What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-04-03 compared with 2025-04-01 · 66 added, 55 removed, 31 unchanged (80% of the section changed)

10 unchanged sentences

Operations for the fiscal years ended December 31, 2025 and 2024

our fiscal year ended December 31, 2024, we generated revenues of $34,874,283, compared to revenues of $24,092,787 in 2023.

of approximately $10.8 million was the result of expansion of Nora Pharma sales efforts in the Province of Quebec as well as entry into

the Provinces of Ontario, Alberta and British Columbia.

Another contributing factor was the increased number of products offered by Nora

Pharma, which increased by 5 during 2024.

The cost of sales in 2024 and 2023 for generating these revenues was $24,204,489 (69.4%) and

$15,753,616 (65.4%), respectively.

The 4% increase in the cost of sales in 2024 was due to higher professional allowances incurred on

the sale of products outside the Province of Quebec.

In the Province of Quebec, professional allowances are capped by government regulations.

and administrative (“G&A”) expenses for our fiscal year ended December 31, 2024, were $16,481,915, compared to $13,124,470

during our fiscal year ended December 31, 2023, an increase of $3,357,445.

This relatively modest increase occurred in connection with

Nora Pharma’s expansion of sales operations.

had interest income of $496,003 in 2024, compared to interest income of $811,974 in 2023.

The decrease was due to reduced interest rates

and less cash on hand in 2024.

a result, we incurred a net loss of $5,134,116 for the year ended December 31, 2024, compared to a net loss of $4,506,044 for the year

ended December 31, 2023.

During our fiscal year ended December 31, 2025,

we generated revenues of $36,305,891, compared to revenues of $34,874,283 in 2024, an increase of approximately $1.4 million.

was the result of expansion of Nora Pharma sales efforts in the Provinces of Quebec, Ontario, Alberta, and British Columbia.

of sales in 2025 and 2024 for generating these revenues was $24,050,214 (66.2%) and $24,204,489 (69.4%), respectively.

The 3.2% decrease

in the cost of sales in 2025 was largely due to lower professional allowances incurred on the sale of products outside the Province of

In the Province of Quebec professional allowances are set by government regulations.

We also had lower wholesalers’ fees

and discounts in 2025.

and administrative (“G&A”) expenses for our fiscal

year ended December 31, 2025, were $18,482,706, compared to $16,481,915 during our fiscal year ended December 31, 2024, an increase of

The increase in the year ended December 31, 2025 is primarily attributable to a non-cash charge of $1,748,247 related to the

impairment of intangible assets.

In January 2026, we implemented initiatives to reduce our general and administrative expenses and better

align our cost structure with the Company’s objective of achieving profitability in the near term.

Based on our current plans, we

expect these initiatives to reduce expenses by approximately $2 million to $3 million in 2026.

However, there can be no assurance that

we will realize these anticipated reductions.

We had interest income of $280,901 in 2025, compared

to interest income of $496,003 in 2024.

The decrease was due to reduced interest rates and less cash on hand in 2025.

As a result of the foregoing, we incurred a net loss

of $5,975,352 for the year ended December 31, 2025, compared to a net loss of $5,134,116 for the year ended December 31, 2024.

Liquidity and Capital Resources

As of December 31, 2025, we had cash and cash equivalents of $9,123,308.

the fiscal years ended December 31, 2023 and 2024, we received aggregate proceeds of $3,558,812 in connection with warrant exercises.

May 16, 2023, we completed a private placement of common stock and warrants for gross proceeds of approximately $5 million.

net proceeds of approximately $4.1 million from the private placement.

February 11, 2024, we redeemed all of the April Warrants and all of the May Investor Warrants for an aggregate purchase price of $3,139,651.

February 15, 2024, we completed an underwritten public offering and in connection therewith, we issued an aggregate of 35,714 shares

of common stock and received net proceeds of $8,522,411.

January 3, 2025, we issued 127,443 shares of common stock upon the exercise of 127,443 Series B Warrants and received $355,298 in net

flows used in investing activities were $2,320,847 during the year ended December 31, 2024, compared to $656,150 during our fiscal year

ended December 31, 2023.

The reason for the increase was due to the acquisition of intangible assets and equipment for Nora Pharma operations.

Net cash flows provided by financing activities were $9,289,507 in 2024, compared to $3,425,587 in 2023.

The increase was primarily due

to a larger financing event in 2024 than in 2023 and the exercise of more warrants in 2024 than in 2023.

Net cash used in operations

was $12,531,180 in 2024, compared to $8,775,111 in 2023.

The increase was due to expansion of Nora Pharma’s operations and increase

in inventory.

We believe our existing cash will be sufficient to fund our pharmaceuticals

sales operations and research and development activities for the next 24 months.

There is no assurance our estimates will be accurate.

We have no committed sources of capital and we anticipate that we will need to raise additional capital in the future, including for further

research and development activities and possibly clinical trials, as well as expansion of our generic pharmaceutical operations.

capital may not be available on terms acceptable to us, or at all.

During the fiscal years ended December 31, 2024

and 2025, we received aggregate proceeds of $6,478,624 in connection with warrant exercises.

On February 11, 2024, we redeemed certain warrants we issued on May 16, 2023, and April 28,

2022 for an aggregate purchase price of $3,139,651.

On February 15, 2024, we completed an underwritten

public offering and in connection therewith, we issued an aggregate of 35,714 shares of common stock and received net proceeds of $8,522,411.

On January 3, 2025, we issued 127,443 shares of

common stock upon the exercise of 127,443 Series B Warrants and received $355,298 in net proceeds.

On April 2, 2025, the Company issued 660,000 shares

of common stock upon the exercise of 660,000 Series B Warrants and received $1,840,014 in net proceeds.

On April 3, 2025, the Company issued an aggregate

of 1,188,404 shares of common stock in connection with a registered direct offering and received $1,828,596 in net proceeds.

On October 16, 2025, the Company issued 350,000

shares of common stock upon the exercise of 350,000 Series B Warrants and received net proceeds of $724,500.

cash used in operations was $5,331,073 in 2025, compared to $12,524,779 in 2024.

The substantial decrease was due to more streamlined

Nora Pharma operations and a significant decrease in the rate of inventory growth.

Cash flows used

in investing activities were $836,306 during the year ended December 31, 2025, compared to $1,979,313 during our fiscal year ended December

The decrease of approximately $1.7 million was due to reduced acquisition of intangible assets and purchase of equipment for

Nora Pharma’s operations.

cash flows provided by financing activities were $4,748,408 in 2025, compared to $8,941,572 in 2024.

The decrease was due to a smaller

financing event in 2025 as well as the exercise of fewer warrants.

believe our existing cash will be sufficient to fund our operations for the next 18 months.

There is no assurance our estimates will

We have no committed sources of capital and we anticipate that we will need to raise additional capital in the future to

expand our generic pharmaceutical operations.

Additional capital may not be available on terms acceptable to us, or at all.

Critical Accounting Estimates

10 unchanged sentences

We follow the guidance in ASC 842 – Accounting

for Leases ,” as amended, which requires us to evaluate the lease agreements we enter into to determine whether they represent

operating or capital leases at the inception of the lease.

Our wholly owned subsidiary, Nora Pharma,

currently occupies a 23,500 square foot facility located at 1565 Boulevard Lionel-Boulet, Varennes, Quebec, Canada, J3X 1P7 pursuant

to a lease agreement that expires in January 2030, with an option to extend for 5 years.

This site is composed of 18,500 square feet

of warehouse space and 5,000 square feet of executive office space.

The facility houses all administrative, marketing, quality

control, regulatory affairs, and other operations personal, as well as a Health Canada licensed warehouse space.

We pay monthly rent

of $27,250 CAD (approximately $19,900 USD), including taxes.

for Leases , as amended, which requires us to evaluate the lease agreements we enter into to determine whether they represent operating

or capital leases at the inception of the lease.

Our wholly owned subsidiary, Nora Pharma, currently

occupies a 23,500 square foot facility located at 1565 Boulevard Lionel-Boulet, Varennes, Quebec, Canada, J3X 1P7 pursuant to a lease

agreement that expires in January 2030, with an option to extend for 5 years.

This site is composed of 18,500 square feet of warehouse

space and 5,000 square feet of executive office space.

The facility houses all administrative, marketing, quality control, regulatory

affairs, and other operations personal, as well as a Health Canada licensed warehouse space.

We pay monthly rent of $27,250 CAD (approximately

$19,900 USD), including taxes.

We treat this lease as an operating lease but account for liabilities and benefits resulting therefrom.

Recently Adopted Accounting

have adopted all new accounting standards impacting operations.

Sheet Arrangements

We have adopted all new accounting standards impacting

Off-Balance Sheet Arrangements

We have not entered into any off-balance sheet

3 unchanged sentences

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-K

Item 7. Management’s Discussion and Analysis