What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-12-09 compared with 2025-09-10 · 238 added, 141 removed, 334 unchanged (53% of the section changed)

81 unchanged sentences

Plan of Operations

We intend to develop and commercialize

therapeutics and vaccines that are better than existing treatments and have the potential to significantly improve the lives of individuals

afflicted by Alzheimer’s, BD, MDD and PTSD.

To achieve these goals, we are pursuing the following key business strategies:

intend to develop and commercialize therapeutics and vaccines that are better than existing treatments and have the potential to significantly

improve the lives of individuals afflicted by Alzheimer’s, BD, MDD and PTSD.

To achieve these goals, we are pursuing the following

key business strategies:

· Advance clinical development of AL001 for Alzheimer’s, BD, MDD and PTSD treatment;

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· Optimize the value of AL001 and ALZN002 in major markets.

Our pipeline consists of two

novel therapeutic drug candidates:

pipeline consists of two novel therapeutic drug candidates:

· AL001 - A patented ionic cocrystal technology delivering a therapeutic combination of lithium, salicylate

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worldwide license from the Licensor.

Our most advanced product

candidate (lead product) licensed and in clinical development in humans is AL001, an ionic cocrystal of lithium for the treatment of Alzheimer’s,

BD, MDD and PTSD.

Based on our preclinical data involving mice models, AL001 treatment prevented cognitive deficits, depression and irritability

and is superior in improving associative learning and memory and irritability compared with lithium carbonate treatments, supporting the

potential of this lithium formulation for the treatment of Alzheimer’s, BD, MDD and PTSD in humans.

Lithium has been marketed for

more than 35 years and human toxicology regarding lithium use has been well characterized, potentially mitigating the regulatory burden

for safety data.

On May 5, 2022, we initiated

a multiple-dose, steady-state, double-blind, ascending dose safety, tolerability, pharmacokinetic clinical trial of AL001 in patients

with mild to moderate Alzheimer’s and healthy subjects.

We completed the Phase IIA clinical trial in March 2023 and announced positive

topline data in June 2023, followed by the full data set in October 2024.

We announced that we successfully

identified a maximum tolerated dose (“MTD”) for development of AL001 from a multiple-ascending dose study as assessed by an

independent safety review committee.

This dose, providing lithium at a lithium carbonate equivalent dose of 240 mg 3-times daily (“TID”),

is designed to be unlikely to require lithium therapeutic drug monitoring (“TDM”).

Also, this MTD is risk mitigated for the

purpose of treating fragile populations, such as Alzheimer’s patients.

most advanced product candidate (lead product) licensed and in clinical development in humans is AL001, an ionic cocrystal of lithium

for the treatment of Alzheimer’s, BD, MDD and PTSD.

Based on our preclinical data involving mice models, AL001 treatment prevented

cognitive deficits, depression and irritability and is superior in improving associative learning and memory and irritability compared

with lithium carbonate treatments, supporting the potential of this lithium formulation for the treatment of Alzheimer’s, BD, MDD

and PTSD in humans.

Lithium has been marketed for more than 35 years and human toxicology regarding lithium use has been well characterized,

potentially mitigating the regulatory burden for safety data.

May 5, 2022, we initiated a multiple-dose, steady-state, double-blind, ascending dose safety, tolerability, pharmacokinetic clinical trial

of AL001 in patients with mild to moderate Alzheimer’s and healthy subjects.

We completed the Phase IIA clinical trial in March

2023 and announced positive topline data in June 2023, followed by the full data set in October 2024.

announced that we successfully identified a maximum tolerated dose (“MTD”) for development of AL001 from a multiple-ascending

dose study as assessed by an independent safety review committee.

This dose, providing lithium at a lithium carbonate equivalent dose

of 240 mg 3-times daily (“TID”), is designed to be unlikely to require lithium therapeutic drug monitoring (“TDM”).

Also, this MTD is risk-mitigated for the purpose of treating fragile populations, such as Alzheimer’s patients.

Lithium is a commonly prescribed

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lithium treatment with an enhanced safety profile and advantageous distribution to brain and brain structures.

Based on the results from

our Phase IIA MAD study, we plan to initiate five clinical trials to determine relative increased lithium levels in the brain compared

to a marketed lithium salt for healthy subject and patients diagnosed with mild to moderate Alzheimer’s, BD, MDD and PTSD, based

on published mouse studies that predict that lithium can be given at lower doses for equivalent therapeutic benefit when treating with

For example, the goal is to replace the amount of lithium needed for maintenance treatment of BD with a clinically relevant, lower

AL001 lithium carbonate equivalent lithium dose.

Such lithium dose mitigation could redefine the landscape of neuropsychiatric, neurodegenerative,

and neurological treatment practices.

In August 2024, we announced that we had partnered with Massachusetts General Hospital to serve

as the CRO for these clinical trials.

On November 19, 2024, we announced

a final full data set from a nonclinical study comparing brain and plasma lithium exposures between AL001 and lithium carbonate in Alzheimer’s

transgenic mice.

The study was conducted at the University of South Florida and the bioanalytical procedures for determination of lithium

concentration in the brain and plasma samples were conducted under good laboratory practice standards by Sannova Analytical LLC.

involved administering AL001, a good manufacturing practices-quality active pharmaceutical ingredient (“API”) to 5XFAD mice,

a recognized model for Alzheimer’s research, to compare its effects against lithium carbonate, an FDA approved and marketed API.

Mice received either high or low doses scaled to humans of both AL001 and lithium carbonate over a 14-day period to observe pharmacokinetic

steady-state drug conditions.

On the 15th day, the mice were analyzed to assess how the treatments affected lithium concentrations in

different brain regions and in their plasma.

Based on the results from our Phase IIA MAD study, we plan to initiate

five clinical trials to determine relative increased lithium levels in the brain compared to a marketed lithium salt for healthy subject

and patients diagnosed with mild to moderate Alzheimer’s, BD, MDD and PTSD, based on published mouse studies that predict that lithium

can be given at lower doses for equivalent therapeutic benefit when treating with AL001.

For example, the goal is to replace the amount

of lithium needed for maintenance treatment of BD with a clinically relevant, lower AL001 lithium carbonate equivalent lithium dose.

lithium dose mitigation could redefine the landscape of neuropsychiatric, neurodegenerative, and neurological treatment practices.

August 2024, we announced that we had partnered with Massachusetts General Hospital to serve as the contract research organization (“CRO”)

for these clinical trials.

November 19, 2024, we announced a final full data set from a nonclinical study comparing brain and plasma lithium exposures between AL001

and lithium carbonate in Alzheimer’s transgenic mice.

The study was conducted at the University of South Florida and the bioanalytical

procedures for determination of lithium concentration in the brain and plasma samples were conducted under good laboratory practice standards

by Sannova Analytical LLC.

The study involved administering AL001, a good manufacturing practices-quality active pharmaceutical ingredient

(“API”) to 5XFAD mice, a recognized model for Alzheimer’s research, to compare its effects against lithium carbonate,

an FDA approved and marketed API.

Mice received either high or low doses scaled to humans of both AL001 and lithium carbonate over a 14-day

period to observe pharmacokinetic steady-state drug conditions.

On the 15th day, the mice were analyzed to assess how the treatments affected

lithium concentrations in different brain regions and in their plasma.

Based on the study, both treatments

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be tailored to target specific brain areas, allowing for more precise treatment of various brain-related conditions when applied in human

These results highlight the

potential clinical advantages of AL001 for conditions like Alzheimer’s, BD, MDD and PTSD at low doses.

By reducing the systemic

burden, AL001 could lessen the risk of side effects such as thyroid and kidney complications often associated with extant lithium therapies.

results highlight the potential clinical advantages of AL001 for conditions like Alzheimer’s, BD, MDD and PTSD at low doses.

reducing the systemic burden, AL001 could lessen the risk of side effects such as thyroid and kidney complications often associated with

extant lithium therapies.

This positions AL001 as a promising candidate for safer long-term treatment options, without the need for TDM.

This innovation is specifically

designed to address the needs of fragile populations, such as elderly and Alzheimer’s patients, by offering a potentially more efficient

and safer alternative to existing treatments.

This innovation is specifically designed to address the needs of fragile populations, such as elderly and Alzheimer’s patients,

by offering a potentially more efficient and safer alternative to existing treatments.

The dosing level identified

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May 2025, we began the trial and dosed the first healthy subject.

On September 28, 2022, we

submitted an IND application to the FDA for ALZN002 and received a “study may proceed” letter on October 31, 2022.

candidate is an immunotherapy vaccine designed to treat mild to moderate dementia of the Alzheimer’s type.

ALZN002 is a proprietary

“active” immunotherapy product, which means it is produced by each patient’s immune system.

It consists of autologous

DCs that are activated white blood cells taken from each individual patient so that they can be engineered outside of the body to attack

Alzheimer’s-related amyloid-beta proteins.

These DCs are pulsed with a novel amyloid-beta peptide (E22W) designed to bolster the

ability of the patient’s immune system to combat Alzheimer’s, with the goal being to foster tolerance to treatment for safety

purposes while stimulating the immune system to reduce the brain’s beta-amyloid protein burden, resulting in reduced Alzheimer’s

signs and symptoms.

Compared to passive immunization treatment approaches that use foreign blood products (such as monoclonal antibodies),

active immunization with ALZN002 is anticipated to offer a more robust and long-lasting effect on the clearance of amyloid.

provide a safer approach due to its reliance on autologous immune components, using each individual patient’s own white blood cells

rather than foreign cells and/or blood products.

On April 3, 2023, we announced

the initiation of a Phase I/IIA clinical trial for ALZN002 to treat mild to moderate dementia of the Alzheimer’s type.

of this trial is to assess the safety, tolerability, and efficacy of multiple ascending doses of ALZN002 compared with that of a placebo

in 20-30 subjects with mild to moderate morbidity.

The primary goal of this clinical trial is to determine an appropriate dose of ALZN002

for treatment of patients with Alzheimer’s in a larger Phase IIB efficacy and safety clinical trial.

On February 13, 2024, we received

notice from the company we engaged as our contract research organization (“CRO”), Biorasi, LLC (“Biorasi”) that

Biorasi was terminating our contract with them.

We are currently pursuing the engagement of a replacement CRO.

The continuation of our current

plan of operations with respect to initiating and conducting the series of human clinical trials for each of our therapeutics requires

us to raise additional capital to fund our operations.

Because our working capital

requirements depend upon numerous factors, including the progress of our preclinical and clinical testing, timing and cost of obtaining

regulatory approvals, changes in levels of resources that we devote to the development of manufacturing and marketing capabilities, competitive

and technological advances, status of competitors, and our ability to establish collaborative arrangements with other organizations, we

will require additional financing to fund future operations.

In November 2025, we announced that we completed the clinical portion

of the Phase II study in healthy human subjects and expect to report topline data

in the first quarter of 2026.

September 28, 2022, we submitted an IND application to the FDA for ALZN002 and received a “study may proceed” letter on October

The product candidate is an immunotherapy vaccine designed to treat mild to moderate dementia of the Alzheimer’s type.

ALZN002 is a proprietary “active” immunotherapy product, which means it is produced by each patient’s immune system.

It consists of autologous DCs that are activated white blood cells taken from each individual patient so that they can be engineered outside

of the body to attack Alzheimer’s-related amyloid-beta proteins.

These DCs are pulsed with a novel amyloid-beta peptide (E22W) designed

to bolster the ability of the patient’s immune system to combat Alzheimer’s, with the goal being to foster tolerance to treatment

for safety purposes while stimulating the immune system to reduce the brain’s beta-amyloid protein burden, resulting in reduced

Alzheimer’s signs and symptoms.

Compared to passive immunization treatment approaches that use foreign blood products (such as monoclonal

antibodies), active immunization with ALZN002 is anticipated to offer a more robust and long-lasting effect on the clearance of amyloid.

This could provide a safer approach due to its reliance on autologous immune components, using each individual patient’s own white

blood cells rather than foreign cells and/or blood products.

On April 3, 2023, we announced the initiation of a Phase I/IIA clinical

trial for ALZN002 to treat mild to moderate dementia of the Alzheimer’s type.

The purpose of this trial is to assess the safety,

tolerability, and efficacy of multiple ascending doses of ALZN002 compared with that of a placebo in 20-30 subjects with mild to moderate

The primary goal of this clinical trial is to determine an appropriate dose of ALZN002 for treatment of patients with Alzheimer’s

in a larger Phase IIB efficacy and safety clinical trial.

On February 13, 2024, we received notice from the company we engaged as CRO,

Biorasi, LLC (“Biorasi”) that Biorasi was terminating our contract with them.

We are currently pursuing the engagement of

a replacement CRO.

continuation of our current plan of operations with respect to initiating and conducting the series of human clinical trials for each

of our therapeutics requires us to raise additional capital to fund our operations.

our working capital requirements depend upon numerous factors, including the progress of our preclinical and clinical testing, timing

and cost of obtaining regulatory approvals, changes in levels of resources that we devote to the development of manufacturing and marketing

capabilities, competitive and technological advances, status of competitors, and our ability to establish collaborative arrangements with

other organizations, we will require additional financing to fund future operations.

Results of Operations

Results of Operations for the Three Months Ended July 31,

Results of Operations for the Three Months Ended October 31,

2025 and 2024

The following table summarizes

the results of our operations for the three months ended July 31, 2025 and 2024:

For the Three Months Ended July 31,

the results of our operations for the three months ended October 31, 2025 and 2024:

For the Three Months Ended October 31,

OPERATING EXPENSES

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Loss from operations

OTHER EXPENSE, NET

OTHER INCOME (EXPENSE), NET

Interest expense

Total other expense, net

$ (2,702,684 )

$ (1,728,273 )

Dividends on preferred shares

NET LOSS AVAILABLE TO COMMON SHARES

Basic and diluted net loss per common share

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We did not generate any revenues

during the three months ended July 31, 2025 and 2024, and we do not anticipate that we will generate revenue for the foreseeable future.

during the three months ended October 31, 2025 and 2024, and we do not anticipate that we will generate revenue for the foreseeable future.

Research and Development Expenses

Research and development expenses

for the three months ended July 31, 2025 and 2024 were $1.7 million and $207,000, respectively.

for the three months ended October 31, 2025 and 2024 were $176,000 and $311,000, respectively.

As reflected in the table below, research

and development expenses primarily consisted of professional fees and clinical trial fees:

For the Three Months Ended July 31,

For the Three Months Ended October 31,

Professional fees

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During the three months ended

July 31, 2025 and 2024, we incurred professional fees of $74,000 and $184,000, respectively, which were primarily comprised of professional

October 31, 2025 and 2024, we incurred professional fees of $131,000 and $181,000, respectively, which were primarily comprised of professional

fees attributed to various types of scientific services, including FDA consulting services.

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During the three months ended

July 31, 2025 and 2024, we incurred clinical trial fees of $1.7 million and nil, respectively.

Clinical trial fees for the three months

ended July 31, 2025 were for our Phase IIA brain imaging study with Massachusetts General Hospital.

October 31, 2025 and 2024, we incurred clinical trial fees of $39,000 and $124,000, respectively.

The decrease in clinical trial fees

relates to the timing of our Phase IIA brain imaging study with Massachusetts General Hospital.

Other Research and Development Expenses

During the three months ended

July 31, 2025 and 2024, we incurred other fees of $6,000 and $22,000, respectively, which were primarily comprised of scientific materials

required for our clinical trials.

October 31, 2025 and 2024, we incurred other fees of $6,000, which were primarily comprised of scientific materials required for our clinical

General and Administrative Expenses

General and administrative

expenses for the three months ended July 31, 2025 and 2024 were $959,000 and $756,000, respectively.

As reflected in the table below,

general and administrative expenses primarily consisted of the following expense categories:

expenses for the three months ended October 31, 2025 and 2024 were $822,000 and $1.0 million, respectively.

As reflected in the table

below, general and administrative expenses primarily consisted of the following expense categories:

salaries and benefits;

professional fees;

stock-based compensation expense;

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and board of director fees.

For the three months ended July 31, 2025 and

2024, the remaining general and administrative expenses of $102,000 and $62,000, respectively, primarily consisted of payments for filing

fees, transfer agent fees, travel and entertainment and other office expenses, none of which was significant individually.

For the Three Months Ended July 31,

For the three months ended October 31,

2025 and 2024, the remaining general and administrative expenses of $85,000 and $83,000, respectively, primarily consisted of payments

for filing fees, transfer agent fees, travel and entertainment and other office expenses, none of which was significant individually.

For the Three Months Ended October 31,

Salary and benefits

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Salaries and Benefits

During each of the three months

ended July 31, 2025 and 2024, we incurred $228,000 in employee-related expenses.

As of July 31, 2025, we had four full-time and three

part-time employees.

During the three months ended

October 31, 2025 and 2024, we incurred salaries and benefits of $224,000 and $326,000, respectively.

The decrease in salaries and benefits

was due mainly to lower bonuses.

As of October 31, 2025, we had four full-time and three part-time employees.

Professional Fees

During the three months ended

July 31, 2025 and 2024, we incurred professional fees of $333,000 and $222,000, respectively.

During the three months ended July 31, 2025,

we incurred $183,000 in legal fees, $78,000 in audit fees, $60,000 in investor relations fees and $12,000 in tax preparation fees.

the three months ended July 31, 2024, we incurred $85,000 in investor relations fees, $74,000 in legal fees, $56,000 in audit fees, and

$7,000 in tax preparation fees.

The increase in professional fees was due mainly to higher legal, audit and tax preparation fees, partially

offset by lower investor relations fees.

The increase in legal fees, which accounted for a significant proportion of the increase, was

a result of actions from the termination of our ALZN002 clinical trial.

October 31, 2025 and 2024, we incurred professional fees of $379,000 and $149,000, respectively.

During the three months ended October

31, 2025, we incurred $340,000 in legal fees, $24,000 in audit fees, $20,000 in tax preparation fees and $5,000 in consulting fees, offset

by $10,000 in investor relation fees due to a refund.

During the three months ended October 31, 2024, we incurred $96,000 in audit fees,

$35,000 in legal fees, $14,000 in tax preparation fees and $2,000 in consulting fees.

The increase in professional fees was due mainly

to higher legal and tax preparation fees, partially offset by lower audit and investor relations fees.

The increase in legal fees, which

accounted for a significant proportion of the increase, was a result of actions by the CRO from the termination of our ALZN002 clinical

Insurance Expense

During the three months ended

July 31, 2025 and 2024, we incurred insurance expense of $60,000 and $78,000, respectively, which was primarily directors’ and officers’

October 31, 2025 and 2024, we incurred insurance expense of $59,000 and $60,000, respectively, which was primarily directors’ and

officers’ insurance.

Stock-Based Compensation Expense

During the three months ended

July 31, 2025 and 2024, we incurred general and administrative stock-based compensation expense of $43,000 and $81,000, respectively,

October 31, 2025 and 2024, we incurred general and administrative stock-based compensation expense of $32,000 and $81,000, respectively,

related to stock option grants and restricted stock grants to executives, employees and consultants.

The decrease in stock-based compensation

expense for the three months ended July 31, 2025, was a result of fewer stock options vesting during the period compared to the prior

expense for the three months ended October 31, 2025, was a result of fewer stock options vesting during the period compared to the prior

Marketing Fees

During the three months ended October 31, 2024, we incurred marketing

fees of $304,000, related to the marketing and branding of our company.

We did not incur any marketing fees for the three months ended

October 31, 2025.

Results of Operations for the Six Months Ended October 31,

2025 and 2024

The following table summarizes

the results of our operations for the six months ended October 31, 2025 and 2024:

For the Six Months Ended October 31,

OPERATING EXPENSES

Research and development

General and administrative

Total operating expenses

Loss from operations

OTHER EXPENSE, NET

Interest expense

Total other expense, net

Dividends on preferred shares

NET LOSS AVAILABLE TO COMMON SHARES

Basic and diluted net loss per common share

Basic and diluted weighted average common shares outstanding

* Not meaningful

currently have only two product candidates, AL001 and ALZN002.

These products are in the clinical stage of development and will require

extensive clinical study, review and evaluation, regulatory review and approval, significant marketing efforts and substantial investment

before either or both of them, and any respective successors, will provide us with any revenue.

We did not generate any revenues

during the six months ended October 31, 2025 and 2024, and we do not anticipate that we will generate revenue for the foreseeable future.

Research and Development Expenses

Research and development expenses

for the six months ended October 31, 2025 and 2024 were $1.9 million and $518,000, respectively.

As reflected in the table below, research

and development expenses primarily consisted of professional fees and clinical trial fees:

For the Six Months Ended October 31,

Professional fees

Clinical trials

Other research and development expenses

Total research and development expenses

Professional Fees

During the six months ended

October 31, 2025 and 2024, we incurred professional fees of $205,000 and $365,000, respectively, which were primarily comprised of professional

fees attributed to various types of scientific services, including FDA consulting services.

The decrease relates to lower professional

fees required to support the previous and upcoming clinical trial activities.

Clinical Trial Fees

During the six months ended

October 31, 2025 and 2024, we incurred clinical trial fees of $1.7 million and $124,000, respectively.

The increase in clinical trial

fees relates to the timing of our Phase IIA brain imaging study with Massachusetts General Hospital.

Other Research and Development Expenses

During the six months ended

October 31, 2025 and 2024, we incurred other fees of $12,000 and $28,000, respectively, which were primarily comprised of scientific materials

required for our clinical trials.

General and Administrative Expenses

General and administrative

expenses for the six months ended October 31, 2025 and 2024 were $1.8 million.

As reflected in the table below, general and administrative

expenses primarily consisted of the following expense categories:

salaries and benefits;

professional fees;

stock-based compensation

marketing fees;

and board of director fees.

For the six months ended October 31, 2025 and 2024, the remaining general and administrative

expenses of $187,000 and $145,000, respectively, primarily consisted of payments for filing fees, transfer agent fees, travel and entertainment

and other office expenses, none of which was significant individually.

For the Six Months Ended October 31,

Salaries and benefits

Professional fees

Stock-based compensation expense

Marketing fees

Board of director fees

Other general and administrative expenses

Total general and administrative expenses

Salaries and Benefits

During the six months ended

October 31, 2025 and 2024, we incurred salaries and benefits of $452,000 and $554,000, respectively.

The decrease in salaries and benefits

was due mainly to lower bonuses.

As of October 31, 2025, we had four full-time and three part-time employees.

Professional Fees

During the six months ended

October 31, 2025 and 2024, we incurred professional fees of $712,000 and $371,000, respectively.

During the six months ended October 31,

2025, we incurred $522,000 in legal fees, $102,000 in audit fees, $50,000 in investor relation fees, $32,000 in tax preparation fees and

$6,000 in consulting fees.

During the six months ended October 31, 2024, we incurred $151,000 in audit fees, $110,000 in legal fees, $86,000

in investor relation fees, $22,000 in tax preparation fees and $2,000 in consulting fees.

The increase in professional fees was due mainly

to higher legal and tax preparation fees, partially offset by lower audit and investor relations fees.

The increase in legal fees, which

accounted for a significant proportion of the increase, was a result of actions by the CRO from the termination of our ALZN002 clinical

Insurance Expense

During the six months ended

October 31, 2025 and 2024, we incurred insurance expense of $118,000 and $139,000, respectively, which was primarily directors’

and officers’ insurance.

Stock-Based Compensation Expense

During the six months ended

October 31, 2025 and 2024, we incurred general and administrative stock-based compensation expense of $74,000 and $163,000, respectively,

related to stock option grants and restricted stock grants to executives, employees and consultants.

The decrease in stock-based compensation

expense for the six months ended October 31, 2025, was a result of fewer stock options vesting during the period compared to the prior

Marketing Fees

During the six months ended October 31, 2025 and 2024, we incurred

marketing fees of $150,000 and $344,000, respectively, related to the marketing and branding of our company.

Liquidity and Capital Resources

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Our inability to continue as

a going concern could have a negative impact on our company, including our ability to obtain needed financing.

a going concern could have a negative impact on our company, particularly if we are unable to obtain needed financing.

We intend to finance our future development activities and our working capital needs largely through the sale of equity securities with

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might be necessary should we be unable to continue as a going concern.

As of July 31, 2025, we had cash of $5.6 million, working capital

As of October 31, 2025, we had cash of $4.4 million, working capital

of $4.0 million, stockholders’ equity of $4.4 million and an accumulated deficit of $62.2 million.

We have incurred recurring losses

and reported losses for the three months ended July 31, 2025 totaling $2.7 million.

In the past, we have financed our operations principally

through sales of equity securities and debt instruments.

and reported losses for the three and six months ended October 31, 2025 totaling $1.0 million and $3.7 million, respectively.

we have financed our operations principally through sales of equity securities and debt instruments.

We will need to obtain substantial

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The following table summarizes

our cash flows for the three months ended July 31, 2025 and 2024:

For the Three Months Ended July 31,

our cash flows for the six months ended October 31, 2025 and 2024:

the Six Months Ended October 31,

Net cash provided by (used in):

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Operating Activities

During the three months ended

July31, 2025, net cash used in operating activities was $2.4 million.

During the six months ended

October 31, 2025, net cash used in operating activities was $3.5 million.

This consisted primarily of a net loss of $3.7 million, partially

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Investing Activities

During the three months ended

July 31, 2025, there was no net cash used in investing activities.

During the six months ended

October 31, 2025, there was no net cash used in investing activities.

Financing Activities

During the three months ended

July 31, 2025, net cash provided by financing activities was $4.0 million from the sale of Series C Convertible Preferred Stock.

During the six months ended

October 31, 2025, net cash provided by financing activities was $4.0 million from the sale of Series C Convertible Preferred Stock.

Contractual Obligations

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis