NOTE 6 – INTANGIBLE ASSETS

The Company’s intangible assets consist entirely of licenses of intellectual property. Details related to the amounts of these licenses were as follows:

Amortization expense for the three months ended June 30, 2026 and 2025 was $74,229 and $5,386, respectively.

Amortization expense for the six months ended June 30, 2026 and 2025 was $79,616 and $10,773, respectively.

The following table outlines the estimated future annual amortization expense related to intangible assets as of June 30, 2026:

Galantos Royalty Settlement Agreement

As described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, the Company had previously entered into the Memogain Technology License Agreement (“License Agreement”) with Neurodyn Life Sciences, Inc. (“NLS”) for the exclusive right and license to further develop and exploit the Memogain Technology (“ALPHA-1062 Technology”). The License Agreement expires in 2044 – the date the last patent obtained related to the ALPHA-1062 Technology expires. Under the License Agreement, the Company assumed NLS’s obligations to pay royalties to Galantos Pharma GmbH (“Galantos”).

Total cumulative payments to Galantos were subject to a maximum amount of EUR 10 million that would increase to a maximum of EUR 15 million subject to certain provisions involving sub-licensing the ALPHA-1062 Technology and the Company receiving an upfront out-licensing payment of no less than EUR 8 million. Through April 10, 2026, the Company had made royalty payments to Galantos of EUR 736,167.

On April 10, 2026, the Company and Galantos entered into a Settlement Agreement and Mutual Release (the “Royalty Settlement Agreement”) under which the Company agreed to make a one-time payment of EUR 5,214,220 ($6,057,172 based on exchange rate on April 15 payment date) to settle all current and future royalty obligations that would have been due to Galantos under the original License Agreement.

At the time of the Royalty Settlement Agreement, accrued but unpaid royalties due to Galantos from sales that had occurred prior to the execution date totaled EUR 127,542 (approximately $150,000). Therefore, this portion of the EUR 5,214,220 settlement payment was recorded as a reduction of the Company’s accrued royalty liability. The remaining portion of the payment made to Galantos (EUR 5,086,678 or US $5,906,702) was recognized as an intangible asset representing a royalty-free, paid-up license to the ALPHA-1062 Technology for the remaining contractual term of the License Agreement. Since this intangible asset relieves the Company from any obligations to make additional royalty payments in future years, the Company determined the estimated useful life of this license to be 18 years by reference to the period over which royalty payments would have otherwise been due to Galantos.

Progranulin License Termination

In November 2020, the Company entered into a license agreement with NLS that granted the Company worldwide exclusive rights to develop and commercialize the Progranulin technology. As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, the Company decided to discontinue development of the Progranulin technology during 2024. On June 16, 2026, the Company entered into a Progranulin License Termination, Assignment and Royalty Agreement with NLS pursuant to which the parties formally terminated the November 2020 license agreement. Under the termination agreement, the Company returned all rights to the Progranulin technology to NLS and assigned its obligations under the related Scientist Royalty Agreement to NLS. In exchange, the Company received contingent rights to future royalties and other payments if NLS successfully commercializes, sublicenses, or sells the Progranulin technology.