Greenland Mines Ltd 10-Q

Item 1. Financial Statements KLOTHO NEUROSCIENCES, INC. UNAUDITED CONSOLIDATED BALANCE SHEETS September 30, 2024 December 31, 2023 ASSETS Current assets: Cash $ 50,895 $ 2,808 Prepaid expenses 103,750 3,840 Total current assets 154,645 6,648 Intangible assets: Licenses 2,261,134 2,137,638 Patents 48,420 48,420 Total assets $ 2,464,199 $ 2,192,706 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 271,129 $ 151,259 Accrued expenses 560,299 2,460 Notes payable to related parties 151,000 159,000 Notes payable - 1,308,270 Total current liabilities 982,428 1,620,989 Warrant liability 21,200 - Total liabilities 1,003,628 1,620,989 Commitments and contingencies (Note 10) STOCKHOLDERS’ EQUITY Preferred stock, par value $ 0.0001 , 100,000,000 shares authorized; 0 issued and outstanding. - - Common stock, par value $ 0.0001 , 1,000,000,000 shares authorized; 19,863,515 and 15,130,393 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively. 1,986 1,513 Additional paid-in capital 9,649,659 4,493,881 Common stock to be issued 304,462 - Accumulated deficit ( 8,495,536 ) ( 3,923,677 ) Total stockholders’ equity 1,460,571 571,717 Total liabilities and stockholders’ equity $ 2,464,199 $ 2,192,706 See accompanying notes to the unaudited consolidated financial statements. 1 KLOTHO NEUROSCIENCES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 Operating expenses: Professional fees $ 865,928 $ 117,770 $ 1,634,790 $ 494,075 General and administrative 2,005,004 5,967 2,053,794 26,514 Total operating expenses 2,870,932 123,737 3,688,584 520,589 Net operating loss ( 2,870,932 ) ( 123,737 ) ( 3,688,584 ) ( 520,589 ) Other income (expense): Interest expense ( 44,956 ) ( 20,379 ) ( 60,020 ) ( 60,472 ) Change in fair value of warrant liability 41,022 - 1,325 - Other income (expense) ( 84,560 ) 5 ( 335,830 ) 78 Total other income (expense) ( 88,494 ) ( 20,374 ) ( 394,525 ) ( 60,394 ) Net loss before income taxes ( 2,959,426 ) ( 144,111 ) ( 4,083,109 ) ( 580,983 ) Income taxes - - - - Net loss $ ( 2,959,426 ) $ ( 144,111 ) $ ( 4,083,109 ) $ ( 580,983 ) Net loss per share: Basic and Diluted $ ( 0.18 ) $ ( 0.01 ) $ ( 0.25 ) $ ( 0.04 ) Weighted average common shares outstanding – basic and diluted 16,688,945 15,130,393 16,588,940 15,130,393 See accompanying notes to the unaudited consolidated financial statements. 2 KLOTHO NEUROSCIENCES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY Total Preferred Stock Additional Common Stockholder’s Common Stock (Series B, C and D) Paid-in Stock Accumulated Equity Shares Amount Shares Amount Capital to be Issued Deficit (Deficit) Balance, January 1, 2024, Revised 15,130,393 $ 1,513 120,000 $ 12 $ 4,493,881 $ - $ ( 3,923,677 ) $ 571,729 Retroactive application of merger 548,505 55 ( 120,000 ) ( 12 ) ( 1,318,672 ) 304,200 - ( 1,014,429 ) Adjusted balance, beginning of period* 15,678,898 1,568 - - 3,175,209 304,200 ( 3,923,677 ) ( 442,700 ) Public warrants assumed from SPAC - - - - 488,750 - ( 488,750 ) - Private warrants assumed from SPAC - - - - ( 22,525 ) - - ( 22,525 ) Share-based compensation - - - - 37,252 262 - 37,514 Net loss - - - - - - ( 1,123,683 ) ( 1,123,683 ) Balance June 30, 2024 15,678,898 $ 1,568 - $ - $ 3,678,686 $ 304,462 $ ( 5,536,110 ) $ ( 1,551,394 ) Conversion of Notes Payable 3,750,617 375 - - 4,009,634 - - 4,010,009 Warrant conversion 130,000 13 - - - - - 13 Share-based compensation 304,000 30 - - 1,952,821 - - 1,952,851 Other - - - - 8,518 - - 8,518 Net loss - - - - - - ( 2,959,426 ) ( 2,959,426 ) Balance at September 30, 2024 (unaudited) 19,863,515 $ 1,986 - $ - $ 9,649,659 $ 304,462 $ ( 8,495,536 ) $ 1,460,571 Total Preferred Stock Additional Additional Stockholder’s Common Stock (Series B, C and D) Paid-in Paid-in Accumulated Equity Shares Amount Shares Amount Capital Capital Deficit (Deficit) Balance, January 1, 2023 as recast - $ - 1,405,250 $ 475 $ 3,419,003 $ - $ ( 3,216,219 ) $ 203,259 Retroactive application of merger 15,130,393 1,513 ( 1,405,250 ) ( 475 ) 1,074,878 - - 1,075,916 Adjusted balance, beginning of period at 6/21/2024 15,130,393 1,513 - - 4,493,881 - ( 3,216,219 ) 1,279,175 Net loss - - - - - - ( 580,983 ) ( 580,983 ) Balance at September 30, 2023, Revised 15,130,393 $ 1,513 - $ - $ 4,493,881 $ - $ ( 3,797,202 ) $ 698,192 Net loss - - - - - - ( 126,475 ) ( 126,475 ) Balance at December 31, 2023 (unaudited) 15,130,393 $ 1,513 - $ - $ 4,493,881 $ - $ ( 3,923,677 ) $ 571,717 * Note: as a result of the business combination as recast, the shares of the Company’s common stock prior to the Business Combination (refer to Note 1) have been retrospectively recast to reflect the change in the capital structure as a result of the Business Combination on 6/21/24. See accompanying notes to the unaudited consolidated financial statements. 3 KLOTHO NEUROSCIENCES, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2024 September 30, 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 4,083,109 ) $ ( 580,983 ) Adjustments to reconcile net loss to net cash used in operating activities: Changes in fair value of warrant liability ( 1,325 ) - Commitment fee 250,000 - Stock-based compensation 1,990,366 100,000 Changes in operating assets and liabilities: Prepaid expenses ( 99,910 ) ( 1,613 ) Accounts payable 19,870 168,966 Accrued expenses 557,839 21,224 Tax payable ( 568,111 ) - Related party payable ( 128,000 ) 45,000 Other liabilities 60,022 - Net cash used in operating activities $ ( 2,002,358 ) $ ( 247,406 ) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of patents - ( 10,000 ) Acquisition of licenses ( 123,497 ) ( 66,325 ) Net cash used in investing activities $ ( 123,497 ) $ ( 76,325 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from convertible promissory note 1,000,000 - Proceeds from sales of stocks and warrants, net 175,000 - Proceeds from related party loans 100,000 - Proceeds from shareholders 120,000 - Merger proceeds net of transaction cost 778,942 - Repayment of advance to shareholder - 250,000 Net cash provided by financing activities $ 2,173,942 $ 250,000 NET CHANGE IN CASH 48,087 ( 73,731 ) Cash - Beginning of period 2,808 75,872 Cash - End of period $ 50,895 $ 2,141 SUPPLEMENTAL NON-CASH FINANCING AND INVESTING ACTIVITIES: Note payable settled with issuance of common stock $ 5,258,270 $ - Interest payable settled with issuance of common stock $ 60,022 $ - Non-cash directors and officers insurance $ 154,500 $ - Non-cash PIPE Funds used for merger transaction close $ 2,950,000 $ - Commitment fee paid in stock $ 250,000 $ - Assumed warrant liability from merger $ 22,525 $ - Assumed income tax payable $ 568,111 $ - Warrant conversion $ 96,200 $ - SUPPLEMENTAL CASH FLOW INFORMATION: Interest Paid $ 2,460 $ 37,707 Taxes Paid $ - $ - See accompanying notes to the unaudited consolidated financial statements. 4 KLOTHO NEUROSCIENCES, INC. NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION Klotho Neurosciences, Inc. (“The Company” or “Klotho”), formerly known as ANEW Medical, Inc., develops essential medicines for the treatment of chronic diseases – cancer, cardiovascular, and neurodegenerative disorders. The Company currently has acquired two licensed platforms: a generic drug portfolio and a biosimilar biologics platform that uses biologic therapies to treat cancer, and two proprietary, patented technologies involving the melanocortin receptor-binding molecules and a gene therapy platform which uses a gene therapy approach to introduce a therapeutic protein called “Klotho” inside the body to treat neurodegenerative diseases. On September 12, 2022, the Company acquired five market-approved anti-cancer drugs approved for sale in Germany. The Market Authorizations (MA’s) are for four of the drugs that comprise the “FOLFOX” and “FOLFIRI” multi-drug regimens used in treatment of metastatic colorectal and gastric cancer and in two of the drugs that are used to treat metastatic lung cancer. The drugs are important in the treatment of many solid tumors in both childhood and adult cancers. Previously, the Company acquired two off-patent bio generic antibodies from Reliance Life Sciences (RLS), the life science arm of Reliance Industries Pvt Ltd. of Navi Mumbai, India. During January 2023, the Company acquired a treatment for small drug molecules that bind to the melanocortin receptors on human cells and affect skin pigmentation. Effective July 24, 2024, the Company changed its legal name from ANEW Medical, Inc. to Klotho Neurosciences, Inc. This name change was approved by the Company’s Board of Directors to better reflect the strategic focus of its proprietary products. Throughout these financial statements, references to the “Company” refer to Klotho Neurosciences, Inc., formerly known as ANEW. Under certain circumstances, references to ANEW have remained when useful in describing the sequence of events that occurred during the merger between Redwoods and ANEW. Business Combinations As of May 30, 2023, Redwoods Acquisition Corp., a Delaware corporation and a special purpose acquisition company (“Redwoods”), Anew Medical Sub, Inc., a Wyoming corporation (“Merger Sub”) and ANEW Medical, Inc., a Wyoming corporation (“ANEW”) entered into a Business Combination Agreement, which was amended as of November 4, 2023 (the “Business Combination Agreement”). On June 21, 2024 (the “Closing Date”), Merger Sub merged with and into ANEW, with ANEW continuing as the surviving corporation and as a wholly owned subsidiary of Redwoods (the “Business Combination”). In connection with the Business Combination, on June 21, 2024, Redwoods filed its Second Amended Certificate of Incorporation with the Delaware Secretary of State, and adopted the amended and restated bylaws (the “Amended and Restated Bylaws”), which replaced Redwoods’ Charter and Bylaws in effect as of such time. In connection with the closing of the Business Combination (the “Closing”), Redwoods changed its name to “ANEW Medical, Inc.” For accounting purposes, the transactions contemplated by the Business Combination are treated as a reverse acquisition and, as such, the historical financial statements of the accounting acquirer ANEW (Wyoming) will become the historical financial statements of the Company. Under this method of accounting, Redwoods was treated as the acquired company for financial reporting purposes. Accordingly, for accounting purposes, the Merger was treated as the equivalent of the Company issuing shares for the net assets of Redwoods, accompanied by a recapitalization. The net assets of Redwoods were stated at historical cost with no goodwill or other intangible assets recorded. Recapitalization In connection with the merger, the Company issued six million shares in exchange for all of the outstanding shares of ANEW. At $ 10 per Redwood’s share, the valuation of ANEW was $ 60 million. 5 Immediately after giving effect to the Business Combination, 15,130,393 shares of Company Common Stock were outstanding, from which 2,875,000 remain in escrow for the Redwoods founders. In addition, there were 12,030,000 warrants immediately exercisable and composed of 11,500,000 public warrants and 530,000 private warrants. Following the Closing, on June 21, 2024, the Company’s Common Stock and Warrants began trading on the Nasdaq under the symbols “WENA” and “WENAW,” respectively. The Public Units of Redwoods automatically separated into the component securities upon consummation of the Business Combination and, as a result, no longer trade as a separate security. Further, upon closing of the Business Combination on June 21, 2024, the Company received approximately $ 181,339 in net cash proceeds. During the three months ended September 30, 2024, the Company determined there was an additional approximate $ 8,500 cash. At Closing, pursuant to the terms of the Business Combination Agreement and after giving effect to the redemptions of shares of Redwoods Common Stock: ● The total consideration paid at Closing (the “Merger Consideration”) by Redwoods to ANEW Medical, Inc. security holders was 6,000,000 shares of the Company common stock valued at $ 60 million (the “Consideration Shares”), based on an implied ANEW equity value of $ 60,000,000 valued at $ 10 per share; ● Each share of ANEW Medical Common Stock, if any, that was owned by Redwoods, Merger Sub, ANEW Medical, Inc. or any other affiliate of Redwoods immediately prior to the effective time of the Merger (the “Effective Time”) was automatically cancelled and retired without any conversion or consideration; ● Each share of Merger Sub common stock, par value $ 0.0001 per share (“Merger Sub Common Stock”), issued and outstanding immediately prior to the Effective Time was converted into one newly issued share of Common Stock of the Surviving Corporation. In connection with the Merger, the Company entered into a convertible promissory note and Securities Purchase Agreement (“SPA”) with certain accredited investors (the “Redwoods PIPE Investors”) for an aggregate of 750,000 shares (bonus free trading shares and restricted shares issued at closing), with each unit consisting of one share of Company common stock (the “PIPE Shares”) for an aggregate purchase price of $ 2,000,000 (the “Redwoods PIPE Financing”). Upon the closing of the Redwoods PIPE Financing (which closed in connection with the closing of the Merger), the $ 2,000,000 were used by the Company to settle transaction costs. The Company received approximately $ 181,339 in net cash proceeds and recorded a receivable of $ 50,000 from the Redwoods PIPE Financing funds. In connection with the Merger, the Company entered convertible promissory note and Securities Purchase Agreement (“SPA”) with certain accredited investors (the “ANEW PIPE Investors”) for an aggregate of 854,257 units (bonus free trading shares and restricted shares issued at closing), with each unit consisting of one share of Company common stock (the “PIPE Shares”) for an aggregate purchase price of $ 2,000,000 (the “ANEW PIPE Financing”). Upon the closing of the ANEW PIPE Financing (which closed in connection with the closing of the Merger), $ 1,000,000 was used by the Company to settle transaction costs. The Company received approximately $ 950,000 in cash proceeds and recorded a receivable of $ 50,000 from the ANEW PIPE Financing funds. Concurrent with Closing, certain ANEW stockholders may be entitled to up to an additional 5,000,000 shares of Company Common Stock (the “ Contingent Consideration Shares ”), upon the following conditions being met: (i) 2,000,000 Contingent Consideration Shares upon the Company’s common stock achieving a closing price equal to or exceeding $12.50 for 10 trading days within a 20-day trading period in the first three years following the Closing; (ii) 2,000,000 Contingent Consideration Shares upon the Company’s common stock achieving a closing price equal to or exceeding $15.00 for 10 trading days within a 20-day trading period in the first three years following the Closing; and (iii) 1,000,000 Contingent Consideration Shares upon the Company’s common stock achieving a closing price equal to or exceeding $20.00 for 10 trading days within a 20-day trading period in the first five years following the Closing. In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparable periods up to June 21, 2024 and reflected as such as of September 30, 2024, to reflect the number of shares of the Company’s common stock, $ 0.0001 par value per share, issued to ANEW’s stockholders in connection with the merger. As such, the shares and corresponding capital amounts and earnings per share related to ANEW’s common stock prior to the merger have been retroactively restated as shares reflecting the exchange ratio established in the merger. For accounting purposes, the Merger was treated as the equivalent of the Company issuing shares for the net assets of Redwoods, accompanied by a recapitalization. The net assets of Redwoods were stated at historical cost with no goodwill or other intangible assets recorded. In connection with the Merger, in addition to the warrants, ANEW Medical assumed $ 589,081 in cash and $ 568,111 in income tax payable. The income tax payable of $ 568,111 was settled in full as of September 30, 2024 from the assumed $ 589,081 cash. 6 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Going Concern The accompanying unaudited consolidated financial statements have been prepared as if the Company will continue as a going concern. The Company has incurred significant operating losses and negative cash flows from operations since inception. As of September 30, 2024, the Company had cash of approximately $ 51,000 and an accumulated deficit of approximately $ 8.5 million. The Company has incurred recurring losses, has experienced recurring negative operating cash flows, and requires significant cash resources to execute its business plans. The Company is dependent on obtaining additional working capital funding from the sale of equity and/or debt securities in order to continue to execute its development plans and continue operations. Without additional funding, there is substantial doubt about the Company’s ability to continue as a going concern for twelve months from the date of these financial statements. Basis of Presentation and Principles of Consolidation The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC. The Company prepared the Financial Statements, without audit, pursuant to the rules and regulations of the SEC applicable to quarterly reporting on Form 10-Q and reflect, in management’s opinion, all adjustments necessary to present fairly the financial information. All such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements, prepared in accordance with generally accepted accounting principles, have been consolidated or omitted as permitted by such rules and regulations. These Financial Statements should be read in conjunction with the consolidated financial statements and related notes included in the 2023 Annual Report. Results of operations for interim periods are not necessarily indicative of annual results. Reclassification Certain prior year amounts have been reclassified for comparative purposes to conform to the current-year financial statement presentation. These reclassifications had no effect on previously reported results of operations and were not material. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of unaudited consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, demand deposits, and other short-term highly liquid investments placed with banks, which have original maturities of three months or less and are readily convertible to known amounts of cash. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $ 250,000 . As of September 30, 2024, the Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. 7 Fair Value of Financial Instruments The assets and liabilities are valued using a fair market basis as defined in the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) ASC 820, Fair Value Measurement. Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. The Company uses a three-level hierarchy established by the FASB that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach and cost approach). The levels of the fair value hierarchy are described below: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs with little or no market data available, which require the reporting entity to develop its own assumptions. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial assets and liabilities are classified in their entirety based on the most conservative level of input that is significant to the fair value measurement. Fair value measurements at reporting date using: Fair value Quoted prices in active markets for identical liabilities (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Liabilities: Representative warrant liabilities, September 30, 2024 $ 21,200 $ - $ - $ 21,200 Liabilities: Representative warrant liabilities, December 31, 2023 $ - $ - $ - $ - The following tables present a reconciliation of the Level 3 Private Warrants liabilities: Nine Months Ended September 30, 2024 2023 Representative warrant liabilities, January 1 $ - $ - Issuances/Assumptions 22,525 - Change in fair value ( 1,325 ) - Representative warrant liabilities, September 30 $ 21,200 $ - Three Months Ended September 30, 2024 2023 Representative warrant liabilities, July 1 $ 62,222 $ - Change in fair value ( 41,022 ) - Representative warrant liabilities, September 30 $ 21,200 $ - 8 Intangible Assets The Company’s intangible assets consist of acquired medical licenses and patents. The Company acquires medical licenses for the treatment of medical conditions to market and sell in the future. The initial asset cost is the cost to acquire the license. Once in use, the Company amortizes the license cost over the useful life using the straight-line method. As part of the licensing agreements, the Company acquires patents and records the cost to acquire patents as the initial asset cost. Once the patents are approved and in use, assuming no litigations expenses, the Company amortizes the patent cost over the useful life using the straight-line method. The amortization period will not exceed the lifespan of the protection afforded by the patent. If the expected useful life of the patent is even shorter, the Company will use the useful life for amortization purposes. Thus, the shorter of a patent’s useful life or legal life will be used for the amortization period. Impairment of Long-Lived and Intangible Assets The Company assesses the impairment of long-lived and intangible assets periodically, or at least annually, and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important, which could trigger an impairment review, include the following: significant underperformance relative to historical or projected future cash flows; significant changes in the manner of use of the assets or the strategy of the overall business; and significant negative industry trends. When management determines that the carrying value of long-lived and intangible assets may not be recoverable, impairment is measured as the excess of the assets’ carrying value over the estimated fair value. Management is not aware of any other impairment charges that may currently be required; however, the Company cannot predict the occurrence of events that might adversely affect the reported values in the future. On an annual basis, the Company tests the long-lived and intangible assets for impairment based on the projected net present value of cash flows for each asset. Prior to the annual impairment test, if circumstances change and a long-lived or intangible asset is deemed impaired, an impairment loss will be immediately recognized in the statements of operations. At December 31, 2023, the date of the last impairment test, it was determined that the estimated fair value of the intangible assets exceeded the carrying value of the assets by 50 %, indicating no impairment. Revenue Recognition The Company is in a pre-revenue state and does not generate revenue. When the Company commences to derive revenue, those contracts will be accounted in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic ASC 606). Income Taxes The Company uses the asset and liability method of accounting for income taxes in accordance with ASU 740, “Income Taxes”. Under this method, income tax expense is recognized as the amount of: (i) taxes payable or refundable for the current year and (ii) future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if based on the weight of available evidence it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company is subject to Income tax filings requirements in U.S. federal and various state jurisdictions. The Company’s tax returns for years from 2021, 2022, and 2023 are subject to U.S. federal, state, and local income tax examinations by tax authorities. The Company reports income tax related interest and penalties within the income tax line item on the consolidated statements of operations. The Company likewise reports the reversal of income tax-related interest and penalties within such line item to the extent the Company resolves the liabilities for uncertain tax positions in a manner favorable to the accruals. Net Loss Per Share (Basic and Diluted) Basic net loss per share is computed by dividing net loss by the weighted average number of shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares outstanding, plus the number of additional shares that would have been outstanding if the common share equivalents had been issued, if dilutive. 9 The following table details the net loss per share calculation, reconciles between basic and diluted weighted average shares outstanding, and presents the potentially dilutive shares that are excluded from the calculation of the weighted average diluted common shares outstanding, because their inclusion would have been anti-dilutive: For the Nine Months Ended September 30, 2024 2023 Numerator: Net loss $ ( 4,083,109 ) $ ( 580,983 ) Weighted average shares outstanding (denominator for basic earnings per share) 16,588,940 15,130,393 Weighted average shares and assumed potential common shares (denominator for diluted earnings per share, treasury method) 16,588,940 15,130,393 Basic loss per share $ ( 0.25 ) $ ( 0.04 ) Diluted loss per share $ ( 0.25 ) $ ( 0.04 ) The following common share equivalents are excluded from the calculation of weighted average common shares outstanding, because their inclusion would have been anti-dilutive: For the Nine Months Ended September 30, 2024 2023 Warrants 12,030,000 12,030,000 Total potentially dilutive shares 12,030,000 12,030,000 Research and Development Cost Research and development (R&D) costs are expensed as incurred. R&D costs are related to the Company’s internally funded development of the Company medical licenses and patents. The Company R&D costs were $ 0 for the three and nine months ended September 30, 2024 and 2023, respectively. Share-based Compensation The Company accounts for share-based compensation in accordance with the fair value recognition provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 718 and No. 505. The Company issues restricted stock to employees and consultants for their services. Cost for these transactions are measured at the fair value of the equity instruments issued at the date of grant. These shares are considered fully vested and the fair market value is recognized as an expense in the period granted. The Company recognized consulting expenses and a corresponding increase to additional paid-in-capital related to stock issued for services. For agreements requiring future services, the consulting expense is to be recognized ratably over the requisite service period. The Company recorded share-based compensation of $ 1,990,366 and $ 100,000 for the nine months ended September 30, 2024, and 2023, respectively. 10 Warrants As of September 30, 2024, the fair value of the Representative Warrant liabilities was $ 21,200 based on the closing price of the warrants on The Nasdaq Capital Market. The fair value of the Representative Warrants was approximately $ 0.04 per Representative Warrant, which was based on the relative fair value to the Public Warrants. During the quarter, our Public and Private Warrants met the conditions necessary to adjust the exercise price and the redemption trigger price. As of September 30, 2024, the exercise price was $ 3.49 per warrant, and the redemption trigger price was $ 5.01 . During the three months ended September 30, 2024, the fair value of the Representative warrants decreased by $ 41,022 . During the three months ended September 30, 2024, a warrant holder exercised 130,000 warrants issued as part of the Series D Preferred Shares related to the Business Combination, with a total value of $ 96,200 , valued as of September 27, 2024. Related Parties The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include (a) affiliates of the Company; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s consolidated financial statements. NOTE 3 — PREPAID EXPENSES Prepaid expenses consist of prepayment of the premium on Directors and Officers insurance. As of September 30, 2024 and December 31, 2023, prepaid expenses totaled $ 103,750 and $ 3,840 , respectively, in the accompanying consolidated balance sheets. 11 NOTE 4 — INTANGIBLE ASSETS Intangible assets consisted of the following: Intangible Assets September 30, 2024 December 31, 2023 Licenses Non-Exclusive License Agreement $ 179,821 $ 56,325 Proprietary pharmaceutical drugs 10,000 10,000 Various generic drugs 736,983 736,983 Four generic drugs (Encore) 1,308,270 1,308,270 Needleless Syringe License 26,060 26,060 Patents 48,420 48,420 Total intangible assets $ 2,309,554 $ 2,186,058 Intangible assets are as follows: ● Non-Exclusive License Agreement ($ 179,821 ) – On March 5, 2023, the Company signed a Non-Exclusive License Agreement with Heidelberg University to grant non-exclusive rights to various licenses owned and under development by the university. The licenses include the use of modified AAV capsid polypeptides for treatment of muscular diseases. The terms include a € 50,000 ($ 56,325 ) fee for signing the agreement and € 100,000 ($ 112,650 ) payment within 60 days of the anniversary of signing the agreement. The Company will pay € 1,000,000 ($ 1,126,500 ) for each assignment of a right to a license owned by the university. For new licenses, the Company will make standard commercial development-based milestone payments for the various stages of license development and regulatory approval. The Company will make 2 % royalty payments by January 31 st each year during the term of the agreement for each licensed product for the proceeding calendar year. At September 30, 2024, the Company paid $ 179,821 under the agreement. ● Proprietary Pharmaceutical Drugs ($ 10,000 ) – On January 27, 2023, the Company signed a License Agreement with Teleost Biopharmaceutic, LLC to acquire various assets for the Company’s proprietary pharmaceutical program segment. The license includes the use of patented small drug molecules that bind to the melanocortin receptors on human cells and affect skin pigmentation. The terms include a $ 10,000 fee for signing the agreement and a $ 50,000 pay ment on January 27, 2024. The Company will pay for all new patent costs for new discoveries and new treatments. The Company will make standard commercial development-based milestone payments for the various stages of license development and regulatory approval. In addition, the Company will make royalty payments on the net sales for commercial products. Beginning in 2025, the Company will also pay patent and license maintenance fees. The amount due under the agreement was $ 10,000 at September 30, 2024. The License Agreement with Teleost Biopharmaceutic, LLC was terminated as of November 8, 2024. See note 11- subsequent events for additional detail. ● Various Generic Drugs ($ 736,983 ) - During 2015, the Company acquired two licenses for two licensed platform technologies, a biosimilar biologics platform that uses biologic therapies to treat cancer – recombinant antibodies, and a gene therapy platform which uses a gene therapy approach to introduce a therapeutic protein called “Klotho” inside the body to treat neurodegenerative diseases. The value of the licenses was $ 736,983 at September 30, 2024. ● Four Generic Drugs (Encore) ($1,308,270) – On September 12, 2022, the Company acquired four market-approved anti-cancer drugs approved for sale in Germany for $ 1,308,270 . The purchase price represents the fair value of the intangible asset based on the net present value of the projected gross profit to be generated by the licenses. The value of the licenses was $ 1,308,270 at September 30, 2024 and December 31, 2023. ● Needleless Syringe License ($ 26,060 ) – On December 1, 2023, the Company signed a license agreement with TransferTech Sherbooke for the rights to develop and commercialize the technology of a “Needleless Syringe.” Under the terms of the agreement, the Company paid a $ 26,060 upfront fee and royalty fees on the license income. The Company has not commenced developing the technology. The amount paid was $ 26,060 at September 30, 2024. ● Patents ($ 48,420 ) – Through its licensing arrangements, the Company acquires the right to patents for Alzheimer, ALS and other items. Once the patents are declared effective, patents are amortized using the straight-line method over their estimated useful lives or statutory lives, whichever is shorter, and will be reviewed for impairment upon any triggering event that may impact the assets’ ultimate recoverability as prescribed under the guidance related to impairment of long-lived assets. Costs incurred to acquire patents, including legal costs, are also capitalized as long-lived assets and amortized on a straight-line basis with the associated patent. At December 31, 2023, certain professional fees incurred for the patents in the amount of $ 47,740 were deemed not capitalizable and were expensed as professional fees in the accompanying statements for operations. At September 30, 2024, professional fees incurred for the patents in the amount of $ 30,898 were deemed not capitalizable and were expensed as professional fees in the accompanying statements for operations. The patent value, which I spart of licenses in the accompanying consolidated balance sheet, as of September 30, 2024 and December 31, 2023 was $ 48,420 , respectively. ● Exclusive World-wide License Agreement - On January 24, 2022, the Company signed an exclusive, world-wide License Agreement with the University of Barcelona for a cell and/or gene therapy that has shown compelling activity in animal models of human Alzheimer’s disease and amyotrophic lateral sclerosis (“ALS” or “Lou Gehrig’s disease”). The gene therapy will also be applied to age-related diseases and rare (“Orphan”) diseases. Beginning on December 15, 2022, the Quarterly license fee is 10,000 Euros. In addition, the Company will pay a Royalty equal to 3 % of net sales of finished products. For the nine months ended September 30, 2024 and 2023, the Company owes $ 0 under the agreement. These licenses and patents are n ot currently in use as the Company is pre-revenue stage. Once these licenses are in use, the licenses will be amortized over its useful life. The Company expects to utilize these licenses and patents in year 2025. 12 NOTE 5 — ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of professional fees. The accounts payable and accrued expenses as of September 30, 2024 and December 31, 2023 were $ 831,428 and $ 153,719 , respectively, in the accompanying consolidated balance sheet. NOTE 6 – NOTES PAYABLE TO RELATED PARTIES Notes payable to related parties consisted of the following: September 30, 2024 December 31, 2023 December 2023 - $ 135,000 original amount bearing no interest due upon demand $ - $ 135,000 May 2024 and December 2023 - $ 7,000 and $ 24,000 original amount bearing a one-time interest fee of $ 2,460 due upon demand. 31,000 24,000 August 2024 - $ 80,000 original amount bearing no interest due upon demand 80,000 - August 2024 - $ 20,000 original amount bearing no interest due upon demand 20,000 - September 2024 - $ 20,000 original amount bearing no interest due upon demand 20,000 - Total notes payable to related parties $ 151,000 $ 159,000 December 2023 ($135,000) – On December 1, 2023, the Company issued a promissory note to two members of management in the amount of $ 135,000 . The promissory note did not accrue interest. The unpaid principal balance was $ 0 and $ 135,000 at September 30, 2024 and December 31, 2023, respectively. May 2024 and December 2023 ($ 7,000 and $ 24,000 ) – On December 12, 2023, the Company issued a promissory note to a member of management. The promissory note accrued interest at a one-time interest fee of $ 2,460 , which was paid off as of September 30, 2024. The unpaid principal balance was $ 31,000 and $ 24,000 at September 30, 2024 and December 31, 2023, respectively. August 2024 ($ 80,000 ) – On August 27, 2024, the Company issued a promissory note to a member of management. The promissory note accrues no interest. The unpaid principal balance was $ 80,000 and $0 at September 30, 2024 and December 31, 2023, respectively. August 2024 ($ 20,000 ) – On August 27, 2024, the Company issued a promissory note to a member of management. The promissory note accrues no interest. The unpaid principal balance was $ 20,000 and $0 at September 30, 2024 and December 31, 2023, respectively. September 2024 ($ 20,000 ) – On September 30, 2024, the Company issued a promissory note to a member of management. The promissory note accrues no interest. The unpaid principal balance was $ 20,000 and $0 at September 30, 2024 and December 31, 2023, respectively. NOTE 7 — NOTES PAYABLE On September 12, 2022, the Company issued a $ 1,308,270 promissory note used to acquire four market-approved anti-cancer drugs. See Note 4 – Intangible Assets for further discussion. The promissory note bore interest at 6 % and had a maturity date of June 30, 2023 . Pursuant to the agreement, the interest stopped accruing at June 30, 2023. As of December 31, 2023, the Company made interest payments of $ 78,496 to fully satisfy the interest obligation under the promissory note. The note was converted into the Company’s common shares and fully settled as part of the merger that closed on June 21, 2024. The unpaid principal balance of the note was $ 0 and $ 1,308,270 at September 30, 2024 and December 31, 2023, respectively. On March 4, 2024, in connection with the Merger, Public ANEW entered into a convertible promissory note and Securities Purchase Agreement (“SPA”) with certain accredited investors (the “Redwoods PIPE Investors”) for an aggregate purchase price of up to $ 2,000,000 (the “Redwoods PIPE Financing”), which included 750,000 bonus shares of common stock. Upon the closing of the Redwoods PIPE Financing (funded and closed in connection with the closing of the Merger on June 21, 2024), which totaled $ 1,950,000 , of which $ 1,768,661 was used by the Company to settle transaction costs. The Company received approximately $ 181,339 in net cash proceeds. On April 22, 2024, prior to the closing of the Business Combination Agreement, ANEW Medical (Wyoming) entered into a convertible promissory note and Securities Purchase Agreement (“SPA”) with certain accredited investors (the “ANEW PIPE Investors”) for an aggregate purchase price of up to $ 2,000,000 (the “ANEW PIPE Financing”), which included 900,000 bonus shares of common stock. Upon the closing of the ANEW PIPE Financing (funded and closed in connection with the closing of the Merger on June 21, 2024), which totaled $ 1,950,000 initially, of which $ 1,000,000 was used by the Company to settle transaction costs. The Company received approximately $ 1,000,000 in cash proceeds during the nine months ended September 30, 2024 and $ 50,000 during the three months ended September 30, 2024. Both convertible promissory notes, Redwoods PIPE Financing and ANEW PIPE Financing, bore an interest rate of 10 %. During the third quarter of 2024, investors converted convertible promissory notes totaling $ 4,010,022 , including $ 3,950,000 of principal and $ 60,022 accrued interest, through the issuance of 4,050,617 shares of common stock, of which 3,750,617 shares of common stock were issued and outstanding as of September 30, 2024. On October 2, 2024, 300,000 shares of common stock were issued to satisfy the liability in full. 13 NOTE 8 — RELATED PARTIES On October 10, 2021, the Company signed an Employment Agreement with Dr, Joseph Sinkule to serve as the Company’s CEO for three years ending on October 9 th , 2024. In addition, Mr. Sinkule will serve as a member of the board of directors for a five-year term. Mr. Sinkule’s annual salary will be $ 240,000 per year and increase to $ 360,000 per year upon raising a total of five million dollars ($ 5,000,000 ) or more in equity and/or debt financing. The Company’s CEO has earned $ 240,000 for the years ended December 31, 2023 and 2022. In accordance with the agreement, at September 30, 2024 and December 31, 2023, the Company’s CEO is owed $ 0 and $ 80,000 , respectively. During November 2022, the Company advanced a shareholder $ 300,000 as a short-term loan. The loan is non-interest bearing and due by the end of December 2022. The shareholder repaid $ 50,000 during December 2022 and $ 250,000 in January 2023 to fully satisfy the advance. At September 30, 2024 and December 31, 2023, the loan balance was $ 0 . On December 12, 2023, the Company issued a promissory note to a member of management. The promissory note accrued interest at a one-time interest fee of $ 2,460 , which was paid off as of September 30, 2024. The unpaid principal balance was $ 31,000 and $ 24,000 at September 30, 2024 and December 31, 2023, respectively. On August 27, 2024, the Company issued a promissory note to a member of management. The promissory note accrues no interest. The unpaid principal balance was $ 80,000 and $ 0 at September 30, 2024 and December 31, 2023, respectively. On August 27, 2024, the Company issued a promissory note to a member of management. the promissory note accrues no interest. The unpaid principal balance was $ 20,000 and $ 0 at September 30, 2024 and December 31, 2023, respectively. At September 30, 2024 and December 31, 2023, the aggregate related party payable was $ 151,000 and $ 159,000 , respectively. NOTE 9 — STOCKHOLDER’S EQUITY On June 21, 2024, the Business Combination, among other transactions contemplated by the Business Combination Agreement, was completed. The transaction was accounted as a reverse recapitalization in accordance with GAAP. Under this method of accounting, Redwoods was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the financial statements of the Combined Company represent a continuation of the financial statements of Klotho with the Transactions treated as the equivalent of Klotho issuing shares for the net assets of Redwoods, accompanied by a recapitalization. Under this method of accounting, Redwoods was treated as the acquired company for financial reporting purposes. Accordingly, for accounting purposes, the Merger was treated as the equivalent of the Company issuing shares for the net assets of Redwoods, accompanied by a recapitalization. The net assets of Redwoods were stated at historical cost with no goodwill or other intangible assets recorded. See “NOTE 1 — Organization and Business Description” for detail. Equity Incentive Plan In connection with the Business Combination, the Company’s Board adopted, and the Company’s stockholders approved, the Equity Incentive Plan (“Equity Incentive Plan”). Although the Company does not have a formal policy with respect to the grant of equity incentive awards to the Company’s executive officers, the Company believes that equity awards provide Company’s executive officers with a strong link to the Company’s long-term performance, create an ownership culture and help to align the interests of the Company’s executives and the Company’s stockholders. In addition, Company believes that equity awards with a time-based vesting feature promote executive retention because this feature provides incentives to Company’s executive officers to remain in Klotho’s employment during the applicable vesting period. Accordingly, Company’s board of directors periodically reviews the equity incentive compensation of the Company’s executive officers and from time to time may grant equity incentive awards to them. During the three months ended September 30, 2024, the Company granted 3,144,000 shares at a weighted average fair value of $ 0.94 per share, with various vesting schedules, resulting in share-based compensation expense of $ 1,952,851 . During the nine months ended September 30, 2024 stock-based compensation expense totaled $ 1,990,366 . 14 NOTE 10 — COMMITMENTS AND CONTINGENCIES From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or other claims will have a material effect on the Company’s business, financial condition, results of operations or cash flows. Material Contracts On November 27, 2014, the Company signed a License Agreement and a Manufacturing and Supply Agreement for the monoclonal antibody development license and supply agreement and related manufacturing with Reliance Life Sciences (RLS), the life science arm of Reliance Industries Pvt Ltd, the largest private company in India. The contract expires on November 27, 2024 with a 10 -year renewal option. The License Agreement entitles the Company to pay $ 100,000 per product for a total of three products with milestone payments for meeting certain criteria. In addition, the Company will pay a quarterly royalty payment of 5 % on net sales of finished products. The Manufacturing and Supply Agreement contains an estimated acquisition price of active pharmaceutical ingredients (API) of $ 350,000 per Kg for each product developed. As of September 30, 2024, the Company has not generated any activity under the agreement. On October 19, 2022, the Company signed an M&A/Capital Markets Advisory Agreement with Chardan Capital Markets to advise and assist the Company in negotiating the terms and conditions with respect to a potential sale, purchase, merger, joint venture, business combination, material change of control, or similar transaction involving the Company and a strategic acquirer and/or private or publicly listed entity or business, including a Special Purpose Acquisition Company (SPAC), and with respect to any offerings of any equity, equity-linked or debt securities of the Company or any other party to a financing transaction and perform such other financial advisory services to the Company. At the close of the merger on June 21, 2024, the Company paid $ 3.0 million and 1.5 million in common shares for M&A advisory fees and deferred underwriting fees. On August 20, 2024, the Company signed a Capital Markets Advisory Agreement with Chardan Capital Markets to assist with additional fundraising. On June 13, 2024, RWOD and Klotho entered into a forward purchase agreement with (i) Meteora Capital Partners, LP (“MCP”), (ii) Meteora Select Trading Opportunities Master, LP (“MSTO”), and (iii) Meteora Strategic Capital, LLC (“MSC” and, collectively with MCP and MSTO, the “Seller”) (the “Forward Purchase Agreement”). Redwoods is the holder of the asset and Sponsor and is also a counterparty to Klotho. Upon Closing of the merger on June 21, 2024 and on September 30, 2024, the value of the contract for the Company was $ 0 as the contract created no receivable or obligation for the Company. On September 19, 2024, the Company modified the settlement amount price of the contract to $ 2.00 and the shares held with Meteora are able to be sold at Meteora’s sole discretion, with the reset price subject to weekly changes. The Company will assess the Company obligation and value the contract in the future periods based on fair value and record changes on the fair value in the Condensed Consolidated Statements of Operations. The Company entered into several employment, advisory, and consulting agreements during the quarter. On August 15 th , 2024, the Company entered into a three -year employment agreement with Jeffrey LeBlanc, who joined the Company as Chief Financial Officer. Pursuant to the Employment Agreement, Mr. LeBlanc will receive an annual base salary of $ 325,000 , 100,000 shares of common stock immediately upon signing, 200,000 shares of common stock within one year of the effective date, and 200,000 shares of common stock within two years of the effective date. On August 15 th , 2024, the Company entered into a three -year employment agreement with Peter Moriarty, who joined the Company as Chief Operating Officer. Pursuant to the Employment Agreement, Mr. Moriarty will receive an annual base salary of $ 300,000 , 100,000 shares of common stock immediately upon signing, 200,000 shares of common stock within one year of the effective date, and 200,000 shares of common stock within two years of the effective date. On September 24, 2024, the Company entered into a one-year Scientific Advisory Board agreement with Dr. Robert Langer. Pursuant to the Scientific Advisory Board Agreement, Dr. Langer shall receive $ 175,000 in compensation and 225,000 shares of common stock, immediately vested upon signing. The Company also entered into various consulting agreements to assist with pharmaceutical development and business development with total monthly obligation to the Company of $ 22,000 per month as of September 30,2024 through year end. NASDAQ Deficiencies On August 16, 2024, the Company received two delinquency notification letters (the “Notices”) from the Nasdaq Stock Market LLC (“Nasdaq”) due to the Company’s non-compliance with Nasdaq Listing Rules 5450(b)(2)(C) and 5450(b)(2)(A). The Notices cite the Company’s (a) not being in compliance with the minimum Market Value of Publicly Held Shares (“MVPHS”) requirement as set forth in Nasdaq Listing Rule 5450(b)(2)(C) and (b) not being in compliance with the minimum Market Value of Listed Securities (MVLS) requirement as set forth in Nasdaq Listing Rule 5450(b)(2)(A). In accordance with Nasdaq Listing Rule 5810(c)(3)(D), the Company has been provided 180 calendar days, or until February 12, 2025, to regain compliance. To regain compliance, prior to February 12, 2025, (a) the Company’s minimum market value of publicly held shares must close at $ 15,000,000 or more for a minimum of 10 consecutive business days and (b) the Company’s minimum market value of listed securities must close at $ 50,000,000 or more for a minimum of 10 consecutive business days. If the Company fails to timely regain compliance with Nasdaq Listing Rules, the Company’s common stock will be subject to delisting from Nasdaq. As part of its compliance plan, the Company is evaluating a change in Nasdaq listing tiers and alternate means of qualification, including but not limited to the shareholder equity standard of qualification. On October 15, 2024, the Company received a delinquency notification letter (the “Notice”) from the Nasdaq Stock Market LLC (“Nasdaq”) due to the failure of the Company’s common stock to maintain a minimum bid price of $ 1 per share for 30 consecutive business days as required by Nasdaq Listing Rule 5450(a)(1). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided 180 calendar days, or until April 14, 2025, to regain compliance. To regain compliance, prior to April 14, 2025, the closing bid price of the Company’s common stock must be at least $ 1 for a minimum of ten consecutive business days . If the Company fails to timely regain compliance with Nasdaq Listing Rules, the Company’s common stock will be subject to delisting from Nasdaq. 15 NOTE 11 — SUBSEQUENT EVENTS The Company has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial statements were issued, and has determined that the following subsequent event exists: ● Key Executive Employment Agreement – Joseph Sinkule, Chief Executive Officer - On October 24, 2024, Dr. Joseph Sinkule, the Company’s Chief Executive Officer, entered into a new three-year employment agreement with the Company. Pursuant to the Employment Agreement, Dr. Sinkule will receive an annual base salary of $ 360,000 , and will receive an equity award of 1,000,000 options pursuant to the Company’s 2023 Incentive Plan. The options are valid for a period of three ( 3 ) years and have an exercise price equal to the closing price of the Company’s common stock on October 24, 2024. In addition, Dr. Sinkule will be eligible to participate in the Company’s annual bonus program for executives. ● Teleost Biopharmaceuticals – On November 8, 2024, the Company and Teleost Biopharmaceuticals, LLC mutually agreed to terminate a Licensing Agreement dated January 28, 2023 granting the Company certain rights to develop and commercialize certain patent rights previously licensed to Teleost and know-how rights owned by Teleost in the field of gamma-melanocortins comprised of drug and peptide chemicals, API and pharmaceuticals that bind, affect, and potentially treat diseases directly or indirectly related to human MC1R receptors. The Company sought the termination of the Licensing Agreement since the licensed rights are no longer core to the Company’s business and research plans. This termination did not result in a financial impact for the Company. ● Scientific Advisory Board – On November 11, 2024, the Company appointed an additional advisor to our Scientific Advisory Board with annual compensation of $ 36,000 . ● Convertible Promissory Note – On November 14, 2024, the Company signed a Securities Purchase Agreement (SPA) tied to a Convertible Promissory Note with Austria Capital LLC in the amount of $ 1.2 million with an original issue discount of 20 %, or a net amount of $ 1,000,000 for the Company. The Note will be due in November 2025. On November 15, 2024, the Company received a subscription advance in the amount of $ 100,000 . The Company expects to close the transaction by November 22, 2024. 16