What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-12 compared with 2026-05-14 · 116 added, 67 removed, 100 unchanged (65% of the section changed)

5 unchanged sentences

and uncertainties.

“Risk Factors” of our Form 10-K for the year ended December 31, 2025, available on the Security

“Risk Factors” of our Form 10-K for the year ended December 31, 2025, available on the Securities

and Exchange Commission's (“SEC”) EDGAR website at www.sec.gov, for a discussion of the uncertainties, risks and assumptions

63 unchanged sentences

pursuant to a collaboration and asset purchase agreement with Reata.

Results of Operations for the Three Months Ended March 31, 2026

Compared to the Three Months Ended March 31, 2025 (rounded to the nearest thousand):

Results of Operations

Comparison of the three months ended June 30, 2026 and 2025

The following sets forth our results of operations

(in thousands):

Three Months Ended June 30,

Operating expenses:

Research and development

General and administrative

Total operating expenses

Loss from operations

Other income (expense):

Interest income

Interest expense

Total other income (expense)

Research and Development Expense

Research and development expenses was approximately

$1.2 million for both the three months ended June 30, 2026 and 2025, respectively.

The decrease of $0.6 million in clinical costs related

to Berubicin is offset by an increase in headcount and related expenses of $0.6 million.

R&D expense includes activity related to

completing and closing out the clinical trial for Berubicin as enrollment and patient treatment is complete.

Our future research and development

expense will be dependent on the timing and nature of any new asset we in-license or acquire and the development expenses related to such

General and Administrative Expense

General and administrative expense was approximately

$1,431,000 for the three months ended March 31, 2026 compared to approximately $1,095,000 for the comparable period in 2025.

in general and administrative expense was attributable to increases of approximately $31,000 in advertising and marketing expenses, $315,000

in legal and professional expenses, $99,000 in insurance expense and $58,000 in other expenses, which were offset by decreases of approximately

$52,000 in travel expenses, $49,000 in stock-based compensation and $66,000 in compensation expense.

$1.5 million and $1.2 million for the three months ended June 30, 2026 and 2025, respectively.

The increase of $0.3 million in general

and administrative expense was attributable to increases in headcount related expenses of $0.6 million, which is partially offset by a

decrease in professional services, including accounting consulting and investor relations fees of $0.3 million.

Other Income (Expense)

Other income (expense) was approximately $0.1 million

and $0.03 million for the three months ended June 30, 2026 and 2025, respectively.

The increase in other income was mainly due to an increase

in interest income due to higher cash balances in our money market accounts.

Comparison of the six months ended June 30, 2026 and 2025

The following sets forth our results of operations

(in thousands):

Six Months Ended June 30,

Operating expenses:

Research and development

General and administrative

Total operating expenses

Loss from operations

Other income (expense):

Interest income

Interest expense

Total other income (expense)

Research and Development Expense

Research and development expense was approximately

$3,544,000 for the three months ended March 31, 2026 compared to approximately $3,243,000 for the comparable period in 2025.

in research and development expense during the period is primarily attributable to an increase in professional expenses of $240,000, increased

headcount expenses of $61,000, drug manufacturing expenditures related to TPI 287 as well as other expenses.

R&D expense includes

activity related to completing and closing out the clinical trial for Berubicin as enrollment and patient treatment is complete.

in Berubicin clinical trial costs offset the increase in expenses above.

Our future research and development expense will be dependent

on the timing and nature of any new asset we in-license or acquire and the development expenses related to such asset.

The net loss for the three months ended March 31,

2026 was approximately $4,937,000 compared to approximately $4,301,000 for the comparable period in 2025.

The change in net loss is primarily

attributable to increased research and development costs and increase in professional expenses.

$4.7 million and $4.4 million for the six months ended June 30, 2026 and 2025, respectively.

The increase in research and development

expense of $0.3 million is primarily attributable to an increase in personnel related expense, including severance, of $1.1 million and

an increase in TPI-287 manufacturing and research costs of $0.5 million.

These increases are partially offset by decreases in clinical

costs related to Berubicin of $1.3 million.

R&D expense includes activity related to completing and closing out the clinical trial

for Berubicin as enrollment and patient treatment is complete.

Our future research and development expense will be dependent on the timing

and nature of any new asset we in-license or acquire and the development expenses related to such asset.

General and Administrative Expense

General and administrative expense was approximately

$2.9 million and $2.3 million for the six months ended June 30, 2026 and 2025, respectively.

The increase in general and administrative

expense of $0.6 million was attributable to increases of approximately $0.2 million in consulting costs, mainly attributable to business

development, $0.3 million in recruiting costs and $0.1 million in severance costs.

Other Income (Expense)

Other income (expense) was approximately $0.2 million

and $0.1 million for the six months ended June 30, 2026 and 2025, respectively.

The increase in other income was mainly due to an increase

in interest income due to higher cash balances in our money market accounts.

Liquidity and Capital Resources

On March 31, 2026, we had cash of approximately

$2,951,000 and we had a working capital deficit of approximately $504,000.

We have historically funded our operations from proceeds from

debt and equity sales.

On July 26, 2024, the Company entered into a Sales

Agreement (the “AGP ATM Sales Agreement”) with A.G.P./Alliance Global Partners (“AGP”).

Pursuant to the terms

of the AGP ATM Sales Agreement, we are permitted to sell from time to time through AGP, as sales agent or principal, shares of our common

During the period ended March 31, 2026, the Company sold 178,933 shares of common stock pursuant to the AGP ATM Sales Agreement

for net proceeds of approximately $501,000.

As of March 31, 2026, the Company sold 447,102 shares of common stock pursuant to the AGP

ATM Sales Agreement for net proceeds of approximately $23.7 million.

On May 4, 2026, the Company entered into Securities

Purchase Agreements (“SPAs”) for a private placement financing that resulted in gross proceeds of approximately $22.5 million.

Pursuant to the terms of the securities purchase agreements, the Company sold an aggregate of (i) 650,000 shares of its common stock (“Common

Stock”) at a purchase price of $2.30 per share and (ii) pre-funded warrants to purchase 9,143,479 shares of Common Stock at

a purchase price of $2.299 per pre-funded warrant.

The pre-funded warrants have an exercise price of $0.001 per share.

The private placement

closed on May 5, 2026.

We estimate that with the proceeds from the May

2026 private placement together with our existing cash on hand we have sufficient capital to fund operations beyond twelve months from

the issuance of these financial statements.

Our strategy is focused on identifying and securing the rights to development stage assets

and advancing any assets we obtain the rights to.

The timing, cost and ultimate success of which are all difficult to predict and as such

the foregoing estimate may prove to be inaccurate.

On June 30, 2026, we had cash of approximately

$20.0 million and we had a working capital surplus of approximately $18.2 million.

We have historically funded our operations from proceeds

from debt and equity sales.

On July 26, 2024, we entered into a Sales Agreement

(the “AGP ATM Sales Agreement”) with A.G.P./Alliance Global Partners (“AGP”).

Pursuant to the terms of the AGP

ATM Sales Agreement, we are permitted to sell from time to time through AGP, as sales agent or principal, shares of our common stock.

During the period ended June 30, 2026, the Company sold 178,933 shares of common stock pursuant to the AGP ATM Sales Agreement for net

proceeds of approximately $0.5 million.

As of June 30, 2026, the Company sold 447,102 shares of common stock pursuant to the AGP ATM Sales

Agreement for net proceeds of approximately $23.7 million since entering into the Sales Agreement in July 2024.

On May 4, 2026, we entered into a Purchase Agreement

for a private placement financing that resulted in gross proceeds of approximately $22.5 million.

Pursuant to the terms of the Purchase

Agreement, we sold an aggregate of (i) 650,000 shares of our common stock at a purchase price of $2.30 per share and (ii) pre-funded warrants

to purchase 9,143,479 shares of common stock at a purchase price of $2.299 per pre-funded warrant.

The pre-funded warrants have an

exercise price of $0.001 per share.

The private placement closed on May 5, 2026.

We believe that the net proceeds from this financing,

combined with our existing cash resources, are sufficient to fund planned operations beyond twelve months from the date these financial

statements are issued.

Our strategy is focused on identifying and securing the rights to development stage assets and advancing any assets

we obtain the rights to.

The timing, cost and ultimate success of which are all difficult to predict and as such the foregoing estimate

may prove to be inaccurate.

The cost of advancing any drug candidate will require significant additional capital.

We have no commitments for such additional needed financing and will likely be required to raise additional capital through the sale of

additional equity or debt securities.

We will need to raise significant

additional capital in the future in order to meet our future obligations and execute our business plan.

If we are unable to raise sufficient

funds, we will be required to develop and implement an alternative plan to further extend payables, reduce overhead or scale back our

business plan until sufficient additional capital is raised to support further operations.

There can be no assurance that such a plan

will be successful and if it is not successful we may need to cease operations entirely.

We have no commitments

for such additional needed financing and will likely be required to raise additional capital through the sale of additional equity or

debt securities.

We will need to raise significant additional capital

in the future in order to meet our future obligations and execute our business plan.

If we are unable to execute our business plan, we

will be required to develop and implement an alternative plan to further extend payables, reduce overhead or scale back our business plan

until sufficient additional capital is raised to support further operations and the execution of our business plan.

There can be no assurance

that such a plan will be successful and if it is not successful we may need to cease operations entirely.

Summary of Cash Flows

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Net cash used in operating activities was approximately

$4,649,000 and $3,242,000 for the three months ended March 31, 2026 and 2025, respectively, and mainly included payments made for clinical

trial costs, officer compensation, insurance, marketing and professional fees to our consultants, attorneys and accountants.

$8.2 million and $8.6 million for the six months ended June 30, 2026 and 2025, respectively, and mainly included payments made for clinical

trial costs, officer compensation, insurance, consulting fees, attorneys and accountants.

Cash used in investing activities

Net cash used in investing activities was approximately

$6,000 for the three months ended March 31, 2026, related to the purchase of property and equipment.

Net cash used in investing activities

was $0 for the three months ended March 31, 2025.

Net cash used in investing activities was de minimis

for the six months ended June 30, 2026 and 2025, respectively.

Cash provided by financing activities

Net cash provided by financing activities was approximately

$405,000 for the three months ended March 31, 2026, related to the sale of common stock, which was partially offset by the repayment of

notes payable.

Net cash provided by financing activities was approximately $9,828,000 for the three months ended March 31, 2025, related

to the sale of common stock, which was partially offset by the repayment of notes payable.

$21.0 million and $14.3 million for the six months ended June 30, 2026 and 2025, respectively.

Net cash provided by financing activities

for the six months ended June 30, 2026 included proceeds from the Offering, partially offset by the repayments on the notes payable.

cash provided by financing activities for the six months ended June 30, 2025 related to the sale of common stock and proceeds from our

subscription receivable related to the AGP ATM Sales Agreement, which were partially offset by the repayments of notes payable.

Off-balance Sheet Arrangements

As of March 31, 2026, we did not have any relationships

As of June 30, 2026, we did not have any relationships

with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities,

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We do not have any material commitments for capital

expenditures, although we are required to pay certain milestones fees to Reata and Cortice as described in the section “Overview”

expenditures, although we are required to pay certain milestones fees to Reata and Cortice as described in Note 5 - Commitments and Contingencies

to the financial statements included elsewhere in this Form 10-Q.

Critical Accounting Policies and Estimates

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis