JUPITER NEUROSCIENCES, INC.
For the period ended Jun 30, 2026. Filed Aug 14, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 14, 2026
JUNS$2.20+3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0001493152-26-023164
Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-14.
0001493152-26-038463
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 66 previous paragraphs and 88 current paragraphs.
42 unchanged; 17 reworded; 25 added; 7 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 14 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
On May 19, 2026, the Company and PharmAla Biotech Holdings Inc. (“PharmAla”) executed a non-binding summary of proposed terms (the “Term Sheet”) describing a potential licensing transaction pursuant to which the Company would acquire from PharmAla exclusive and perpetual U.S. rights to ALA-002, a proprietary, next-generation MDMA formulation, together with related intellectual property, regulatory materials, tangible inventory, and certain contractual and regulatory rights (collectively, the “Assets”), subject to the Company’s compliance with the definitive agreements. PharmAla is a Canadian biotechnology company engaged in the research, development and GMP production of MDXX-class psychedelics, including clinical-grade MDMA and novel analogues, and owns a proprietary investigational compound known as ALA-002.
Current report
On July 20, 2026, the Company and PharmAla entered into a definitive Strategic Asset License Agreement (the “License Agreement”). Pursuant to the License Agreement, PharmAla granted the Company an exclusive royalty-bearing, sublicensable (subject to restrictions on sublicenses to persons engaged in a competing business without PharmAla’s prior written consent) license under PharmAla’s licensed intellectual property (including patents, know-how and regulatory documentation) to develop, manufacture and commercialize products incorporating or derived from ALA-002 (each, a “Licensed Product”), for all human therapeutic, prophylactic, palliative, diagnostic and supportive uses, solely in the United States of America, including its territories, possessions and commonwealths, and including Puerto Rico (the “Territory”). The license also permits us to manufacture Licensed Products outside the Territory solely for import and sale into the Territory. PharmAla retains all rights to ALA-002 and the licensed intellectual property outside the Territory. In connection with the license, PharmAla has agreed to make available to the Company certain licensed know-how, manufacturing and analytical information, and regulatory documentation reasonably necessary or useful for the Company to develop, manufacture and commercialize Licensed Products in the Territory.
Current report
The Company will pay PharmAla an aggregate upfront payment of $3,333,333 (the “Upfront Payment”), comprised of (i) $1,500,000 in cash (the “Initial Cash Consideration”), consisting of a $600,000 escrow deposit made at the time of entering into the non-binding term sheet on May 19, 2026 and $900,000 paid on signing of the definitive agreements on July 20, 2026, and (ii) $1,833,333 payable in shares of common stock (the “Equity Consideration”). We may elect to pay all or any portion of the Equity Consideration in cash. The Initial Cash Consideration is payable as a condition precedent to the effective date of the License Agreement. The shares of common stock will be issued no later than 30 days after the effective date based on the volume-weighted average price (“VWAP”) of shares of common stock for the 20 consecutive trading days ending on the trading day immediately preceding the issuance date, subject to a Nasdaq 19.99% exchange cap unless stockholder approval is obtained. The License Agreement includes a VWAP reset mechanic pursuant to which if the VWAP during the pricing window is less than the initial issuance price, the Company is required to issue additional shares (or, if the price falls below the Equity Floor Price, pay cash) to ensure PharmAla receives the full value of the Equity Consideration (the “VWAP Reset Mechanic”). The shares are subject to a 120-day lock-up period and registration rights, including our obligation to file a registration statement within 30 days following the issuance date. The Equity Consideration has not been issued as of the date of this filing.
Current report
The Company will pay PharmAla development milestone payments totaling up to $23,333,333, comprised of (i) $3,333,333 upon first dosing of the first patient in a Phase 3 clinical trial of a Licensed Product in the Territory (payable fifty percent (50%) in cash and fifty percent (50%), at PharmAla’s election, in cash or common stock) and (ii) $20,000,000 upon first FDA approval of an NDA for a Licensed Pr6oduct (payable in cash). Each development milestone payment is payable only once.
Current report
The Company will pay PharmAla commercialization milestone payments totaling up to $73,333,333, comprised of (i) $10,000,000 upon first achievement of $333,333,333 in net sales in the Territory, (ii) $30,000,000 upon first achievement of $1,000,000,000 in net sales in the Territory, and (iii) $33,333,333 upon first achievement of $2,000,000,000 in net sales in the Territory. Each commercialization milestone payment is payable only once.
Current report
Beginning with the calendar quarter in which the third commercialization milestone becomes payable, the Company will pay PharmAla a royalty of 3% of net sales of Licensed Products in the Territory during the term of the License Agreement.
Current report
The Company has the exclusive right and obligation to develop Licensed Products in the Territory and must use commercially reasonable efforts, at its sole cost and expense, to develop, obtain regulatory approval for, and commercialize Licensed Products in the Territory, including conducting clinical trials, making regulatory filings, and achieving first commercial sale within six months following NDA approval. The Company must also deliver quarterly progress reports to PharmAla during the development period. The Company has sole and exclusive responsibility for manufacturing ALA-002 and Licensed Products for use in the Territory. At our request, PharmAla will arrange supply of GMP-grade ALA-002 drug substance and/or drug product under a separate supply agreement to be negotiated on customary terms.
Current report
Unless earlier terminated, the License Agreement continues in perpetuity. Either party may terminate the License Agreement for an uncured material breach after a 90-day cure period (five Business Days for certain critical payment obligations, including the Upfront Payment, cash consideration payable as a condition to the effective date, and amounts payable in connection with the VWAP Reset Mechanic or the Nasdaq exchange cap, and 30 days for all other payment obligations). Either party may terminate immediately upon the other party’s insolvency or bankruptcy. PharmAla may terminate upon 90 days’ notice if the Company fails to achieve development milestones by applicable deadlines (subject to specified extensions) and such failure remains uncured. The Company may not consummate a change of control involving a competing business without PharmAla’s prior written consent, and PharmAla may terminate immediately if such a transaction is consummated without consent. We may terminate for convenience upon at least 180 days’ prior written notice, without relieving accrued payment obligations.
Current report
As of June 30, 2026, the definitive agreement had not yet been executed, and the $600,000 escrow deposit was recorded as a noncurrent asset in the accompanying condensed balance sheet. No assets or liabilities associated with the proposed acquisition, other than the escrow deposit, were recognized as of June 30, 2026.
Current report
On June 5, 2026, the Company amended Alison Silva’s employment agreement in connection with her appointment as Chief Operating Officer and President, increasing her annual base salary from $315,000 to $340,200. In connection with her appointment, the Board also approved a one-time grant of options to purchase 8,000 shares of the Company’s common stock under the 2025 Equity Incentive Plan.
Current report
General and administrative expenses were $2,163,656 for the three months ended June 30, 2026 compared to $1,505,432 for the three months ended June 30, 2025, representing an increase of $658,224, or 44%. The increase is due to increases in payroll and consulting expenses of $648,734 and investor and public relation expenses of $33,519, offset by decreases in Nugevia related expenses of $4,826 and other expenses of $19,203.
Current report
Interest income was $10,068 for the three months ended June 30, 2026, compared to $13,050 for the three months ended June 30, 2025, representing a decrease of $2,982, or 23%. The decrease was primarily attributable to lower average cash balances maintained in the Company’s money market accounts during the 2026 period.
Current report
Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025
Current report
Research and Development Expenses
Current report
R&D expenses were $1,011,402 for six months ended June 30, 2026 compared to $1,226,193 for six months ended June 30, 2025, representing a decrease of $214,791, or 18%. The decrease in research and development expenses was primarily driven by decreases in clinical trial expenses of $112,383, payroll and consulting expenses of $98,906, and other expenses of $9,528, offset by increases in meetings and conferences expenses of $6,026.
Current report
General and Administrative Expenses
Current report
General and administrative expenses were $3,729,897 for the six months ended June 30, 2026 compared to $2,576,690 for the six months ended June 30, 2025, representing an increase of $1,153,207, or 45%. The increase is due to increases in payroll and consulting expenses of $808,277, Nugevia related expenses of $179,999, investor and public relations expenses of $116,901 and other expenses of $48,030.
Current report
Interest Income
Current report
Interest Expense
Current report
Interest expense was $209,262 for the six months ended June 30, 2026, compared to $2,364 for the six months ended June 30, 2025, representing an increase of $206,898, or 8,752%. The significant increase in the current period is due to interest related to the convertible promissory notes.
Current report
On May 20, 2026, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain investors (the “Investors”), pursuant to which the Company agreed to issue and sell, in a registered direct offering by the Company directly to the Investors 95,238 shares of common stock at a price of $21.00 per share, for aggregate gross proceeds to the Company of approximately $2.0 million before deducting the placement agent’s fees and related offering expenses. The Shares were offered by the Company pursuant to a Registration Statement on Form S-3 (File No. 333-295085), which was filed with the Securities and Exchange Commission (the “Commission”) on April 16, 2026, and was declared effective by the Commission on April 24, 2026.
Current report
On August 6, 2026, the Company effected a 1-for-75 Reverse Stock Split. The Reverse Stock Split did not generate any proceeds or change the Company’s aggregate stockholders’ deficit. The Reverse Stock Split was intended to assist the Company in seeking to regain compliance with Nasdaq’s minimum bid price requirement; however, it does not assure continued listing and does not, by itself, address the separate market value of listed securities requirement.
Current report
Management’s plans to address the Company’s liquidity needs include raising additional capital through the Company’s existing Standby Equity Purchase Agreement (“SEPA”) and, as necessary, through other equity or debt financing transactions. As of June 30, 2026, approximately $17.2 million of the $20.0 million aggregate commitment under the SEPA remained available; however, the Company’s ability to access this amount is subject to the availability of shares registered for resale, applicable contractual and regulatory limitations, prevailing market conditions and the trading price and trading volume of the Company’s common stock. On July 7, 2026, the SEC declared effective the Company’s registration statement on Form S-1 registering for resale by Yorkville up to an additional 213,333 shares of common stock that may be issued under the SEPA. The Company’s historically low trading volume may limit the amount and timing of proceeds that can realistically be raised under the SEPA, and therefore the Company cannot presently conclude that the entire remaining commitment will be available when needed. Management intends to utilize available capacity under the SEPA during the third and fourth quarters of 2026, subject to market conditions and applicable limitations, while concurrently evaluating additional financing alternatives to fund the Company’s operations and development activities. There is no assurance that the Company will be able to effect transactions on commercially reasonable terms, if at all.
Current report
Net cash provided by financing activities was $1,459,554 for the six months ended June 30, 2026, compared to no cash provided by or used in financing activities for the six months ended June 30, 2025. The increase in net cash provided by financing activities was primarily attributable to $1,860,000 from the Company’s offering and $5,507 of proceeds from the exercise of stock options, partially offset by $405,953 of payments on convertible notes payable.
Current report
Related Party Transactions
Removed paragraphs (7)
Previous report
General and administrative expenses were $1,566,241 for the three months ended March 31, 2026 compared to $1,071,258 for the three months ended March 31, 2025, representing an increase of $494,983, or 46%. The increase was primarily attributable to increases of $217,899 in payroll and consulting expenses, $184,825 in expenses related to Nugevia, $83,382 in investor and public relations expenses, and $5,316 in other expenses.
Previous report
For the three months ended March 31, 2026, net cash provided by financing activities consisted of proceeds from the exercise of stock options of $5,507. For the three months ended March 31, 2025, there were no cash flows from financing activities.
Previous report
Asian Business Development Activities
Previous report
The Company initiated business development activities in the Asian region beginning in October of 2021. The Company has a strong strategic interest in accelerating the drug development and potential commercialization efforts of JOTROL™ in this market. Our Chairman & CEO, Christer Rosén, presented in person, our company’s status and pipeline at the BIOHK 2023 in Hong Kong in September of 2023. The presentation led to several follow-on meetings, and we have recently agreed to service agreements in the areas of business development, CMC (Chemistry, Manufacturing, and Controls), regulatory affairs and clinical trial management. These agreements are further described in the section “Other Material Agreements”. The Asian market is very large and hard to penetrate for a small company and we believe that our strategy with these agreements is cost effective and have the possibility to accelerate an out-licensing deal in the Southeast Asian territories. However, there are no assurances that this approach will be successful.
Previous report
The agreements executed are very similar in nature that include an equity investment in our company by the other party and in turn the Company issued equity in form of shares of common stock, in lieu of cash, for 3 years of services from each company.
Previous report
The Company believes these agreements to be favorable for both parties based on the cash position of the company and the need for these activities to be executed and enabling the possibility of a one or more out-licensing agreements in the territory.
Previous report
Notes Payable to Related Parties and Other Transactions
Reworded paragraphs (17)
Previous wording
Unless the context otherwise requires references to, “JNS,” “we,” “us,” “our,” or the “Company” refers to Jupiter Neurosciences, Inc.
Current wording
Unless the context otherwise requires references to, “JUNS,” “we,” “us,” “our,” or the “Company” refers to Jupiter Neurosciences, Inc.
Previous wording
The Company completed preclinical studies at the University of Miami for Parkinson’s Disease in 2021. These studies used a validated mouse model to mimic human disease characteristics. JOTROL™ demonstrated consistent improvements in motor coordination, endurance, and strength across multiple endpoints in a validated Parkinson’s disease model, with statistically significant benefits versus untreated disease controls. The promising results have led the Company to initiate a Phase IIa clinical trial for Parkinson’s Disease, which received final IND approval by the FDA in November of 2025 and is expected to start in the second quarter of 2026, with results anticipated 12 months later. The Company also aims to investigate other CNS indications, such as Mild Cognitive Impairment (“MCI”) and Alzheimer’s disease, following the Parkinson’s study.
Current wording
The Company completed preclinical studies at the University of Miami for Parkinson’s Disease in 2021. These studies used a validated mouse model to mimic human disease characteristics. JOTROL™ demonstrated consistent improvements in motor coordination, endurance, and strength across multiple endpoints in a validated Parkinson’s disease model, with statistically significant benefits versus untreated disease controls. The promising results have led the Company to initiate a Phase IIa clinical trial for Parkinson’s Disease, which received final IND approval by the FDA in November of 2025 and started in the second quarter of 2026, with results anticipated 12 months later. The Company also aims to investigate other CNS indications, such as Mild Cognitive Impairment (“MCI”) and Alzheimer’s disease, following the Parkinson’s study.
Previous wording
For the three months ended March 31, 2026 and 2025, we generated net revenues of $18,652 and $0, respectively from product sales and reported net losses of $2,061,958 and $1,528,867, respectively, and negative cash flow from operating activities of $1,432,100 and $1,063,041, respectively. As noted in our financial statements, as of March 31, 2026 and December 31, 2025, we had an accumulated deficit of $36,728,984 and $34,667,026, respectively. There is substantial doubt regarding our ability to continue as a going concern as a result of our historical recurring losses and negative cash flows from operations as well as our dependence on private equity and financings. See “Risk Factors” included herein and in our Annual Report on Form 10-K for additional discussion of risks associated with our capital requirements.
Current wording
For the six months ended June 30, 2026 and 2025, we generated net revenues of $42,897 and $0, respectively from product sales and reported net losses of $4,336,355 and $3,781,832, respectively, and negative cash flow from operating activities of $3,727,022 and $1,891,263, respectively. As noted in our financial statements, as of June 30, 2026 and December 31, 2025, we had an accumulated deficit of $39,003,381 and $34,667,026, respectively. There is substantial doubt regarding our ability to continue as a going concern as a result of our historical recurring losses and negative cash flows from operations as well as our dependence on private equity and financings. See “Risk Factors” included herein and in our Annual Report on Form 10-K for additional discussion of risks associated with our capital requirements.
Previous wording
The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future. The results of operations for the three months ended March 31, 2026 and March 31, 2025, have been derived from the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future. The results of operations for the three months ended June 30, 2026 and June 30, 2025, have been derived from the condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Research and development (“R&D”) expenses were $411,049 for the three months ended March 31, 2026 compared to $466,745 for the three months ended March 31, 2025, representing a decrease of $55,696, or 12%. The decrease in R&D expenses was primarily attributable to reductions of $54,114 in clinical trial expenses, $37,231 in payroll and consulting expenses, and $1,622 in other expenses, partially offset by an increase of $6,026 in expenses related to meetings and conferences.
Current wording
Research and development (“R&D”) expenses were $600,353 for three months ended June 30, 2026 compared to $759,448 for the three months ended June 30, 2025, representing a decrease of $159,095, or 21%. The decrease in research and development expenses was primarily driven by decreases in payroll and consulting expenses of $100,675, clinical trial expenses of $58,269, and other expenses of $151.
Previous wording
Interest expense was $118,644 for the three months ended March 31, 2026, compared to $1,229 for the three months ended March 31, 2025, representing an increase of $117,415, or 9,554%. The significant increase in the current period reflects the interest related to the Convertible Notes.
Current wording
Interest expense was $90,618 for the three months ended June 30, 2026, compared to $1,135 for the three months ended June 30, 2025, representing an increase of $89,483, or 7,884%. The significant increase in the current period is due to interest related to the convertible promissory notes.
Previous wording
Gain on Change in Fair Value of Convertible Note
Current wording
Gain on Change in Fair Value of Convertible Notes
Previous wording
The Company recognized a $1,282 gain from marking to market the Convertible Notes during the three months ended March 31, 2026.
Current wording
The Company recognized a $549,098 gain from marking to market the Convertible Notes during the three months ended June 30, 2026.
Previous wording
Interest income was $18,404 for the three months ended March 31, 2026, compared to $10,365 for the three months ended March 31, 2025, representing an increase of $8,039, or 78%. The increase was primarily attributable to higher average cash balances in interest-earning accounts during the three months ended March 31, 2026.
Current wording
Interest income was $28,472 for the six months ended June 30, 2026, compared to $23,415 for the six months ended June 30, 2025, representing an increase of $5,057, or 22%. The increase was primarily attributable to higher average cash balances maintained in the Company’s money market accounts during the 2026 period.
Previous wording
As of March 31, 2026, we had cash and cash equivalents of $2,362,749. Our cash equivalents are held in high yield savings account. Since inception, we have incurred net losses and negative cash flows from operations. On March 31, 2026, we had an accumulated deficit of $36,728,984.
Current wording
As of June 30, 2026, we had cash and cash equivalents of $1,521,874. Our cash equivalents are held in a high yield savings account. Since inception, we have incurred net losses and negative cash flows from operations. On June 30, 2026, we had an accumulated deficit of $39,003,381.
Previous wording
Historically, we have financed our operations primarily by selling common stock and convertible debt. On October 24, 2025, the Company entered into a Standby Equity Purchase Agreement (“SEPA”) and related Registration Rights Agreement with YA II PN, Ltd. (“Yorkville”), providing the Company the right, but not the obligation, to sell up to $20.0 million of common stock from time to time, subject to customary conditions, including an effective resale registration statement. In connection with the SEPA, Yorkville agreed to provide $6.0 million of pre-paid advances via convertible promissory notes. During the year ended December 31, 2025, the company received aggregate proceeds of $5,100,000, which is net of $420,000 of issuance discounts and $480,000 of financing costs associated with the transaction. During the three months ended March 31, 2026, the Company received aggregate proceeds of $603,854 from sales of common stock under the SEPA which were used to pay interest on the convertible promissory notes.
Current wording
On October 24, 2025, the Company entered into a Standby Equity Purchase Agreement (“SEPA”) and related Registration Rights Agreement with YA II PN, Ltd. (“Yorkville”), providing the Company the right, but not the obligation, to sell up to $20.0 million of common stock from time to time, subject to customary conditions, including an effective resale registration statement. In connection with the SEPA, Yorkville agreed to provide $6.0 million of pre-paid advances via convertible promissory notes. During the year ended December 31, 2025, the company received aggregate proceeds of $5,100,000, which is net of $420,000 of issuance discounts and $480,000 of financing costs associated with the transaction. During the six months ended June 30, 2026, the Company received aggregate proceeds of $2,808,602 from sales of common stock under the SEPA which were used to pay interest and principal on the convertible promissory notes.
Previous wording
On December 2, 2024, the Company priced its initial public offering of 2,750,000 shares of common stock at a price of $4.00 per share. The offering closed on December 4, 2024, and the Company started trading on the Nasdaq Capital Market under the ticker symbol “JUNS”. The Company sold 2,750,000 shares of its Common Stock to the underwriters and yielded proceeds of $9,725,213, net of underwriters and other fees of $1,274,787.
Current wording
On December 2, 2024, the Company priced its initial public offering of 36,667 shares of common stock at a price of $300.00 per share. The offering closed on December 4, 2024, and the Company started trading on the Nasdaq Capital Market under the ticker symbol “JUNS”. The Company sold 36,667 shares of its Common Stock to the underwriters and yielded proceeds of $9,725,213, net of underwriters and other fees of $1,274,787.
Previous wording
For the three months ended March 31, 2026 and 2025, we generated net revenues of $18,652 and $0, respectively from product sales and reported net losses of $2,061,958 and $1,528,867, respectively, and negative cash flow from operating activities of $1,432,100 and $1,063,041, respectively. As noted in our financial statements, as of March 31, 2026 and December 31, 2025, we had an accumulated deficit of $36,728,984 and $34,667,026, respectively. There is substantial doubt regarding our ability to continue as a going concern as a result of our historical recurring losses and negative cash flows from operations as well as our dependence on private equity and financings.
Current wording
For the six months ended June 30, 2026 and 2025, we generated net revenues of $42,897 and $0, respectively from product sales and reported net losses of $4,336,355 and $3,781,832, respectively, and negative cash flow from operating activities of $3,727,022 and $1,891,263, respectively. As noted in our financial statements, as of June 30, 2026 and December 31, 2025, we had an accumulated deficit of $39,003,381 and $34,667,026, respectively. There is substantial doubt regarding our ability to continue as a going concern as a result of our historical recurring losses and negative cash flows from operations as well as our dependence on private equity and financings.
Previous wording
Cash Flows for the Three months ended March 31, 2026 and 2025
Current wording
Cash Flows for the Six Months Ended June 30, 2026 and 2025
Previous wording
The following table shows a summary of our cash flows for the three months ended March 31, 2026 and 2025.
Current wording
The following table shows a summary of our cash flows for the six months ended June 30, 2026 and 2025.
Previous wording
Net cash used in operating activities during the three months ended March 31, 2026 was $1,432,100, as compared to net cash used in operating activities of $1,063,041 for the three months ended March 31, 2025. The increase in net cash used in operating activities was primarily attributable to the significant increase in net loss, which totaled $2,061,958 for the three months ended March 31, 2026 compared to $1,528,867 for the three months ended March 31, 2025. The higher net loss was partially offset by increased non-cash adjustments, including $500,992 of stock-based compensation for the three months ended March 31, 2026 compared to $421,454 for the three months ended March 31, 2025 and $131,479 of interest paid by stock in the three months ended March 31, 2026, which did not occur in the prior period. Additionally, the current period included a $1,282 gain on the change in fair value of convertible notes, which did not recur in the prior period. Changes in working capital also contributed to the variance, primarily due to an increase in accounts payable and accrued expenses of $162,136 as of March 31, 2026 compared to $113,552 as of March 31, 2025 and an increase of $25,255 in accrued compensation as of March 31, 2026 versus a decrease of $7,435 as of March 31, 2025
Current wording
Net cash used in operating activities was $3,727,022 for the six months ended June 30, 2026, compared to $1,891,263 for the six months ended June 30, 2025. The increase was primarily attributable to an increase in net loss to $4,336,355 in 2026 from $3,781,832 in 2025, a $550,380 non-cash gain on the change in fair value of convertible notes, the $600,000 PharmAla escrow deposit, an increase in accounts receivable of $7,604, an increase in other assets of $22,467, and a decrease in accrued interest of $39,829. These uses of cash were partially offset by non-cash adjustments, including stock-based compensation of $991,989 in 2026 compared to $883,942 in 2025, amortization of prepaid contracts of $380,183 in 2026 compared to $380,182 in 2025, and $131,479 of interest expense paid through the issuance of common stock in 2026. Changes in working capital also included an increase in accounts payable and accrued expenses of $279,597 in 2026 compared to $177,481 in 2025, an increase in accrued compensation of $16,680 in 2026 compared to $442,826 in 2025, and a decrease in inventory of $24,500.
Previous wording
Our accounting policies are more fully described in Note 2 - Significant accounting policies to our consolidated financial statements included as part of this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K.
Current wording
Our accounting policies are more fully described in Note 2 - Significant accounting policies to our financial statements included as part of this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future. The results of operations for the six months ended June 30, 2026 and June 30, 2025, have been derived from the condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current report — wording carried from elsewhere
Gain on Change in Fair Value of Convertible Notes
Current report — wording carried from elsewhere
The Company recognized a $550,380 gain from marking to market the Convertible Notes during the six months ended June 30, 2026.
Current report — wording carried from elsewhere
Historically, we have financed our operations primarily by selling common stock and convertible debt.