In October 2025, Management committed to a plan to discontinue or pause, with respect to BNC210 in SAD and PTSD, its research and development activities while it seeks to identify a partner with which to execute a strategic merger and/or such other transaction(s), if any, for the benefit of existing shareholders of Neuphoria. As part of the restructuring initiative, the Company terminated its facility leases, wrote off the remaining carrying value of the right-of-use asset, derecognized the associated operating lease liability, and terminated substantially all of its employees. A liability equivalent to the derecognized lease liability has been included in Accrued restructuring expenses. The write-offs are included in restructuring costs in the consolidated statements of operations and other comprehensive income (loss) for the twelve months ended June 30, 2026.

Included in total restructuring costs are the following expenses:


	Twelve Months Ended June 30, 2026
Employee termination costs	$	1,411,955
Impairment of right-of-use asset		47,608
Other restructuring costs		437,994
Refundable credits on contract terminations		(618,971	)
Total restructuring costs	$	1,278,586

Restructuring reserves included in accrued expenses and other current liabilities on the consolidated balance sheet are as follows:


	Restructuring Costs
Restructuring liability at June 30, 2025	$	-
Restructuring costs		1,278,586
Restructuring payments		(1,220,255	)
Restructuring liability at June 30, 2026	$	58,331