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Item 1. Financial Statements

2026-08-28 compared with 2026-08-28 · 244 added, 242 removed, 432 unchanged (53% of the section changed)

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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

June 30, 2026

Anavex Life Sciences

Condensed Consolidated

Interim Balance Sheets

(in thousands,

except share and per share amounts)

September 30,

March 31, 2026

Life Sciences Corp.

Consolidated Interim Balance Sheets

thousands, except share and per share amounts)

and cash equivalents

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and outstanding:

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

common stock (September 30, 2025 - 86,668,521 )

paid-in capital

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Liabilities and Stockholders’ Equity

See 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,

Operating expenses (recovery)

General and administrative (recovery)

Research and development (recovery)

Total operating expenses (recovery)

Operating income (loss)

Accompanying Notes to Condensed Consolidated Interim Financial Statements

Life Sciences Corp.

Consolidated Interim Statements of Operations and Comprehensive Loss

thousands, except share and per share amounts)

Three months ended March 31,

Six months ended March 31,

Operating expenses

General and administrative

Research and development

Total operating expenses

Operating loss

Other income (expense)

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Total other income, net

Net income (loss) before provision for income

Net loss before provision for income

Income tax expense, current

Net income (loss) and comprehensive income (loss)

Net income (loss) per share

Net loss and comprehensive loss

Net Loss per share

Basic and diluted

Weighted average number of shares outstanding

See Accompanying Notes to Condensed Consolidated Interim

Financial Statements

Anavex Life Sciences Corp.

Condensed Consolidated Interim Statements of Cash Flows

(in thousands, except share and per share amounts)

Nine months ended June 30,

Basic and diluted

Accompanying Notes to Condensed Consolidated Interim Financial Statements

Life Sciences Corp.

Consolidated Interim Statements of Cash Flows

thousands, except share and per share amounts)

Six months ended March 31,

Cash Flows used in Operating Activities

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

Share based compensation (recovery)

Share based compensation

Changes in working capital balances related to operations:

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Cash Flows provided by Financing Activities

Issuance of common shares, net of share issuance costs

Payment for taxes related to cashless exercise of options

Issuance of common stock, net of share issuance costs

Proceeds from exercise of stock options

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Cash paid for state and local franchise taxes

Cash paid for income taxes

Common stock issued upon cashless exercise of stock option

See 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, 2026 and 2025

(in thousands, except share and per share amounts)

Accompanying Notes to Condensed Consolidated Interim Financial Statements

Life Sciences Corp.

Consolidated Interim Statements of Changes in Stockholders’ Equity

the three months ended March 31, 2026 and 2025

thousands, except share and per share amounts)

Paid-in Capital

Balance, April 1, 2026

Share based compensation (recovery)

Balance, June 30, 2026

Balance, April 1, 2025

Balance, January 1, 2026

$ ( 388,129 )

Shares issued under 2025 Sales Agreement

Shares issued pursuant to exercise of stock options

Share based compensation

Balance, March 31, 2026

$ ( 393,467 )

Balance, January 1, 2025

$ ( 348,182 )

Shares issued pursuant to exercise of stock options

Shares issued pursuant to cashless exercise of stock option

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Share based compensation

Balance, June 30, 2025

See Accompanying Notes to Condensed Consolidated Interim

Financial Statements

Anavex Life Sciences Corp.

Condensed Consolidated Interim Statements of Changes in Stockholders’ Equity

For the nine months ended June 30, 2026 and 2025

(in thousands, except share and per share amounts)

Balance, March 31, 2025

$ ( 359,378 )

Accompanying Notes to Condensed Consolidated Interim Financial Statements

Life Sciences Corp.

Consolidated Interim Statements of Changes in Stockholders’ Equity

the six months ended March 31, 2026 and 2025

thousands, except share and per share amounts)

Paid-in Capital

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Shares issued pursuant to exercise of stock options

Share based compensation (recovery)

Balance, June 30, 2026

Share based compensation

Balance, March 31, 2026

Balance, October 1, 2024

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Share based compensation

Balance, June 30, 2025

See Accompanying Notes to Condensed Consolidated Interim

Financial Statements

Balance, March 31, 2025

Accompanying Notes to Condensed Consolidated Interim Financial Statements

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 1

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 1

Note 1 Business Description

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

Operating results for the nine months ended June 30, 2026 are

Operating results for the six months ended March 31, 2026 are

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

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Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 2

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 2

Other than our rights related to the 2025 Sales Agreement

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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.

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

research and development activities.

Use of Estimates

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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, 2026 and September 30, 2025, the Company

At March 31, 2026 and September 30, 2025, the Company

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

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 3

Anavex Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 3

Recent Accounting Pronouncements

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Accrued compensation and benefits

Research grant repayable (Note 4)

Milestone-based contract accruals

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Note 4 Other Income

As of June 30, 2026,

As of March 31,

2026, the Company had received a $ 1.0 million (September 30, 2025:

$ 1.0 million) research grant awarded by the Michael J.

$ 1.0 million) research grant awarded by the Michael

Fox Foundation for Parkinson’s Research (the “MJFF”).

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when received and was being amortized to other income as the related research and development expenditures were incurred.

the three and nine months ended June 30, 2026, the Company did not recognize any amount (three and nine months ended

June 30, 2025:

the three and six months ended March 31, 2026, the Company did not recognized any amount (three and six months

ended March 31, 2025:

$ 0 and $ 12,275 respectively) of this grant on its statements of operations within grant income.

Subsequent to the period

ended June 30, 2026, the grant was terminated and the $ 0.8 million deferred grant income was repaid to the MJFF.

As a result of the decision

to terminate the grant during the period ended June 30, 2026, deferred grant income of $ 0.8 million is included in accrued liabilities

as of June 30, 2026 (Note 3).

At March 31, 2026, an

amount of $ 0.8 million (September 30, 2025:

$ 0.8 million) of this grant was recorded as deferred grant income, representing the

amount of this grant which had not yet been amortized to other income.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 4

At September 30, 2025:

$ 0.8 million

of this grant was recorded as deferred grant income, representing the amount of the grant which had not yet been amortized to

other income.

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 4

Subsequent to March 31, 2026,

the grant was terminated and the $0.8 million deferred grant income was repaid to the MJFF.

Research and development

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annual income tax return.

During the three

and nine months ended June 30, 2026, the Company recorded research and development incentive income of $ 0.03

million) and $ 0.09 million

(AUD 0.14 million)

respectively (three and nine months ended June 30, 2025:

million (AUD 0.2

million) and $ 0.6 million

(AUD 1.0 million))

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

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

operations and comprehensive loss.

At June 30, 2026, incentive

During the three and

six months ended March 31, 2026, the Company recorded research and development incentive income of $ 0.03 (AUD 0.04 million) and $ 0.06 million

(AUD 0.09 million) respectively (three and six months ended March 31, 2025:

$ 0.1 million (AUD 0.2 million) and $ 0.5 million

(AUD 0.8 million)) in respect of the Australia R&D credit for eligible research and development expenses incurred during

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

of operations and comprehensive loss.

At March 31, 2026, Incentive

and tax receivables includes $ 0.8 million (AUD 1.2 million) (September 30, 2025:

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to demonstrate a reasonably arguable position taken on such claims, the ATO could also assess penalties and interest on any such

As of June 30, 2026, the

As of March 31, 2026, the

Company’s tax incentive claims from 2021 to 2025 are open to potential review by the ATO.

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rights and are entitled to dividends as declared at the discretion of the Company’s Board of Directors (the “Board”).

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 5

Preferred Stock

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or the designation of the series.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 5

2025 Sales Agreement

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

During the nine months ended June 30, 2026, the Company

During the six months ended March 31, 2026, the Company

issued 6,026,237 shares of common stock for net proceeds of $36.4 million pursuant to the 2025 Sales Agreement.

The Company suspended

sales under the 2025 Sales Agreement following formation of the Special Committee (defined below) described in Note 6.

sales under the 2025 Sales Agreement following formation of the Special Committee (defined below) described in Notes 6 and 8.

2023 Purchase Agreement

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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.

million in value of shares of the Company’s common stock from time to time over a three-year period.

In consideration for entering into the 2023 Purchase

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expensed to other financing expense on the statements of operations during the year ended September 30, 2023.

During the three and nine months ended June 30, 2026 and year

During the three and six months ended March 31, 2026 and year

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

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Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 6

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 6

Note 6 Commitments and Contingencies

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Schedule of operating lease costs

Three months ended June 30,

Nine months ended June 30,

Three months ended March 31,

Six months ended March 31,

Operating lease costs

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

Schedule of contributions under the plan

Months Ended June 30,

Months ended June 30,

Contributions

to 401(k) plan

Three Months Ended March 31,

Six Months ended March 31,

Contributions to 401(k) plan

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

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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.

class action complaint was filed in the U.S.

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”).

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

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.

This lawsuit was dismissed by the U.S.

District Court for the Southern District

of New York on June 18, 2025.

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

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and an oral argument occurred on February 12, 2026.

On June 26, 2026, the Second Circuit

issued an opinion affirming the district court’s dismissal, including denial of leave to further amend the complaint.

did not petition for rehearing within the applicable deadline.

The period for plaintiff to file a petition for writ of certiorari has

not yet passed.

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 June 26, 2026, the Second Circuit issued an opinion affirming the district court’s

dismissal, including denial of leave to further amend the complaint.

Plaintiff did not petition for rehearing within the applicable deadline.

The period for plaintiff to file a petition for writ of certiorari has not yet passed.

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

30, 2026 – Page 7

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 7

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 the U.S.

of the Board in the U.S.

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.

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 York.

The stay was later extended through

On August 17, 2026, after disposition of the appeal in the Initial Action, a stipulation of dismissal of the derivative lawsuit

was approved by the judge.

The stay was later extended through the appeal.

On August 17,

2026, after disposition of the appeal in the Initial Action, a stipulation of dismissal of the derivative lawsuit was approved by the

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.

On August 10, 2026, after disposition of the appeal in the Initial Action, a stipulation

of dismissal of the derivative lawsuit was approved by the judge.

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

On August 10, 2026, after disposition of the appeal in the Initial Action, a stipulation of dismissal of the derivative

lawsuit was approved by the judge.

Matters Relating

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his termination.

In June 2026,

the Company received a AAA Demand for Arbitration filed by Dr.

In June 2026, the Company received a

AAA Demand for Arbitration filed by Dr.

In the Demand, Dr.

Missling asserts he was wrongfully terminated

for Cause under his Employment Agreement and seeks relief for alleged breach of contract, declaratory relief, and defamation.

seeks severance and other compensation allegedly owed under the Employment Agreement, including cash severance, acceleration of equity

awards, accrued compensation and benefits, reimbursement and advancement of legal fees and expenses, damages for purported defamatory

statements, and attorneys’ fees, costs, and interest.

Missling subsequently served and attempted to file an amended demand removing

certain allegations, but otherwise maintaining all previously asserted causes of action.

The Company categorically denies any wrongdoing

and intends to vigorously defend against the claims.

At this early stage of the proceedings, the Company cannot reasonably estimate any

potential loss, or range of loss, that may arise from Dr.

Missling asserts he was wrongfully terminated for Cause under his

Employment Agreement and seeks relief for alleged breach of contract, declaratory relief, and defamation.

Missling seeks severance

and other compensation allegedly owed under the Employment Agreement, including cash severance, acceleration of equity awards, accrued

compensation and benefits, reimbursement and advancement of legal fees and expenses, damages for purported defamatory statements, and

attorneys’ fees, costs, and interest.

Missling subsequently served and attempted to file an amended demand removing certain

allegations, but otherwise maintaining all previously asserted causes of action.

The Company categorically denies any wrongdoing and intends

to vigorously defend against the claims.

At this early stage of the proceedings, the Company cannot reasonably estimate any potential

loss, or range of loss, that may arise from Dr.

Missling’s claims .

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Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 8

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 8

Share Purchase Warrants

At March 31, 2026 and September 30,

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

On April 21, 2026,

these warrants expired unexercised.

Share–based Compensation

2015 Stock Option Plan

On September 18, 2015, the Company’s Board approved

a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provided for the grant of stock options and restricted stock awards

to directors, officers, employees and consultants of the Company.

The maximum number of our shares of common stock reserved

On September 18, 2015, the Company’s Board

approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provided for the grant of stock options and restricted stock

awards to directors, officers, employees and consultants of the Company.

The maximum number of shares of common stock reserved

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

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

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 9

On April 17, 2025, the Board approved an amendment

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liberal share recycling provisions.

As at June 30, 2026, 3,285,496 options were outstanding

under the 2022 Plan and 14,007,678 awards were available for issue under the 2022 Plan.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 9

As at March 31, 2026, 6,243,496 stock options were

outstanding under the 2022 Plan and 8,629,678 awards were available for issue under the 2022 Plan.

The following summarizes information about stock option

activity during the nine months ended June 30, 2026:

activity during the six months ended March 31, 2026:

Schedule of stock option activity

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Outstanding, September 30, 2025

Outstanding, June 30, 2026

Exercisable, June 30, 2026

Outstanding, March 31, 2026

Exercisable, March 31, 2026

The following summarizes information about stock options

at June 30, 2026 by a range of exercise prices:

at March 31, 2026 by a range of exercise prices:

Schedule of summarizes information about stock options

Range of exercises prices

Number of outstanding

Weighted average remaining

Weighted average

contractual life (in years)

Range of exercises prices

remaining contractual

life (in years)

exercise price

vested options

exercise price (vested options)

The weighted average per share fair value

of stock options vested at June 30, 2026 was $ 4.73 (September 30, 2025:

At June 30, 2026, the weighted

average contractual life of stock options outstanding was 3.76 years (September 30, 2025:

5.22 years) and for

stock options exercisable was 3.23 years (September 30, 2025:

of stock options vested at March 31, 2026 was $ 4.52 (September 30, 2025:

At March 31, 2026, the

weighted average contractual life of stock options outstanding was 4.74 years (September 30, 2025:

5.22 years) and

for stock options exercisable was 3.94 years (September 30, 2025:

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 10

The aggregate intrinsic value is calculated as the

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

options that were in-the-money at June 30, 2026.

As of June 30, 2026, the Company had an obligation

to issue 205,000 stock options under the 2022 Plan to employees of the Company.

The terms of the stock options to be issued will be determined

by the Compensation Committee of the Board on the date of grant, in accordance with the 2022 Plan.

recognized share-based compensation recovery of $ 17.1

million and $ 15.7 million during

the three and nine months ended June 30, 2026 respectively (three and nine months ended June 30, 2025 expense

million and $ 7.8 million

respectively) in connection with the issuance and vesting of stock options in exchange for services, net of

the impact of forfeitures.

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

30, 2026 – Page 10

stock options that were in-the-money at March 31, 2026.

The Company recognized share-based compensation

expense of $ 0.3 and $ 1.4 million during the three and six months ended March 31, 2026 respectively (three and

six months ended March 31, 2025:

$ 1.4 and 3.5 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

Schedule of general and administrative expenses and research and development expenses

Three months ended June 30,

Nine months ended June 30,

Three months ended March 31,

Six months ended March 31,

General and administrative

Research and development

Research and development (recovery)

Total share-based compensation

An amount of approximately $ 4.7 million in share-based

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

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

The fair value of each stock option award is estimated

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The fair value of share-based compensation charges recognized during

the three and nine months ended June 30, 2026 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 three and six months ended March 31, 2026 was determined with reference to the quoted market price of the Company’s common stock

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

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

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Dividend rate

The fair value of stock compensation charges (recoveries)

recognized during the three and nine months ended June 30, 2026 and 2025 was determined with reference to the quoted market price of the

Company’s shares on the grant date.

The fair value of stock compensation charges recognized

during the three and six months ended March 31, 2026 and 2025 was determined with reference to the quoted market price of the Company’s

common stock 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

on the estimated average life of stock 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.

of previously granted and exercised stock 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 Interim 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

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 at March 31, 2026 was 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.

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 11

The accounting policies of the segment are the same

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it is not required to present financial information disaggregated by geographic region under ASC 280.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 11

The table below summarizes the significant expense categories regularly

reviewed by the CODM for the three and nine months ended June 30, 2026 and 2025 (in thousands):

reviewed by the CODM for the three and six months ended March 31, 2026 and 2025 (in thousands):

Schedule of summarizes the significant expenses

Three months ended June 30,

Nine months ended June 30,

Three months ended

Six months ended

Research and development costs

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Other research and development costs (a)

Total research and development costs (recovery)

Total research and development costs

General and administrative costs

Personnel costs

Non-cash share-based compensation (recovery)

Non-cash share-based compensation

Other general and administrative costs (b)

Total general and administrative costs (recovery)

Net income (loss)

Total general and administrative costs

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

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

Life Sciences Corp.

Notes to the Condensed Consolidated Interim Financial Statements

March 31, 2026 – Page 12

Note 8 Subsequent Events

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

Nasdaq Non-Compliance

As previously disclosed, on May 20,

2026, the Company received a deficiency notification letter from the Nasdaq Listing Qualifications Department (the “Nasdaq Staff”)

indicating that, as a result of the Company’s inability to timely file its Quarterly Report on Form 10-Q for the quarterly period

ended March 31, 2026, it is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all

required periodic financial reports with the SEC.

On July 20, 2026, the Company timely submitted its plan (“Compliance Plan”)

to the Nasdaq Staff to regain compliance with Nasdaq Listing Rule 5250(c)(1).

The Compliance Plan is currently under review by the Nasdaq

The Company expects the filing of this Quarterly Report

on Form 10-Q and the Quarterly Report on Form 10-Q for the period ended March 31, 2026 to cure the deficiency.

However, the Nasdaq Staff

will consider multiple factors when reviewing the Company’s Compliance Plan, including its past compliance history, the reasons

for the late filing, other corporate events that may occur within the review period, the Company’s overall financial condition and

its public disclosures.

If the Compliance Plan is not accepted by the Nasdaq Staff, the Company will have an opportunity to request a

hearing on the Nasdaq Staff’s determination before an independent Hearings Panel.

Chief Executive Officer Transition

On April 30, 2026, a special committee (the “Special

Committee”) composed of independent directors of the Board terminated the employment of Christopher Missling, PhD as the Company’s

Chief Executive Officer for Cause (as defined in the Employment Agreement, dated as of June 27, 2013, between Dr.

Missling and the Company,

as amended and restated), effective immediately, for, among other things, conduct that the Special Committee believed was inconsistent

with Company policy.

The Special Committee has also requested that Dr.

Missling resign as a member of the Board.

On May 4, 2026, the Board appointed Terrie Kellmeyer,

PhD as the Company’s Interim Chief Executive Officer.

Nasdaq Non-Compliance Matters

As previously disclosed, on May 20, 2026, the Company

received a deficiency notification letter from the Nasdaq Listing Qualifications Department (the “Nasdaq Staff”) indicating

that, as a result of the Company’s inability to timely file its Quarterly Report on Form 10-Q for the quarterly period ended March

31, 2026, it is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic

financial reports with the SEC.

On July 20, 2026, the Company timely submitted its plan (“Compliance Plan”) to the Nasdaq

Staff to regain compliance with Nasdaq Listing Rule 5250(c)(1).

The Compliance Plan is currently under review by the Nasdaq Staff.

The Company expects the filing of this Quarterly

Report on Form 10-Q and the Quarterly Report on Form 10-Q for the period ended June 30, 2026 to cure the deficiency.

However, the Nasdaq

Staff will consider multiple factors when reviewing the Company’s Compliance Plan, including its past compliance history, the reasons

for the late filing, other corporate events that may occur within the review period, the Company’s overall financial condition

and its public disclosures.

If the Compliance Plan is not accepted by the Nasdaq Staff, the Company will have an opportunity to request

a hearing on the Nasdaq Staff’s determination before an independent Hearings Panel.

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