Note 2 – Liquidity and Going Concern

The Company’s financial statements have been prepared assuming that it will continue as a going concern, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. As reflected in the financial statements, the Company has an accumulated deficit at June 30, 2026 of approximately $157.1 million and a net loss of approximately $8.2 million and net cash used in operating activities of approximately $7.7 million for the year then ended. In addition, the Company has not generated any revenues and no revenues are anticipated in the foreseeable future. Since May 2005, the Company has been engaged exclusively in research and development activities focused on developing targeted antiviral drugs. The Company is in the regulatory drug development phase. It has not yet commenced any product commercialization. Such losses are expected to continue for the foreseeable future and until such time, if ever, as the Company is able to attain sales levels sufficient to support its operations. There can be no assurance that the Company will achieve or maintain profitability in the future.

As of June 30, 2026, the end of the reporting period, the Company had approximately $2.8 million in cash and cash equivalents. The Company’s liabilities at June 30, 2026 were approximately $1.2 million, including accounts payable of approximately $324 thousand payable to third parties, accounts payable to related parties of approximately $829 thousand, and accrued expenses of approximately $38 thousand. Management believes that the Company’s cash and cash equivalents balance of approximately $2.8 million at June 30, 2026, capital raised subsequent to June 30, 2026, of approximately $3.4 million net of the placement agent’s fees and offering expenses payable by the Company in a Registered Direct Offerings (“RDO”) of common stock, and the Company’s existing resources, including availability under its $3 million line of credit will not be sufficient to fund the Company’s planned operations and expenditures for at least 12 months from the date of the filing of this Form 10-K. As a result, substantial doubt exists about the Company’s ability to continue as a going concern.

The ability of the Company to continue as a going concern is dependent upon controlling its overall expenses and identifying and securing additional financing.

The Company believes that it has several important milestones, building on the successful Phase Ia/Ib human clinical trial for the Company’s broad-spectrum, antiviral drug NV-387 as described elsewhere, with the further progress of NV-387 into Phase II clinical trials. The Company is anticipating the Phase Ia/Ib clinical study report (final report or CSR) to be submitted soon. The Company plans on submitting the CSR to the regulatory authorities in India, which would be a significant milestone in the regulatory progress of NV-387.

Additional milestones include the completion of Phase II clinical trial of NV-387 as treatment for MPox, and attendant top-line readout, and the anticipated successful completion of the clinical trial, and initiation of Phase II Clinical Trials for treatment of BundibugyoEbola Virus. On or about August 4, 2026, the Company received regulatory approval to conduct this clinical trial from Autorité Congolaise de Réglementation Pharmaceutique (“ACOREP”), the pharmaceutical drug regulatory agency of the Democratic Republic of the Congo. The regulatory approval satisfied the conditions perfecting the Company’s financial commitment for the clinical trial.

Management believes that as these various milestones are achieved, the Company would likely experience improvement in the liquidity of the Company’s stock, and such improvement, if any, would enhance the Company’s ability to raise funds on the public markets at terms that may be favorable to the terms offered at present.

Management is actively exploring additional required funding through non-dilutive grants and contracts, partnering, as well as debt or equity financing pursuant to its plan. There is no assurance that the Company will be successful in obtaining sufficient financing on terms acceptable to us to fund continuing operations.

Management believes that it has on-going access to the capital markets including the “At-The-Market” (ATM) agreement with D. Boral Capital, the Sales Agent. Pursuant to an agreed provision in the RDO completed on July 27, 2026, the Company agreed to defer sales of its common stock through the ATM until September 26, 2026.

There can be no assurance that the Company’s plans will not change or that changed circumstances will not result in the depletion of its capital resources more rapidly than it currently anticipates. The Company will need to raise additional capital to fund its long-term operations and research and development plans including human clinical trials for its various drug candidates until it generates revenue that reaches a level sufficient to provide self-sustaining cash flows. There can be no assurance that the Company will be able to raise the necessary capital or that it will be on acceptable terms. The accompanying financial statements do not include any adjustments that may result from the outcome of such unidentified uncertainties.