Note 2. Liquidity and Going Concern

The Company incurred a net loss of approximately $10,401,000 and $8,868,000 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the Company had working capital of approximately $4,136,000.

In May 2026, the Company completed a registered direct offering of shares of the Company’s common stock and pre-funded warrants to purchase common stock. The Company received gross proceeds of approximately $4,400,000 from the offering, before deducting offering expenses payable by the Company of approximately $512,000. In a concurrent private placement, the Company issued warrants to purchase shares of common stock to the investors in the offering. In July 2025, the Company entered into an ATM Sales Agreement (“ATM”), with ThinkEquity LLC (“ThinkEquity”), as sales agent, pursuant to which the Company may offer and sell shares of its common stock from time to time, in “at-the-market” offerings to or through its sales agent.

In addition to its existing capital resources, the Company intends to pursue periodic capital raises, including additional potential sales under the ATM, and also pursue collaborations, grant funding and other opportunities to extend the Company’s operating runway. However, the Company’s cash, cash equivalents, and marketable securities on hand as of the date of this report will not allow the Company to fund its operating expenses and capital expenditure requirements under its current level of operations for 12 months from the date of this report. For this reason, there is substantial doubt about the Company’s ability to continue as a going concern in the absence of obtaining substantial additional funding.

The Company’s ability to continue as a going concern is highly contingent on the ability to raise additional capital for ongoing research and development and clinical trials as the Company expects to continue incurring losses for the foreseeable future. If the Company is not able to raise sufficient additional capital when needed, the Company may be required to delay, reduce or eliminate drug development programs and other activities to support extension of its operating runway. The financial statements in this report have been prepared assuming that the Company will continue as a going concern, and do not include any adjustments that may be necessary should the Company be unable to continue as a going concern. The Company has incurred, and it anticipates it will continue to incur, losses and generate negative operating cash flows and as such will require substantial additional funding in the near future to continue its research and development activities. These factors raise substantial doubt about the Company’s ability to continue as a going concern in the absence of obtaining substantial additional funding. While the Company plans to pursue periodic capital raises, including additional potential sales under the ATM, as well as potential collaborations, grant funding and other opportunities to extend the Company’s operating runway, no assurance can be given that sufficient funding will be available when needed to allow the Company to continue as a going concern.