What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-28 compared with 2026-02-09 · 426 added, 332 removed, 248 unchanged (75% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

December 31, 2025

Anavex Life Sciences Corp.

Condensed Consolidated Interim Balance Sheets

(in thousands, except share and per share amounts)

June 30, 2026

Anavex Life Sciences

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

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

preferred stock, par value $ 0.001 per share

common stock, par value $ 0.001 per share

Issued and outstanding:

and outstanding:

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

Additional paid-in capital

Accumulated deficit

Total Stockholders’ Equity

Total Liabilities and Stockholders’ Equity

Accompanying Notes to Condensed Consolidated Interim Financial Statements

paid-in capital

Stockholders’ Equity

Liabilities and Stockholders’ Equity

See Accompanying Notes to Condensed Consolidated Interim

Financial Statements

Anavex Life Sciences Corp.

1 unchanged sentence

(in thousands, except share and per share amounts)

Three months ended December 31,

Operating expenses

General and administrative

Research and development

Total operating expenses

Operating loss

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)

Other income (expense)

3 unchanged sentences

Total other income, net

Net loss before provision for income taxes

Net income (loss) before provision for income

Income tax expense, current

Net loss and comprehensive loss

Net Loss per share

Net income (loss) and comprehensive income (loss)

Net income (loss) per share

Basic and diluted

Weighted average number of shares outstanding

Basic and diluted

Accompanying Notes to Condensed Consolidated Interim Financial Statements

See Accompanying Notes to Condensed Consolidated Interim

Financial Statements

Anavex Life Sciences Corp.

1 unchanged sentence

(in thousands, except share and per share amounts)

Three months ended December 31,

Nine months ended June 30,

Cash Flows used in Operating Activities

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

Share based compensation

Share based compensation (recovery)

Changes in working capital balances related to operations:

6 unchanged sentences

Cash Flows provided by Financing Activities

Issuance of common shares, net of share issue costs

Issuance of common shares, net of share issuance costs

Payment for taxes related to cashless exercise of options

Proceeds from exercise of stock options

Net cash provided by financing activities

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

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

Cash and cash equivalents, beginning of period

2 unchanged sentences

Cash paid for state and local franchise taxes

Accompanying Notes to Condensed Consolidated Interim Financial Statements

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 December 31, 2025 and 2024

For the three months ended June 30, 2026 and 2025

(in 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

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 and taxes

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)

Paid-in Capital

Balance, October 1, 2025

$ ( 382,448 )

Shares issued under 2025 Sales Agreement

Share based compensation

Balance, December 31, 2025

$ ( 388,129 )

Shares issued pursuant to exercise of stock options

Share based compensation (recovery)

Balance, June 30, 2026

Balance, October 1, 2024

$ ( 336,071 )

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 and taxes

Share based compensation

Balance, December 31, 2024

$ ( 348,182 )

Accompanying Notes to Condensed Consolidated Interim Financial Statements

Balance, June 30, 2025

See Accompanying Notes to Condensed Consolidated Interim

Financial Statements

Life Sciences Corp.

3 unchanged sentences

Anavex Life Sciences Corp.

the “Company”) is a clinical stage biopharmaceutical company engaged in the development of differentiated therapeutics by

applying precision medicine to central nervous system (“CNS”) diseases with high unmet need.

Anavex analyzes genomic data

from clinical trials to identify biomarkers, which are used in the analysis of its clinical trials for the treatment of neurodegenerative

and neurodevelopmental diseases.

The Company’s focus is on developing innovative

treatments for Alzheimer’s disease, Parkinson’s disease, schizophrenia, neurodevelopmental, neurodegenerative, and rare diseases,

including Rett syndrome, and other central nervous system (CNS) disorders.

the “Company”) is a clinical stage biopharmaceutical company engaged in the development of novel therapeutics for the treatment

of central nervous system (“CNS”) diseases with high unmet medical needs.

The Company’s primary focus is on advancing

its lead compound ANAVEX 2-73 (blarcamesine) in the Company’s clinical program for the treatment of mild cognitive impairment due

to Alzheimer’s disease and mild Alzheimer’s disease, and for Rett syndrome and Fragile X syndrome, both of which are neurodevelopmental

rare diseases.

Note 2 Basis of Presentation

These accompanying unaudited condensed consolidated

interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”)

These accompanying unaudited condensed consolidated interim financial

statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”)

and accounting principles generally accepted in the United States of America (“U.S.

1 unchanged sentence

certain information and note disclosures normally included in the annual financial statements in accordance with U.S.

GAAP have been condensed

or omitted pursuant to such rules and regulations.

In the opinion of management, the disclosures are adequate to make the information

presented not misleading.

These accompanying unaudited condensed consolidated

interim financial statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are

necessary for fair presentation of the information contained herein.

The consolidated balance sheet as of September 30, 2025 was derived

from the audited annual financial statements but does not include all disclosures required by U.S.

The accompanying unaudited condensed

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, 2025 filed with the SEC on November 25, 2025.

been condensed or omitted pursuant to such rules and regulations.

In the opinion of management, the disclosures are adequate

to make the information presented not misleading.

These accompanying unaudited condensed consolidated interim financial

statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair

presentation of the information contained herein.

The consolidated balance sheet as of September 30, 2025 was

derived from the audited annual financial statements but does not include all disclosures required by U.S.

The accompanying unaudited

condensed 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, 2025 filed

with the SEC on November 25, 2025.

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

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.

Operating results for the nine months ended June 30, 2026 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

are in the clinical development stage and the Company cannot be certain that its research and development efforts will be successful or,

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

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.

are in the clinical or pre-clinical development stage and the Company cannot be certain that its research and development efforts will

be successful or, if successful, that its potential drug compounds will ever be approved for commercial sale or generate revenue.

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

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.

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

that these 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.

2 unchanged sentences

Other than our rights related to the 2025 Sales Agreement

(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.

(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

12 unchanged sentences

Principles of Consolidation

These unaudited condensed consolidated interim financial

statements include the accounts of Anavex Life Sciences Corp.

and its wholly-owned subsidiaries, Anavex Australia Pty Limited (“Anavex

Australia”), a company incorporated under the laws of Australia, Anavex Germany GmbH, a company incorporated under the laws of Germany,

and Anavex Canada Ltd., a company incorporated under the laws of the Province of Ontario, Canada.

All inter-company transactions and balances

have been eliminated.

These unaudited condensed consolidated interim

financial statements include the accounts of Anavex Life Sciences Corp.

and its wholly-owned subsidiaries, Anavex Australia

Pty Limited (“Anavex Australia”), a company incorporated under the laws of Australia, Anavex Germany GmbH,

a company incorporated under the laws of Germany, and Anavex Canada Ltd., a company incorporated under the laws of the Province

of Ontario, Canada.

All inter-company transactions and balances have been eliminated.

Fair Value Measurements

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

At June 30, 2026 and September 30, 2025, the Company

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

Recent Accounting Pronouncements

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.

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

Life Sciences Corp.

1 unchanged sentence

30, 2026 – Page 3

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards

Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-09, “Income Taxes:

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.

In November 2024, the FASB issued ASU No.

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

The amendments

amendments in ASU No.

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):

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.

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.

The Company is currently evaluating the impact of this guidance on its interim reporting processes and disclosures.

Note 3 Accrued Liabilities

4 unchanged sentences

Accrued compensation and benefits

Research grant repayable (Note 4)

Milestone-based contract accruals

2 unchanged sentences

Note 4 Other Income

As of December 31, 2025,

As of June 30, 2026,

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 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.

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

The grant was to be used to fund a clinical trial of the

Company’s lead compound, ANAVEX 2-73 (blarcamesine) related to Parkinson’s disease.

The grant income was deferred

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:

$ 24,956 and $ 37,231 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).

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.

Research and development

2 unchanged sentences

incentive income represents the income earned by Anavex Australia of the Australia R&D credit.

This cash incentive is received by

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

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

incentive is received by 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, 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 December 31, 2025, Incentive

At June 30, 2026, incentive

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

$ 0.7 million (AUD 1.1 million)) relating to Australia

R&D credits earned during the period that are expected to be reimbursed upon filing of the Company’s annual claim under this

The Australia R&D credit

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

data available.

Anavex Australia is able to continue to claim the R&D tax incentive for as long as it remains eligible and continues

to incur eligible research and development expenditures.

$ 0.7 million (AUD 1.1 million)) relating

to Australia R&D credits earned during the period that are expected to be reimbursed upon filing of the Company’s

annual claim under this program.

The Australia R&D credit 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

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

and relevant data available.

Anavex Australia is able to continue to claim the R&D tax incentive for as long as

it remains eligible and continues to incur eligible research and development expenditures.

Although the Company believes

that it has complied with all the relevant conditions of eligibility under the program for all periods claimed, the ATO has the right

to review the Company’s qualifying programs and related expenditures for a period of four years.

If such a review were to occur,

the ATO may have different interpretations of certain eligibility requirements.

If the ATO disagreed with the Company’s assessments

and any related subsequent appeals, it could require adjustment to and repayment of current or previous years’ claims already received.

Additionally, if the Company was unable to demonstrate a reasonably arguable position taken on such claims, the ATO could also assess

penalties and interest on any such adjustments.

Currently, the Company’s

tax incentive claims from 2020 to 2025 are open to potential review by the ATO.

Additionally, the period open for review is indefinite

if the ATO suspects fraud.

The Company has not provided any allowance for any such potential adjustments, should they occur in the future.

that it has complied with all the relevant conditions of eligibility under the program for all periods claimed, the

Australian Tax Office (“ATO”) has the right to review the Company’s qualifying programs and related expenditures for

a period of four years.

If such a review were to occur, the ATO may have different interpretations of certain eligibility requirements.

If the ATO disagreed with the Company’s assessments and any related subsequent appeals, it could require adjustment to and

repayment of current or previous years’ claims already received.

Additionally, if the Company was unable

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

Company’s tax incentive claims from 2022 to 2025 are open to potential review by the ATO.

Additionally, the period

open for review is indefinite if the ATO suspects fraud.

The Company has not provided any allowance for any such potential adjustments,

should they occur in the future.

Note 5 Equity Offerings

Common shares are voting and are entitled to dividends

as declared at the discretion of the Board of Directors.

Shares of the Company’s common stock have voting

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

Preferred Stock

The Company’s Board of Directors (the “Board”) has

the authority to issue preferred stock in one or more series and to fix the rights, preferences, privileges, restrictions and the number

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

The Board has the authority to issue preferred

stock in one or more series and to fix the rights, preferences, privileges, restrictions and the number of shares constituting any series

or the designation of the series.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 5

2025 Sales Agreement

13 unchanged sentences

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

1 unchanged sentence

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.

During the nine months ended June 30, 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.

2023 Purchase Agreement

4 unchanged sentences

In consideration for entering into the 2023 Purchase

Agreement, the Company issued to Lincoln Park 75,000 shares of common stock as a commitment fee (the “initial commitment shares”)

and agreed to issue up to an additional 75,000 shares pro rata, when and if, Lincoln Park purchased, at the Company’s discretion,

the $ 150.0 million aggregate commitment.

The Company determined the fair value of the initial commitment shares was $ 0.8 million with

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 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.

Agreement, the Company issued to Lincoln Park 75,000 shares of common stock as a commitment fee (the “initial commitment shares”) and

agreed to issue up to an additional 75,000 shares of common stock pro rata, when and if, Lincoln Park purchased, at the Company’s

discretion, the $ 150.0 million aggregate commitment.

The Company determined the fair value of the initial commitment shares

was $ 0.8 million with 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 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 and nine months ended June 30, 2026 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, 2026.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 2026 – Page 6

Note 6 Commitments and Contingencies

4 unchanged sentences

Schedule of operating lease costs

months ended December 31,

Three months ended June 30,

Nine months ended June 30,

Operating lease costs

Employee 401(k) Benefit Plan

4 unchanged sentences

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

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):

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

Schedule of contributions under the plan

Three months ended December 31,

Contributions to 401(k) plan

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.

Months Ended June 30,

Months ended June 30,

Contributions

to 401(k) plan

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

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.

Shareholder Class Action

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

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

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

Briefing on the appeal concluded October

30, 2025 , 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.

Life Sciences Corp.

to the Condensed Consolidated Interim Financial Statements

30, 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.

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.

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.

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.

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.

Matters Relating

to Former CEO

2026, a special committee (the “Special Committee”) composed of independent members 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).

Missling remains a member of the Board after

his termination.

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’s claims.

On July 6, 2026,

Missling filed a Summons With Notice in his individual capacity and derivatively on behalf of the Company in New York Supreme Court,

New York County, alleging “breach of fiduciary duty as independent board members” against Dr.

Jiong Ma, Dr.

Claus van der

Peter Donhauser and Dr.

Axel Paeger, who are independent directors on the Board, seeking money damages.

The Company anticipates

being named as a nominal defendant in this lawsuit.

The Company believes that this lawsuit is without merit and intends to vigorously

defend against it.

This lawsuit is in the early stages, and, at this time, no assessment can be made as to the likely outcome or whether

the outcome will be material to us.

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.

Life Sciences Corp.

1 unchanged sentence

30, 2026 – Page 8

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 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

Share–based Compensation

2015 Stock Option Plan

2 unchanged sentences

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

The maximum number of our common shares 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.

The maximum number of our 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.

No additional awards will be granted under the 2015

2019 Stock Option Plan

2 unchanged sentences

officers, employees, consultants and advisors of the Company.

The maximum number of our common shares reserved for

issue under the 2019 Plan was 6,000,000 shares, subject to adjustment in the event of a change of the Company’s capitalization.

During the year ended September 30, 2022, 406,453

options previously available under the 2019 Plan and the 2015 Plan became available under the 2022 Plan (as defined below).

The maximum number of shares of common stock reserved

for issue under the 2019 Plan was 6,000,000 shares, subject to adjustment in the event of a change of the Company’s capitalization.

No additional awards will be granted under the 2019

2022 Stock Option Plan

3 unchanged sentences

Under the terms of the 2022

Plan, 10,000,000 additional shares of Common Stock will be available for issuance under the 2022 Plan, in addition to the shares available

under the 2019 Plan and the 2015 Plan.

Any awards outstanding under a previous stock option plan will remain subject to and be paid under

such plan, and any shares subject to outstanding awards under a previous plan that subsequently cease to be subject to such awards (other

than by reason of settlement of the awards in shares) will automatically become available for issuance under the 2022 Plan.

Plan, 10,000,000 additional shares of common stock will be available for issuance under the 2022 Plan, in addition to the shares of common

stock available under the 2019 Plan and the 2015 Plan.

Any awards outstanding under a previous stock option plan will remain subject to

and will be paid under such plan, and any shares subject to outstanding awards under a previous plan that subsequently cease to be subject

to such awards (other than by reason of settlement of the awards in shares) will automatically become available for issuance under the

The 2022 Plan provides that it may be administered

1 unchanged sentence

The exercise price will be determined by the Board at the

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

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.

On April 17, 2025, the Board approved an amendment

3 unchanged sentences

the number of shares of common stock reserved for issuance under the 2022 Plan by 4,000,000 shares for a total of 14,000,000 .

the Amendment established a minimum vesting period of one year for all awards granted under the 2022 Plan and limited the discretion to

accelerate the vesting of awards upon a separation from service, with limited exceptions permitted.

the Amendment established a minimum vesting period of one year for all awards granted under the 2022 Plan and limited the discretion

to accelerate the vesting of awards upon a separation from service, with limited exceptions permitted.

Finally, the Amendment prohibited

liberal share recycling provisions.

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.

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

The following summarizes information about stock option

activity during the three months ended December 31, 2025:

activity during the nine months ended June 30, 2026:

Schedule of stock option activity

4 unchanged sentences

Outstanding, September 30, 2025

Outstanding, December 31, 2025

Exercisable, December 31, 2025

Outstanding, June 30, 2026

Exercisable, June 30, 2026

The following summarizes information about stock options

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

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

Schedule of summarizes information about stock options

1 unchanged sentence

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 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:

Weighted average remaining

Weighted average

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:

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 stock for the options

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

The Company recognized share-based compensation

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

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.

2 unchanged sentences

Schedule of general and administrative expenses and research and development expenses

Three months ended December 31,

Three months ended June 30,

Nine months ended June 30,

General and administrative

2 unchanged sentences

An amount of approximately $ 1.2 million in share-based

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

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:

compensation is expected to be recorded over the remaining term of such options 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, 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:

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.

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.

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

7 unchanged sentences

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 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

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.

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.

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):

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.

Life Sciences Corp.

1 unchanged sentence

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):

Schedule of summarizes the significant expenses

Three months ended June 30,

Nine months ended June 30,

Research and development costs

2 unchanged sentences

Personnel costs

Non-cash share-based compensation

Non-cash share-based compensation (recovery)

Other research and development costs (a)

Total research and development costs

Total research and development costs (recovery)

General and administrative costs

Personnel costs

Non-cash share-based compensation

Non-cash share-based compensation (recovery)

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,

Total general and administrative costs (recovery)

Net income (loss)

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

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.

5 unchanged sentences

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

There were no subsequent events or transactions that

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

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.

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