FENNEC PHARMACEUTICALS INC. 10-K

Item 9A. Controls and Procedures ​ Evaluation of Disclosure Controls and Procedures ​ The Company’s management, with the participation of our Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") as of December 31, 2025. The Company’s disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports the Company files under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, to allow for timely decisions regarding required disclosures. In designing and evaluating our disclosure controls and procedures, the Company’s management recognizes that disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Our disclosure controls and procedures have been designed to meet reasonable assurance standards. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints that require the Company’s management to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. ​ Based on this evaluation, the Company's Chief Executive Officer and Chief Financial Officer have concluded that, as of December 31, 2025, the Company's disclosure controls and procedures were effective. ​ Management's Report on Internal Control over Financial Reporting ​ The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The Company's management evaluated the effectiveness of its internal control over financial reporting based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on that evaluation, the Company’s management has concluded that, as of December 31, 2025, our internal controls over financial reporting were effective. ​ Changes in Internal Control over Financial Reporting There were no changes to the Company’s internal control over financial reporting during the fourth quarter of 2025 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. 91 Table of Contents Inherent Limitation on the Effectiveness of Internal Controls The effectiveness of any system of internal control over financial reporting is subject to inherent limitations, including the exercise of judgment in designing, implementing, operating, and evaluating the controls and procedures, and the inability to eliminate misconduct completely. Accordingly, any system of internal control over financial reporting can only provide reasonable, not absolute, assurances. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We intend to continue to monitor and upgrade our internal controls as necessary or appropriate for our business but cannot assure that such improvements will be sufficient to provide us with effective internal control over financial reporting. ​ Item 9B. Other Information Insider Adoption or Termination of Trading Arrangements During the year ended December 31, 2025, two members of our Board of Directors adopted trading arrangements intended to satisfy the Rule 10b5-1 affirmative defense. Rostislav Raykov adopted a trading arrangement on September 19, 2025 , covering the disposition of up to 109,184 shares of the Company’s common shares, which is scheduled to terminate on June 9, 2026 . Chris Rallis adopted a trading arrangement on May 19, 2025 , covering the disposition of up to 18,406 shares of the Company’s common shares, which will terminate on June 9, 2026 , unless earlier terminated in accordance with its terms. ​ No additional directors or officers informed us of the adoption, modification or termination of a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408. ​ Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. ​ PART III Item 10. Directors, Executive Officers and Corporate Governance The Company has an insider trading policy that governs the purchase, sale, and other dispositions of its securities by directors, officers, employees, and contractors, as well as by the Company itself. We believe that the insider trading policy is reasonably designed to promote compliance with insider trading laws, rules, and regulations and applicable listing standards. A copy of our insider trading policy is filed with this Annual Report on Form 10-K as Exhibit 19. The remaining information required by this Item is incorporated herein by reference from our Proxy Statement for our 2026 Annual Meeting of Stockholders. ​ Item 11. Executive Compensation The information required by this Item is incorporated herein by reference from our Proxy Statement for our 2026 Annual Meeting of Stockholders. ​ Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information required by this Item is incorporated herein by reference from our Proxy Statement for our 2026 Annual Meeting of Stockholders. ​ Item 13. Certain Relationships and Related Transactions, and Director Independence The information required by this Item is incorporated herein by reference from our Proxy Statement for our 2026 Annual Meeting of Stockholders. ​ 92 Table of Contents Item 14. Principal Accounting Fees and Services The information required by this Item is incorporated herein by reference from our Proxy Statement for our 2026 Annual Meeting of Stockholders. ​ 93 Table of Contents PART IV Item 15. Exhibits and Financial Statement Schedules (a) The following documents are included as part of this Annual Report: 1. Financial Statements – See Index to Financial Statements on page F-1. 2. All schedules are omitted as the information required is inapplicable or the information is presented in the financial statements. 3. Exhibits: ​ ​ Exhibit No. ​ ​ ​ Description ​ ​ ​ Location 3.1 Notice of Articles dated August 25, 2011 Exhibit 3.2I to the Form 8-K of the Company filed August 26, 2011 3.2 Articles dated August 25, 2011 Exhibit 3.2II to the Form 8-K of the Company filed August 26, 2011 3.3 Notice of Alteration Dated September 3, 2014 Exhibit 3.1 to the Form 8-K of the Company filed September 9, 2014 4.1 ​ Fennec Pharmaceuticals, Inc. Description of the Registrant’s Securities ​ Exhibit 4.1 to the Form 10-K of the Company filed March 29, 2024 ​ ​ ​ ​ ​ 10.1 Fennec Pharmaceuticals, Inc. 2020 Equity Incentive Plan* Schedule B to the Management Proxy Circular of the Company filed April 25, 2025 10.2 Executive Employment Agreement dated May 3, 2010 by and between Fennec Pharmaceuticals Inc. and Rostislav Raykov* Exhibit 10.28 to the Form 10-Q of the Company filed May 14, 2010 10.3 Form of Independent Director Agreement, dated May 3, 2010 Exhibit 10.31 to the Form 10-Q of the Company filed May 14, 2010 10.4 Executive Employment Agreement dated November 12, 2015 by and between Fennec Pharmaceuticals Inc. and Robert Andrade* Exhibit 10.40 to the Form 10-Q of the Company filed November 12, 2015 10.5 Form of Stock Option Award Agreement under 2020 Equity Incentive Plan* Exhibit 10.5 to the Form 10-K of the Company filed March 26, 2025 10.6 Form of Restricted Stock Award Agreement under 2020 Equity Incentive Plan* Exhibit 10.6 to the Form 10-K of the Company filed March 26, 2025 ​ ​ ​ ​ ​ 10.7 ​ Confidential Separation Agreement between Fennec Pharmaceuticals (EU) Limited, Fennec Pharmaceuticals Inc., and Adrian Haigh, dated June 30, 2024* ​ Exhibit 10.1 to the Form 8-K of the Company filed July 2, 2024 ​ ​ ​ ​ ​ 10.8 ​ Confidential Separation Agreement between Fennec Pharmaceuticals, Inc. and Rostislav Raykov, dated August 5, 2024* ​ Exhibit 10.1 to the Form 8-K of the Company filed August 7, 2024 ​ ​ ​ ​ ​ 10.9 Executive Employment Agreement between Fennec Pharmaceuticals, Inc. and Jeffrey S. Hackman, dated August 5, 2024* Exhibit 10.2 to the Form 8-K of the Company filed August 7, 2024 ​ ​ ​ ​ ​ 94 Table of Contents ​ ​ Exhibit No. ​ ​ ​ Description ​ ​ ​ Location 10.10 ​ At The Market Offering Agreement, dated October 30, 2020, between Fennec Pharmaceuticals Inc. and H.C. Wainwright & Co., LLC ​ Exhibit 1.1 to the Form 8-K of the Company filed October 30, 2020 10.11 ​ Securities Purchase Agreement, dated as of August 1, 2022, by and between Fennec Pharmaceuticals Inc. and Petrichor Opportunities Fund I LP ​ Exhibit 10.1 to the form 8-K of the Company filed August 1, 2022 ​ ​ ​ ​ ​ 10.12 ​ First Closing Senior Secured Convertible Note, dated August 19, 2022, by and between Fennec Pharmaceuticals Inc. and Petrichor Opportunities Fund I LP ​ Exhibit 4.1 to the form 8-K of the Company filed August 22, 2022 ​ ​ ​ ​ ​ 10.13 ​ Second Closing Senior Secured Convertible Note, dated September 23, 2022, by and between Fennec Pharmaceuticals Inc. and Petrichor Opportunities Fund I LP ​ Exhibit 4.1 to the form 8-K of the Company filed September 26, 2022 ​ ​ ​ ​ ​ 10.14 ​ First Amendment to Securities Purchase Agreement, dated as of December 4, 2023, between Fennec Pharmaceuticals Inc. and Petrichor Opportunities Fund I LP ​ Exhibit 10.1 to the Form 8-K of the Company filed December 6, 2023 ​ ​ ​ ​ ​ 10.15 ​ Third Closing Senior Secured Convertible Note, dated as of December 4, 2023, between Fennec Pharmaceuticals Inc. and Petrichor Opportunities Fund I LP ​ Exhibit 4.1 to the Form 8-K of the Company filed December 6, 2023 ​ ​ ​ ​ ​ 10.16 ​ License and Supply Agreement, dated March 15, 2024, between Fennec Pharmaceuticals, Inc. and Norgine Pharma UK Limited ​ Exhibit 10.1 to the Form 8-K of the Company filed March 21, 2024 ​ ​ ​ ​ ​ 10.17 ​ Waiver and Redemption Agreement, dated December 18, 2024, between Fennec Pharmaceuticals Inc. and Petrichor Opportunities Fund I LP ​ Exhibit 10.1 to the Form 8-K of the Company filed December 20, 2024 ​ ​ ​ ​ ​ 19 Fennec Pharmaceuticals, Inc. Insider Trading Policy, dated July 11, 2009. Exhibit 10.16 to the Form 10-K of the Company filed March 29, 2024 21 Subsidiaries Exhibit 21 to the 10-K of the Company filed February 14, 2020 23.1 Consent of Haskell & White LLP, Independent Registered Public Accounting Firm Filed herewith ​ ​ ​ ​ ​ 31.1 ​ Certification of Chief Executive Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 ​ Filed herewith ​ ​ 31.2 ​ Certification of Chief Financial Officer of the Company in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 ​ Filed herewith ​ ​ 32.1 ​ Certification of Chief Executive Officer and Chief Financial Officer of the Company in accordance with Section 906 of the Sarbanes-Oxley Act of 2002 ​ Filed herewith ​ ​ 97 ​ Fennec Pharmaceuticals, Inc. Incentive Compensation Recovery Policy ​ Exhibit 97 to the Form 10-K of the Company filed March 29, 2024 ​ ​ ​ ​ ​ 99.1 ​ Press Release for Fiscal Year Ended December 31, 2025 ​ Filed herewith 95 Table of Contents ​ ​ Exhibit No. ​ ​ ​ Description ​ ​ ​ Location ​ ​ 101.1 ​ Interactive Data File ​ Filed herewith ​ ​ ​ ​ ​ 104 ​ Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document ​ Filed herewith ​ * Indicates a management contract or compensatory plan. ​ Item 16. Form 10-K Summary None. ​ 96 Table of Contents SIGNATURES Pursuant to the requirements of Section 13 of 15(d) the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized. Fennec Pharmaceuticals Inc. ​ By: /s/ Jeffrey Hackman Jeffrey Hackman Chief Executive Officer Date: March 27, 2026 ​ We, the undersigned directors and officers of Fennec Pharmaceuticals Inc., do hereby constitute and appoint Jeffrey Hackman, as our true and lawful attorney-in-fact and agent with power of substitution, to do any and all acts and things in our name and behalf in our capacities as directors and officers and to execute any and all instruments for us and in our names in the capacities indicated below, which such attorney-in-fact and agent may deem necessary or advisable to enable said corporation to comply with the Securities Exchange Act of 1934, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission, in connection with this Annual Report on Form 10-K, including specifically but without limitation, power and authority to sign for us or any of us in our names in the capacities indicated below, any and all amendments hereto; and we do hereby ratify and confirm all that said attorney-in-fact and agent, shall do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. ​ Signatures ​ ​ ​ Title ​ ​ ​ Date /s/ Jeffrey Hackman Chief Executive Officer March 27, 2026 Jeffrey Hackman (principal executive officer) and Director /s/ Robert Andrade Chief Financial Officer March 27, 2026 Robert Andrade (principal financial officer and principal accounting officer) /s/ Dr. Khalid Islam Director March 27, 2026 Dr. Khalid Islam /s/ Chris A. Rallis Director March 27, 2026 Chris A. Rallis /s/ Marco Brughera Director March 27, 2026 Marco Brughera /s/ Rostislav Raykov ​ Director March 27, 2026 Rostislav Raykov ​ ​ ​ ​ ​ ​ ​ ​ ​ /s/ Jodi Cook Director March 27, 2026 Jodi Cook ​ ​ ​ 97 Table of Contents FENNEC PHARMACEUTICALS INC. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS ​ Report of Independent Registered Public Accounting Firm (PCAOB ID : 200 ) ​ ​ ​ F-2 ​ ​ ​ Consolidated Balance Sheets ​ F-5 ​ ​ ​ Consolidated Statements of Operations ​ F-6 ​ ​ ​ Consolidated Statements of Shareholders’ Deficit ​ F-7 ​ ​ ​ Consolidated Statements of Cash Flows ​ F-8 ​ ​ ​ Notes to the Consolidated Financial Statements ​ F-9 ​ ​ ​ F-1 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ​ ​ To the Shareholders and Board of Directors Fennec Pharmaceuticals Inc. ​ Opinion on the Consolidated Financial Statements ​ We have audited the accompanying consolidated balance sheets of Fennec Pharmaceuticals Inc. (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations, shareholders’ equity (deficit), and cash flows for each of the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025 and 2024, and the consolidated results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America. ​ Basis for Opinion ​ These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. ​ We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, audits of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. ​ Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. ​ Critical Audit Matter ​ The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgment. ​ ​ F-2 Table of Contents ​ REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued) ​ The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates. ​ Global Distributors - Estimated Product Allowances and Discounts ​ Critical Audit Matter Description ​ As described in Note 2 to the consolidated financial statements, the Company recognizes revenues based on the net sales price, which includes estimates of variable consideration for which reserves are established primarily from rebates, chargebacks, discounts, returns, and other allowances. Further, certain distributors provide distinct and estimable services to the Company in exchange for product allowances. The estimated fair value of distinct and estimable services performed by the distributor and the attribution of those amounts to the period of benefit are important factors in the determination of net sales price and requires subjective management assumptions. Allowances provided to distributors in excess of the estimated fair value of services received by the Company are presented as sales discounts. Allowances provided to such distributors during the year ended December 31, 2025 for distinct and estimable distributor services totaled $5.4 million, of which $1.7 million is presented as prepaid expenses as of December 31, 2025. ​ How the Critical Audit Matter was Addressed in the Audit ​ Auditing estimates of the amount and timing of distinct distributor services provided to the Company was challenging and judgmental because the estimates involve significant measurement uncertainty about the fair value of services received by the Company and the periods that such services were rendered to the Company. A high degree of auditor judgment, subjectivity and effort was required in performing procedures and evaluating evidence related to management’s assumptions in these areas. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included, among others: ​ ◾ We obtained and read related customer contracts to obtain an understanding of the contractual responsibilities of the parties; we evaluated management’s accounting policies and practices with respect to distinct distributor provided services for compliance with accounting principles generally accepted in the United States of America; and we obtained an understanding of management’s monitoring and oversight of such services. ​ ◾ Through interviews, inquiries, observations, and examination of Company-prepared analyses, we obtained an understanding of the significant management assumptions behind the potentially significant components of the distributor allowances, including the nature of each allowance and the amounts estimated by management. Through interviews, inquiries, and observations, we obtained an understanding of the significant management assumptions supporting the fair value estimates of distinct distributor services and the timing of performance of services. ​ F-3 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (Continued) ​ ◾ We assessed the methodologies used to determine the allowances and the fair value of distinct distributor services and tested estimated percentages by corroborating the underlying data used to develop the estimate, which included evaluating the completeness and accuracy of such data. Our testing of allowances included comparing key assumptions to customer contracts, payment data, and other third-party sources, as applicable. Our testing of the fair value of distinct distributor services included evaluating management’s estimate of costs to perform necessary services and assessing the reasonableness of estimated timeframes associated with the performance of those services. ​ ◾ We evaluated information subsequent to the balance sheet date to determine whether there was any new information that would require adjustment to the previously estimated amounts. ​ ​ ​ /s/ Haskell & White LLP HASKELL & WHITE LLP ​ We have served as the Company’s auditor since 2017. ​ Irvine, California March 27, 2026 ​ ​ ​ F-4 Table of Contents Fennec Pharmaceuticals Inc. Consolidated Balance Sheets (U.S. dollars and shares in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ Assets ​ ​ ​ ​ ​ Current assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 36,788 ​ $ 26,634 Accounts receivable, net ​ ​ 23,221 ​ ​ 12,884 Prepaid expenses ​ 3,738 ​ 3,080 Inventory ​ ​ 1,565 ​ ​ 1,060 Other current assets ​ 1,731 ​ 466 Total current assets ​ ​ 67,043 ​ ​ 44,124 ​ ​ ​ ​ ​ ​ ​ Non-current assets ​ ​ ​ ​ ​ ​ Non-current accounts receivable, net ​ ​ 2,791 ​ ​ — Other non-current assets, net of amortization ​ ​ 717 ​ ​ 822 Total non-current assets ​ ​ 3,508 ​ ​ 822 Total assets ​ $ 70,551 ​ $ 44,946 ​ ​ ​ ​ ​ Liabilities and shareholders’ equity/(deficit) ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ Accounts payable ​ $ 4,635 ​ $ 3,241 Accrued liabilities ​ 5,635 ​ 3,428 Operating lease liability - current ​ ​ — ​ ​ 2 Contract liability - current ​ ​ 248 ​ ​ 248 Total current liabilities ​ 10,518 ​ 6,919 ​ ​ ​ ​ ​ ​ ​ Non-current liabilities ​ ​ ​ ​ ​ ​ Term loan ​ ​ — ​ ​ 18,206 PIK interest ​ ​ — ​ ​ 1,271 Debt discount ​ ​ — ​ ​ ( 139 ) Contract liability - long-term ​ ​ 24,561 ​ ​ 24,561 Total non-current liabilities ​ ​ 24,561 ​ ​ 43,899 Total liabilities ​ 35,079 ​ 50,818 ​ ​ ​ ​ ​ Commitments and contingencies (Note 7) ​ ​ ​ ​ ​ ​ ​ ​ ​ Shareholders’ equity/(deficit) ​ ​ ​ ​ Common stock, no par value; unlimited shares authorized; 34,163 shares issued and outstanding ( 2024 ‑ 27,527 ) ​ 189,906 ​ 145,608 Additional paid-in capital ​ 73,745 ​ 66,958 Accumulated deficit ​ ( 229,422 ) ​ ( 219,681 ) Accumulated other comprehensive income ​ 1,243 ​ 1,243 Total shareholders’ equity/(deficit) ​ 35,472 ​ ( 5,872 ) Total liabilities and shareholders’ equity/(deficit) ​ $ 70,551 ​ $ 44,946 ​ (The accompanying notes are an integral part of these consolidated financial statements) ​ F-5 Table of Contents Fennec Pharmaceuticals Inc. Consolidated Statements of Operations (U.S. dollars and shares in thousands, except per share information) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Revenue ​ ​ ​ ​ ​ ​ Product sales, net ​ $ 44,642 ​ $ 29,580 Licensing revenue ​ ​ — ​ ​ 17,958 Total net revenues ​ ​ 44,642 ​ ​ 47,538 ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ Cost of product sales ​ ​ 3,764 ​ ​ 3,184 Research and development ​ 250 ​ 307 Selling and marketing ​ ​ 18,616 ​ ​ 18,426 General and administrative ​ 28,294 ​ 23,053 ​ ​ ​ ​ ​ Total operating expenses ​ 50,924 ​ 44,970 (Loss)/income from operations ​ ​ ( 6,282 ) ​ ​ 2,568 ​ ​ ​ ​ ​ Other income/(expense) ​ ​ ​ ​ Unrealized foreign exchange gain/(loss) ​ ​ 28 ​ ​ ( 82 ) Amortization expense ​ ​ ( 64 ) ​ ​ ( 89 ) Unrealized loss on securities ​ ( 2 ) ​ ( 81 ) Loss on debt extinguishment (Note 8) ​ ​ ( 2,022 ) ​ ​ — Interest income ​ 787 ​ 1,682 Interest expense ​ ​ ( 2,080 ) ​ ​ ( 4,069 ) Total other expense ​ ( 3,353 ) ​ ( 2,639 ) Loss before income tax ​ ​ ( 9,635 ) ​ ​ ( 71 ) Income tax ​ ​ ( 106 ) ​ ​ ( 365 ) Net loss ​ $ ( 9,741 ) ​ $ ( 436 ) ​ ​ ​ ​ ​ ​ ​ Basic net loss per common share ​ $ ( 0.34 ) ​ $ ( 0.02 ) Diluted net loss per common share ​ $ ( 0.34 ) ​ $ ( 0.02 ) Weighted-average number of common shares outstanding basic ​ ​ 28,577 ​ ​ 27,294 Weighted-average number of common shares outstanding diluted ​ ​ 28,577 ​ ​ 27,294 ​ (The accompanying notes are an integral part of these consolidated financial statements) ​ ​ ​ ​ ​ F-6 Table of Contents Fennec Pharmaceuticals Inc. Consolidated Statements of Shareholders’ Equity (Deficit) (U.S. dollars and shares in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ Other ​ Total ​ ​ Common Stock ​ Paid-in ​ Accumulated ​ Comprehensive ​ Shareholders’ ​ ​ ​ ​ Number (Note 6) ​ ​ ​ Amount ​ ​ ​ Capital ​ ​ ​ Deficit ​ ​ ​ Income ​ ​ ​ Deficit ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31, 2023 ​ 27,027 ​ $ 144,307 ​ $ 62,073 ​ $ ( 219,245 ) ​ $ 1,243 ​ $ ( 11,622 ) Equity-based compensation - employees ​ — ​ ​ — ​ ​ 5,061 ​ ​ — ​ ​ — ​ ​ 5,061 Exercise of stock options 342 ​ 1,301 ​ — ​ — ​ — ​ 1,301 Restricted stock release 158 ​ — ​ ( 176 ) ​ — ​ — ​ ( 176 ) Net loss — ​ — ​ — ​ ( 436 ) ​ — ​ ( 436 ) Balance at December 31, 2024 27,527 ​ ​ 145,608 ​ ​ 66,958 ​ ​ ( 219,681 ) ​ ​ 1,243 ​ ​ ( 5,872 ) Equity-based compensation - employees — ​ — ​ 7,033 ​ — ​ — ​ 7,033 Issuance of common stock, net of offering costs ​ 6,037 ​ ​ 42,049 ​ ​ — ​ ​ — ​ ​ — ​ ​ 42,049 Warrant exercise ​ 9 ​ ​ 59 ​ ​ ( 59 ) ​ ​ — ​ ​ — ​ ​ — Exercise of stock options 400 ​ 2,190 ​ — ​ — ​ — ​ 2,190 Restricted stock release ​ 190 ​ ​ — ​ ​ ( 187 ) ​ ​ — ​ ​ — ​ ​ ( 187 ) Net loss — ​ — ​ — ​ ( 9,741 ) ​ — ​ ( 9,741 ) Balance at December 31, 2025 34,163 ​ $ 189,906 ​ $ 73,745 ​ $ ( 229,422 ) ​ $ 1,243 ​ $ 35,472 (The accompanying notes are an integral part of these consolidated financial statements) ​ F-7 Table of Contents Fennec Pharmaceuticals Inc. Consolidated Statements of Cash Flows (U.S. dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ ​ ​ ​ ​ Cash flows provided by (used in)/provided by: ​ ​ ​ ​ Operating activities: ​ ​ ​ ​ Net loss ​ $ ( 9,741 ) ​ $ ( 436 ) Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: ​ ​ ​ ​ Inventory reserve ​ ​ 773 ​ ​ 517 Allowance for credit losses ​ ​ 2,103 ​ ​ 3,803 Amortization of contract asset ​ ​ 103 ​ ​ 800 Amortization of debt access fees ​ — ​ 21 Amortization of debt discount ​ ​ 65 ​ ​ 138 Unrealized loss on securities ​ ​ 2 ​ ​ 81 Equity-based compensation ​ 7,033 ​ 5,061 Loss on debt extinguishment ​ ​ 2,022 ​ ​ — PIK interest ​ ​ — ​ ​ 52 Changes in operating assets and liabilities: ​ ​ ​ ​ Accounts receivable ​ ​ ( 12,440 ) ​ ​ ( 7,873 ) Prepaid expenses ​ ( 658 ) ​ ( 505 ) Inventory ​ ​ ( 1,278 ) ​ ​ 579 Other assets ​ ( 1,267 ) ​ 796 Other non-current assets ​ ​ ( 2,791 ) ​ ​ — Accounts payable ​ 1,394 ​ ( 537 ) Accrued liabilities ​ 2,207 ​ ( 326 ) Contract liability ​ ​ — ​ ​ 24,809 Net cash (used in)/provided by operating activities ​ ( 12,473 ) ​ 26,980 ​ ​ ​ ​ ​ Financing activities: ​ ​ ​ ​ Issuance of shares, options exercise ​ 2,190 ​ 1,301 Proceeds form the issuance of common stock, net of offering costs ​ ​ 42,049 ​ ​ — Payment of long-term debt ​ ​ ( 19,477 ) ​ ​ ( 13,000 ) Prepayment penalty on debt repayment ​ ​ ( 1,948 ) ​ ​ — Cash paid for taxes on restricted share release ​ ​ ( 187 ) ​ ​ ( 176 ) Deferred issuance costs ​ — ​ ( 1,740 ) Net cash provided by/(used in) by financing activities ​ 22,627 ​ ( 13,615 ) ​ ​ ​ ​ ​ ​ ​ Increase in cash and cash equivalents ​ ​ 10,154 ​ ​ 13,365 Cash and cash equivalents - Beginning of year ​ ​ 26,634 ​ ​ 13,269 Cash and cash equivalents - End of year ​ $ 36,788 ​ $ 26,634 ​ ​ ​ ​ ​ ​ ​ Supplemental disclosures of cash flow information: ​ ​ ​ ​ ​ ​ Cash paid for interest ​ $ 4,160 ​ $ 3,821 Cash paid for taxes ​ $ 748 ​ $ — Non-cash investing and financing activities: ​ ​ ​ ​ Right-of-use assets obtained in exchange for operating lease liabilities ​ $ — ​ $ 2 Financed insurance policy ​ $ 393 ​ $ 386 ​ ​ ​ (The accompanying notes are an integral part of these consolidated financial statements) ​ ​ F-8 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ 1. Nature of Business and Liquidity Fennec Pharmaceuticals Inc., a corporation existing under the laws of British Columbia (“Fennec,” “the Company,” “we,” “us,” or “our”) was originally formed as a British Columbia corporation under the name Adherex Technologies Inc. and subsequently changed its name on September 3, 2014. Fennec, together with its wholly owned subsidiaries Oxiquant, Inc. and Fennec Pharmaceuticals, Inc., both Delaware corporations, Cadherin Biomedical Inc., a Canadian corporation, and Fennec Pharmaceuticals (EU) Limited, an Ireland company (“Fennec Limited”), collectively referred to herein as the “Company,” is a biopharmaceutical company with one FDA approved product developed to reduce the risk of ototoxicity associated with cisplatin in pediatric patients one month of age and older with localized, non-metastatic solid tumors. With the exception of Fennec Pharmaceuticals, Inc., and Fennec Limited, all subsidiaries are inactive. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) that are applicable to a going concern which contemplates that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. During the year ended December 31, 2025, the Company incurred a net loss from operations of $ 6,282 . At December 31, 2025, it had an accumulated deficit of $ 229,422 and had experienced negative cash flows from operating activities in the amount of $ 12,473 for the year ended December 31, 2025. Senior Secured Convertible Notes In August 2022, the Company entered into a Securities Purchase Agreement with Petrichor Opportunities Fund I LP providing for the issuance of up to $ 45,000 of senior secured floating-rate convertible notes due August 2027. Between August 2022 and December 2023, the Company issued an aggregate of $ 30,000 of Notes under this agreement. ​ In December 2024, the Company redeemed approximately $ 13,000 of Notes, including payment-in-kind interest. ​ On November 17, 2025, the Company redeemed all remaining outstanding Notes for an aggregate redemption price of approximately $ 21,700 , including principal, accrued interest, and applicable redemption fees. The redemption was funded primarily using proceeds from the Company’s November 2025 public equity offering (Note 6). ​ As of December 31, 2025, no convertible notes were outstanding. ​ License Agreement ​ In March 2024, the Company announced that is had secured an exclusive licensing agreement with Norgine Pharma UK Limited (“Norgine”), to commercialize PEDMARQSI in Europe, Australia and New Zealand. The deal provided the Company with approximately $ 43 million upfront, with the potential of another approximately $ 230 million in future royalties and milestone payments. ​ The Company believes current funds, which include funds from the upfront payment from Norgine, provide sufficient funding for the Company to carry out its planned activities, including the continuation of commercialization efforts for at least the next twelve months of PEDMARK ® . These financial statements do not reflect the potentially material adjustments in the carrying values of assets and liabilities, the reported expenses, and the balance sheet classifications used, that would be necessary if the going concern assumption were not appropriate. ​ F-9 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ 2. Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Fennec and its wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. Significant estimates include revenue recognition, amount and timing of marketing and other services performed by certain distributors, allowance against trade receivables, and measurement of stock-based compensation. Actual results could differ from those estimates. Credit Losses ​ The Company estimates and records a provision for its expected credit losses related to its trade receivables. The Company considers historical collection rates, the current financial status of its customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. ​ To determine the provision for credit losses for accounts receivable, the Company has disaggregated its accounts receivable by class of customer, as the Company determined that risk profile of its customers may vary based on certain characteristics such as credit history, past payment history and geography. Each class of customer component is analyzed for estimated credit losses individually. In doing so, the Company establishes a customer profile, based on the previous collections of accounts receivable by the age of such receivables, and evaluates the current and forecasted financial position of its customers, as available. Further, the Company considers macroeconomic factors and the status of the life sciences industry to estimate if there are current expected credit losses within its trade receivables based on the trends and the Company’s expectation of the future status of such economic and industry-specific factors. Also, specific allowance amounts are established based on review of outstanding invoices to record the appropriate provision for customers that have a higher probability of default. Segment and Geographic Information Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment and employees are supporting only one operating segment which is the production and commercialization of PEDMARK. Stock-Based Compensation Under the Company’s stock-based compensation programs, the Company periodically grants stock options and restricted stock to employees, directors and consultants. The Company also issues shares under an employee stock purchase plan. The fair value of each award is recognized in the Company’s statements of operations over the requisite service period for such award. The Company uses the Black-Scholes option pricing model to value stock option awards without market conditions, which requires the Company to make certain assumptions regarding the expected volatility of its common stock price, the expected term of the option grants, the risk-free interest rate and the dividend yield with respect to its common stock. The Company calculates volatility using its historical stock price data. Due to the lack of the Company’s own historical data, the Company elected to use the “simplified” method for “plain vanilla” options to estimate the expected term of the Company’s stock option grants. Under this approach, the weighted-average expected life is presumed F-10 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ to be the average of the vesting term and the contractual term of the option. The risk-free interest rate used for each grant is based on the United States Treasury yield curve in effect at the time of grant for instruments with a similar expected life. The Company utilizes a dividend yield of zero based on the fact that the Company has never paid cash dividends and at present, has no intention to pay cash dividends. In May and August 2025, the Board of Directors approved grants of performance-based units (PSUs) whereby vesting depends on the achievement of specified revenue performance milestones through December 31, 2025. The Company estimates the likelihood of achievement of the performance milestones for all PSU awards at the end of each reporting period, and to the extent those awards or portions thereof are considered probable of being achieved, such awards or portions thereof are expensed over the performance period. As of December 31, 2025, the Company determined that the applicable revenue performance milestones had been achieved and recognized the related PSU compensation cost in full. Inventory Inventories are valued under a standard costing methodology on a first-in, first-out basis and are stated at the lower of cost or net realizable value. The Company capitalizes inventory costs related to products to be sold in the ordinary course of business. The Company makes a determination of capitalizing inventory costs for a product based on, among other factors, status of regulatory approval, information regarding safety, efficacy and expectations relating to commercial sales and recoverability of costs. Capitalized costs of inventories mainly include third party manufacturing, logistics and distribution costs. The Company assesses recoverability of inventory each reporting period to determine any write down to net realizable value resulting from excess or obsolete inventories. ​ Revenue Recognition Under Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, the Company recognizes revenue when its customers obtain control of promised goods or services, in an amount that reflects the consideration which the Company determines it expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the Company satisfies its performance obligation(s). As part of the accounting for these arrangements, the Company must make significant judgments, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each performance obligation. License Agreements The Company generates revenue from license or similar agreements with pharmaceutical companies for the commercialization of its product. Such agreements may include the transfer of intellectual property rights in the form of licenses. Payments made by the customers may include non-refundable upfront fees, payments based upon the achievement of defined milestones, and royalties on sales of product. If a license to the Company's intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes the transaction price allocated to the license as revenue upon transfer of control of the license. All other promised goods or services in the agreement are evaluated to determine if they are distinct. If they are not distinct, they are combined with other promised goods or services to create a bundle of promised goods or services that is distinct. Optional future services where any additional consideration paid to the Company reflects their standalone selling prices do not provide the customer with a material right and, therefore, are not considered performance obligations. If optional future services are priced in a manner which provides the customer with a significant or incremental discount, they are material rights, and are accounted for as separate performance obligations. Contingent milestones at contract inception are estimated at the amount which is not probable of a material reversal and included in the transaction price using the most likely amount method. Milestone payments that are not within the Company's control, such as regulatory approvals, are not considered probable of being achieved until those approvals are received and therefore the variable consideration is constrained. The transaction price is then allocated to each performance F-11 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ obligation on a relative stand-alone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each reporting period, the Company re-evaluates the probability of achieving development or sales-based milestone payments that may not be subject to a material reversal and, if necessary, adjust the estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect license and other revenue, as well as earnings, in the period of adjustment. For arrangements that include sales-based royalties, including sales-based milestone payments, and a license of intellectual property that is deemed to be the predominant item to which the royalties relate, revenue is recognized at the later of when the related sales occur or when the performance obligation to which some or all of the royalties have been allocated has been satisfied (or partially satisfied). Costs to Obtain Contract As the majority of the Company's contracts are short-term in nature, sales commissions are generally expensed when incurred as the amortization period would have been less than one year. These costs are recorded within selling and marketing expenses in the consolidated statements of operations. For contracts that extend beyond one year, the incremental expense recognition matches the recognition of related revenue. Net Product Revenue On September 20, 2022, the FDA approved PEDMARK ® in the United States to reduce the risk of ototoxicity associated with cisplatin in pediatric patients one month of age and older with localized, non-metastatic solid tumors. PEDMARK ® became commercially available on October 17, 2022. PEDMARK ® is the Company’s first commercial product. Amongst the Company’s customers are distributors which subsequently resell the Company’s products to health care providers and patients. In addition to distribution agreements, the Company enters into arrangements with health care providers and payors that provide for government-mandated and/or privately- negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products. Revenues from product sales are recognized when the customer obtains control of the Company’s product, which occurs at a point in time, typically upon delivery to the customer. Product Sales Discounts and Allowances The Company records U.S. based revenues from product sales at the net sales price (transaction price), which includes estimates of variable consideration for which reserves are established primarily from discounts, chargebacks, rebates, co-pay assistance, returns and other allowances that are offered within contracts between the Company and its customers, health care providers, payors and other indirect customers relating to the sales of its products. These reserves are based on the amounts to be claimed on the related sales and are classified as a contra-asset or a current liability. Where appropriate, these estimates take into consideration a range of possible outcomes that are probability-weighted for relevant factors such as current contractual and statutory requirements, specific known market events and trends, industry data, forecasted customer buying and payment patterns, and the Company’s historical experience that will develop over time as PEDMARK ® is the Company’s first commercial product. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of its contracts. The amount of variable consideration that is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results in the future vary from the Company’s estimates, the Company will adjust these estimates, which would affect net product revenues and earnings in the period such variances become known. The Company also utilizes select distributors to introduce its product into global markets. These distributors take on the function of shipping, storage, marketing and other services related to the sale of our product. We record distribution and other fees paid to these distributors as a reduction of revenue, unless the payment is for a distinct good or service from the customer and we can reasonably estimate the fair value of the goods or services received. If both conditions are met, we record the consideration paid to the distributor as an operating expense. These costs are typically known at the time of sale, resulting in minimal adjustments subsequent to the period of sale. ​ F-12 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from a specialty distributor. Contracted customers, which currently consist of Public Health Service institutions and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty distributor, in turn, charges back to the Company the difference between the price initially paid by the specialty distributor and the discounted price paid to the specialty distributor by its contracted customer. The allowance for chargebacks is based on actual chargebacks received and an estimate of sales by the specialty distributor to its contracted customers. Discounts for Prompt Payment: The customers receive a discount of for prompt payment which may range from 0.5 % to 2.0 %. The Company expects its customers will earn 100 % of their prompt payment discounts and, therefore, the Company deducts the full amount of these discounts from total product sales when revenues are recognized. Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program and other government programs. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers, such as Medicaid. The allowance for rebates is based on statutory or contractual discount rates and expected utilization. The Company’s estimates for the expected utilization of rebates are based on Customer and payer data received from the specialty distributors and historical utilization rates that will develop over time as PEDMARK ® is the Company’s first commercial product. Rebates are generally invoiced by the payor and paid in arrears, such that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s shipments to the customers, plus an accrual balance for known prior quarters’ unpaid rebates. If actual future rebates vary from estimates, the Company may need to adjust its accruals, which would affect net product revenues in the period of adjustment. Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. The Company accrues a liability for co-payment assistance based on actual program participation and estimates of program redemption using customer data provided by the third party that administers the copay program. Other Customer Credits: The Company pays fees to its customers for account management, data management and other administrative services. To the extent the services received are distinct from the sale of products to its customers, the Company classifies these payments in selling and marketing expenses in its consolidated statements of operations. Distribution and Other Fees: We pay distribution and other fees to certain customers in connection with the sales of our products. We record distribution and other fees paid to our customers as a reduction of revenue, unless the payment is for a distinct good or service from the customer and we can reasonably estimate the fair value of the goods or services received. If both conditions are met, we record the consideration paid to the customer as an operating expense. These costs are typically known at the time of sale, resulting in minimal adjustments subsequent to the period of sale. ​ The following table summarizes net product revenues for PEDMARK ® in the years ended December 31, 2025, and 2024, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, ​ ​ December 31, ​ ​ ​ ​ ​ 2025 ​ ​ 2024 Product revenues: ​ ​ ​ ​ ​ ​ Gross product revenues ​ $ 53,807 ​ $ 38,910 Discounts and allowances ​ ​ ( 9,165 ) ​ ​ ( 9,330 ) Net product revenues ​ $ 44,642 ​ $ 29,580 ​ For the years ended December 31, 2025 and 2024, the Company had three distributors that represented more than 10 % of net sales. ​ F-13 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ The activities and ending allowance balances for each significant category of discounts and allowances for PEDMARK ® (which constitute variable consideration) for the year ended December 31, 2025, and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Chargebacks, ​ ​ Rebates, Customer ​ ​ ​ ​ ​ Discounts for ​ ​ Fees/Credits ​ ​ ​ ​ ​ ​ Prompt Pay and ​ ​ and Co-Pay ​ ​ ​ In thousands ​ ​ Other Allowances ​ ​ Assistance ​ ​ Totals Balance at December 31, 2023 ​ $ 365 ​ $ 430 ​ $ 795 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ ​ 1,909 ​ ​ 6,573 ​ ​ 8,482 Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ ( 1,998 ) ​ ​ ( 6,296 ) ​ ​ ( 8,294 ) Balance at December 31, 2024 ​ ​ 276 ​ ​ 707 ​ ​ 983 Provision related to sales made in: ​ ​ ​ ​ ​ ​ ​ ​ ​ Current period ​ ​ 2,422 ​ ​ 1,340 ​ ​ 3,762 Prior periods ​ ​ — ​ ​ — ​ ​ — Payments and customer credits issued ​ ​ ( 2,221 ) ​ ​ ( 624 ) ​ ​ ( 2,845 ) Balance at December 31, 2025 ​ $ 477 ​ $ 1,423 ​ $ 1,900 ​ The allowances for chargebacks, fees due to customers, rebates and discounts for prompt payment are recorded as a contra-asset to accounts receivable, while Medicaid rebates and return allowances are in accrued liabilities in the accompanying consolidated balance sheets. Trade Receivables The Company records gross trade receivables at the time of product sale to its customers, both specialty and other select global distributors. Amounts estimated for the associated chargebacks, cash discounts for prompt payment and any allowances for credit losses are booked as a reserve against accounts receivable and reduction of revenue. The Company determines its allowance methodology by pooling receivable balances at the customer level. The Company considers various factors, including loss history, individual credit risk associated with each customer, and the current and future condition of the general economy. These credit risk factors are monitored on a quarterly basis and updated as necessary. To the extent that any individual debtor is identified whose credit quality has deteriorated, the Company establishes allowances based on the individual risk characteristics of such a customer. For customers that are large specialty distributors, the Company considered the risk of potential credit losses to be low. Sales to other select global distributors have increased the potential for losses. The Company evaluates the risk of credit losses on sales on an individual basis using the above-mentioned criteria. The Company had an allowance for credit losses of $ 5,904 as of December 31, 2025. Cost of Products Sold Cost of products sold is related to the Company's product revenues for PEDMARK ® and consists primarily of product production costs associated with finished goods inventory. Cost of products sold also consists of shipping and other third-party logistics and distribution costs for the Company’s product. As of December 31, 2025, the Company capitalized approximately $ 1,565 of costs as inventory, net of obsolescence reserve, on the consolidated balance sheet. Of the items capitalized, $ 1,274 was capitalized as raw materials, $ 153 as WIP and $ 138 was capitalized into finished goods. There was a reserve against WIP valuation for inventory which the Company believes will expire before it is sold in the amount of $ 1,290 . Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities at the date of purchase of three months or less. F-14 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ The Company places its cash and cash equivalents in investments held by highly rated financial institutions in accordance with its investment policy designed to protect the principal investment. As of December 31, 2025, the Company had $ 36,788 in cash and money market accounts (2024 - $ 26,634 ). Money market investments typically have minimal risks. While the Company has not experienced any loss or write-down of its money market investments, the amounts it holds in money market accounts are substantially above the $ 250 amount insured by the FDIC and may lose value. Financial Instruments Financial instruments recognized on the consolidated balance sheets at December 31, 2025 and 2024, consist of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and term loans, the carrying values of which approximate fair value due to their relatively short time to maturity or interest rates that approximate market interest rates. The Company does not hold or issue financial instruments for trading. The Company’s investment policy is to manage investments to achieve, in the order of importance, the financial objectives of preservation of principal, liquidity and return on investment. Investments, when made, are made in U.S. or Canadian bank securities, commercial paper of U.S. or Canadian industrial companies, utilities, financial institutions and consumer loan companies, and securities of foreign banks provided the obligations are guaranteed or carry ratings appropriate to the policy. Securities must have a minimum Dun & Bradstreet rating of A for bonds or R1 low for commercial paper. The policy risks are primarily the opportunity cost of the conservative nature of the allowable investments. The Company has chosen to avoid investments of a trading or speculative nature to preserve cash. Common Shares and Warrants At December 31, 2025, the Company had 111 warrants with a weighted average strike price of $ 8.11 outstanding to purchase common shares that have a weighted average life of 1.68 years. Research and Development Costs and Investment Tax Credits Research costs, including employee compensation, laboratory fees, lab supplies, and research and testing performed under contract by third parties, are expensed as incurred. Development costs, including drug substance costs, clinical study expenses and regulatory expenses are expensed as incurred. The Company conducts certain research and development activities under clinical trial and other research agreements with third parties and records expenses for these activities based on estimates of the work performed during the reporting period. In developing these estimates, the Company considers factors such as the terms of the underlying contracts, progress of patient visits and related clinical procedures, the achievement of contractual milestones, and data received from CROs and other service providers, and adjusts accruals as actual information becomes available. Investment tax credits, which are earned as a result of qualifying research and development expenditures, are recognized when the expenditures are made and their realization is reasonably assured. They are applied to reduce related capital costs and research and development expenses in the year recognized. Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk primarily consist of cash and cash equivalents, and accounts receivable. The Company maintains deposits in highly-rated, federally-insured financial institutions in excess of federally insured limits. The Company’s investment strategy is focused on capital preservation. The Company invests in instruments that meet the high credit quality standards outlined in the Company’s investment policy. This policy also limits the amount of credit exposure to any one issue or type of instrument. F-15 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ The Company’s trade receivables includes amounts billed to customers for product sales of PEDMARK ® . In the U.S., the customers are a limited group of specialty distributors, and direct customers, and accordingly, the Company considers the risk of potential credit losses to be low. The Company also sells to a select group of global distributors. These global distributors are established companies and although the Company regards credit losses with these distributors to be low, it does recognize the increased potential for credit losses with this group. Income Taxes The Company accounts for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates. The Company has deferred tax assets, which are subject to periodic recoverability assessments. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount that more likely than not will be realized. As of December 31, 2025, and 2024, we maintained a full valuation allowance against our deferred tax assets. The provisions of the Financial Accounting Standards Board (“FASB”) ASC 740-10, Uncertainty in Income Taxes, address the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC 740-10, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Foreign Currency Transaction The U.S. dollar is the functional currency for the Company’s consolidated operations. All gains and losses from currency transactions are included in results of operations. Loss Per Share Basic net loss per share was computed by dividing net loss by the weighted-average number of common shares outstanding during the year. Diluted net loss per share was computed using the same method, except the weighted-average number of common shares outstanding included convertible debentures, performance share units, restricted share units, stock options and warrants, if dilutive, as determined using the if-converted and treasury stock methods. Accordingly, at December 31, 2025, warrants to purchase 0.1 million of our common shares, performance share units covering 0.3 million of our common shares, restricted share units to obtain 0.4 million of our common shares, and options to purchase 5.9 million of our common shares were excluded from the computation of diluted net loss per share because their inclusion would have been antidilutive. At December 31, 2024, warrants to purchase 0.2 million of our common shares, restricted share units to obtain 0.3 million of our common shares and options to purchase 5.9 million of our common shares were excluded from the computation of diluted net loss per share because their inclusion would have been antidilutive; there were no performance share units outstanding at that date. Recent Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (ASU) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which improves the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the effective tax rate reconciliation and income taxes paid disaggregated by jurisdiction. This guidance will be effective for annual periods beginning the year ended December 31, 2025. The Company adopted ASU 2023-09 on January 1, 2025, on a prospective basis, and the adoption affected only the Company’s income tax disclosures and did not have an impact on its consolidated results of operations, financial position or cash flows. In November 2024, the FASB issued ASU 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses,” which requires disclosure of additional disaggregated information about significant expenses within relevant income statement captions, such as purchases of inventory, employee compensation, depreciation, amortization and depletion. The new guidance is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. We are currently evaluating the impact of this standard on our consolidated financial statements. F-16 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ ​ In July 2025, the FASB issued ASU No. 2025-05, “Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The guidance in ASU 2025-05 amends ASC Topic 326, Financial Instruments-Credit Losses, to provide a practical expedient to simplify estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC Topic 606, Revenue from Contracts with Customers. The practical expedient, if elected, allows entities to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset. The standard is effective for annual fiscal years beginning after December 15, 2025 and interim periods within fiscal years beginning after December 15, 2025, with early adoption permitted. Entities that elect the practical expedient should apply the guidance prospectively. The Company is currently evaluating the impact that the adoption of ASU 2025-05 may have on its consolidated financial statements. ​ 3. Loss per Share Loss per common share is presented under two formats: basic loss per common share and diluted loss per common share. Basic loss per common share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period, plus the potentially dilutive impact of common shares equivalents (e.g. stock options and warrants). Dilutive common share equivalents consist of the incremental common shares issuable upon exercise of stock options and warrants. The following table sets forth the computation of basic and diluted net loss per share (in thousands except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ Numerator: ​ ​ ​ ​ ​ ​ ​ Net loss ​ $ ( 9,741 ) ​ $ ( 436 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator: ​ ​ ​ ​ ​ Weighted-average common shares, basic ​ 28,577 ​ 27,294 ​ Weighted-average common shares, diluted ​ 28,577 ​ 27,294 ​ Net loss per share, basic and diluted ​ $ ( 0.34 ) ​ $ ( 0.02 ) ​ ​ The following outstanding options, restricted share units, and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ Options to purchase common shares 5,853 5,855 Restricted share units to obtain common shares ​ 387 ​ 324 ​ Performance share units to purchase common shares ​ 314 ​ — ​ Warrants to purchase common shares 111 150 ​ ​ 4. Stock Options Equity Incentive Plan The Company maintains the 2020 Equity Incentive Plan (the “2020 Plan” or the “Plan”), which is administered by the Compensation Committee of the Board of Directors. The 2020 Plan provides for the issuance of stock options, restricted share units (“RSUs”), and other equity-based awards to employees, directors, officers, and consultants of the Company. The Compensation Committee is responsible for determining eligible participants and approving individual award grants under the 2020 Plan. ​ On April 24, 2025, the Company’s Board of Directors approved an amendment to the Plan to: (i) increase the number of common shares available for issuance under the Plan (excluding common shares issued prior to the date of the meeting pursuant to the exercise of options and vesting of RSUs) to 8,500 common shares, representing approximately 30.8 % of F-17 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ the total issued and outstanding common shares as of the date of the circular; and (ii) include provisions for an employee stock purchase program. The amendment was subsequently approved by the Company’s shareholders on June 3, 2025. ​ Prior to this amendment, the maximum number of equity instruments issuable under the Plan, together with the Company’s prior stock option plan, was limited to 25 % of the Company’s issued and outstanding common shares. Based on the then-current outstanding share count, this equated to a maximum of 6,825 common shares available for issuance. ​ All stock options granted under the Plan have an exercise price equal to the fair value of the Company’s common shares on the date of grant. Options generally vest over a period of up to three years and are exercisable for a period of up to ten years from the grant date. Awards under the Plan may be denominated in either U.S. or Canadian dollars. ​ In November 2025, we filed a registration statement on Form S-8 registering 8,500 shares of common stock for issuance under the Fennec Pharmaceuticals Inc. 2020 Equity Incentive Plan. These shares are intended to support future equity-based compensation awards. ​ The Company recognizes stock-based compensation expense for all share-based awards granted to employees and non-employees based on the fair value of the awards on the grant date. A summary of the stock option transactions, U.S. dollar grants, for the years ended December 31, 2025 and 2024 is below. Unrecognized stock-based compensation at December 31, 2025 was $ 4,223 that will be recognized over a weighted-average service period of 1.69 years. There are no outstanding $CAD denominated options. ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary of Option Activity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ (in thousands) ​ ​ Range ​ ​ Average Outstanding and exercisable at December 31, 2023 ​ 4,798 ​ $ 4.08 - 10.96 ​ $ 6.27 Granted ​ 1,825 ​ ​ 4.23 - 7.29 ​ 5.84 Exercised ​ ( 342 ) ​ ​ 2.36 - 5.81 ​ 3.25 Forfeited ​ ( 426 ) ​ ​ 7.12 - 8.00 ​ ​ 7.60 Outstanding and exercisable at December 31, 2024 5,855 ​ ​ 2.36 - 8.00 ​ ​ 6.22 Granted 658 ​ ​ 6.50 - 9.11 ​ ​ 7.33 Exercised ( 401 ) ​ ​ 5.00 - 5.65 ​ ​ 5.40 Forfeited ​ ( 259 ) ​ ​ 4.23 - 7.18 ​ ​ 6.53 Outstanding and exercisable at December 31, 2025 5,853 ​ $ 4.23 - 9.11 ​ $ 6.38 ​ Summary of Option Remaining Life ​ ​ ​ ​ ​ ​ ​ ​ Number Outstanding and Exercisable at ​ Weighted Average Strike Price ​ Weighted Average ​ December 31, 2025 ​ December 31, 2025 ​ Remaining Life ​ (in thousands) ​ ​ ​ US Dollars ​ ​ ​ (years) ​ 5,853 ​ $ 6.38 ​ 6.19 ​ ​ ​ ​ ​ Stock compensation expense for the years ended December 31, 2025, and 2024 was $ 7,033 and $ 5,061 , respectively. These amounts have been included in general and administrative expenses for the respective periods. The weighted average fair value per share of options granted during the years ended December 31, 2025, and 2024 was $ 7.33 and $ 4.55 , respectively. The intrinsic value (being the difference between the share price at December 31, 2025 and exercise price) of stock options exercisable at December 31, 2025 was $ 6,988 . The intrinsic value of options exercised during the year ended December 31, 2025, was $ 2,214 . The fair value of all options vested during the year ended December 31, 2025, was $ 3,041 . The fair values of options granted in years ended December 31, 2025 and 2024 were estimated on the date the options were granted based on the F-18 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ Black-Scholes option-pricing model, using the following weighted average assumptions for all options with a ten-year expiration: ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ Year Ended ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ December 31, 2024 Expected dividend ​ - % - % Risk-free interest rate 3.83 - 4.19 % 3.64 - 5.15 % Expected volatility 71.04 - 161.67 % 55.00 - 162.00 % Expected life 1.50 - 6.0 years 1.50 - 6.0 years ​ ​ The Company uses the historical volatility and adjusts for available relevant market information pertaining to the Company’s share price. Performance-Based Units In May and August 2025, the Board of Directors approved PSU grants whereby vesting depends on certain revenue performance milestones during the year ended December 31, 2025. The Company estimates the likelihood of achievement of performance milestones for all PSU awards at the end of each reporting period. To the extent those awards or portions thereof are considered probable of being achieved, such awards or portions thereof are expensed over the performance period. The performance milestones were achieved for the year ended December 31, 2025. The expense of $ 2,387 was recognized for 2025. During 2025, the Company granted a total of 320 performance units and 6 units were forfeited, resulting in 314 unvested performance units outstanding at December 31, 2025 with a weighted-average grant-date fair value of $ 7.46 per share. Restricted Share Units Activity ​ The Plan allows for the issuance of restricted share units (“RSUs”). The following is a summary of RSU activity for the years ended December 31, 2025, and 2024. Prior to June 2021, there was no activity involving RSUs. During the year ended December 31, 2025, 283 RSUs were awarded, 7 were forfeited and 213 were released from restriction. The Company recognized $ 1,697 in RSU expense for the year ended December 31, 2025, and $ 1,382 for the same period in 2024. Standard vesting of RSUs is over three years with 1/3 vesting on the first anniversary date of the grant and then 1/24 on the last day of each subsequent month. The Compensation Committee may also award RSUs with alternative vesting. ​ ​ ​ ​ ​ ​ Number of Restricted Summary of RSU Activity ​ Share Units (thousands) Outstanding at December 31, 2023 218 Awarded 316 Forfeited ​ ( 180 ) Released ​ ( 30 ) Outstanding at December 31, 2024 ​ 324 Awarded ​ 283 Forfeited ​ ( 7 ) Released ​ ( 213 ) Outstanding at December 31, 2025 ​ 387 ​ ​ ​ ​ 5. Fair Value Measurements The Company has adopted ASC 820 Fair Value Measurements and Disclosure Topic of the FASB. This Topic applies to certain assets and liabilities that are being measured and reported on a fair value basis. The Fair Value Measurements Topic defines fair value, establishes a framework for measuring fair value in accordance with US GAAP, and expands disclosure about fair value measurements. This Topic enables the reader of the financial statements to assess the inputs F-19 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The Topic requires that financial assets and liabilities carried at fair value be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Financial assets and liabilities are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company measures the fair value of the Processa Pharmaceuticals Inc. (“Processa”) common shares held by the Company by taking into consideration valuations obtained from public financial markets. The Company uses Yahoo Finance to obtain share price data and Oanda for foreign currency pricing services to estimate fair value. These inputs include reported trades of and broker- dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities and other observable inputs. As of December 31, 2025, the Company had financial assets valued based on Level 1 inputs consisting of cash and cash equivalents and Processa common shares. The Company also had financial assets based on Level 2 inputs consisting of money market funds. During the year ended December 31, 2025, the Company did not have any transfers of financial assets between Levels 1 and 2. Assets/Liabilities Measured at Fair Value on a Recurring Basis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair Value Measurement at December 31, 2025 and December 31, 2024 ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ Quoted Price in Active ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Market for Identical ​ Significant Other ​ Significant ​ ​ ​ ​ ​ ​ Instruments ​ Observable Inputs ​ Unobservable Inputs ​ ​ ​ ​ ​ ​ Level 1 ​ Level 2 ​ Level 3 ​ Total ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ 2024 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents $ 3,072 (1) $ 2,020 (1) $ 33,716 ​ $ 24,614 ​ — ​ — ​ $ 36,788 ​ $ 26,634 Processa common shares 2 (2) 2 — ​ — ​ — — 2 2 (1) The Company held approximately, $ 3,072 in cash as of December 31, 2025, of which approximately $ 154 was in Canadian funds and $ 327 in Euro (both translated into U.S. dollars). As of December 31, 2024, the Company held approximately $ 2,020 in cash, of which approximately $ 110 was in Canadian funds and $ 245 in Euro (both translated into U.S. dollars). (2) The Company has 51 unrestricted common shares of Processa (Nasdaq: PCSA). ​ 6. Stockholders’ Equity Authorized Capital Stock The Company’s authorized capital stock consists of an unlimited number of shares of no -par common shares. Public Offering and Concurrent Private Placement On November 17, 2025, the Company completed an underwritten public offering of 5,367 common shares, including 700 common shares issued upon the underwriters’ full exercise of their option to purchase additional shares, at a public offering price of $ 7.50 per share, for gross proceeds of approximately $ 40.25 million before deducting underwriting discounts and offering expenses. Concurrently, the Company completed a non-brokered private placement of common shares in Canada to certain existing institutional shareholders at a price of $ 7.50 per share, for aggregate gross proceeds of approximately $ 5.025 million before offering expenses. The Company used a substantial portion of the combined net proceeds from these F-20 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ equity offerings to redeem all remaining outstanding senior secured convertible notes, with the balance intended for working capital and other general corporate purposes. Warrants to Purchase Common Shares At December 31, 2025, the Company had warrants outstanding to purchase 111 common shares at a weighted average exercise price of $ 8.11 . The following table summarizes our warrant activity for the years ended December 31, 2025 and 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Warrants ​ ​ ​ ​ Weighted ​ ​ (in thousands) ​ Range ​ Average Outstanding and exercisable at December 31, 2023 ​ $ 150 ​ $ 7.71 ​ $ 7.71 Granted ​ — ​ — ​ — Outstanding and exercisable at December 31, 2024 ​ $ 150 ​ $ 7.71 ​ $ 7.71 Exercised ​ ( 39 ) ​ 6.80 ​ 6.80 Outstanding and exercisable at December 31, 2025 ​ $ 111 ​ $ 6.80 - 8.11 ​ $ 8.11 ​ ​ 7. Commitments and Contingencies Litigation CIPLA ANDA Litigation On December 1, 2022, we received a letter dated November 30, 2022, notifying us that CIPLA Ltd. and CIPLA USA (“CIPLA”) submitted to the FDA an ANDA (ANDA No. 218028) for a generic version of PEDMARK ® (sodium thiosulfate solution) that contained Paragraph IV Certifications on two of our patents covering PEDMARK ® : the OHSU licensed ‘190 Patent, expiration date January 2038; and our US 11,291,728 Patent (the “’728 Patent”), expiration date July 2039. On January 6, 2023, we received a letter dated January 5, 2023, notifying us that CIPLA submitted to the FDA a Paragraph IV Certification on our newly issued US 11,510,984 Patent (the “’984 Patent”). These patents are listed in FDA’s list of Approved Drug Products with Therapeutic Equivalence Evaluations, commonly referred to as the Orange Book, for PEDMARK ® . The certifications allege these patents are invalid or will not be infringed by the manufacture, use, or sale of CIPLA’s sodium thiosulfate solution . Under the Food, Drug, and Cosmetic Act, as amended by the Drug Price Competition and Patent Term Restoration Act of 1984, as amended, after receipt of a valid Paragraph IV notice, the Company may bring a patent infringement suit in a federal district court against CIPLA within 45 days from the receipt of the Notice Letter and if such a suit is commenced within the 45-day period, the Company is entitled to a 30 month stay on the FDA’s ability to give final approval to any proposed products that reference PEDMARK. In addition to the 30-month stay, because we have received Orphan Drug Exclusivity, the FDA may not approve CIPLA’s ANDA for at least 7 years from PEDMARK ® ’s FDA approval date of September 20, 2022, which is September 20, 2029. On January 10, 2023, we filed suit against the CIPLA entities in the United States District Court for the District of New Jersey (Case No. 2:23-cv-00123), for infringement of the US ‘190 Patent, the US ‘728 Patent, and the US ‘984 Patent. On April 20, 2023, we filed an Amended Complaint to assert infringement of the US ‘728 Patent and the US ‘984 Patent. On April 4, 2023, we were granted US 11,617,793 Patent (the “US ‘793 Patent”) covering the formulation of the PEDMARK ® product, which was listed in the Orange Book on or around April 17, 2023, and has an expiration date of July 2039. On May 11, 2023, we received written notice of CIPLA’s Paragraph IV Certification as to the US ‘793 Patent, which was dated May 10, 2023, along with an enclosed statement of alleged factual and legal bases for stating that the US ‘793 Patent is invalid, unenforceable, and/or will not be infringed by CIPLA’s ANDA Product. On July 27, 2023, we filed a Second Amended Complaint to assert the US ‘793 Patent. CIPLA filed an Answer to the Second Amended Complaint on August 31, 2023. F-21 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ On April 23, 2024, we were granted US 11,964,018 Patent (the “US ‘018 Patent) covering a method of using our PEDMARK ® product to reduce ototoxicity in a patient receiving a platinum based chemotherapeutic for the treatment of a cancer, which was listed in the Orange Book on or around May 8, 2024, and has an expiration date of July 2039. On May 28, 2024, we were granted US 11,992,530 Patent (the “US ‘530 Patent”) covering a method of using our PEDMARK ® product to reduce ototoxicity in a patient receiving a platinum based chemotherapeutic for the treatment of a cancer, which was listed in the Orange Book on or around June 20, 2024, and has an expiration date of July 2039. On June 4, 2024, we were granted US 11,998,604 Patent (the “US ‘604 Patent”) covering a method of using our PEDMARK product to reduce ototoxicity in a patient receiving a platinum based chemotherapeutic for the treatment of a cancer, which was listed in the Orange Book on or around June 24, 2024, and has an expiration date of July 2039. On June 13, 2024, we filed a Motion for Leave to File a Third Amended Complaint to focus the ANDA litigation against CIPLA on the US ‘018 Patent and the US ‘793 Patent only. The non-asserted patents remain listed in the Orange Book. On July 22, 2024, CIPLA filed a response indicating that they do not oppose our Motion for Leave to File a Third Amended Complaint. On July 30, 2024, the court granted us leave to file the Third Amended Complaint, which we filed on September 16, 2024. In coordination with the Third Amended Complaint, we entered into a covenant not to sue CIPLA on the US ‘363 Patent, US ‘728 Patent, US ‘984 Patent, US ‘530 Patent, and US ‘604 Patent, subject to the limitation that such shall not apply to the extent CIPLA alters the product or formulation described in its FDA ANDA application. ​ On May 27, 2025, we were granted US 12,311,026 (the “US ‘026 Patent”) covering a method of using pharmaceutical compositions comprising sodium thiosulfate and specific stabilizers to reduce ototoxicity in a patient receiving a platinum based chemotherapeutic for the treatment of a cancer. The US ‘026 Patent has an expiration date of July 2039. ​ On May 27, 2025, we filed suit against the CIPLA entities in the United States District Court for the District of New Jersey (Case No. 2:25-cv-05709), for infringement of the US ‘026 Patent based on the Cipla entities’ ANDA filing. Subsequently, we filed a Motion to Consolidate Case No. 2:25-cv-05709 and Case No. 2:23-cv-00123. ​ On July 14, 2025, the court granted the Motion to Consolidate Case No. 2:25-cv-05709 with Case No. 2:23-cv-00123. On July 14, 2025, the court issued its Order on Claim Construction on two claim terms in dispute in the ‘793 Patent and ‘018 Patent, adopting our proposed constructions for both. ​ On August 25, 2025, the CIPLA entities filed an Answer and Counterclaims to the complaint, alleging that the ‘026 Patent was invalid, not infringed, and/or unenforceable. ​ On September 18, 2025, we filed an Answer to CIPLA’s Counterclaims. ​ On March 16, 2026, Fennec entered into an agreement with Cipla Limited and Cipla USA, Inc. to settle the litigation between them regarding Cipla’s application to FDA for approval to market a generic version of Fennec’s PEDMARK® (sodium thiosulfate injection) product. See Fennec Pharmaceuticals Inc. v. Cipla Limited and Cipla USA, Inc ., C.A. No. 2:23-cv-00123-JKS-MAH (D.N.J.). Under the terms of the agreement, the lawsuit will be dismissed with each party bearing their own costs, and Cipla will not enter the market with its generic sodium thiosulfate product until September 1, 2033, or earlier under certain circumstances. ​ F-22 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ Executive Severance In the event of termination of Mr. Hackman's (Chief Executive Officer) employment with the Company other than for cause, the Company will be obligated to pay him a one -time severance payment equal to twelve months of salary (currently $ 586 ). In the event of termination of Mr. Andrade’s (Chief Financial Officer) employment with the Company other than for cause, the Company will be obligated to pay him a one -time severance payment equal to nine months of salary which is equivalent to $ 362 . Further, certain other Executive Employment Agreements generally provide that if employment is terminated without “Cause” (as defined in the applicable Executive Employment Agreement) and other conditions are satisfied, then such executive officer shall receive as severance an amount equal to their then current base salary for a period of nine ( 9 ) months, less standard withholdings for tax and social security purposes. Leases ​ The Company has an operating lease in Research Triangle Park, North Carolina utilizing a small space within a commercial building. The operating lease has payments of $ 0.4 per month with no scheduled increases. This operating lease is terminable with 30 days’ notice and has no penalties or contingent payments due. ​ On January 23, 2020, the Company entered into an Office Service Agreement (the “Office Service Agreement”) with Regus to lease office space in Hoboken, New Jersey. Per the terms of the Office Service Agreement, the monthly rent payments are $ 1 . The Company was required to pay a security deposit of $ 2 , which is the equivalent to two months of rent. The Office Service Agreement commenced on January 27, 2020, and terminated on July 31, 2020, thereafter the lease has been continuing on a month-to-month basis with either party being able to terminate the agreement by providing one months’ advance written notice of termination. ​ On August 1, 2023, the Company entered into a second Office Service Agreement (the “Second Office Service Agreement”) with Regus to lease office space in Dublin, Ireland. Per the terms of the Second Office Service Agreement, the monthly rent payments are $ 2 . The Company was required to pay a security deposit of $ 5 , which is the equivalent of two months rent. The Second Office Service Agreement commenced on August 1, 2023 and terminated on January 31, 2025. ​ Employee Benefit Plan In May 2021, the Company established the Fennec Pharmaceuticals, Inc. 401(k) Plan (the “401(k) Plan”) for its employees, which is designed to be qualified under Section 401(k) of the Code. Eligible employees are permitted to contribute to the 401(k) Plan within statutory and 401(k) Plan limits. As of December 31, 2025, the Company does not offer matching contributions. ​ 8. Term Loans In August 2022, the Company entered into a Securities Purchase Agreement with Petrichor Opportunities Fund I LP providing for the issuance of up to $ 45,000 of senior secured floating-rate convertible notes due August 2027. Between August 2022 and December 2023, the Company issued an aggregate of $ 30,000 of Notes under this agreement. ​ In December 2024, the Company redeemed approximately $ 13,000 of Notes, including payment-in-kind interest. ​ On November 17, 2025, the Company redeemed all remaining outstanding Notes for an aggregate redemption price of approximately $ 21,729 , including principal, accrued interest, and applicable redemption fees. The redemption was funded primarily using proceeds from the Company’s November 2025 public equity offering (Note 6). ​ As of December 31, 2025, no convertible notes were outstanding. ​ F-23 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ 9. Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes. Our income tax expense (benefit) is based on income (loss) from continuing operations before income taxes and reflects current and deferred tax expense (benefit) attributable to U.S. federal, state, and foreign jurisdictions. We adopted ASU 2023-09, Improvements to Income Tax Disclosures, on January 1, 2025 on a prospective basis. The adoption did not have an impact on our consolidated financial position or results of operations but resulted in expanded income tax disclosures. The Company operates in U.S., Canadian and Ireland tax jurisdictions. Its income is subject to varying rates of tax and losses incurred in one jurisdiction cannot be used to offset income taxes payable in another. A reconciliation of the combined Canadian federal and provincial income tax rate with the Company’s effective tax rate is as follows (in thousands except for percentage rates): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ Year Ended ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Income (loss) from continuing operations before income taxes: ​ ​ ​ ​ ​ ​ ​ Domestic loss ​ $ ( 14,327 ) ​ $ ( 12,127 ) ​ Foreign income ​ 4,692 ​ 12,056 ​ Total Pretax Income (Loss) From Continuing Operations ​ $ ( 9,635 ) ​ $ ( 71 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ The provision for income taxes consists of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current income tax expense ​ ​ ​ ​ ​ ​ Federal ​ — ​ ​ — ​ Provincial, local and other ​ — ​ ​ — ​ Foreign ​ 106 ​ ​ 365 ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred income tax expense ​ ​ ​ ​ ​ ​ ​ Federal ​ — ​ — ​ Provincial, local and other ​ ​ — ​ ​ — ​ Foreign ​ — ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for income taxes ​ $ 106 ​ $ 365 ​ ​ The Canadian statutory income tax rate of 26.5 percent is comprised of federal income tax at approximately 15.0 percent and provincial income tax at approximately 11.5 percent. F-24 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ A reconciliation of the combined Canadian federal and provincial income tax rate to our effective tax rate for the year ended December 31, 2025 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, ​ ​ ​ 2025 ​ ​ ​ ​ ​ Amount ​ Percent ​ Loss before income taxes ​ $ ( 9,635 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal Statutory Tax Rate and Tax Expense (1) ​ ( 1,515 ) ​ 15.00 % ​ ​ ​ ​ ​ ​ ​ Provincial Tax (2) ​ ​ ( 17 ) ​ 0.18 ​ ​ ​ ​ ​ ​ ​ ​ Foreign Tax Effects ​ ​ ​ ​ ​ ​ US ​ ​ ​ ​ ​ ​ Foreign Rate Differential ​ ​ 275 ​ ( 2.91 ) ​ US State Tax ​ ​ 61 ​ ( 0.65 ) ​ Non-deductible meals and entertainment ​ ​ 77 ​ ( 0.82 ) ​ Valuation allowance ​ ​ ( 987 ) ​ 10.43 ​ ​ ​ ​ ​ ​ ​ ​ Effect of Cross-Border Tax Laws ​ ​ ​ ​ ​ ​ Domestic taxes on foreign earnings ​ ​ 118 ​ ( 1.25 ) ​ ​ ​ ​ ​ ​ ​ ​ Tax Credits ​ ​ 39 ​ ( 0.41 ) ​ ​ ​ ​ ​ ​ ​ ​ Non-taxable or Non-deductible Items ​ ​ ​ ​ ​ ​ Stock Compensation ​ ​ 1,055 ​ ( 11.14 ) ​ ​ ​ ​ ​ ​ ​ ​ Valuation allowance ​ ​ 1,008 ​ ( 9.64 ) ​ ​ ​ ​ ​ ​ ​ ​ Other ​ ​ ( 8 ) ​ ( 0.08 ) ​ Provision for income taxes ​ $ 106 ​ 1.12 % (1) Represents the Canadian federal statutory income tax rate.​ (2) Provincial taxes in Ontario comprised the majority of the tax effect in this category. A reconciliation of the Canadian federal statutory income tax rates to our effective tax rate for the years ended December 31, 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, ​ ​ ​ 2024 ​ Domestic loss ​ $ ( 12,127 ) ​ Foreign income ​ ​ 12,056 ​ Loss before income taxes ​ $ ( 71 ) ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ​ ​ ​ ​ Statutory tax rate ​ ​ 26.50 % Expected provision for (recovery of) income tax ​ ​ ( 19 ) ​ Permanent differences ​ ​ 1,629 ​ Change in valuation allowance ​ ​ 20,059 ​ Effect of tax rate changes and other ​ ​ ( 22,034 ) ​ Provision for income taxes ​ $ ( 365 ) ​ ​ F-25 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ The primary temporary differences which gave rise to future income taxes (recovery) at December 31, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Future tax assets: ​ ​ ​ ​ SR&ED expenditures ​ $ 2,086 ​ $ 2,086 Income tax loss carryforwards ​ 14,896 ​ 13,219 Non-refundable investment tax credits ​ 158 ​ 197 Share issue costs ​ 22 ​ 38 Fixed and intangible assets ​ 24,244 ​ 30,750 Debt discount ​ ​ 64 ​ 27 Other ​ 5,064 ​ ​ 6,067 Gross future tax assets ​ 46,534 ​ 52,384 Less: valuation allowance ​ ( 46,508 ) ​ ( 52,358 ) Net future tax assets ​ $ 26 ​ $ 26 ​ ​ ​ ​ ​ ​ ​ Future tax liabilities: ​ ​ ​ ​ ​ ​ Investments ​ ​ ( 26 ) ​ ​ ( 26 ) Gross future tax liabilities ​ $ ( 26 ) ​ $ ( 26 ) Total deferred tax assets, net ​ ​ - ​ ​ - ​ For 2025, cash paid for income taxes, net of refunds received, was $ 418 , all of which related to foreign income taxes in the United States; we did no t pay any federal, provincial , or other foreign income taxes during the year. Tax Cuts and Jobs Act On December 22, 2017, the then President of the United States signed into law an Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (commonly known as “the Tax Cuts and Jobs Act” (“TCJA”)), which introduced a comprehensive set of tax reforms. The Tax Cuts and Jobs Act significantly revises U.S. tax law by, among other provisions, lowering the Company’s corporate tax rate from 34 % to 21 % and eliminating or reducing certain income tax deductions. In December 2017, in accordance with the SEC Staff Accounting Bulletin (“SAB”) 118– Income Tax Accounting Implications of the TCJA, the Company recorded tax effects on a provisional basis based on a reasonable estimate. The TCJA did not have a material impact on the Company's financial statements because its deferred temporary differences are fully offset by a valuation allowance and the Company does not have any offshore earnings from which to record the mandatory transition tax. During 2018, the Company completed its analysis under SAB 118 and no additional tax effects due to rate-remeasurement were required to be recorded. There are no current income taxes owed, but the Norgine deal will cause the Company to be closer to using its historical tax losses. Once those losses are used up, the Company will owe income taxes. As of December 31, 2025, the Company F-26 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ has unclaimed Scientific Research and Experimental Development ("SR&ED") expenditures, income tax loss carry-forwards and non-refundable investment tax credits. The unclaimed amounts and their expiry dates are as listed below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Province/ ​ ​ Federal ​ State SR&ED expenditures (no expiry) ​ $ 7,872 ​ $ — Income tax loss carryforwards (expiry date): ​ ​ ​ ​ 2026 ​ 65,204 ​ 789,105 2027 ​ 20,150 ​ 651,278 2028 ​ 16,977 ​ 655,415 2029 ​ 650 ​ 616,910 2030 ​ 358 ​ 941,126 2031 ​ — ​ 1,013,499 2032 ​ 730 ​ 1,637,844 2033 ​ 365 ​ 2,159,126 2034 ​ 160 ​ 3,737,889 2035 ​ 805 ​ 9,215,474 2036 ​ 578 ​ 8,214,367 2037 ​ — ​ 1,298,877 2038 ​ — ​ 208,948 2039 ​ — ​ — 2040 ​ — ​ 334,363 2041 ​ 2,894,601 ​ — 2042 ​ 6,191,851 ​ — 2043 ​ ​ 6,455,938 ​ ​ — 2044 ​ ​ — ​ ​ — 2045 ​ ​ 499,093 ​ ​ ​ No expiration ​ 36,833,705 ​ — Investment tax credits (expiry date): ​ ​ ​ ​ 2025 ​ 82 ​ — 2026 ​ 86 ​ — 2027 ​ 47 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 10. License Agreement License Agreement with Norgine Pharma UK Limited On March 17, 2024, the Company announced that, through its wholly-owned subsidiary, Fennec Pharmaceuticals, Inc. entered into a License and Supply Agreement (the “Agreement”) with Norgine Pharma UK Limited (“Norgine”), pursuant to which Norgine is granted an exclusive license to commercialize the Company’s product PEDMARQSI ® (known as PEDMARK in the United States) for all human indications in the European Economic Area, Switzerland, the United Kingdom, Australia and New Zealand (collectively, the “Territory”). On July 26, 2024, Norgine and Fennec amended the exclusive licensing agreement. The amended agreement maintains all principal payment terms with the primary addition of Norgine assuming responsibility for packaging and labeling of PEDMARQSI ® . Pursuant to the terms of the Agreement, Fennec shall receive the following payments from Norgine: (i) an upfront payment in the amount of € 40,000 or approximately $ 43,200 , which was paid to Fennec on March 15, 2024, (ii) up to € 210,000 (or approximately $ 230,000 ) upon the achievement of certain regulatory and commercial milestones, and (iii) tiered royalty payments based on net sales of PEDMARQSI ® in the Territory, which royalty payment range from mid- teen percent to mid- twenty percent based on the aggregate net sales of PEDMARQSI ® in the Territory. The tiered royalty payments are subject to material reduction if an alternative or generic version of PEDMARQSI ® becomes available in any respective country or jurisdiction within the Territory. F-27 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ Subject to customary rights of each party to earlier terminate the Agreement, the term of the Agreement continues for the longer of: (i) March 15, 2034, or (ii) with respect to any particular country in the Territory, (a) the expiration of regulatory market exclusivity for PEDMARQSI ® in such country, or (b) the last-to-expire of all patents for PEDMARQSI ® in such country. The term of the Agreement shall be automatically renewed for additional three-year periods unless either party provides the other party written notice of its intent not to renew the Agreement at least one year prior to the applicable termination date of the Agreement. The Company evaluated the Agreement under ASC 606 and concluded that Norgine represents a customer in the transaction. There were two performance obligations: a license of functional IP and a material right for future supply. The Company will allocate the transaction price, including currently unrecognized variable consideration, to the two performance obligations based on estimated standalone selling price, which was estimated using projected cash flows. The initial transaction price consisted of the non-refundable upfront payment, a portion of which was allocated to and recognized as License Revenue in the first quarter of 2024 as the requirements for revenue recognition under ASC 606 were met. The portion of the transaction price associated with the material right is deferred and reflected as deferred revenue in the consolidated balance sheets. Deferred revenue associated with the material right is recognized as contract liabilities under the supply arrangement are made. The remaining forms of consideration are variable because they are dependent on the achievement of sales-based or other milestones. The Company evaluated the constraint on variable consideration and concluded that the milestone payments are dependent on regulatory approvals and actions of third parties, and thus are highly susceptible to factors outside the Company’s influence. Therefore, at contract inception, the milestones are not included in the transaction price as it is not probable that a significant reversal of revenue would not occur. Sales-based milestones will be recognized as revenue or deferred as part of the material right in the period when the related sales threshold is met. All other milestones will be recognized as revenue or deferred as part of the material right immediately in the period the underlying milestone is achieved. Any consideration related to sales-based royalties will be recognized as revenue or deferred as part of the material right when the related sales occur. For year ended December 31, 2025, the Company recognized $ 426 of royalty revenue and did not recognize any milestone revenue payments from Norgine sales of PEDMARQSI ® pursuant to the Agreement. In conjunction with entering into the Agreement, the Company paid approximately $ 1,700 in incremental costs, which were capitalized and recorded within other non-current assets. The Company amortizes the asset over the period of expected benefit using a systematic basis that reflects the pattern of transfer to the customer. A portion that represents the license was recognized immediately and is recorded within selling and marketing expense in the consolidated statements of operations. As of December 31, 2025, $ 717 in incremental cost was capitalized. ​ 11. Segment Reporting Operating segments are defined as components of an enterprise engaging in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment principally in the United States. Fennec’s chief operating decision maker is the senior executive team that includes the chief executive officer and chief financial officer. The chief operating decision maker uses net loss to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the single segment or any other part of the entity, such as for acquisitions or to pay dividends. The accounting policies of the operating segment are the same as those described in Note 2, Significant Accounting Policies. The chief operating decision maker evaluates the performance of the operating segment and allocates resources based on net loss that also is reported on the consolidated income statement as net loss. The measure of the operating segment assets is reported on the consolidated balance sheet as total assets. The chief operating decision maker uses net loss to monitor budget versus actual results and to analyze cash flows in assessing performance of the segment and allocating resources. The significant expenses are presented in the Company’s statements of operations. F-28 Table of Contents Fennec Pharmaceuticals Inc. Notes to the Consolidated Financial Statements (U.S. dollars and shares in thousands, except per share information) ​ ​ 12. Subsequent Events On March 16, 2026, the Company entered into a settlement agreement with Cipla Limited and Cipla USA, Inc. (together, “Cipla”) to resolve the litigation relating to Cipla’s application to the U.S. Food and Drug Administration (“FDA”) for approval to market a generic version of PEDMARK® (sodium thiosulfate injection), captioned Fennec Pharmaceuticals Inc. v. Cipla Limited and Cipla USA, Inc., C.A. No. 2:23-cv-00123-JKS-MAH (D.N.J.). Under the terms of the settlement, the lawsuit will be dismissed with each party bearing its own costs, and Cipla has agreed not to enter the market with its generic sodium thiosulfate product until September 1, 2033, or earlier under certain specified circumstances. The settlement was entered into subsequent to December 31, 2025, and did not exist at that date. Accordingly, the settlement has been accounted for as a non-recognized subsequent event and no adjustments have been made to the consolidated financial statements as of and for the year ended December 31, 2025. There were no other subsequent events that required adjustment to or disclosure in the accompanying financial statements. ​ ​ ​ ​ ​ F-29