What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-02-09 compared with 2025-08-12 · 327 added, 353 removed, 253 unchanged (73% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

June 30, 2025

Sciences Corp.

Consolidated Interim Balance Sheets

(in thousands,

except share and per share amounts)

and cash equivalents

and tax receivables

expenses and other current assets

and Stockholders’ Equity

liabilities - Note 3

grant income - Note 4

and Contingencies - Note 6

December 31, 2025

Anavex Life Sciences Corp.

Condensed Consolidated Interim Balance Sheets

(in thousands, except share and per share amounts)

September 30,

Cash and cash equivalents

Incentive and tax receivables

Prepaid expenses and other current assets

Liabilities and Stockholders’ Equity

Current Liabilities

Accounts payable

Accrued liabilities - Note 3

Deferred grant income - Note 4

Total Liabilities

Commitments and Contingencies - Note 6

Capital stock

10,000,000 preferred stock, par value $ 0.001 per share

200,000,000 common stock, par value $ 0.001 per share

and outstanding:

Issued and outstanding:

92,671,758 common shares (September 30, 2025 - 86,668,521 )

paid-in capital

Stockholders’ Equity

Liabilities and Stockholders’ Equity

Additional paid-in capital

Accumulated deficit

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

Accompanying Notes to Condensed Consolidated Interim Financial Statements

Anavex Life Sciences Corp.

Condensed Consolidated Interim Statements

of Operations and Comprehensive Loss

(in thousands, except share and per

share amounts)

Three months ended June 30,

Nine months ended June 30,

administrative

Condensed Consolidated Interim Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)

Three months ended December 31,

Operating expenses

General and administrative

Research and development

1 unchanged sentence

Operating loss

income (expense)

Research and development

incentive income

Other income (expense)

Research and development incentive income

Interest income, net

1 unchanged sentence

Total other income, net

Net loss and comprehensive

Net loss before provision for income taxes

Income tax expense, current

Net loss and comprehensive loss

Net Loss per share

4 unchanged sentences

Anavex Life Sciences Corp.

Condensed Consolidated Interim Statements

of Cash Flows

(in thousands, except share and per share

Nine months ended June 30,

Flows used in Operating Activities

Adjustments to reconcile

net loss to net cash used in operations:

Gain on settlement of accounts

Condensed Consolidated Interim Statements of Cash Flows

(in thousands, except share and per share amounts)

Three months ended December 31,

Cash Flows used in Operating Activities

Adjustments to reconcile net loss to net cash used in operations:

Share based compensation

Changes in working capital

balances related to operations:

Changes in working capital balances related to operations:

Incentive and tax receivables

3 unchanged sentences

Deferred grant income

Net cash used in operating

Flows provided by Financing Activities

Issuance of common shares

Payment for taxes related

to cashless exercise of options

Proceeds from exercise

of stock options

Net cash (used in) provided by financing activities

Decrease in cash and cash

equivalents during the period

Cash and cash equivalents,

beginning of period

and cash equivalents, end of period

Cash Flow Information

Cash paid for state and

local franchise taxes

Common stock issued upon

cashless exercise of stock option

Accompanying Notes to Condensed Consolidated Interim Financial Statements

Anavex Life Sciences Corp.

Condensed Consolidated Interim Statements of Changes in Stockholders’ Equity

For the three months ended June 30, 2025 and 2024

(in thousands, except share and per share amounts)

Additional Paid-in

Share Proceeds

Balance, April 1, 2025

$ ( 359,378 )

Shares issued pursuant to exercise of stock options

Shares issued pursuant to cashless exercise of stock option

Shares withheld related to cashless exercise of stock option

Share based compensation

Balance, June 30, 2025

$ ( 372,621 )

Balance, April 1, 2024

$ ( 312,237 )

Shares issued under 2023 purchase agreement

Purchase shares

Commitment shares

Shares issued pursuant to exercise of stock options

Share based compensation

Balance, June 30, 2024

$ ( 324,451 )

Net cash used in operating activities

Cash Flows provided by Financing Activities

Issuance of common shares, net of share issue costs

Proceeds from exercise of stock options

Net cash provided by financing activities

(Decrease) Increase in cash and cash equivalents during the period

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Supplemental Cash Flow Information

Cash paid for state and local franchise taxes

Accompanying Notes to Condensed Consolidated Interim Financial Statements

1 unchanged sentence

Condensed Consolidated Interim Statements of Changes in Stockholders’ Equity

For the nine months ended June 30, 2025 and 2024

For the three months ended December 31, 2025 and 2024

(in thousands, except share and per share amounts)

Additional Paid-in

Share Proceeds

Paid-in Capital

Balance, October 1, 2025

$ ( 382,448 )

Shares issued pursuant to exercise of stock options

Shares issued pursuant to cashless exercise of stock options

Shares withheld related to cashless exercise of stock options and taxes

Shares issued under 2025 Sales Agreement

Share based compensation

Balance, June 30, 2025

Balance, December 31, 2025

$ ( 388,129 )

1 unchanged sentence

$ ( 336,071 )

Shares issued under 2023 Purchase Agreement

Purchase shares

Commitment shares

Shares issued pursuant to exercise of stock options

Share based compensation

Balance, June 30, 2024

Balance, December 31, 2024

$ ( 348,182 )

1 unchanged sentence

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 1

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 1

Note 1 Business Description

25 unchanged sentences

consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto

included in the Company’s annual report on Form 10-K for the year ended September 30, 2024 filed with the SEC on December 23, 2024.

included in the Company’s annual report on Form 10-K for the year ended September 30, 2025 filed with the SEC on November 25, 2025.

The Company follows the same accounting policies in the preparation of interim reports.

Operating results for the nine months ended June 30,

2025 are not necessarily indicative of the results that may be expected for the year ending September 30, 2025.

Certain immaterial amounts from prior periods have

been reclassified to conform to the current year’s presentation.

Operating results for the three months ended December

31, 2025 are not necessarily indicative of the results that may be expected for the year ending September 30, 2026.

All of the Company’s potential drug compounds

1 unchanged sentence

if successful, that its potential drug compounds will ever be approved for sales to pharmaceutical companies or generate commercial revenues.

To date, we have not generated any revenue from our operations.

The Company expects the business to continue to experience negative cash

flows from operations for the foreseeable future and cannot predict when, if ever, our business might become profitable.

To date, the Company has not generated any revenue from our operations.

The Company expects the business to continue to experience negative

cash flows from operations for the foreseeable future and cannot predict when, if ever, its business might become profitable.

Management believes that the current working capital

position will be sufficient to meet the Company’s working capital requirements beyond the next 12 months after the date that these

condensed consolidated interim financial statements are issued.

The process of drug development can be costly, and the timing and outcomes

of clinical trials are uncertain.

The assumptions upon which the Company has based its estimates are routinely evaluated and may

be subject to change.

The actual amount of the Company’s expenditures will vary depending upon a number of factors including

but not limited to the design, timing and duration of future clinical trials, the progress of the Company’s research and development

programs and the level of financial resources available.

The Company has the ability to adjust its operating plan spending levels based

on the timing of future clinical trials.

unaudited condensed consolidated interim financial statements are issued.

The process of drug development can be costly, and the timing

and outcomes of clinical trials are uncertain.

The assumptions upon which the Company has based its estimates are routinely evaluated

and may be subject to change.

The actual amount of the Company’s expenditures will vary depending upon a number of factors

including but not limited to the design, timing and duration of future clinical trials, the progress of the Company’s research and

development programs and the level of financial resources available.

The Company has the ability to adjust its operating plan spending

levels based on the timing of future clinical trials.

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 2

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 2

Other than our rights related to the 2025 Sales Agreement

(as defined below in Note 7) and the 2023 Purchase Agreement (as defined below in Note 5), there can be no assurance that additional financing

will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms.

The Company will need

to file a prospectus supplement in order to access funds under the 2023 Purchase Agreement.

If the Company is not able to obtain the additional

financing on a timely basis, if and when it is needed, it will be forced to delay or scale down some or all of its research and development

(as defined below in Note 5), there can be no assurance that additional financing will be available when needed or, if available, that

it can be obtained on commercially reasonable terms.

If the Company is not able to obtain the additional financing on a timely basis,

if and when it is needed, it will be forced to delay or scale down some or all of its research and development activities.

Use of Estimates

20 unchanged sentences

Fair Value Measurements

The fair value hierarchy under GAAP is based on three

levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which

are the following:

Fair value is defined as the exchange price that would

be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or

liability in an orderly transaction between market participants at the measurement date.

Assets and liabilities that are measured at fair

value are reported using a three level fair value hierarchy that prioritizes the inputs used to measure fair value.

This hierarchy maximizes

the use of observable inputs and minimizes the use of unobservable inputs.

The three levels of inputs used to measure fair value are as

Level 1 - quoted prices (unadjusted) in active

markets for identical assets or liabilities;

markets for identical assets or liabilities that the Company has the ability to access at the measurement date;

Level 2 - observable inputs other than Level 1, quoted

3 unchanged sentences

value drivers are unobservable by little or no market activity and that are significant to the fair value of the assets or liabilities.

At June 30, 2025 and September 30, 2024, the Company

At December 31, 2025 and September 30, 2025, the Company

did not have any Level 2 or Level 3 assets or liabilities.

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 3

Basic and Diluted Loss per Share

Basic income/(loss) per common share is computed by

dividing net income/(loss) available to common stockholders by the weighted average number of common shares outstanding during the period.

Diluted income/(loss) per common share is computed by dividing net income/(loss) available to common stockholders by the sum of (1) the

weighted-average number of common shares outstanding during the period, (2) the dilutive effect of the assumed exercise of options and

warrants using the treasury stock method and (3) the dilutive effect of other potentially dilutive securities.

For purposes of the diluted

net loss per share calculation, options and warrants are potentially dilutive securities and are excluded from the calculation of diluted

net loss per share because their effect would be anti-dilutive.

As of June 30, 2025 loss per share excludes 15,463,566

(June 30, 2024:

15,190,254 ) potentially dilutive common shares related to outstanding options and warrants, as their effect was anti-dilutive.

Recent Accounting Pronouncements

In November 2023, the Financial

Accounting Standards Board (FASB) issued ASU No.

2023-07, “Segment Reporting:

Improvements to Reportable Segment Disclosures.”

This guidance requires disclosure of incremental segment information on an annual and interim basis.

This amendment is effective for our

fiscal year ending September 30, 2025 and our interim periods within the fiscal year ending September 30, 2026.

The Company is currently

assessing the impact of this guidance on its disclosures.

In December 2023, the FASB

issued ASU No.

In December 2023, the FASB issued ASU No.

“Income Taxes:

Improvements to Income Tax Disclosures.” This guidance requires consistent categories

and greater disaggregation of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction.

This amendment

is effective for our fiscal year ending September 30, 2026.

Improvements to Income Tax Disclosures.” This guidance requires consistent categories and greater disaggregation

of information in the rate reconciliation and disclosures of income taxes paid by jurisdiction.

This amendment is effective for our fiscal

year ending September 30, 2026.

The Company is currently assessing the impact of this guidance on its disclosures.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 3

In November 2024, the FASB issued ASU No.

“Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures”.

The amendments

2024-03 address investor requests for more detailed expense information and require additional disaggregated

disclosures in the notes to the financial statements for certain categories of expenses that are included on the face of the financial

The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning

after December 15, 2027, with early adoption permitted.

The Company is currently assessing the impact of this guidance on its disclosures.

In December 2025, the FASB issued ASU 2025-11, “Interim

Reporting (Topic 270):

Narrow-Scope Improvements”.

The amendments in ASU No.

2025-11 are intended to improve the clarity and usability

of interim reporting guidance by reorganizing Topic 270, clarifying when interim reporting requirements apply, and consolidating interim

disclosure requirements that are currently dispersed throughout the Codification.

The amendments are effective for fiscal years beginning

after December 15, 2027, and for interim periods within those fiscal years.

Early adoption is permitted.

The Company is currently evaluating

the impact of this guidance on its interim reporting processes and disclosures.

Note 3 Accrued Liabilities

8 unchanged sentences

Note 4 Other Income

As of June 30, 2025, the

Company had received a $ 1.0 million research grant awarded by the Michael J.

Fox Foundation for Parkinson’s Research.

will be used to fund a clinical trial of the Company’s lead compound, ANAVEX ® 2-73 (blarcamesine) related to Parkinson’s

Of the total, $ 0.5 million was received during the year ended September 30, 2023 and $ 0.5 million was received during the year

ended September 30, 2021.

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 4

As of December 31, 2025,

the Company had received a $ 1 .0 million (September 30, 2025:

$ 1 .0 million) research grant awarded by the Michael J.

Fox Foundation for

Parkinson’s Research.

The grant will be used to fund a clinical trial of the Company’s lead compound, ANAVEX ® 2-73

(blarcamesine) related to Parkinson’s disease.

Of the total, $ 0.5 million was received during the year ended September 30, 2023

and $ 0.5 million was received during the year ended September 30, 2021.

The grant income has been

deferred when received and is being amortized to other income as the related research and development expenditures are incurred.

the three and nine months ended June 30, 2025, the Company recognized $ 24,956 and $ 37,231 , respectively (three and nine months ended June

$ 0 ) of this grant on its statements of operations within grant income.

At June 30, 2025 an amount of $ 0.8 million (September

$ 0.8 million) of this grant is recorded as deferred grant income, representing the amount of this grant which has not yet been

amortized to other income.

The Company will recognize this income on its statements of operations as the related expenditures are incurred

to offset the income.

the three months ended December 31, 2025, the Company recognized $Nil (three months ended December 31, 2024:

$ 12,275 ) of this grant on

its statements of operations within grant income.

At December 31, 2025 an amount of $ 0.8 million (September 30, 2025:

$ 0.8 million) of

this grant is recorded as deferred grant income, representing the amount of this grant which has not yet been amortized to other income.

The Company will recognize this income on its statements of operations as the related expenditures are incurred to offset the income.

Research and development

4 unchanged sentences

Anavex Australia, upon filing of a claim in connection with Anavex Australia’s annual income tax return.

During the three and nine

months ended June 30, 2025, the Company recorded research and development incentive income of $ 0.1 million (AUD 0.2 million) and $ 0.6

million (AUD 1.0 million), respectively (June 30, 2024:

$ 0.5 million (AUD 0.8 million) and $ 1.6 million (AUD 2.4 million), respectively)

in respect of the Australia R&D credit for eligible research and development expenses incurred during the period.

This amount is included

within Other income (expense) on the condensed consolidated interim statements of operations and comprehensive loss.

At June 30, 2025, Incentive

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 4

During the three months ended

December 31, 2025, the Company recorded research and development incentive income of $ 0.03 million (AUD 0.05 million) (three months ended

December 31, 2024:

$ 0.4 million (AUD 0.6 million)) in respect of the Australia R&D credit for eligible research and development expenses

incurred during the period.

This amount is included within Other income (expense) on the condensed consolidated interim statements of

operations and comprehensive loss.

At December 31, 2025, Incentive

and tax receivables includes $ 0.7 million (AUD 1.1 million) (September 30, 2025:

2 unchanged sentences

The Australia R&D credit

program is a self-assessment program whereby the Company must assess its eligibility each year to determine (i) if the entity is eligible

(ii) if specific R&D activities are eligible and (iii) if the individual R&D expenditures have nexus to such R&D activities.

program is a self-assess program whereby the Company must assess its eligibility each year to determine (i) if the entity is eligible

(ii) if the specific R&D activities are eligible and (iii) if the individual R&D expenditures have nexus to such R&D activities.

The Company evaluates its eligibility under the tax incentive program as of each balance sheet date based on the most current and relevant

19 unchanged sentences

as declared at the discretion of the Board of Directors.

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 5

Preferred Stock

2 unchanged sentences

of shares constituting any series or the designation of the series.

2025 Sales Agreement

On July 25, 2025, the Company entered into a Sales

Agreement (the “2025 Sales Agreement”) with TD Securities (USA) LLC (the “Sales Agent”).

Pursuant to the 2025

Sales Agreement, the Company may offer and sell up to an aggregate offering price of $ 150 million (the “Offering”) in shares

of common stock from time to time through the Sales Agent.

Upon delivery of a placement notice based on the Company’s

instructions and subject to the terms and conditions of the 2025 Sales Agreement, the Sales Agent may sell shares of common stock by methods

deemed to be an “at the market offering”, in negotiated transactions at market prices prevailing at the time of sale or at

prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to

the Company’s prior written consent.

The Company is not obligated to make any sales of shares under the 2025 Sales Agreement.

Company or the Sales Agent may suspend or terminate the Offering upon notice to the other party, subject to certain conditions.

Agent will act as sales agent on a commercially reasonable efforts basis consistent with its normal trading and sales practices, applicable

state and federal law, rules and regulations and the rules of Nasdaq.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 5

The Company has agreed to pay the Sales Agent commissions

for its services of up to 3.0% of the gross proceeds from the sale of shares of common stock pursuant to the Sales Agreement.

has also agreed to provide the Sales Agent with customary indemnification and contribution rights.

During the three months ended December 31, 2025, the

Company issued 6,003,237 shares of common stock for net proceeds of $ 36.3 million pursuant to the 2025 Sales Agreement.

2023 Purchase Agreement

1 unchanged sentence

million purchase agreement (the “2023 Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”),

pursuant to which the Company has the right to sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $ 150.0

million in value of its shares of common stock from time to time over a three-year period until February 3, 2026.

pursuant to which the Company had the right to sell and issue to Lincoln Park, and Lincoln Park is obligated to purchase, up to $ 150.0

million in value of its shares of common stock from time to time over a three-year period.

In consideration for entering into the 2023 Purchase

4 unchanged sentences

reference to the closing price of the Company’s shares on the 2023 Purchase Agreement date.

In addition, the Company incurred third party

expenses of $ 0.1 million in connection with entering into the Purchase Agreement.

These amounts were expensed to other financing expense

on the statements of operations during the year ended September 30, 2023.

During the nine months ended June 30, 2025, the Company

did not issue any shares of common stock under the 2023 Purchase Agreement (June 30, 2024:

an aggregate of 2,455,646 shares of common

stock including 2,450,000 shares for an aggregate purchase price of $ 11.3 million and 5,646 commitment shares).

At June 30, 2025, there was an unused amount of $ 110.8

million under the 2023 Purchase Agreement.

The Company will need to file a prospectus supplement in order to access funds under the 2023

Purchase Agreement.

2020 Sales Agreement

The Company entered into a Controlled Equity Offering

Sales Agreement on July 6, 2018, which was amended and restated on May 1, 2020 (the “2020 Sales Agreement”) with Cantor Fitzgerald &

and SVB Leerink LLC (together the “Sales Agents”), pursuant to which the Company could offer and sell shares of common

stock registered under an effective registration statement from time to time through the Sales Agents (the “Offering”).

During the nine months ended June 30, 2024, no shares

were sold pursuant to the Offering.

On July 24, 2024, the Company terminated the 2020

Sales Agreement.

Stock Options

During the nine months ended June 30, 2025, the Company

issued 217,503 shares of common stock to the Company’s Chief Executive Officer upon a net exercise of an option to purchase 500,000

shares of common stock at an exercise price of $ 0.92 per share.

In connection with the exercise, the Company withheld 47,745 shares of

common stock as consideration of the exercise price of $ 0.46 million and 234,752 shares of common stock as consideration for the payment

of $ 2.3 million in connection with tax withholding obligations associated with the exercise.

The number of shares withheld were based

upon a market price of $ 9.63 per share as determined by reference to the average high and low sales price reported on the Nasdaq stock

exchange on the date of exercise.

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 6

During the three and nine months ended June 30, 2025,

the Company issued 38,651 shares of common stock to a director of the Company upon a net exercise of an option to purchase 50,000 shares

of common stock at an exercise price of $ 1.76 per share.

The Company withheld 11,349 shares of common stock as consideration of the exercise

price of $ 88,000 .

The number of shares withheld were based upon a market price of $ 7.75 per share as determined by reference to the average

high and low sales price reported on the Nasdaq stock exchange on the date of exercise

In addition, the Company incurred third

party expenses of $ 0.1 million in connection with entering into the 2023 Purchase Agreement.

These amounts were expensed to other financing

expense on the statements of operations during the year ended September 30, 2023.

During the three months ended December 31, 2025 and

year ended September 30, 2025, the Company did not issue any shares of common stock under the 2023 Purchase Agreement.

The 2023 Purchase Agreement expired on February 3,

Note 6 Commitments and Contingencies

4 unchanged sentences

Schedule of operating lease costs

Three months ended June 30,

Nine months ended June 30,

Operating lease costs

months ended December 31,

Employee 401(k) Benefit Plan

4 unchanged sentences

The 401(k) plan permits the Company to make additional matching contributions on behalf of contributing

Company made matching contributions under the 401(k) plan as follows (in thousands):

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 6

The Company made matching

contributions under the 401(k) plan as follows (in thousands):

Schedule of contributions under the plan

Three months ended June 30,

Nine months ended June 30,

Three months ended December 31,

Contributions to 401(k) plan

is subject to claims and legal proceedings that arise in the ordinary course of business.

Such matters are inherently uncertain, and there

can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter

will not have a material adverse effect upon the Company’s consolidated financial statements.

The Company does not believe that

any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements.

2024, a shareholder class action complaint was filed in the United States District Court for the Southern District of New York and it

named the Company and an officer of the Company as Defendants.

The Company is subject to claims and legal proceedings

that arise in the ordinary course of business.

Such matters are inherently uncertain, and there can be no guarantee that the outcome of

any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect

upon the Company’s unaudited condensed consolidated interim financial statements.

The Company does not believe that any of such

pending claims and legal proceedings will have a material adverse effect on its unaudited condensed consolidated interim financial statements.

On March 13, 2024, a shareholder class action complaint

was filed in the United States District Court for the Southern District of New York and it named the Company and an officer of the Company

as Defendants.

The complaint was amended on July 12, 2024 (the “Initial Action”).

The complaint alleged violations of the Securities and Exchange Act of 1934 associated with disclosures and statements made with respect

to certain clinical trials for ANAVEX ® 2-73 related to Rett syndrome.

This lawsuit was dismissed by the United States District

Court for the Southern District of New York on June 18, 2025.

The complaint alleged violations of the

Securities and Exchange Act of 1934 associated with disclosures and statements made with respect to certain clinical trials for ANAVEX ® 2-73

related to Rett syndrome.

This lawsuit was dismissed by the United States District Court for the Southern District of New York on June

The plaintiff filed a notice of appeal on July 17, 2025.

A briefing schedule

has not yet been entered.

No amount has been recorded in these condensed consolidated interim financial statements for any loss contingencies

associated with this lawsuit as the Company believes that it is not probable that any loss will occur.

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 7

On May 8, 2024,

a similar complaint was filed in the same court by Kenneth Downing, a purported shareholder of the Company, against the same defendants.

The Company believed that this lawsuit was without merit and filed a motion to dismiss the complaint.

Plaintiff Downing voluntarily dismissed

this complaint subsequent to the filing of the motion to dismiss.

May 13, 2024, a derivative lawsuit was filed against the Company (as nominal defendant), an officer of the Company, and members of the

Company’s Board of Directors in the U.S.

Briefing on the appeal concluded October 30, 2025 and oral argument

has been scheduled to occur on February 12, 2026.

No decision has been entered.

No amount has been recorded in these unaudited condensed

consolidated interim financial statements for any loss contingencies associated with this lawsuit as the Company believes that it is not

probable that any loss will occur.

On May 8, 2024, a similar complaint was filed in the

same court by Kenneth Downing, a purported shareholder of the Company, against the same defendants.

The Company believed that this lawsuit

was also without merit and filed a motion to dismiss the complaint.

Plaintiff Downing voluntarily dismissed this complaint subsequent

to the filing of the motion to dismiss.

On or about May 13, 2024, a derivative lawsuit was

filed against the Company (as nominal defendant), an officer of the Company, and members of the Company’s Board of Directors in

District Court for the District of Nevada by another purported shareholder.

The complaint

asserts various common law claims (including breach of fiduciary duty) and violation of Section 14(a)of the Securities Exchange Act regarding

the same or similar allegations at issue in the purported class action lawsuit related to disclosures and statements made about certain

clinical trials related to Rett Syndrome.

On January 22, 2025, pursuant to a stipulation of the parties, the Court entered an order staying

this purported derivative lawsuit until the motion to dismiss filed by defendants in the Initial Action is decided by the U.S.

Court for the Southern District of New York.

No amount has been recorded in these condensed consolidated interim financial statements

for any loss contingencies associated with this lawsuit as the Company believes that it is not probable that any loss will occur.

14, 2025, another derivative lawsuit asserting state law breach of fiduciary duty and unjust enrichment claims based upon similar allegations

was filed against the Company (as nominal defendant), an officer of the Company, and members of the Company’s Board of Directors

in the Supreme Court for the State of New York, County of New York, by another purported shareholder.

The parties to that action also

have agreed to a stipulation that would stay the proceeding until the Court rules on the motion to dismiss in the putative class action

lawsuit pending in the U.S.

District Court for the Southern District of New York.

The New York state court has not yet entered an order

pursuant to the stipulation of the parties.

No amount has been recorded in these condensed consolidated interim financial statements for

any loss contingencies associated with this lawsuit as the Company believes that it is not probable that any loss will occur.

We know of no

other material pending legal or governmental proceedings, other than ordinary routine litigation incidental to our business, to which

our Company or our subsidiaries are a party or of which any of their property is subject.

There are no other proceedings in which any

of our directors, officers or affiliates, or any registered or beneficial stockholder holding more than 5% of our shares, or any associate

of such persons, is an adverse party or has a material interest adverse to our or our subsidiaries’ interest.

The complaint asserts various common law claims (including

breach of fiduciary duty) and violation of Section 14(a)of the Securities Exchange Act regarding the same or similar allegations at issue

in the purported class action lawsuit related to disclosures and statements made about certain clinical trials related to Rett syndrome.

On January 22, 2025, pursuant to a stipulation of the parties, the Court entered an order staying this purported derivative lawsuit until

the motion to dismiss filed by defendants in the Initial Action is decided by the U.S.

District Court for the Southern District of New

The stay has been extended through the appeal.

No amount has been recorded in these unaudited condensed consolidated interim financial

statements for any loss contingencies associated with this lawsuit as the Company believes that it is not probable that any loss will

On February 14, 2025, another

derivative lawsuit asserting state law breach of fiduciary duty and unjust enrichment claims based upon similar allegations was filed

against the Company (as nominal defendant), an officer of the Company, and members of the Company’s Board of Directors in the Supreme

Court for the State of New York, County of New York, by another purported shareholder.

On August 18, 2025, pursuant to a stipulation of

the parties, the Court entered an order staying this purported derivative lawsuit until the appeal in the Initial Action is resolved.

No amount has been recorded in these unaudited condensed consolidated interim financial statements for any loss contingencies associated

with this lawsuit as the Company believes that it is not probable that any loss will occur.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 7

We know of no other material

pending legal or governmental proceedings, other than ordinary routine litigation incidental to our business, to which our Company or

our subsidiaries are a party or of which any of their property is subject.

There are no other proceedings in which any of our directors,

officers or affiliates, or any registered or beneficial stockholder holding more than 5% of our shares, or any associate of such persons,

is an adverse party or has a material interest adverse to our or our subsidiaries’ interest.

Share Purchase Warrants

At June 30, 2025 and September 30, 2024, the Company

had 10,000 share purchase warrants outstanding exercisable at $ 12.00 per share until April 21, 2026 .

Share–based Compensation

At December 31, 2025 and

September 30, 2025, the Company had 10,000 share purchase warrants outstanding exercisable at $ 12.00 per share until April 21, 2026.

Stock–based Compensation

2015 Stock Option Plan

4 unchanged sentences

issue under the 2015 Plan was 6,050,553 shares, subject to adjustment in the event of a change of the Company’s capitalization.

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 8

2019 Stock Option Plan

19 unchanged sentences

The exercise price will be determined by the Board at the

time of grant shall be at least equal to the fair market value on such date.

If the grantee is a 10% stockholder on the grant date, then

the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date.

options may be granted under the 2022 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser

periods as may be determined by the Board, subject to earlier termination in accordance with the terms of the 2022 Plan.

time of grant and shall be at least equal to the fair market value on such date.

If the grantee is a 10% stockholder on the grant date,

then the exercise price shall not be less than 110% of fair market value of the Company’s shares of common stock on the grant date.

Stock options may be granted under the 2022 Plan for an exercise period of up to ten years from the date of grant of the option or such

lesser periods as may be determined by the Board, subject to earlier termination in accordance with the terms of the 2022 Plan.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 8

On April 17, 2025, the Board approved an amendment

7 unchanged sentences

liberal share recycling provisions.

As at June 30, 2025, 6,542,062 options had been issued

under the 2022 Plan and 8,418,866 options were available for issue under the 2022 Plan.

At December 31, 2025, 6,319,330 options had been issued under the 2022

Plan and 8,647,381 options were available for issue under the 2022 Plan.

The following summarizes information about stock option

activity during the nine months ended June 30, 2025:

activity during the three months ended December 31, 2025:

Schedule of stock option activity

4 unchanged sentences

Outstanding, September 30, 2025

Outstanding, June 30, 2025

Exercisable, June 30, 2025

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 9

Outstanding, December 31, 2025

Exercisable, December 31, 2025

The following summarizes information about stock options

at June 30, 2025 by a range of exercise prices:

at December 31, 2025 by a range of exercise prices:

Schedule of summarizes information about stock options

Weighted average remaining

Weighted average

Range of exercises prices

life (in years)

Number of outstanding

Weighted average remaining contractual life

Weighted average exercise

Number of vested

Weighted average exercise

The weighted average per share fair value of options

vested at June 30, 2025 was $ 4.73 (September 30, 2024:

At June 30, 2025, the weighted average contractual life of options outstanding

was 5.38 years (September 30, 2024:

vested at December 31, 2025 was $ 4.80 (September 30, 2025:

At December 31, 2025, the weighted average contractual life of options

outstanding was 5.00 years (September 30, 2025:

5.22 years) and for options exercisable was 4.03 years (September 30, 2025:

1 unchanged sentence

difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options

that were in-the-money at June 30, 2025.

that were in-the-money at December 31, 2025.

The Company recognized share-based compensation

expense of $ 4.3 million and $ 7.8 million during the three and nine months ended June 30, 2025, respectively (three and nine months ended

June 30, 2024:

$ 2.5 million and $ 7.4 million, respectively) in connection with the issuance and vesting of stock options in exchange

for services.

These amounts have been included in general and administrative expenses and research and development expenses on the

Company’s condensed consolidated interim statements of operations as follows (in thousands):

expense of $ 1.1 million during the three months ended December 31, 2025 (December 31, 2024:

$ 2.1 million) in connection with the issuance

and vesting of stock options in exchange for services.

These amounts have been included in general and administrative expenses

and research and development expenses on the Company’s condensed consolidated interim statements of operations as follows (in

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 9

Schedule of general and administrative expenses and research and development expenses

Three months ended June 30,

Nine months ended June 30,

Three months ended December 31,

General and administrative

3 unchanged sentences

compensation is expected to be recorded over the remaining term of such options and warrants through fiscal 2029.

The fair value of each stock option award is estimated

on the date of grant using the Black Scholes option pricing model.

The fair value of share-based compensation charges recognized during

the three and nine months ended June 30, 2025 was determined with reference to the quoted market price of the Company’s shares on

the grant date and based on the following weighted average assumptions:

The fair value of each option and

warrant award is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions:

Schedule of weighted average assumptions for fair value of each option award

3 unchanged sentences

Dividend rate

The fair value of stock compensation charges recognized

during the three months ended December 31, 2025 and 2024 was determined with reference to the quoted market price of the Company’s

shares on the grant date.

Prior to October 1, 2025, the expected life was based

on the estimated average life of options using the “simplified method”, as prescribed in FASB ASC 718, due to insufficient

historical exercise activity during recent years.

Starting on October 1, 2025, the expected life is based on the historical exercise activity

of previously granted and exercised options.

Note 7 Segmented Information

Operating segments are defined as components of an

entity for which separate financial information is available and regularly reviewed by the Chief Operating Decision Maker (“CODM”)

in deciding how to allocate resources and assess performance.

The Company’s CODM is the Chief Executive Officer.

The Company has

determined that it operates in a single operating segment, which consists of the development of clinical and preclinical product candidates

focused on advancing novel therapeutics for CNS diseases and disorders, and related administrative activities.

The accounting policies of the segment are the same

as those described in the summary of significant accounting policies as described in the audited consolidated financial statements and

notes thereto included in the Company’s annual report on Form 10-K for the year ended September 30, 2025.

The CODM evaluates performance

and allocates resources based on consolidated net loss, as presented in the Company’s unaudited condensed consolidated interim statement

of operations, and monitors forecast-to-actual variances for significant expense categories given their direct relationship to cash burn.

The CODM also reviews the consolidated balance sheet to assess liquidity, funding capacity, and segment assets, which are reported as

total consolidated assets.

The CODM receives and reviews financial information

on a consolidated basis and does not assess performance or allocate resources based on geographic regions.

In addition, management does

not internally organize or evaluate operating results by geography.

Accordingly, management has determined that it is not required to

present financial information disaggregated by geographic region under ASC 280.

The table below summarizes the significant expense categories regularly

reviewed by the CODM for the three months ended December 31, 2025 and 2024 (in thousands):

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

June 30, 2025 – Page 10

to the Condensed Consolidated Interim Financial Statements

31, 2025 – Page 10

Schedule of summarizes the significant expenses

Research and development costs

Preclinical studies

Clinical trials

Personnel costs

Non-cash share-based compensation

Other research and development costs (a)

Total research and development costs

General and administrative costs

Personnel costs

Non-cash share-based compensation

Other general and administrative costs (b)

Total general and administrative costs

Income tax expense

(a) Other research and development costs include, but are not limited to, publications, sponsorships, membership fees, scientific conferences,

and medical affairs strategy and branding.

(b) Other general and administrative expenses include, but are not limited to, office rent, public company reporting requirements including

professional fees, insurance, and other general operating expenses not otherwise included in research and development expenses.

Note 8 Subsequent Events

4 unchanged sentences

are considered to be available to be issued at the time they are filed with the Securities and Exchange Commission (SEC).

Sales Agreement

On July 25, 2025, the Company entered into a Sales

Agreement (the “Sales Agreement”) with TD Securities (USA) LLC (the “Sales Agent”).

Pursuant to the Sales Agreement,

the Company may offer and sell up to an aggregate offering price of $150 million (the “Offering”) in shares of common stock

from time to time through the Sales Agent.

Upon delivery of a placement notice based on the Company’s

instructions and subject to the terms and conditions of the Sales Agreement, the Sales Agent may sell shares of common stock by methods

deemed to be an “at the market offering”, in negotiated transactions at market prices prevailing at the time of sale or at

prices related to such prevailing market prices, or by any other method permitted by law, including negotiated transactions, subject to

the Company’s prior written consent.

The Company is not obligated to make any sales of shares under the Sales Agreement.

or the Sales Agent may suspend or terminate the Offering upon notice to the other party, subject to certain conditions.

The Sales Agent

will act as sales agent on a commercially reasonable efforts basis consistent its normal trading and sales practices, applicable state

and federal law, rules and regulations and the rules of Nasdaq.

The Company has agreed to pay the Sales Agent commissions

for its services of up to 3.0 % of the gross proceeds from the sale of shares of common stock pursuant to the Sales Agreement.

has also agreed to provide the Sales Agent with customary indemnification and contribution rights.

Tax Legislation

On July 4, 2025, the United States President signed

into law the One Big Beautiful Bill Act, a budget reconciliation package that changes many key provisions of the U.S.

federal income tax

code, including extensions of various expiring provisions from the Tax Cuts and Jobs Act of 2017.

The Company is evaluating the impact

on its financial statements from this legislation and the anticipated forthcoming administrative guidance.

The Company expects the most

significant impact of the new legislation will be to allow for more taxpayer-favorable treatment of research and development expenditures

for US income tax purposes.

There were no subsequent events or transactions that

required recognition or disclosure in the unaudited condensed consolidated interim financial statements.

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 1. Financial Statements