What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-06-11 compared with 2025-12-11 · 31 added, 65 removed, 134 unchanged (42% of the section changed)

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD LOOKING STATEMENTS

84 unchanged sentences

issue and sell upon the exercise of stock options issued under the Plan.

As of September 8, 2025, the Company has reserved 1,645,751 shares

to issue and sell upon the exercise of stock options issued under the Plan.

The Plan provides for an automatic annual increase

9 unchanged sentences

a majority vote of our stockholders.

As of September 8, 2025, with the February 1, 2025 automatic increase of shares available for issuance

As of June 15, 2026, with the February 1, 2026 automatic increase of shares available for issuance

under the Plan, 336,102 shares remain available for issuance of options under the Plan.

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Results of Operations

Three Months Ended October 31, 2025 and 2024

For the three months ending October 31, 2025,

we generated revenue of $346,058 and our revenue costs were $277,553, resulting in a gross profit of $68,505.

Three Months Ended April 30, 2026 and 2025

For the three months ending April 30, 2026, we

generated revenue of $433,399 and our revenue costs were $236,598, resulting in a gross profit of $196,801.

For the three months ending

October 31, 2024, we generated revenue of $645,796 and our costs of revenue were $454,767, resulting in a gross profit of $191,029.

revenue for the three months ending October 31, 2025, was derived from sales from our Pocono Pharmaceuticals segment and $-0- from contract

April 30, 2025, we generated revenue of $667,432 and our costs of revenue were $415,451, resulting in a gross profit of $251,981.

revenue for the three months ending April 30, 2026, was derived from sales from our Pocono Pharmaceuticals segment and $-0- from contract

research and development services from our 4P Therapeutics segment.

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The increase in gross margin is due primarily to higher margins in our sales mix.

For the three months ending October 31, 2025, our selling, general

and administrative expenses were $3,491,728, primarily legal, accounting and compensation expenses compared to $737,102 for the three

months ending October 31, 2024.

For the three months ending April 30, 2026, our

selling, general and administrative expenses were $1,203,891, primarily legal, accounting and compensation expenses compared to $982,052

for the three months ending April 30, 2025.

The increase from 2025 is primarily attributable to increases in compensation-based expenses.

During the three months ending October 31, 2025, the Company incurred

research and development expenses of its Aversa Fentanyl product of $457,113, primarily of salaries and development costs from Kindeva

as compared to $880,768 for the three months ending October 31, 2024.

The decrease is primarily attributable to a reduction in labor costs.

We incurred interest expenses of $5,546 for the three months ending

October 31, 2025, as compared to $4,031 for the three months ending October 31, 2024.

Interest income for the three months ending October

31, 2025 was $13,517 as compared to $68,235 for the three months ending October 31, 2024.

The decrease is primarily due to a decrease

in cash used in the Company’s operations.

As a result of the foregoing, we sustained a net loss of $3,872,367

for the three months ending October 31, 2025, or ($0.32) per share (basic and diluted) , compared with a loss of $1,362,637, or $(0.12)

per share (basic and diluted) for the three months ending October 31, 2024.

Nine Months Ended October 31, 2025 and 2024

For the nine months ending October 31, 2025, we

generated revenue of $1,635,942 and our revenue costs were $1,158,575, resulting in a gross profit of $477,367.

For the nine months ending

October 31, 2024, we generated revenue of $1,497,158 and our costs of revenue were $1,039,785, resulting in a gross profit of $453,373.

Our revenue for the nine months ending October 31, 2025, was derived from sales from our Pocono Pharmaceuticals segment and $-0- from

contract research and development services from our 4P Therapeutics segment.

The revenue from the Pocono Pharmaceuticals segment increased

from the prior year as the Company ordered additional equipment to meet the new demand and implemented this equipment during the third

quarter of the prior year.

An increase in demand is expected in the balance of the current year.

There were no sales in our 4P Therapeutics

segment in the current year due to a shift in focus and the main contract wound down in the prior year.

The increase in gross margin is

due primarily to higher margins in our sales mix.

For the nine months ending October 31, 2025, our selling, general and

administrative expenses were $6,071,320, primarily legal, accounting and compensation expenses compared to $2,554,155 for the nine months

ending October 31, 2024.

The increase from 2024 is primarily attributable to increases in equity-based expenses.

During the nine months ending October 31, 2025, the Company incurred

research and development expenses of its Aversa Fentanyl product of $1,703,093, primarily of salaries and increases in development costs

from Kindeva as compared to $2,629,278 for the nine months ending October 31, 2024.

During the three months ending April 30, 2026,

the Company incurred research and development expenses of its Aversa Fentanyl product of $247,261, primarily of salaries and development

costs from Kindeva as compared to $683,426 for the three months ending April 30, 2025.

The decrease is primarily attributable to a reduction

in labor costs.

We incurred interest expenses of $17,201 for the nine months ending

October 31, 2025, as compared to $17,668 for the nine months ending October 31, 2024.

Interest income for the nine months ending October 31, 2025 was $52,674

as compared to $145,585 for the nine months ending October 31, 2024.

The decrease is primarily due to cash used in the Company development

We incurred interest expenses of $5,008 for the

three months ending April 30, 2026, as compared to $5,880 for the three months ending April 30, 2025.

Interest income for the three months ending April

30, 2026 was $17,403 as compared to $30,508 for the three months ending April 30, 2025.

The decrease is primarily due to a decrease in

cash used in the Company’s operations.

As a result of the foregoing, we sustained a net

loss of $7,261,573 for the nine months ending October 31, 2025, exclusive of the net loss available to common of stockholders of $29,075,739

or (2.54) per share (basic and diluted) after the preferred stock dividend, compared with a loss of $4,966,179, or $(0.48) per share (basic

and diluted) for the nine months ending October 31, 2024.

loss of $1,241,956 for the three months ending April 30, 2026, or ($0.10) per share (basic and diluted), compared with a loss of $1,388,869,

or $(0.12) per share (basic and diluted) for the three months ending April 30, 2025.

Liquidity and Capital Resources

As of October 31, 2025, we had $5,312,177 in cash and cash equivalents

and working capital of $5,042,540, as compared with cash and cash equivalents of $4,311,719 and working capital of $3,811,420 as of January

For the nine months ending October 31, 2025, we used cash of $4,402,800

in our operations.

The principal adjustments to our net loss of $7,261,573 were depreciation and amortization of $157,918, and the issuance

of employee stock for services in the amount of $2,639,883.

For the nine months ending October 31, 2025, we

used cash in investing activities of $5,324 primarily for the purchase of equipment.

For the nine months ending October 31, 2025, cash provided from financing

activities was $5,408,582 primarily from the exercise of warrants.

As of April 30, 2026 we had $4,006,184 in cash

and cash equivalents and working capital of $3,544,125, as compared with cash and cash equivalents of $4,574,857 and working capital of

$4,204,437 as of January 31, 2026.

For the three months ending April 30, 2026, we

used cash of $563,104 in our operations.

The principal adjustments to our net loss of $1,241,956 were depreciation and amortization of

$34,177, and the issuance of warrants for services in the amount of $552,458.

For the three months ending April 30, 2026,

no cash was provided from financing activities .

Off Balance Sheet Arrangements

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis