In September 2026, the TuHURA Biosciences, Inc. 2026 Inducement Equity Incentive Plan (the "2026 Inducement Plan" was adopted by the Board of Directors without shareholder approval pursuant to Rule 5635(c)(4) under the Nasdaq Stock Market LLC listing rules. The Company has not issued shares in the 2026 Inducement Plan. As of September 30, 2026, there were 5,000,000 shares available for future grants under the 2026 Inducement Plan.

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of grant. The assumptions employed in the calculation of the fair value of share-based compensation expense were calculated as follows for the nine months ended September 30, 2026 and 2025:


	2026		2025
Common stock fair value (weighted-average)	$	1.33	$	3.39
Risk free interest rate	3.82% - 4.04%		4.04% - 4.66%
Expected dividend yield	0%		0%
Expected term	6.0 years		6.0 years
Expected stock volatility	101.2% - 105.6%		101.9% - 103.0%

Below is a summary of stock option activity for the nine months ended September 30, 2026:


				Weighted		Weighted
	Number			Average		Average
	of options			Exercise Price		Contractual Life
Outstanding at December 31, 2025		18,031,425		$	2.35	8.91 years

Forfeited and cancelled		(4,935,510	)	$	2.35
Exercised		-		$	0.00
Granted		4,103,996		$	1.33
Outstanding at September 30, 2026		17,199,911		$	2.10	8.51 years
Exercisable at September 30, 2026		3,011,065		$	3.85	5.88 years

Options outstanding had an intrinsic value of approximately $11,000,000 and $0 as of September 30, 2026 and December 31, 2025, respectively. As of September 30, 2026, there was approximately $13,000,000 of unrecognized stock compensation, which will be recognized over the next three years.

Total stock-based compensation expense for the nine months ended September 30, 2026 and 2025 was allocated as follows:


	2026		2025
General and administrative	$	2,234,447	$	1,508,919
Research and development		4,128,245		2,768,344
Total stock-based compensation expense	$	6,362,692	$	4,277,263