{"url_path":"/sec/ltrn/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Financial Statements.**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1763950/0001493152-26-023740-index.html","accession_number":"0001493152-26-023740","cik":"0001763950","ticker":"LTRN","issuer_name":"Lantern Pharma Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1763950/0001493152-26-023740-index.html","primary_entity_key":"0001763950","primary_entity_name":"Lantern Pharma Inc."},"word_count":6304,"has_tables":true,"body_markdown":"**Item\n1. Financial Statements.**\n\n \n\n**Lantern\nPharma Inc. and Subsidiaries**\n\n**Condensed\nConsolidated Balance Sheets**\n\n \n\n  \nMarch 31, 2026  \nDecember 31, 2025 \n\n  \n(Unaudited)  \n  \n\nCURRENT ASSETS \n    \n   \n\nCash and cash equivalents \n$4,917,796  \n$4,422,838 \n\nMarketable securities \n 1,405,057  \n 5,696,386 \n\nPrepaid expenses & other current assets \n 734,407  \n 683,948 \n\nTotal current assets \n 7,057,260  \n 10,803,172 \n\n  \n    \n   \n\nProperty and equipment, net \n 28,022  \n 31,875 \n\nOperating lease right-of-use assets \n 56,868  \n 75,595 \n\nDeferred offering costs \n 54,827  \n 88,431 \n\nOther assets \n 26,090  \n 36,738 \n\n  \n    \n   \n\nTOTAL ASSETS \n$7,223,067  \n$11,035,811 \n\n  \n    \n   \n\nCURRENT LIABILITIES \n    \n   \n\nAccounts payable and accrued expenses \n$3,718,290  \n$4,423,048 \n\nOperating lease liabilities, current \n 59,076  \n 78,539 \n\nTotal current liabilities \n 3,777,366  \n 4,501,587 \n\n  \n    \n   \n\nTOTAL LIABILITIES \n 3,777,366  \n 4,501,587 \n\n  \n    \n   \n\nCOMMITMENTS AND CONTINGENCIES (NOTE 4) \n -  \n - \n\n  \n    \n   \n\nSTOCKHOLDERS’ EQUITY \n    \n   \n\nPreferred Stock (1,000,000 authorized at March 31, 2026 and December 31, 2025; $.0001 par value) (Zero shares issued and outstanding at March 31, 2026 and December 31, 2025) \n -  \n - \n\nCommon Stock (25,000,000 authorized at March 31, 2026 and December 31, 2025; $.0001 par value) (11,254,697 shares issued and outstanding at March 31, 2026 and December 31, 2025) \n 1,125  \n 1,125 \n\nAdditional paid-in capital \n 99,954,439  \n 99,652,724 \n\nAccumulated other comprehensive (loss) income \n (35,637) \n 25,430 \n\nAccumulated deficit \n (96,474,226) \n (93,145,055)\n\nTotal stockholders’ equity \n 3,445,701  \n 6,534,224 \n\n  \n    \n   \n\nTOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY \n$7,223,067  \n$11,035,811 \n\n \n\nSee\naccompanying Notes to Condensed Consolidated Financial Statements\n\n** **\n\n1\n\n \n\n** **\n\n**Lantern\nPharma Inc. and Subsidiaries**\n\n**Condensed\nConsolidated Statements of Operations (Unaudited)**\n\n \n\n  \n2026  \n2025 \n\n  \n\n**Three Months Ended**\n\n**March 31,**\n \n\n  \n2026  \n2025 \n\nOperating expenses: \n    \n   \n\nGeneral and administrative \n$1,680,375  \n$1,510,077 \n\nResearch and development \n 1,724,872  \n 3,263,955 \n\nTotal operating expenses \n 3,405,247  \n 4,774,032 \n\nLoss from operations \n (3,405,247) \n (4,774,032)\n\nInterest income \n 42,160  \n 149,790 \n\nOther income, net \n 33,916  \n 87,459 \n\n  \n    \n   \n\nNET LOSS \n$(3,329,171) \n$(4,536,783)\n\n  \n    \n   \n\nNet loss per share of common shares, basic and diluted \n$(0.30) \n$(0.42)\n\nWeighted-average number of common shares outstanding, basic and diluted \n 11,253,030  \n 10,784,725 \n\n \n\nSee\naccompanying Notes to Condensed Consolidated Financial Statements\n\n \n\n2\n\n \n\n** **\n\n**Lantern\nPharma Inc. and Subsidiaries**\n\n**Condensed\nConsolidated Statements of Comprehensive Loss (Unaudited)**\n\n \n\n  \n2026  \n2025 \n\n  \n\n**Three Months Ended**\n\n**March 31,**\n \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nNET LOSS \n$(3,329,171) \n$(4,536,783)\n\n  \n    \n   \n\nOther comprehensive loss \n    \n   \n\nUnrealized loss on available-for-sale securities \n (2,050) \n (8,202)\n\nUnrealized loss on foreign currency translation \n (59,017) \n (14,054)\n\nOther comprehensive loss \n (61,067) \n (22,256)\n\nComprehensive loss \n$(3,390,238) \n$(4,559,039)\n\n \n\nSee\naccompanying Notes to Condensed Consolidated Financial Statements\n\n \n\n3\n\n \n\n** **\n\n**Lantern\nPharma Inc. and Subsidiaries**\n\n**Condensed\nConsolidated Statements of Stockholders’ Equity (Unaudited)**\n\n \n\n  \nof Shares  \nAmount  \nShares  \nAmount  \nCapital  \nIncome (Loss)  \nDeficit  \nEquity \n\n  \n\n**Preferred**\n\n**Stock**\n\n**Number**\n  \n\n**Preferred**\n\n**Stock**\n  \n\n**Common**\n\n**Stock**\n\n**Number of**\n  \n\n**Common**\n\n**Stock**\n  \n\n**Additional**\n\n**Paid-in-**\n  \n\n**Accumulated**\n\n**Other**\n\n**Comprehensive**\n  \nAccumulated  \n\n**Total**\n\n**Stockholders’**\n \n\n  \nof Shares  \nAmount  \nShares  \nAmount  \nCapital  \nIncome (Loss)  \nDeficit  \nEquity \n\n \n\nBalance, December 31, 2024 \n       -  \n$       -  \n 10,784,725  \n$1,078  \n$97,058,323  \n$153,990  \n$(76,025,617) \n$21,187,774 \n\nStock-based compensation \n -  \n -  \n -  \n -  \n 147,750  \n -  \n -  \n 147,750 \n\nNet loss \n -  \n -  \n -  \n -  \n -  \n -  \n (4,536,783) \n (4,536,783)\n\nOther comprehensive loss \n -  \n -  \n -  \n -  \n -  \n (22,256) \n -  \n (22,256)\n\nBalance, March 31, 2025 \n -  \n$-  \n 10,784,725  \n$1,078  \n$97,206,073  \n$131,734  \n$(80,562,400) \n$16,776,485 \n\n  \n    \n    \n    \n    \n    \n    \n    \n   \n\nBalance, December 31, 2025 \n -  \n$-  \n 11,254,697  \n$1,125  \n$99,652,724  \n$25,430  \n$(93,145,055) \n$6,534,224 \n\nBalance \n -  \n$-  \n 11,254,697  \n$1,125  \n$99,652,724  \n$25,430  \n$(93,145,055) \n$6,534,224 \n\nVesting of restricted common stock issued for services \n -  \n -  \n -  \n -  \n 38,800  \n -  \n -  \n 38,800 \n\nStock-based compensation \n -  \n -  \n -  \n -  \n 262,915  \n -  \n -  \n 262,915 \n\nNet loss \n -  \n -  \n -  \n -  \n -  \n -  \n (3,329,171) \n (3,329,171)\n\nOther comprehensive loss \n -  \n -  \n -  \n -  \n -  \n (61,067) \n -  \n (61,067)\n\nBalance, March 31, 2026 \n -  \n$-  \n 11,254,697  \n$1,125  \n$99,954,439  \n$(35,637) \n$(96,474,226) \n$3,445,701 \n\nBalance \n -  \n$-  \n 11,254,697  \n$1,125  \n$99,954,439  \n$(35,637) \n$(96,474,226) \n$3,445,701 \n\n \n\nSee\naccompanying Notes to Condensed Consolidated Financial Statements\n\n \n\n4\n\n \n\n** **\n\n**Lantern\nPharma Inc. and Subsidiaries**\n\n**Condensed\nConsolidated Statements of Cash Flows (Unaudited)**\n\n \n\n  \n2026  \n2025 \n\n  \n\n**Three Months Ended**\n\n**March 31,**\n \n\n  \n2026  \n2025 \n\nCASH FLOWS FROM OPERATING ACTIVITIES \n    \n   \n\nNet loss \n$(3,329,171) \n$(4,536,783)\n\nAdjustments to reconcile net loss to cash used in operating activities: \n    \n   \n\nDepreciation and amortization \n 3,853  \n 4,574 \n\nNon-cash lease adjustments \n 18,727  \n 47,789 \n\nVesting of restricted common stock issued for services \n 38,800  \n - \n\nStock-based compensation \n 262,915  \n 147,750 \n\nWrite-off of deferred offering costs \n 33,604  \n - \n\nAccretion of discounts on available for sale debt securities, net \n (20,172) \n (71,373)\n\nForeign currency remeasurement gain \n (77,286) \n (17,278)\n\nRealized gain on redemptions of available for sale debt securities \n -  \n (10,368)\n\nRealized loss on redemption of equity securities \n -  \n 142,248 \n\nUnrealized loss (gain) on equity securities \n 59,451  \n (151,264)\n\nChanges in assets and liabilities: \n    \n   \n\nPrepaid expenses and other current assets \n (49,508) \n 133,375 \n\nAccounts payable and accrued expenses \n (705,025) \n (15,554)\n\nOperating lease liabilities \n (19,463) \n (48,726)\n\nOther assets \n 10,648  \n - \n\nNet cash flows used in operating activities \n (3,772,627) \n (4,375,610)\n\n  \n    \n   \n\nINVESTING ACTIVITIES \n    \n   \n\nPurchase of property and equipment \n -  \n (1,159)\n\nPurchases of marketable securities \n -  \n (4,983,854)\n\nRedemptions of marketable securities \n 4,250,000  \n 8,224,344 \n\nNet cash flows provided by investing activities \n 4,250,000  \n 3,239,331 \n\n  \n    \n  \n\nEffect of foreign exchange rates on cash \n 17,585  \n 2,802 \n\n  \n    \n   \n\nCHANGE IN CASH AND CASH EQUIVALENTS FOR THE PERIOD \n 494,958  \n (1,133,477)\n\n  \n    \n   \n\nCASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD \n 4,422,838  \n 7,511,079 \n\n  \n    \n   \n\nCASH AND CASH EQUIVALENTS, END OF PERIOD \n$4,917,796  \n$6,377,602 \n\nNon-cash investing and financing activities: \n    \n   \n\nDeferred offering costs in accounts payable and accrued expenses \n$10,000  \n$- \n\n \n\nSee\naccompanying Notes to Condensed Consolidated Financial Statements\n\n \n\n5\n\n \n\n** **\n\n**NOTES\nTO FINANCIAL STATEMENTS**\n\n \n\n**Note\n1. Organization, Principal Activities, and Basis of Presentation**\n\n \n\nLantern\nPharma Inc., and Subsidiaries (the “Company”) is an artificial intelligence (A.I.) focused company dedicated to developing\ncancer therapies and transforming the cost, pace, and timeline of oncology drug discovery and development. The Company’s development\nportfolio includes three clinical stage oncology focused product candidates and consists of small molecule drug candidates that others\nhave tried, but failed, to develop into an approved commercialized drug, as well as new compounds that it is developing with the assistance\nof its A.I. platform and its biomarker driven approach. The Company’s A.I. platform, known as RADR®, uses big data\nanalytics (combining molecular data, drug efficacy data, data from historical studies, data from scientific literature, phenotypic data\nfrom trials and publications, and mechanistic pathway data) and machine learning. The Company’s data-driven, genomically-targeted\nand biomarker-driven approach allows it to pursue a transformational drug development strategy that identifies, rescues or develops,\nand advances potential small molecule drug candidates.\n\n \n\nLantern\nPharma Inc. was incorporated under the laws of the state of Texas on November 7, 2013, and thereafter reincorporated in the state of\nDelaware on January 15, 2020. The Company’s principal operations are located in Texas. The Company formed a wholly owned subsidiary,\nLantern Pharma Limited, in the United Kingdom in July 2017, and dissolved this subsidiary in November 2025. In September 2021, the Company\nformed a wholly owned subsidiary, Lantern Pharma Australia Pty Ltd, in Australia. In January 2023, the Company formed a wholly owned\nU.S. subsidiary, Starlight Therapeutics Inc. (“Starlight”), to continue with advancing the development of drug candidate\nLP-184’s central nervous system (CNS) and brain cancer indications.\n\n \n\nSince\ninception, the Company has devoted substantially all its activity to advancing research and development, including efforts in connection\nwith preclinical studies, clinical trials and development of its RADR® platform. This now includes three lead drug candidates\nand an Antibody Drug Conjugate (ADC) program directed towards 11 disclosed therapeutic targets:\n\n \n\n \n●\nLP-300\n(Tavocept), which we are advancing in a Phase 2 clinical trial, the Harmonic™ trial, focused on never smokers with advanced\nnon-small cell lung cancer;\n\n \n \n \n\n \n●\nLP-184,\nwhich has potential for treatment of solid tumors including breast, bladder, lung and pancreatic cancers, and glioblastoma and other\nCNS cancers. We have completed enrollment in a Phase 1a clinical trial for LP-184. Following the formation of Starlight, the Company\nnow refers to the molecule LP-184, as it is developed in CNS indications, as “STAR-001”;\n\n \n \n \n\n \n●\nLP-284,\nthe stereoisomer (enantiomer) of LP-184, is in a Phase 1 clinical trial, and has shown promising *in-vitro* and *in vivo*\nanticancer activity in multiple hematological cancers, which are distinct from the indications targeted by LP-184; and\n\n \n \n \n\n \n●\nOur\nADC program is focused on developing highly specific ADCs with highly potent drug payloads.\n\n \n\nThe\nCompany’s fiscal year ends on December 31 of each calendar year. The accompanying interim condensed consolidated financial statements\nare unaudited and have been prepared on substantially the same basis as the Company’s annual consolidated financial statements\nfor the fiscal year ended December 31, 2025. In the opinion of the Company’s management, these interim condensed consolidated financial\nstatements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the\nCompany’s financial position, results of operations and cash flows for the periods presented. The preparation of financial statements\nin conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management\nto make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and\nliabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting\nperiods. Actual results could differ from these estimates.\n\n \n\n6\n\n \n\n \n\nThe\nDecember 31, 2025 year-end condensed consolidated balance sheet data in the accompanying interim condensed consolidated financial statements\nwas derived from audited consolidated financial statements. These condensed consolidated financial statements and notes do not include\nall disclosures required by GAAP and should be read in conjunction with the Company’s audited consolidated financial statements\nas of and for the year ended December 31, 2025 and the notes thereto included in the Company’s Annual Report on Form 10-K, dated\nMarch 30, 2026, on file with the Securities and Exchange Commission.\n\n \n\nThe\nresults of operations and cash flows for the interim periods included in these condensed consolidated financial statements are not necessarily\nindicative of the results to be expected for any future period or the entire fiscal year.\n\n \n\nAny\nreference in these notes to applicable guidance refers to Accounting Standards Codification (“ASC”) and Accounting Standards\nUpdate (“ASU”) of the Financial Accounting Standards Board (“FASB”). To date, the Company has operated its business\nas one segment. The Company’s condensed consolidated financial statements include the accounts of the Company and its wholly owned\nsubsidiaries, Lantern Pharma Limited (for the quarter ended March 31, 2025), Lantern Pharma Australia Pty Ltd. and Starlight Therapeutics\nInc. All intercompany balances and transactions have been eliminated in consolidation.\n\n \n\n**Note\n2. Liquidity and Going Concern**\n\n \n\nThe\nCompany incurred a net loss of approximately $3,329,000 and $4,537,000 during the three months ended March 31, 2026 and 2025, respectively.\nAs of March 31, 2026, the Company had working capital of approximately $3,280,000.\n\n \n\nThe\nCompany plans to pursue periodic capital raises and also plans to apply for grant funding in the future to assist in supporting its capital\nneeds. In July 2025, the Company entered into an ATM Sales Agreement (“ATM”), with ThinkEquity LLC (“ThinkEquity”),\nas sales agent, pursuant to which the Company may offer and sell shares of its common stock from time to time, in “at-the-market”\nofferings to or through its sales agent.\n\n \n\nAs described in Note 10, on May 12, 2026, the Company entered into a securities\npurchase agreement (the “Purchase Agreement”) with institutional investors, pursuant to which the Company agreed to issue\nand sell to such investors in a registered direct offering (i) 1,454,175 shares common stock of the Company, at an offering price of $2.06\nper share, and (ii) pre-funded warrants to purchase up to 681,748 shares of common stock (the “Pre-Funded Warrants”) in lieu\nof the Common Shares, at an offering price of $2.0599 (such registered direct offering, the “Offering”). The Offering closed\non May 14, 2026, and the Company received gross proceeds of approximately $4.4 million from the Offering, before deducting Offering expenses\npayable by the Company, including the fees of the placement agent for the Offering. In addition, in a concurrent private placement, the\nCompany agreed to issue to such investors warrants to purchase up to 2,135,923 shares of common stock, at an exercise price of $2.27 per\nshare. We may also explore the possibility of additional manners of offering our equity securities\nand entering into commercial credit facilities as an additional source of liquidity.\n\n \n\nWe\nbelieve that our cash, cash equivalents, and marketable securities on hand as of the date of this report, including the net proceeds\nfrom the Offering of shares of common stock and Pre-Funded Warrants, will enable us to fund our operating expenses and capital expenditure requirements until approximately the\nmiddle of the first quarter of 2027. We will need substantial additional capital to fund our operations beyond that time period, and\nif we are unable to raise capital when needed, we could be forced to delay, reduce or eliminate our drug development programs or\ncommercialization efforts.\n\n \n\nThe\nCompany’s ability to continue as a going concern is highly contingent on the ability to raise additional capital for ongoing research\nand development and clinical trials as the Company expects to continue incurring losses for the foreseeable future. The financial statements\nin this report have been prepared assuming that the Company will continue as a going concern, and do not include any adjustments that\nmay be necessary should the Company be unable to continue as a going concern. The Company has incurred, and it anticipates it will continue\nto incur, losses and generate negative operating cash flows and as such will require substantial additional funding in the near future\nto continue its research and development activities. These factors raise substantial doubt about the Company’s ability to continue\nas a going concern in the absence of obtaining substantial additional funding. While the Company plans to pursue periodic capital raises,\nincluding additional potential sales under the ATM, no assurance can be given that sufficient funding will be available when needed to\nallow the Company to continue as a going concern.\n\n \n\n**Note\n3. Summary of Significant Accounting Policies**\n\n \n\n**Use\nof Estimates and Assumptions**\n\n \n\nThe\npreparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported\namounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the\nreported amounts of revenues and expenses during the reporting period. The significant areas of estimation include determining research\nand development accruals, the inputs in determining the fair value of equity-based awards and warrants issued, the inputs in determining\npresent value of lease payments, and determining the fair value of marketable securities. Actual results could differ from those estimates.\n\n \n\n7\n\n \n\n \n\n**Foreign\nCurrency**\n\n** **\n\nWe\ntranslate the financial statements of our Australian subsidiary, which has a functional currency of the Australian dollar, to U.S. dollars\nusing month-end exchange rates for assets and liabilities and average exchange rates for income and expenses. Translation gains and losses\nare recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. Gains and losses resulting\nfrom foreign currency transactions that are denominated in currencies other than our functional currency (U.S. dollar) are included within\nother income, net on the consolidated statements of operations.\n\n \n\n**Risks\nand Uncertainties**\n\n \n\nThe\nCompany operates in an industry that is subject to intense competition, government regulation and rapid technological change. Operations\nare subject to significant risk and uncertainties including financial, operational, technological, regulatory, and other risks, including\nthe potential risk of business failure.\n\n \n\nOur\nmarketable securities may be impacted by various risks related to interest rates, market conditions, stock market fluctuations and credit\nrisk. Our marketable securities that are debt securities have had and may in the future have their market value fluctuate due to rises\nor falls in interest rates. While we believe our cash, cash equivalents and marketable securities do not contain excessive risk, we cannot\nprovide absolute assurance that in the future our investments will not be subject to adverse changes in market value. In addition, we\nmaintain significant amounts of cash and cash equivalents at one or more financial institutions that are federally insured. Interest\nbearing and non-interest bearing accounts we hold at these banking institutions are guaranteed by the Federal Deposit Insurance Corporation\n(“FDIC”) up to $250,000 per depositor, per FDIC-insured bank, per ownership category. From time to time, some of our cash\nbalances held at banking institutions may be in excess of FDIC coverage.\n\n \n\nWe\ncurrently rely on foreign third-party manufacturers and service providers in connection with certain aspects of our clinical operations.\nThe U.S. government and persons involved in the Trump administration have made statements and taken certain actions that have led to,\nand may continue to lead to, changes to U.S. and international trade policies. Although some previously imposed tariffs have recently\nbeen struck down, potential new tariffs and the potential escalation of trade disputes with foreign countries could pose a significant\nrisk to our business and could result in higher operating expenses. U.S. policies on tariffs and international trade could also result\nin fluctuations in interest rates, which could have a negative impact on general economic conditions, on the industry sector in which\nwe operate, and on our business.\n\n** **\n\n**Research\nand Development**\n\n \n\nResearch\nand development costs are expensed as incurred. These expenses primarily consist of payroll, contractor expenses, research study expenses,\ncosts for manufacturing and supplies, clinical site costs and other costs for the conduct of clinical trials, costs for technical infrastructure\non the cloud for the purposes of developing the Company’s RADR® platform, and other costs for identifying, developing,\nand testing drug candidates. Development costs incurred by third parties are expensed as the work is performed. Costs to acquire technologies,\nincluding licenses, that are utilized in research and development and that have no alternative future use are expensed when incurred.\n\n \n\nWhen\naccruing clinical expenses, we estimate the time period over which services will be performed and the level of effort to be expended\nin each period. If possible, we obtain information regarding unbilled services directly from our service providers. However, we may be\nrequired to estimate the cost of these services based only on information available to us. If we underestimate or overestimate the cost\nassociated with a trial or service at a given point in time, adjustments to research and development expenses may be necessary in future\nperiods. Historically, our estimated accrued clinical expenses have generally approximated actual expense incurred.\n\n** **\n\n**Cash\nand Cash Equivalents**\n\n \n\nThe\nCompany considers money market funds and other highly liquid instruments with an original maturity of 3 months or less to be cash equivalents.\nCash equivalents at March 31, 2026 and December 31, 2025 were approximately $2,533,000 and $1,540,000, respectively, and are included\nalong with cash under the caption cash and cash equivalents on the Company’s condensed consolidated balance sheets.\n\n** **\n\n8\n\n \n\n** **\n\n**Prepaid\nExpenses and Other Current Assets**\n\n \n\nPrepaid\nexpenses and other current assets as of March 31, 2026 totaled approximately $734,000 and included approximately $546,000 of upfront\npayments for contractor fees, academic research studies and services, and subscriptions, approximately $156,000 of prepaid annual insurance\nfees, and approximately $32,000 of receivables from dividends and tax incentives.\n\n \n\nPrepaid\nexpenses and other current assets as of December 31, 2025 totaled approximately $684,000 and included approximately $360,000 of upfront\npayments for contractor fees, academic research studies and services, and subscriptions, approximately $294,000 of prepaid annual insurance\nfees, and approximately $30,000 of receivables from dividends and tax incentives.\n\n** **\n\n**Leases**\n\n \n\nThe\nCompany determines whether an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use\n(“ROU”) assets, current portion of operating lease liabilities, and net of current portion of operating lease liabilities\non our consolidated balance sheets. Lease ROU assets represent the Company’s right to use an underlying asset for the lease term\nand lease liabilities represent an obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are\nrecognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As the Company’s\nleases do not provide an implicit rate, an incremental borrowing rate is used based on the information available at the commencement\ndate in determining the present value of lease payments. The Company does not include options to extend or terminate the lease term unless\nit is reasonably certain that the Company will exercise any such options. Rent expense is recognized under the operating leases on a\nstraight-line basis. The Company does not recognize right-of-use assets or lease liabilities for short-term leases, which have a lease\nterm of twelve months or less, and instead will recognize lease payments as expense on a straight-line basis over the lease term.\n\n \n\n**Marketable\nSecurities**\n\n \n\nThe\nCompany’s marketable securities at March 31, 2026 consist of mutual funds and common stock. The Company’s marketable securities\nat December 31, 2025 consist of government and agency securities, mutual funds and common stock. We classify our marketable securities\nas available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We may sell these securities\nat any time for use in current operations even if they have not yet reached maturity. As a result, we classify our investments, including\nsecurities with maturities beyond twelve months, as current assets in the accompanying condensed consolidated balance sheets.\n\n \n\n9\n\n \n\n \n\nAvailable-for-sale\ndebt securities are recorded at fair value each reporting period. Unrealized gains and losses on available-for-sale debt securities are\nexcluded from earnings and recorded as a separate component within accumulated other comprehensive income (loss) on the condensed consolidated\nbalance sheets until realized. Interest is reported within interest income on the condensed consolidated statements of operations. We\nevaluate our available-for-sale debt securities to assess whether the amortized cost basis is in excess of estimated fair value and determine\nwhat amount of that difference, if any, is caused by expected credit losses. Allowance for credit losses are recognized as a charge in\nother income, net on the condensed consolidated statements of operations, and any remaining unrealized losses are included in accumulated\nother comprehensive income (loss) on the condensed consolidated balance sheets. The allowance for credit losses is zero at March 31,\n2026 and December 31, 2025, and there were no credit losses recorded during the three months ended March 31, 2026 and 2025.\n\n \n\nEquity\nsecurities, which are composed of mutual funds and common stock, are recorded at fair value each reporting period, with changes in fair\nvalue of these investments, as well as dividends earned, recorded within other income, net on the condensed consolidated statements of\noperations.\n\n \n\nWe\ndetermine realized gains and losses on the sale of marketable securities based on the specific identification method and record such\ngains and losses within other income, net on the condensed consolidated statements of operations.\n\n** **\n\n**Deferred\nOffering Costs**\n\n \n\nDeferred\noffering costs consist of legal, accounting, underwriting, and other direct costs incurred in connection with the Company’s ATM\nfinancing activities. These costs are capitalized as incurred and recognized as a reduction of additional paid-in capital in the consolidated\nstatements of stockholders’ equity when shares are issued. At March 31, 2026 and December 31, 2025, the Company had approximately\n$55,000 and $88,000, respectively, of deferred offering costs related to the ATM. At March 31, 2026, stock issuances of up to $13,905,453\nremained available under the ATM, subject to certain limits that may vary from time to time. If the Company terminates the ATM or deems\nit probable that the full amount available will not be utilized, the related deferred offering costs will be expensed and recognized\nin general and administrative expenses in the condensed consolidated statements of operations. During the three months ended March 31,\n2026, the Company expensed approximately $33,000 of deferred offering costs.\n\n** **\n\n**Stock-based\nCompensation**\n\n \n\nStock-based\nawards have been accounted for as required by ASC 718 *Compensation - Stock Compensation*. Under ASC 718, awards are valued at fair\nvalue on the date of grant, and that fair value is recognized over the requisite service period. Forfeitures are accounted for as they\noccur.\n\n** **\n\n10\n\n \n\n** **\n\n**New\nAccounting Pronouncements Not Yet Adopted**\n\n \n\nIn\nNovember 2024, the FASB issued ASU 2024-03, *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic\n220-40): Disaggregation of Income Statement Expenses*, requiring public business entities to provide disaggregated disclosures of\nrelevant income statement expenses. The amendments aim to improve financial reporting by enhancing transparency in the notes to financial\nstatements, specifically regarding expense categories. The amendments in this update are effective for annual reporting periods beginning\nafter December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is assessing the effect of this\nupdate on its consolidated financial statements and related disclosures.\n\n \n\n**Note\n4. Commitments and Contingencies**\n\n \n\n**General**\n\n \n\nThe\nCompany has entered into, and expects to enter into from time to time in the future, license agreements, strategic alliance agreements,\nassignment agreements, research service agreements, and similar agreements related to the advancement of its product candidates and research\nand development efforts. Significant agreements (collectively, the “License, Strategic Alliance, and Research Agreements”)\nare described in detail in the Company’s 2025 Form 10-K. While specific amounts will fluctuate from quarter to quarter based on\nclinical trials progress, advancement and completion of research studies and manufacturing projects, and other factors, the Company believes\nits overall activities regarding License, Strategic Alliance, and Research Agreements are materially consistent with those described\nin the 2025 Form 10-K, as supplemented by the discussion in the following paragraph.\n\n \n\nIn\naddition to the specific agreements described in the 2025 Form 10-K, the Company has entered into, and will in the future enter into,\nother research and service provider agreements for the advancement of its product candidates and research and development efforts. The\nCompany expects to pay additional amounts in future periods in connection with existing and future research and service provider agreements.\n\n \n\nSet\nforth below are the approximate amounts expensed for License, Strategic Alliance, and Research Agreements during the three months ended\nMarch 31, 2026 and 2025, respectively. These expensed amounts are included under research and development expenses in the accompanying\ncondensed consolidated statements of operations.\n\n Schedule of Research and Development\n\n  \n2026  \n2025 \n\n  \n\n**Three Months Ended**\n\n**March 31,**\n \n\n  \n2026  \n2025 \n\nAmount Expensed for License, Strategic Alliance, and Research Agreements \n$503,000  \n$1,181,000 \n\n \n\n11\n\n \n\n \n\nSet\nforth below at March 31, 2026 and December 31, 2025, respectively, are (1) the approximate amounts accrued and payable under License,\nStrategic Alliance, and Research Agreements, and (2) the approximate amount of prepaid expenses and other current assets under License,\nStrategic Alliance, and Research Agreements. These amounts are included in the accompanying condensed consolidated balance sheets.\n\n Schedule of Accounts Payable and Accrued Liabilities\n\n  \nMarch 31,  \nDecember 31, \n\n  \n2026  \n2025 \n\n  \n   \n  \n\nAmount accrued and payable under License, Strategic Alliance, and Research Agreements \n$919,000  \n$1,360,000 \n\n  \n    \n   \n\nPrepaid expenses and other current assets under License, Strategic Alliance, and Research Agreements \n$298,000  \n$220,000 \n\n \n\n**Actuate\nTherapeutics**\n\n \n\nIn\nMay 2021, the Company entered into a Collaboration Agreement with Actuate Therapeutics, Inc. (“Actuate”), a clinical stage\nprivate biopharmaceutical company focused on the development of compounds for use in the treatment of cancer, and inflammatory diseases\nleading to fibrosis. Pursuant to the agreement, the Company and Actuate have collaborated on utilization of the Company’s RADR®\nplatform to develop novel biomarker derived signatures for use with one of Actuate’s product candidates. As part of the collaboration,\nthe Company received 25,000 restricted shares of Actuate stock, subject to meeting certain conditions of the collaboration, as well as\nthe potential to receive additional Actuate stock if results from the collaboration are utilized in future development efforts. In 2023,\nthe term of the Collaboration Agreement was extended until March 31, 2024. Certain affiliates of Bios Partners beneficially own greater\nthan 5% of the Company’s common stock and also hold substantial beneficial ownership interests in Actuate. Through March 31, 2026,\nno revenues have been recognized under the Collaboration Agreement.\n\n \n\nIn\nAugust 2024, Actuate announced the closing of its initial public offering (“IPO”), which also included a reverse stock split.\nFollowing the reverse stock split and the IPO, the Company holds 13,889 shares of common stock, which can be sold by the Company without\nrestriction in accordance with Rule 144 of the Securities Act of 1933. At March 31, 2026 and December 31, 2025, the Actuate common stock\nheld by the Company had a fair value of approximately $38,000 and $85,000, respectively, which were included in marketable securities\non the Company’s condensed consolidated balance sheets.\n\n** **\n\n12\n\n \n\n** **\n\n**Note\n5. Leases**\n\n \n\nThe\nfollowing provides balance sheet information related to leases as of March 31, 2026 and December 31, 2025:\n\n Schedule of Balance Sheet Information Related to Leases \n\n  \nMarch 31,  \nDecember 31, \n\n  \n2026  \n2025 \n\nAssets \n    \n   \n\nOperating lease, right-of-use asset, net \n$56,868  \n$75,595 \n\nLiabilities \n    \n   \n\nCurrent portion of operating lease liabilities \n$59,076  \n$78,539 \n\n \n\nAt\nMarch 31, 2026, the future estimated minimum lease payments under non-cancelable operating leases are as follows:\n\n Schedule of Future Estimated Minimum Lease Payments Under Non-cancelable Operating Leases \n\n  \n   \n\n2026 (remaining nine months) \n$60,750 \n\nLess amount representing interest \n (1,674)\n\nPresent value of future minimum lease payments \n 59,076 \n\nLess current portion of operating lease liabilities \n (59,076)\n\nOperating lease liabilities, net of current portion \n$- \n\n \n\nAt\nMarch 31, 2026 and December 31, 2025, the Company has a non-cancelable operating lease for office space in Atlanta, Georgia that requires\nmonthly payments of $6,750 through December 31, 2026. The lease is subject to automatic renewal on a month-to-month basis unless the\nCompany provides three-months written notice to the landlord. The exercise of lease renewal options is at the Company’s sole discretion\nand is assessed as to whether to include any renewals in the lease term at inception.\n\n \n\nThe\nfollowing table provides a reconciliation for the Company’s right of use assets and lease liabilities:\n\nSchedule of Reconciliation of Right-of-Use Assets and lease Liabilities \n\n  \nOperating  \nOperating \n\n  \nRight-of- Use  \nLease \n\n  \nAssets  \nLiabilities \n\nBalance at December 31, 2025 \n$75,595  \n$78,539 \n\nAmortizations and reductions \n (18,727) \n (19,463)\n\nBalance at March 31, 2026 \n$56,868  \n$59,076 \n\n \n\n13\n\n \n\n \n\nOther\nsupplemental information related to operating leases is as follows:\n\nSchedule of Other Supplemental Information Related to Operating Leases \n\n  \n2026  \n2025 \n\n  \nAs of March 31, \n\n  \n2026  \n2025 \n\nWeighted average remaining term of operating leases (in years) \n 0.75  \n 1.09 \n\nWeighted average discount rate of operating leases \n 6.75% \n 9.50%\n\n \n\nThe\nCompany also leases office space in Dallas, Texas under two leases. One lease is month-to-month, while the other has a contractual term\nof one year and ends November 30, 2026. The Company also leases space for material storage and handling under a one-year1\nlease that continues through September 2026. The storage lease\nis cancelable with 45-days’ written notice. Leases with contractual periods of twelve months or less are accounted for under the\nshort-term lease measurement and recognition exemption allowed for by ASC 842. Rent expense is recorded as incurred for these leases.\n\n \n\nThe\ncomponents of lease expense were approximately as follows for the three months ended March 31, 2026 and 2025:\n\n Schedule of Lease Expense\n\n  \n2026  \n2025 \n\n  \nThree Months Ended \n\n  \nMarch 31, \n\n  \n2026  \n2025 \n\nOperating lease cost \n$19,600  \n$53,000 \n\nShort-term lease cost \n 22,400  \n 4,800 \n\nLease expense \n$42,000  \n$57,800 \n\n \n\nDuring\nthe three months ended March 31, 2026 and 2025, cash used in operating activities associated with operating leases was approximately\n$20,000 and $54,000, respectively.\n\n** **\n\n**Note\n6. Stockholders’ Equity**\n\n** **\n\n**Common\nStock**\n\n** **\n\nAs\nof March 31, 2026 and December 31, 2025, the Company had 25,000,000 authorized shares of common stock, of which 11,254,697 shares were\nissued and outstanding.\n\n \n\nDuring\nthe three months ended March 31, 2026, 10,000 shares of restricted common stock issued to a service provider in December 2025 vested,\nresulting in $38,800 of expense.\n\n \n\n14\n\n \n\n \n\n**Options**\n\n \n\nA\nsummary of stock option activity under the Plan, during the three months ended March 31, 2026 is presented below:\n\nSchedule\nof Stock Option Activity \n\n  \nOptions Outstanding \n\n  \n\nNumber of\n\nShares\n  \n\nWeighted-\n\nAverage\n\nExercise\n\nPrice Per\n\nShare\n \n\nOutstanding December 31, 2025 \n 1,296,126  \n$5.58 \n\nGranted \n 228,070  \n 3.49 \n\nCancelled or expired \n (22,161) \n 7.91 \n\nOutstanding March 31, 2026 \n 1,502,035  \n$5.23 \n\n \n\nThe\nweighted average remaining contractual term of options outstanding and exercisable at March 31, 2026 is 5.80 years and 4.74 years, respectively.\nOptions were exercisable for 1,166,262 shares of common stock at March 31, 2026 at a weighted average exercise price of $5.71. The intrinsic\nvalue of options outstanding and exercisable at March 31, 2026 was approximately $155,000.\n\n \n\nStock-based\ncompensation relating to stock options was as follows for the three months ended March 31, 2026 and 2025:\n\n Schedule of Stock-based Compensation\n\n  \n2026  \n2025 \n\n  \nThree Months Ended \n\n  \nMarch 31, \n\n  \n2026  \n2025 \n\nGeneral and administrative \n$165,476  \n$73,753 \n\nResearch and development \n 97,439  \n 73,997 \n\nTotal stock-based compensation \n$262,915  \n$147,750 \n\n \n\n**Note\n7. Fair Value Measurements**\n\n \n\nWe\ndetermine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use\nof observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would\nbe received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement\ndate. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous\nmarket for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions\nthat market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the\nhierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes\nthe inputs into three levels that may be used to measure fair value:\n\n \n\nLevel\n1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.\n\n \n\nLevel\n2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability,\neither directly or indirectly through market corroboration, for substantially the full term of the financial instrument.\n\n \n\nLevel\n3 - Inputs are unobservable inputs based on our assumptions.\n\n \n\n**Financial\nAssets**\n\n \n\nWhen\navailable, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to\nvalue our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker\nreports that utilize quoted market prices for comparable instruments. As of March 31, 2026 our U.S. treasury bills were valued through\nuse of quoted prices for comparable instruments in active markets and are classified as Level 2, and our money markets, common stock\nand mutual funds were valued using quoted prices in active markets for identical assets and are classified as Level 1.\n\n \n\n15\n\n \n\n \n\nBased\non our valuation of our marketable securities, we concluded that they are classified in either Level 1 or Level 2, and we have no financial\nassets measured using Level 3 inputs. The following table presents information about our assets that are measured at fair value on a\nrecurring basis using the above input categories.\n\n Schedule of Assets are Measured at Fair Value on Recurring Basis\n\n  \n   \n   \n   \n  \n\n  \nFair Value Measurements as of March 31, 2026 \n\nDescription \nTotal  \nLevel 1  \nLevel 2  \nLevel 3 \n\nUnited States treasury bills \n$1,793,547  \n$-  \n$1,793,547  \n$    - \n\nMoney markets \n 422,953  \n 422,953  \n -  \n - \n\nMutual funds – fixed income \n 882,672  \n 882,672  \n -  \n - \n\nMutual funds – alternative investments \n 484,329  \n 484,329  \n -  \n - \n\nCommon stock \n 38,056  \n 38,056  \n -  \n - \n\nFair\nvalue recurring basis \n$3,621,557  \n$1,828,010  \n$1,793,547  \n$- \n\n  \n    \n    \n    \n   \n\nIncluded in cash and cash equivalents \n$2,216,500  \n    \n    \n   \n\nIncluded in marketable securities \n$1,405,057  \n    \n    \n   \n\n \n\n**Note\n8. Loss Per Share**\n\n \n\nBasic\nloss per share is derived by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock\noutstanding during each period. Diluted loss per share includes the effect, if any, from the potential exercise or conversion of securities,\nsuch as warrants and stock options, which would result in the issuance of incremental shares of common stock unless such effect is anti-dilutive.\nIn calculating the basic and diluted net loss per share applicable to common stockholders, the weighted average number of shares remained\nthe same for both calculations due to the fact that when a net loss exists, dilutive shares are not included in the calculation. Potentially\ndilutive securities outstanding that have been excluded from diluted loss per share due to being anti-dilutive include the following:\n\n Schedule\nof Anti-dilutive Securities Outstanding Diluted Loss Per Share\n\n  \n2026  \n2025 \n\n  \nOutstanding at March 31, \n\n  \n2026  \n2025 \n\nWarrants \n -  \n 70,000 \n\nStock options \n 1,502,035  \n 1,242,378 \n\nAnti-dilutive securities \n 1,502,035  \n 1,312,378 \n\n \n\n**Note\n9. Segment Reporting**\n\n** **\n\nThe\nCompany operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive\nofficer, who reviews financial information presented on a condensed consolidated basis. The CODM uses expected research and development\nstudy and material costs; cash, cash equivalents and marketable securities balances; operating losses; and budget projections to assess\nfinancial performance and allocate resources.\n\n \n\nCash,\ncash equivalents and marketable securities were as follows at March 31, 2026 and December 31, 2025:\n\n Schedule\nof Segment Reporting Information\n\n \nMarch 31, 2026  \nDecember 31, 2025 \n\nCash \n$2,384,850  \n$2,883,305 \n\nCash equivalents \n 2,532,946  \n 1,539,533 \n\nMarketable securities \n 1,405,057  \n 5,696,386 \n\n \n\nResearch\nand development study and material costs were as follows during the three months ended March 31, 2026 and 2025:\n\n \n\n  \n\nThree Months Ended March 31,\n\n2026\n  \n\nThree Months Ended March 31,\n\n2025\n \n\nResearch and development studies \n$769,959  \n$2,063,736 \n\nResearch and development materials \n 34,444  \n 62,515 \n\nResearch\nand development costs \n$804,403  \n$2,126,251 \n\n \n\nThese\nfinancial metrics are used by the CODM to make key operating decisions, such as which research and development studies to commence, extend\nor discontinue. See the condensed consolidated balance sheets and statements of operations as of March 31, 2026 and December 31, 2025,\nas well as the condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025.\n\n \n\n**Note\n10. Subsequent Events**\n\n** **\n\nOn\nMay 12, 2026, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with institutional investors,\npursuant to which the Company agreed to issue and sell to such investors in a registered direct offering (i) 1,454,175 shares common\nstock of the Company, at an offering price of $2.06 per share, and (ii) pre-funded warrants to purchase up to 681,748 shares of common\nstock (the “Pre-Funded Warrants”) in lieu of the Common Shares, at an offering price of $2.0599 (such registered direct offering,\nthe “Offering”). The Offering closed on May 14, 2026, and the Company received gross proceeds of approximately $4.4 million\nfrom the Offering, before deducting Offering expenses payable by the Company, including the fees of the placement agent for the Offering.\nIn addition, in a concurrent private placement, the Company agreed to issue to such investors warrants to purchase up to 2,135,923 shares\nof common stock, at an exercise price of $2.27 per share.\n\n \n\n16"}