Goodwill represents the excess of the purchase consideration over the fair value of the identifiable net assets acquired and is primarily attributable to expected synergies from combining the acquired operations with the Company's existing business, the value of the acquired assembled workforce, and other intangible benefits that did not qualify for separate recognition as identifiable intangible assets under ASC 805. The Company has only one reporting unit: drug development. Management tests annually whether goodwill has suffered any impairment. All goodwill exists within the drug development reporting unit.

The following table summarizes goodwill, net of the effect of foreign currency exchange adjustments and the goodwill impairment charge, for the twelve months ended June 30, 2026 and 2025, respectively:


Acquisition	June 30, 2026			June 30, 2025
Iliad Chemicals Pty Ltd acquisition	$	4,700,360		$	4,478,747
Eclipse Therapeutics, Inc. acquisition		4,159,862			4,159,862
	$	8,860,222		$	8,638,609
Goodwill impairment		(5,362,000	)		-
	$	3,498,222		$	8,638,609

Carrying amount at June 30, 2025				$	8,638,609
Foreign currency exchange differences					221,613
Goodwill impairment					(5,362,000	)
Carrying amount at June 30, 2026				$	3,498,222

Carrying amount at June 30, 2024				$	8,690,018
Foreign currency exchange differences					(51,409	)
Carrying amount at June 30, 2025				$	8,638,609

As stated in Note 2, Summary of Significant Accounting Policies, the Company tests the carrying amount of its goodwill for recoverability on an annual basis on June 30, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We monitor for indications of impairment throughout the year and perform qualitative and quantitative impairment tests as deemed necessary by management.

On July 1, 2026, Merck announced the cancellation of its Alzheimer’s trial of MK-1167. The trial was a Phase 2 study of MK-1167, an α7 nicotinic acetylcholine receptor positive allosteric modulator, as licensed from Neuphoria. Merck stopped its study after an interim analysis indicated the drug did not meet the efficacy criteria required to justify continuing. Management determined that the suspension of the MK-1167 trial by Merck represented an impairment indicator and moved to retain an independent third-party valuation expert to perform a quantitative analysis of the carrying value of our single reporting unit. The June 30, 2026 valuation applied a market approach with adjustments, as necessary, to market capitalization data for implied control premiums. The results of

that analysis concluded an impairment existed at June 30, 2026, primarily due to downward revisions of the expected future cashflows associated with the potential commercialization of Merck's MK-1167. Accordingly, the Company recorded a goodwill impairment charge of approximately $5.4 million at June 30, 2026.

The Company has no accumulated goodwill impairment losses as of June 30, 2026 except for the goodwill impairment recorded as a result of the Merck cancellation.