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<div> NOTE 1 – NATURE OF OPERATIONS <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:20pt"></td> <td style="width:18pt">a.</td> <td style="text-align:justify">The Company is an innovative dermatology company with a successful track record of two NDA approvals and advanced orphan drugs pipeline. The Company has two approved drugs: (i) Twyneo®, which was developed for the treatment of acne vulgaris and received marketing authorization by the U.S. Food and Drug Administration (the "FDA") on July 27, 2021 and (ii) Epsolay®, a treatment for subtype II rosacea that received marketing authorization by the FDA on April 25, 2022. In June 2021, the Company entered into two exclusive license agreements with Galderma for the commercialization of Twyneo® and Epsolay®, in the United States. On April 14, 2022, the Company announced that Twyneo® is available for purchase by consumers who obtain a prescription from their physician. On June 2, 2022, the Company announced that Epsolay® is available for purchase by consumers who obtain a prescription from their physician. For further details regarding agreements in respect of Epsolay® and Twyneo®, see Note 9 to the annual financial statements.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:20pt"></td> <td style="width:18pt">b.</td> <td style="text-align:justify">On January 27, 2023 the Company entered into an asset purchase agreement ("APA") with PellePharm, Inc. (“PellePharm”), pursuant to which the Company agreed to purchase all of the assets related to the topically-applied patidegib, a hedgehog signaling pathway blocker, for the treatment of Gorlin syndrome (such compound designated as investigational compound SGT-610) For further details, see Note 9 to the annual financial statements.</td> </tr> </table> On May 15, 2024, the Company and Shenzhen Beimei Pharmaceutical Co. Ltd. ("Beimei"), entered into an asset purchase agreement. For further details, see Note 9 to the annual financial statements. <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:20pt"></td> <td style="width:18pt">c.</td> <td style="text-align:justify">During the first quarter of 2025, the Company committed to fund approximately $2.9 million (€2.7 million) for a hydrogenator at Ajinomoto Bio-Pharma Services ("Omnichem") to support the potential commercial manufacturing of Patidegib API.</td> </tr> </table> The payment will be made in two installments: <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:42.65pt"></td> <td style="width:14.15pt">a.</td> <td style="text-align:justify">$1.4 million (€1.3 million) paid in March 2025.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:42.65pt"></td> <td style="width:14.15pt">b.</td> <td style="text-align:justify">$1.5 million (€1.4 million) is due in December 2026, such payment is composed of deferred principal and accrued interest.</td> </tr> </table> Accordingly, during 2025, the total amount of this payment is recorded under Other accounts payable in the balance sheet, amounting to $1.45 million.The Company recognized R&D expenses for a total amount of $2.6 million which is measured on a present value basis. <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:20pt"></td> <td style="width:18pt">d.</td> <td style="text-align:justify">On April 17, 2025, the Company entered into a product purchase agreement with a subsidiary of Mayne Pharma Group Limited (“Mayne Pharma”) for the sale and exclusive license of the U.S. rights to EPSOLAY and TWYNEO. Under the terms of the agreement, the Company is entitled to receive a total of $16 million in two installments: $10 million in the second quarter of 2025 and $6 million in the fourth quarter of 2025. This agreement was executed following the mutual termination by Sol-Gel and Galderma of the exclusive five-year license agreement in the U.S. for both products</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:20pt"></td> <td style="width:18pt">e.</td> <td style="text-align:justify">The Company has a wholly owned U.S. subsidiary - Sol-Gel Technologies Inc. (the "Subsidiary"). The Subsidiary supports the Company with regard to marketing, regulatory affairs and business development relating to its products and technology in the U.S. The Subsidiary ceased to operate in 2024.</td> </tr> <tr> <td style="width:20pt"></td> <td style="width:18pt"> </td> <td style="text-align:justify"> </td> </tr> </table> <div></div> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:20pt"></td> <td style="width:18pt">f.</td> <td style="text-align:justify">In October 2023, Israel was attacked by Hamas, a terrorist organization and entered a state of war. Since the commencement of these events, there have been additional active hostilities, including with Hezbollah in Lebanon, the Houthi movement which controls parts of Yemen, and with Iran. On October 9, 2025, Israel, Hamas, the United States and other countries in the region agreed to a framework for a ceasefire in Gaza between Israel and Hamas. How long and how severe the current conflicts in Gaza, Northern Israel, Lebanon, Iran or the broader region become is unknown at this time and any continued clash among Israel, Hamas, Hezbollah, Iran or other countries or militant groups in the region may escalate in the future into a greater regional conflict. As of the date of these consolidated financial statements and, the ceasefire between Israel and Hamas formally remains in place, but the broader regional situation continues to be unstable and subject to sudden escalation, and the ultimate political and security outcomes of these arrangements remain uncertain. On February 28, 2026, the United States and Israel launched a joint attack on Iran. Iran launched ballistic missiles and drones against targets in Israel and against U.S. military bases and other targets in several countries in the Persian Gulf and Hezbollah joined Iran in launching ballistic missiles and drones against targets in Israel. As of the date of these consolidated financial statements, the war is ongoing and continues to evolve. The intensity and duration of the war is difficult to predict, as such are the war’s economic implications of the conflict on the Company’s operational and financial performance.</td> </tr> </table> As of the issuance date of this report, there was no material impact on the Company's ongoing operations in Israel. The Company continues to monitor its ongoing activities and will make any needed adjustments to ensure continuity of its business, while supporting the safety and well-being of its employees. <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:20pt"></td> <td style="width:18pt">g.</td> <td style="text-align:justify">Risk and Uncertainties</td> </tr> </table> Since incorporation through June 30, 2026, the Company has an accumulated deficit of $244,418 and its activities have been funded mainly by its shareholders, public offerings, license agreements and sale of IP, see also Note 5 and Note 6a. The Company expects to continue to incur significant research and development and other costs related to its ongoing operations. Management expects that the Company's cash and cash equivalents, deposits and marketable securities will allow the Company to fund its operating plan through at least the next 12 months from the financial statement issuance date. </div>

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<div> <div style="line-height:1.25;font-weight:bold">NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES: </div> <div> <div> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:18pt"></td> <td style="width:18pt">a.</td> <td style="vertical-align:middle;text-align:justify">Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. The interim financial statements have been prepared using the same accounting policies as those applied in the preparation of the Company's annual financial statements. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2026, the consolidated results of operations and the statements of changes in shareholders' equity for the six and three month periods ended June 30, 2026 and 2025 and the statements of cash flows for the six month periods ended June 30, 2026 and 2025. </td> </tr> </table> <div></div> The consolidated results for the six month period ended June 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2025. The comparative balance sheet at December 31, 2025 has been derived from the audited financial statements at that date but does not include all disclosures required by U.S. GAAP. </div> <div> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:18pt"></td> <td style="width:18pt">b.</td> <td style="text-align:justify">Loss per share Basic loss per share is computed on the basis of the net loss for the period divided by the weighted average number of ordinary shares outstanding during the period. Diluted loss per share is based upon the weighted average number of ordinary shares and of potential ordinary shares outstanding when dilutive. Potential ordinary shares include outstanding stock options and warrants, which are included under the treasury stock method when dilutive.</td> </tr> </table> </div> </div> </div>

<div> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:18pt"></td> <td style="width:18pt">a.</td> <td style="vertical-align:middle;text-align:justify">Basis of Presentation The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial statements. Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. The interim financial statements have been prepared using the same accounting policies as those applied in the preparation of the Company's annual financial statements. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of June 30, 2026, the consolidated results of operations and the statements of changes in shareholders' equity for the six and three month periods ended June 30, 2026 and 2025 and the statements of cash flows for the six month periods ended June 30, 2026 and 2025. </td> </tr> </table> <div></div> The consolidated results for the six month period ended June 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of the Company for the year ended December 31, 2025. The comparative balance sheet at December 31, 2025 has been derived from the audited financial statements at that date but does not include all disclosures required by U.S. GAAP. </div>

<div> <div style="line-height:1.25;font-weight:bold">NOTE 3 – MARKETABLE SECURITIES:</div> <div> The following table sets forth the Company’s marketable securities for the indicated periods: <div> <div style="margin-left:36pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:98.1%;font:10pt Times New Roman, Times, Serif"> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="font-weight:bold"> </td> <td colspan="2" style="font-weight:bold;text-align:center">December 31,</td> <td style="font-weight:bold"> </td> <td style="font-weight:bold"> </td> <td colspan="2" style="font-weight:bold;text-align:center">June 30,</td> <td style="font-weight:bold"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="2" style="text-align:center;border-bottom:Black 1pt solid"> 2025 </td> <td style="padding-bottom:1pt"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="2" style="text-align:center;border-bottom:Black 1pt solid"> 2026 </td> <td style="padding-bottom:1pt"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left">Level 2 securities:</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right"> </td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right"> </td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="width:76%;text-align:left">U.S government and agency bonds</td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">5,280</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">14,338</td> <td style="width:1%;text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left">Corporate bonds*</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">7,686</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">11,755</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left;padding-bottom:1pt">Other Government bonds</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">-</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">5,174</td> <td style="padding-bottom:1pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left;padding-bottom:2.5pt">Total</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="border-bottom:Black 2.5pt double;text-align:right">12,966</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="border-bottom:Black 2.5pt double;text-align:right">31,267</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> </tr> </table> </div> * Investments in Corporate bonds rated A or higher. </div> The Company elected the fair value option to measure and recognize its investments in debt securities in accordance with ASC 825, Financial Instruments as the Company manages its portfolio and evaluates the performance on a fair value basis. The Company’s debt securities are classified within Level 2 because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. The cost of marketable securities as of June 30, 2026 is $31,252. <div></div> The table below sets forth a summary of the changes in the fair value of the Company’s marketable securities for the indicated periods: <div style="margin-left:36pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:98.1%;font:10pt Times New Roman, Times, Serif"> <tr style="vertical-align:bottom"> <td style="text-align:center;padding-bottom:1pt"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;font-weight:bold;text-align:left"> </td> <td colspan="5" style="border-bottom:Black 1pt solid;font-weight:bold;text-align:center">Marketable securities</td> <td style="padding-bottom:1pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="font-weight:bold"> </td> <td style="font-weight:bold;text-align:left;border-bottom:1pt solid black"> </td> <td style="font-weight:bold;text-align:center;margin-top:0pt;margin-bottom:0pt;border-bottom:1pt solid black"> For the year ended December 31, 2025 </td> <td style="font-weight:bold;text-align:left"> </td> <td style="font-weight:bold"> </td> <td style="font-weight:bold;text-align:left;border-bottom:1pt solid black"> </td> <td style="font-weight:bold;text-align:center;margin-top:0pt;margin-bottom:0pt;border-bottom:1pt solid black"> For the Six Months ended June 30, 2026 </td> <td style="font-weight:bold;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right"> </td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right"> </td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="width:76%;text-align:justify">Balance at beginning of the period</td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">4,425</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">12,966</td> <td style="width:1%;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify">Additions</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">14,078</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">31,252</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify">Sale or maturity</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">(5,511</td> <td style="text-align:left">)</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">(12,876</td> <td style="text-align:left">)</td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify;padding-bottom:1pt">Changes in fair value during the period</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">(26</td> <td style="padding-bottom:1pt;text-align:left">)</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">(75</td> <td style="padding-bottom:1pt;text-align:left">)</td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify;padding-bottom:2.5pt">Balance at end of the period</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="border-bottom:Black 2.5pt double;text-align:right">12,966</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="border-bottom:Black 2.5pt double;text-align:right">31,267</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> </tr> </table> </div> </div> </div>

<div> <div style="margin-left:36pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:98.1%;font:10pt Times New Roman, Times, Serif"> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="font-weight:bold"> </td> <td colspan="2" style="font-weight:bold;text-align:center">December 31,</td> <td style="font-weight:bold"> </td> <td style="font-weight:bold"> </td> <td colspan="2" style="font-weight:bold;text-align:center">June 30,</td> <td style="font-weight:bold"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="2" style="text-align:center;border-bottom:Black 1pt solid"> 2025 </td> <td style="padding-bottom:1pt"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="2" style="text-align:center;border-bottom:Black 1pt solid"> 2026 </td> <td style="padding-bottom:1pt"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left">Level 2 securities:</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right"> </td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right"> </td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="width:76%;text-align:left">U.S government and agency bonds</td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">5,280</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">14,338</td> <td style="width:1%;text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left">Corporate bonds*</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">7,686</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">11,755</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left;padding-bottom:1pt">Other Government bonds</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">-</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">5,174</td> <td style="padding-bottom:1pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left;padding-bottom:2.5pt">Total</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="border-bottom:Black 2.5pt double;text-align:right">12,966</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="border-bottom:Black 2.5pt double;text-align:right">31,267</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> </tr> </table> </div> * Investments in Corporate bonds rated A or higher. </div>

5280000

14338000

7686000

11755000

5174000

12966000

31267000

31252000

<div style="margin-left:36pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;width:98.1%;font:10pt Times New Roman, Times, Serif"> <tr style="vertical-align:bottom"> <td style="text-align:center;padding-bottom:1pt"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;font-weight:bold;text-align:left"> </td> <td colspan="5" style="border-bottom:Black 1pt solid;font-weight:bold;text-align:center">Marketable securities</td> <td style="padding-bottom:1pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="font-weight:bold"> </td> <td style="font-weight:bold;text-align:left;border-bottom:1pt solid black"> </td> <td style="font-weight:bold;text-align:center;margin-top:0pt;margin-bottom:0pt;border-bottom:1pt solid black"> For the year ended December 31, 2025 </td> <td style="font-weight:bold;text-align:left"> </td> <td style="font-weight:bold"> </td> <td style="font-weight:bold;text-align:left;border-bottom:1pt solid black"> </td> <td style="font-weight:bold;text-align:center;margin-top:0pt;margin-bottom:0pt;border-bottom:1pt solid black"> For the Six Months ended June 30, 2026 </td> <td style="font-weight:bold;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right"> </td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right"> </td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="width:76%;text-align:justify">Balance at beginning of the period</td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">4,425</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">12,966</td> <td style="width:1%;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify">Additions</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">14,078</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">31,252</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify">Sale or maturity</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">(5,511</td> <td style="text-align:left">)</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">(12,876</td> <td style="text-align:left">)</td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify;padding-bottom:1pt">Changes in fair value during the period</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">(26</td> <td style="padding-bottom:1pt;text-align:left">)</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">(75</td> <td style="padding-bottom:1pt;text-align:left">)</td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify;padding-bottom:2.5pt">Balance at end of the period</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="border-bottom:Black 2.5pt double;text-align:right">12,966</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="border-bottom:Black 2.5pt double;text-align:right">31,267</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> </tr> </table> </div>

4425000

12966000

14078000 31252000 5511000 12876000

-26000

-75000

12966000

31267000

<div> NOTE 4 – SUPPLEMENTARY FINANCIAL STATEMENT INFORMATION: <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:21.25pt"></td> <td style="width:28.4pt">Revenue:</td> <td style="text-align:justify"></td> </tr> </table> <div style="margin-left:36pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font:10pt Times New Roman, Times, serif;width:98.1%"> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="6" style="text-align:center;border-bottom:Black 1pt solid"> Six months ended June 30 </td> <td style="padding-bottom:1pt"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="6" style="text-align:center;border-bottom:Black 1pt solid"> Three months ended June 30 </td> <td style="padding-bottom:1pt"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:center"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="2" style="text-align:center;border-bottom:Black 1pt solid">2025 </td> <td style="padding-bottom:1pt"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="2" style="text-align:center;border-bottom:Black 1pt solid"> 2025 </td> <td style="padding-bottom:1pt"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify;width:52%">Royalties revenue</td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">683</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">-</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">530</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">-</td> <td style="width:1%;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify">Sale of IP and license revenue</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">17,577</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">568</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">16,717</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">460</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify">Support services</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">32</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">131</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">14</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">131</td> <td style="padding-bottom:1pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify">Total revenue</td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">18,292</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">699</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">17,261</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">591</td> <td style="text-align:left"> </td> </tr> </table> </div> Research and development expenses: <div style="margin-left:36pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font:10pt Times New Roman, Times, Serif;width:98.1%"> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="6" style="text-align:center;border-bottom:Black 1pt solid"> Six months ended June 30 </td> <td style="padding-bottom:1pt"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="6" style="text-align:center;border-bottom:Black 1pt solid"> Three months ended June 30 </td> <td style="padding-bottom:1pt"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:center"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2025</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2025</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="width:52%;text-align:left;text-indent:-14.2pt;padding-left:15.9pt">Payroll and related expenses</td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">1,687</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">2,083</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">763</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">1,026</td> <td style="width:1%;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left">Clinical and preclinical trials expenses</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">3,660</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,992</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,850</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,590</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left;text-indent:-14.2pt;padding-left:15.9pt">Professional consulting and subcontracted work</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">4,722</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,819</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,656</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">797</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left;text-indent:-14.2pt;padding-left:15.9pt">Supplier-led manufacturing development</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">2,749</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">-</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">-</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">-</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left;padding-bottom:1pt;text-indent:-14.2pt;padding-left:15.9pt">Other</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">671</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">611</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">377</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">306</td> <td style="padding-bottom:1pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left;text-indent:-14.2pt;padding-left:15.9pt">Total Research and development expenses</td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">13,489</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">6,505</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">4,646</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">3,719</td> <td style="text-align:left"> </td> </tr> </table> </div> </div>

<table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font:10pt Times New Roman, Times, serif;width:98.1%"> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="6" style="text-align:center;border-bottom:Black 1pt solid"> Six months ended June 30 </td> <td style="padding-bottom:1pt"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="6" style="text-align:center;border-bottom:Black 1pt solid"> Three months ended June 30 </td> <td style="padding-bottom:1pt"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:center"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="2" style="text-align:center;border-bottom:Black 1pt solid">2025 </td> <td style="padding-bottom:1pt"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="2" style="text-align:center;border-bottom:Black 1pt solid"> 2025 </td> <td style="padding-bottom:1pt"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify;width:52%">Royalties revenue</td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">683</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">-</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">530</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">-</td> <td style="width:1%;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify">Sale of IP and license revenue</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">17,577</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">568</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">16,717</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">460</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify">Support services</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">32</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">131</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">14</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">131</td> <td style="padding-bottom:1pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify">Total revenue</td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">18,292</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">699</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">17,261</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">591</td> <td style="text-align:left"> </td> </tr> </table>

683000

530000

17577000

568000

16717000

460000

32000

131000

14000

131000

18292000

699000

17261000

591000

<div style="margin-left:36pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font:10pt Times New Roman, Times, Serif;width:98.1%"> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="6" style="text-align:center;border-bottom:Black 1pt solid"> Six months ended June 30 </td> <td style="padding-bottom:1pt"> </td> <td style="padding-bottom:1pt"> </td> <td colspan="6" style="text-align:center;border-bottom:Black 1pt solid"> Three months ended June 30 </td> <td style="padding-bottom:1pt"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:center"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2025</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2025</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="width:52%;text-align:left;text-indent:-14.2pt;padding-left:15.9pt">Payroll and related expenses</td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">1,687</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">2,083</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">763</td> <td style="width:1%;text-align:left"> </td> <td style="width:1%"> </td> <td style="width:1%;text-align:left">$</td> <td style="width:9%;text-align:right">1,026</td> <td style="width:1%;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left">Clinical and preclinical trials expenses</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">3,660</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,992</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,850</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,590</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left;text-indent:-14.2pt;padding-left:15.9pt">Professional consulting and subcontracted work</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">4,722</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,819</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">1,656</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">797</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left;text-indent:-14.2pt;padding-left:15.9pt">Supplier-led manufacturing development</td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">2,749</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">-</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">-</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left"> </td> <td style="text-align:right">-</td> <td style="text-align:left"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:left;padding-bottom:1pt;text-indent:-14.2pt;padding-left:15.9pt">Other</td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">671</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">611</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">377</td> <td style="padding-bottom:1pt;text-align:left"> </td> <td style="padding-bottom:1pt"> </td> <td style="border-bottom:Black 1pt solid;text-align:left"> </td> <td style="border-bottom:Black 1pt solid;text-align:right">306</td> <td style="padding-bottom:1pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:left;text-indent:-14.2pt;padding-left:15.9pt">Total Research and development expenses</td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">13,489</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">6,505</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">4,646</td> <td style="text-align:left"> </td> <td> </td> <td style="text-align:left">$</td> <td style="text-align:right">3,719</td> <td style="text-align:left"> </td> </tr> </table> </div>

1687000

2083000

763000

1026000

3660000 1992000 1850000 1590000

4722000

1819000

1656000

797000

2749000 0 0 0

671000

611000

377000

306000

13489000

6505000

4646000

3719000

<div> <div style="line-height:1.25;font-weight:bold">NOTE 5 – SHARE CAPITAL:</div> <div> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:14.2pt"></td> <td style="width:18pt">a.</td> <td style="text-align:left">Ordinary shares</td> </tr> </table> On March 23, 2026, the Company issued and sold 459,112 ordinary shares, par value NIS 1.00 per share, at a public offering price of $72.00 per share. The offering was conducted pursuant to the Company’s effective shelf registration statement. The gross proceeds from the offering amounted is approximately $33.1 million. <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:14.2pt"></td> <td style="width:18pt">b.</td> <td style="text-align:left">Options grants</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:60.6pt"></td> <td style="width:9pt">i.</td> <td style="text-align:left">In January 19, 2026, the Company granted a total of 23,050 options to employees and executive officers to purchase ordinary shares at an exercise price of $69.5 per share.</td> </tr> </table> The options vest over a period of 4 years; one quarter of the options vest on the first anniversary of the vesting commencement date (as described in each agreement) and the rest vest quarterly over the following six years. The options expire on the tenth anniversary of their grant date. The weighted average fair value of options granted in 2026 was $1,214. The underlying data used for computing the fair value of the options are as follows: <div style="margin-left:80pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font:10pt Times New Roman, Times, serif;width:96.9%"> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="width:88%;padding-bottom:2.5pt;text-indent:0pt">Value of one ordinary share</td> <td style="width:1%;padding-bottom:2.5pt"> </td> <td style="width:1%;border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="width:9%;border-bottom:Black 2.5pt double;text-align:right">69.5</td> <td style="width:1%;padding-bottom:2.5pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify;padding-bottom:2.5pt;text-indent:0pt">Dividend yield</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left"> </td> <td style="border-bottom:Black 2.5pt double;text-align:right">0</td> <td style="padding-bottom:2.5pt;text-align:left">%</td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify;padding-bottom:2.5pt;text-indent:0pt">Expected volatility</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left"> </td> <td style="border-bottom:Black 2.5pt double;text-align:right">87</td> <td style="padding-bottom:2.5pt;text-align:left">%</td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify;padding-bottom:2.5pt;text-indent:0pt">Risk-free interest rate</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left"> </td> <td style="border-bottom:Black 2.5pt double;text-align:right">4.08</td> <td style="padding-bottom:2.5pt;text-align:left">%</td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify;padding-bottom:2.5pt;text-indent:0pt">Expected term</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left"> </td> <td style="border-bottom:Black 2.5pt double;text-align:right">6.25 years</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> </tr> </table> </div> </div> </div>

459112

33100000

23050

69.5

P4Y

1214

<div style="margin-left:80pt"> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse;font:10pt Times New Roman, Times, serif;width:96.9%"> <tr style="vertical-align:bottom"> <td style="text-align:justify"> </td> <td style="font-weight:bold;padding-bottom:1pt"> </td> <td colspan="2" style="font-weight:bold;text-align:center;border-bottom:Black 1pt solid">2026</td> <td style="padding-bottom:1pt;font-weight:bold"> </td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="width:88%;padding-bottom:2.5pt;text-indent:0pt">Value of one ordinary share</td> <td style="width:1%;padding-bottom:2.5pt"> </td> <td style="width:1%;border-bottom:Black 2.5pt double;text-align:left">$</td> <td style="width:9%;border-bottom:Black 2.5pt double;text-align:right">69.5</td> <td style="width:1%;padding-bottom:2.5pt;text-align:left"> </td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify;padding-bottom:2.5pt;text-indent:0pt">Dividend yield</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left"> </td> <td style="border-bottom:Black 2.5pt double;text-align:right">0</td> <td style="padding-bottom:2.5pt;text-align:left">%</td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify;padding-bottom:2.5pt;text-indent:0pt">Expected volatility</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left"> </td> <td style="border-bottom:Black 2.5pt double;text-align:right">87</td> <td style="padding-bottom:2.5pt;text-align:left">%</td> </tr> <tr style="vertical-align:bottom"> <td style="text-align:justify;padding-bottom:2.5pt;text-indent:0pt">Risk-free interest rate</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left"> </td> <td style="border-bottom:Black 2.5pt double;text-align:right">4.08</td> <td style="padding-bottom:2.5pt;text-align:left">%</td> </tr> <tr style="vertical-align:bottom;background-color:rgb(204,238,255)"> <td style="text-align:justify;padding-bottom:2.5pt;text-indent:0pt">Expected term</td> <td style="padding-bottom:2.5pt"> </td> <td style="border-bottom:Black 2.5pt double;text-align:left"> </td> <td style="border-bottom:Black 2.5pt double;text-align:right">6.25 years</td> <td style="padding-bottom:2.5pt;text-align:left"> </td> </tr> </table> </div>

69.5

0.87

0.0408

P6Y3M

<div> <div> NOTE 6 – RELATED PARTIES: <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:18pt"></td> <td style="width:18pt">a.</td> <td style="text-align:justify">Related parties include the controlling shareholder and companies under his control, the board of directors and the executive officers of the Company.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:18pt"></td> <td style="width:18pt">b.</td> <td style="text-align:justify">As to options granted to executive officers, see note 5.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font:10pt Times New Roman, Times, Serif;margin-top:0pt;margin-bottom:0pt" width="100%"> <tr style="vertical-align:top"> <td style="width:18pt"></td> <td style="width:18pt">c.</td> <td style="text-align:justify">As of January 1, 2025, Mr. Mori Arkin, the Company’s Executive Chairman and controlling shareholder serves as the interim CEO of the Company. Mr. Arkin will not be entitled to any compensation for assuming this position. </td> </tr> </table> </div> </div>

<div> <div> NOTE 7 – SEGMENTS Our chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance based on consolidated net income which is consistent with the basis the consolidated statements of operations are presented. In addition, the CODM examines research and development expenses separately in order to make operating decisions. For additional information regarding research and development expenses, see note 4. </div> </div>

Investments in Corporate bonds rated A or higher.