| Summary of Significant Expense Categories |
The
tables below summarize the significant expense categories regularly reviewed by the CODM for the three months ended March 31, 2025 and
2026:
Summary
of Significant Expense Categories
| | |
2025 | | |
2026 | |
| | |
Three
Months Ended
March 31, | |
| | |
2025 | | |
2026 | |
| Revenues: | |
| | | |
| | |
| Revenues | |
$ | 5,065 | | |
$ | 6,543,001 | |
| Cost of revenues | |
| (4,052 | ) | |
| (11,071 | ) |
| Gross Profit | |
| 1,013 | | |
| 6,531,930 | |
| | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | |
| Research and development expenses | |
| | | |
| | |
| Salaries, benefits and
related expenses | |
| 701,106 | | |
| 778,385 | |
| Manufacturing and materials | |
| 262,798 | | |
| (9,959 | ) |
| Preclinical expenses | |
| 177,111 | | |
| 217,566 | |
| Clinical trials | |
| 187,820 | | |
| 127,533 | |
| Overhead
allocations | |
| 149,876 | | |
| 144,423 | |
| Total research and development
expenses | |
| 1,478,711 | | |
| 1,257,948 | |
| General and administrative | |
| | | |
| | |
| Salaries, benefits and
related expenses | |
| 788,490 | | |
| 523,353 | |
| Professional
services(a) | |
| 454,369 | | |
| 485,137 | |
| Facilities and office expenses | |
| 94,330 | | |
| 112,912 | |
| Depreciation expenses | |
| 61,237 | | |
| 53,876 | |
| Rent and occupancy expenses | |
| 49,750 | | |
| 41,162 | |
| Insurance | |
| 290,269 | | |
| 194,442 | |
| Taxes | |
| 32,592 | | |
| 174,688 | |
| Other
expenses | |
| 183,501 | | |
| 233,294 | |
| Total general and administrative
expenses | |
| 1,954,538 | | |
| 1,818,864 | |
| Other
segment items(b) | |
| (1,235,361 | ) | |
| (347,548 | ) |
| Total
operating expenses | |
| 2,197,888 | | |
| 2,729,264 | |
| Net segment income (loss) | |
$ | (2,196,875 | ) | |
$ | 3,802,666 | |
| (a) |
Professional
services consist primarily of audit and accounting advisory services, tax advisory services,
corporate legal services related to SEC compliance, and legal fees related to patent filings. |
| (b) |
Other
segment items include the following unusual or nonrecurring items: |
| | |
2025 | | |
2026 | |
| | |
Three
Months Ended
March 31, | |
| | |
2025 | | |
2026 | |
| Arbitration legal fees, net | |
$ | (1,739,493 | ) | |
$ | 6,850 | |
| Accretion of fixed bonus upon maturity of Senior
Notes, net | |
| 273,059 | | |
| 14,413 | |
| Interest expense | |
| 255,822 | | |
| 109,274 | |
| Indirect tax expense | |
| -- | | |
| 198,146 | |
| Change in fair value of warrant liability | |
| -- | | |
| (667,343 | ) |
| Other income, net | |
| (24,749 | ) | |
| (8,888 | ) |
| Other segment items | |
$ | (1,235,361 | ) | |
$ | (347,548 | ) |
|