What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-18 compared with 2025-11-14 · 464 added, 742 removed, 24 unchanged (98% of the section changed)

Management’s Discussion and Analysis of Financial

Condition and Results of Operations.

The following discussion

and analysis of the financial condition and results of operations of OS Therapies Incorporated (“OS Therapies,” the “Company,”

“we,” “our” or “us”) should be read in conjunction with the consolidated financial statements and

notes thereto appearing in Part I, Item 1 of this report.

In the following discussions, most percentages and dollar amounts have been

rounded to aid presentation, and, accordingly, all amounts are approximations.

Cautionary Note Regarding Forward-Looking Statements

This report contains “forward-looking

statements” (within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and

Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), which may include information concerning

our beliefs, plans, objectives, goals, expectations, strategies, anticipations, assumptions, estimates, intentions, future events, future

revenues or performance, capital expenditures and other information that is not historical information.

Forward-looking statements involve

known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance

or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking

When used in this report, the words “seek,” “estimate,” “expect,” “anticipate,”

“project,” “plan,” “contemplate,” “plan,” “continue,” “intend,”

“believe” and variations of such words or similar expressions are intended to identify forward-looking statements.

All forward-looking

statements are based upon our current expectations and various assumptions.

We believe there is a reasonable basis for our expectations

and beliefs, but there can be no assurance that we will realize our expectations or that our beliefs will prove to be correct.

There are a number of risks

and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in this report.

Examples of risks and uncertainties that could cause actual results to differ materially from historical performance and any forward-looking

statements include, but are not limited to, the risks described under the section below titled “Risk Factors” and in our Annual

Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2025, as well as any subsequent

filings with the SEC.

There may be other factors

of which we are currently unaware or which we currently deem immaterial that may cause our actual results to differ materially from the

forward-looking statements.

All forward-looking statements attributable to us or persons acting on our behalf apply only as of the date

they are made and are expressly qualified in their entirety by the cautionary statements included in this report.

Except as may be required

by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances occurring

after the date they were made or to reflect the occurrence of unanticipated events, or otherwise.

We make available through

our Internet website, free of charge, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and

amendments to such reports and other filings made by us with the SEC, as soon as practicable after we electronically file such reports

and filings with the SEC.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

following discussion and analysis of the financial condition and results of operations of OS Therapies Incorporated (“OS Therapies,”

the “Company,” “we,” “our” or “us”) should be read in conjunction with the consolidated

financial statements and notes thereto appearing in Part I, Item 1 of this report.

In the following discussions, most percentages and

dollar amounts have been rounded to aid presentation, and, accordingly, all amounts are approximations.

Note Regarding Forward-Looking Statements

report contains “forward-looking statements” (within the meaning of Section 27A of the Securities Act of 1933, as amended

(the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)),

which may include information concerning our beliefs, plans, objectives, goals, expectations, strategies, anticipations, assumptions,

estimates, intentions, future events, future revenues or performance, capital expenditures and other information that is not historical

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may be beyond our control,

and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements

expressed or implied by such forward-looking statements.

When used in this report, the words “seek,” “estimate,”

“expect,” “anticipate,” “project,” “plan,” “contemplate,” “plan,”

“continue,” “intend,” “believe” and variations of such words or similar expressions are intended

to identify forward-looking statements.

All forward-looking statements are based upon our current expectations and various assumptions.

We believe there is a reasonable basis for our expectations and beliefs, but there can be no assurance that we will realize our expectations

or that our beliefs will prove to be correct.

are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements

contained in this report.

Examples of risks and uncertainties that could cause actual results to differ materially from historical performance

and any forward-looking statements include, but are not limited to, the risks described under the section below titled “Risk Factors”

and in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March

31, 2026, as well as any subsequent filings with the SEC.

may be other factors of which we are currently unaware or which we currently deem immaterial that may cause our actual results to differ

materially from the forward-looking statements.

All forward-looking statements attributable to us or persons acting on our behalf apply

only as of the date they are made and are expressly qualified in their entirety by the cautionary statements included in this report.

Except as may be required by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect events

or circumstances occurring after the date they were made or to reflect the occurrence of unanticipated events, or otherwise.

make available through our Internet website, free of charge, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current

Reports on Form 8-K, and amendments to such reports and other filings made by us with the SEC, as soon as practicable after we electronically

file such reports and filings with the SEC.

Our website address is www.ostherapies.com.

The information contained on our website is not incorporated by

reference into this report.

We are a clinical stage biopharmaceutical

company focused on the identification, development and commercialization of treatments for Osteosarcoma (OS) and other solid tumors.

mission is to address the significant need for new treatments in cancers of the bone in children and young adults.

Osteosarcoma is an

extremely challenging and often aggressive cancer that has particular treatment challenges due to its location, changing genotypes and

high metastases rates.

We are currently seeking to answer the call for new treatments that will prevent metastasis and the recurrence

of metastases with our lead core product candidate OST-HER2 (also known as OST31-164), a cancer immunotherapy product candidate that produces

a cellular immune response against the cancer antigen HER2.

In the first quarter of 2025,

we announced that our Phase IIb clinical trial achieved its primary endpoint with statistical significance.

In October 2025, we announced

final two-year overall survival data from the Phase IIb trial, in which 75% (27 of 36 evaluable patients) of OST-HER2-treated patients

achieved two-year overall survival from the most recent pulmonary resection, compared with 40% in historical control patients (p <

The information contained on our website is not

incorporated by reference into this report.

are a clinical stage biopharmaceutical company focused on the identification, development and commercialization of treatments for Osteosarcoma

(OS) and other solid tumors.

Our mission is to address the significant need for new treatments in cancers of the bone in children and

young adults.

Osteosarcoma is an extremely challenging and often aggressive cancer that has particular treatment challenges due to its

location, changing genotypes and high metastases rates.

We are currently seeking to answer the call for new treatments that will prevent

metastasis and the recurrence of metastases with our lead core product candidate OST-HER2 (also known as OST31-164), a cancer immunotherapy

product candidate that produces a cellular immune response against the cancer antigen HER2.

2021, we opened a clinical study to produce data for the U.S.

Food and Drug Administration (FDA) to evaluate the safety and efficacy

of OST-HER2 in patients after resection of recurrent Osteosarcoma, which achieved full enrollment of 41 patients in October 2023.

the first quarter of 2025, we announced that our Phase IIb clinical trial achieved its primary endpoint with statistical significance.

In October 2025, we announced final two-year overall survival data from the Phase IIb trial, in which 75% (27 of 36 evaluable patients)

of OST-HER2-treated patients achieved two-year overall survival from the most recent pulmonary resection, compared with 40% in historical

control patients (p < 0.0001).

OST-HER2 was observed to be well-tolerated in the study.

We believe the results, combined with the product’s safety profile

and unmet clinical need, support the potential for regulatory approval from the FDA.

We have conducted regulatory

meetings with the FDA, the United Kingdom Medicines and Healthcare products Regulatory Agency (MHRA), and the European Medicines Agency

Representatives from these agencies indicated that overall survival, when supported by biomarker data, may be considered an appropriate

clinical endpoint to support conditional marketing authorization.

We are currently analyzing patient samples from our Phase IIb trial

to assess potential correlations between clinical outcomes and immune system biomarker activation, with results expected in November 2025.

We expect to submit a conditional Marketing Authorization Application (MAA) to the MHRA in December 2025, a Biologics License Application

under the FDA’s Accelerated Approval Program in January 2026, and an MAA to the EMA in the first quarter of 2026.

If approved, we

would become eligible to receive a Priority Review Voucher from the FDA.

Upon success in gaining regulatory

approval from the FDA with OST-HER2 in Osteosarcoma, we intend to evaluate OST-HER2’s potential use, both alone and in combination

with HER2 targeting antibodies such as Herceptin®, in other solid tumors including breast, esophageal and lung cancers.

potential uses in both the prevention of metastases in solid tumors, and therapeutically against HER2-expressing solid tumors treated

with HER targeting antibodies.

We also own rights to OST-Tunable

Drug Conjugate (OST-tADC) platform, a next generation antibody-drug conjugate (ADC) silicone dioxide linker technology.

is a term used in drug development that refers to the properties that can be influenced by chemical modifications, and “antibody-drug

conjugate” or ADC is a term used to describe a drug made up of a monoclonal antibody attached to a cytotoxic payload, or a highly

active and toxic pharmaceutical molecule, through chemical linkers.

The ADC links an antibody that can home in on a targeted tumor to

deploy the cytotoxic payload or toxic agent against the tumor.

Furthering our founding mission, we intend to investigate clinical indications

for OST-tADC in Osteosarcoma and other solid tumors.

Recent Developments

PIPE Financing

On December 24, 2024, we

entered into a Securities Purchase Agreement (the “PIPE Purchase Agreement”) with certain institutional and accredited investors

(collectively, the “Purchasers”), substantially all of whom were existing stockholders of our company, pursuant to which we

agreed to issue and sell to the Purchasers immediately separable units (the “Units”), with each Unit being comprised of (i)

one share of Series A senior convertible preferred stock (“Series A Preferred Stock”) and (ii) a warrant to purchase one share

of common stock (each, a “Series A Warrant” and such shares, the “Warrant Shares”), at a price per Unit of $4.00,

for aggregate gross proceeds of not less than $6 million and not more than $10 million (the “PIPE Financing”).

At two closings

occurring on December 31, 2024 and January 14, 2025, we issued to the PIPE investors an aggregate of (i) 1,775,750 shares of Series A

Preferred Stock and (ii) Series A Warrants initially exercisable into 1,775,750 shares of common stock.

The gross proceeds from the PIPE

Financing, before deducting transaction fees and other estimated PIPE Financing expenses, were approximately $7,103,000.

Brookline Capital Markets,

a division of Arcadia Securities, LLC (“Brookline”), acted as exclusive placement agent for the issuance and sale of the securities

in the PIPE Financing.

We agreed to pay Brookline an aggregate cash fee (the “Cash Fee”) equal to (i) 7% of the gross proceeds

received by us from the sale of the securities in the PIPE Financing to Purchasers other than certain Purchasers identified on a schedule

thereto (“Reduced Fee Purchasers”) plus (ii) 3% of the gross proceeds received by us from the sale of the securities in the

PIPE Financing to Reduced Fee Purchasers, plus expenses;

provided that Ceros Financial Services, Inc., Brookline’s selected dealer

for the PIPE Financing (“Ceros”), is entitled to up to 33.3% of the Cash Fee.

In addition, we agreed to

pay Brookline or its designee a fee in the form of warrants to purchase shares of common stock (the “Agent Warrants”).

Agent Warrants are initially exercisable into a number of shares of common stock equal to (i) 7% of the number of shares of common stock

initially issuable pursuant to the shares of Series A Preferred Stock issued to Purchasers other than Reduced Fee Purchasers in the PIPE

Financing plus (ii) 3% of the number of shares of common stock initially issuable pursuant to the shares of Series A Preferred Stock issued

to the Reduced Fee Purchasers in the PIPE Financing;

provided that, Ceros is entitled to up to 33.3% of the Agent Warrants.

of the Agent Warrants are substantially similar to the terms of the Series A Warrants.

At two closings occurring on December 31, 2024

and January 14, 2025, (i) Brookline received an aggregate cash fee of $159,685 and the right to receive Agent Warrants initially exercisable

for an aggregate of 39,918 shares of common stock, and (ii) Ceros received an aggregate cash fee of $79,723 and the right to receive Agent

Warrants initially exercisable for an aggregate of 19,930 shares of common stock.

The PIPE Purchase Agreement

required us to seek stockholder approval for any transactions contemplated by the PIPE Purchase Agreement and the related documents for

which the rules of the NYSE American require stockholder approval (“Stockholder Approval”) and to hold a special meeting of

stockholders for the purpose of obtaining Stockholder Approval not later than April 9, 2025.

On April 9, 2025, we convened

a Special Meeting of Stockholders (the “Special Meeting”) for the Stockholder Approval, in accordance with NYSE American LLC

Company Guide Section 713(a), of the issuance of shares of our common stock upon (i) the conversion of 1,775,750 shares of Series A Preferred

Stock, (ii) the exercise of the Series A Warrants, and (iii) the exercise of the Agent Warrants in connection with our PIPE Financing,

in each case without regard to any limits on conversion or exercise therein and in amounts collectively equal to or exceeding 20% of our

common stock outstanding as of December 24, 2024 (including upon the operation of applicable price reset and anti-dilution provisions

and/or the reduction of conversion prices and exercise prices) (the “Issuance Proposal”).

The Issuance Proposal was approved

by the affirmative vote of a majority of the votes cast by our stockholders at the Special Meeting.

Our Acquisition of HER2 and Lm-Related Assets

On April 9, 2025, pursuant

to the terms of an Asset Purchase Agreement, dated as of January 28, 2025 (the “HER2 Purchase Agreement”), between us and

Ayala Pharmaceuticals, Inc., a Delaware corporation formerly known as Advaxis, Inc.

(“Ayala”), we completed the acquisition

of the Lm -based immune-oncology programs and related intellectual property assets (the “HER2 Assets”) from Ayala.

HER2 Assets include two investigational new drug (IND) filings with the FDA:

(i) ADXS-503 for non-small cell lung cancer;

and (ii) ADXS-504

for prostate cancer.

In consideration for the

purchase of the HER2 Assets, we agreed to assume certain specified liabilities and to pay an aggregate purchase price of $8,000,000, which

was paid as follows:

(i) $400,000 to Ayala ($150,000 of which was transferred upon signing of the HER2 Purchase Agreement and the remainder

on the closing date);

(ii) $100,000 to a third party on behalf of Ayala on the closing date;

and (iii) $7,500,000 worth of shares of our

common stock, or 4,774,637 shares based on the volume-weighted average price of the Company’s common stock over the 30 trading days

immediately preceding the closing date (the “Ayala Consideration Shares”).

Because the issuance of the

Ayala Consideration Shares would have required us to issue more than 19.99% of our outstanding common stock immediately prior to such

issuance (the “NYSE Ownership Limitation”), we issued to Ayala (i) 2,164,215 shares of common stock, and (ii) a warrant to

purchase 2,166,381 shares of common stock (the “Ayala Warrant” and the shares of common stock issuable thereunder, the “Ayala

Warrant Shares”).

On October 21, 2025, we obtained stockholder approval in accordance with NYSE American LLC Company Guide Section

713 and subsequently issued to Ayala the remaining 444,041 shares of common stock (the “Ayala Additional Consideration Shares”).

Ayala entered into a lock-up

agreement, pursuant to which, and subject to the terms and conditions set forth therein, Ayala has agreed not to trade or transfer, subject

to certain customary exceptions, any of the Ayala Consideration Shares (including the Ayala Warrant Shares) for a period of 180 days following

the closing of the transaction.

Warrant Exercise Inducement and Exchange

On July 11, 2025, we completed

a final closing of a warrant exercise inducement and exchange offer (the “First Offering”).

On September 2, 2025, we closed

on a second warrant exercise inducement and exchange offer (the “Second Offering” and, together with the First Offering, the

“Offerings”).

The First Offering and Second Offering were made to holders (the “Holders”) of certain of our existing

warrants to purchase shares of our common stock, having a then current exercise price of $1.12 per share, originally issued to the Holders

pursuant to the PIPE Purchase Agreement (the “Existing Warrants”), during the period beginning on June 20, 2025 and ending

on July 10, 2025, with respect to the First Offering (the “First Inducement Period”), and during the period beginning on August

29, 2025 and ending on September 1, 2025, with respect to the Second Offering (the “Second Inducement Period” and, together

with the First Inducement Period, the “Inducement Periods”).

During the Inducement Periods,

we entered into inducement offer letter agreements (the “Inducement Letters”) with the Holders of Existing Warrants, pursuant

to which the Holders agreed to exercise for cash their Existing Warrants to purchase an aggregate of 4,566,391 shares of our common stock

in consideration of our agreement to issue new warrants (the “New Warrants”) to purchase up to an aggregate of 4,566,391 shares

of our common stock (the “New Warrant Shares”) at an exercise price of $3.00 per share, subject to adjustment as provided

The New Warrants are immediately exercisable from the date of issuance and have a term of exercise of five years from such date.

Pursuant to the terms of

the Inducement Letters, if the exercise of any Existing Warrant by a Holder would have resulted in such Holder exceeding the beneficial

ownership limitation contained in the Existing Warrants, the Holder agreed to pre-fund the exercise of its Existing Warrants for cash

at $1.119 per share.

Upon such pre-funding, the exercise price of the Holder’s Existing Warrants was reduced to $0.001 per share

(the “Remaining Exercise Price”), and such Existing Warrants became exercisable for our common stock solely at the Remaining

Exercise Price.

A Holder pre-funded the exercise of 937,500 of its Existing Warrants and agreed to receive 937,500 prepaid shares of common

stock that will be issued in the future.

We engaged an SEC registered

broker dealer and FINRA member (the “Solicitation Agent”) to act as our exclusive warrant solicitation agent in connection

with the Offerings and agreed to pay the Solicitation Agent a cash fee equal to (i) 5.0% of the total gross cash proceeds received from

the exercise by the Holders of their Existing Warrants during the First Inducement Period and (ii) 1.5% of the total gross cash proceeds

received from the exercise by the Holders of their Existing Warrants during the Second Inducement Period.

We also agreed to pay the Solicitation

Agent up to $15,000 for its legal and other expenses.

The gross proceeds to us

from the Offerings, before deducting transaction fees and other estimated Offering expenses, were approximately $6,398,358.

the net proceeds from the Offerings to support U.S.

and international regulatory and pre-commercial efforts aimed at securing marketing

authorizations for OST-HER2 in the prevention or delay of recurrent, fully resected, pulmonary metastatic osteosarcoma, advance strategic

alternatives for our OS Animal Health subsidiary, close out and report on our OST-504 (previously ADXS-504) prostate cancer study, initiate

AI-driven next-generation tADC product candidate modeling and for general corporate purposes.

We also agreed to file a

registration statement on Form S-3 (or other appropriate form, including on Form S-1, if we are not then eligible to register securities

on Form S-3) (the “Resale Registration Statement”) providing for the resale of the shares of common stock issued or issuable

upon exercise of the New Warrants, within 30 calendar days of July 11, 2025, with respect to the First Offering, and September 2, 2025,

with respect to the Second Offering, and to use commercially reasonable efforts to have such Resale Registration Statement declared effective

by the SEC within 60 calendar days (or within 90 calendar days in case of “full review” of the Resale Registration Statement

by the SEC) following the initial filing of such Resale Registration Statement and to keep the Resale Registration Statement effective

at all times until the earlier of (i) the time no holder of the New Warrants owns any New Warrants or New Warrant Shares and (ii) the

Delegend Date (as defined in the Inducement Letters).

ATM Equity Offering Program

On August 8, 2025, we entered

into an at market issuance sales agreement (the “Sales Agreement”) with B.

Riley Securities, Inc.

and JonesTrading Institutional

Services LLC (each, a “Sales Agent” and, together, the “Sales Agents”) relating to shares of our common stock.

Pursuant to the Sales Agreement, we may offer and sell shares of our common stock from time to time having an aggregate offering price

of up to $18,000,000 through or to the Sales Agents.

We will pay each of the Sales Agents a total commission for its services in acting

as agent in the sale of common stock up to 3.0% of the gross sales price per share of all shares sold through it as agent under the Sales

The amount of proceeds we will receive will depend upon the actual number of shares of our common stock sold and the market

price at which such shares are sold.

Because there is no minimum offering amount required as a condition to close, the actual total public

offering amount, commissions and proceeds to us, are not determinable at this time.

Sales of our common stock under the Sales Agreement

are being made pursuant to a prospectus supplement filed with the SEC on August 25, 2025.

As of the date of this filing, we have sold

an aggregate of 189,600 shares of our common stock for aggregate gross proceeds of $384,888 pursuant to the Sales Agreement.

Critical Accounting Policies and Estimates

Our consolidated financial

statements are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”).

preparation of our consolidated financial statements and related disclosures requires us to make estimates and judgments that affect the

reported amounts of assets, liabilities, costs and expenses, and the disclosure of contingent assets and liabilities in our consolidated

financial statements.

We base our estimates on historical experience, known trends and events and various other factors that we believe

are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and

liabilities that are not readily apparent from other sources.

We evaluate our estimates and assumptions on an ongoing basis.

results may differ from these estimates under different assumptions or conditions.

Critical accounting policies

are those that, in management’s view, are most important to the portrayal of a company’s financial condition and results of

operations and most demanding on their calls on judgment, often as a result of the need to make estimates about the effect of matters

that are inherently uncertain and may change in subsequent periods.

While our significant accounting policies are described in more detail

in Note 2 to our consolidated financial statements appearing elsewhere in this annual report, we believe that the following accounting

policies are those most critical to the judgments and estimates used in the preparation of our consolidated financial statements.

Warrant Liability

We do not use derivative

instruments to hedge exposures to cash flow, market, or foreign currency risks.

We evaluate all of our financial instruments, including

issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives,

pursuant to ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”).

The classification of derivative

instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting

The Series A Warrants issued

in connection with the Purchase Agreement are recognized as a derivative liability in accordance with ASC 815.

We recognize the warrant

instruments as a liability at fair value and adjust the instruments to fair value at each reporting period.

The liability is subject to

re-measurement at each balance sheet date until exercised or reclassified, and any change in fair value is recognized in our consolidated

statements of operations.

The fair value of the Series A Warrants was measured using a Binomial simulation model.

The determination of

the fair value of the warrant liability may be subject to change as more current information becomes available, and accordingly, the actual

results could differ significantly.

The derivative warrant liability is classified as non-current liabilities as their liquidation is

not reasonably expected to require the use of current assets or require the creation of current liabilities.

Components of Our Results of Operations

did not recognize revenues for the nine months ended September 30, 2025 and 2024.

In January 2026, we announced positive immune

biomarker data from the Phase IIb trial indicating that activation of immune blood biomarkers in the interferon gamma pathway correlated

with, and was predictive of, overall survival, distinguishing long-term survivors (≥ two years) from short-term survivors (< one

These biomarker findings are based on exploratory analyses and have not been validated as surrogate endpoints for clinical benefit.

have engaged in ongoing regulatory interactions with the FDA, the United Kingdom Medicines and Healthcare products Regulatory Agency

(MHRA), and the European Medicines Agency (EMA) regarding the clinical and biomarker data for OST-HER2 in recurrent, fully resected pulmonary

metastatic Osteosarcoma.

We anticipate submitting the clinical Biologics License Application (BLA) module following an expected Type

B meeting with the FDA in the second quarter of 2026 and completing conditional Marketing Authorization Application (MAA) submissions

to both the MHRA and the EMA in the second quarter of 2026.

We also anticipate releasing additional biomarker data in the second quarter

of 2026 to further characterize immune pathway activation and its relationship to clinical outcomes.

We expect to initiate confirmatory

clinical studies in the third quarter of 2026 in support of conditional approval pathways.

If OST-HER2 receives approval under the FDA’s

Accelerated Approval Program prior to September 30, 2029, we would become eligible to receive a Priority Review Voucher under the Rare

Pediatric Disease Designation Program.

success in gaining regulatory approval from the FDA with OST-HER2 in Osteosarcoma, we intend to evaluate OST-HER2’s potential use,

both alone and in combination with HER2 targeting antibodies such as Herceptin®, in other solid tumors including breast, esophageal

and lung cancers.

OST-HER2 has potential uses in both the prevention of metastases in solid tumors, and therapeutically against HER2-expressing

solid tumors treated with HER targeting antibodies.

also own rights to an OST-Tunable Drug Conjugate (OST-tADC) platform, a next generation antibody-drug conjugate (ADC) silicone dioxide

linker technology.

“Tunable” is a term used in drug development that refers to the properties that can be influenced by chemical

modifications, and “antibody-drug conjugate” or ADC is a term used to describe a drug made up of a monoclonal antibody attached

to a cytotoxic payload, or a highly active and toxic pharmaceutical molecule, through chemical linkers.

The ADC links an antibody that

can home in on a targeted tumor to deploy the cytotoxic payload or toxic agent against the tumor.

Furthering our founding mission, we

intend to investigate clinical indications for OST-tADC in Osteosarcoma and other solid tumors.

Warrant Exercise Inducement and Exchange Offer

January 14, 2026, we closed on a warrant exercise inducement and exchange offer (the “2026 Inducement Offering”).

Inducement Offering was made to less than 10 accredited investors that held certain of our existing warrants to purchase up to an aggregate

of 5,382,148 shares of our common stock having a then current exercise price of $3.00 or $2.10 per share during the period beginning

January 10, 2026 and ending at 11:59 p.m., Eastern time, on March 2, 2026 (the “2026 Inducement Period”).

the 2026 Inducement Period, we entered into inducement offer letter agreements with such holders, pursuant to which such holders exercised

for cash their existing warrants to purchase an aggregate of 2,499,558 shares of our common stock at a reduced exercise price of $1.40

per share and in exchange we issued to such holders new warrants (the “2026 Warrants”) to purchase up to an aggregate of

2,499,558 shares of our common stock (the “2026 Warrant Shares”) at an exercise price of $1.40 per share, subject to adjustment

as provided therein.

The 2026 Warrants are exercisable for a period of five years from the date of issuance.

engaged Ceros Financial Services, Inc.

(“Ceros”) to act as our exclusive warrant solicitation agent in connection with the

2026 Inducement Offering and paid Ceros a cash fee equal to 8.0% of the total gross cash proceeds received from the exercise by the holders

of their respective warrants during the 2026 Inducement Period and in connection with the 2026 Inducement Offering.

We also paid Ceros

$25,000 for its legal and other expenses.

gross proceeds to us from the 2026 Inducement Offering, before deducting transaction fees and other 2026 Inducement Offering expenses,

were approximately $3.5 million.

We are using the net proceeds from the 2026 Inducement Offering to support U.S.

and international regulatory

and pre-commercial efforts aimed at securing marketing authorizations for OST-HER2 in the prevention or delay of recurrent, fully resected,

lung metastatic Osteosarcoma, provide funding for our wholly owned subsidiary OS Animal Health’s proposed spinoff transaction preparations,

and for general corporate purposes.

Negotiated Warrant Exercise Inducement and Exchange Agreements

January 10, 2026 through February 2026, we entered into privately negotiated inducement offer letters, pursuant to which certain holders

of our existing warrants having a then current exercise price of $3.00 or $2.10 per share exercised for cash their existing warrants

to purchase an aggregate of 123,216 shares of our common stock at a reduced exercise price of $1.40 per share and in exchange we issued

2026 Warrants to purchase up to an aggregate of 123,216 shares of our common stock at an exercise price of $1.40 per share, subject to

adjustment as provided therein (such transactions, the “Private Inducement Transactions”).

The 2026 Warrants are exercisable

for a period of five years from the date of issuance.

We received gross proceeds of approximately $172,502 from the Private Inducement

Transactions.

Bridge Financing

March 4, 2026, pursuant to a securities purchase agreement (the “Bridge SPA”), we issued to certain accredited investors

in a private placement transaction (i) 10.0% original issue discount unsecured convertible promissory notes in an aggregate principal

amount of $2,200,000 (the “Bridge Notes”) and (ii) warrants to purchase up to an aggregate of 1,666,667 shares of our common

stock (the “Bridge Warrants” and such private placement transaction, the “Bridge Financing”), for aggregate gross

proceeds of $2,000,000, before deducting placement agent fees and other Bridge Financing expenses.

The Bridge Notes were scheduled to

mature on March 4, 2027 and accrued interest at a rate of 4.0% per annum.

The Bridge Warrants were immediately exercisable upon issuance,

expire five years from the date of issuance and have an exercise price of $1.40 per share, subject to adjustment as provided therein.

Bridge Notes were sold at a 10% original issue discount, such that for each $100,000 invested by a purchaser, such purchaser received

a Bridge Note in the principal amount of $110,000.

The Bridge Notes were convertible into shares of our common stock or other of our

securities under certain circumstances.

Upon the consummation of a “Qualified Offering,” defined as a registered public offering

or registered direct offering resulting in at least $2.5 million in gross proceeds from new money investments, the outstanding principal,

together with all accrued and unpaid interest, were to automatically convert into the securities sold in such offering at the offering

Additionally, prior to any such Qualified Offering or repayment of the Bridge Notes, holders could elect to convert the Bridge

Notes, in whole or in part, into shares of our common stock at a conversion price equal to 90% of the average daily volume-weighted average

price of our common stock during the 10 trading days immediately preceding the holder’s conversion notice, subject to adjustment.

consummation of the 2026 Registered Direct Offering (as defined below), the Bridge Notes, together with all accrued and unpaid interest

thereon, automatically converted into an aggregate of 1,576,311 shares of our common stock and warrants to purchase up to 1,576,311 shares

of our common stock.

The warrants were issued on the same terms as the common warrants issued in the 2026 Registered Direct Offering.

are using the net proceeds of the Bridge Financing to fund clinical development activities, including ongoing and planned clinical trials,

and advance our research and development programs, as well as for working capital and general corporate purposes.

engaged Ceros to act as the exclusive placement agent for the Bridge Financing.

In connection with the Bridge Financing, we paid to Ceros

(a) a cash fee equal to 7.0% of the aggregate gross cash proceeds received by us in connection with the Bridge Financing and (b) a one-time

expense reimbursement of $25,000 for its legal and other expenses incurred in connection with the Bridge Financing.

Registered Direct Offering

April 2, 2026, we completed a registered direct offering, pursuant to which we offered and sold to accredited investors an aggregate

of 2,505,073 shares of our common stock and, in lieu thereof, pre-funded warrants to purchase up to 1,250,893 shares of our common stock,

and accompanying common warrants to purchase up to 3,755,966 shares of our common stock (the “2026 Registered Direct Offering”).

The combined purchase price for each share and common warrant in the 2026 Registered Direct Offering was $1.40, and the purchase price

for each pre-funded warrant and common warrant in the 2026 Registered Direct Offering was $1.399, which was equal to the per share and

common warrant purchase price, minus $0.001.

We received net proceeds from the 2026 Registered Direct Offering of approximately

$4.7 million.

We are using the net proceeds to fund clinical development activities, including ongoing and planned clinical trials, advance

our research and development programs, as well as for working capital and other general corporate purposes.

connection with the 2026 Registered Direct Offering, Ceros acted as our exclusive placement agent.

We paid Ceros a cash fee equal to

7.0% of the gross proceeds raised in the 2026 Registered Direct Offering.

We also reimbursed Ceros up to $70,000 for its reasonable and

documented out-of-pocket accountable expenses and up to $20,000 for its non-accountable expenses.

We also issued to Ceros’s designees

warrants to purchase up to an aggregate of 187,798 shares of our common stock.

The placement agent warrants have an exercise price of

$1.54 per share, are exercisable beginning September 2, 2026 and expire five years from April 2, 2026.

Accounting Policies and Estimates

consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States

The preparation of our consolidated financial statements and related disclosures requires us to make estimates

and judgments that affect the reported amounts of assets, liabilities, costs and expenses, and the disclosure of contingent assets and

liabilities in our consolidated financial statements.

We base our estimates on historical experience, known trends and events and various

other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about

the carrying values of assets and liabilities that are not readily apparent from other sources.

We evaluate our estimates and assumptions

on an ongoing basis.

Our actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies are those that, in management’s

view, are most important to the portrayal of a company’s financial condition and results of operations and most demanding on their

calls on judgment, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change

in subsequent periods.

Our significant accounting policies are described in more detail in Note 2 to our consolidated financial statements

appearing elsewhere in this annual report.

There were no critical accounting policies as of March 31, 2026.

of Our Results of Operations

We did not recognize revenues for the three months ended March 31, 2026 and 2025.

Our operating expenses are comprised primarily of research and development expenses (including licensing costs) and

general and administrative expenses.

and Development Expenses.

Research and development expenses consist primarily of costs incurred for our research activities,

including our drug discovery efforts, and the development of our product candidates, which include:

● personnel-related

costs, including salaries, benefits and stock-based compensation expense, for employees engaged

in research and development functions;

expenses incurred in connection

with our research programs, including under agreements with third parties, such as consultants and contractors and CROs;

costs incurred in obtaining

technology licenses and asset purchases are charged to licensing costs if the technology licensed has not reached technological feasibility

which includes manufacturing, clinical, intellectual property and/or regulatory success which has no alternative future use.

licenses purchased by us require substantial completion of research and development and regulatory and marketing approval efforts

in order to reach technological feasibility;

the cost of developing

and scaling our manufacturing process and manufacturing drug substance and drug product for use in our research and preclinical and

clinical studies, including under agreements with third parties, such as consultants and contractors and contract development and

manufacturing organizations (CDMOs);

the cost of laboratory

supplies and research materials.

track our direct external research and development expenses on a program-by-program basis.

These consist of costs that include fees,

reimbursed materials, and other costs paid to consultants, contractors, CDMOs, and CROs in connection with our preclinical, clinical

and manufacturing activities.

We do not allocate employee costs, costs associated with our discovery efforts, and facilities expenses,

including depreciation or other indirect costs, to specific product development programs because these costs are deployed across multiple

programs and, as such, are not separately classified.

expect that our research and development expenses will increase substantially as we advance OST-HER2 and OST-tADC into clinical development

and expand our discovery, research and preclinical activities.

and Administrative Expenses.

General and administrative expenses consist primarily of salaries and related costs, including stock-based

compensation, for personnel in executive, finance and administrative functions.

General and administrative expenses also include professional

fees for legal, consulting, investor and public relations and accounting and audit services.

anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our continued

research activities and development of our product candidates.

We also anticipate that we will incur increased accounting, audit, legal,

regulatory, compliance, and director and officer insurance costs as well as investor and public relations expenses associated with operating

as a public company.

Interest expense comprises accretion of interest on the Bridge Notes as well as amortization of related debt issuance

Since our inception, we have not recognized income tax benefits for the net operating losses (“NOLs”) incurred

or the research and development (“R&D”) tax credits generated each year due to uncertainty regarding the realization

of these benefits.

of December 31, 2025 and 2024, we had federal NOLs of $33,561,091 and $22,236,580, respectively.

Our 2019 NOL carryforward of $292,144

will expire in tax years through 2037.

NOLs generated in tax years 2020 and later may carry forward indefinitely;

however, the deductibility

of such NOLs is subject to certain limitations under the Code.

Accordingly, we have established a full valuation allowance to offset

our deferred tax assets due to uncertainty regarding the realization of these benefits.

issuances of common stock have resulted in ownership changes as defined by Section 382 of the Internal Revenue Code of 1986, as

amended (the “Code”);

however, we have not yet performed a formal Section 382 study, and it is possible that a future analysis

in 2026 could conclude that a substantial portion, or potentially all, of our NOL and R&D tax credit carryforwards may be limited

or rendered unusable under Sections 382 and 383 of the Code.

As a result, a portion of these carryforwards could expire unused.

subject to U.S.

federal tax examinations for the year 2021, given that NOL carryforwards from 2019 and subsequent years may be applied

to current or future tax returns.

of Operations

Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

following table summarizes our results of operations for the three months ended March 31, 2026 and 2025:

OPERATING EXPENSES

Our operating expenses are comprised primarily of research and development expenses, general and administrative expenses and licensing

Research and development

Research and development expenses consist primarily of costs incurred for our research activities, including our drug

discovery efforts, and the development of our product candidates, which include:

personnel-related costs, including salaries, benefits and stock-based compensation expense, for employees engaged in research and development functions;

expenses incurred in connection with our research programs, including under agreements with third parties, such as consultants and contractors and CROs;

the cost of developing and scaling our manufacturing process and manufacturing drug substance and drug product for use in our research and preclinical and clinical studies, including under agreements with third parties, such as consultants and contractors and contract development and manufacturing organizations (CDMOs);

the cost of laboratory supplies and research materials.

We track our direct external

research and development expenses on a program-by-program basis.

These consist of costs that include fees, reimbursed materials, and other

costs paid to consultants, contractors, CDMOs, and CROs in connection with our preclinical, clinical and manufacturing activities.

do not allocate employee costs, costs associated with our discovery efforts, and facilities expenses, including depreciation or other

indirect costs, to specific product development programs because these costs are deployed across multiple programs and, as such, are not

separately classified.

We expect that our research

and development expenses will increase substantially as we advance OST-HER2 and OST-tADC into clinical development and expand our discovery,

research and preclinical activities.

General and administrative

General and administrative expenses consist primarily of salaries and related costs, including stock-based compensation,

for personnel in executive, finance and administrative functions.

General and administrative expenses also include professional fees for

legal, consulting, investor and public relations and accounting and audit services.

We anticipate that our general

and administrative expenses will increase in the future as we increase our headcount to support our continued research activities and

development of our product candidates.

We also anticipate that we will incur increased accounting, audit, legal, regulatory, compliance,

and director and officer insurance costs as well as investor and public relations expenses associated with operating as a public company.

Licensing Costs.

incurred in obtaining technology licenses and asset purchases are charged to licensing costs if the technology licensed has not reached

technological feasibility which includes manufacturing, clinical, intellectual property and/or regulatory success which has no alternative

The licenses purchased by us require substantial completion of research and development and regulatory and marketing approval

efforts in order to reach technological feasibility.

Interest Expense.

evaluated the convertible notes issued by us from July 2018 to April 2024 in accordance with ASC 480, Distinguishing Liabilities

from Equity (“ASC 480”), and determined the convertible notes are considered share-settled debt and should be recorded

as a liability.

This conclusion was determined based on the debt providing the holder with a variable number of shares at settlement with

an aggregate fair value equal to the debt instrument’s outstanding principal.

The general measurement guidance in ASC 480 requires

obligations that can be settled in shares with a fixed monetary value at settlement (e.g., share-settled debt) to be carried at fair value

unless other accounting guidance specifies another measurement attribute.

It has been determined that the appropriate guidance for share-settled

debt is ASC 835.

As a result, the convertible notes were recorded at the amortized cost.

Cumulative Series A

Preferred Stock Dividend.

The Series A preferred stock dividend requirement represents the coupon dividends on our preferred

stock that has since been converted and is identified as a separate component of our statement of operations to compute net income (loss)

available to common stockholders.

The coupon dividends are computed at 5% of the principal per annum and are recorded monthly.

The cumulative

accrued dividend as of September 30, 2025 and December 31, 2024 were $375,000 and $375,000, respectively.

The Series A preferred

stock was converted into common stock on a 1:1 basis in February 2024, and the last coupon dividend was issued in the quarter ended

March 31, 2024.

Income Taxes.

our inception, we have not recorded income tax benefits for the net operating losses incurred or the research and development tax credits

generated in each year, due to the uncertainty of realizing a benefit from those items.

For years ended December 31,

2024 and December 31, 2023, we had federal net operating loss (“NOLs”) of $22,236,580 and $16,269,893, respectively.

The 2019 NOL carryforward of $292,144 will expire in tax years up through 2037.

The NOLs generated in tax years 2020 and beyond

will carry forward indefinitely, but the deductibility of such federal NOLs is limited.

We have provided a valuation allowance to offset

the deferred tax assets due to the uncertainty of realizing the benefits of the net deferred tax asset.

Our issuances of common stock

have resulted in ownership changes as defined by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”);

however, we have not conducted a Section 382 study to date.

It is likely that a future analysis may result in the conclusion that

a substantial portion, or perhaps substantially all, of our NOL carryforwards and R&D tax credit carryforwards will expire due to

the limitations of Sections 382 and 383 of the Code.

As a result, the utilization of the carryforwards may be limited, and a portion of

the carryforwards may expire unused.

We are subject to U.S.

federal tax examinations by tax authorities for the year 2021 due to

the fact that NOL carryforwards exist going back to 2019 that may be utilized on a current or future year tax return.

Deferred Offering Costs.

Deferred offering costs consisted of legal, accounting, printing and filing fees that we capitalized, which were offset against

the gross proceeds from our initial public offering.

Results of Operations

Three and Nine Months Ended September 30,

2025 Compared to Three and Nine Months Ended September 30, 2024

The following table summarizes

our results of operations for the three and nine months ended September 30, 2025 and 2024:

September 30,

OPERATING EXPENSES

Research & Development

General & Administrative

Loss from operations

(10,167,938 )

OTHER INCOME/EXPENSE

OTHER (EXPENSE) INCOME

Interest income

Interest expense

Non-operating expenses

Change in fair value of warrant liability

TOTAL OTHER INCOME/EXPENSE

TOTAL OTHER (EXPENSE) INCOME

(10,396,831 )

Research and Development

Research and development expenses were approximately $7.6 million for the nine months ended September 30, 2025

compared to approximately $2.0 million for the nine months ended September 30, 2024.

and Development Expenses.

Research and development expenses were approximately $7.4 million for the three months ended March

31, 2026 compared to approximately $1.3 million for the three months ended March 31, 2025.

This increase was primarily due to an increase

in vendor expenses associated with our pursuit for FDA approval on our Phase IIb clinical trial, as we compile data to submit to

various governmental agencies, and a decrease in vendor expenses associated with our OST-tADC platform technology.

Research and development

expenses were approximately $3.8 million for the three months ended September 30, 2025 compared to approximately $1.2 million

for the three months ended September 30, 2024.

This increase was primarily due to an increase in vendor expenses associated with our Phase IIb

clinical trial, as we compile data to submit to various governmental agencies, and a decrease in vendor expenses associated with our OST-tADC

platform technology.

The following table summarizes

our research and development expenses for the three and nine months ended September 30, 2025 and 2024:

in vendor expenses associated with our Phase IIb clinical trial, as we compiled data to submit to various governmental agencies,

and a decrease in vendor expenses associated with our OST-tADC platform technology.

and Administrative Expenses.

General and administrative expenses for the three months ended March

31, 2026 were approximately $2.8 million compared to $3.7 million for the three months ended March 31, 2025.

These expenses

were primarily attributed to marketing and investor relations costs, advisory fees and other compensation related expenses.

Interest expense for the three months ended March 31, 2026 was approximately $0.1 million compared to $0.0 million for

the three months ended March 31, 2025.

Interest expense related to amortization of debt issuance costs and accretion of interest on the

Bridge Convertible Notes.

Non-Operating

Non-operating expense for the three months ended March 31, 2026 was approximately $0.2 million compared to $0.0 million

for the three months ended March 31, 2025 and related to losses on foreign currency transactions.

in Fair Value of Warrant.

The Series A warrants issued in connection with our PIPE financing in December 2024 and January 2025

were reclassified from liability to equity in April 2025.

The adjustment of the fair value of the warrant liability was $0.0 million

and $1.1 million for the three months ended March 31, 2026 and 2025, respectively.

and Capital Resources

Since our inception, we have incurred significant operating losses.

Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual

commercialization of our product candidates.

For the three months ended March 31, 2026 and 2025, we reported a net loss of approximately

$10.4 million and $3.9 million, respectively, and had an accumulated deficit of approximately $77.4 million and $67.2 million,

respectively.

We expect to incur significant expenses at an increasing rate and increasing operating losses for the foreseeable future.

of March 31, 2026 and December 31, 2025, we had cash of approximately $0.9 million and $0.3 million, respectively.

To date, we have

primarily funded our operations through the sale of our securities in public offerings and private placements and warrant exercise inducement

and exchange transactions, generating total gross proceeds of approximately $52.3 million as of May 15, 2026.

We believe that the net

proceeds from these transactions, together with our existing cash, will be sufficient to fund our operating expenses and capital expenditures

for at least the next twelve months.

following table summarizes our sources and uses of cash for the three months ended March 31, 2026 and 2025:

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In thousands)

Direct research and development expenses by program:

Unallocated research and development expenses:

Personnel-related

Total research and development expenses

For the nine months ended

September 30, 2025 and 2024, the direct research and development expenses related to OST-HER2 were primarily lab fees, vendor expenses

and staff payroll fees.

In 2025, such expenses were primarily lab fees and related clinical support of approximately $1.0 million attributed

to our Phase IIb clinical trial preparation, advisor fees of $5.2 million, and legal costs of $0.1 million as we completed IND-enabling

OST-tADC related direct research and development expenses were approximately $0.0 million and $0.0 million for the

nine months ended September 30, 2025 and 2024, respectively.

For the three months ended

September 30, 2025 and 2024, the direct research and development expenses related to OST-HER2 were primarily lab fees, vendor expenses

and staff payroll fees.

In 2025, such expenses were primarily lab fees and related clinical support of approximately $0.03 million attributed

to our Phase IIb clinical trial preparation, and advisor fees of $3.3 million, as we completed IND-enabling studies.

OST-tADC related

direct research and development expenses were approximately $0.0 million and $0.0 million for the three months ended September

30, 2025 and 2024, respectively.

General and Administrative

General and administrative expenses for the nine months ended September 30, 2025 were approximately $9.2 million

compared to $1.9 million for the nine months ended September 30, 2024.

These expenses were primarily attributed to marketing and

investor relations costs and advisory fees associated with the PIPE Financing and equity line of credit.

General and administrative

expenses for the three months ended September 30, 2025 were approximately $3.1 million compared to $1.2 million for the three

months ended September 30, 2024.

These expenses were primarily attributed to marketing and investor relations costs and advisory fees

associated with the PIPE Financing and equity line of credit.

Interest Expense.

expense for the nine months ended September 30, 2025 was approximately $0.0 million compared to $2.0 million for the nine months ended

September 30, 2024.

Interest expense for the

three months ended September 30, 2025 was approximately $0.0 million compared to $0.4 million for the three months ended September 30,

Change in Fair Value

The Series A preferred stock

coupon dividend requirement of $31,250 for the nine months ended September 30, 2024 represents an expense that terminated during the period

ended March 31, 2024 upon the conversion of our old Series A preferred shares into shares of our common stock.

We issued Series A convertible

preferred stock and detachable warrants on December 31, 2024 and January 14, 2025.

The adjustment of the fair value of the warrant liability

was $1.4 million and $0.0 million for the nine months ended September 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

Operating Losses

Since our inception, we have

incurred significant operating losses.

Our ability to generate product revenue sufficient to achieve profitability will depend heavily

on the successful development and eventual commercialization of our product candidates.

For the nine months ended September 30, 2025 and

2024, we reported a net loss of approximately $15.3 million and $5.9 million, respectively, and had an accumulated deficit of approximately

$55 million and $38 million, respectively.

We expect to incur significant expenses at an increasing rate and increasing operating

losses for the foreseeable future.

For the three months ended September 30, 2025 and 2024, we reported a net loss of approximately $6.9

million and $2.9 million, respectively.

As of September 30, 2025

and December 31, 2024, we had cash of approximately $1.9 million and $5.5 million, respectively.

We have funded our operations to

date primarily from the sale of our convertible notes and Series A securities in our private placements and cash exercises of our warrants,

as well as the sale of our common stock in our initial public offering, which have provided total gross proceeds of $41.1 million as of

September 30, 2025.

We believe that the net proceeds from our private placements and initial public offering, together with our existing

cash, will enable us to fund our operating expenses and capital expenditure requirements for the next nine to twelve months.

The following table summarizes

our sources and uses of cash for the nine months ended September 30, 2025 and 2024:

September 30,

(In thousands)

Cash used in operating activities

2 unchanged sentences

Net increase (decrease) in cash

Operating Activities

During the nine months ended

September 30, 2025 and 2024, operating activities used approximately $10.5 million and $4.9 million of cash, respectively, resulting from

our net loss of approximately $15.3 million and $5.9 million, respectively, offset by net non-cash charges of approximately $2.6 million

and $1.4 million, respectively, partially offset by net cash provided by changes in our operating assets and liabilities of approximately

$2.1 million and ($0.4) million, respectively.

Net cash provided by changes

in our operating assets and liabilities for the nine months ended September 30, 2025 and 2024 consisted primarily of an increase (decrease)

in accounts payable of approximately $1.7 million and $(0.94) million, respectively, an increase in accrued interest of approximately

$0.0 million and $0.6 million, respectively, and a change in prepaid expenses of approximately $0.7 million and $(0.03) million, respectively.

The change in accrued expenses of approximately $(0.13) million and $0.13 million was a portion of the use.

During the three months ended March 31, 2026 and 2025, operating activities

used approximately $4.6 million and $3.4 million of cash, respectively, resulting from our net loss of approximately $10.4 million and

$3.9 million, respectively, offset by net non-cash charges of approximately $1.9 million and $0.7 million, respectively, partially offset

by net cash provided by changes in our operating assets and liabilities of approximately $3.9 million and ($0.3) million, respectively.

Net cash provided by changes in our operating assets and liabilities

for the three months ended March 31, 2026 and 2025 consisted primarily of an increase (decrease) in accounts payable of approximately

$2.1 million and $(0.05) million, respectively, and an increase (decrease) in accrued expenses of approximately $1.8 million and $(0.2)

million, respectively.

Non-cash charges for the

nine months ended September 30, 2025 and 2024 were primarily the result of the changes in the fair value of our warrant liability of $(1.4)

million and $0.0 million, respectively, combined with our common stock shares issued for services and our stock-based compensation of

approximately $3.3 million and $0.0 million, respectively.

Changes in accounts payable, accrued expenses and other current liabilities

and prepaid expenses and other current assets in all periods were generally due to growth in our business, the advancement of our research

programs and the timing of vendor invoicing and payments.

Investing Activities

During the nine months ended

September 30, 2025 and 2024, net cash used in investing activities was approximately $0.4 million and $0.0 million, respectively.

Financing Activities

For the nine months ended

September 30, 2025 and 2024, net cash provided by financing activities was approximately $7.3 million and $6.7 million, respectively.

For the nine months ended September 30, 2025, we saw funds raised from our Series A securities offering of $1.1 million and our warrant

inducement exercise offering of $6.3 million.

Convertible Notes.

We completed seven separate private financing transactions from July 2018 to April 2024 in which we issued convertible notes and

raised total gross proceeds of $19,426,449 from accredited investors.

All of the convertible notes were automatically converted into shares

of our common stock at the closing of our initial public offering.

Demand Notes.

March 6, 2024 and June 28, 2024, we issued demand promissory notes to a lender who was an investor in one of our prior convertible

notes rounds in a principal amount of $100,000 and $150,000, respectively.

The demand notes bear interest at a rate of 8% per annum and

the principal plus all accrued interest is payable upon demand by such lender.

If such notes are not paid on demand by us, interest will

accrue at a rate of the lesser of 16% per annum and the highest rate of interest allowable under Maryland law.

As of August 14, 2024,

we repaid the demand notes in full.

August 19, 2020, we issued a convertible note with a principal amount of $2,400,000 (the “BlinkBio Convertible Note”)

to BlinkBio, Inc., which was a related party because our former Chairman, Colin Goddard, Ph.D., is the Chairman and Chief Executive Officer

of BlinkBio, in exchange for the entry into the license agreement.

On March 15, 2021, the principal and unpaid accrued interest of

$100,000 of the BlinkBio Convertible Note converted into 1,302,082 shares of our Series A preferred stock and then distributed to

BlinkBio stockholders.

The BlinkBio Convertible Note had a conversion capitalization ceiling of $19.2 million, which limited the

price a noteholder must pay in a convertible note-to-common stock conversion occurrence.

On February 9, 2024, the 1,302,082 shares

of our Series A preferred stock were converted into 651,041 shares of common stock (on a post-split basis).

May 2021, we received the first of two tranches from TEDCO’s Rural & Underserved Business Recovery from Impact of

Covid-19 (RUBRIC) Grant in the amount of $50,000.

In October 2021, we received the second tranche of $50,000, which brought the total

reimbursable grant amount to $100,000.

We are obligated to report on and pay to TEDCO 3% of their quarterly revenues for a five-year

period following the reward date.

Income from grants and investments are not considered revenues.

Royalties due to TEDCO are capped at

150% of the amount of the award, or $150,000.

We have the option to eliminate the quarterly royalty obligation by making an advance payment

prior to the end of the five-year period, in which case, we will receive a 10% reduction of the royalty cap percentage for each year prior

to the expiration of the five-year reimbursement period that the grant is repaid in full.

If we cease to meet eligibility requirements

at any time, the reimbursement obligation will become due to TEDCO immediately;

however, the discount for meeting the obligation will

PIPE Financing

On December 24, 2024, we

entered into the PIPE Purchase Agreement with the selling stockholders, substantially all of whom were existing stockholders of the Company,

pursuant to which we agreed to issue and sell to the selling stockholders the Units for aggregate gross proceeds of not less than $6 million

and not more than $10 million.

At two closings occurring on December 31, 2024 and January 14, 2025, we issued to the selling stockholders

an aggregate of (i) 1,775,750 shares of Series A Preferred Stock and (ii) Series A Warrants initially exercisable into 1,775,750 shares

of common stock.

The gross proceeds from the closing of the PIPE Financing, before deducting transaction fees and other estimated PIPE

Financing expenses, were approximately $7,103,000.

The Purchase Agreement requires us to seek stockholder approval for any transactions

contemplated by the Purchase Agreement and the related documents for which the rules of the NYSE American require stockholder approval

(“Stockholder Approval”) and to hold a special meeting of stockholders for the purpose of obtaining Stockholder Approval not

later than April 10, 2025.

In the event Stockholder Approval is not obtained at the first meeting, we are required to call a meeting every

four months seeking Stockholder Approval until Stockholder Approval is obtained.

On April 9, 2025, we convened

the Special Meeting for the Stockholder Approval, in accordance with NYSE American LLC Company Guide Section 713(a), of the issuance of

shares of our common stock upon (i) the conversion of 1,775,750 shares of Series A Preferred Stock, (ii) the exercise of the Series A

Warrants, and (iii) the exercise of the Agent Warrants in connection with our PIPE Financing, in each case without regard to any limits

on conversion or exercise therein and in amounts collectively equal to or exceeding 20% of our common stock outstanding as of December

24, 2024 (including upon the operation of applicable price reset and anti-dilution provisions and/or the reduction of conversion prices

and exercise prices).

The Issuance Proposal was approved by the affirmative vote of a majority of the votes cast by our stockholders at

the Special Meeting.

Brookline acted as exclusive

placement agent for the issuance and sale of the securities in the PIPE Financing.

Pursuant to the terms of the Placement Agency Agreement,

we agreed to pay Brookline an aggregate cash fee (the “Cash Fee”) equal to (i) 7% of the gross proceeds received by the Company

from the sale of the securities in the PIPE Financing to selling stockholders other than certain selling stockholders identified on a

schedule thereto (“Reduced Fee Purchasers”) plus (ii) 3% of the gross proceeds received by the Company from the sale of the

securities in the PIPE Financing to Reduced Fee Purchasers, plus expenses;

provided that Ceros is entitled to 33.3% of the Cash Fee.

In addition, we agreed to

pay Brookline or its designees a fee in the form of the Agent Warrants.

The Agent Warrants are initially exercisable into a number of

shares of common stock equal to (i) 7% of the number of shares of common stock initially issuable pursuant to the shares of Series A Preferred

Stock issued to Purchasers other than Reduced Fee Purchasers in the PIPE Financing plus (ii) 3% of the number of shares of common stock

initially issuable pursuant to the shares of Series A Preferred Stock issued Reduced Fee Purchasers in the PIPE Financing;

provided that,

Ceros is entitled to up to 33.3% of the Agent Warrants.

The terms of the Agent Warrants are substantially similar to the terms of the

Series A Warrants.

At two closings occurring on December 31, 2024 and January 14, 2025, (i) Brookline received an aggregate cash fee of

$159,685 and 39,918 Agent Warrants, and (ii) Ceros received an aggregate cash fee of $79,723 and 19,930 Agent Warrants.

Warrant Exercise Inducement and Exchange

On July 11, 2025, we completed

the final closing of the First Offering.

On September 2, 2025, we closed on the Second Offering.

During the Inducement Periods, we entered

into Inducement Letters with the Holders of Existing Warrants, pursuant to which the Holders agreed to exercise for cash their Existing

Warrants to purchase an aggregate of 4,566,391 shares of our common stock in consideration of our agreement to issue New Warrants to purchase

up to an aggregate of 4,566,391 shares of our common stock at an exercise price of $3.00 per share, subject to adjustment as provided

The New Warrants are immediately exercisable from the date of issuance and have a term of exercise of five years from such date.

Pursuant to the terms of

the Inducement Letters, if the exercise of any Existing Warrant by a Holder would have resulted in such Holder exceeding the beneficial

ownership limitation contained in the Existing Warrants, the Holder agreed to pre-fund the exercise of its Existing Warrants for cash

at $1.119 per share.

Upon such pre-funding, the exercise price of the Holder’s Existing Warrants was reduced to $0.001 per share,

and such Existing Warrants became exercisable for our common stock solely at the Remaining Exercise Price.

A Holder pre-funded the exercise

of 937,500 of its Existing Warrants and agreed to receive 937,500 prepaid shares of common stock that will be issued in the future.

We engaged the Solicitation

Agent to act as our exclusive warrant solicitation agent in connection with the Offerings and agreed to pay the Solicitation Agent a cash

fee equal to (i) 5.0% of the total gross cash proceeds received from the exercise by the Holders of their Existing Warrants during the

First Inducement Period and (ii) 1.5% of the total gross cash proceeds received from the exercise by the Holders of their Existing Warrants

during the Second Inducement Period.

We also agreed to pay the Solicitation Agent up to $15,000 for its legal and other expenses.

The gross proceeds to us

from the Offerings, before deducting transaction fees and other estimated Offering expenses, were approximately $6,798,159.

the net proceeds from the Offerings to support U.S.

and international regulatory and pre-commercial efforts aimed at securing marketing

authorizations for OST-HER2 in the prevention or delay of recurrent, fully resected, pulmonary metastatic osteosarcoma, advance strategic

alternatives for our OS Animal Health subsidiary, close out and report on our OST-504 (previously ADXS-504) prostate cancer study, initiate

AI-driven next-generation tADC product candidate modeling and for general corporate purposes.

ATM Equity Offering Program

On August 8, 2025, we entered

into the Sales Agreement with the Sales Agents relating to shares of our common stock.

Pursuant to the Sales Agreement, we may offer and

sell shares of our common stock from time to time having an aggregate offering price of up to $18,000,000 through or to the Sales Agents.

We will pay each of the Sales Agents a total commission for its services in acting as agent in the sale of common stock up to 3.0% of

the gross sales price per share of all shares sold through it as agent under the Sales Agreement.

The amount of proceeds we will receive

will depend upon the actual number of shares of our common stock sold and the market price at which such shares are sold.

Because there

is no minimum offering amount required as a condition to close, the actual total public offering amount, commissions and proceeds to us,

are not determinable at this time.

Sales of our common stock under the Sales Agreement are being made pursuant to a prospectus supplement

filed with the SEC on August 25, 2025.

As of the date of this filing, we have sold an aggregate of 189,600 shares of our common stock

for aggregate gross proceeds of $384,888 pursuant to the Sales Agreement.

Contractual Obligations and Other Commitments

We enter into contracts in

the normal course of business with our CDMOs, CROs and other third parties to support preclinical research studies and testing and other

development activities.

three months ended March 31, 2026 and 2025 were primarily the result of the changes in the fair value of our warrant liability of $0 million

and $1.1 million, respectively, combined with our common stock shares issued for services and our stock-based compensation of approximately

$1.4 million and $1.3 million, respectively.

Changes in accounts payable, accrued expenses and other current liabilities and prepaid expenses

and other current assets in all periods were generally due to growth in our business, the advancement of our research programs and the

timing of vendor invoicing and payments.

During the three months ended March 31, 2026 and 2025, net cash used

in investing activities was approximately $0.0 million and $(0.2) million, respectively.

the three months ended March 31, 2026 and 2025, net cash provided by financing activities was approximately $5.2 million and $1.1 million,

respectively.

For three months ended March 31, 2026, we saw funds raised from our warrant inducement exercise offering of $3.4 million

and net proceeds from the Bridge Financing of $1.8 million.

Exercise Inducement and Exchange Offers .

On July 11, 2025, we completed a final closing of a warrant exercise inducement and

exchange offer.

On September 2, 2025, we closed on a second warrant exercise inducement and exchange offer.

On January 14, 2026, we closed

on a third warrant exercise inducement and exchange offer.

The first inducement offering and second inducement offering were made to

holders of certain of our Series A warrants issued in connection with our PIPE financing in December 2024 and January 2025 to purchase

shares of our common stock having a then current exercise price of $1.12 per share.

to certain inducement offer letter agreements, holders of such warrants exercised for cash their warrants to purchase an aggregate of

7,154,338 shares of our common stock at the then current exercise price of $1.12 per share and in exchange we issued to such holders

new warrants to purchase up to an aggregate of 7,154,338 shares of our common stock at an exercise price of $3.00 per share, subject

to adjustment as provided therein.

third inducement offering was made to less than 10 accredited investors that held warrants issued in connection with the first and second

inducement offerings to purchase up to an aggregate of 5,382,148 shares of our common stock having a then current exercise price of $3.00

or $2.10 per share.

Pursuant to certain inducement offer letter agreements, such holders of such warrants exercised for cash their warrants

to purchase 2,499,558 shares of our common stock at a reduced exercise price of $1.40 per share and in exchange we issued to such holders

new warrants to purchase up to an aggregate of 2,499,558 shares of our common stock at an exercise price of $1.40 per share, subject

to adjustment as provided therein.

engaged a Ceros to act as our exclusive warrant solicitation agent in connection with these inducement offerings and paid Ceros a cash

fee equal to 5.0%, 1.5% and 8.0% of the total gross cash proceeds received from the exercise by the holders of their respective warrants

in connection with the first inducement offering, second inducement offering and third inducement offering, respectively.

Ceros $15,000 and $25,000 for its reasonable legal and other expenses in connection with the first inducement offering and third inducement

offering, respectively.

gross proceeds to us from these inducement offerings, before deducting transaction fees and other offering expenses, were approximately

$11.5 million.

We are using the net proceeds from the inducement offerings to support U.S.

and international regulatory and pre-commercial

efforts aimed at securing marketing authorizations for OST-HER2 in the prevention or delay of recurrent, fully resected, pulmonary metastatic

Osteosarcoma, provide funding for our wholly owned subsidiary OS Animal Health’s proposed spin-off transaction preparations, and

for general corporate purposes.

Negotiated Warrant Exercise Inducement and Exchange Agreements .

From January 10, 2026 through March 2026, we entered into privately

negotiated inducement offer letters, pursuant to which certain remaining holders of warrants issued in the first and second inducement

offerings exercised for cash their warrants to purchase an aggregate of 123,216 shares of our common stock at a reduced exercise price

of $1.40 per share and in exchange we issued new warrants to purchase up to an aggregate of 123,216 shares of our common stock at an

exercise price of $1.40 per share, subject to adjustment as provided therein.

We received gross proceeds of approximately $172,502 from

the exercise of these new warrants.

Bridge Financing .

On March 4, 2026, pursuant to the Bridge SPA, we issued to certain accredited investors in the Bridge Financing

(i) Bridge Notes in an aggregate principal amount of $2,200,000 and (ii) Bridge Warrants to purchase up to an aggregate of 1,666,667

shares of our common stock, for aggregate gross proceeds of $2,000,000, before deducting placement agent fees and other Bridge Financing

The Bridge Notes were sold at a 10% original issue discount, such that for each $100,000 invested by a purchaser, such purchaser

received a Bridge Note in the principal amount of $110,000.

We are using the net proceeds of the Bridge Financing to fund clinical development

activities, including ongoing and planned clinical trials, and advance our research and development programs, as well as for working

capital and general corporate purposes.

engaged Ceros to act as the exclusive placement agent for the Bridge Financing.

In connection with the Bridge Financing, we paid to Ceros

(a) a cash fee equal to 7.0% of the aggregate gross cash proceeds received by us in connection with the Bridge Financing and (b) a one-time

expense reimbursement of $25,000 for its legal and other expenses incurred in connection with the Bridge Financing.

Registered Direct Offering .

On April 2, 2026, we the 2026 Registered Direct Offering.

We received net proceeds from the

2026 Registered Direct Offering of approximately $4.7 million.

We are using the net proceeds to fund clinical development activities,

including ongoing and planned clinical trials, advance our research and development programs, as well as for working capital and other

general corporate purposes.

connection with the 2026 Registered Direct Offering, Ceros acted as our exclusive placement agent.

We paid Ceros a cash fee equal to

7.0% of the gross proceeds raised in the 2026 Registered Direct Offering.

We also reimbursed Ceros up to $70,000 for its reasonable and

documented out-of-pocket accountable expenses and up to $20,000 for its non-accountable expenses.

We also issued to Ceros’s designees

warrants to purchase up to an aggregate of 187,798 shares of our common stock.

The placement agent warrants have an exercise price of

$1.54 per share, are exercisable beginning September 2, 2026 and expire five years from April 2, 2026.

Obligations and Other Commitments

enter into contracts in the normal course of business with our CDMOs, CROs and other third parties to support preclinical research studies

and testing and other development activities.

These contracts are generally cancellable by us.

Payments due upon cancellation consist only of payments for services

provided or expenses incurred, including non-cancellable obligations of our service providers, up to the date of cancellation.

License Obligations and Research Services

November 2020, we entered into an amended and restated development, license and supply agreement with Advaxis, Inc.

(now Ayala Pharmaceuticals,

Inc.) (“Advaxis”), a clinical-stage biotechnology company focused on the development and commercialization of proprietary

Lm ( Listeria monocytogenes )-LLO (Listeriolysin O) cancer immunotherapies.

Pursuant to this agreement, Advaxis granted a

license to us that allows us to utilize Advaxis’ ADXS-HER2 construct patents to develop and commercialize ADXS-HER2, our lead product

candidate (OST-HER2).

The agreement was subsequently amended in April 2021 to modify the payment amounts for Milestones 2 and 3 listed

in the table below.

Under the terms of the amended agreement, we are required to pay to Advaxis (i) a one-time, non-refundable payment

of $1,550,000 (the “License Commencement Payment”) and (ii) certain amounts based on the achievement of the milestones

Payments due upon cancellation consist

only of payments for services provided or expenses incurred, including non-cancellable obligations of our service providers, up to the

date of cancellation.

In August 2020, we entered into a licensing agreement with BlinkBio, Inc., a privately held developer of drug conjugate

therapies designed to facilitate the treatment of cancer.

Pursuant to this agreement, BlinkBio granted a license to us that allows us

to utilize BlinkBio’s proprietary technology to develop, manufacture and commercialize certain of our products.

BlinkBio granted

us an exclusive license for tunable drug conjugates that are directed towards, binds to or modifies the folate receptor alpha and a co-exclusive

license for tunable drug conjugates that are directed towards, binds to or modifies any target other than the folate receptor alpha,

such as HER2.

the terms of the agreement, we are required to pay to BlinkBio (i) an upfront, non-refundable, non-creditable license fee of $300,000

(the “Up-Front Fee”), (ii) a royalty of 6% of net sales of our products that were made using BlinkBio’s proprietary

technology, subject to potential reductions on such royalty, and (iii) certain amounts based on the achievement of the milestones

described in the payment schedule below.

For the nine months ended September 30, 2025 and for the year ended December 31, 2024, no payments

A $400,000 payment was made to Ayala, together with payment of stock consideration, in connection with our purchase of the

HER2 Assets on April 9, 2025, terminating this license agreement.

The payment schedule for milestones and corresponding payment amounts

were as set forth below.

Milestone Bearing Event

OST has secured funding of at least $2,337,500, in the aggregate (paid)

The earlier to occur of:

(A) OST having secured at least $8,000,000, in the aggregate, or (B) completion of the first Clinical Trial (paid)

The earlier to occur of:

(A) receipt of Regulatory Approval from the FDA for the First Indication of the first Licensed Product or (B) initiation of the first Registrational Trial of the first Licensed Product in the Field

Cumulative Net Sales of all Licensed Products in excess of $20,000,000

Cumulative Net Sales of all Licensed Products in excess of $50,000,000 Cumulative Net Sales of all Licensed Products

Cumulative Net Sales of all Licensed Products in excess of $100,000,000

On April 9, 2025, we acquired

from Ayala the HER2 Assets.

Pursuant to the terms of the HER2 Purchase Agreement, the amended and restated development, license and supply

agreement with Advaxis terminated, and we agreed to a change in milestone payments and royalty consideration owed as it relates to the

OST-HER2 program as follows:

Elimination of $3,500,000 payment owed to Ayala upon the first filing of a BLA approval for OST-HER2 with the FDA.

Elimination of a total of $16,500,000 in OST-HER2 related sales milestone payments owed to Ayala made up of the following payments:

$1,500,000 owed upon reaching cumulative sales of $20,000,000;

$5,000,000 owed upon reaching cumulative sales of $50,000,000;

$10,000,000 owed upon reaching cumulative sales of $100,000,000.

The reduction in total royalty consideration owed on OST-HER2 related sales from 10% of net sales owed to Ayala to 1.5% of net sales owed under the Penn License.

The royalty consideration of 1.5% of net sales owed to University of Pennsylvania going forward will apply to sales related to:

OST-HER2-related sales;

ADXS-503-related sales;

ADXS-504-related sales;

Sales related to any new immunotherapy drug candidates created from the Lm platform during the term of our license with the University of Pennsylvania.

In addition, we have agreed

to pay an annual fee to the Trustees of the University of Pennsylvania.

In April 2025, the Company paid a fee of $266,317 for the nine

months ended September 30, 2025.

August 2020, we entered into a licensing agreement with BlinkBio, Inc., a privately held developer of drug conjugate therapies designed

to facilitate the treatment of cancer.

Pursuant to this agreement, BlinkBio granted a license to us that allows us to utilize BlinkBio’s

proprietary technology to develop, manufacture and commercialize certain of our products.

BlinkBio granted us an exclusive license for

tunable drug conjugates that are directed towards, binds to or modifies the folate receptor alpha and a co-exclusive license for tunable

drug conjugates that are directed towards, binds to or modifies any target other than the folate receptor alpha, such as HER2.

Under the terms of the agreement,

we are required to pay to BlinkBio (i) an upfront, non-refundable, non-creditable license fee of $300,000 (the “Up-Front Fee”),

(ii) a royalty of 6% of net sales of our products that were made using BlinkBio’s proprietary technology, subject to potential

reductions on such royalty, and (iii) certain amounts based on the achievement of the milestones described in the payment schedule

As of September 30, 2025,

we had paid the Up-Front Fee.

of March 31, 2026, we had paid the Up-Front Fee.

The payment schedule for milestones and corresponding payment amounts is set forth below.

Milestone Bearing Event

License Fee to utilize proprietary technology (paid)

Bearing Event

License Fee to utilize

proprietary technology (paid)

Up-front fee +

Convertible Note

Commencement of a toxicology study commented pursuant to Good Laboratory Practices (under 21 CFR Part 58), such that any resulting positive data would be admissible to applicable Regulatory Authorities to support an IND (commonly referred to as “GLP-Tox”)

Completion of a Phase I Clinical Trial

Completion of a Phase IIb Clinical Trial

Filing of an NDA, BLA or MAA registration (or the equivalent in any other territory around the world)

Regulatory Approval in the first of the United States, within the European Union or within the United Kingdom

We are required to make the

above cash payments to BlinkBio within 30 days of the achievement of each milestone with respect to the first product to attain each

such milestone, except that the first milestone only applies to our first product candidate.

The aggregate amount of payments relating

to milestones 2 through 6 payable thereunder cannot exceed $22,375,000.

In connection with the license

agreement, we also agreed to issue the BlinkBio Convertible Note.

See “— Convertible Notes” above for more information

on the BlinkBio Convertible Note.

George Clinical.

June 2020, we entered into a services agreement, as amended, with George Clinical, Inc., a clinical contract research organization.

Pursuant to this agreement, we engaged George Clinical to use its clinical research services for our study entitled “An Open Label,

Phase 2 Study of Maintenance Therapy with OST-HER2 after Resection of Recurrent Osteosarcoma.” Under the terms of the agreement,

we are required to pay to George Clinical certain fees described in the fee schedule below.

The total new budget under the agreement is

approximately $2,436,928.

For the nine months ended September 30, 2025 and 2024, we paid $0 and $86,687, respectively, to George Clinical.

These payments have been recorded as research and development expenses in our Statement of Operations and Comprehensive Loss.

schedule for certain fees and corresponding payment amounts is set forth below.

George Clinical Payment Schedule

Service Fee Advance (paid)

Service Fee Advance of $212,335 minus the amount already paid, plus PTC Fee Advance of $31,325 (paid)

Statistics Fees – 35% on Electronic Data Capture (EDC) Go Live Date

Statistics Fees – 35% on Development of SAP tables

Statistics Fees – 30% on Final Analysis

Service Fees – Remainder Due

Split monthly

George Clinical tracks and

invoices us for the number of task units completed and pass-through costs are invoiced each month in arrears based on actual costs without

The PTC Fee Advance will be used to offset the first few months of invoices payable.

As of September 30, 2025 and 2024,

the balance due to George Clinical was $0 and $663,622, respectively.

The services agreement has terminated on its terms.

Biolacuna Ltd

We have contracted with Biolacuna

Ltd, a global life sciences advisory firm, to assist with the following agencies requirements to register OST-HER2 and gain approval of

its use in the respective regions:

European Medicines Agency (EMA, Europe);

Medicines Evaluation Board (MEB, Netherlands);

Medicines and Healthcare products Regulatory Agency (MHRA, United Kingdom);

Food and Drug Administration (FDA, United States).

For the nine months ended September 30, 2025,

we paid $2,397,131 in consulting fees, with accounts payable as of September 30, 2025 of $2,022,496.

The contract with Biolacuna is estimated

to exceed $5.2 million in 2025.

Off-Balance Sheet Arrangements

We did not have during the

periods presented, and we do not currently have, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

Recent Accounting Pronouncements

A description of recently

issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2

to Notes to the Consolidated financial statements appearing elsewhere in this report.

The JOBS Act permits an emerging

growth company such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable

to public companies until those standards would otherwise apply to private companies.

We have elected to avail ourselves of the extended

transition period for complying with new or revised financial accounting standards.

We will remain an emerging

growth company until the earliest of (i) the last day of our first fiscal year in which we have total annual gross revenues

of $1.235 billion or more;

(ii) the date on which we are deemed to be a “large accelerated filer” under the rules

of the SEC with at least $700.0 million of outstanding equity securities held by non-affiliates;

(iii) the date on which we

have issued more than $1.0 billion in non-convertible debt securities during the previous three years;

or (iv) the last day

of our fiscal year following the fifth anniversary of the date of the completion of our initial public offering.

Quantitative and Qualitative Disclosures

About Market Risk.

Not applicable.

of a toxicology study commented pursuant to Good Laboratory Practices (under 21 CFR Part 58), such that any resulting positive

data would be admissible to applicable Regulatory Authorities to support an IND (commonly referred to as “GLP-Tox”)

Completion of a Phase I

Clinical Trial

Completion of a Phase IIb

Clinical Trial

Filing of an NDA, BLA

or MAA registration (or the equivalent in any other territory around the world)

Regulatory Approval in

the first of the United States, within the European Union or within the United Kingdom

are required to make the above cash payments to BlinkBio within 30 days of the achievement of each milestone with respect to the

first product to attain each such milestone, except that the first milestone only applies to our first product candidate.

The aggregate

amount of payments relating to milestones 2 through 6 payable thereunder cannot exceed $22,375,000.

We have contracted with Biolacuna Ltd, a global life sciences advisory firm, to assist with the following agencies requirements

to register OST-HER2 and gain approval of its use in the respective regions:

European Medicines Agency

(EMA, Europe);

Medicines Evaluation Board

(MEB, Netherlands);

Medicines and Healthcare

products Regulatory Agency (MHRA, United Kingdom);

Food and Drug Administration

(FDA, United States).

the three months ended March 31, 2026, we paid $6,515,059 in consulting fees, which includes refundable value-added tax (“VAT”)

As of March 31, 2026, accounts payable related to consulting fees and VAT totaled $9,943,617.

of Pennsylvania.

On April 9, 2025, we acquired from Ayala the HER2 Assets.

Pursuant to the terms of the HER2 Purchase Agreement,

the amended and restated development, license and supply agreement with Advaxis terminated.

In connection with the acquisition of the

HER2 Assets, we were assigned by Ayala a license agreement with the Trustees of the University of Pennsylvania covering the use of HER2

construct patents.

Under the terms of the license agreement, we are required to pay an annual license fee to the Trustees of the University

of Pennsylvania.

In April 2025, we paid a fee of $266,317 for the year ended December 31, 2025.

In addition, we are obligated to pay

a royalty equal to 1.5% of net sales related to:

OST-HER2-related sales;

ADXS-503-related sales;

ADXS-504-related sales;

Sales related to any new

immunotherapy drug candidates created from the Lm platform during the term of such licensing agreement.

Sheet Arrangements

did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined in the rules

and regulations of the SEC.

Accounting Pronouncements

description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations

is disclosed in Note 2 to Notes to the Consolidated financial statements appearing elsewhere in this report.

JOBS Act permits an emerging growth company such as us to take advantage of an extended transition period to comply with new or revised

accounting standards applicable to public companies until those standards would otherwise apply to private companies.

We have elected

to avail ourselves of the extended transition period for complying with new or revised financial accounting standards.

will remain an emerging growth company until the earliest of (i) the last day of our first fiscal year in which we have total

annual gross revenues of $1.235 billion or more;

(ii) the date on which we are deemed to be a “large accelerated filer”

under the rules of the SEC with at least $700.0 million of outstanding equity securities held by non-affiliates;

date on which we have issued more than $1.0 billion in non-convertible debt securities during the previous three years;

(iv) the last day of our fiscal year following the fifth anniversary of the date of the completion of our initial public offering.

Quantitative and Qualitative Disclosures About Market Risk.

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