What changed in this filing

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Item 1. Financial Statements

2025-08-14 compared with 2025-05-13 · 699 added, 763 removed, 237 unchanged (86% of the section changed)

Financial Statements

NeuroOne Medical Technologies Corporation

Condensed Balance Sheets

Medical Technologies Corporation

Balance Sheets

September 30,

23 unchanged sentences

100,000,000 shares authorized;

31,385,526 and 30,816,499 shares issued and outstanding as of March 31, 2025 and September 30, 2024, respectively.

49,824,780 and 30,816,499 shares issued and outstanding as of June 30, 2025 and September 30, 2024, respectively.

Additional paid–in capital

4 unchanged sentences

Total liabilities and stockholders’ equity

See accompanying notes to condensed financial statements

NeuroOne Medical Technologies Corporation

Condensed Statements of Operations

accompanying notes to condensed financial statements

Medical Technologies Corporation

Statements of Operations

Three Months Ended

Six Months Ended

Nine Months Ended

Product revenue

10 unchanged sentences

( 2,855,409 )

( 9,070,474 )

Fair value change in warrant liability

Financing costs

Other income, net

Loss before income taxes

2 unchanged sentences

( 1,986,153 )

( 8,967,515 )

Provision for income taxes

7 unchanged sentences

Basic and diluted

See accompanying notes to condensed financial statements

accompanying notes to condensed financial statements

NeuroOne Medical Technologies Corporation

Condensed Statements of Changes in Stockholders’

Statements of Changes in Stockholders’ Equity

Stockholders’

19 unchanged sentences

( 68,886,293 )

Issuance of common stock attributed to the at-the-market offering

Issuance costs related to the at-the-market offering

Stock-based compensation

Issuance of common stock upon vesting of restricted stock units

Share repurchases for the payment of employee taxes

( 2,767,525 )

Balance at June 30, 2024

$ ( 71,653,818 )

Stockholders’

15 unchanged sentences

( 75,489,698 )

See accompanying notes to condensed financial statements

NeuroOne Medical Technologies Corporation

Condensed Statements of Cash Flows

Six Months Ended

Issuance of common stock attributed to equity financing

Issuance costs related to equity financing

Stock-based compensation

Issuance of common stock upon vesting of restricted stock units

Share repurchases for the payment of employee taxes

( 1,500,868 )

Balance at June 30, 2025

$ ( 76,990,566 )

accompanying notes to condensed financial statements

Medical Technologies Corporation

Statements of Cash Flows

Nine Months Ended

Operating activities

1 unchanged sentence

$ ( 8,967,515 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Adjustments to reconcile net loss to net cash used in operating activities:

Amortization and depreciation

Valuation adjustments for excess or obsolete inventory

Stock-based compensation

2 unchanged sentences

Fair value change in warrant liability

Debt termination costs reclassed to financing activities

( 1,099,421 )

Debt and equity facility termination costs reclassed to financing activities

Change in assets and liabilities:

2 unchanged sentences

Accounts payable

Accrued expenses, deferred revenue, operating leases and other liabilities

Net cash provided by (used in) operating activities

Accrued expenses, operating leases and other liabilities

Net cash used in operating activities

( 1,311,600 )

( 8,344,957 )

Investing activities

4 unchanged sentences

Issuance costs related equity financings

( 1,231,873 )

Financing costs in connection with debt facility

Share repurchases for the payment of employee taxes

Net cash (used in) provided by financing activities

Net decrease in cash and cash equivalents

Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents

( 3,702,516 )

2 unchanged sentences

Supplemental non-cash financing and investing transactions:

Unpaid issuance costs in accounts payable and accrued expenses

Modification of right-of-use asset and associated lease liability

Purchased property and equipment in accounts payable

See accompanying notes to condensed financial statements

NeuroOne Medical Technologies Corporation

accompanying notes to condensed financial statements

Medical Technologies Corporation

Notes to Condensed Financial Statements

NOTE 1 – Description of Business and

Basis of Presentation

NeuroOne Medical Technologies Corporation (the

“Company” or “NeuroOne”), a Delaware corporation, is a medical technology company focused on the development and

commercialization of thin film electrode for continuous electroencephalogram (“cEEG”) and stereoelectrocencephalography (“sEEG”)

recording, monitoring, ablation, drug delivery and brain stimulation solutions to diagnose and treat patients with epilepsy, Parkinson’s

disease, dystonia, essential tremors, chronic pain due to failed back surgeries and other related neurological disorders.

The Company has received 510(k) clearance from

the United States (“U.S.”) Food and Drug Administration (“FDA”) for three of its devices:

(i) its Evo cortical

electrode technology for recording, monitoring, and stimulating brain tissue for up to 30 days, (ii) its Evo® sEEG electrode technology

for temporary (less than 30 days) use with recording, monitoring, and stimulation equipment for the recording, monitoring, and stimulation

of electrical signals at the subsurface level of the brain;

and (iii) its OneRF ablation system for creation of radiofrequency lesions

in nervous tissue for functional neurosurgical procedures.

The Company has a distribution agreement with Zimmer, Inc.

providing Zimmer with a license to commercialize and distribute these three products in the brain.

The Company’s other products

and indications are still under development.

The Company is based in Eden Prairie, Minnesota.

Global Economic Conditions

Generally, worldwide economic conditions remain

uncertain, particularly due to the conflicts between Russia and Ukraine and in the Middle East, disruptions in the banking system and

financial markets, and increased inflation.

The general economic and capital market conditions both in the U.S.

and worldwide, have been

volatile in the past and at times have adversely affected the Company’s access to capital and increased the cost of capital.

capital and credit markets may not be available to support future capital raising activity on favorable terms or at all.

If economic conditions

continue to decline, the Company’s future cost of equity or debt capital and access to the capital markets could be adversely affected.

The Company does not currently anticipate any meaningful impact from current or proposed tariffs on imported goods.

The Company’s operating results could be

materially impacted by changes in the overall macroeconomic environment and other economic factors.

Changes in economic conditions, supply

chain constraints, logistics challenges, labor shortages, the conflicts in Ukraine and the Middle East, disruptions in the banking system

and financial markets, and steps taken by governments and central banks, have led to higher inflation, which has led to an increase in

costs and has caused changes in fiscal and monetary policy, including increased interest rates.

Basis of presentation

The accompanying unaudited condensed financial

statements have been prepared by the Company, pursuant to the rules and regulations of the U.S.

Securities and Exchange Commission (the

Certain information and footnote disclosures normally included in financial statements prepared in accordance with

1 – Description of Business and Basis of Presentation

Medical Technologies Corporation (the “Company” or “NeuroOne”), a Delaware corporation, is a medical technology

company focused on the development and commercialization of thin film electrode for continuous electroencephalogram (“cEEG”)

and stereoelectrocencephalography (“sEEG”) recording, monitoring, ablation, drug delivery and brain stimulation solutions

to diagnose and treat patients with epilepsy, Parkinson’s disease, dystonia, essential tremors, chronic pain due to failed back

surgeries and other related neurological disorders.

Company has received 510(k) clearance from the United States (“U.S.”) Food and Drug Administration (“FDA”) for

three of its devices:

(i) its Evo cortical electrode technology for recording, monitoring, and stimulating brain tissue for up to 30

days, (ii) its Evo® sEEG electrode technology for temporary (less than 30 days) use with recording, monitoring, and stimulation equipment

for the recording, monitoring, and stimulation of electrical signals at the subsurface level of the brain;

and (iii) its OneRF ablation

system for creation of radiofrequency lesions in nervous tissue for functional neurosurgical procedures.

The Company has a distribution

agreement with Zimmer, Inc.

(“Zimmer”) providing Zimmer with a license to commercialize and distribute these three products

in the brain.

The Company’s other products and indications are still under development.

Company is based in Eden Prairie, Minnesota.

Economic Conditions

worldwide economic conditions remain uncertain, particularly due to the conflicts between Russia and Ukraine and in the Middle East,

disruptions in the banking system and financial markets, and increased inflation.

The general economic and capital market conditions

both in the U.S.

and worldwide, have been volatile in the past and at times have adversely affected the Company’s access to capital

and increased the cost of capital.

The capital and credit markets may not be available to support future capital raising activity on

favorable terms or at all.

If economic conditions continue to decline, the Company’s future cost of equity or debt capital and

access to the capital markets could be adversely affected.

The Company does not currently anticipate any significant impact from current

or proposed tariffs on imported goods.

Company’s operating results could be materially impacted by changes in the overall macroeconomic environment and other economic

Changes in economic conditions, supply chain constraints, logistics challenges, labor shortages, the conflicts in Ukraine and

the Middle East, disruptions in the banking system and financial markets, and steps taken by governments and central banks, have led

to higher inflation, which has led to an increase in costs and has caused changes in fiscal and monetary policy, including increased

interest rates.

of presentation

accompanying unaudited condensed financial statements have been prepared by the Company, pursuant to the rules and regulations of the

Securities and Exchange Commission (the “SEC”).

Certain information and footnote disclosures normally included in financial

statements prepared in accordance with U.S.

generally accepted accounting principles (“U.S.

GAAP”) have been condensed or omitted pursuant to such rules and regulations.

GAAP”) have been condensed or

omitted pursuant to such rules and regulations.

The condensed financial statements may not include all disclosures required by U.S.

however, the Company believes that the disclosures

are adequate to make the information presented not misleading.

These unaudited condensed financial statements should be read in conjunction

with the audited financial statements and the notes thereto for the year ended September 30, 2024 included in the Company’s Annual

Report on Form 10-K.

The condensed balance sheet at September 30, 2024 was derived from the audited financial statements of the Company.

In the opinion of management, all adjustments,

consisting of only normal recurring adjustments that are necessary to present fairly the financial position, results of operations, and

cash flows for the interim periods, have been made.

The results of operations for the interim periods are not necessarily indicative of

the operating results for the full fiscal year or any future periods.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

NOTE 2 – Liquidity

The accompanying condensed financial

statements have been prepared on the basis that the Company will continue as a going concern.

The Company has incurred losses since

inception, negative cash flows from operations since inception, and an accumulated deficit of $ 75.5 million as of March 31, 2025.

date, the Company’s revenues have not been sufficient to cover its full operating costs, and as such, it has been dependent on

funding operations through the issuance of debt and sale of equity securities which previously resulted in substantial doubt

regarding the Company's ability to continue as a going concern.

As of March 31, 2025, the Company had $ 1.3 million in cash and cash

equivalents and, as disclosed in “Note 13 – Subsequent Events,” the Company received net proceeds of approximately

$ 8.2 million from the April 2025 Financing.

The Company believes its current available cash and cash equivalents inclusive of the

April 2025 Financing, coupled with the anticipated increase in product revenues from minimum purchases and improved gross margins

under the Zimmer Amendment and forecasted operating expense reductions, will be sufficient to fund the Company’s planned

expenditures and meet its obligations for at least twelve months from the date of issuance of these financial statements.

In the future, the Company may need to raise additional

funds until it is able to generate sufficient revenues to fund its development activities.

The Company’s future operating activities,

coupled with its plans to raise capital or issue debt financing, may provide additional liquidity in the future;

however, these actions

are not solely within the control of the Company and the Company is unable to predict the outcome of these actions to generate the liquidity

ultimately required.

NOTE 3 – Summary of Significant Accounting

Management’s Use of Estimates

The preparation of financial statements in conformity

GAAP requires 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.

however, the Company believes that the disclosures are adequate to make the information presented not misleading.

These unaudited condensed

financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended September

30, 2024 included in the Company’s Annual Report on Form 10-K.

The condensed balance sheet at September 30, 2024 was derived from

the audited financial statements of the Company.

the opinion of management, all adjustments, consisting of only normal recurring adjustments that are necessary to present fairly the

financial position, results of operations, and cash flows for the interim periods, have been made.

The results of operations for the

interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods.

Medical Technologies Corporation

to Condensed Financial Statements

2 – Liquidity

accompanying condensed financial statements have been prepared on the basis that the Company will continue as a going concern.

has incurred losses since inception, negative cash flows from operations since inception, and an accumulated deficit of $ 77.0 million

as of June 30, 2025.

To date, the Company’s revenues have not been sufficient to cover its full operating costs, and as such, it

has been dependent on funding operations through the issuance of debt and sale of equity securities which previously resulted in substantial

doubt regarding the Company's ability to continue as a going concern.

As of June 30, 2025, the Company had $ 8.0 million in cash and cash

The Company believes its current available cash and cash equivalents coupled with the anticipated increase in product revenues

from minimum purchases and improved gross margins under the Zimmer Amendment and forecasted operating expense reductions, will be sufficient

to fund the Company’s planned expenditures and meet its obligations for at least twelve months from the date of issuance of these

financial statements.

the future, the Company may need to raise additional funds until it is able to generate sufficient revenues to fund its development activities.

The Company’s future operating activities, coupled with its plans to raise capital or issue debt financing, may provide additional

liquidity in the future;

however, these actions are not solely within the control of the Company and the Company is unable to predict

the outcome of these actions to generate the liquidity ultimately required.

3 – Summary of Significant Accounting Policies

Use of Estimates

preparation of financial statements in conformity with U.S.

GAAP requires 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.

Actual results could differ from those estimates.

Segment Information

Operating segments are components of an enterprise

for which separate financial information is available and are evaluated regularly by the Company’s chief operating decision maker

in deciding how to allocate resources and assessing performance.

The Company’s chief operating decision maker is its Chief Executive

The Company’s Chief Executive Officer views the Company’s operations and manages its business in one operating segment,

which is the business of development and commercialization of products related to comprehensive neuromodulation cEEG and sEEG recording,

monitoring, ablation, and brain stimulation solutions.

segments are components of an enterprise for which separate financial information is available and are evaluated regularly by the Company’s

chief operating decision maker in deciding how to allocate resources and assessing performance.

The Company’s chief operating decision

maker is its Chief Executive Officer.

The Company’s Chief Executive Officer views the Company’s operations and manages its

business in one operating segment, which is the business of development and commercialization of products related to comprehensive neuromodulation

cEEG and sEEG recording, monitoring, ablation, and brain stimulation solutions.

Accordingly, the Company has a single reporting segment.

Cash and Cash Equivalents

The Company considers all highly liquid investments

with an original contractual maturity on date of purchase of less than or equal to three months to be classified and presented as cash

equivalents on the condensed balance sheets.

Cash equivalents are stated at cost, which approximates fair value.

The Company’s cash

and cash equivalents may include demand deposit accounts with large financial institutions, institutional money market funds, U.S.

securities, and corporate notes and bonds.

The Company monitors the creditworthiness of the financial institutions, institutional money

market funds, and corporations in which the Company invests its surplus funds.

The Company has experienced no credit losses from its cash

and cash equivalent investments.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

Revenue Recognition

The Company entered into a development and distribution

agreement which has current and future revenue recognition implications.

See “Note 7 – Zimmer Distribution Agreement and Other

Product Revenue.”

In determining the appropriate amount of

revenue to be recognized as it fulfills its obligations under its agreements, the Company performs the following steps:

identification of the promised goods or services in the contract;

(ii) determination of whether the promised goods or services are

performance obligations, including whether they are distinct in the context of the contract;

(iii) measurement of the transaction

price, including the constraint on variable consideration;

(iv) allocation of the transaction price to the performance obligations

based on estimated selling prices;

and (v) recognition of revenue when (or as) the Company satisfies each performance

A performance obligation is a promise in a contract

to transfer a distinct good or service to the customer and is the unit of account in Accounting Standards Codification (“ASC”)

Topic 606 (“ASC 606”).

Performance obligations may include license rights, development services, and services associated with

regulatory submission and approval processes.

Significant management judgment is required to determine the level of effort required under

an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement.

If the Company

cannot reasonably estimate when its performance obligations are either completed or become inconsequential, then revenue recognition is

deferred until the Company can reasonably make such estimates.

Revenue is then recognized over the remaining estimated period of performance

using the cumulative catch-up method.

Product Revenue

Revenues from product sales are recognized when

control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration

the Company expects to be entitled to in exchange for those goods or services.

At the inception of each customer contract, performance

obligations are identified and the total transaction price is allocated to the performance obligations.

Cost of Product Revenue

Cost of product revenue consists of the manufacturing

and materials costs incurred by the Company’s third-party contract manufacturers in connection with OneRF Ablation system (the “OneRF

Products”), strip and grid cortical electrodes (the “Strip/Grid Products”), depth electrodes (“sEEG Products)

and outside supplier materials costs in connection with the electrode cable assembly products (“Electrode Cable Assembly Products”).

In addition, cost of product revenue includes royalty fees incurred in connection with the Company’s license agreements.

License Revenue

As part of the accounting for collaboration arrangements,

the Company must develop assumptions that require judgment to determine the stand-alone selling price of each performance obligation identified

in the contract.

The Company uses key assumptions to determine the stand-alone selling price, which may include forecasted revenues, development

timelines, reimbursement rates for personnel costs, discount rates and probabilities of technical and regulatory success.

allocates the total transaction price to each performance obligation based on the estimated relative standalone selling prices of the

promised goods or service underlying each performance obligation.

Licenses of intellectual property :

license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in

the arrangement, the Company recognizes revenues from non-refundable, up-front fees allocated to the license when the license is transferred

to the customer, and the customer can use and benefit from the license.

For licenses that are bundled with other promises, the Company

utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation

is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing

revenue from non-refundable, up-front fees.

The Company evaluates the measure of progress each reporting period and, if necessary, adjusts

the measure of performance and related revenue recognition.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

Milestone payments :

and Cash Equivalents

Company considers all highly liquid investments with an original contractual maturity on date of purchase of less than or equal to three

months to be classified and presented as cash equivalents on the condensed balance sheets.

Cash equivalents are stated at cost, which

approximates fair value.

The Company’s cash and cash equivalents may include demand deposit accounts with large financial institutions,

institutional money market funds, U.S.

Treasury securities, and corporate notes and bonds.

The Company monitors the creditworthiness

of the financial institutions, institutional money market funds, and corporations in which the Company invests its surplus funds.

Company has experienced no credit losses from its cash and cash equivalent investments.

Medical Technologies Corporation

to Condensed Financial Statements

Company entered into a development and distribution agreement which has current and future revenue recognition implications.

7 – Zimmer Distribution Agreement and Other Product Revenue.”

determining the appropriate amount of revenue to be recognized as it fulfills its obligations under its agreements, the Company performs

the following steps:

(i) identification of the promised goods or services in the contract;

(ii) determination of whether the promised

goods or services are performance obligations, including whether they are distinct in the context of the contract;

(iii) measurement

of the transaction price, including the constraint on variable consideration;

(iv) allocation of the transaction price to the performance

obligations based on estimated selling prices;

and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in

Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”).

Performance obligations may include license

rights, development services, and services associated with regulatory submission and approval processes.

Significant management judgment

is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete

its performance obligations under the arrangement.

If the Company cannot reasonably estimate when its performance obligations are either

completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates.

is then recognized over the remaining estimated period of performance using the cumulative catch-up method.

from product sales are recognized when control of the promised goods or services is transferred to the Company’s customers, in

an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services.

At the inception

of each arrangement that includes milestone payments, the Company evaluates whether the milestones are considered probable of being

achieved and estimates the amount to be included in the transaction price using the most likely amount method.

If it is probable

that a significant revenue reversal will not occur, the value of the associated milestone (such as a regulatory submission) is

included in the transaction price.

Milestone payments that are not within the control of the Company, such as approvals from

regulators, are not considered probable of being achieved until those approvals are received.

When the Company’s assessment of

probability of achievement changes and variable consideration becomes probable, any additional estimated consideration is allocated

to each performance obligation based on the estimated relative standalone selling prices of the promised goods or service underlying

each performance obligation and recorded in license revenues based upon when the customer obtains control of each element.

For arrangements that include

sales-based royalties, including milestone payments based on the level of sales, and the license is deemed to be the predominant item

to which the royalties relate, the Company recognizes revenue at the later of (a) when the related sales occur, or (b) when the performance

obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).

Warrant Liability

The Company issued warrants in connection with

its 2024 Private Placement.

of each customer contract, performance obligations are identified and the total transaction price is allocated to the performance obligations.

of Product Revenue

of product revenue consists of the manufacturing and materials costs incurred by the Company’s third-party contract manufacturers

in connection with OneRF Ablation system (the “OneRF Products”), strip and grid cortical electrodes (the “Strip/Grid

Products”), depth electrodes (“sEEG Products) and outside supplier materials costs in connection with the electrode cable

assembly products (“Electrode Cable Assembly Products”).

In addition, cost of product revenue includes royalty fees incurred

in connection with the Company’s license agreements as well as valuation adjustments for excess or obsolete inventory.

part of the accounting for collaboration arrangements, the Company must develop assumptions that require judgment to determine the stand-alone

selling price of each performance obligation identified in the contract.

The Company uses key assumptions to determine the stand-alone

selling price, which may include forecasted revenues, development timelines, reimbursement rates for personnel costs, discount rates

and probabilities of technical and regulatory success.

The Company allocates the total transaction price to each performance obligation

based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation.

of intellectual property :

If the license to the Company’s intellectual property is determined to be distinct from the other

performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, up-front fees allocated to

the license when the license is transferred to the customer, and the customer can use and benefit from the license.

For licenses that

are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine

whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of

measuring progress for purposes of recognizing revenue from non-refundable, up-front fees.

The Company evaluates the measure of progress

each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition.

Medical Technologies Corporation

to Condensed Financial Statements

At the inception of each arrangement that includes milestone payments, the Company evaluates whether the milestones are

considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method.

If it is probable that a significant revenue reversal will not occur, the value of the associated milestone (such as a regulatory submission)

is included in the transaction price.

Milestone payments that are not within the control of the Company, such as approvals from regulators,

are not considered probable of being achieved until those approvals are received.

When the Company’s assessment of probability

of achievement changes and variable consideration becomes probable, any additional estimated consideration is allocated to each performance

obligation based on the estimated relative standalone selling prices of the promised goods or service underlying each performance obligation

and recorded in license revenues based upon when the customer obtains control of each element.

For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license is deemed

to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (a) when the related sales occur,

or (b) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).

Company issued warrants in connection with its 2024 Private Placement.

See “Note 12– Stockholders’ Equity”.

The Company accounts for these warrants as a

liability at fair value when warrant pricing protection provisions are not available to other common stockholders.

Additionally, issuance

costs associated with the warrant liability are expensed as incurred and reflected as a financing cost in the accompanying condensed statements

of operations.

The Company adjusts the liability for changes in fair value until the earlier of the exercise or expiration of the warrants

for any period when pricing protections remain in place.

Any future change in the fair value of the warrant liability is recognized in

the condensed statements of operations under the fair value change in the warrant liability line item.

Fair Value of Financial Instruments

The Company’s accounting for fair value

measurements of assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring or nonrecurring

basis adheres to the Financial Accounting Standards Board (“FASB”) fair value hierarchy that prioritizes the inputs to valuation

techniques used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical

assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level

3 measurements).

Company accounts for these warrants as a liability at fair value when warrant pricing protection provisions are not available to other

common stockholders.

Additionally, issuance costs associated with the warrant liability are expensed as incurred and reflected as a financing

cost in the accompanying condensed statements of operations.

The Company adjusts the liability for changes in fair value until the earlier

of the exercise or expiration of the warrants for any period when pricing protections remain in place.

Any future change in the fair

value of the warrant liability is recognized in the condensed statements of operations under the fair value change in the warrant liability

Value of Financial Instruments

Company’s accounting for fair value measurements of assets and liabilities that are recognized or disclosed at fair value in the

financial statements on a recurring or nonrecurring basis adheres to the Financial Accounting Standards Board (“FASB”) fair

value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

The hierarchy gives the highest priority

to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements

involving significant unobservable inputs (Level 3 measurements).

The three levels of the fair value hierarchy are as follows:

Level 1 Inputs:

Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the Company at the measurement date.

Level 2 Inputs:

Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 Inputs:

Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

As of March 31, 2025 and September 30, 2024, the

fair values of cash, cash equivalents, accounts receivable, inventory, prepaids and deferred offering costs, accounts payable and accrued

expenses and other liabilities approximated their carrying values because of the short-term nature of these assets or liabilities.

fair value of the warrant liability was based on Level 3 inputs as well as the Company’s underlying stock price and associated volatility,

expected term of the warrants and market interest rates.

There were no transfers between fair value hierarchy levels during the

three and six months ended March 31, 2025 and 2024.

The fair value of financial instruments measured

on a recurring basis is as follows:

As of March 31, 2025

Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the Company at the measurement

Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or

indirectly, for substantially the full term of the asset or liability.

Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not

available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement

of June 30, 2025 and September 30, 2024, the fair values of cash, cash equivalents, accounts receivable, inventory, prepaids and deferred

offering costs, accounts payable and accrued expenses and other liabilities approximated their carrying values because of the short-term

nature of these assets or liabilities.

The fair value of the warrant liability was based on Level 3 inputs as well as the Company’s

underlying stock price and associated volatility, expected term of the warrants and market interest rates.

There were no transfers

between fair value hierarchy levels during the three and nine months ended June 30, 2025 and 2024.

Medical Technologies Corporation

to Condensed Financial Statements

fair value of financial instruments measured on a recurring basis is as follows:

As of June 30, 2025

Warrant liability

Total liabilities at fair value

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

As of September 30, 2024

1 unchanged sentence

Total liabilities at fair value

The following table provides a roll-forward of

the warrant liability measured at fair value on a recurring basis using unobservable level 3 inputs for the six months ended March

following table provides a roll-forward of the warrant liability measured at fair value on a recurring basis using unobservable level 3

inputs for the nine months ended June 30, 2025.

Warrant liability

1 unchanged sentence

Change in fair value of warrant liability

( 1,099,421 )

Balance as of end of period

There were no financial instruments measured on

a non-recurring basis during the periods presented.

Intellectual Property

The Company has entered into two licensing

agreements with major research institutions, which allow for access to certain patented technology and know-how.

Payments under those

agreements are capitalized and amortized to selling, general and administrative expense over the expected useful life of the acquired

Property and Equipment

Property and equipment is recorded at cost and

reduced by accumulated depreciation.

Depreciation expense is recognized over the estimated useful lives of the assets using the straight-line

The estimated useful life for equipment and furniture ranges from three to seven years.

Tangible assets acquired for research

and development activities and that have alternative use are capitalized over the useful life of the acquired asset.

Estimated useful

lives are periodically reviewed, and, when appropriate, changes are made prospectively.

When certain events or changes in operating conditions

occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability of the carrying amounts.

and repairs are charged directly to expense as incurred.

Impairment of Long-Lived Assets

The Company evaluates its long-lived assets, which

consist of licensed intellectual property, property and equipment and right-of-use assets for impairment whenever events or changes in

circumstances indicate that the carrying value of these assets may not be recoverable.

The Company assesses the recoverability of long-lived

assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows.

the asset is considered to be impaired, the amount of impairment is measured as the difference between the carrying value and the fair

value of the impaired asset.

Accounts Receivable and Allowances for Credit

The Company records a provision for credit losses,

when appropriate, based on historical experience, current conditions and reasonable supportable forecasts.

In estimating the allowance

for credit losses, the Company considers, among other factors, the estimate of credit losses over the remaining expected life of the asset,

primarily using historical experience and current economic conditions that could affect the collectability of the balances in the future.

Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered.

were no financial instruments measured on a non-recurring basis during the periods presented.

Company has entered into two licensing agreements with major research institutions, which allow for access to certain patented

technology and know-how.

Payments under those agreements are capitalized and amortized to selling, general and administrative expense

over the expected useful life of the acquired technology.

and Equipment

and equipment is recorded at cost and reduced by accumulated depreciation.

Depreciation expense is recognized over the estimated useful

lives of the assets using the straight-line method.

The estimated useful life for equipment and furniture ranges from three to seven

Tangible assets acquired for research and development activities and that have alternative use are capitalized over the useful

life of the acquired asset.

Estimated useful lives are periodically reviewed, and, when appropriate, changes are made prospectively.

When certain events or changes in operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed

on the recoverability of the carrying amounts.

Maintenance and repairs are charged directly to expense as incurred.

of Long-Lived Assets

Company evaluates its long-lived assets, which consist of licensed intellectual property, property and equipment and right-of-use assets

for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable.

Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through

undiscounted expected future cash flows.

If the asset is considered to be impaired, the amount of impairment is measured as the difference

between the carrying value and the fair value of the impaired asset.

Medical Technologies Corporation

to Condensed Financial Statements

Receivable and Allowances for Credit Losses

Company records a provision for credit losses, when appropriate, based on historical experience, current conditions and reasonable supportable

In estimating the allowance for credit losses, the Company considers, among other factors, the estimate of credit losses over

the remaining expected life of the asset, primarily using historical experience and current economic conditions that could affect the

collectability of the balances in the future.

Account balances are charged off against the allowance when the Company believes that it

is probable that the receivable will not be recovered.

Actual write-offs may be in excess of the Company’s estimated allowance.

The Company has not incurred any bad debt expense

to date and no allowance for credit losses has been recorded during the periods presented.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

Inventory is stated at the lower of cost (using

the first-in, first-out “FIFO” method) or net realizable value.

The Company calculates inventory valuation adjustments for

excess and obsolete inventory, when appropriate, based on current inventory levels, movement, expected useful lives, and estimated future

demand of the products and spare parts.

The Company’s inventory is currently comprised of Strip/Grid Products, sEEG Products, OneRF

Products and Electrode Cable Assembly Products component, work-in-process and finished good product.

The Strip/Grid Products, sEEG Products

and OneRF Products are produced by a third-party contract manufacturer and the Electrode Cable Assembly Products are obtained from outside

No inventory valuation allowance was required during the periods presented.

Research and Development Costs

Research and development costs are charged to

expense as incurred.

Research and development expenses comprise of costs incurred in performing research and development activities, including

compensation and benefits for research and development employees (including stock-based compensation), overhead expenses, cost of laboratory

supplies, clinical trial and related clinical manufacturing expenses, costs related to regulatory operations, fees paid to consultants

and other outside expenses.

Non-refundable advance payments for goods and services that will be used in future research and development

activities are expensed when the activity is performed or when the goods have been received, rather than when payment is made, in accordance

with ASC 730, Research and Development .

Advertising Expense

Advertising expense is charged to selling, general

and administrative expenses during the period that it is incurred.

Total advertising expense amounted to $ 45,000 and $ 83,543 for the three

and six months ended March 31, 2025, respectively.

Total advertising expense amounted to $ 15,781 and $ 65,053 for the three and six months

ended March 31, 2024, respectively.

Selling, General and Administrative

Selling, general and administrative expenses consist

primarily of personnel-related costs including stock-based compensation for personnel in functions not directly associated with research

and development activities.

Other significant costs include legal and litigation costs relating to corporate matters, intellectual property

costs, professional fees for consultants assisting with financial and administrative matters, and sales and marketing in connection with

the commercial sales of the Company’s products.

Stock-Based Compensation

The Company accounts for stock-based compensation

in accordance with the provisions of ASC 718, Compensation — Stock Compensation (“ASC 718”).

Accordingly, compensation

costs related to equity instruments granted are recognized at the grant-date fair value over the requisite service period.

records forfeitures when they occur.

Stock-based compensation arrangements to non-employees are accounted for in accordance with the applicable

provisions of ASC 718.

Income taxes are accounted for under the asset

and liability method.

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between

the financial statement carrying amounts of existing assets and liabilities and their respective tax base and operating loss and tax credit

carryforwards.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years

in which those temporary differences are expected to be recovered or settled.

Deferred tax assets are reduced by a valuation allowance

if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

Net Loss Per Share

For the Company, basic loss per share of common

stock is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

Diluted earnings or loss per share of common stock

is computed similarly to basic earnings or loss per share except the weighted average shares outstanding are increased to include additional

shares from the assumed exercise of any common stock equivalents, if dilutive.

The Company’s warrants, stock options, and restricted

stock units while outstanding are considered common stock equivalents for this purpose.

Diluted earnings or loss per share of common stock

is computed utilizing the treasury method for the warrants, stock options and restricted stock units.

No incremental common stock equivalents

were included in calculating diluted loss per share because such inclusion would be anti-dilutive given the net loss reported for the

three and six months ended March 31, 2025 and 2024.

The following potential common shares were not

considered in the computation of basic net loss per share as their effect would have been anti-dilutive for the three and six months ended

March 31, 2025 and 2024:

Company has not incurred any bad debt expense to date and no allowance for credit losses has been recorded during the

periods presented.

is stated at the lower of cost (using the first-in, first-out “FIFO” method) or net realizable value.

The Company calculates

inventory valuation adjustments for excess and obsolete inventory, when appropriate, based on current inventory levels, movement, expected

useful lives, and estimated future demand of the products and spare parts.

The Company’s inventory is currently comprised of Strip/Grid

Products, sEEG Products, OneRF Products and Electrode Cable Assembly Products component, work-in-process and finished good product.

Strip/Grid Products, sEEG Products and OneRF Products are produced by a third-party contract manufacturer and the Electrode Cable Assembly

Products are obtained from outside suppliers.

and Development Costs

and development costs are charged to expense as incurred.

Research and development expenses comprise of costs incurred in performing

research and development activities, including compensation and benefits for research and development employees (including stock-based

compensation), overhead expenses, cost of laboratory supplies, clinical trial and related clinical manufacturing expenses, costs related

to regulatory operations, fees paid to consultants and other outside expenses.

Non-refundable advance payments for goods and services

that will be used in future research and development activities are expensed when the activity is performed or when the goods have been

received, rather than when payment is made, in accordance with ASC 730, Research and Development .

expense is charged to selling, general and administrative expenses during the period that it is incurred.

Total advertising expense amounted

to $ 45,120 and $ 128,663 for the three and nine months ended June 30, 2025, respectively.

Total advertising expense amounted to $ 45,000

and $ 110,053 for the three and nine months ended June 30, 2024, respectively.

General and Administrative

general and administrative expenses consist primarily of personnel-related costs including stock-based compensation for personnel in

functions not directly associated with research and development activities.

Other significant costs include legal and litigation costs

relating to corporate matters, intellectual property costs, professional fees for consultants assisting with financial and administrative

matters, and sales and marketing in connection with the commercial sales of the Company’s products.

Company accounts for stock-based compensation in accordance with the provisions of ASC 718, Compensation — Stock Compensation

Accordingly, compensation costs related to equity instruments granted are recognized at the grant-date fair

value over the requisite service period.

The Company records forfeitures when they occur.

Stock-based compensation arrangements to non-employees

are accounted for in accordance with the applicable provisions of ASC 718.

Medical Technologies Corporation

to Condensed Financial Statements

taxes are accounted for under the asset and liability method.

Deferred tax assets and liabilities are recognized for the future tax consequences

attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective

tax base and operating loss and tax credit carryforwards.

Deferred tax assets and liabilities are measured using enacted tax rates expected

to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

Deferred tax assets

are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Loss Per Share

the Company, basic loss per share of common stock is computed by dividing net loss by the weighted average number of shares of common

stock outstanding during the period.

earnings or loss per share of common stock is computed similarly to basic earnings or loss per share except the weighted average shares

outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive.

The Company’s

warrants, stock options, and restricted stock units while outstanding are considered common stock equivalents for this purpose.

earnings or loss per share of common stock is computed utilizing the treasury method for the warrants, stock options and restricted stock

No incremental common stock equivalents were included in calculating diluted loss per share because such inclusion would be anti-dilutive

given the net loss reported for the three and nine months ended June 30, 2025 and 2024.

following potential common shares were not considered in the computation of basic net loss per share as their effect would have been

anti-dilutive for the three and nine months ended June 30, 2025 and 2024:

Stock options

Restricted stock units

Recent Accounting Pronouncements

In November 2023, the FASB issued Accounting

Standards Update (“ASU”) 2023-07 - Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , which

enhances reportable segment disclosure requirements, primarily through disclosures of significant segment expenses.

This ASU is effective

for fiscal years beginning after December 15, 2023, including interim periods within fiscal years beginning after December 15, 2024, with

early adoption permitted.

Accounting Pronouncements

November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07 - Segment Reporting (Topic 280):

to Reportable Segment Disclosures , which enhances reportable segment disclosure requirements, primarily through disclosures of significant

segment expenses.

This ASU is effective for fiscal years beginning after December 15, 2023, including interim periods within fiscal years

beginning after December 15, 2024, with early adoption permitted.

The guidance must be applied retrospectively to all prior periods presented.

The Company adopted this guidance

on October 1, 2024.

The adoption of this ASU did not have a material impact on the Company’s financial statements.

In December 2023, the FASB issued ASU 2023-09

Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which enhances income tax disclosures primarily related to the

rate reconciliation and income taxes paid information.

This guidance also includes certain other amendments to improve the effectiveness

of income tax disclosures.

This ASU is effective for fiscal years beginning after December 15, 2024, including interim periods within

those fiscal years and should be applied on a prospective basis, with retrospective application permitted.

The Company is currently evaluating

the impact of the adoption of this guidance on its financial statements.

NOTE 4 – Commitments and Contingencies

The Company adopted this guidance on October 1, 2024.

The adoption of this ASU did not have a material impact on the Company’s

financial statements.

December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which enhances income

tax disclosures primarily related to the rate reconciliation and income taxes paid information.

This guidance also includes certain other

amendments to improve the effectiveness of income tax disclosures.

This ASU is effective for fiscal years beginning after December 15,

2024, including interim periods within those fiscal years and should be applied on a prospective basis, with retrospective application

The Company is currently evaluating the impact of the adoption of this guidance on its financial statements.

4 – Commitments and Contingencies

License Agreement

The Company has entered into an exclusive start-up

company license agreement with the Wisconsin Alumni Research Foundation (“WARF”) for WARF’s neural probe array and thin

film micro electrode technology.

The Company entered into an Amended and Restated Exclusive Start-up Company License Agreement (the “WARF

License”) with WARF on January 21, 2020, which amended and restated in full the prior license agreement between WARF and NeuroOne,

LLC, a predecessor of the Company, dated October 1, 2014, as amended on February 22, 2017, March 30, 2019 and September 18, 2019.

The WARF License grants to the Company an

exclusive license to make, use and sell, in the United States only, products that employ certain licensed patents for a neural

probe array or thin-film micro electrode array and method.

The Company agreed to pay WARF a royalty equal to a single-digit

percentage of our product sales pursuant to the WARF License, with a minimum annual royalty payment of $ 50,000 for 2020,

Company has entered into an exclusive start-up company license agreement with the Wisconsin Alumni Research Foundation (“WARF”)

for WARF’s neural probe array and thin film micro electrode technology.

The Company entered into an Amended and Restated Exclusive

Start-up Company License Agreement (the “WARF License”) with WARF on January 21, 2020, which amended and restated in full

the prior license agreement between WARF and NeuroOne, LLC, a predecessor of the Company, dated October 1, 2014, as amended on February

22, 2017, March 30, 2019 and September 18, 2019.

Medical Technologies Corporation

to Condensed Financial Statements

WARF License grants to the Company an exclusive license to make, use and sell, in the United States only, products that employ certain

licensed patents for a neural probe array or thin-film micro electrode array and method.

The Company agreed to pay WARF a royalty equal

to a single-digit percentage of our product sales pursuant to the WARF License, with a minimum annual royalty payment of $ 50,000 for

2020, $ 100,000 for 2021 and $ 150,000 for 2022 and each calendar year thereafter that the WARF License is in effect.

2 unchanged sentences

the royalty rate will be tripled for the remaining term of the WARF License.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

WARF may terminate the WARF License on 30 days’

written notice if we default on the payments of amounts due to WARF or fail to timely submit development reports, actively pursue our

development plan or breach any other covenant in the WARF License and fail to remedy such default in 90 days or in the event of certain

bankruptcy events involving us.

WARF may also terminate the WARF License (i) on 90 days’ notice if we had failed to have commercial

sales of one or more FDA-approved products under the WARF License by June 30, 2021 or (ii) if, after royalties earned on sales begin to

be paid, such earned royalties cease for more than four calendar quarters.

The first commercial sale occurred on December 7, 2020, prior

to the June 30, 2021 deadline.

The WARF License otherwise expires by its terms on the date that no valid claims on the patents licensed

thereunder remain.

The Company expects the latest expiration of a licensed patent to occur in 2030.

During the three months ended March 31, 2025 and

2024, $ 37,500 in royalty fees were incurred related to the WARF License during each of these periods.

During the six months ended March

31, 2025 and 2024, $ 75,000 in royalty fees were incurred during each of these periods related to the WARF License.

The royalty fees were

reflected as a component of cost of product revenue.

The Company has an exclusive license and development

agreement with the Mayo Foundation for Medical Education and Research (“Mayo”) related to certain intellectual property and

development services for thin film micro electrode technology (“Mayo Agreement”).

If the Company is successful in obtaining

regulatory approval, the Company is to pay royalties to Mayo based on a percentage of net sales of products of the licensed technology

through the term of the Mayo Agreement, set to expire May 25, 2037.

During the three months ended March 31, 2025 and 2024,

zero and $ 4,146 in royalty fees were incurred related to the Mayo Agreement, respectively.

During the six months ended March 31,

2025 and 2024, zero and $ 4,415 in royalty fees were incurred related to the Mayo Agreement, respectively.

The royalty fees were

reflected as a component of cost of product revenue.

Facility Leases

Headquarters Lease

On May 20, 2024, the Company amended its non-cancellable

headquarters lease (the “Lease”) with certain landlords (together, the “Landlord”) pursuant to which the Company

leases office space located at 7599 Anagram Drive, Eden Prairie, Minnesota (the “Premises”).

The Company took possession of

the Premises on November 1, 2019, with the term of the Lease ending June 30, 2028, as amended, unless terminated earlier (the “Lease

The base rent for the Premises ranges from $ 6,410 per month to $ 7,107 per month by the end of the Lease Term as amended.

In addition, as long as the Company is not in default under the Lease, the Company will be entitled to an abatement of its base rent for

the first two months of the amended Lease Term beginning in April 2025 and for the last month of the amended Lease Term (June 2028).

addition, the Company pays its pro rata share of the Landlord’s annual operating expenses associated with the Premises.

Los Gatos Lease

On July 1, 2021, the Company entered into a non-cancellable

facility lease (the “Los Gatos Lease”), pursuant to which the Company agreed to rent office space for its research and development

operations located at 718 University Avenue, Suite #111, Los Gatos, California.

The facility space under the Los Gatos Lease is approximately

1,162 square feet.

may terminate the WARF License on 30 days’ written notice if we default on the payments of amounts due to WARF or fail to timely

submit development reports, actively pursue our development plan or breach any other covenant in the WARF License and fail to remedy

such default in 90 days or in the event of certain bankruptcy events involving us.

WARF may also terminate the WARF License (i) on 90

days’ notice if we had failed to have commercial sales of one or more FDA-approved products under the WARF License by June 30,

2021 or (ii) if, after royalties earned on sales begin to be paid, such earned royalties cease for more than four calendar quarters.

The first commercial sale occurred on December 7, 2020, prior to the June 30, 2021 deadline.

The WARF License otherwise expires

by its terms on the date that no valid claims on the patents licensed thereunder remain.

The Company expects the latest expiration of

a licensed patent to occur in 2030.

the three months ended June 30, 2025 and 2024, $ 37,500 in royalty fees were incurred related to the WARF License during each of these

During the nine months ended June 30, 2025 and 2024, $ 112,500 in royalty fees were incurred during each of these periods related

to the WARF License.

The royalty fees were reflected as a component of cost of product revenue.

Company has an exclusive license and development agreement with the Mayo Foundation for Medical Education and Research (“Mayo”)

related to certain intellectual property and development services for thin film micro electrode technology (“Mayo Agreement”).

If the Company is successful in obtaining regulatory approval, the Company is to pay royalties to Mayo based on a percentage of net sales

of products of the licensed technology through the term of the Mayo Agreement, set to expire May 25, 2037.

During the three

months ended June 30, 2025 and 2024, no royalty fees were incurred related to the Mayo Agreement, respectively.

During the nine months

ended June 30, 2025 and 2024, zero and $ 4,415 in royalty fees were incurred related to the Mayo Agreement, respectively.

royalty fees were reflected as a component of cost of product revenue.

May 20, 2024, the Company amended its non-cancellable headquarters lease (the “Lease”) with certain landlords (together,

the “Landlord”) pursuant to which the Company leases office space located at 7599 Anagram Drive, Eden Prairie, Minnesota

(the “Premises”).

The Company took possession of the Premises on November 1, 2019, with the term of the Lease ending June

30, 2028, as amended, unless terminated earlier (the “Lease Term”).

The base rent for the Premises ranges from $ 6,410 per

month to $ 7,107 per month by the end of the Lease Term as amended.

In addition, as long as the Company is not in default under the Lease,

the Company will be entitled to an abatement of its base rent for the first two months of the amended Lease Term beginning in April 2025

and for the last month of the amended Lease Term (June 2028).

In addition, the Company pays its pro rata share of the Landlord’s

annual operating expenses associated with the Premises.

Medical Technologies Corporation

to Condensed Financial Statements

July 1, 2021, the Company entered into a non-cancellable facility lease (the “Los Gatos Lease”), pursuant to which the Company

agreed to rent office space for its research and development operations located at 718 University Avenue, Suite #111, Los Gatos, California.

The facility space under the Los Gatos Lease is approximately 1,162 square feet.

The Company took possession of the office space on July

The initial monthly rent under the Los Gatos Lease

was $ 4,241 .

On November 4, 2022, the Los Gatos Lease was extended for an additional two years to December 31, 2024.

The rent under the

extended Los Gatos Lease ranged from $ 4,453 to $ 4,632 per month beginning on January 1, 2023.

On December 17, 2024, the Los Gatos Lease

was extended again for an additional two years to December 31, 2026.

The rent under the newly extended Los Gatos Lease ranges from $ 4,939

to $ 5,087 per month beginning on January 1, 2025.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

During the three and six months ended March 31,

2025, rent expense associated with the facility leases amounted to $ 70,065 and $ 139,243 , respectively.

During the three and six months

ended March 31, 2024, rent expense associated with the facility leases amounted to $ 43,052 and $ 86,105 , respectively

Supplemental cash flow information related to

the operating leases was as follows:

Six Months Ended

The initial monthly rent under the Los Gatos Lease was $ 4,241 .

On November 4, 2022, the Los Gatos Lease was extended for an

additional two years to December 31, 2024.

The rent under the extended Los Gatos Lease ranged from $ 4,453 to $ 4,632 per month beginning

on January 1, 2023.

On December 17, 2024, the Los Gatos Lease was extended again for an additional two years to December 31, 2026.

rent under the newly extended Los Gatos Lease ranges from $ 4,939 to $ 5,087 per month beginning on January 1, 2025.

the three and nine months ended June 30, 2025, rent expense associated with the facility leases amounted to $ 70,121 and $ 209,364 , respectively.

During the three and nine months ended June 30, 2024, rent expense associated with the facility leases amounted to $ 43,455 and $ 129,560 ,

respectively.

cash flow information related to the operating leases was as follows:

For the Nine Months Ended

Cash paid for amounts included in the measurement of lease liability:

2 unchanged sentences

Operating leases

Supplemental balance sheet information related

to the operating leases was as follows:

balance sheet information related to the operating leases was as follows:

September 30,

3 unchanged sentences

Weighted average discount rate 7.2 % 7.4 %

Maturity of the lease liabilities was as follows:

of the lease liabilities was as follows:

Calendar Year

3 unchanged sentences

Long-term portion

Other Contingencies

In the ordinary course of business, from

time to time, the Company may be subject to a broad range of claims and legal proceedings that relate to contractual allegations,

patent infringement and other claims.

The Company establishes accruals when applicable for matters and commitments which it believes

losses are probable and can be reasonably estimated.

To date, no loss contingency for such matters and potential commitments have

been recorded.

Although it is not possible to predict with certainty the outcome of these matters or potential commitments, the

Company is of the opinion that the ultimate resolution of these matters and potential commitments will not have a material adverse

effect on its results of operations or financial position.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

NOTE 5 – Supplemental Balance Sheet Information

Inventory consisted of the following:

Medical Technologies Corporation

to Condensed Financial Statements

Contingencies

the ordinary course of business, from time to time, the Company may be subject to a broad range of claims and legal proceedings that

relate to contractual allegations, patent infringement and other claims.

The Company establishes accruals when applicable for matters

and commitments which it believes losses are probable and can be reasonably estimated.

To date, no loss contingency for such matters

and potential commitments have been recorded.

Although it is not possible to predict with certainty the outcome of these matters or potential

commitments, the Company is of the opinion that the ultimate resolution of these matters and potential commitments will not have a material

adverse effect on its results of operations or financial position.

5 – Supplemental Balance Sheet Information

consisted of the following:

September 30,

2 unchanged sentences

Finished goods

Intangible assets rollforward is as follows:

and obsolete valuation reserve adjustments reflected as a reduction of work-in-process inventory at June 30, 2025 and September 30, 2024

were $ 7,500 and zero , respectively.

assets rollforward is as follows:

Net Intangibles, September 30, 2024

12 - 13 years

Net Intangibles, March 31, 2025

Amortization expense was $ 5,579 and $ 11,158 for

the three and six months ended March 31, 2025, respectively, and $ 5,579 and $ 11,158 for the three and six months ended March 31, 2024,

respectively.

Property and Equipment, Net

Property and equipment held for use by category

are presented in the following table:

Net Intangibles, June 30, 2025

expense was $ 5,579 and $ 16,737 for the three and nine months ended June 30, 2025, respectively, and $ 5,578 and $ 16,736 for the three

and nine months ended June 30, 2024, respectively.

and Equipment, Net

and equipment held for use by category are presented in the following table:

September 30,

3 unchanged sentences

Property and equipment, net

Depreciation expense was $ 60,055 and $ 119,603

for the three months and six months ended March 31, 2025, respectively, and $ 55,321 and $ 108,399 for the three and six months ended March

31, 2024, respectively.

NOTE 6 – Accrued Expenses and Other Liabilities

Accrued expenses consisted of the following at

March 31, 2025 and September 30, 2024:

Medical Technologies Corporation

to Condensed Financial Statements

expense was $ 61,015 and $ 180,618 for the three months and nine months ended June 30, 2025, respectively, and $ 57,529 and $ 165,928 for

the three and nine months ended June 30, 2024, respectively.

6 – Accrued Expenses and Other Liabilities

expenses consisted of the following at June 30, 2025 and September 30, 2024:

September 30,

2 unchanged sentences

Royalty payments

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

NOTE 7 – Zimmer Distribution Agreement

and Other Product Revenue

On October 25, 2024, the Company entered

into the Zimmer Amended and Restated Distribution Agreement (the “Amendment”) with Zimmer pursuant to which the Company granted

Zimmer the exclusive right and license to distribute its OneRF Ablation System for an upfront payment of $ 3.0 million, with eligibility

for an additional $ 1.0 million payment from Zimmer upon achievement of certain specified net sales milestones.

The Company and Zimmer previously entered into

an Exclusive Development and Distribution Agreement dated July 20, 2020, related to the sEEG and Strip/Grid Product Systems, which was

subsequently amended pursuant to the terms and conditions of a letter agreement dated January 6, 2021, a Second Amendment to Exclusive

Development and Distribution Agreement dated June 28, 2022, and a Third Amendment to Exclusive Development and Distribution Agreement

dated August 2, 2022 (collectively, the “EDDA”).The EDDAs executed prior to the Amendment granted Zimmer exclusive global

rights to distribute the Strip/Grid Products and the Electrode Cable Assembly Products.

Additionally, the Company granted Zimmer the exclusive

right and license to distribute certain sEEG Products developed by the Company and together with the Strip/Grid Products and Electrode

Cable Assembly Products, the “Products”.

In addition, under the prior EDDAs, the Company and Zimmer agreed to collaborate

with respect to development activities through a joint development committee composed of an equal number of representatives of Zimmer

and the Company.

Under the Amendment, Zimmer paid the Company $ 3.0

million for an exclusive RF Distribution License (the “RF Distribution License” and “License”) for commercialization

of its OneRF™ product.

In addition, the Company is eligible to receive a future milestone payment of $ 1.0 million upon reaching

a one-time sales volume threshold.

The revised term under the Amendment (the “Term”)

began on the effective date of the Amendment and will remain in effect until October 31, 2034.

Upon the expiration of the Term, it may

be renewed upon the mutual written of the parties.

The Amended and Restated Exclusive Development and Distribution Agreement may be terminated

before the expiration of the Term in accordance with certain terms under the Amendment.

In addition, the license rights granted to Zimmer

under this Amendment shall be exclusive (i) until September 30, 2032 for the sEEG Products and Strip/Grid Products;

and (ii) until October

31, 2034 for the OneRF™ Product System.

License Revenue

The Amendment was accounted for under the provisions

of ASC 606 as a separate contract from the prior EDDAs.

In accordance with the provisions under ASC 606, the Company identified the

transfer of the RF Distribution License as the sole performance obligation of the RF Distribution License.

The distribution rights granted

to Zimmer, inclusive of the access to the underlying intellectual property for future production of the OneRF Product if required, was

found to have significant standalone functionality as no additional substantive input was required by the Company on a go forward basis.

Lastly, ancillary support related to the Amendment was concluded to be a perfunctory obligation and de minimis in terms of required resources.

The transaction price associated with the Amendment

was $ 3.0 million, which was comprised solely of the OneRF Exclusivity Fee and was allocated totally to RF Distribution License performance

Sales Volume Milestone and Payment

The sales volume milestone associated with the

Amendment was determined by sales or usage-based thresholds.

The sales volume milestone was accounted for under the sales milestone recognition

constraint and will be accounted for as constrained variable consideration.

The Company has applied the sales volume constraint to

the milestone payment and will not recognize revenue until the sales volume threshold occurs.

Recognition of License Revenue

The Company determined that the RF

Distribution License represented functional intellectual property given Zimmer’s access to the underlying intellectual

property associated with the OneRF Product.

As such, the revenue related to the licenses was recognized at the point in time in

which the license/know-how was delivered to Zimmer which occurred in October 2024.

Revenue recognized under the Amendment

during the six months ended March 31, 2025 was $ 3.0 million.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

Product Revenue

Product revenue related to the Company’s

Strip/Grid Products, sEEG Products, OneRF Products and Electrode Cable Assembly Products.

Product revenue recognized during the three and

six months ended March 31, 2025 was $ 1,386,550 and $ 4,660,717 , respectively and was comprised solely of OneRF Product revenue.

OneRF Products

were subject to the Amendment upon its execution in October 2024.

Product revenue recognized during the three and

six months ended March 31, 2024 was $ 1,377,294 and $ 2,354,943 , respectively, and was comprised of Strip/Grid Products, sEEG Products and

Electrode Cable Assembly Products.

NOTE 8 – Stock-Based Compensation

During the three and six months ended March 31,

2025 and 2024, stock-based compensation expense related to stock-based awards was included in selling, general and administrative and

research and development costs as follows in the accompanying condensed statements of operations.

7 – Zimmer Distribution Agreement and Other Product Revenue

October 25, 2024, the Company entered into the Zimmer Amended and Restated Distribution Agreement (the “Amendment”) with

Zimmer pursuant to which the Company granted Zimmer the exclusive right and license to distribute its OneRF Ablation System for an upfront

payment of $ 3.0 million, with eligibility for an additional $ 1.0 million payment from Zimmer upon achievement of certain specified net

sales milestones.

Company and Zimmer previously entered into an Exclusive Development and Distribution Agreement dated July 20, 2020, related to the sEEG

and Strip/Grid Product Systems, which was subsequently amended pursuant to the terms and conditions of a letter agreement dated January

6, 2021, a Second Amendment to Exclusive Development and Distribution Agreement dated June 28, 2022, and a Third Amendment to Exclusive

Development and Distribution Agreement dated August 2, 2022 (collectively, the “EDDA”).The EDDAs executed prior to the Amendment

granted Zimmer exclusive global rights to distribute the Strip/Grid Products and the Electrode Cable Assembly Products.

Additionally,

the Company granted Zimmer the exclusive right and license to distribute certain sEEG Products developed by the Company and together

with the Strip/Grid Products and Electrode Cable Assembly Products, the “Products”.

In addition, under the prior EDDAs, the

Company and Zimmer agreed to collaborate with respect to development activities through a joint development committee composed of an

equal number of representatives of Zimmer and the Company.

the Amendment, Zimmer paid the Company $ 3.0 million for an exclusive RF Distribution License (the “RF Distribution License”

and “License”) for commercialization of its OneRF™ product.

In addition, the Company is eligible to receive a future

milestone payment of $ 1.0 million upon reaching a one-time sales volume threshold.

revised term under the Amendment (the “Term”) began on the effective date of the Amendment and will remain in effect until

October 31, 2034.

Upon the expiration of the Term, it may be renewed upon the mutual written of the parties.

The Amended and Restated

Exclusive Development and Distribution Agreement may be terminated before the expiration of the Term in accordance with certain terms

under the Amendment.

In addition, the license rights granted to Zimmer under this Amendment shall be exclusive (i) until September 30,

2032 for the sEEG Products and Strip/Grid Products;

and (ii) until October 31, 2034 for the OneRF™ Product System.

Amendment was accounted for under the provisions of ASC 606 as a separate contract from the prior EDDAs.

In accordance with the provisions

under ASC 606, the Company identified the transfer of the RF Distribution License as the sole performance obligation of the RF Distribution

The distribution rights granted to Zimmer, inclusive of the access to the underlying intellectual property for future production

of the OneRF Product if required, was found to have significant standalone functionality as no additional substantive input was required

by the Company on a go forward basis.

Lastly, ancillary support related to the Amendment was concluded to be a perfunctory obligation

and de minimis in terms of required resources.

transaction price associated with the Amendment was $ 3.0 million, which was comprised solely of the OneRF Exclusivity Fee and was

allocated totally to RF Distribution License performance obligation.

Medical Technologies Corporation

to Condensed Financial Statements

Volume Milestone and Payment

sales volume milestone associated with the Amendment was determined by sales or usage-based thresholds.

The sales volume milestone was

accounted for under the sales milestone recognition constraint and will be accounted for as constrained variable consideration.

Company has applied the sales volume constraint to the milestone payment and will not recognize revenue until the sales volume threshold

of License Revenue

Company determined that the RF Distribution License represented functional intellectual property given Zimmer’s access to

the underlying intellectual property associated with the OneRF Product.

As such, the revenue related to the licenses was recognized at

the point in time in which the license/know-how was delivered to Zimmer which occurred in October 2024.

Revenue recognized under

the Amendment during the nine months ended June 30, 2025 was $ 3.0 million.

revenue related to the Company’s Strip/Grid Products, sEEG Products, OneRF Products and Electrode Cable Assembly Products.

revenue recognized during the three and nine months ended June 30, 2025 was $ 1,696,050 and $ 6,356,767 , respectively and was comprised

solely of OneRF Product revenue.

OneRF Products were subject to the Amendment upon its execution in October 2024.

revenue related to the Company’s Strip/Grid Products, sEEG Products, OneRF Products and Electrode Cable Assembly Products.

revenue recognized during the three and nine months ended June 30, 2024 was $ 825,776 and $ 3,180,719 , respectively, inclusive of OneRF

Product revenue that amounted to $ 163,549 during the three and nine months ended June 30, 2024.

8 – Stock-Based Compensation

the three and nine months ended June 30, 2025 and 2024, stock-based compensation expense related to stock-based awards was included in

selling, general and administrative and research and development costs as follows in the accompanying condensed statements of operations.

Three Months Ended

Six Months Ended

Nine Months Ended

Selling, general and administrative

2 unchanged sentences

Equity Incentive Plan

On January 10, 2025,

the Board of Directors of the Company adopted the NeuroOne Medical Technologies Corporation 2025 Equity Incentive Plan (the “2025

On February 14, 2025, at the 2025 annual meeting of stockholders, the stockholders of the Company approved the 2025 Plan.

January 10, 2025, the Board of Directors of the Company adopted the NeuroOne Medical Technologies Corporation 2025 Equity Incentive Plan

(the “2025 Plan”).

On February 14, 2025, at the 2025 annual meeting of stockholders, the stockholders of the Company approved

the 2025 Plan.

Medical Technologies Corporation

to Condensed Financial Statements

The 2025 Plan is the

successor to and continuation of the 2017 Plan and to the 2016 Plan (the “Prior Plans”).

As of the Effective Date, (i) no

additional awards may be granted under the Prior Plans;

(ii) any Returning Shares will become available for issuance pursuant to Awards

granted under the 2025 Plan;

and (iii) all outstanding awards granted under the Prior Plans will remain subject to the terms of the Prior

Plans (except to the extent such outstanding awards result in returning shares that become available for issuance pursuant to awards granted

under the 2025 Plan.

Initially, the maximum

number of shares of the Company’s Common Stock (the “Common Stock”), that may be issued under the 2025 Plan may not

exceed (1) 3,000,000 and (2) any shares subject to outstanding stock awards under the NeuroOne Medical Technologies 2017 Equity Incentive

Plan that are forfeited or otherwise returned to the share reserve.

Inducement Plan

In October 2021, the Company adopted the

NeuroOne Medical Technologies Corporation 2021 Inducement Plan (the “Inducement Plan”), pursuant to which the Company

reserved 420,350 shares of its common stock to be used exclusively for grants of awards to individuals who were not

previously employees or directors of the Company, as an inducement material to the individual’s entry into employment with the

Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules.

successor to and continuation of the Company’s 2017 Equity Incentive Plan (the “2017 Plan”) and to the Company’s

2016 Equity Incentive Plan (the “Prior Plans”).

As of the Effective Date, (i) no additional awards may be granted under the

(ii) any Returning Shares will become available for issuance pursuant to Awards granted under the 2025 Plan;

and (iii) all

outstanding awards granted under the Prior Plans will remain subject to the terms of the Prior Plans (except to the extent such outstanding

awards result in returning shares that become available for issuance pursuant to awards granted under the 2025 Plan.

the maximum number of shares of the Company’s Common Stock (the “Common Stock”), that may be issued under the 2025

Plan may not exceed (1) 3,000,000 and (2) any shares subject to outstanding stock awards under the NeuroOne Medical Technologies 2017

Equity Incentive Plan that are forfeited or otherwise returned to the share reserve.

October 2021, the Company adopted the NeuroOne Medical Technologies Corporation 2021 Inducement Plan (the “Inducement Plan”),

pursuant to which the Company reserved 420,350 shares of its common stock to be used exclusively for grants of awards to individuals

who were not previously employees or directors of the Company, as an inducement material to the individual’s entry into employment

with the Company within the meaning of Rule 5635(c)(4) of the Nasdaq Listing Rules.

The Inducement Plan was approved by the Company’s

Board of Directors without stockholder approval in accordance with such a rule.

On November 9, 2023, the Company’s Board of

Directors adopted the First Amendment to the Company’s Inducement Plan, increasing the aggregate number of shares of common

stock that may be issued pursuant to equity incentive awards under the Inducement Plan by 150,000 shares for a total

of 570,350 shares of common stock that may be issued pursuant to equity incentive awards under the Inducement Plan.

NeuroOne Medical Technologies

Notes to Condensed Financial Statements

On November 9, 2023, the Company’s Board of Directors

adopted the First Amendment to the Company’s Inducement Plan, increasing the aggregate number of shares of common stock that may

be issued pursuant to equity incentive awards under the Inducement Plan by 150,000 shares, and on May 20, 2025, the Board adopted

the Second Amendment to the Company’s Inducement Plan, increasing the aggregate number of shares of common stock that may be issued

pursuant to equity incentive awards under the Inducement Plan by an additional 575,000 shares.

Plan and Evergreen Provision

On January 1, 2025, 1,124,446 shares were

added to the 2017 Plan as a result of the evergreen provision within the 2017 Plan.

However, upon the adoption of the 2025 Plan, there

will be no further issuance of grants under the 2017 Plan and any forfeitures of grants issued under the 2017 Plan will be added to the

amount available for future issuance under the 2025 Plan.

Grants issued under the 2017 Plan will continue to be governed under the terms

of the 2017 Plan.

Stock Options

During the three months ended March 31, 2025 and

2024, the Company granted 51,075 and 65,000 stock options, respectively, to its board of directors and employees.

During the six months

ended March 31, 2025 and 2024, the Company granted 51,075 and 1,225,669 stock options, respectively, to its board of directors, officers,

employees and consultants.

January 1, 2025, 1,124,446 shares were added to the 2017 Plan as a result of the evergreen provision within the 2017 Plan.

upon the adoption of the 2025 Plan, there will be no further issuance of grants under the 2017 Plan and any forfeitures of grants issued

under the 2017 Plan will be added to the amount available for future issuance under the 2025 Plan.

Grants issued under the 2017 Plan

will continue to be governed under the terms of the 2017 Plan.

During the three months ended June 30, 2025 and

2024, the Company granted 3,285,496 and zero stock options, respectively, to its board of directors, officers, employees and consultants.

During the nine months ended June 30, 2025 and 2024, the Company granted 3,336,571 and 1,225,669 stock options, respectively, to its board

of directors, officers, employees and consultants.

Vesting generally occurs over a 12 to 48 month period based on a time of service condition.

The grant date

fair value of the grants issued during the three months ended March 31, 2025 and 2024 was $ 0.98 and $ 0.91 per share, respectively.

grant date fair value of the grants issued during the six months ended March 31, 2025 and 2024 was $ 0.98 and $ 1.08 per share, respectively.

The total expense for the three months ended March

31, 2025 and 2024 related to stock options was $ 128,378 and $ 214,188 , respectively.

The total expense for the six months ended March

31, 2025 and 2024 related to stock options was $ 331,332 and $ 401,619 , respectively.

The total number of stock options outstanding as of

March 31, 2025 and September 30, 2024 was 2,865,171 and 2,814,096 , respectively.

The weighted-average assumptions used in the Black-Scholes

option-pricing model are as follows for the stock options granted during the three and six months ended March 31, 2025 and 2024:

Three Months Ended Six Months Ended

March 31, March 31,

The grant date fair value of the grants issued during the three months ended June 30, 2025 was $ 0.50 per share.

The grant date fair value

of the grants issued during the nine months ended June 30, 2025 and 2024 was $ 0.50 and $ 1.08 per share, respectively.

total expense for the three months ended June 30, 2025 and 2024 related to stock options was $ 203,095 and $ 202,338 , respectively.

total expense for the nine months ended June 30, 2025 and 2024 related to stock options was $ 534,426 and $ 603,957 , respectively.

total number of stock options outstanding as of June 30, 2025 and September 30, 2024 was 6,131,448 and 2,814,096 , respectively.

Medical Technologies Corporation

to Condensed Financial Statements

weighted-average assumptions used in the Black-Scholes option-pricing model are as follows for the stock options granted during the three

and nine months ended June 30, 2025 and 2024:

Three Months Ended Nine Months Ended

June 30, June 30,

2025 2024 2025 2024

Expected stock price volatility 109.9 % —

% 110.0 % 111.9 %

Expected life of options (years) 6.0 —

1 unchanged sentence

Risk free interest rate 4.0 % —

During the three months ended March 31, 2025 and

2024, 109,535 and 48,295 stock options vested, respectively, and zero stock options were forfeited.

During the six months ended March

31, 2025 and 2024, 503,965 and 104,911 stock options vested, respectively, and zero and 55,000 stock options were forfeited during these

periods, respectively.

During the three and six months ended March 31, 2025 and 2024, no options were exercised.

Restricted Stock Units

During the three and six months ended March 31,

2025, the Company granted an aggregate of 83,334 restricted stock units (“RSUs”) to non-employee directors under the 2025

The weighted average grant date fair value of the RSUs granted during the three and six months ended March 31, 2025 was $ 1.20 per

The RSUs granted vest over a one-year period in equal monthly installments, subject to the recipient’s continued service on

During the three and six months ended March

31, 2024, the Company granted an aggregate of 1,006,725 RSUs to its employees and consultants under the 2017 Plan.

weighted average grant date fair value of the RSUs granted during the three and six months ended March 31, 2024 was $ 1.03 per

The RSUs granted vest over a four-year period in equal annual installments on the anniversary date of the grant, subject to the

recipient’s continued service on such dates.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

During the three months ended March 31, 2025 and

2024, 288,548 and 32,535 RSUs vested, respectively, and no RSUs were forfeited.

During the six months ended March 31, 2025 and 2024, 326,358

and 70,214 RSUs vested, respectively, and no RSUs were forfeited.

The total expense for the three months ended March 31, 2025 and 2024

related to these RSUs was $ 121,792 and $ 142,670 , respectively.

The total expense for the six months ended March 31, 2025 and 2024 related

% 4.0 % 4.6 %

the three months ended June 30, 2025 and 2024, 136,589 and 127,583 stock options vested, respectively, and 19,219 and 65,000 stock options

were forfeited, respectively.

During the nine months ended June 30, 2025 and 2024, 640,573 and 232,494 stock options vested, respectively,

and 19,219 and 120,000 stock options were forfeited during these periods, respectively.

During the three and nine months ended June 30,

2025 and 2024, no options were exercised.

the three and nine months ended June 30, 2025, the Company granted an aggregate of zero and 83,334 restricted stock units (“RSUs”)

to non-employee directors under the 2025 Plan.

The weighted average grant date fair value of the RSUs granted during the nine months

ended June 30, 2025 was $ 1.20 per RSU.

The RSUs granted vest over a one-year period in equal monthly installments, subject to the recipient’s

continued service on such dates.

During the nine months ended June 30, 2024, the

Company granted an aggregate of 1,006,725 RSUs to its officers, employees and consultants under the 2017 Plan, respectively.

average grant date fair value of the RSUs granted during the nine months ended June 30, 2024 was $ 1.03 per unit.

The RSUs granted

vest over a four-year period in equal annual installments on the anniversary date of the grant, subject to the recipient’s continued

service on such dates.

the three months ended June 30, 2025 and 2024, 35,771 and 162,309 RSUs vested, respectively, and 2,500 and zero RSUs were forfeited during

these periods, respectively.

During the nine months ended June 30, 2025 and 2024, 362,129 and 232,523 RSUs vested, respectively, and

2,500 and zero RSUs were forfeited these periods, respectively.

The total expense for the three months ended June 30, 2025 and 2024 related

to these RSUs was $ 113,559 and $ 136,271 , respectively.

As of March 31, 2025, 4,477,630 shares were available

in the aggregate for future issuance under the 2025 Plan and Inducement Plan.

Unrecognized stock-based compensation was $ 1,934,234 as

of March 31, 2025.

The unrecognized share-based expense is expected to be recognized over a weighted average period of 2.3 years.

NOTE 9 – Concentrations

For the three months and six months ended March

31, 2025, one customer accounted for 100 % and 94 % of the Company’s product revenue, respectively.

For the three and six months ended

March 31, 2024, one customer accounted for all of the Company’s product and license revenue.

Supplier concentration

One contract manufacturer produces all of the

Company’s Strip/Grid Products and sEEG Products and another supplier was responsible for the development of the Company’s

OneRF Ablation generator and manufactures it.

NOTE 10 – Income Taxes

The effective tax rate for the three and six months

ended March 31, 2025 and 2024 was zero percent.

As a result of the analysis of all available evidence as of March 31, 2025 and September

The total expense for the nine months ended June 30, 2025 and 2024 related to

these RSUs was $ 371,622 and $ 400,148 , respectively.

The total number of RSUs outstanding as of June 30, 2025 and September 30, 2024 was

848,468 and 1,129,762 , respectively.

of June 30, 2025, 1,709,604 shares were available in the aggregate for future issuance under the 2025 Plan and Inducement Plan.

stock-based compensation was $ 3,227,785 as of June 30, 2025.

The unrecognized share-based expense is expected to be recognized over a

weighted average period of 3.7 years.

9 – Concentrations

the three months and nine months ended June 30, 2025, one customer accounted for 100 % and 96 % of the Company’s product revenue,

respectively.

For the three months and nine months ended June 30, 2024, one customer accounted for 80 % and 95 % of the Company’s

product revenue, respectively.

concentration

contract manufacturer produces all of the Company’s Strip/Grid Products and sEEG Products and another supplier was responsible

for the development of the Company’s OneRF Ablation generator and manufactures it.

Medical Technologies Corporation

to Condensed Financial Statements

10 – Income Taxes

The effective tax rate for the three and nine

months ended June 30, 2025 and 2024 was zero percent.

As a result of the analysis of all available evidence as of June 30, 2025 and September

30, 2024, the Company recorded a full valuation allowance on its net deferred tax assets.

Consequently, the Company reported no income

tax benefit during the three and six months ended March 31, 2025 and 2024.

tax benefit during the three and nine months ended June 30, 2025 and 2024.

If the Company’s assumptions change and the

3 unchanged sentences

each period the Company could record an additional valuation allowance on any increases in the deferred tax assets.

NOTE 11 - Debt Financing

Debt Facility Financing

On August 2, 2024, the Company entered into a loan

and security agreement (the “Debt Facility Agreement”) with Growth Opportunity Funding, LLC, as the lender (the “Lender”),

which provided for a delayed draw term loan facility in an aggregate principal amount not to exceed $ 3.0 million (the “Debt Facility”).

The Company was permitted to borrow loans under the Debt Facility from time to time (collectively, the “Loans”), for general

corporate purposes and subject to certain specified conditions, until the earliest of:

(i) November 30, 2024, (ii) the occurrence of any

Monetization Event (as defined in the Debt Facility Agreement) or Change of Control (as defined in the Debt Facility Agreement), or (iii)

at the Lender’s option, upon the occurrence and during the continuance of an event of default under the Debt Facility Agreement.

On November 7, 2024, the Company terminated the Debt Facility Agreement, and no amounts were drawn under the Debt Facility Agreement.

The Company paid a termination fee of $ 125,000 to the Lender and incurred additional legal fees of $ 7,091 related to the termination.

The Company also incurred non-termination Debt Facility costs of $ 192,647 during the six months ended March 31, 2025.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

At closing of the Debt Facility, the Company issued

to the Lender a warrant exercisable for five years for 100,000 shares of common stock at an exercise price of $ 0.66 per share, subject

to adjustment (the “Closing Date Debt Facility Warrant”).

The Closing Date Debt Facility Warrant was accounted for and classified

as equity on the accompanying condensed balance sheets.

NOTE 12 – Stockholders’ Equity

August 2024 Private Placement

The One Big Beautiful

Bill Act (OBBBA) was enacted on July 4, 2025 and the Company continues to evaluate the impact on its financial position.

not currently expected to materially impact the Company’s effective tax rate or cash flows in the current fiscal year.

11 - Debt Financing

Facility Financing

August 2, 2024, the Company entered into a loan and security agreement (the “Debt Facility Agreement”) with Growth Opportunity

Funding, LLC, as the lender (the “Lender”), which provided for a delayed draw term loan facility in an aggregate principal

amount not to exceed $ 3.0 million (the “Debt Facility”).

The Company was permitted to borrow loans under the Debt Facility

from time to time (collectively, the “Loans”), for general corporate purposes and subject to certain specified conditions,

until the earliest of:

(i) November 30, 2024, (ii) the occurrence of any Monetization Event (as defined in the Debt Facility Agreement)

or Change of Control (as defined in the Debt Facility Agreement), or (iii) at the Lender’s option, upon the occurrence and during

the continuance of an event of default under the Debt Facility Agreement.

On November 7, 2024, the Company terminated the Debt Facility

Agreement, and no amounts were drawn under the Debt Facility Agreement.

The Company paid a termination fee of $ 125,000 to the Lender

and incurred additional legal fees of $ 7,091 related to the termination.

The Company also incurred non-termination Debt Facility costs

of $ 192,647 during the nine months ended June 30, 2025.

closing of the Debt Facility, the Company issued to the Lender a warrant exercisable for five years for 100,000 shares of common stock

at an exercise price of $ 0.66 per share, subject to adjustment (the “Closing Date Debt Facility Warrant”).

The Closing Date

Debt Facility Warrant was accounted for and classified as equity on the accompanying condensed balance sheets.

12 – Stockholders’ Equity

2025 Financing

4, 2025, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Ladenburg Thalmann & Co.

as underwriter (the “Underwriter”), relating to the issuance and sale of 16,000,000 shares of the Company’s common

stock at a price to the public of $ 0.50 per share (the “April 2025 Financing”).

In addition, under the terms of the Underwriting

Agreement, the Company granted the Underwriter an option, exercisable for 45 days, to purchase up to an additional 2,400,000 shares of

common stock on the same terms as the offering, which overallotment was exercised in full.

Issuance costs in connection with the April

2025 Financing amounted to $ 960,717 which included a 7 % commission to the Underwriter and legal and other expenses in the amount of $ 316,717 .

Net proceeds to the Company were $ 8,239,283 .

2024 Private Placement

On August 1, 2024, the Company entered into a Securities

7 unchanged sentences

The 2024 Private Placement closed on August 2, 2024.

Medical Technologies Corporation

to Condensed Financial Statements

The PIPE Warrants are exercisable beginning on

the date of issuance, have an exercise price of $ 1.19 per share, subject to adjustment, and will expire on the third anniversary of the

date of issuance.

One of the Purchasers in the 2024 Private Placement included Paul Buckman, a director on the Company’s Board of

The PIPE Warrants were accounted for and classified

as liabilities on the accompanying condensed balance sheets given certain price reset provisions not used for a fair valuation under a

fixed for fixed settlement scenario as required for equity balance sheet classification.

A Monte Carlo simulation model was

used to estimate the aggregate fair value of the PIPE Warrants.

Input assumptions used were as follows on March 31, 2025 and September

the date of issuance and had an initial exercise price of $ 1.19 per share, subject to adjustment.

In April 2025, the exercise price was

reset to $ 0.465 upon the close of the April 2025 Financing for all of the PIPE Warrants, except for the PIPE Warrants to purchase 20,834

shares of common stock issued to a director on the Company’s Board of Directors for which the exercise price was reset to $ 0.876

The PIPE Warrants will expire on the third anniversary of the date of issuance.

PIPE Warrants were accounted for and classified as liabilities on the accompanying condensed balance sheets given certain price reset

provisions not used for a fair valuation under a fixed for fixed settlement scenario as required for equity balance sheet classification.

Monte Carlo simulation model was used to estimate the aggregate fair value of the PIPE Warrants.

Input assumptions used were as follows

on June 30, 2025 and September 30, 2024:

risk-free interest rate 3.65 % and 3.53 %, respectively;

1 unchanged sentence

respectively;

expected life

of 2.34 years and 2.84 years, respectively;

expected life of 2.1 years and 2.84 years, respectively;

and expected dividend yield zero percent for both dates.

The underlying stock price used was

the market price as quoted on Nasdaq as of March 31, 2025 and September 30, 2024.

The Company recorded the fair value change of the PIPE

Warrants in the amount of $ 390,351 and $ 779,796 , respectively, to the fair value change in warrant liability line item on the accompanying

condensed statements of operations for the three and six months ended March 31, 2025.

At-The-Market Offering

On December 21, 2022, the Company entered into

a Capital on Demand TM Sales Agreement (the “Sales Agreement”) with JonesTrading Institutional Services LLC (“JonesTrading”)

that created an at-the-market offering program (“ATM”) under which the Company may offer and sell common stock having an aggregate

offering price of up to $ 14.5 million.

JonesTrading is entitled to a commission at a fixed commission rate of up to 3 % of the gross

On July 24, 2023, the Company decreased the amount of common stock that can be sold pursuant to the Sales Agreement, such that

The underlying

stock price used was the market price as quoted on Nasdaq as of June 30, 2025 and September 30, 2024.

The Company recorded the fair value

change of the PIPE Warrants in the amount of $ 319,625 and $ 1,099,421 , respectively, to the fair value change in warrant liability line

item on the accompanying condensed statements of operations for the three and nine months ended June 30, 2025.

At-The-Market

December 21, 2022, the Company entered into a Capital on Demand TM Sales Agreement (the “Sales Agreement”) with

JonesTrading Institutional Services LLC (“JonesTrading”) that created an at-the-market offering program (“ATM”)

under which the Company may offer and sell common stock having an aggregate offering price of up to $ 14.5 million.

is entitled to a commission at a fixed commission rate of up to 3 % of the gross proceeds.

On July 24, 2023, the Company decreased the

amount of common stock that can be sold pursuant to the Sales Agreement, such that the Company was offering up to an aggregate of $ 2.6

million of its common stock for sale under the Sales Agreement, including the shares of common stock previously sold.

Subsequently on

December 1, 2023, however, the Company increased the amount of common stock that can be sold pursuant to the Sales Agreement, such that

the Company was offering up to an aggregate of $ 4.8 million of its common stock for sale under the Sales Agreement, including the shares

of common stock previously sold.

Subsequently on December 1, 2023, however, the Company increased the amount of common stock that can

be sold pursuant to the Sales Agreement, such that the Company was offering up to an aggregate of $ 4.8 million of its common stock for

sale under the Sales Agreement, including the shares of common stock previously sold.

On January 5, 2024, the Company further increased

the amount of common stock that can be sold pursuant to the Sales Agreement, such that the Company was offering up to an aggregate of

$ 9.3 million of its common stock for sale under the Sales Agreement, including the shares of common stock previously sold.

On August 16,

2024, the Company increased the amount of common stock that can be sold pursuant to the Sales Agreement by $ 3.0 million.

On April 3, 2025,

the Company decreased the amount of common stock that can be sold pursuant to the Sales Agreement to zero .

See “ Note 13 –

Subsequent Events.”

During the three and six months ended March 31,

2025, 355,899 shares of common stock were issued under the ATM for an aggregate offering price of $ 414,037 .

Issuance costs incurred under

the ATM during the three and six months ended March 31, 2025 were $ 95,929 .

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

During the three and six months ended March 31,

2024, 1,461,353 and 2,329,596 shares of common stock were issued, respectively, under the ATM for an aggregate offering price of $ 2,094,196

and $ 3,350,467 , respectively.

Issuance costs incurred under the ATM during the three and six months ended March 31, 2024 were $ 148,382

and $ 186,080 , respectively.

The total aggregate offering price and common

stock issued since inception of the ATM though March 31, 2025 was $ 8,000,600 and 5,544,489 shares, respectively.

Warrant Activity and Summary

There were no warrant exercises or expirations

during the three and six months ended March 31, 2025.

The following table summarizes information about

warrants outstanding at March 31, 2025:

Warrant Activity and Summary

On January 5, 2024, the Company further increased the amount of common stock that can be sold pursuant

to the Sales Agreement, such that the Company was offering up to an aggregate of $ 9.3 million of its common stock for sale under the

Sales Agreement, including the shares of common stock previously sold.

On August 16, 2024, the Company increased the amount of common

stock that can be sold pursuant to the Sales Agreement by $ 3.0 million.

On April 3, 2025, the Company decreased the amount of common

stock that can be sold pursuant to the Sales Agreement to zero .

the nine months ended June 30, 2025, 355,899 shares of common stock were issued under the ATM for an aggregate offering price of $ 414,037 .

Issuance costs incurred under the ATM during the three and nine months ended June 30, 2025 were $ 9,325 and $ 105,254 , respectively.

the three and nine months ended June 30, 2024, 1,419,317 and 3,748,913 shares of common stock were issued, respectively, under the ATM

for an aggregate offering price of $ 1,683,439 and $ 5,033,906 , respectively.

Issuance costs incurred under the ATM during the three and

nine months ended June 30, 2024 were $ 50,519 and $ 236,599 , respectively.

total aggregate offering price and common stock issued since inception of the ATM though June 30, 2025 was $ 8,000,600 and 5,544,489 shares,

respectively.

Activity and Summary

were no warrant exercises or expirations during the three and nine months ended June 30, 2025.

Medical Technologies Corporation

to Condensed Financial Statements

following table summarizes information about warrants outstanding at June 30, 2025:

Activity and Summary

Warrants Exercise

3 unchanged sentences

Outstanding and exercisable at September 30, 2024 7,045,875 $ 0.66 - 5.61 $ 3.81 1.98

Outstanding and exercisable at March 31, 2025 7,045,875 $ 0.66 - 5.61 $ 3.78 1.48

The following table summarizes information about

warrants outstanding at March 31, 2024:

Issued — $ — $ — —

Exercised — $ — $ — —

Expired — $ — $ — —

Outstanding and exercisable at June 30, 2025 7,045,875 $ 0.465 - 5.61 $ 3.59 1.23

following table summarizes information about warrants outstanding at June 30, 2024:

Exercise Price Number Outstanding Weighted Average

6 unchanged sentences

$ 5.25 4,166,682 0.54 4,166,682

$ 5.61 220,855 3.00 220,855

Total 7,045,875 7,045,875

As provided in the PIPE Warrant agreement, the

exercise price of the PIPE Warrants was adjusted downward from $ 1.19 per share to $ 1.08 per share as a result of the ATM financing that

occurred in February 2025.

NeuroOne Medical Technologies Corporation

Notes to Condensed Financial Statements

NOTE 13 – Subsequent Events

ATM Reduction

On April 3, 2025, the Company decreased the amount

of common stock that can be sold pursuant to the Sales Agreement to zero .

At this time, no sales can be made under the program.

2025 Financing

4, 2025, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Ladenburg Thalmann & Co.

as underwriter (the “Underwriter”), relating to the issuance and sale of 16,000,000 shares of the Company’s common

stock at a price to the public of $ 0.50 per share (the “April 2025 Financing”).

In addition, under the terms of the Underwriting

Agreement, the Company granted the Underwriter an option, exercisable for 45 days, to purchase up to an additional 2,400,000 shares of

common stock on the same terms as the offering, which overallotment was exercised in full.

Issuance costs in connection with the April

2025 Financing amounted to approximately $ 1.0 million which included a 7 % commission to the Underwriter and legal and other expenses in

the amount of $ 0.3 million.

Net proceeds to the Company were approximately $ 8.2 million.

The following table sets forth

the Company’s total stockholders’ equity as reported as of March 31, 2025 and as adjusted on a pro forma basis to

reflect the recently completed April 2025 Financing (amounts in thousands):

Total stockholders’ equity as of March 31, 2025

Net proceeds from April 2025 Financing

Pro forma total stockholders’ equity as of March 31, 2025

exercise price of the PIPE Warrants was adjusted downward from $ 1.08 per share as of March 31, 2025 to $ 0.465 per share for most of the

PIPE Warrants as of June 30, 2025 attributed to the April 2025 Financing.

The exercise price of the PIPE Warrants issued to a director

of the Company’s Board of Directors, however, was reset to $ 0.876 per share given a higher floor price provision for that individual.

NeuroOne Medical Technologies Corporation

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

What changed 10-Q

Item 1. Financial Statements