Full Press Release Details
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED FINANCIAL STATEMENTS
For the Three and Six Months ended June 30, 2025
(Unaudited and Expressed in U.S. Dollars)
EUPRAXIA PHARMACEUTICALS INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars)
| CONSOLIDATED BALANCE SHEETS | 2 | |||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | 3 | |||
| CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY (DEFICIT) | 4-5 | |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | 6 | |||
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 7-26 |
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited and Expressed in U.S.
Dollars, except share amounts)
| June 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 19,765,644 | $ | 33,101,294 | ||||
| Prepaid expenses and deposits | 2,929,516 | 1,106,512 | ||||||
| Amounts receivable (Note 4) | 134,607 | 228,872 | ||||||
| Total current assets | 22,829,767 | 34,436,678 | ||||||
| Non-current assets | ||||||||
| Prepaid expenses | 77,842 | 80,761 | ||||||
| Property and equipment, net (Note 5) | 655,578 | 357,893 | ||||||
| Right-of-use asset, net (Note 6) | 32,747 | 67,023 | ||||||
| Total assets | $ | 23,595,934 | $ | 34,942,355 | ||||
| LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT) | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities (Note 7) | $ | 2,583,316 | $ | 3,031,527 | ||||
| Lease liability current portion (Note 9) | 35,065 | 71,859 | ||||||
| Total liabilities | 2,618,381 | 3,103,386 | ||||||
| Shareholders equity | ||||||||
| Preferred shares, without par value; unlimited shares authorized; issued and outstanding: 8,905,638 (December 31, 2024: 8,905,638 (Notes 12(c)) | 31,705,219 | 31,705,219 | ||||||
| Common shares, without par value; unlimited shares authorized; issued and outstanding: 35,959,568 (December 31, 2024 - 35,641,603 (Note 12(b)) | 117,116,782 | 116,360,066 | ||||||
| Additional paid-in capital (Notes 12(b), 12(d)(iii) and 12(e)) | 23,027,544 | 20,503,904 | ||||||
| Deficit | (146,507,355 | ) | (131,003,831 | ) | ||||
| Accumulated other comprehensive loss | (2,787,369 | ) | (4,160,555 | ) | ||||
| Equity attributable to the owners of the Company | 22,554,821 | 33,404,803 | ||||||
| Non-controlling interest | (1,577,268 | ) | (1,565,834 | ) | ||||
| Total shareholders equity | 20,977,553 | 31,838,969 | ||||||
| Total liabilities and shareholders equity | $ | 23,595,934 | $ | 34,942,355 |
Nature of business and going concern (Note 1)
Commitments (Note 15)
Subsequent event (Note 20)
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited and Expressed in U.S. Dollars, except share amounts)
| Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | |||||||||||||
| Expenses | ||||||||||||||||
| General and administrative (Note 13) | $ | 3,067,484 | $ | 2,583,126 | $ | 6,341,878 | $ | 5,101,149 | ||||||||
| Research and development (Note 14) | 5,196,615 | 3,971,975 | 9,046,441 | 8,147,428 | ||||||||||||
| Total expenses | 8,264,099 | 6,555,101 | 15,388,319 | 13,248,577 | ||||||||||||
| Other income/(expenses) | ||||||||||||||||
| Interest income | 255,958 | 401,226 | 565,410 | 637,595 | ||||||||||||
| Interest expense (Note 18) | (281,845 | ) | (602,985 | ) | ||||||||||||
| Gain (loss) on sale of equipment (Note 5) | 11,368 | (1,075 | ) | 11,368 | ||||||||||||
| Foreign exchange gain (loss) | (733,961 | ) | (75,041 | ) | (682,599 | ) | (218,769 | ) | ||||||||
| Change in fair value of financial instruments (Note 11) | 430,499 | 1,200,541 | ||||||||||||||
| Total other income/(expense) | (478,003 | ) | 486,207 | (118,264 | ) | 1,027,750 | ||||||||||
| Net loss before tax expense | (8,742,102 | ) | (6,068,894 | ) | (15,506,583 | ) | (12,220,827 | ) | ||||||||
| Tax recovery/(expense) | (5,581 | ) | 5,000 | (8,375 | ) | |||||||||||
| Net loss for the period | $ | (8,747,683 | ) | $ | (6,063,894 | ) | $ | (15,514,958 | ) | $ | (12,220,827 | ) | ||||
| Loss attributable to: | ||||||||||||||||
| Owners of the Company | $ | (8,740,916 | ) | $ | (6,007,216 | ) | $ | (15,503,524 | ) | $ | (12,050,254 | ) | ||||
| Non-controlling interest | (6,767 | ) | (56,678 | ) | (11,434 | ) | (170,573 | ) | ||||||||
| (8,747,683 | ) | (6,063,894 | ) | (15,514,958 | ) | (12,220,827 | ) | |||||||||
| Foreign currency translation adjustment | 1,335,022 | (180,206 | ) | 1,373,186 | (212,598 | ) | ||||||||||
| Comprehensive loss for the period | $ | (7,412,661 | ) | $ | (6,244,100 | ) | $ | (14,141,772 | ) | $ | (12,433,425 | ) | ||||
| Loss per share basic and diluted (Owners of the Company (Note 12(g)) | $ | (0.26 | ) | $ | (0.17 | ) | $ | (0.47 | ) | $ | (0.37 | ) | ||||
| Weighted average shares outstanding basic and diluted | 35,912,373 | 35,622,553 | 35,799,939 | 32,217,597 |
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT)
(Unaudited and Expressed in U.S. Dollars, except share amounts)
| Preferred shares | Amount | Common shares | Amount | Additional paid-in capital | Deficit | Accumulated other comprehensive loss | Non-controlling interest | Total-Shareholders' Equity | ||||||||||||||||||||||||||||
| Balance, December 31, 2023 | - | $ | - | 27,282,165 | $ | 92,913,585 | $ | 17,510,469 | $ | (105,501,295 | ) | $ | (2,706,552 | ) | $ | (1,323,881 | ) | $ | 892,326 | |||||||||||||||||
| Non-brokered private placement, net of transaction costs (Note 12(b)(iii)) | - | - | 8,260,435 | 22,853,391 | - | - | - | - | 22,853,391 | |||||||||||||||||||||||||||
| Share-based payments (Note 12(d)(iii)) | - | - | - | - | 213,130 | - | - | - | 213,130 | |||||||||||||||||||||||||||
| Redemption of warrants (Notes 12(b)(i) and 12(e)) | - | - | 79,943 | 551,246 | (214,062 | ) | - | - | - | 337,184 | ||||||||||||||||||||||||||
| Redemption of options (Notes 12(b)(ii) and 12(d)) | - | - | 10 | 23 | (9 | ) | - | - | - | 14 | ||||||||||||||||||||||||||
| Net loss for the period | - | - | - | - | - | (6,043,038 | ) | - | (113,895 | ) | (6,156,933 | ) | ||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | (32,392 | ) | - | (32,392 | ) | |||||||||||||||||||||||||
| Balance, March 31, 2024 | - | $ | - | 35,622,553 | $ | 116,318,245 | $ | 17,509,528 | $ | (111,544,333 | ) | $ | (2,738,944 | ) | $ | (1,437,776 | ) | $ | 18,106,720 | |||||||||||||||||
| Share-based payments (Note 12(d)(iii)) | - | - | - | - | 1,474,920 | - | - | - | 1,474,920 | |||||||||||||||||||||||||||
| Net loss for the period | - | - | - | - | - | (6,007,216 | ) | - | (56,678 | ) | (6,063,894 | ) | ||||||||||||||||||||||||
| Foreign currency translation adjustment | - | - | - | - | - | - | (180,206 | ) | - | (180,206 | ) | |||||||||||||||||||||||||
| Balance, June 30, 2024 | - | $ | - | 35,622,553 | $ | 116,318,245 | $ | 18,984,448 | $ | (117,551,549 | ) | $ | (2,919,150 | ) | $ | (1,494,454 | ) | $ | 13,337,540 |
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
and Expressed in U.S. Dollars, except share amounts)
| Preferred shares | Amount | Common shares | Amount | Additional paid-in capital | Deficit | Accumulated other comprehensive loss | Non-controlling interest | Total-Shareholders Equity | ||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 8,905,638 | $ | 31,705,219 | 35,641,603 | $ | 116,360,066 | $ | 20,503,904 | $ | (131,003,831 | ) | $ | (4,160,555 | ) | $ | (1,565,834 | ) | $ | 31,838,969 | |||||||||||||||||
| Share-based payments (Note 12(d)(iii)) | 1,493,407 | 1,493,407 | ||||||||||||||||||||||||||||||||||
| Redemption of warrants (Notes 12(b)(iv) and 12(e)) | 200,000 | 458,047 | (41,641 | ) | 416,406 | |||||||||||||||||||||||||||||||
| Redemption of options (Notes 12(b)(v) and 12(d)(iii)) | 7,750 | 22,175 | (8,658 | ) | 13,517 | |||||||||||||||||||||||||||||||
| Net loss for the period | (6,762,608 | ) | (4,667 | ) | (6,767,275 | ) | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 38,164 | 38,164 | ||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | 8,905,638 | $ | 31,705,219 | 35,849,353 | $ | 116,840,288 | $ | 21,947,012 | $ | (137,766,439 | ) | $ | (4,122,391 | ) | $ | (1,570,501 | ) | $ | 27,033,188 | |||||||||||||||||
| Share-based payments (Note 12(d)) | 1,117,248 | 1,117,248 | ||||||||||||||||||||||||||||||||||
| Redemption of warrants (Notes 12(b)(iv) and 12(e)) | 100,000 | 239,200 | (21,745 | ) | 217,455 | |||||||||||||||||||||||||||||||
| Redemption of options (Notes 12(b)(v) and 12(d)(iii)) | 10,215 | 37,294 | (14,971 | ) | 22,323 | |||||||||||||||||||||||||||||||
| Net loss for the period | (8,740,916 | ) | (6,767 | ) | (8,747,683 | ) | ||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 1,335,022 | 1,335,022 | ||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | 8,905,638 | $ | 31,705,219 | 35,959,568 | $ | 117,116,782 | $ | 23,027,544 | $ | (146,507,355 | ) | $ | (2,787,369 | ) | $ | (1,577,268 | ) | $ | 20,977,553 |
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited and Expressed
| Six months ended June 30, 2025 | Six months ended June 30, 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (15,514,958 | ) | $ | (12,220,827 | ) | ||
| Cash flows from operating activities | ||||||||
| Accrued interest on convertible debt, net of interest paid (Note 11) | 241,597 | |||||||
| Depreciation (Note 5 and 6) | 101,918 | 79,448 | ||||||
| Interest lease liability | 2,054 | 3,337 | ||||||
| Loss (gain) on sale of equipment (Note 5) | 1,075 | (11,368 | ) | |||||
| Share-based payments (Note 12(d)(iii) | 2,610,655 | 1,688,050 | ||||||
| Change in fair value of financial instruments (Note 11) Lease payments (Note 9) | (41,488 | ) | (1,200,541 (32,291 | ) ) | ||||
| Unrealized foreign exchange (gain) loss | 705,643 | 214,430 | ||||||
| Changes in operating assets and liabilities | ||||||||
| Accounts payable and accrued liabilities Prepaid expenses | (554,159 (1,733,161 | ) ) | (1,865,706 (759,553 | ) ) | ||||
| Amounts receivable | 104,096 | 30,872 | ||||||
| Cash used in operating activities | (14,318,325 | ) | (13,832,552 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Acquisition of equipment (Note 5) | (335,269 | ) | (17,637 | ) | ||||
| Proceeds from sale of equipment | 28,510 | |||||||
| Cash provided by (used in) investing activities | (335,269 | ) | 10,873 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Overnight marketed public offering (net of transaction costs) (Note 12(b)(vi)) | 22,853,391 | |||||||
| Redemption of warrants (Note 12(e)) Redemption of options (Note 12 (d)(iii)) | 633,861 35,840 | 337,184 14 | ||||||
| Repayment of loans (Note 8) | (41,389 | ) | ||||||
| Repayment of convertible debt (Note 11) | (4,494,795 | ) | ||||||
| Cash provided by financing activities | 669,701 | 18,654,405 | ||||||
| Increase (decrease) in cash and cash equivalents | (13,983,893 | ) | 4,832,726 | |||||
| Foreign exchange effect on cash and cash equivalents | 648,243 | (858,377 | ) | |||||
| Cash, beginning of period | 33,101,294 | 19,341,756 | ||||||
| Cash, end of period | $ | 19,765,644 | $ | 23,316,105 |
Supplemental disclosure with respect to cash flows (Note 19)
The accompanying notes are an integral part of these consolidated financial statements.
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars, except share amounts)
Eupraxia Pharmaceuticals Inc. (the Company ) was incorporated under the laws of the province of Alberta on May 12, 2011, under
the name Plaza Capital Partners Inc. On May 11, 2012, the Company changed its name to Eupraxia Pharmaceuticals Inc. and continued from the province of Alberta to the province of British Columbia.
On October 10, 2012, Eupraxia Holdings, Inc. ( Holdings ) was incorporated under the laws of the State of Delaware, USA. On
November 16, 2012, Holdings was registered as an extra-provincial corporation under the laws of the province of British Columbia, Canada. On October 10, 2012, Eupraxia Pharmaceuticals USA, LLC ( Eupraxia USA ) was incorporated under
the laws of the State of Delaware. On November 16, 2012, Eupraxia USA was registered as an extra-provincial corporation under the laws of the province of British Columbia. On January 7, 2021, Eupraxia Pharma, Inc. ( Eupraxia
Pharma ) was incorporated under the laws of the State of Delaware. On July 4, 2022, Eupraxia Pharmaceuticals Australia Pty Ltd. ( Eupraxia Australia ) was incorporated under the laws of the state of Victoria, Australia. On
May 17, 2023, Eupraxia Pharma USA Inc. ( Eupraxia Pharma USA ) was incorporated under the laws of the State of Delaware.
March 9, 2021, the Company completed its initial public offering on the Toronto Stock Exchange ( TSX ) and began trading under the symbol EPRX . On April 5, 2024, the Company began trading on the Nasdaq Capital Market
under the symbol EPRX .
The Company is a clinical stage biotechnology company leveraging its proprietary Diffusphere technology to optimize drug delivery for applications with significant unmet medical need. The address of the Company s corporate office and principal place of business is 201- 2067 Cadboro
Bay Road, Victoria, British Columbia, Canada.
These unaudited interim consolidated financial statements of the Company have been prepared
on a going concern basis with the assumption that the Company will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. At June 30, 2025, the Company had cash of $19,765,644. The Company
has not yet generated revenue from operations. The Company incurred a net loss of $15,514,958 during the six months ended June 30, 2025, and as of that date, the Company s accumulated deficit was $146,507,355. As the Company is in the
research and development stage, the recoverability of the costs incurred to date is dependent upon the ability of the Company to obtain the necessary funding to complete the research and development of its projects and upon future commercialization
or proceeds from the monetization of research activities.
The Company will periodically have to raise funds to continue operations and
recently raised $31,705,219 through a non-brokered private placement of 8,905,638 convertible preferred shares on October 31, 2024. Although it has been successful in doing so in the past, there is no
assurance it will be able to do so in the future, especially with the ongoing geopolitical uncertainty affecting the global capital markets. The Company is active in its pursuit of additional funding through potential partnering and other strategic
activities as well as grants to fund future research and development activities, and additional equity financing.
The continued operations
of the Company are dependent on its ability to generate future cash flows or obtain additional funding. There is a risk that in the future, additional financing will not be available on a timely basis or on terms acceptable to the Company. These
events and conditions may cast substantial doubt about the Company s ability to continue as a going concern. These unaudited interim consolidated financial statements do not include any adjustments to the amounts and classification of assets
and liabilities that might be necessary should the Company be unable to continue in business.
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars, except share amounts)
These unaudited interim consolidated financial statements are presented in U.S. dollars and have been prepared in accordance with United States
generally accepted accounting principles ( U.S. GAAP ). These unaudited interim consolidated financial statements include the accounts of the Company and the accounts of its subsidiaries. All significant intercompany transactions and
balances have been eliminated upon consolidation.
The accompanying unaudited interim consolidated financial statements have been prepared
in accordance with U.S. GAAP and pursuant to the rules and regulations of the United States Securities and Exchange Commission ( SEC ) for interim financial information. Accordingly, these consolidated financial statements do not include
all the information and footnotes required for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2024 included in the
Company s 2024 40-F filed with SEC and on SEDAR+ on March 21, 2025.
interim consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The results of
operations for the six months ended June 30, 2025, and 2024 are not necessarily indicative of results that can be expected for a full year. These unaudited interim consolidated financial statements follow the same significant accounting
policies as those described in the notes to the audited consolidated financial statements of the Company included in the Company s 2024 Form 40-F for the year ended December 31, 2024 filed with SEC
and on SEDAR+ on March 21, 2025.
The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to the Company or that there was no
material impact or no material impact is expected in the condensed consolidated financial statements as a result of future adoption.
| June 30, 2025 | December 31, 2024 | |||||||
| GST/HST recoverable | $ | 134,607 | $ | 82,097 | ||||
| Other refundable tax credits (1) | 146,775 | |||||||
| Total | $ | 134,607 | $ | 228,872 |
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars, except share amounts)
Property and equipment consisted of the following:
| Computers | Office furniture and equipment | Leasehold Improvements | Lab Equipment | Total | ||||||||||||||||
| Cost | ||||||||||||||||||||
| As at January 1, 2024 | $ | 85,625 | $ | 67,996 | $ | 128,767 | $ | 525,264 | $ | 807,652 | ||||||||||
| Additions | 13,953 | 5,701 | 104,819 | 124,473 | ||||||||||||||||
| Disposals | (13,219 | ) | (7,890 | ) | (15,473 | ) | (36,582 | ) | ||||||||||||
| Foreign currency adjustments | (7,122 | ) | (5,438 | ) | (10,408 | ) | (54,992 | ) | (77,960 | ) | ||||||||||
| As at December 31, 2024 | 79,237 | 60,369 | 118,359 | 559,618 | 817,583 | |||||||||||||||
| Additions | 63,008 | 1,118 | 271,143 | 335,269 | ||||||||||||||||
| Disposals | (1,192 | ) | (1,192 | ) | ||||||||||||||||
| Foreign currency adjustments | 5,507 | 3,296 | 6,473 | 40,475 | 55,751 | |||||||||||||||
| As at June 30, 2025 | 147,752 | 63,591 | 124,832 | 871,236 | 1,207,411 | |||||||||||||||
| Accumulated Depreciation | ||||||||||||||||||||
| As at January 1, 2024 | 56,181 | 49,667 | 115,816 | 176,401 | 398,065 | |||||||||||||||
| Depreciation | 12,668 | 6,349 | 8,148 | 86,867 | 114,032 | |||||||||||||||
| Disposals | (7,774 | ) | (5,698 | ) | (12,653 | ) | (26,125 | ) | ||||||||||||
| Foreign currency adjustments | (4,895 | ) | (4,058 | ) | (9,787 | ) | (7,542 | ) | (26,282 | ) | ||||||||||
| As at December 31, 2024 | 56,180 | 46,260 | 114,177 | 243,073 | 459,690 | |||||||||||||||
| Depreciation | 10,604 | 1,443 | 2,330 | 50,796 | 65,173 | |||||||||||||||
| Disposals | (117 | ) | (117 | ) | ||||||||||||||||
| Foreign currency adjustments | 3,312 | 2,569 | 6,320 | 14,886 | 27,087 | |||||||||||||||
| As at June 30, 2025 | 70,096 | 50,155 | 122,827 | 308,755 | 551,833 | |||||||||||||||
| Net Book Value | ||||||||||||||||||||
| As at December 31, 2024 | $ | 23,057 | $ | 14,109 | $ | 4,182 | $ | 316,545 | $ | 357,893 | ||||||||||
| As at June 30, 2025 | $ | 77,656 | $ | 13,436 | $ | 2,005 | $ | 562,481 | $ | 655,578 |
During the three months ended June 30, 2025 and 2024, depreciation expense of $36,554 and $24,162,
respectively, was recognized with $3,385 included in general and administrative and $33,169 included in research and development ($2,561 and $21,601 for general and administrative, and research and development in 2024, respectively). During the six
months ended June 30, 2025 and 2024, depreciation expense of $65,173 and $49,102, respectively, was recognized with $5,189 included in general and administrative and $59,984 included in research and development ($11,438 and $37,664 for general
and administrative, and research and development in 2024, respectively).
EUPRAXIA PHARMACEUTICALS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited and Expressed in U.S. Dollars, except share amounts)
On May 13, 2024, the Company extended the lease of the office space until November 30, 2025. The lease
extension increased the right-of-use asset by $78,580. The following table presents details of movement in the carrying value of the right-of-use asset:
| June 30, 2025 | December 31, 2024 | |||||||
| Balance, beginning | $ | 67,023 | $ | 46,660 | ||||
| Depreciation | (36,745 | ) | (57,687 | ) | ||||
| Lease extension | 78,580 | |||||||
| Foreign exchange | 2,469 | (530 | ) | |||||
| Balance, ending | $ | 32,747 | $ | 67,023 |
During the three months ended June 30, 2025 and 2024, depreciation expense of $18,877 and $17,868
respectively, was recognized with $6,637 included in general and administrative and $12,240 included in research and development in 2025 ($6,289 and $11,579 for general and administrative, and research and development in 2024, respectively). During
the six months ended June 30, 2025 and 2024, depreciation expense of $36,745 and $30,346 respectively, was recognized with $13,332 included in general and administrative and $23,413 included in research and development in 2025 ($10,730 and