Sunshine Biopharma Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS Sunshine Biopharma Inc. Consolidated Balance Sheets June 30, December 31, 2026 2025 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 13,748,301 $ 9,123,308 Accounts receivable 4,035,360 3,459,864 Inventory 12,121,796 13,472,025 Deposits 281,480 – Prepaid expenses 478,490 798,384 Total Current Assets 30,665,427 26,853,581 Long-Term Assets: Property & equipment 477,047 557,370 Intangible assets 1,841,970 1,889,370 Right-of-use-asset 648,457 778,846 Total Long-Term Assets 2,967,474 3,225,586 TOTAL ASSETS $ 33,632,901 $ 30,079,167 LIABILITIES Current Liabilities: Accounts payable & accrued expenses $ 4,852,488 $ 5,664,212 Earnout payable 295,797 295,797 Income tax payable 268,276 268,276 Right-of-use-liability 202,518 215,637 Total Current Liabilities 5,619,079 6,443,922 Long-Term Liabilities: Right-of-use-liability 475,820 596,785 Total Long-Term Liabilities 475,820 596,785 TOTAL LIABILITIES 6,094,899 7,040,707 SHAREHOLDERS' EQUITY Preferred Stock Series B $ 0.10 par value per share; 1,000,000 shares authorized 130,000 shares issued and outstanding 13,000 13,000 Common Stock $ 0.001 par value per share; 3,000,000,000 shares authorized 2,388,516 shares issued and outstanding at June 30, 2026 and 490,595 shares issued and outstanding at December 31, 2025 2,389 491 Capital paid in excess of par value 106,004,591 98,105,404 Accumulated comprehensive income ( 658,935 ) ( 65,309 ) Accumulated (Deficit) ( 77,823,043 ) ( 75,015,126 ) TOTAL SHAREHOLDERS' EQUITY 27,538,002 23,038,460 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 33,632,901 $ 30,079,167 See Accompanying Notes To These Financial Statements. 3 Sunshine Biopharma Inc. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) 3 Months 3 Months 6 Months 6 Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2026 2025 2026 2025 Revenue $ 9,263,687 $ 9,410,230 $ 17,352,452 $ 18,311,571 Cost of Sales 6,837,005 5,987,364 12,744,780 12,158,279 Gross profit 2,426,682 3,422,866 4,607,672 6,153,292 General & Administrative Expenses: Accounting 164,801 75,611 340,610 369,370 Consulting 318,864 736,727 462,012 1,102,014 Director fees 100,000 100,000 200,000 200,000 Legal 331,003 64,995 420,079 92,194 Marketing 209,337 201,658 459,560 600,019 Office 762,187 806,605 1,633,795 1,732,483 R&D 13,222 196,232 44,946 411,509 Salaries 1,923,660 2,048,676 3,632,144 3,574,122 Taxes 138,492 112,675 268,148 222,851 Impairment of intangible assets – 1,061,809 – 1,061,809 Depreciation and amortization 77,974 72,533 154,833 137,326 Total General & Administrative Expenses 4,039,540 5,477,521 7,616,127 9,503,697 (Loss) from operations ( 1,612,858 ) ( 2,054,655 ) ( 3,008,455 ) ( 3,350,405 ) Other Income (Expense): Foreign exchange gain (loss) ( 6 ) 1,940 ( 24 ) 2,391 Interest income 48,816 72,715 97,242 148,082 Settlement proceeds – – 103,320 – Total Other Income 48,810 74,655 200,538 150,473 Net (loss) before income taxes ( 1,564,048 ) ( 1,980,000 ) ( 2,807,917 ) ( 3,199,932 ) Provision for income taxes – 209,166 – 249,327 Net (Loss) $ ( 1,564,048 ) $ ( 1,770,834 ) $ ( 2,807,917 ) $ ( 2,950,605 ) Other comprehensive income: Gain (Loss) from foreign exchange translation ( 315,629 ) 1,084,557 ( 593,626 ) 1,110,746 Comprehensive (Loss) $ ( 1,879,677 ) $ ( 686,277 ) $ ( 3,401,543 ) $ ( 1,839,859 ) Basic (Loss) per common share $ ( 1.15 ) $ ( 3.94 ) $ ( 2.95 ) $ ( 8.19 ) Weighted Average Common Shares Outstanding (Basic) 1,365,324 449,611 952,435 360,465 See Accompanying Notes To These Financial Statements. 4 Sunshine Biopharma Inc. Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, Six Months Ended June 30, 2026 2025 Cash Flows From Operating Activities: Net (Loss) $ ( 2,807,917 ) $ ( 2,950,605 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 154,833 137,236 Intangible asset impairment – 1,061,809 Stock issued for services 96,900 – Accounts receivable ( 698,211 ) 492,384 Inventory 872,395 ( 1,123,909 ) Deposits ( 281,480 ) – Prepaid expenses 288,429 255,639 Reduction in right-of-use asset 102,765 94,402 Accounts Payable & accrued expenses ( 612,523 ) ( 849,702 ) Lease liability ( 105,268 ) ( 75,536 ) Income tax payable – ( 10,118 ) Net Cash (Used In) Operating Activities ( 2,990,077 ) ( 2,968,400 ) Cash Flows From Investing Activities: Purchase of intangible assets ( 97,494 ) ( 594,714 ) Purchase of equipment ( 12,144 ) ( 167,490 ) Net Cash (Used In) Investing Activities ( 109,638 ) ( 762,204 ) Cash Flows From Financing Activities: Proceeds from public offering 5,085,000 1,828,596 Exercise of warrants 2,719,185 2,195,312 Net Cash Provided by Financing Activities 7,804,185 4,023,908 Cash and Cash Equivalents at Beginning of Period 9,123,308 9,686,529 Net increase (decrease) in cash and cash equivalents 4,704,470 293,304 Foreign currency translation adjustment ( 79,477 ) 325,487 Cash and Cash Equivalents at End of Period $ 13,748,301 $ 10,305,320 Supplementary Disclosure of Cash Flow Information: Cash paid for interest $ – $ – Cash paid for income taxes $ – $ – See Accompanying Notes To These Financial Statements. 5 Sunshine Biopharma Inc. Consolidated Statements of Shareholders' Equity (Unaudited) Number of Common Shares Common Capital Paid in Excess Number of Preferred Shares Preferred Comprehensive Accumulated Three Months Period Issued Stock of Par Value Issued Stock Income Deficit Total Balance March 31, 2026 490,595 $ 491 $ 98,105,404 130,000 $ 13,000 $ ( 343,306 ) $ ( 76,258,995 ) $ 21,516,594 Exercise of Series B Warrants 261,327 262 807,773 – – – – 808,035 Exercise of Series C Warrants 382,230 382 1,910,768 – – – – 1,911,150 Public offering, net of issuance costs 1,200,000 1,200 5,083,800 – – – – 5,085,000 Common stock issued for services 10,000 10 96,890 – – – – 96,900 Reverse split share adjustment 44,364 44 ( 44 ) – – – – – Net (loss) – – – – – ( 315,629 ) ( 1,564,048 ) ( 1,879,677 ) Balance at June 30, 2026 2,388,516 $ 2,389 $ 106,004,591 130,000 $ 13,000 $ ( 658,935 ) $ ( 77,823,043 ) $ 27,538,002 Balance March 31, 2025 270,754 $ 271 $ 93,712,514 130,000 $ 13,000 $ ( 803,770 ) $ ( 70,219,545 ) $ 22,702,470 Exercise of Series B Warrants 66,000 66 1,839,948 – – – – 1,840,014 Public offering, net of issuance costs 118,840 119 1,828,478 – – – – 1,828,597 Net (loss) – – – – – 1,084,557 ( 1,770,834 ) ( 686,277 ) Balance at June 30, 2025 455,595 $ 456 $ 97,380,940 130,000 $ 13,000 $ 280,787 $ ( 71,990,379 ) $ 25,684,804 Six Months Period Balance December 31, 2025 490,595 $ 491 $ 98,105,404 130,000 $ 13,000 $ ( 65,309 ) $ ( 75,015,126 ) $ 23,038,460 Exercise of Series B Warrants 261,327 262 807,773 – – – – 808,035 Exercise of Series C Warrants 382,230 382 1,910,768 – – – – 1,911,150 Public offering, net of issuance costs 1,200,000 1,200 5,083,800 – – – – 5,085,000 Common stock issued for services 10,000 10 96,890 – – – – 96,900 Reverse split share adjustment 44,364 44 ( 44 ) – – – – – Net (loss) –  – – – – ( 593,626 ) ( 2,807,917 ) ( 3,401,543 ) Balance at June 30, 2026 2,388,516 $ 2,389 $ 106,004,591 130,000 $ 13,000 $ ( 658,935 ) $ ( 77,823,043 ) $ 27,538,002 Balance December 31, 2024 258,010 $ 258 $ 93,357,229 130,000 $ 13,000 $ ( 829,959 ) $ ( 69,039,774 ) $ 23,500,754 Exercise of Series B Warrants 78,744 79 2,195,233 – – – – 2,195,312 Public offering, net of issuance costs 118,840 119 1,828,478 – – – – 1,828,597 Net (loss) – – – – – 1,110,746 ( 2,950,605 ) ( 1,839,859 ) Balance at June 30, 2025 455,595 $ 456 $ 97,380,940 130,000 $ 13,000 $ 280,787 $ ( 71,990,379 ) $ 25,684,804 See Accompanying Notes To These Financial Statements. 6 Sunshine Biopharma Inc. Notes to Unaudited Consolidated Financial Statements For the Three and Six Months Ended June 30, 2026 and 2025 Note 1 – Description of Business The Company was incorporated under the name Mountain West Business Solutions, Inc. on August 31, 2006, in the State of Colorado. Effective October 15, 2009, the Company acquired Sunshine Biopharma Inc. in a transaction classified as a reverse acquisition. Upon completion of the reverse acquisition, the Company changed its name to Sunshine Biopharma Inc. and began operating as a pharmaceutical company. Sunshine Biopharma has two wholly owned subsidiaries: (i) Nora Pharma Inc. (“Nora Pharma”), a Canadian corporation with a portfolio of pharmaceutical products consisting of 60 generic prescription drugs on the market in Canada, and (ii) Sunshine Biopharma Canada Inc., a Canadian corporation which develops and sells nonprescription, over-the-counter (“OTC”) supplements. The Company operates the two subsidiaries as a single business segment. Sales of the OTC supplements represent less than 3% of the Company’s total annual sales. The Company is not subject to material customer concentration risks as it sells its products directly to pharmacies in several Canadian Provinces. However, Provincial governments in Canada reimburse patients for their prescription drug expenditures to various degrees under drug reimbursement programs, making generic drugs prices highly dependent on government policies which may change over time. The most recent negotiations between the pan-Canadian Pharmaceutical Alliance (“pCPA”), the entity that negotiates drug prices on behalf of the government, and the Canadian Generic Pharmaceutical Association (“CGPA”) resulted in updated generic pricing for certain products which took effect on October 1, 2023. The updated prices are valid for three years and the agreement contains an option to extend for an additional two years. On February 10, 2024, the Canadian federal government joined the generic drug reimbursement program as a payor under the Pharmacare Act. This development further strengthened the Canadian generic drug market, which is the Company’s current focus. In addition, the Company is engaged in the development of the following proprietary drugs: · K1.1 mRNA, a lipid nano-particle (LNP) targeted for liver cancer · SBFM-PL4, a protease inhibitor for treatment of SARS Coronavirus infections Note 2 – Basis of Presentation The unaudited financial statements of the Company for the three and six month periods ended June 30, 2026 and 2025 have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. However, such information reflects all adjustments (consisting solely of normal recurring adjustments), which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full fiscal year. The balance sheet information as of December 31, 2025, was derived from the audited financial statements included in the Company's financial statements as of and for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 3, 2026. These financial statements should be read in conjunction with that report. 7 Note 3 – Reverse Stock Splits Effective June 1, 2026, April 17, 2024, and August 8, 2024, the Company completed 1-for-10 , 1-for-100 , and 1-for-20 reverse splits of its common stock, respectively. The Company had previously completed three (3) reverse stock splits including a 1-for-200 reverse split on February 9, 2022, and two 1-for-20 reverse splits, one in 2019 and the other in 2020. The Company’s financial statements included in this report reflect all six (6) reverse stock splits on a retroactive basis for all periods presented and for all references to common stock, unless specifically stated otherwise. Note 4 – Acquisition of Nora Pharma Inc. On October 20, 2022, the Company acquired all of the issued and outstanding shares of Nora Pharma Inc. (“Nora Pharma”), a Canadian privately held pharmaceutical company. The purchase price for the shares was $ 18,860,637 which was paid in cash ($ 14,346,637 ) and by the issuance of 185 shares of the Company’s common stock valued at $ 4,514,000 or $24,400.00 per share. Nora Pharma sells generic pharmaceutical products in Canada. Nora Pharma’s operations are authorized by a Drug Establishment License issued by Health Canada. As part of the consideration for Nora Pharma, the Company agreed to a $ 5,000,000 CAD ($ 3,632,000 USD) earnout amount payable to Mr. Malek Chamoun, the seller of Nora Pharma. The earnout was payable in the form of twenty (20) payments of $250,000 CAD for every $1,000,000 CAD increase in gross sales (as defined in the Purchase Agreement) above Nora Pharma’s June 30, 2022 gross sales, provided that his employment with the Company would not be terminated pursuant to the Company’s employment agreement with him. The total earnout amount of $3,632,000 has been recorded as a salary payable. During the fiscal year ended December 31, 2023, the Company paid an earnout amount of $ 1,426,914 CAD (approximately $ 1,036,500 USD) for the fiscal year ended December 31, 2022. On April 22, 2024, the Company paid another earnout amount of $ 3,093,878 CAD (approximately $ 2,247,400 USD) for the fiscal year ended December 31, 2023. As of June 30, 2026, the remaining earnout balance was $ 479,208 CAD ($ 295,797 USD). This remaining earnout amount was paid by the Company following settlement of the dispute between the Company and Mr. Chamoun on July 8, 2026 (See Note 15). Note 5 – Intangible Assets Intangible assets consisted of the following: Schedule of intangible assets Period Ended June 30, 2026 December 31, 2025 Intangible assets at beginning of period, net $ 1,889,370 $ 3,019,717 Purchase of additional intangible assets (drug licenses & dossiers) 32,681 774,355 Total 1,922,051 3,794,072 Less impairment* – ( 1,748,247 ) Less accumulated amortization ( 80,081 ) ( 156,455 ) Intangible assets, net $ 1,841,970 $ 1,889,370 * The impairment was a result of determination by the Company that certain product licenses could not be commercialized 8 Note 6 – Plant, Property and Equipment Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment begins in the month when the asset is placed into service and is provided using the straight-line method for financial reporting purposes at rates based on the estimated useful lives of the assets. Estimated useful lives range from three to twenty years. Property, plant and equipment consist of the following: Schedule of plant property and equipment Period Ended June 30, 2026 December 31, 2025 Equipment $ 291,406 $ 335,464 Computer equipment 88,800 69,139 Furniture and fixtures 43,850 45,462 Leasehold improvements 93,961 92,706 Vehicles 489,479 507,478 Total 1,007,496 1,070,249 Less accumulated depreciation ( 530,449 ) ( 512,879 ) Plant, property and equipment, net $ 477,047 $ 557,370 Note 7 – Inventory Inventory consists solely of finished goods purchased for resale. Inventory is stated at cost which represents the amount paid to acquire the finished goods. The Company evaluates inventory for potential obsolescence based on a combination of factors, including (i) aging, (ii) historical sell-through patterns, and (iii) product-specific considerations. When estimated net realizable value is lower than cost, the Company records an allowance for obsolescence for the difference. Write-downs are recorded within cost of goods sold and are not subsequently reversed. Inventory is comprised of the following: Schedule of inventory Period Ended June 30, 2026 December 31, 2025 Finished goods $ 12,966,453 $ 13,947,178 Allowance for obsolete inventory ( 844,657 ) ( 475,797 ) Total Inventory, net of allowance $ 12,121,796 $ 13,472,025 9 Note 8 – Leases The Company has obligations as a lessee for warehouse and office space with initial non-cancellable terms in excess of one year. The Company classified the lease as an operating lease. The lease contains a renewal option for a period of five years. Because the Company is certain to exercise the renewal option, the optional period is included in determining the lease term, and associated payments under the renewal option are included in the lease payments. The Company’s lease does not include termination options for either party to the lease or restrictive financial or other covenants. Payments due under the lease contract include fixed payments plus a variable payment. The Company’s office space lease requires it to make variable payments for the Company’s proportionate share of building’s property taxes, insurance, and common area maintenance. These variable lease payments are not included in lease payments used to determine lease liability and are recognized as variable costs when incurred. Amounts reported on the balance sheet as of June 30, 2026 were as follows: Schedule of lease information Operating lease ROU asset $ 648,457 Operating Lease liability - Short-term 202,518 Operating lease liability - Long-term 475,820 Remaining lease term 4 Years 3 Months Discount rate 6 % Amounts disclosed for ROU assets obtained in exchange for lease obligations and reductions of ROU assets resulting from reductions of lease obligations include amounts reduced from the carrying amount of ROU assets resulting from deferred rent. Maturities of lease liabilities under non-cancellable operating leases at June 30, 2026 are as follows: Schedule of maturities of lease liabilities 2026 $ 102,720 2027 197,177 2028 186,920 2029 177,190 Thereafter 14,331 Note 9 – Income Taxes Our Income tax (expense) / benefit of $ 0 and $ 0 for the three and six months ended June 30, 2026, respectively, is primarily due to operations outside of the United States and changes in valuation allowance related to certain deferred tax assets generated or utilized in the applicable period. Our Income tax (expense) / benefit of $ 209,166 and $ 249,327 for the three and six months ended June 30, 2025, respectively, is primarily due to operations outside of the United States and changes in valuation allowance related to certain deferred tax assets generated or utilized in the applicable period. Deferred tax assets are regularly reviewed for recoverability by jurisdiction and valuation allowances are established based on historical and projected future taxable losses and the expected timing of the reversal of existing temporary differences. The Company has recorded valuation allowances against all of its deferred tax assets of June 30, 2026, and the Company expects to maintain these valuation allowances until there is sufficient evidence that future earnings can be achieved, which is uncertain at this time. The Company's consolidated financial statements contain various tax related entries as a result of operations of the two Canadian subsidiaries and are in compliance with Canadian tax laws. 10 The Company only recognizes tax benefits from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statement from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. To date, the Company has not recognized such tax benefits in its financial statements. On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. bringing various changes to U.S. tax law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. The OBBBA also amended section 951A for taxable years beginning after December 31, 2025, replacing the prior global intangible low-taxed income regime with a net CFC tested income inclusion framework. The legislation also modified related provisions, including the deduction under Section 250 for amounts included under Section 951A. ASC Topic 740, Income Taxes , requires the tax effects of changes in tax rates and laws to be recognized in the period in which the legislation is enacted. Those effects, both current tax and deferred tax, are reported as part of continuing operations. The Company is currently assessing its impact on its Consolidated Financial Statements but does not believe that the OBBBA will have a material impact on the Company's income tax expense. Note 10 – Management and Director Compensation The Company paid its officers aggregate cash compensation of $ 593,844 and $ 524,504 for the three-month periods ended June 30, 2026 and 2025, respectively. For the six-month periods ended June 30, 2026 and 2025, the Company paid its officers aggregate cash compensation of $ 845,004 and $ 988,801 , respectively. Of the amounts paid through June 30, 2026, $ 232,000 was paid to Advanomics Corporation, a company controlled by the CEO of the Company. The Company paid its directors aggregate cash compensation of $ 100,000 for each of the three-month periods ended June 30, 2026 and 2025, and $ 200,000 for each of the six-month periods ended June 30, 2026 and 2025. In April 2026, one of the directors of the Company received a stock award of 10,000 shares of common stock valued at $ 96,900 . Note 11 – Capital Stock The Company’s authorized capital is comprised of 3,000,000,000 shares of common stock, par value $ 0.001 , and 30,000,000 shares of preferred stock, $ 0.10 par value. As of June 30, 2026, the Company had authorized 1,000,000 shares of Series B Preferred Stock. The Series B Preferred Stock is non-convertible and non-redeemable. It has a liquidation preference equal to the stated value of $0.10 per share, relative to the common stock and gives the holder the right to 1,000 votes per share. As of June 30, 2026, 130,000 shares of Series B Preferred Stock were outstanding and held by the Company’s Chief Executive Officer. On January 3, 2025, the Company issued 12,744 shares of common stock upon the exercise of 12,744 Series B Warrants and received $ 355,298 in net proceeds. On April 2, 2025, the Company issued 66,000 shares of common stock upon the exercise of 66,000 Series B Warrants and received $ 1,840,014 in net proceeds. On April 3, 2025, the Company issued an aggregate of 118,840 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 35,000 shares of common stock upon the exercise of 35,000 Series B Warrants and received net proceeds of $ 724,500 . 11 On May 19, 2026, the Company completed a public offering and received gross proceeds of approximately $ 6 .0 million. The offering consisted of 1,200,000 Common Units (or Pre-Funded Units), each consisting of (i) one (1) share of common stock or one (1) pre-funded warrant and (ii) two (2) Series C Warrants to purchase one (1) share of common stock per warrant at an initial exercise price of $5.00. The public offering price per Common Unit was $5.00 (or $4.9999 per Pre-Funded Unit, which is equal to the public offering price per Common Unit sold in the offering minus an exercise price of $0.0001 per share under the pre-funded warrants). The pre-funded warrants were immediately exercisable and could be exercised at any time until exercised in full. All of the pre-funded warrants have been exercised as of June 30, 2026. The Series C Warrants are exercisable immediately and expire five years after the initial issuance date. The exercise price and number of shares issuable under the Series C Warrants are subject to adjustment as described in more detail in the final prospectus filed in connection with the offering. As of June 30, 2026 and December 31, 2025, the Company had 2,388,516 and 490,595 shares of common stock issued and outstanding, respectively. The Company has declared no dividends since inception. Note 12 – Warrants The Company accounts for issued warrants either as a liability or equity in accordance with ASC 480-10 or ASC 815-40 . Under ASC 480-10 , warrants are considered a liability if they are mandatorily redeemable and they require settlement in cash, other assets, or a variable number of shares. If warrants do not meet liability classification under ASC 480-10 , the Company considers the requirements of ASC 815-40 to determine whether the warrants should be classified as a liability or as equity. Under ASC 815-40 , contracts that may require settlement for cash are liabilities, regardless of the probability of the occurrence of the triggering event. Liability-classified warrants are measured at fair value on the issuance date and at the end of each reporting period. Any change in the fair value of the warrants after the issuance date is recorded in the consolidated statements of operations as a gain or loss. If warrants do not require liability classification under ASC 815-40 , in order to conclude warrants should be classified as equity, the Company assesses whether the warrants are indexed to its common stock and whether the warrants are classified as equity under ASC 815-40 or other applicable GAAP standard. Equity-classified warrants are accounted for at fair value on the issuance date with no changes in fair value recognized after the issuance date. In 2022, 2023, 2024, 2025, and 2026, the Company completed seven (7) financing events, and in connection therewith, it issued warrants as follows: Schedule of warrants issued with financing Issuance Date/Type Number Exercise Price Expiry Date Feb 17, 2022 (“Tradeable Warrants”)* 206 $ 44,400.00 February 2027 Mar 14, 2022 (“2022 Pre-Funded Warrants”) 185 $ 20.00 Unlimited Mar 14, 2022 (“Investor Warrants”) 181 $ 44,400.00 March 2027 Apr 28, 2022 (“April Warrants”) 487 $ 75,200.00 April 2027 May 16, 2023 (“May Pre-Funded Warrants”) 176 $ 20.00 Unlimited May 16, 2023 (“May Investor Warrants”) 596 $ 11,800.00 November 2028 Feb 15, 2024 (“2024 Pre-Funded Warrants”) 2,250 $ 20.00 Unlimited Feb 15, 2024 (“Series A Warrants”) 399 ** $ 42,000.00 ** August 2026 Feb 15, 2024 (“Series B Warrants”) 798 ** $ 47,600.00 ** February 2029 Apr 3, 2025 (“2025 Pre-Funded Warrants”) 26,000 $ 0.01 Unlimited May 19, 2026 (“Series C Warrants”) 2,400,000 ** $ 5.00 ** May 2031 May 19, 2026 (“2026 Pre-Funded Warrants”) 84,000 $ 0.0001 Unlimited * These warrants trade on Nasdaq under the symbol SBFMW. ** Subject to adjustment. 12 On February 11, 2024, the Company redeemed all of the April Warrants and all of the May Investor Warrants for an aggregate purchase price of $ 3,139,651 . As of June 30, 2026, all of the pre-funded warrants, a total of 157 Tradeable Warrants, 141 Investor Warrants, all of the Series A Warrants, 86,937 Series B Warrants (as adjusted), and 382,230 Series C Warrants were exercised resulting in aggregate net proceeds of $ 20,856,176 received by the Company. The Company’s outstanding warrants as of June 30, 2026 consisted of the following: Schedule of warrants outstanding Type Number Exercise Price Expiry Date Tradeable Warrants 49 $ 2,200.00 February 2027 Investor Warrants 40 $ 40,000.00 March 2027 Series B Warrants 12,980,583 * $ 2.3949 * February 2029 Series C Warrants 2,017,770 ** $ 5.00 ** May 2031 * As adjusted and subject to further adjustments. ** The Series C Warrants adjusted to 4,035,540 warrants with an exercise price of $2.50 per share on July 6, 2026, twenty (20) days following the mailing of the Company’s related 14C to the shareholders of record. Note 13 – Earnings Per Share The following table sets forth the computation of basic* net (loss) per share: Schedule of computation of basic net income per share Six Months Ended June 30, 2026 2025 Net gain (loss) attributable to common stock $ ( 2,807,917 ) $ ( 2,950,605 ) Weighted average outstanding shares of common stock 952,435 360,465 Net gain (loss) per share attributable to common stock $ ( 2.95 ) $ ( 8.19 ) * Diluted net income (loss) per share is not included in this table as the Company incurred net losses for the years ended December 31, 2026 and 2025 and inclusion of dilutive instruments would have an anti-dilutive effect. Note 14 – Segment Reporting The Company operates as one operating segment, which is also its one reportable segment, as the Chief Executive Officer, acting as the Chief Operating Decision Maker (“CODM”), evaluates financial performance and allocates resources on a consolidated, enterprise-wide basis. The Company’s operations are managed as an integrated pharmaceutical business focused on the research, development, and commercialization of prescription drugs and supplements. Although the Company conducts activities through multiple legal entities — including Sunshine Biopharma Inc. (U.S.), Sunshine Biopharma Canada Inc. (Canada), and Nora Pharma Inc. (Canada) — these entities operate under a unified management structure with shared economic characteristics, common product development objectives, and centralized decision making. As such, they do not meet the criteria for separate operating segments under ASC 280 – Segment Reporting . In accordance with ASU 2023-07 , the Company provides the following information regarding its single reportable segment: · Measure of Segment Profit (Loss): The CODM evaluates performance using consolidated operating income (loss), which is consistent with the amounts presented in the accompanying consolidated financial statements. · Significant Segment Expenses: Research and development expenses, and supply chain costs, selling and marketing expenses, and general and administrative expenses are all incurred and reviewed on a consolidated basis. · Other Segment Items: Interest income, interest expense, foreign exchange gains and losses, and other non-operating items are also managed and reviewed on a consolidated basis. · Reconciliation: As the Company has only one reportable segment, no additional reconciliation to consolidated totals is required beyond what is presented in the consolidated statements of operations. 13 The Company’s operations are conducted in Canada and substantially all long-lived assets are located in this jurisdiction. Revenues are generated from customers located in Canada. Note 15 – Legal Matters On April 10, 2025, the Company terminated the employment of Mr. Malek Chamoun, president of the Company’s wholly owned Canadian subsidiary, Nora Pharma. On April 17, 2025, the Company received a demand letter from the attorneys of Mr. Chamoun requesting that the Company pay to Mr. Chamoun $7,307,025 CAD (approximately $5,300,000 USD) within five (5) days. On July 8, 2026, the Company entered into an agreement of transaction and mutual release (the “Release Agreement”) with Mr. Chamoun. Pursuant to the Release Agreement, the Company agreed to pay Mr. Chamoun $ 1,500,000 CAD (approximately $ 1,058,565 million USD) in full and final settlement of the dispute between the parties. The total amount of the settlement had been accrued under earnout payable, salaries, and reimbursable employee expenses. The Company paid this amount in accordance with the Release Agreement on August 10, 2026. Note 16 – Subsequent Events On July 20, 2026, the Company entered into an At-The-Market Issuance Sales Agreement (the “Sales Agreement”) with Aegis Capital Corp. (the “Agent”), under which the Company may, from time to time, sell shares of the Company’s common stock, for an aggregate offering price of up to $4,000,000, in “at-the-market” offerings through or to the Agent, as exclusive sales agent (the “ATM Offering”). Subject to the terms and conditions of the Sales Agreement and the applicable placement notice, sales of the Company’s common stock may be made by any method permitted by law deemed to be an “at-the-market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Capital Market or any other existing trading market for the Company’s common stock. The Agent will receive a commission from the Company of 3.0% of the gross proceeds from the sale of any shares of common stock under the Sales Agreement, in addition to reimbursement of certain expenses . From July 27, 2026 through August 12, 2026, the Company sold 1,430,521 shares of its common stock under the ATM Offering and received $1,722,555 in net proceeds. On August 3, 2026, the Company’s Series B Warrants were adjusted to 25,477,133 warrants with an exercise price of $1.2202 per share as a result of sales of common stock by the Company under its ATM Offering . On August 7, 2026, the Company issued 58,300 shares of common stock to one of its directors for services rendered to the Company. 14