NOTE 3 – INVENTORY

No write-offs were recorded during the six months ended June 30, 2026. During the six months ended June 30, 2025, the Company recorded inventory write-offs of approximately $153 thousand due to abnormal loss, net realizable value adjustments, product expiration, idle facility expenses, freight and handling costs, scrap, and wasted material (spoilage). These charges were recorded in Selling, general, and administrative expenses.

We capitalize inventory costs related to our investigational drug, provided that management determines there is a potential alternative use for the inventory in future research and development projects or other purposes. As of June 30, 2026, and December 31, 2025, the Company’s consolidated balance sheet reported approximately $392 thousand in clinical trial-related inventory, as of each date.