| Schedule of reconciliation to the consolidated net income (loss) |
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Three months ended February 28, |
|
Nine months ended February 28, |
(in thousands, except for per share data) |
|
2026 |
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2025 |
|
2026 |
|
2025 |
Expenses(1): |
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General and administrative expense(2) |
|
$ |
1,561 |
|
$ |
1,334 |
|
$ |
4,890 |
|
$ |
4,785 |
Research and development(3) |
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|
4,298 |
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|
2,329 |
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|
10,652 |
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|
4,460 |
Return of clinical expenses |
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|
— |
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— |
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— |
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|
(24,985) |
Legal settlement loss |
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— |
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— |
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|
16,587 |
|
|
— |
Stock-based compensation expense |
|
|
444 |
|
|
340 |
|
|
807 |
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|
1,013 |
Total operating expenses |
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|
6,303 |
|
|
4,003 |
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32,936 |
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(14,727) |
Operating (loss) gain |
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(6,303) |
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(4,003) |
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(32,936) |
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|
14,727 |
Interest income |
|
|
15 |
|
|
173 |
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|
166 |
|
|
441 |
Interest on convertible notes |
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(614) |
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(1,143) |
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(1,934) |
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(3,469) |
Amortization of discount on convertible notes |
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— |
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(110) |
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— |
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(348) |
Standby equity purchase agreement commitment fee |
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— |
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— |
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(325) |
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|
— |
Issuance costs for private placement of shares and warrants through placement agent (Note 5) |
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(1,628) |
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— |
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(1,628) |
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|
— |
Legal settlement revaluation |
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|
3,842 |
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— |
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3,842 |
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— |
Loss on induced conversion |
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— |
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— |
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— |
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(1,180) |
Finance charges |
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(2) |
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(2) |
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(22) |
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(25) |
Gain on restructuring of payables |
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— |
|
|
327 |
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— |
|
|
407 |
Loss on derivatives |
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— |
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— |
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— |
|
|
(852) |
Segment net (loss) income |
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|
(4,690) |
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(4,758) |
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(32,837) |
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|
9,701 |
Reconciliation of profit or loss: |
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Adjustments or reconciling items |
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— |
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— |
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— |
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— |
Consolidated net (loss) income |
|
$ |
(4,690) |
|
$ |
(4,758) |
|
$ |
(32,837) |
|
$ |
9,701 |
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2) General and administrative expense for the three months ended February 28, 2026, and 2025 is net of approximately $0.1 million and $0.1 million, respectively, of stock-based compensation expense, and for the nine months ended February 28, 2026 and 2025 is net of approximately $0.3 million and $0.6 million, respectively, of stock-based compensation expense.
(3) Research and development expense for the three months ended February 28, 2026 and 2025 is net of $0.4 million and $0.2 million, respectively, of stock-based compensation expense, and for the nine months ended February 28, 2026 and 2025 is net of approximately $0.5 million and $0.4 million, respectively, of stock-based compensation expense. During the nine months ended February 28, 2025, research and development expense included the return of $25.0 million of clinical expenses in the settlement of a dispute with Amarex. See Note 9, Commitments and Contingencies – Legal Proceedings – Settlement of Amarex Dispute in the 2025 Form 10-K for additional discussion.
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