanNameAxis__custom--OptionPlansMember_z9UDWMed0WE6" title="Restricted shares of common stock outstanding">1,634,229 and <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedNumber_iI_c20251231__us-gaap--PlanNameAxis__custom--OptionPlansMember_zzKR5bZvvJqg" title="Restricted shares of common stock outstanding">1,200,898 restricted shares of common stock outstanding, respectively. As of June 30, 2026 and December 31, 2025, <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_c20260630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zqGOeA8Fo8la" title="Vested shares"><span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_c20251231__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zayYMuw50JN6" title="Vested shares">185,898 shares were vested. During the three months ended June 30, 2026, the Company issued <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardGross_c20260401__20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zhA9ozOpZWMf" title="Number of restricted shares issued for services">433,331 restricted shares of common stock to certain executive officers of the Company and Scienture, LLC for services rendered, with an aggregate grant date fair value of $<span id="xdx_907_ecustom--FairValueOfRestrictedCommonStock_c20260401__20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zadBFBxksQvi" title="Fair value of restricted common stock">173,332. These shares vest in June 2029 (<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesShareBasedCompensationGross_c20260101__20260630__us-gaap--VestingAxis__custom--JuneTwoThousandTwentyNineMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z9255dGnibLa">333,332 shares) and June 2030 (<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesShareBasedCompensationGross_c20260101__20260630__us-gaap--VestingAxis__custom--JuneTwoThousandThirtyMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zOYflVN8HGQb">99,999 shares), and the related stock-based compensation expense recognized during the three and six months ended June 30, 2026 was nominal. The Company recorded stock-based compensation expense of $103,457 and $205,777 in the consolidated statements of operations for the three and six months ended June 30, 2026, respectively. Unrecognized stock compensation outstanding on these grants was $706,549 as of June 30, 2026. Equity Compensation Awards Each independent member of the Company’s board of directors is to receive an annual grant of restricted common stock of the Company equal to $<span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_c20260101__20260630__srt--TitleOfIndividualAxis__srt--BoardOfDirectorsChairmanMember_zQNPXLye8dlc" title="Annual grant value of restricted common stock">55,000 in value on April 1st of each year (or such date thereafter as the awards are approved by the board of directors), and valued on such same date, based on the closing sales price on such date (or the first business day thereafter), which restricted stock awards will vest at the rate of 1/4th of such awards over the following four calendar quarters, subject to such directors continued service to the Company. The board of directors and the Company’s stockholders approved an amendment to the Second Amended and Restated 2019 Equity Incentive Plan (the “Plan”), which increased the available shares under the Plan to <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_c20260630__us-gaap--PlanNameAxis__custom--SecondAmendedAndRestatedTwoThousandNineteenEquityIncentivePlanMember_zEWp9Q10UPh5" title="Number of share available for issuance">5,000,000 shares of the common stock.

787754

0.00001

100

15759

0.00001

9211246

291536

6826753

433331

7103614

9008199

1634229

1200898

185898

433331

173332

333332

99999

103457

205777

706549

55000

5000000

NOTE 11 – WARRANTS In connection with a note (see Note 9 – Debt), in August 2024 the Company issued 76,923 warrants to purchase common stock. The warrants have an exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20240831__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zzg8bHjtnShd" title="Warrants exercise price per share">9.36 per share, are immediately exercisable and have a term of 5 years. In August 2024, the holder exercised <span id="xdx_909_ecustom--StockIssuedDuringPeriodSharesWarrantsExercisedForCash_c20240801__20240831__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zOnlbdAt54Cj" title="Warrants exercised, shares">28,571 warrants for shares of common stock on a cashless basis. Pursuant to the adjustment provisions in Section 3(b) of the warrant agreement, the exercise price automatically adjusted following the Company’s issuance of shares at a dilutive price of $1.20 on or about August 14, 2025, resulting in an automatic increase in the aggregate warrant share amount. Accordingly, in August 2025, the holder exercised aggregate of <span id="xdx_904_ecustom--StockIssuedDuringPeriodSharesWarrantsExercisedForShares_c20250801__20250831__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z1jch6JkaF6j" title="Warrants exercised for shares">279,402 warrants for shares of common stock on a cashless basis, including <span id="xdx_905_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20250831__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zRedsW8Hlf4g" title="Number of warrants issued">12,706 warrants issued on October 4, 2023. Warrant Liability As of June 30, 2026, the Company remeasured the fair value of warrants outstanding at $0. In connection with the remeasurement of warrants, no gain or loss was recognized during the three months ended June 30, 2026 and a gain of $<span id="xdx_904_eus-gaap--FairValueAdjustmentOfWarrants_c20260101__20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zJaHWYjpl7Ge" title="Change in fair value of warrant liability, gain (loss)">10,910 was recognized during the six months ended June 30, 2026, as the change in fair value of warrant liability. <p id="xdx_897_ecustom--ScheduleOfStockholdersEquityWarrantLiabilityValuationAssumptionsTableTextBlock_zFd7AiZ6qfW2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company classifies its outstanding warrant liability within Level 3 of the fair value hierarchy, as the fair value is determined using the Black-Scholes option-pricing model with unobservable inputs. The following assumptions were used to estimate the fair value of the warrant liability as of June 30, 2026: SCHEDULE OF FAIR VALUE OF WARRANT LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20260101__20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zK9YMHVZmeV7" style="font-weight: bold; text-align: center">Six Months Ended</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--SharePrice_iE_pid_z9Q1W0if9DGj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%">Expected stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">0.35</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iE_pid_z96mm0zvBpXa" style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22.50</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Remaining contractual term (years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20260101__20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zxk1rHi6fULj" title="Remaining contractual term (years)">1.27</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_zJAlulZvICa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74.71</td><td style="text-align: left">%</td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_zeSNpyd9dMK9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.70</td><td style="text-align: left">%</td></tr> <tr id="xdx_40F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_z5ETWWilOG4g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td></tr> </table> <p id="xdx_898_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock_zbOqUhDPurGk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Changes in the fair value of the warrant liability, which is measured on a recurring basis using Level 3 inputs, for the six months ended June 30, 2026, were as follows: SCHEDULE OF CHANGE IN WARRANT LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B1_us-gaap--StatementEquityComponentsAxis_us-gaap--WarrantMember_z98RTa9kb6af" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Warrant Liability</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_43C_c20260101__20260630_eus-gaap--WarrantsAndRightsOutstanding_iS_zkgrJigeRVL1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%">Outstanding as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">10,914</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FairValueAdjustmentOfWarrants_iN_di_zEtkOs9JUD3c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,910</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_ecustom--FairValueAdjustmentOfWarrantsRoundingOff_iN_di_z09YJKwQwTBc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Rounding off</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_43E_c20260101__20260630_eus-gaap--WarrantsAndRightsOutstanding_iE_d0_zLHax4przvG5" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Outstanding as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company’s outstanding and exercisable warrants, as of June 30, 2026, are presented below: SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number Outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Contractual Life In Years</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Intrinsic Value</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 36%">Warrants outstanding as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20260101__20260630_zc9CkfE7aXNh" style="width: 12%; text-align: right" title="Warrants outstanding, balance">177,536</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_904_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iS_c20260101__20260630_zRtypFPqo7Rb" title="Weighted average exercise price outstanding, balance">22.50</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20250101__20251231_zConi9DYQfM9" title="Contractual life in years, warrants outstanding">1.76</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentOutstandingIntrinsicValue_iS_c20260101__20260630_zfPEhpr2c5V3" style="width: 12%; text-align: right" title="Intrinsic value warrants outstanding, balance">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrants granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20260101__20260630_zF0CjvtMWKMd" style="text-align: right" title="Warrants granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantsInPeriodWeightedAverageExercisePrice_c20260101__20260630_z1otguRQJnGe" title="Weighted average exercise price, warrants granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warrants forfeited, expired, cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirations_c20260101__20260630_zaaCD7DNINYj" style="text-align: right" title="Warrants forfeited, expired, cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitedInPeriodWeightedAverageExercisePrice_c20260101__20260630_zElnsUeR9B4g" title="Weighted average exercise price, warrant forfeited, expired, cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrants exercised</td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20260101__20260630_zuNvmme05dil" style="border-bottom: Black 1pt solid; text-align: right" title="Warrants exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisesInPeriodWeightedAverageExercisePrice_c20260101__20260630_zz1fB6evT4Md" title="Weighted average exercise price, warrant exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> -</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warrants outstanding as of June 30, 2026</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20260101__20260630_zLQdbnwXHR53" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants outstanding, balance">177,536</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iE_c20260101__20260630_zttG2NJxapS8" title="Weighted average exercise price outstanding, balance">22.50</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20260101__20260630_zRvJbQpp2gH4" title="Contractual life in years, warrants outstanding">1.27</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentOutstandingIntrinsicValue_iE_c20260101__20260630_zxP8VAJUg3Fc" style="border-bottom: Black 2.5pt double; text-align: right" title="Intrinsic value warrants outstanding, balance">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrants exercisable as of June 30, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisable_iE_c20260101__20260630_zYY8rhSytvF4" style="text-align: right" title="Warrants exercisable, balance">177,536</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityExercisableWeightedAverageExercisePrice_iE_c20260101__20260630_zyebfxVvBG23" title="Weighted average exercise price exercisable, balance">22.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionEquityExercisableWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630_zjJ2DKYQbEd3" title="Contractual life in years, warrants exercisabl">1.27</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentExercisableIntrinsicValue_iE_c20260101__20260630_zO0VwHk4WhO3" style="text-align: right" title="Intrinsic value warrants exercisable, balance">-</td><td style="text-align: left"> </td></tr> </table>

76923

9.36

P5Y

28571

1.20

279402

12706

10910

<p id="xdx_897_ecustom--ScheduleOfStockholdersEquityWarrantLiabilityValuationAssumptionsTableTextBlock_zFd7AiZ6qfW2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company classifies its outstanding warrant liability within Level 3 of the fair value hierarchy, as the fair value is determined using the Black-Scholes option-pricing model with unobservable inputs. The following assumptions were used to estimate the fair value of the warrant liability as of June 30, 2026: SCHEDULE OF FAIR VALUE OF WARRANT LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_497_20260101__20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zK9YMHVZmeV7" style="font-weight: bold; text-align: center">Six Months Ended</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_400_eus-gaap--SharePrice_iE_pid_z9Q1W0if9DGj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%">Expected stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">0.35</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iE_pid_z96mm0zvBpXa" style="vertical-align: bottom; background-color: White"> <td>Exercise price</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22.50</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Remaining contractual term (years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20260101__20260630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zxk1rHi6fULj" title="Remaining contractual term (years)">1.27</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_zJAlulZvICa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">74.71</td><td style="text-align: left">%</td></tr> <tr id="xdx_401_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_zeSNpyd9dMK9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk-free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.70</td><td style="text-align: left">%</td></tr> <tr id="xdx_40F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_z5ETWWilOG4g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.00</td><td style="text-align: left">%</td></tr> </table>

0.35

22.50

P1Y3M7D

0.7471

0.0470

0.0000

<p id="xdx_898_eus-gaap--FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock_zbOqUhDPurGk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Changes in the fair value of the warrant liability, which is measured on a recurring basis using Level 3 inputs, for the six months ended June 30, 2026, were as follows: SCHEDULE OF CHANGE IN WARRANT LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_4B1_us-gaap--StatementEquityComponentsAxis_us-gaap--WarrantMember_z98RTa9kb6af" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Warrant Liability</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_43C_c20260101__20260630_eus-gaap--WarrantsAndRightsOutstanding_iS_zkgrJigeRVL1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 78%">Outstanding as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">10,914</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FairValueAdjustmentOfWarrants_iN_di_zEtkOs9JUD3c" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Change in fair value</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(10,910</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_ecustom--FairValueAdjustmentOfWarrantsRoundingOff_iN_di_z09YJKwQwTBc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Rounding off</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_43E_c20260101__20260630_eus-gaap--WarrantsAndRightsOutstanding_iE_d0_zLHax4przvG5" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Outstanding as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

10914

10910

-0

The Company’s outstanding and exercisable warrants, as of June 30, 2026, are presented below: SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number Outstanding</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; white-space: nowrap; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Contractual Life In Years</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Intrinsic Value</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 36%">Warrants outstanding as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20260101__20260630_zc9CkfE7aXNh" style="width: 12%; text-align: right" title="Warrants outstanding, balance">177,536</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right"><span id="xdx_904_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iS_c20260101__20260630_zRtypFPqo7Rb" title="Weighted average exercise price outstanding, balance">22.50</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_908_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20250101__20251231_zConi9DYQfM9" title="Contractual life in years, warrants outstanding">1.76</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentOutstandingIntrinsicValue_iS_c20260101__20260630_zfPEhpr2c5V3" style="width: 12%; text-align: right" title="Intrinsic value warrants outstanding, balance">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrants granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20260101__20260630_zF0CjvtMWKMd" style="text-align: right" title="Warrants granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantsInPeriodWeightedAverageExercisePrice_c20260101__20260630_z1otguRQJnGe" title="Weighted average exercise price, warrants granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warrants forfeited, expired, cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirations_c20260101__20260630_zaaCD7DNINYj" style="text-align: right" title="Warrants forfeited, expired, cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeitedInPeriodWeightedAverageExercisePrice_c20260101__20260630_zElnsUeR9B4g" title="Weighted average exercise price, warrant forfeited, expired, cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrants exercised</td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20260101__20260630_zuNvmme05dil" style="border-bottom: Black 1pt solid; text-align: right" title="Warrants exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_909_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisesInPeriodWeightedAverageExercisePrice_c20260101__20260630_zz1fB6evT4Md" title="Weighted average exercise price, warrant exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> -</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Warrants outstanding as of June 30, 2026</td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20260101__20260630_zLQdbnwXHR53" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants outstanding, balance">177,536</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageExercisePrice_iE_c20260101__20260630_zttG2NJxapS8" title="Weighted average exercise price outstanding, balance">22.50</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageRemainingContractualTerm_dtY_c20260101__20260630_zRvJbQpp2gH4" title="Contractual life in years, warrants outstanding">1.27</td><td style="text-align: left"> </td><td> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentOutstandingIntrinsicValue_iE_c20260101__20260630_zxP8VAJUg3Fc" style="border-bottom: Black 2.5pt double; text-align: right" title="Intrinsic value warrants outstanding, balance">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrants exercisable as of June 30, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisable_iE_c20260101__20260630_zYY8rhSytvF4" style="text-align: right" title="Warrants exercisable, balance">177,536</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityExercisableWeightedAverageExercisePrice_iE_c20260101__20260630_zyebfxVvBG23" title="Weighted average exercise price exercisable, balance">22.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardNonOptionEquityExercisableWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630_zjJ2DKYQbEd3" title="Contractual life in years, warrants exercisabl">1.27</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsEquityInstrumentExercisableIntrinsicValue_iE_c20260101__20260630_zO0VwHk4WhO3" style="text-align: right" title="Intrinsic value warrants exercisable, balance">-</td><td style="text-align: left"> </td></tr> </table>

177536

22.50 P1Y9M3D

177536

22.50 P1Y3M7D 177536 22.50 P1Y3M7D

NOTE 12 – OPTIONS The Plan allows for and the Company maintains stock option award agreements under which certain employees may be awarded option grants based on a combination of performance and tenure. The number of shares available to grant to employees under the Plan is 5,000,000. The Board and stockholders approved an amendment to the Plan increasing the available shares under the Plan to <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pid_c20240724__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zDgLpZO6mE92" title="Number of shares authorized">5,000,000 shares of the Common Stock as such common stock existed on July 24, 2024. Total compensation cost related to stock options granted was $0 for both the three and six months ended June 30, 2026, and $162,438 and $162,874 for the three and six months ended June 30, 2025, respectively. On September 17, 2025, the Company cancelled 2,000,000 stock options and granted the related option holders <span id="xdx_902_eus-gaap--StockGrantedDuringPeriodValueSharebasedCompensation_pid_c20250917__20250917__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__srt--TitleOfIndividualAxis__custom--EmployeesAndConsultantMember_zgPkweuMofo3" title="Shares of common stock granted">2,000,000 shares of common stock. This modification resulted in the Company recognizing the remaining expense under the original option and an additional incremental consideration as a result of the modification. Total stock-based compensation cost as a result of this transaction was $1,512,995. <p id="xdx_891_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zx0AQyBLJdIk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table represents stock option activity for the six-month period ended June 30, 2026: SCHEDULE OF STOCK OPTION ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number Outstanding</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Contractual Life in Years</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Intrinsic Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 36%">Options outstanding as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zMK6GFGSeyf2" style="width: 12%; text-align: right" title="Number of options outstanding, balance">19,899</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zhZ6C1N5ehJd" style="width: 12%; text-align: right" title="Weighted-average exercise price outstanding, balance">29.58</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zg7dIEF9lTxh" title="Weighted - average contractual life in years, options outstanding, balance">2.23</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zBuXkSOFFRbe" style="width: 12%; text-align: right" title="Intrinsic value option outstanding, balance"> -</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_ziCn5Fq9ntri" style="text-align: right" title="Number of options, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zHj3sSqLLmPd" style="text-align: right" title="Weighted-average exercise price, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsCancelledInPeriod_iN_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zjC45nIjStd1" style="text-align: right" title="Number of options, cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsCancelledInPeriodWeightedAverageExercisePrice_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zaQSfVi0aoFk" style="text-align: right" title="Weighted-average exercise price, cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Forfeited/expired</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z3xn3eJblWr8" style="text-align: right" title="Number of options, Forfeited/expired">(894</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zkBuD3HqCSA3" style="text-align: right" title="Weighted-average exercise price, Forfeited/expired">82.06</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Options exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zckNOunM0Wej" style="border-bottom: Black 1pt solid; text-align: right" title="Number of options, exercised">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zxuGvJxdjuv7" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted-average exercise price, exercised">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Options outstanding as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zyjJZUxCo3Y8" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options outstanding, balance">19,005</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zDDbwO3CWTNc" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-average exercise price outstanding, balance">27.11</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z3N7D7sVCn23" title="Weighted-average contractual life in years, options outstanding">1.82</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zAEMibk7lHW" style="border-bottom: Black 2.5pt double; text-align: right" title="Intrinsic value option outstanding, balance">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options exercisable as of June 30, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zbu1ymdO6bG5" style="text-align: right" title="Number of options exercisable, balance">19,005</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zkXLhjP0TRq1" style="text-align: right" title="Weighted-average exercise price exercisable, balance">27.11</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_ziMynSUlpzM6" title="Weighted-average contractual life in years, options exercisable">1.82</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zrQzbKvSrS3g" style="text-align: right" title="Intrinsic value option exercisable, balance">-</td><td style="text-align: left"> </td></tr> </table>

5000000

162438

162874

2000000

1512995

<p id="xdx_891_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zx0AQyBLJdIk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table represents stock option activity for the six-month period ended June 30, 2026: SCHEDULE OF STOCK OPTION ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number Outstanding</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted-Average Contractual Life in Years</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Intrinsic Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; width: 36%">Options outstanding as of December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zMK6GFGSeyf2" style="width: 12%; text-align: right" title="Number of options outstanding, balance">19,899</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zhZ6C1N5ehJd" style="width: 12%; text-align: right" title="Weighted-average exercise price outstanding, balance">29.58</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right"><span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20251231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zg7dIEF9lTxh" title="Weighted - average contractual life in years, options outstanding, balance">2.23</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zBuXkSOFFRbe" style="width: 12%; text-align: right" title="Intrinsic value option outstanding, balance"> -</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Options granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_ziCn5Fq9ntri" style="text-align: right" title="Number of options, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zHj3sSqLLmPd" style="text-align: right" title="Weighted-average exercise price, granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsCancelledInPeriod_iN_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zjC45nIjStd1" style="text-align: right" title="Number of options, cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsCancelledInPeriodWeightedAverageExercisePrice_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zaQSfVi0aoFk" style="text-align: right" title="Weighted-average exercise price, cancelled">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Forfeited/expired</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z3xn3eJblWr8" style="text-align: right" title="Number of options, Forfeited/expired">(894</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zkBuD3HqCSA3" style="text-align: right" title="Weighted-average exercise price, Forfeited/expired">82.06</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Options exercised</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_di_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zckNOunM0Wej" style="border-bottom: Black 1pt solid; text-align: right" title="Number of options, exercised">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zxuGvJxdjuv7" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted-average exercise price, exercised">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Options outstanding as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zyjJZUxCo3Y8" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options outstanding, balance">19,005</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zDDbwO3CWTNc" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-average exercise price outstanding, balance">27.11</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_905_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z3N7D7sVCn23" title="Weighted-average contractual life in years, options outstanding">1.82</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zAEMibk7lHW" style="border-bottom: Black 2.5pt double; text-align: right" title="Intrinsic value option outstanding, balance">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Options exercisable as of June 30, 2026</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zbu1ymdO6bG5" style="text-align: right" title="Number of options exercisable, balance">19,005</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zkXLhjP0TRq1" style="text-align: right" title="Weighted-average exercise price exercisable, balance">27.11</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_ziMynSUlpzM6" title="Weighted-average contractual life in years, options exercisable">1.82</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zrQzbKvSrS3g" style="text-align: right" title="Intrinsic value option exercisable, balance">-</td><td style="text-align: left"> </td></tr> </table>

19899

29.58

P2Y2M23D

894

82.06

19005

27.11

P1Y9M25D

19005

27.11

P1Y9M25D

NOTE 13 – COMMITMENTS AND CONTINGENCIES Eat Well In July 2023, the Company entered into, and closed on the transactions contemplated by, an Amended and Restated Agreement and Plan of Merger with Superlatus, whereby the Company acquired Superlatus (the “Superlatus Acquisition”). In connection with the Superlatus Acquisition, former shareholders of Superlatus received <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20230701__20230731__us-gaap--TypeOfArrangementAxis__custom--AmendedAndRestatedAgreementAndPlanOfMergerMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_zi3rcOO4AIV2" title="Shares issued in acquisitions">306,855 shares of the Company’s Series B Preferred Stock, par value $<span id="xdx_906_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_c20230731__us-gaap--TypeOfArrangementAxis__custom--AmendedAndRestatedAgreementAndPlanOfMergerMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_zmppgaoq6ATg" title="Preferred stock, par value">0.00001 per share (the “Series B Preferred Stock”). The Series B Preferred Stock are convertible into shares of the <span id="xdx_909_eus-gaap--CommonStockConversionBasis_c20230701__20230731__us-gaap--TypeOfArrangementAxis__custom--AmendedAndRestatedAgreementAndPlanOfMergerMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_zcsZxDHeUMc2" title="Common stock conversion ratio">Company’s common stock at a conversion ratio of 100-1. In January 2024, shareholders holding shares of Series B Preferred Stock surrendered shares of the Series B Preferred Stock back to the Company as a result of Superlatus failing to meet certain post-closing conditions associated with the Superlatus Acquisition, such that only<span id="xdx_90B_eus-gaap--PreferredStockSharesOutstanding_iI_pid_c20240131__us-gaap--TypeOfArrangementAxis__custom--AmendedAndRestatedAgreementAndPlanOfMergerMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember_zSp4zoSimHJ9" title="Preferred stock, shares outstanding"> 15,759 shares of Series B Preferred Stock remained outstanding. On March 5, 2024, the Company sold all of the issued and outstanding stock of Superlatus Inc. to Superlatus Foods Inc. pursuant to the Superlatus SPA. As a result of the transaction, Superlatus Inc. ceased to be a subsidiary of the Company, and the rights and assets of Superlatus together with various liabilities and obligations that were specific to Superlatus Inc. became rights and obligations of the Buyer. The shares of Series B Preferred Stock issued in connection with the Superlatus Acquisition remain outstanding. In January 2025, Eat Well Investment Group, Inc., a Canadian company (“Eat Well”) holding <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesAcquisitions_c20250101__20250131__us-gaap--TypeOfArrangementAxis__custom--AmendedAndRestatedAgreementAndPlanOfMergerMember__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesBPreferredStockMember__dei--LegalEntityAxis__custom--EatWellInvestmentGroupIncMember_zt3jT29pngYk" title="Stock issued, acquisition">11,643.84 shares of the Series B Preferred Stock, filed a complaint against the Company in the United States District Court for the Middle District of Florida alleging, among other things, that the Company is responsible for paying certain consideration to Eat Well in connection with Superlatus’ acquisition of Eat Well in June 2023 prior to the Company’s acquisition of Superlatus. Ultimately, Eat Well is seeking $8.5 million to be delivered in the form Company common stock, $<span id="xdx_907_ecustom--UnpaidPrincipalAndAccruedInterest_pn4n6_c20250101__20250131__us-gaap--BusinessAcquisitionAxis__custom--EatWellInvestmentGroupIncMember__us-gaap--AwardTypeAxis__custom--LegacyNoteMember_zlUU4ia6wdse" title="Unpaid principal and accrued interest">1.15 million in unpaid principal and accrued interest under a legacy note made by Superlatus in favor of Eat Well, $<span id="xdx_903_eus-gaap--BusinessCombinationConsiderationTransferred1_c20250101__20250131__us-gaap--BusinessAcquisitionAxis__custom--EatWellInvestmentGroupIncMember__us-gaap--AwardTypeAxis__custom--LegacyNoteMember_znIaowzeIrF1" title="Cash consideration">350,000 in cash consideration owed by Superlatus to Eat Well, $<span id="xdx_90D_ecustom--UnpaidPrincipalAndAccruedInterest_c20250101__20250131__us-gaap--BusinessAcquisitionAxis__custom--EatWellInvestmentGroupIncMember__us-gaap--AwardTypeAxis__custom--TenPromissoryNoteMember_zMp5rwkDk5X8" title="Unpaid principal and accrued interest">755,000 in unpaid principal and accrued interest on ten promissory notes made by Sapientia, Inc., a subsidiary of Superlatus, in favor of Eat Well, and certain other damages. There can be no assurance that an amicable resolution will be obtained. The Company intends to vigorously defend itself in the litigation. Kesin Pharma Corporation Scienture entered into an exclusive license and commercial agreement (the “Kesin Agreement”) with Kesin Pharma Corporation (“Kesin”) whereby Scienture granted the exclusive license rights to commercialize SCN-102 in 2022 and SCN-104 in 2023 to Kesin for use in the United States of America. In March 2024, the parties terminated the Kesin Agreement, and the parties agreed that Scienture would pay Kesin a total gross amount of $<span id="xdx_900_eus-gaap--LossOnContractTerminationForDefault_c20240301__20240331__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zcMY4iAOt9P1" title="Total gross amount">1,285,000 upon commercialization of product via a royalty arrangement. The royalty agreement requires that if <span id="xdx_900_eus-gaap--ContractTerminationClaimsDescription_c20240301__20240331__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zcrTzNLUISl7" title="Contract termination claims description">the full $1,285,000 has not been repaid within two years of the earlier of (i) commercial launch or (ii) 120 days from FDA approval, then interest will accrue prospectively at a rate of 8% annually on the unpaid balance. Accordingly, Scienture recorded a $1,285,000 development agreement liability at inception. During the year ended December 31, 2025, the Company made aggregate payments of $<span id="xdx_907_eus-gaap--RepaymentsOfRelatedPartyDebt_c20250101__20251231__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zJY3jbbpaVab" title="Repayments of related party debt">489,848, consisting of $<span id="xdx_90B_ecustom--PrincipalPortionOfDebtRepaid_c20250101__20251231__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zjbBcpKBTgOe" title="Principal portion of debt repaid">400,000 of principal and $89,848 of accrued interest. During the six months ended June 30, 2026, the Company made aggregate payments of $<span id="xdx_906_eus-gaap--RepaymentsOfRelatedPartyDebt_c20260101__20260630__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_z7TyzNmtw0l4" title="Repayments of related party debt">431,209, consisting of $<span id="xdx_90E_eus-gaap--DebtInstrumentRepaidPrincipal_c20260101__20260630__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zweAAMNQTvs7" title="Principal portion of debt repaid">400,000 of principal and $31,209 of accrued interest. As of June 30, 2026, the remaining outstanding balance of $<span id="xdx_90E_ecustom--DevelopmentAgreementLiability_iI_c20260630__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_z5LhUuXzKmuj" title="Outstanding balance of development agreement liability">485,000 is presented as a current liability on the consolidated balance sheet under Development agreement liability – current portion. SCHEDULE OF DEVELOPMENT AGREEMENT LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Development Agreement Liability</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260630__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zZbpvreBatvh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20251231__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_z7zZ8nTv7fN6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_ecustom--DevelopmentAgreementLiabilityCurrent_z9T8jzDvi77b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Current portion</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">485,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">600,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--DevelopmentAgreementLiabilityLongtermPortion_zctiYT7pkxMb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Long-term portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">285,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--DevelopmentAgreementLiability_iI_zcTzTzDh7jz6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total development agreement liability</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">485,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">885,000</td><td style="text-align: left"> </td></tr> </table> In August 2024, Kesin demanded immediate payment of the full amount under the Kesin Termination Agreement, alleging the full amount is payable in connection with the consummation Scienture’s business combination with the Company. Scienture disputed that the amount is payable, and the parties entered into discussions to resolve the issue. On March 11, 2025, Kesin filed a complaint against Scienture in the United States District Court for the Eastern District of New York seeking payment of the disputed $<span id="xdx_903_eus-gaap--LossContingencyDamagesSoughtValue_pn3n6_c20250311__20250311__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zPRKISf1xWah" title="Disputed value">1.285 million. The case was voluntarily dismissed on October 1, 2025. The Company and Kesin entered into a Settlement Agreement and Release on October 27, 2025, whereby Kesin agreed to unconditionally release and discharge the Company from all actions related to the complaint in exchange for the Company paying $<span id="xdx_903_eus-gaap--LossContingencyDamagesSoughtValue_pn3n6_c20250311__20250311__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zdk9MWkXtlIk" title="Disputed value">1.285 million plus <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_c20250313__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zcsDlLrp0DQk" title="Interest rate">8% interest from March 13, 2025, and legal fees and costs related to the complaint according to a payment schedule through December 2026.

306855

0.00001

Company’s common stock at a conversion ratio of 100-1

15759

11643.84

8500000

1150000

350000

755000

1285000

the full $1,285,000 has not been repaid within two years of the earlier of (i) commercial launch or (ii) 120 days from FDA approval, then interest will accrue prospectively at a rate of 8% annually on the unpaid balance. Accordingly, Scienture recorded a $1,285,000 development agreement liability at inception.

489848

400000

89848

431209

400000

31209

485000

SCHEDULE OF DEVELOPMENT AGREEMENT LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Development Agreement Liability</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260630__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_zZbpvreBatvh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20251231__us-gaap--TypeOfArrangementAxis__custom--ExclusiveLicenseAndCommercialAgreementsMember_z7zZ8nTv7fN6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_ecustom--DevelopmentAgreementLiabilityCurrent_z9T8jzDvi77b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Current portion</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">485,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">600,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_ecustom--DevelopmentAgreementLiabilityLongtermPortion_zctiYT7pkxMb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Long-term portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">285,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_ecustom--DevelopmentAgreementLiability_iI_zcTzTzDh7jz6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total development agreement liability</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">485,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">885,000</td><td style="text-align: left"> </td></tr> </table>

485000 600000 285000 485000 885000

1285000

0.08

NOTE 14 – LEASES The Company entered into a lease agreement for the period of October 2018 to November 2023. At inception, management had included the renewal period from November 2023 to November 2028 within the initial recognition of the related right of use assets and lease liabilities, as it was reasonably expected, at the time, that the renewal option would be exercised. The Company determined that the new lease required measurement and recognition of the lease liability and right-of-use assets of $313,301. The lease is classified as an operating lease. No incentives were included in the lease. On April 30, 2025, the Company completed the sale of its subsidiaries, IPS, Softell and Bonum Health, Inc., to Tollo. In connection with the transaction, the Company derecognized subsidiary’s operating lease right-of-use assets of $<span id="xdx_902_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20250430__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zrtGnOqjAE13" title="Operating lease right-of-use assets">142,138 and operating lease liability of $<span id="xdx_90D_eus-gaap--OperatingLeaseLiability_iI_c20250430__dei--LegalEntityAxis__custom--IPSSoftellAndBonumMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zRhDr5yLToM3" title="Operating lease liability">158,687 (see Note 1). As such, the Company recognized a gain of $<span id="xdx_905_eus-gaap--GainLossOnDispositionOfAssets1_c20250430__20250430__dei--LegalEntityAxis__custom--IPSLeaseMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--TolloMember_zoltkrbZb0de" title="Gain on disposition of lease">16,548 on disposition of related IPS lease. On July 25, 2024, the Company entered into and closed the Scienture Merger. Pursuant to the Scienture Merger Agreement, the Company acquired right of use asset value of $<span id="xdx_90A_eus-gaap--OperatingLeaseRightOfUseAsset_iI_c20240725__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__dei--LegalEntityAxis__custom--ScientureIncMember_zS7eD7YNLBgl" title="Operating lease right-of-use assets">61,578 and right of use liability of $<span id="xdx_903_eus-gaap--RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability_c20240725__20240725__us-gaap--TypeOfArrangementAxis__custom--MergerAgreementMember__dei--LegalEntityAxis__custom--ScientureIncMember_z4WxgUW1TNui" title="Acquired right of use liability">61,886 on the acquisition date together with all the assets and liabilities of Scienture. The table below reconciles the fixed component of the undiscounted cash flows for and the total remaining years to the lease liabilities recorded in the consolidated balance sheet as of June 30, 2026. Supplemental balance sheet information related to leases are as follows: SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Weighted-average remaining lease term (in years)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.08</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.58</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted-average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15.50</td><td style="text-align: left">%</td></tr> </table> <p id="xdx_893_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zGY43DIzswv5" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0pt; margin-bottom: 0pt; text-align: center">SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR OPERATING LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold">Future lease obligations</td><td> </td> <td colspan="2" id="xdx_49A_20260630_zaQevMZOQrN"> </td><td> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPzwiu_zjemxDTk5DO1" style="vertical-align: bottom; background-color: White"> <td style="width: 80%; text-align: left; padding-bottom: 1pt">2026</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">2,546</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzwiu_zEur6AL0JwW1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total minimum lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,546</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zWmH6RpK398g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: effect of discounting</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiability_iI_z2s3RmWEeZh6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Present value of future minimum lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,546</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zYt2fmPUjBZf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: current obligation under lease</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,546</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zOlkdTQpNpD7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term lease obligations</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> For the three months ended June 30, 2026, and 2025, total operating lease expense was $6,967 and $22,795, respectively, which is included in general and administrative expenses in the unaudited condensed consolidated statements of operations. For the six months ended June 30, 2026, and 2025, total operating lease expense was $13,739 and $59,197, respectively, which is included in general and administrative expenses in the unaudited condensed consolidated statements of operations.

313301

142138

158687

16548

61578

61886

Supplemental balance sheet information related to leases are as follows: SCHEDULE OF BALANCE SHEET INFORMATION RELATED TO LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Weighted-average remaining lease term (in years)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.08</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">0.58</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted-average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15.50</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15.50</td><td style="text-align: left">%</td></tr> </table>

P0Y29D

P0Y6M29D

0.1550

<p id="xdx_893_eus-gaap--LesseeOperatingLeaseLiabilityMaturityTableTextBlock_zGY43DIzswv5" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0pt; margin-bottom: 0pt; text-align: center">SCHEDULE OF FUTURE MINIMUM PAYMENTS FOR OPERATING LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; font-weight: bold">Future lease obligations</td><td> </td> <td colspan="2" id="xdx_49A_20260630_zaQevMZOQrN"> </td><td> </td></tr> <tr id="xdx_40A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPzwiu_zjemxDTk5DO1" style="vertical-align: bottom; background-color: White"> <td style="width: 80%; text-align: left; padding-bottom: 1pt">2026</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">2,546</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzwiu_zEur6AL0JwW1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total minimum lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,546</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zWmH6RpK398g" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: effect of discounting</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingLeaseLiability_iI_z2s3RmWEeZh6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Present value of future minimum lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,546</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OperatingLeaseLiabilityCurrent_iI_zYt2fmPUjBZf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: current obligation under lease</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,546</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zOlkdTQpNpD7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term lease obligations</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2546

6967

22795

13739

59197

NOTE 15 – SEGMENT REPORTING Factors used to identify the Company’s reportable segments include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker in making decisions about how to allocate resources and assess performance. The Company’s operating segments have been broken out based on similar economic and other qualitative criteria. The Company operates all reporting segments in one geographical area (the United States). The Company’s chief operating decision-makers are its co-Chief Executive Officers (together, the “CODM”), who make resource allocation decisions and assess performance based on financial information presented on an aggregate basis. There are no segment managers who are held accountable by the CODM for any planning, strategy and key decision-making regarding operations. Accordingly, as of June 30, 2026, the Company has a single reportable segment and operating segment structure. The Company operates entirely within the United States. The key measures of segment profit or loss reviewed by the CODM are total revenues, gross profit, total operating expenses (including research and development expenses), and net loss from continuing operations. The CODM uses these measures to allocate resources, evaluate operational performance, and make strategic decisions regarding pipeline development and commercialization activities. The CODM does not evaluate performance based on asset information at the segment level. Significant segment expenses that are regularly provided to the CODM and included in the reported measure of segment profit or loss include: research and development expenses (SCN-102: $504K; SCN-104: $316K; SCN-106: $346K for the three months ended June 30, 2026, and SCN-102: $545K; SCN-104: $427K; SCN-106: $989K for the six months ended June 30, 2026); wage and salary expense of $411,411 and $831,419; professional fees of $963,752 and $1,896,304; and accounting and legal expense of $117,815 and $443,993, in each case for the three and six months ended June 30, 2026, respectively. Other segment items not separately disclosed include technology expense of $7,139 and $22,902, general and administrative expense (including stock-based compensation) of $368,790 and $1,443,654, and depreciation and amortization of $461,571 and $929,585, in each case for the three and six months ended June 30, 2026, respectively. <p id="xdx_89E_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_hus-gaap--StatementBusinessSegmentsAxis__custom--SingleReportableSegmentMember_zhGTheRf7gBk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table presents key financial information for the Company’s single reportable segment for the three and six months ended June 30, 2026 and 2025: SCHEDULE OF SEGMENTAL FINANCIAL INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20260401__20260630_zfpetEEiTdLe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49F_20250401__20250630_zRnVYcUgB1Jc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20260101__20260630_zbUd49wjdvik" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20250101__20250630_zLRaMI5ftSXc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Three Months Ended</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Six Months Ended</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zyrosdLBpEJ4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">343,639</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">399,964</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">10,258</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CostOfRevenue_zJ8hbK8v63W4" style="vertical-align: bottom; background-color: White"> <td>Cost of sales</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,860</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,335</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,585</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--GrossProfit_zCQr7zjeLi62" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">335,779</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,629</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">673</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ResearchAndDevelopmentExpense_zOtJVUCPrsKj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Research and development expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,166,605</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">843,549</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,960,589</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,418,228</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingExpenses_z2riHxAUFb9k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total operating expenses</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">3,035,512</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">5,157,906</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,598,861</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">8,729,896</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingIncomeLoss_z4WVVdYyALJd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,699,733</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,157,906</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6,209,232</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(8,729,223</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--IncomeLossFromContinuingOperations_z1SBr7pUHoCh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Net loss</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(2,822,371</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(6,720,573</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(6,224,635</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(9,784,570</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total assets (at period end)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_985_eus-gaap--Assets_iI_c20260630_zycMARZ6AWO9" style="font-weight: bold; text-align: right" title="Total assets">87,734,007</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--Assets_iI_c20250630_zm4EiJuj0kY" style="font-weight: bold; text-align: right" title="Total assets">84,178,330</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--Assets_iI_c20260630_zZ6bjSHbQmUa" style="font-weight: bold; text-align: right" title="Total assets">87,734,007</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--Assets_iI_c20250630_z9K7NBLLeWAf" style="font-weight: bold; text-align: right" title="Total assets">84,178,330</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

true

504000

316000

346000

545000

427000

989000

411411

831419

963752

1896304

117815

443993

7139 22902

368790

1443654

461571

929585

<p id="xdx_89E_eus-gaap--ScheduleOfSegmentReportingInformationBySegmentTextBlock_hus-gaap--StatementBusinessSegmentsAxis__custom--SingleReportableSegmentMember_zhGTheRf7gBk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table presents key financial information for the Company’s single reportable segment for the three and six months ended June 30, 2026 and 2025: SCHEDULE OF SEGMENTAL FINANCIAL INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_496_20260401__20260630_zfpetEEiTdLe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49F_20250401__20250630_zRnVYcUgB1Jc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49D_20260101__20260630_zbUd49wjdvik" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20250101__20250630_zLRaMI5ftSXc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Three Months Ended</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="font-weight: bold; text-align: center">Six Months Ended</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zyrosdLBpEJ4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%">Revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">343,639</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">399,964</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">10,258</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--CostOfRevenue_zJ8hbK8v63W4" style="vertical-align: bottom; background-color: White"> <td>Cost of sales</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,860</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,335</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,585</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--GrossProfit_zCQr7zjeLi62" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Gross profit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">335,779</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,629</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">673</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--ResearchAndDevelopmentExpense_zOtJVUCPrsKj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Research and development expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,166,605</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">843,549</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,960,589</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,418,228</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--OperatingExpenses_z2riHxAUFb9k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Total operating expenses</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">3,035,512</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">5,157,906</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">6,598,861</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">8,729,896</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingIncomeLoss_z4WVVdYyALJd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(2,699,733</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(5,157,906</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(6,209,232</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(8,729,223</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--IncomeLossFromContinuingOperations_z1SBr7pUHoCh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Net loss</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(2,822,371</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(6,720,573</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(6,224,635</td><td style="font-weight: bold; text-align: left">)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">(9,784,570</td><td style="font-weight: bold; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Total assets (at period end)</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_985_eus-gaap--Assets_iI_c20260630_zycMARZ6AWO9" style="font-weight: bold; text-align: right" title="Total assets">87,734,007</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--Assets_iI_c20250630_zm4EiJuj0kY" style="font-weight: bold; text-align: right" title="Total assets">84,178,330</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--Assets_iI_c20260630_zZ6bjSHbQmUa" style="font-weight: bold; text-align: right" title="Total assets">87,734,007</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td id="xdx_982_eus-gaap--Assets_iI_c20250630_z9K7NBLLeWAf" style="font-weight: bold; text-align: right" title="Total assets">84,178,330</td><td style="font-weight: bold; text-align: left"> </td></tr> </table>

343639

399964

10258

7860

10335

9585

335779

389629

673

1166605

843549

1960589

1418228

3035512

5157906

6598861

8729896

-2699733

-5157906

-6209232

-8729223

-2822371

-6720573

-6224635

-9784570

87734007

84178330

87734007

84178330

NOTE 16 – SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date these condensed consolidated financial statements were issued and determined that there have been no events or transactions requiring recognition or disclosure in these condensed consolidated financial statements.

false false false false SCN-102 received regulatory approval in March 2025.Product commercialization began in the third quarter of 2025. Management expects SCN-104 to achieve regulatory approval in late 2028, with product commercialization projected to begin in late 2028. Management expects SCN-106 to achieve regulatory approval in 2029, with product commercialization projected to begin in 2029. Management expects SCN-107 to achieve regulatory approval in 2029, with product commercialization projected to begin in 2030.