Curanex Pharmaceuticals Inc

Description of Business

Curanex Pharmaceuticals Inc (the “Company”) was originally incorporated as Durand Damiel Health Inc. under the laws of the State of New York on June 1, 2018. The Company is headquartered in Jericho, NY, with an initial focus on research and development of health products and botanical medicines.

On November 9, 2023, the Company was rebranded as Curanex Pharmaceuticals Inc, and shifted its focus to discovering, developing, and commercializing innovative botanical drugs for treating major unmet medical needs in patients with inflammatory diseases.

On June 10, 2024, Curanex Pharmaceuticals Inc., a New York corporation (“Curanex NY”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Curanex Pharmaceuticals Inc, (the “Surviving Corporation”), a newly formed Nevada corporation and wholly owned subsidiary of Curanex NY. Pursuant to the Merger Agreement, on the same date, Curanex NY, as the parent in this transaction, merged with and into the Surviving Corporation (the “Reincorporation Merger”). Upon the consummation of the Reincorporation Merger, Curanex NY ceased its legal existence as a New York corporation, and the Surviving Corporation continued the business as the surviving corporation under the name “Curanex Pharmaceuticals Inc”.

The financial statements for the year ended 2024 reflect the impact of the Reincorporation Merger. In accordance with ASC 805 Business Combinations, the merger has been treated as a reorganization under common control. As such, the assets and liabilities have been transferred to the Surviving Corporation at their historical carrying amounts, and no gain or loss has been recognized in connection with the merger. The balance sheet now presents the Nevada corporation as the surviving entity, incorporating the combined assets and liabilities of the predecessor and the successor entities.

This merger did not result in any changes to the reported financial position or results of operations for prior periods, as the historical financial information of the Company has been carried forward to the Surviving Corporation. The impact of the merger on the financial statements is primarily legal and administrative, ensuring the continuity of the Company’s operations under the new jurisdiction without interruption. Consequently, the financial statements include all transactions and balances of both the original and the surviving entities, presented as if the merger had occurred at the beginning of the earliest period presented. This approach ensures consistency and comparability in the financial reporting of the Company’s ongoing business activities.

On August 27, 2025, the Company successfully completed its initial public offering (the “IPO”) and began trading on the Nasdaq Capital Market under the ticker symbol “CURX.”

Following the completion of our IPO, the Company incurred significant research and development (“R&D”) expense, totaling approximately $2,983,773 within the year ended December 31, 2025. These expenditures primarily related to FDA-mandated investigational new drug (“IND”)-enabling studies supporting programs in ulcerative colitis, atopic dermatitis, rheumatoid arthritis, gouty arthritis, and diabetic foot. R&D activities during the period included good laboratory practice (“GLP”) toxicology and pharmacokinetic/bioanalytical studies, chemistry, manufacturing, and controls (“CMC”) work involving formulation, stability, and method validation, as well as fees to Contract Research Organizations (“CROs”) and Contract Development and Manufacturing Organizations (“CDMOs”). The increase in R&D expense compared to prior periods reflects the progression of multiple investigational programs through preclinical development toward IND submission and future clinical evaluation, consistent with the Company’s development strategy following the IPO.

On April 2, 2026, the Company expanded its drug development pipeline by adding cancer cachexia as a new core indication, supplementing its existing six core therapeutic areas. Cancer cachexia is a severe, cancer-related wasting syndrome with high prevalence among advanced cancer patients, limited treatment alternatives and no approved therapies in the United States, representing substantial unmet medical needs and considerable long-term commercial potential. While continuing to advance its lead preclinical candidate Phyto-N and other pipeline assets targeting inflammatory, metabolic and physical decline-related diseases, the Company’s strategic expansion into cancer cachexia further diversifies its product portfolio, aligns with its long-term therapeutic development focus, and strengthens its overall positioning as an emerging biotechnology company.

Basis of Accounting

The accompanying unaudited interim financial statements of the Company have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows for the interim periods presented have been included. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full fiscal year or any future period.

Use of Estimates

The preparation of the Company’s unaudited interim financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these interim financial statements are consistent with those described in the Company’s most recent annual financial statements.

These estimates and assumptions are based on historical experience and other factors that management believes are reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results could differ from those estimates, and such differences may be material to the financial statements.

Management evaluates its estimates on an ongoing basis. Changes in estimates are recognized in the period in which they become known and, if applicable, in future periods.

Going Concern

At the end of each reporting period, management exercises judgment in assessing the Company’s ability to continue as a going concern in accordance withASC 205-40, Presentation of Financial Statements—Going Concern, by reviewing the Company’s performance, resources, and future obligations. This assessment considers conditions and events that are known and reasonably knowable as of the date the financial statements are issued, and involves critical judgments regarding the Company’s short and long-term operating budgets, expected profitability, investment and financing activities, and strategic planning.

The Company did not generate operating revenue during the recent several years and has incurred recurring net losses and negative cash flows from operations. For the six months ended June 30, 2026, the Company incurred a net loss of $6,441,198 and used cash in operating activities of approximately $2.03 million. As of June 30, 2026, the Company had cash and cash equivalents of $2,938,463 and an accumulated deficit of $11,288,753.

The Company’s operating expenses for the six months ended June 30, 2026 were partially funded through the utilization of prepaid research and development balances, which declined from $6,166,294 as of December 31, 2025 to $1,819,177 as of June 30, 2026. As these prepaid balances are consumed, the Company expects its cash used in operating activities to increase materially. The Company further expects research and development expenditures to increase in connection with its planned Investigational New Drug application submission and subsequent clinical trial activities.

Based on its current operating plan, the Company does not expect its existing cash and cash equivalents to be sufficient to fund operations for at least twelve months from the date these unaudited interim financial statements are issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

Management’s plans to address these conditions include raising additional capital through the issuance of equity or debt securities, pursuing strategic collaborations or out-licensing arrangements for its product candidates, and reducing or deferring discretionary operating and development expenditures. There can be no assurance that the Company will be able to obtain additional financing on acceptable terms, or at all. The Company’s common stock is currently subject to a Nasdaq minimum bid price deficiency, which may adversely affect its ability to raise capital. Because these plans are not considered probable of being effectively implemented within the meaning of ASC 205-40, they do not alleviate the substantial doubt.

The accompanying unaudited interim financial statements have been prepared assuming the Company will continue as a going concern and do not include any adjustments to the carrying amounts or classification of assets and liabilities that might result from the outcome of this uncertainty.

Cash

The Company maintains balances with multiple financial institutions, with balances periodically exceeding the Federal Deposit Insurance Corporation (FDIC) insurance limit of $250,000 per depositor, per insured bank, for each account ownership category. The management monitors the cash balances in the operating accounts and adjusts the cash balances as appropriate; however, these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets. To date, the Company has experienced no loss or lack of access to cash in the operating accounts.

Basic and Diluted Net Loss per Common Share

The Company computes loss per share in accordance with ASC 260, Earnings per Share, which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. During the six months ended June 30, 2026, and 2025, the Company had no potential dilutive instruments and accordingly basic loss and diluted loss per share are the same.

Initial Public Offering

The Company completed its IPO of 3,750,000 shares of its common stock, par value $0.0001 per share, at a public offering price of $4.00 per share. This offering generated gross proceeds of $15.0 million before underwriting discounts, commissions, and other offering expenses.

In connection with the IPO, total offering costs were approximately $2.12 million, consisting of $1.41 million in underwriting discounts and commissions and $0.71 million of other offering-related expenses (including legal, accounting, and filing fees). The Company had previously recorded these other offering costs as deferred IPO costs prior to the effectiveness of the registration statement. Upon the closing of the IPO, all deferred costs were reclassified and recorded as a reduction to additional paid-in capital (“APIC”) within stockholders’ equity.

After deducting total underwriting discounts, commissions, and offering expenses, the Company received net cash proceeds of approximately $13.24 million from its IPO. Certain offering costs had been paid by the Company prior to the completion of the IPO and were recorded as deferred offering costs on the consolidated balance sheets prior to being reclassified against additional paid-in capital upon the consummation of the IPO.

Over-Allotment Option

On September 12, 2025, the underwriters exercised their option to purchase an additional 562,500 shares of the Company’s common stock at the same public offering price of $4.00 per share, resulting in gross proceeds of $2.25 million. The Company incurred $0.18 million in underwriting discounts and commissions related to the option exercise. After deducting these offering costs, the Company received net proceeds of $2.07 million.

All costs directly attributable to the over-allotment exercise were likewise recorded as a reduction of APIC within stockholders’ equity, consistent with the accounting for the initial closing.

Fair Value of Financial Instruments

ASC 820 Fair Value Measurements and Disclosures establishes a framework for all fair value measurements and expands disclosures related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

The carrying amounts of cash and accrued liabilities approximate fair value because of the short-term nature of these items.

Leases & Right of Use Assets

The Company adopted ASC 842 Leases on January 1, 2022. At inception of a contract, the Company assesses whether a contract is, or contains, a lease. Contracts that convey the right to control the use of an identified asset for a period of time in exchange for consideration are accounted for as leases giving rise to right-of-use assets.

At the commencement date, a right-of-use asset is measured at cost, where cost comprises: (a) the amount of the initial measurement of the lease liability; (b) any lease payments made at or before the commencement date, less any lease incentives received; (c) any initial direct costs incurred by the Company; and (d) an estimate of costs to be incurred by the Company in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories.

A lease liability is initially measured at the present value of the unpaid lease payments. Subsequently, the Company measures a lease liability by: (a) increasing the carrying amount to reflect interest on the lease liability; (b) reducing the carrying amount to reflect the lease payments made; and (c) re-measuring the carrying amount to reflect any reassessment or lease modifications, or to reflect revised in-substance fixed lease payments. Each lease payment is allocated between repayment of the lease principal and interest. Interest on the lease liability in each period during the lease term is allocated to produce a constant periodic rate of interest on the remaining balance of the lease liability. Except where the costs are included in the carrying amount of another asset, the Company recognizes in profit or loss (a) the interest on a lease liability and (b) variable lease payments not included in the measurement of a lease liability in the period in which the event or condition that triggers those payments occurs. The Company subsequently measures a right-of-use asset at cost less any accumulated amortization and any accumulated impairment losses; and adjusted for any re-measurement of the lease liability. Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term.

Research and Development Costs

The Company accounts for research and development (“R&D”) costs in accordance with ASC 730, Research and Development. R&D costs are expensed as incurred unless they represent nonrefundable advance payments for goods or services to be received in the future. Nonrefundable advance payments to third parties—such as Contract Research Organizations (“CROs”), Contract Development and Manufacturing Organizations (“CDMOs”), clinical sites, and other service providers—are recorded as prepaid expenses and recognized in R&D expense as the related services are performed, generally over the contractual period of performance.

R&D expense primarily includes employee-related costs (salaries, benefits, and stock-based compensation) for personnel engaged in R&D; fees to CROs, CDMOs, consultants, and other third parties; clinical trial and preclinical study costs; and costs to manufacture and test preclinical and clinical materials. The Company records accruals for services performed but not yet invoiced based on estimates of work completed, patient enrollment/visits, manufacturing progress, and data from vendors. Up-front set-up or activation fees under executory service arrangements are deferred and recognized over the expected period of performance. Materials, equipment, and licenses with no alternative future use are expensed when incurred; items with alternative future use are capitalized and recognized in accordance with the applicable guidance. Prepaid R&D balances are evaluated for recoverability and adjusted for changes in project scope, timing, or cancellations.

Stock-Based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718,Compensation—Stock Compensation. Share-based payment awards granted to employees, non-employee directors and non-employee service providers are measured at the grant-date fair value of the award and recognized as compensation expense over the requisite service period, which is generally the vesting period. Awards that are fully vested on the grant date are expensed in full at that date. The fair value of awards of common stock and restricted stock is determined by reference to the closing price of the Company’s common stock as reported on Nasdaq on the grant date. The fair value of stock options, if granted, is estimated using the Black-Scholes option-pricing model, which requires management to make assumptions regarding the expected term, expected volatility, risk-free interest rate and expected dividend yield. Because the Company has limited trading history, expected volatility is estimated by reference to the historical volatility of a group of comparable publicly traded companies. The Company has elected to account for forfeitures as they occur. Stock-based compensation expense is classified within research and development expense or general and administrative expense based on the function of the recipient’s services.

Income Taxes

The Company accounts for income taxes under ASC 740, Income Taxes. This standard requires the Company to use the asset and liability method, which involves making estimates and assumptions and exercising judgment regarding the carrying values of assets and liabilities. These values are subject to inherent accounting estimates, the interpretation of income tax legislation across various jurisdictions, expectations about future operating results, the timing of reversal of temporary differences, and potential audits of income tax filings by tax authorities.

Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years when those temporary differences are expected to be recovered or settled. The impact of changes in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to amounts expected to be realized.

When the Company incurs losses for income tax purposes, it assesses the probability of future taxable income based on budgeted forecasts. These forecasts are adjusted to account for non-taxable income and expenses and specific rules on the use of unused credits and tax losses. If the forecasts indicate that sufficient future taxable income will not be available to deduct the temporary differences, a deferred tax asset is not recognized for all deductible temporary differences.

Related Party Transactions

The Company identifies and accounts for related party transactions, disclosing them in accordance with ASC 850, Related Party Disclosures, and other relevant ASC standards. Parties are considered related to the Company if they, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include the principal owners of the Company, its management, members of the immediate families of the principal owners and management, and other parties with which the Company may engage in transactions if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests.

Segment Reporting

Operating segments are defined as components of an entity where discrete financial information is evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to allocate resources and in assessing performance. The Company’s Chief Executive Officer is its CODM. The Company’s CODM uses GAAP financial statements for the purposes of making operating decisions, allocating resources and evaluating financial performance. As such, the Company has determined that it operates inone operating andone reportable segment. The Company’s long-lived assets are entirely based in the United States.

Recent Accounting Pronouncements

The Company is classified as an “emerging growth company” (EGC) under the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). This classification allows EGCs to delay adopting new or revised accounting standards issued after the enactment of the JOBS Act until these standards apply to private companies. The Company has chosen to delay the adoption of these new or revised accounting standards.

The Company is classified as a “smaller reporting company” (SRC) under the Securities and Exchange Commission (SEC) regulations. This classification allows SRCs to provide scaled disclosures in their SEC filings, including reduced financial statement and executive compensation disclosure requirements. The Company has elected to take advantage of these scaled disclosure requirements to simplify its reporting processes.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The Company adopted this ASU on a prospective basis effective January 1, 2025. Refer to Note 5, Income Taxes for the inclusion of new disclosures required.

The Company evaluated the impact of ASU 2024-03,Disaggregation of Income Statement Expenses, issued by the Financial Accounting Standards Board (“FASB”) as issued by the FASB in November 2024. The update requires additional disclosures to provide disaggregated information about certain expense captions presented in the income statement, including, among other items, inventory, employee compensation, depreciation, and amortization, to enhance transparency into the nature of expenses. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this standard will have on its financial statement disclosures. While the standard is not expected to have an impact on the Company’s results of operations, financial position, or cash flows, it is expected to result in expanded disclosures upon adoption.

Apart from as mentioned above, management does not believe that other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company’s balance sheets, statements of operations, or cash flows.

A summary of accrued expenses is as follows:

A summary of prepaid expenses is as follows:

On January 1, 2025, the Company assumed an office lease from Duraviva Pharma Inc. (“Duraviva”), a New York corporation under common control, through a lease assignment agreement. Thelease term extends through August 31, 2026. The Company classified the lease as an operating lease. Upon adoption of ASC 842, the Company recognized right-of-use asset and corresponding lease liability for its operating lease.

During the fourth quarter of 2025, the Company entered into lease agreements for three motor vehicles with non-cancelable lease terms ranging from 36 to 51 months.

The following summarizes information about the Company’s leases as of June 30, 2026 and December 31, 2025.

Due to the Company’s net losses and the valuation allowance provided on the related deferred tax assets, there were no provisions for income taxes for the six months ended June 30, 2026 and 2025.

The components of income tax provision (benefit) for the six months ended June 30, 2026 and 2025 are as follows:

The following table presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate for the six months ended June 30, 2026 and 2025:

Deferred income tax assets as of June 30, 2026 and December 31, 2025, are as follows:

In assessing the realization of deferred tax assets, management evaluates whether it is more likely than not that some or all of these assets will not be realized. The ultimate realization of deferred tax assets depends on generating future taxable income during the periods when these temporary differences become deductible.

Based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be realizable. Accordingly, the Company has applied a full valuation allowance against its net deferred tax assets as of June 30, 2026 and December 31, 2025. The net change in the total valuation allowance between June 30, 2026, and December 31, 2025, was an increase of $1,354,708.

The Company is subject to U.S. federal and state income tax examinations by the Internal Revenue Service (IRS) and relevant state tax authorities. The Company is incorporated in the state of Nevada, which does not impose a corporate income tax.

The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of June 30, 2026, and December 31, 2025, the Company did not have any significant uncertain tax positions or unrecognized tax benefits. Additionally, as of June 30, 2026, and December 31, 2025, the Company has federal net operating loss carryforwards of $11,285,765 and $4,847,550, respectively, for tax purposes. These net operating loss carryforwards may be carried forward indefinitely; however, their utilization may be subject to limitations under Section 382 of the Internal Revenue Code in the event of a change in ownership.

In January 2025, Duraviva also assigned its office lease to the Company. The terms of the lease, including the original lease end date, remained unchanged upon reassignment. The Company accounted for the lease under ASC 842 as an operating lease. Please refer to Note 4 Leases.

In February and May 2025, the Company received two $200,000 loans from an existing shareholder to support ongoing costs related to its initial public offering. The loans accrue simple interest at an annual rate of 4.34%, with both principal and interest due at maturity in February and May 2027.

In September 2025, following the completion of the Company’s IPO, the shareholder loans were fully repaid, including all accrued interest. Total interest paid upon settlement amounted to $8,537. As a result of the repayment, there were no outstanding related-party loan balances as of June 30, 2026.

Common Stock

The Company is authorized to issue 475,000,000 shares of common stock, par value $0.0001 per share. Each share entitles the holder to one vote on matters submitted to stockholders and to receive dividends as and if declared by the Board of Directors.

During the year of 2025, the Company completed the following equity issuances in connection with its initial public offering and related activities:

Following these issuances, the Company had 28,340,812 shares of its common stock issued and outstanding as of December 31, 2025, including an aggregate of 4,340,812 shares of common stock issued during the quarter ended September 30, 2025.

On March 18, 2026, the Company issued an aggregate of 24,000 shares of Common Stock to Dr. Huijuan Zhong as compensation for services. These shares were issued in reliance on exemption from registration requirements under Section 4(a)(2) of the Securities Act, as transactions by an issuer do not involve any public offering and are subject to contractual transfer restrictions until 12 months following the Company’s initial public offering. Following this issuance, the Company had 28,364,812 shares of common stock issued and outstanding as of June 30, 2026. For further information regarding the measurement and recognition of the related stock-based compensation, see Note 8,Stock-Based Compensation.

Subscriptions Received – Shares to be Issued

In 2019, the Company received $200,000 in cash from an existing investor for a subscription to common stock representing 0.1% of the Company’s then-anticipated total issued and outstanding shares upon completion of the IPO. This amount was recorded as “common stock to be issued” within stockholders’ equity and remained outstanding as of December 31,2024.

Following the successful completion of the IPO, the Company issued 28,312 shares of common stock during the quarter ended September 30, 2025 to settle this subscription in full. As of June 30, 2026, there wereno remaining shares or amounts recorded as “common stock to be issued.”

Preferred Stock

The Company is authorized to issue 25,000,000 shares of preferred stock at $0.0001 per share. The Company’s Board of Directors also has the authority to issue additional preferred stock in one or more classes or series.

On June 14, 2024, the Company’s Board of Directors approved the issuance of 1,000,000 shares of Series A Super Voting Preferred Stock (“Series A Preferred Stock”) at the par value of $0.0001 per share. These shares grant the holders 40% of the total voting power of the Company’s equity voting stock. Holders of the Series A Preferred Stock do not possess any rights to dividends.

No shares of preferred stock were issued during the three and six months ended June 30, 2026.

2026 Equity Incentive Plan

On May 31, 2026, the Company’s Board of Directors adopted the Curanex Pharmaceuticals Inc 2026 Equity Incentive Plan (the “2026 Plan”), which was approved by the Company’s stockholders on June 11, 2026. The 2026 Plan permits the grant of stock options, restricted stock, restricted stock units and other stock-based awards to employees, directors and consultants of the Company. An aggregate of 5,700,000 shares of common stock, par value $0.0001 per share, are reserved and available for issuance under the 2026 Plan, representing approximately 20.1% of the shares of common stock issued and outstanding as of June 30, 2026. The 2026 Plan is administered by the Board of Directors, or a committee designated by the Board, which determines the recipients, types, terms, vesting conditions and, where applicable, exercise prices of awards. The number of shares reserved under the 2026 Plan is subject to proportionate adjustment in the event of a stock split, reverse stock split, stock dividend, recapitalization or similar change in the Company’s capitalization.

On July 21, 2026, the Company filed a Registration Statement on Form S-8 with the Securities and Exchange Commission registering 3,000,000 of the 5,700,000 shares of common stock reserved for issuance under the 2026 Plan, representing approximately 10.58% of the shares of common stock issued and outstanding as of the date of filing. The Registration Statement became effective upon filing in accordance with Rule 462 under the Securities Act of 1933, as amended. The remaining 2,700,000 shares reserved under the 2026 Plan have not been registered.

No awards were granted under the 2026 Plan during the three and six months ended June 30, 2026, andno shares of common stock had been issued under the 2026 Plan as of June 30, 2026. Accordingly, no compensation cost related to the 2026 Plan was recognized for the three and six months ended June 30, 2026, and there wasno unrecognized compensation cost related to the 2026 Plan as of June 30, 2026.

Other Stock-Based Compensation

On March 18, 2026, the Company issued an aggregate of 24,000 shares of common stock to Dr. Huijuan Zhong as additional compensation pursuant to an employment arrangement entered into in June 2024 (see Note 7, Shareholders’ Equity). Following the Company’s initial public offering, the Company issued the full 24,000 shares in a single issuance, and no further service-based forfeiture conditions remained after issuance. All shares were vested upon issuance. The shares were valued at $0.408 per share, the closing price of the Company’s common stock on March 17, 2026 as reported on Nasdaq. The Company recognized stock-based compensation expense of $nil and $9,792 within general and administrative expenses for the three and six months ended June 30, 2026, respectively, and $nil for the three and six months ended June 30, 2025.

Other than disclosed in Note 8, “Stock-Based Compensation”, the Company has evaluated subsequent events through the date these unaudited interim financial statements were issued and determined that, no subsequent events requiring adjustment to or disclosure in the financial statements were identified.