7. Other Income, Net

Government Grants

In June 2026, the Company entered into a fixed amount subaward agreement (the “Subaward”) with The Regents of the University of California, on behalf of its San Diego campus (“UCSD”), under an Other Transaction Agreement awarded to UCSD by the Advanced Research Projects Agency for Health (“ARPA-H”), an agency of the U.S. Department of Health and Human Services, for the “Biomarkers and Biosensors for Safer Labor through Maternal-Fetal Real-Time Assessment” project under ARPA-H’s Making Obstetric Care Smart program. Under the Subaward, the Company performs biomarker discovery, targeted mass spectrometry assay development, data analysis, and related research and development activities and delivers reports and other deliverables to UCSD. The Subaward provides for funding of approximately $0.7 million for the first phase of the project, covering the period from June 16, 2026 to June 15, 2027, and funding of approximately $0.5 million for the second phase that is contingent on ARPA-H’s exercise of an option under its agreement with UCSD. The second phase is expected to run for an additional 12 months. As of September 30, 2026, the option for the second phase had not been exercised. Funding is received in cash in fixed milestone payments after the ARPA-H program manager accepts the related milestone report. The funding reimburses the Company’s budgeted research and development costs and includes no fee or profit, and the Company is not required to repay the funding except as described below.

Either party may terminate the Subaward on 30 days' written notice, in which case UCSD is obligated to pay the Company's allowable termination costs. The Subaward contains no provision for recapture of amounts paid to the Company based on the results of the research or on the Company's subsequent use of the results; however, under the terms of the ARPA-H agreement that apply to the Company, if intellectual property developed under the project is transferred to a foreign firm or institution without the Government's assent, the Company would be required to refund the federal funds paid for the development of that intellectual property. The Company generally retains title to inventions it makes under the project, subject to a government purpose license to the U.S. Government and has granted the U.S. Government rights in data generated under the project for government purposes.