| SEGMENT REPORTING |
11 — SEGMENT REPORTING The Company has one reportable operating segment relating to developing aryl hydrocarbon receptor agonists to treat autoimmune diseases, including ulcerative colitis, and drug development for addiction and related disorders. When evaluating the Company’s financial performance, the CODM reviews total operating expenses for the operating segment excluding equity method investments. The CODM makes decisions using this information on a company-wide basis. Significant segment expenses, as provided to the CODM, are presented below: | | | For the Three Months Ended | | | For the Six Months Ended | | | | | June 30, | | | June 30, | | | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | Operating Expenses: | | | | | | | | | | | | | | Segment research and development expenses | | $ | 440 | | | $ | 732 | | | $ | 873 | | | $ | 1,479 | | | Segment general and administrative expenses | | | 5,400 | | | | 1,150 | | | | 6,969 | | | | 2,671 | | | Acquired in-process research and development | | | 46,185 | | | | — | | | | 46,185 | | | | — | | | Total Operating Expenses | | | 52,025 | | | | 1,882 | | | | 54,027 | | | | 4,150 | | | | | | | | | | | | | | | | | | | | | Loss From Operations | | | (52,025 | ) | | | (1,882 | ) | | | (54,027 | ) | | | (4,150 | ) | | | | | | | | | | | | | | | | | | | | Other Income (Expense) | | | | | | | | | | | | | | | | | | Interest income | | | 58 | | | | 24 | | | | 105 | | | | 59 | | | Change in fair value of milestone warrant rights liability | | | 8,280 | | | | — | | | | 8,280 | | | | — | | | Financing expense related to milestone warrant rights liability | | | (2,067 | ) | | | | | | | (2,067 | ) | | | | | | Loss on extinguishment of Azora Therapeutics convertible promissory notes | | | (6,054 | ) | | | — | | | | (6,054 | ) | | | — | | | Loss on equity method investment | | | (181 | ) | | | (99 | ) | | | (249 | ) | | | (262 | ) | | Other income (expenses) | | | — | | | | (1 | ) | | | — | | | | 165 | | | Total other income (expense) | | | 36 | | | | (76 | ) | | | 15 | | | | (38 | ) | | | | | | | | | | | | | | | | | | | | Net Loss | | $ | (51,989 | ) | | $ | (1,958 | ) | | $ | (54,012 | ) | | $ | (4,188 | ) |
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