# EDGAR Filing Document

**Accession Number:** 0002030763
**File Stem:** 0001493152-26-024413
**Filing Date:** 2026-5
**Character Count:** 171465
**Document Hash:** 786d9bf2e6d3eba1bf56a1ea6785b6ef
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-024413.hdr.sgml**: 20260519

**ACCESSION NUMBER**: 0001493152-26-024413

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 81

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260519

**DATE AS OF CHANGE**: 20260519

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Wellgistics Health, Inc.
- **CENTRAL INDEX KEY:** 0002030763
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-DRUGS PROPRIETARIES & DRUGGISTS' SUNDRIES [5122]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 933264234
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42530
- **FILM NUMBER:** 26998616

**BUSINESS ADDRESS:**
- **STREET 1:** 3000 BAYPORT DRIVE SUITE 950
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33607
- **BUSINESS PHONE:** 1-843-302-1785

**MAIL ADDRESS:**
- **STREET 1:** 3000 BAYPORT DRIVE SUITE 950
- **CITY:** TAMPA
- **STATE:** FL
- **ZIP:** 33607

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Danam Health, Inc
- **DATE OF NAME CHANGE:** 20240717

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended March 31, 2026**

**Or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________ to ________**

**Commission file number: 001-42530**

**Wellgistics Health, Inc.**

**(Exact Name of Registrant As Specified In Its Charter)**

---

| | |
|:---|:---|
| **Delaware** | **93-3264234** |
| **(State or other jurisdiction of** | **(I.R.S. Employer** |
| **incorporation or organization)** | **Identification No.)** |

---

---

| | |
|:---|:---|
| **3000 Bayport Drive, Suite 950**<br> **Tampa, Florida** | **33607** |
| **(Address of Principal Executive Offices)** | **(ZIP Code)** |

---

**(844) 203-6092**

**(Registrant's telephone number, including area code)**

---

| |
|:---|
| **N/A** |
| **(Former name, former address and former fiscal year, if changed since last report)** |

---

**Securities to be registered under Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.0001 per share | WGRX | The Nasdaq Stock Market LLC<br> (The NASDAQ Capital Market) |

---

Indicate by check mark whether the registrant (1) has filed reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 19, 2026, there were 126,653,372 and 125,671,251 shares of the Company's common stock, par value $0.0001, issued and outstanding.

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [Part I. Financial Information](#sh_001) | [Part I. Financial Information](#sh_001) | 3 |
| Item 1. | [Financial Statements](#sh_002) | 3 |
|  | [Condensed Consolidated Balance Sheets as of March 31, 2026 (unaudited) and December 31, 2025](#sh_003) | 3 |
|  | [Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025 (unaudited)](#sh_004) | 4 |
|  | [Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2026 and 2025 (unaudited)](#sh_005) | 5 |
|  | [Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 (unaudited)](#sh_006) | 6 |
|  | [Notes to Condensed Consolidated Financial Statements (unaudited)](#sh_007) | 7 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#sq_001) | 27 |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#sq_002) | 34 |
| Item 4. | [Controls and Procedures](#sq_003) | 34 |
| [Part II. Other Information](#sq_004) | [Part II. Other Information](#sq_004) | 35 |
| Item 1 | [Legal Proceedings](#sq_005) | 35 |
| Item 1A | [Risk Factors](#sq_006) | 35 |
| Item 2 | [Unregistered Sales of Equity Securities and Use of Proceeds](#sq_007) | 35 |
| Item 3 | [Defaults Upon Senior Securities](#sq_008) | 35 |
| Item 4 | [Mine Safety Disclosures](#sq_009) | 35 |
| Item 5 | [Other Information](#sq_010) | 35 |
| Item 6 | [Exhibits](#sq_011) | 36 |
| [Signatures](#sq_012) |  | 39 |

---

In this Quarterly Report on Form 10-Q (this "Quarterly Report"), all references to "Wellgistics Health, Inc.," "Wellgistics Health," "we," "us," "our" or the "Company" mean Wellgistics Health, Inc., and its wholly-owned subsidiaries, except where it is made clear that the term means only Wellgistics Health, Inc. The Company's common stock, par value $0.0001 per share, is referred to as "common stock."

**PART I—FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**WELLGISTICS HEALTH, INC.**

**CONSOLDIATED BALANCE SHEETS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
|  | **(Unaudited)** | |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $51730 | $42571 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 992147 | 1137219 |
| &nbsp;&nbsp;&nbsp;Inventories, net | 1713599 | 1639426 |
| &nbsp;&nbsp;&nbsp;Due from related party | 4200 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 2761676 | 2819216 |
| Property, plant and equipment, net | 201514 | 229376 |
| Capitalized software | 2055456 | 1850358 |
| Operating lease, right-of-use-assets | 844400 | 966893 |
| Goodwill | 14193923 | 14193923 |
| Other intangible assets, net | 9985713 | 10314675 |
| Deposits | 85008 | 85008 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $30127690 | $30459449 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $11977377 | $11665135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, related party | 25500 | 25500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 4456342 | 6407722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties |  | 225000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible notes payable | 6567649 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of debt obligations, net of debt discount | 8604251 | 10887520 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities- current portion | 567748 | 569251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 32198867 | 29780128 |
| &nbsp;&nbsp;&nbsp;Notes payable | 12600000 | 12600000 |
| &nbsp;&nbsp;&nbsp;Operating lease liabilities | 391272 | 527122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $45190139 | $42907250 |
| Commitments and contingencies (Note 13) |  |  |
| Stockholders' equity (deficit): |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value, 500,000,000 shares authorized, 120,380,108 and 102,289,619 shares issued and 119,397,987 and 101,307,498 shares outstanding as of March 31, 2026 and December 31, 2025, respectively | 11940 | 10131 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 103699898 | 98573758 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (118774287) | (111031690) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | (15062449) | (12447801) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity (deficit) | $30127690 | $30459449 |

---

See the accompanying notes to the unaudited condensed consolidated financial statements

**WELLGISTICS HEALTH, INC.**

**CONSOLDIATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Net revenues | $1559563 | $10863443 |
| Cost of net revenues | 1389342 | 10170802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit (loss) | 170221 | 692641 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 4868935 | 31172920 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 960000 | 65217 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 356824 | 802872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 6185759 | 32041009 |
| Loss from operations | (6015538) | (31348368) |
| Other income/(expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (2072679) | (1094490) |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of vendor obligation | 259880 |  |
| &nbsp;&nbsp;&nbsp;Settlement fees | (13000) |  |
| &nbsp;&nbsp;&nbsp;Other income | 98740 | 11955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (1727059) | (1082535) |
| Net loss before income taxes | (7742597) | (32430903) |
| Provision for income taxes | - | - |
| Net loss | $(7742597) | $(32430903) |
| Weighted average common shares outstanding - basic and diluted | 104621250 | 51916787 |
| Net loss per common share - basic and diluted | $(0.07) | $(0.62) |

---

See the accompanying notes to the unaudited condensed consolidated financial statements

**WELLGISTICS HEALTH, INC.**

**CONSOLDIATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**(Unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Equity (Deficit)** |
| **Balance at December 31, 2024** | 51055508 | $5105 | $16486501 | $(9757160) | $6734446 |
| Common stock issued pursuant to public offering | 888889 | 89 | 3999911 |  | 4000000 |
| Common stock issued pursuant to consulting agreements | 152000 | 15 | 543505 |  | 543520 |
| Vested restricted stock granted to consultants | 986123 | 99 | 2875461 |  | 2875560 |
| Vested restricted stock granted to directors | 8362494 | 836 | 24277922 |  | 24278758 |
| Vested restricted stock granted to employees | 15000 | 2 | 75582 |  | 75584 |
| Offering costs |  |  | (1598196) |  | (1598196) |
| Net loss | - | - | - | (32430903) | (32430903) |
| **Balance at March 31, 2025** | 61460014 | $6146 | $46660685 | $(42188063) | $4478768 |
| **Balance at December 31, 2025** | 101307498 | $10131 | $98573758 | $(111031690) | $(12447801) |
| Common stock and warrants issued in settlement of accrued compensation | 10000000 | 1000 | 2588580 |  | 2589580 |
| Common stock issued in settlement of vendor obligation | 6466000 | 647 | 1355973 |  | 1356620 |
| Common stock issued as settlement and legal fees | 400000 | 40 | 51960 |  | 52000 |
| Common stock issued pursuant to consulting agreement | 1224489 | 122 | 514163 |  | 514285 |
| Issuance of placement agent warrants in connection with convertible notes |  |  | 416965 |  | 416965 |
| Vested restricted stock granted to employees |  |  | 169853 |  | 169853 |
| Vested restricted stock granted to consultants |  |  | 28646 |  | 28646 |
| Net loss | - | - | - | (7742597) | (7742597) |
| **Balance at March 31, 2026** | 119397987 | $11940 | $103699898 | $(118774287) | $(15062449) |

---

See the accompanying notes to the unaudited condensed consolidated financial statements

**WELLGISTICS HEALTH, INC.**

**CONSOLDIATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(7742597) | $(32430903) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Allowances for credit losses | 93698 | 76154 |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of vendor obligation | (259880) |  |
| &nbsp;&nbsp;&nbsp;Amortization of debt discount | 1485618 | 22107 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 1357764 | 27773421 |
| &nbsp;&nbsp;&nbsp;Depreciation | 27862 | 39807 |
| &nbsp;&nbsp;&nbsp;Amortization | 328962 | 763064 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred offering costs |  | 875385 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 51375 | (180098) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | (74173) | (214471) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses |  | (334785) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1472242 | 1876683 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other liabilities | 90060 | 474494 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, net | (14860) | (1307) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from / to related parties, net | (229200) | (87000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (3413129) | (1347449) |
| **Cash flows from investing activities:** |  |  |
| Investments in capitalized software | (205098) | (273133) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (205098) | (273133) |
| **Cash flows from financing activities:** |  |  |
| Proceeds from promissory note |  | 615000 |
| Repayment of promissory note | (36751) |  |
| Repayment of seller promissory note |  | (68570) |
| Proceeds from revolving line of credit |  | (310561) |
| Repayment of revolving line of credit | (143525) |  |
| Proceeds from convertible notes | 6002500 |  |
| Proceeds from Merchant cash advance |  | 471158 |
| Repayment of merchant cash advance | (90281) |  |
| Repayment of term loan | (2104557) |  |
| Proceeds from common stock issued pursuant to public offering |  | 4000000 |
| Offering costs | - | (1598196) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 3627386 | 3108831 |
| **Net change in cash and cash equivalents** | 9159 | 1488249 |
| Cash and cash equivalents at beginning of period | 42571 | 1028336 |
| Cash and cash equivalents at end of period | $51730 | $2516585 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid for income taxes | $- | $- |
| Cash paid for interest | $132751 | $616072 |
| **Supplemental disclosure of non-cash investing and financing activities:** |  |  |
| Issuance of common stock for prepaid consulting services | $- | $334783 |
| Issuance of common stock and warrants in settlement of accrued compensation | $2589580 | $- |
| Issuance of common stock in settlement of vendor and debt obligation | $1356620 | $- |
| Fair value of warrants issued as debt issuance cost | $416965 | $- |

---

See the accompanying notes to the unaudited condensed consolidated financial statements

**WELLGISTICS HEALTH, INC.**

**NOTES TO THE CONDENDSED CONSOLDIATED FINANCIAL STATEMENTS**

**(Unaudited)**

**Note 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

Wellgistics Health, Inc. (the "Company," "we," "us," or "our") is a Delaware corporation headquartered in Tampa, Florida. The Company was initially organized as Ayan Sponsors LLC on September 6, 2022, and subsequently incorporated as Danam Health, Inc. on November 15, 2022. On October 4, 2024, the Company changed its corporate name to Wellgistics Health, Inc. by filing a duly authorized Certificate of Amendment to its Certificate of Incorporation.

The Company operates as a holding company with Wood Sage LLC ("Wood Sage") as a directly held intermediate holding company subsidiary, Wellgistics Tech & Hub, LLC and Wellgistics Pharmacy, LLC as indirect operating subsidiaries, and Wellgistics, LLC as a direct operating subsidiary.

In June 2024, the Company closed on the acquisition of Wood Sage (the "Wood Sage Acquisition"), acquiring two operating subsidiaries: Wellgistics Tech & Hub, LLC (f/k/a Alliance Pharma Solutions LLC d/b/a DelivMeds), a pharmaceutical technology hub, and Wellgistics Pharmacy, LLC (f/k/a Community Specialty Pharmacy, LLC), a retail community specialty pharmacy. On August 30, 2024, the Company closed on the acquisition of Wellgistics, LLC (the "Wellgistics Acquisition"), a wholesale pharmaceutical distributor serving a network of independent pharmacies.

**Summary of Significant Accounting Policies**

A description of the Company's significant accounting policies and other financial information is included in the Company's audited consolidated financial statements filed on March 20, 2026, with the SEC in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 (the "***Form 10-K***"). These policies have been applied consistently in these unaudited condensed consolidated interim financial statements.

**Unaudited Interim Financial Information**

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of March 31, 2025 and for the three months then ended.

The accompanying unaudited interim financial statements should be read in conjunction with the Company's audited financial statements and the notes thereto for the year ended December 31, 2025 included in the Form 10-K filed with the SEC on March 20, 2026.

**Basis of Presentation and Principles of Consolidation**

The Company's fiscal year ends on December 31.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.GAAP") in all material respects and have been consistently applied in preparing the accompanying unaudited condensed consolidated financial statements.

The condensed consolidated financial statements include the consolidated financial statements of Wood Sage since the acquisition on June 16, 2024 and financial statements of Wellgistics, LLC since the acquisition on August 30, 2024. All inter-company balances and transactions are eliminated on consolidation.

**Use of Estimates**

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Descriptions of significant accounting policies are included in the notes to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025. Management evaluates these estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. Actual results could differ from those estimates.

**Comprehensive Loss**

Comprehensive loss includes net loss as well as other changes in stockholders' equity that result from transactions and economic events other than those with stockholders. For the three months ended March 31, 2026 and 2025, there was no difference between net loss and comprehensive loss.

**Segment Reporting**

In accordance with Accounting Standards Codification ("ASC") 280, Segment Reporting ("ASC 280"), we identify our operating segments according to how our business activities are managed and evaluated. ASC 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company's chief operating decision maker ("CODM"), or group, in deciding how to allocate resources and assess performance.

The CODM has been identified as the Chief Executive Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating and reportable segment.

The key measures of segment profit or loss reviewed by our CODM are revenue and operating costs. These metrics are reviewed and monitored by the CODM to manage and forecast cash. The CODM also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget.

See Note 12 for further details.

**Concentration of Credit Risks, Major Customers and Vendors**

Financial instruments that potentially subject the Company to credit risk consist principally of cash and cash equivalents and receivables. The Company places its cash and cash equivalents with financial institutions. Deposits are insured to Federal Deposit Insurance Corp limits.

For the three months ended March 31, 2026, no single customer accounted for more than 10% of the Company's total revenues. For the three months ended March 31, 2025, one customer accounted for approximately 24.6% of total revenues.

As of March 31, 2026, two customers accounted for approximately 25.4% and 11.1%, respectively, of gross accounts receivable. As of March 31, 2025, two customers accounted for approximately 20.2% and 13.0%, respectively, of gross accounts receivable.

The Company's revenues and accounts receivable are subject to concentration risk due to its reliance on a limited number of significant customers. The loss of any one of these customers, or a material reduction in their purchase volumes, could have a material adverse effect on the Company's business, financial condition, and results of operations. Management continues to actively pursue opportunities to broaden and diversify the Company's customer base in order to reduce its exposure to this concentration risk.

**Fair Value of Financial Instruments**

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. A hierarchy has been established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The financial and nonfinancial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The hierarchy is presented down into three levels based on the reliability of the inputs.

---

| | |
|:---|:---|
| Level 1 | Quoted prices are available in active markets for identical assets or liabilities. |
| Level 2 | Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
| Level 3 | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. |

---

The carrying amounts of cash, accounts receivable, deposits, accounts payable, accrued liabilities and short-term debt approximate their fair value because of the short-term nature of these instruments. The carrying amount of long-term debt approximates fair value because the debt is based on current rates at which the Company could borrow funds with similar maturities.

**Accounts Receivable and Allowance for Credit Losses**

Accounts receivable are recorded at the net invoiced amount, net of allowance for credit losses, and do not bear interest. Expected credit losses include losses expected based on known credit issues with specific customers as well as a general expected credit loss allowance based on relevant information, including historical loss rates, current conditions, and reasonable economic forecasts that affect collectability. The Company reserves for any accounts receivable balances that are determined to be uncollectible in the allowance for credit losses. Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered. Actual write-offs may be in excess of the Company's estimated allowance.

The Company uses a loss rate method to estimate its allowance for credit losses. The determination of the current expected credit loss rate begins with our review of historical loss experience as a percentage of accounts receivable. To determine the current allowance for credit losses, we combine the historical and expected credit loss rates and apply them to our period end accounts receivable.

The Company provides for a 95% - 100% loss rate of the accounts receivable which are due over the period of 90 days. For the three months ended March 31, 2026 and 2025, the Company recognized a provision for credit losses of $93,698 and $76,154, respectively, within general and administrative expenses.

**Inventories, Net**

Inventories are stated at the lower of cost and net realizable value. Cost is determined on a first in first out ("FIFO") basis. Cost of inventory is determined as the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. On a quarterly basis, we evaluate inventory for net realizable value using estimates based on historical experience, current or projected pricing trends, specific categories of inventory, age and expiration dates of on-hand inventory and manufacturer return policies. If actual conditions are less favorable than our assumptions, additional inventory write-downs may be required, and no reserve is maintained as obsolete or expired inventories are written off and are presented in cost of net revenues in the accompanying consolidated statements of operations and comprehensive loss. We believe that the inventory valuation provides a reasonable approximation of the current value of inventory.

**Capitalized Software** 

The Company complies with the guidance of ASC 350-40, "*Intangibles—Goodwill and Other—Internal Use Software*", in accounting for our internally developed system projects that it utilizes to provide our services to customers. These system projects generally relate to software of the Company that is not intended for sale or otherwise marketed. Internal and external costs incurred during the preliminary project stage are expensed as they are incurred. Once a project has reached the development stage, the Company capitalizes direct internal and external costs until the software is substantially complete and ready for our intended use. Costs for upgrades and enhancements are capitalized, whereas costs incurred for maintenance are expensed as incurred. These capitalized software costs are amortized on a project-by-project basis over the expected economic life of the underlying software on a straight-line basis, which is generally three to five years. Amortization commences when the software is available for our intended use.

As of March 31, 2026 and December 31, 2025, the Company capitalized $2,704,641 and $2,499,553, respectively, in software development pertaining to the Delivmeds platform via its DelivMeds subsidiary.

The platform has not yet been placed in service and accordingly, amortization has not commenced.

**Property, Plant and Equipment, Net**

Property, plant and equipment, net ("PP&E") is stated at cost less accumulated depreciation and amortization and any accumulated impairment losses. Depreciation and amortization are computed using the straight-line method over the assets' estimated useful lives. The estimated useful lives of PP&E are as follows:

Equipment – 5 – 10 years

Furniture and Fixtures – 7 years

Software – 3 – 5 years

Leasehold improvements – Shorter of the estimate useful life or remaining lease term

Major renewals and improvements are capitalized. Replacements, maintenance, and repairs, which do not significantly improve or extend the useful life of the assets, are expensed when incurred.

Upon the sale or retirement of assets, costs and the related accumulated depreciation and amortization are removed from the accounts and any gain or loss is included in the results of operations.

The Company evaluates its long-lived assets or asset groups for indicators of possible impairment by determining whether there were any triggering events that could impact the Company's assets. If events or changes in circumstances indicate the carrying amount of an asset or asset group may not be recoverable the Company performs a comparison of the carrying amount to future net undiscounted cash flows expected to be generated by such asset or asset group. Should an impairment exist, the impairment loss is measured based on the excess carrying value of the asset over the asset's fair value generally determined by estimates of future discounted cash flows.

The Company has not identified any such impairment losses for the three months ended March 31, 2026 and 2025.

**Goodwill**

Goodwill represents the excess of the cost over the fair market value of net assets acquired in business combinations. In accordance with Intangibles – Goodwill and Other (Topic 350), goodwill is not amortized but is tested for impairment at least annually, or more frequently if indicators of potential impairment exist. Goodwill is tested for impairment at the reporting unit level. The Company's reporting units have discrete financial information available, and management regularly reviews the operating results. For purposes of impairment testing, goodwill is allocated to the applicable reporting units based on the Company's reporting structure.

The Company has the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. Qualitative factors assessed for each of the applicable reporting units include, but are not limited to, changes in macroeconomic conditions, industry and market considerations, cost factors, discount rates, competitive environments, and financial performance of the reporting units. If the qualitative assessment indicates that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value, a quantitative test is required.

Alternatively, the Company may proceed directly to the quantitative test. Under the quantitative test, the estimated fair value of each reporting unit is compared to its carrying value, including goodwill. If the carrying value of the reporting unit, including goodwill, exceeds its fair value, an impairment charge equal to the excess is recognized, up to the maximum amount of goodwill allocated to that reporting unit.

No goodwill impairment was identified during the three months ended March 31, 2026 and 2025.

**Impairment of Long-Lived Assets**

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets.

The Company evaluates its intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. In accordance with ASC 350, "Intangibles—Goodwill and Other," intangible assets with finite lives, such as trademarks and customer relationships, are amortized over their estimated useful lives. The Company compares the carrying value of the intangible asset to its fair value, which is determined based on projected future cash flows. If the carrying value of the asset exceeds its fair value, an impairment loss is recognized, and the asset is written down to its fair value.

No impairment of long-lived assets was identified during the three months ended March 31, 2026 and 2025.

**Leases**

The Company accounts for its leases under ASC 842, *Leases*. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases, and are recorded on the consolidated balance sheet as both a right of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company's incremental borrowing rate. Lease liabilities are increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right of use asset result in straight-line rent expense over the lease term. For finance leases, interest on the lease liability and the amortization of the right of use asset results in front-loaded expense over the lease term. Variable lease expenses are recorded when incurred.

In calculating the right of use asset and lease liability, the Company has elected not to combine lease and non-lease components. The non-lease components are accounted for separately and recognized as expenses when incurred. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and recognizes rent expense on a straight-line basis over the lease term.

**Revenue Recognition**

The Company recognizes revenue from contracts with customers under ASC 606, *Revenue from Contracts with Customers* ("ASC 606").

To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract was determined to be within the scope of ASC 606, the Company assessed the goods or services promised within each contract and determined those that were performance obligations, and assessed whether each promised good or service was distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. The Company recognizes revenue at the point of sale. The majority of orders are placed via the Company's website. Customers generally pay by credit card at the time they place their order. The Company does have larger customers to whom they have extended terms for payment. Generally, payments from these customers are due within 30 days of their order being shipped. However, a few customers have been given terms extending out to 45 days.

*Distribution*

Wellgistics, LLC provides distribution and third party logistics services to both pharmaceutical manufacturers and independent retail pharmacies. The Company recognizes revenue when goods are delivered to the customer. The gross product revenues are subject to a variety of deductions, which generally are estimated and recorded in the same period that the revenues are recognized. Such variable consideration represents chargebacks, rebates, sales allowances and sales returns. These deductions represent estimates of the related obligations and, as such, knowledge and judgment are considered when estimating the impact of these revenue deductions on gross sales for a reporting period. All revenue for the Company is recognized at the point-in-time when delivered to customer based on contractual obligations. Any amount collected from customers for goods not yet delivered is recorded as a contract liability.

*Pharmacy*

The Company is in the retail pharmacy business. and fills prescriptions for drugs written by a doctor and recognizes revenue at the time the patient confirms delivery of the prescription. Customer returns are not material. The following are the steps taken to recognize revenue.

Step One: Identify the contract with the customer — The prescription is written by a doctor for a customer and delivered to the Company. The prescription identifies the performance obligations in the contract. The Company fills the prescription and delivers to the Customer the prescription, fulfilling the contract. The collection is probable because there is confirmation that the customer has insurance for the reimbursement to the Company prior to filling of the prescription.

Step Two: Identify the performance obligations in the contract — Each prescription is distinct to the Customer.

Step Three: Determine the transaction price — The consideration is not variable. The transaction price is determined to be the price of the prescription at the time of delivery which considers the expected reimbursements from third party payors (e.g., pharmacy benefit managers, insurance companies and government agencies).

Step Four: Allocate the transaction price — The price of the prescription invoiced represents the expected amount of reimbursement from third party payors. There is no difference between contract price and "stand-alone selling price".

Step Five: Recognize revenue when or as the entity satisfies a performance obligation — Revenue is recognized upon the delivery of the prescription.

*Disaggregation of Revenue*

The following is a summary of the disaggregation of revenue for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Product revenue - distribution services | $225665 | $10668287 |
| Pharmacy retail sales | 1134416 | 114676 |
| Third party logistics services | 199482 | 80480 |
| &nbsp;&nbsp;&nbsp;Net revenues | $1559563 | $10863443 |

---

All revenue for the three months ended March 31, 2026, and 2025, were within the United States.

*Contract Assets and Liabilities* 

Contract assets would include costs and services incurred on contracts with open performance obligations. These amounts would be included in contract assets on the consolidated balance sheets. Contract liabilities include payment received for incomplete performance obligations and are included in Unearned revenue on the unaudited condensed consolidated balance sheets

At March 31, 2026, and December 31, 2025, the Company had unearned revenue of $26,000 and $488,229, respectively, included in accrued expenses and other current liabilities.

**Stock-Based Compensation**

The Company accounts for stock-based compensation in accordance with ASC 718, *Compensation – Stock Compensation.* The Company measures all stock-based awards granted to employees, directors and non-employee consultants based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. For awards with service-based vesting conditions, the Company records the expense for using the straight-line method. For awards with performance-based vesting conditions, the Company records the expense if and when the Company concludes that it is probable that the performance condition will be achieved.

The Company classifies stock-based compensation expenses in its statement of operations in the same manner in which the award recipient's costs are classified. See Note 9 for further details.

**Net Loss per Share**

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share reflects the weighted-average number of common shares outstanding adjusted for the effect of potentially dilutive securities. For periods in which a net loss is reported, all potentially dilutive securities are excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive. Accordingly, basic and diluted net loss per share are the same for the three months ended March 31, 2026 and 2025.

The following potentially dilutive securities were excluded from the computation of diluted net loss per share for the three months ended March 31, 2026 and 2025:

SCHEDULE OF POTENTIALLY DILUTIVE ITEMS OUTSTANDING

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Unvested restricted common stock | 1182121 | 10248491 |
| Unissued director share awards | 60000 |  |
| Warrants | 15457644 |  |
| Convertible notes | 20027114 | - |
| &nbsp;&nbsp;&nbsp;Total potentially dilutive shares | 36726879 | 10248491 |

---

**Note 2. LIQUIDITY AND GOING CONCERN**

For the three months ended March 31, 2026, the Company had a net loss of $7,742,597 and had an accumulated deficit of $118,774,287 as of March 31, 2026. As of March 31, 2026, the Company had cash and cash equivalents of $51,730 and net cash used in operating activities of $3,413,129 for the three months then ended. These factors raise substantial doubt about the Company's ability to continue as a going concern within twelve months from the date these unaudited condensed consolidated financial statements are issued.

In addition, on December 10, 2025, the Company received a deficiency notice from The Nasdaq Stock Market LLC indicating that the closing bid price of the Company's common stock had been below $1.00 per share for 30 consecutive trading days, and that the Company was therefore not in compliance with Nasdaq Listing Rule 5550(a)(2), which requires a minimum bid price of $1.00 per share. In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), the Company has until June 8, 2026 to regain compliance with the minimum bid price requirement. On April 13, 2026, the Company received an additional deficiency notice from The Nasdaq Stock Market LLC indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires listed companies on the Nasdaq Capital Market to maintain a minimum stockholders' equity of $2.5 million. If the Company is unable to regain compliance with the applicable Nasdaq listing requirements within the required timeframes, the Company's common stock may be subject to delisting from the Nasdaq Capital Market, which could materially adversely affect the liquidity of the Company's common stock and its ability to raise additional capita

*Management Plans*

Management is actively pursuing multiple initiatives to address the Company's liquidity position and going concern uncertainty:

During the three months ended March 31, 2026, the Company raised gross proceeds of $6,500,000 through the issuance of secured convertible promissory notes to fund working capital requirements and satisfy existing debt obligations, including the full repayment of the Agile Capital Funding LLC arrangement.

Subsequent to March 31, 2026, the Company raised additional gross proceeds of $1,000,000 through the issuance of promissory notes to fund working capital requirements.

On April 2, 2026, the holders of a majority of the Company's outstanding shares of common stock approved a reverse stock split at a ratio of not less than 1-for-25 and not more than 1-for-200, as determined by the Board of Directors in its sole discretion, which is intended in part to assist the Company in regaining compliance with Nasdaq's minimum bid price requirement.

On April 13, 2026, the Company entered into a collaboration agreement with Kare Rx Hub, LLC, Kare Pharmtech, LLC, and Healthstar Technologies, LLC related to the formation of a new limited liability company in which the Company is expected to hold a 51% ownership interest, which management believes will provide additional revenue opportunities and enhance the Company's long-term growth prospects.

Management is also focused on growing revenues through the expansion of its pharmacy operations and distribution network, reducing operating expenses, and continuing to pursue additional equity and debt financing arrangements to fund the Company's operations. The Company filed a definitive proxy statement on May 4, 2026 relating to a special meeting of stockholders to consider, among other matters, a proposed corporate name change to Vantix Health, Inc., the authorization of a class of preferred stock, and an increase in the number of shares reserved under the Company's equity incentive plan, which management believes will enhance the Company's ability to attract capital and incentivize key personnel.

Management believes that these initiatives, together with existing cash resources and anticipated revenues, will provide the Company with additional liquidity to support its operations. However, there can be no assurance that the Company will be able to obtain sufficient additional capital when needed, regain compliance with Nasdaq listing requirements, execute its collaboration agreement on the terms currently contemplated, or achieve profitability. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty.

In connection with our assessment of going concern considerations in accordance with FASB ASU 2014-15, "Disclosures of Uncertainties about an Entity's Ability to Continue as a Going Concern," management has determined that the conditions described above raise substantial doubt about the Company's ability to continue as a going concern through twelve months from the date these unaudited condensed consolidated financial statements are available to be issued.

**Note 3. ACCOUNTS RECEIVABLE, NET**

Accounts receivable, net consist of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| Billed – Third Party | $1933199 | $1984424 |
| Total Accounts Receivable | 1933199 | 1984424 |
| Less: Allowance for credit losses | (941052) | (847205) |
| &nbsp;&nbsp;&nbsp;Total accounts receivable, net | $992147 | $1137219 |

---

**Note 4. INVENTORIES, NET**

Inventory consists of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| First Defense Nasal Screen Corp ("FDNS") | $5988257 | $5988257 |
| Finished goods | 2165125 | 2072985 |
| &nbsp;&nbsp;&nbsp;Total inventory, at cost | 8153382 | 8061242 |
| Less: reserve for obsolescence | (6439783) | (6421816) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | $1713599 | $1639426 |

---

The FDNS inventory consists of products purchased by Wellgistics, LLC from First Defense Nasal Screen Corp ("FDNS"). Following a legal dispute with the supplier, the Company was awarded $4.6 million, which has not been recognized due to uncertainty of receipt. Pursuant to the United States Bankruptcy Court order dated March 15, 2023, the Company was awarded full possession of the FDNS inventory and receives a monthly plan payment of $3,014, which is recognized in other income in the unaudited condensed consolidated statements of operations.

The FDNS inventory has experienced minimal sales activity and management has determined there is no active market for the product. Based on this assessment, the carrying value was deemed not recoverable, and a reserve for obsolescence of $5,988,257was fully recorded during the year ended December 31, 2025 and remained unchanged as of March 31, 2026.

During the three months ended March 31, 2026, the Company recorded an additional reserve for obsolescence of $17,967 related to finished goods inventory, included in cost of net revenues in the unaudited condensed consolidated statements of operations.

**Note 5. PROPERTY, PLANT AND EQUIPMENT, NET**

Property, plant and equipment consist of the following:

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT, NET

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| Leasehold Improvements | $766467 | $766467 |
| Equipment | 589208 | 589208 |
| Furniture & Fixtures | 152161 | 152161 |
|  | 1507836 | 1507836 |
| Less: Accumulated Depreciation | (1306322) | (1278460) |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment, net | $201514 | $229376 |

---

Depreciation expense was $27,862 and $39,807 for the three months ended March 31, 2026, and 2025, respectively,

**Note 6. INTANGIBLE ASSETS**

Intangible assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| Software development costs - Delivmeds | $2704641 | $2499543 |
| Accumulated impairment | (649185) | (649185) |
| &nbsp;&nbsp;&nbsp;Capitalized software | $2055456 | $1850358 |
| Customer relationships - Woodsage acquisition | 393853 | 393853 |
| Customer relationships - Wellgistics acquisition | 11256067 | 11256067 |
| Trademark - Wellgistics acqusition | 10143137 | 10143137 |
| License rights | 2500000 | 2500000 |
|  | 24293057 | 24293057 |
| Accumulated amortization | (4428269) | (4099307) |
| Accumulated impairment | (9879075) | (9879075) |
| &nbsp;&nbsp;&nbsp;Other intangible assets, net | $9985713 | $10314675 |

---

*Capitalized Software*

 

Software development costs relate to the Wellgistics Tech & Hub, LLC platform. As of March 31, 2026 and December 31, 2025, the Company had gross capitalized software development costs of $2,704,641 and $2,499,543, respectively. Accumulated impairment of $649,185, recorded during the year ended December 31, 2025, remained unchanged as of March 31, 2026, resulting in a net carrying value of $2,055,456 and $1,850,358 as of March 31, 2026 and December 31, 2025, respectively. The platform has not yet been placed in service and accordingly, amortization has not commenced as of March 31, 2026.

*Customer Relationships and Trademark*

 

Intangible assets of $393,853 represent customer relationships identified and measured at fair value pursuant to the Wood Sage business combination completed in June 2024. Amortization expense related to these intangible assets was $12,308 and $12,308 for the three months ended March 31, 2026, and 2025, respectively.

Intangible assets of $11,256,067 and $10,143,137 represent customer relationships and trademarks, respectively, identified and measured at fair value in connection with the Wellgistics, LLC business combination completed in August 2024, amortized over their estimated useful lives. During the year ended December 31, 2025, the Company recognized impairment charges of $5,314,027 related to Wellgistics customer relationships and $4,565,048 related to the Wellgistics trademark, for a total intangible asset impairment charge of $9,879,075, recorded within goodwill and intangible asset impairment in the consolidated statements of operations. No impairment charges were recognized during the three months ended March 31, 2026.

Amortization expense related to Wellgistics customer relationships was $183,932 and $469,003 for the three months ended March 31, 2026 and 2025, respectively. Amortization expense related to the Wellgistics trademark was $132,722 and $281,754 for the three months ended March 31, 2026 and 2025, respectively.

Total amortization expense related to other intangible assets was $328,962 and $763,064 for the three months ended March 31, 2026 and 2025, respectively.

The following table represents the future amortization of intangible assets:

---

| | |
|:---|:---|
| **March 31,** | |
| 2026 (remaining 9 months) | $1254743 |
| 2027 | 1672991 |
| 2028 | 1672991 |
| 2029 | 1672991 |
| 2030 | 1423045 |
| Thereafter | 2288952 |
|  | 9985713 |

---

**Note 7. ACCRUED EXPENSES AND OTHER LIABILITIES**

Accrued expenses and other liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| Accrued personnel costs | $2714655 | $4588421 |
| Accrued professional fees | 207829 | 114429 |
| Accrued expenses | 160317 | 199053 |
| Credit card obligation | 182319 | 183943 |
| Unearned revenue | 26000 | 488229 |
| Accrued interest | 1165222 | 833647 |
|  | $4456342 | $6407722 |

---

**Note 8. DEBT**

Outstanding debt consists of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| Merchant cash advance | $1653853 | $1744134 |
| Loan payable |  | 1601052 |
| Note payable - owners of Wellgistics | 5000000 | 5000000 |
| Note payable - third party, net of debt discount | 450000 | 898411 |
| Revolving line of credit | 1500398 | 1643923 |
| Convertible notes | 6567649 | - |
| &nbsp;&nbsp;&nbsp;Current portion of debt obligations | 15171900 | 10887520 |
| Third party investor | $100000 | $100000 |
| Note payable - owners of Wellgistics | 12500000 | 12500000 |
| &nbsp;&nbsp;&nbsp;Long-term debt | 12600000 | 12600000 |
| &nbsp;&nbsp;&nbsp;Total debt | $27771900 | $23487520 |

---

As of March 31, 2026 and December 31, 2025, unamortized debt discount was $2,268,898 and $1,568,776, respectively.

*Merchant Cash Advance*

On October 20, 2025, the Company entered into a merchant cash advance agreement with Cedar Advance LLC (the "October 2025 MCA"). Under the October 2025 MCA, the stated purchase price was $2,898,000, of which $1,198,800 was applied directly to satisfy the outstanding balance under the Company's prior merchant cash advance arrangement, and $701,200 was remitted to the Company for working capital purposes. The total repayment obligation under the October 2025 MCA resulted in a principal balance of $1,900,000, repayable in fixed weekly installments of $56,800 over an estimated 51-week term.

The Company accounts for the merchant cash advance as a debt obligation. The difference between the total repayment obligation and the net proceeds received has been recorded as a debt discount and is amortized to interest expense over the term of the arrangement using the effective interest method.

For the three months ended March 31, 2026, the Company made total repayments of $181,800 under the merchant cash advance arrangement, of which $90,281 represented reduction of the principal balance and $91,519 represented amortization of the debt discount, recorded as interest expense in the condensed consolidated statements of operations.

As of March 31, 2026, the gross contractual repayment obligation under the merchant cash advance was $2,365,400. The related unamortized debt discount was $711,547, resulting in a net carrying amount of $1,653,853, which is classified as a current liability in the condensed consolidated balance sheet. As of December 31, 2025, the gross contractual repayment obligation was $2,547,200. The related unamortized debt discount was $803,066, resulting in a net carrying amount of $1,744,134, classified as a current liability in the condensed consolidated balance sheet.

*Loan Payable*

On October 29, 2025, the Company entered into a financing arrangement with Agile Capital Funding LLC ("Agile") pursuant to which it received net proceeds of $533,889. Total contractual repayments under the arrangement were $2,880,000, with fixed weekly payments of $75,789 over an estimated 38-week term. A portion of the proceeds was applied directly to satisfy the outstanding balance of the prior Agile obligation. The Company accounts for the arrangement as a debt obligation. The difference between the total contractual repayment amount and the net proceeds received was recorded as a debt discount and is amortized to interest expense over the term of the arrangement using the effective interest method.

During the three months ended March 31, 2026, the Company repaid in full all amounts outstanding under the Agile arrangement for total cash payments of $2,145,789. The Company accounted for the settlement as a debt extinguishment in accordance with ASC 470-50. In connection with the extinguishment, the Company derecognized the gross contractual repayment obligation and the related unamortized debt discount. Regular amortization of debt discount recognized as interest expense during the three months ended March 31, 2026 prior to extinguishment was $41,232. The remaining unamortized debt discount of $544,737 was charged to interest expense upon extinguishment.

As of March 31, 2026, there were no amounts outstanding under the Agile arrangement. As of December 31, 2025, the net carrying amount of the Agile obligation was $1,601,056, net of unamortized debt discount of $765,710, and was classified as a current liability in the condensed consolidated balance sheets.

*Note payable – sellers of Wellgistics, LLC*

On July 24, 2025, the Company and the owners of Wellgistics LLC executed the Eighth Amendment to the Membership Interest Purchase Agreement ("MIPA"), pursuant to which the principal amount of the seller promissory note was increased from $15.0 million to $17.5 million. Under the amended note, $5,000,000 of principal is payable on each of the first and second anniversaries, and $7,500,000 of principal is payable on the third anniversary, of the effective date of the promissory note. The note bears simple interest at a rate equal to the Prime Rate as published by The Wall Street Journal on January 1 of the applicable year.

For the three months ended March 31, 2026 and 2025, the Company recognized interest expense of $366,781 and $318,750, respectively, related to the seller promissory note. As of March 31, 2026 and December 31, 2025, accrued interest on the note totaled $1,018,836 and $652,055, respectively, and is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets. As of March 31, 2026 and December 31, 2025, $5,000,000 of the promissory note was classified as a current liability and the remaining $12,500,000 was classified as non-current in the condensed consolidated balance sheets.

*Note Payable – Third party*

On January 2, 2025, the Company entered into an unsecured promissory note agreement with Arvoda Consulting LLC for a principal amount of $448,411, bearing interest at a rate of 10% per annum, with both principal and accrued interest due in full on May 15, 2025. In the event of default, interest accrues at a default rate of 12% per annum. In connection with this note, the Company received net proceeds of $415,000, with the remaining $33,411 recognized as a debt discount, which was fully amortized as of December 31, 2025. During the three months ended March 31, 2026, the Company settled the outstanding principal and accrued interest under the Arvoda note through a combination of share issuances to Silverback Capital Corporation pursuant to a court-approved settlement agreement under Section 3(a)(10) of the Securities Act of 1933, and a direct cash payment by the Company. For the three months ended March 31, 2026 and 2025, the Company recognized interest expense of $399 and $11,304, respectively. For the three months ended March 31, 2025, the Company also recognized amortization of debt discount of $22,107. As of March 31, 2026, the note payable to Arvoda Consulting LLC had been fully satisfied and there were no amounts outstanding. As of December 31, 2025, accrued interest payable on this note was $44,442 and the outstanding principal of $448,411 was classified as a current liability in the condensed consolidated balance sheets.

On February 2, 2025, the Company entered into two separate unsecured promissory note agreement, each for a principal amount of $100,000, bearing interest at a rate of 10% per annum, with both principal and accrued interest originally due in full on August 15, 2025. In the event of default, interest accrues at a default rate of 12% per annum. Under the terms of the promissory note, an event of default occurs only if the maker fails to pay any amount due within five (5) days after receipt of written notice from the payee. As of March 31, 2026, the Company had not received any such written notice and, accordingly, no event of default had occurred. For the three months ended March 31, 2026 and 2025, the Company recognized aggregate interest expense of $5,000 and $3,124, respectively, related to this note. As of March 31, 2026 and December 31, 2025, aggregate accrued interest payable on this note was $23,124 and $18,124, respectively, and the aggregate outstanding principal of $200,000 is classified as a current liability in the condensed consolidated balance sheets.

On April 8, 2025, the Company issued a promissory note to Strategic EP, LLC in the principal amount of $250,000, bearing interest at a rate of 10% per annum. Under the terms of the agreement, the outstanding principal and accrued interest are payable on the earlier of (i) April 8, 2026, or (ii) within five business days following the Company's receipt of aggregate gross proceeds of at least $10 million from one or more equity or debt financings. On February 27, 2026, the Company received a demand letter from Strategic EP, LLC indicating that the Company was in default under the terms of the promissory note. Upon the occurrence of a default, interest accrues at a default rate of 18% per annum. For the three months ended March 31, 2026 and 2025, the Company recognized interest expense of $11,250 and $0, respectively, related to this note, accrued at the default rate of 18% per annum. As of March 31, 2026 and December 31, 2025, accrued interest payable on this note was $33,372 and $22,122, respectively, and the outstanding principal of $250,000 is classified as a current liability in the condensed consolidated balance sheets.

In September 2023, the Company entered into a promissory note agreement with a third party investor for a principal amount of $100,000, bearing interest at a rate of 8% per annum. Under the terms of the note, the lender is entitled to receive 35,000 shares of the Company's common stock upon the consummation of a SPAC transaction or merger. As of March 31, 2026, this condition had not been met and accordingly no shares have been issued. For the three months ended March 31, 2026 and 2025, the Company recognized interest expense of $2,000 and $2,000, respectively, related to this note. As of March 31, 2026 and December 31, 2025, accrued interest payable on this note was $21,666 and $19,666, respectively, and the outstanding principal of $100,000 is classified as a non-current liability in the condensed consolidated balance sheets.

 

*Revolving line of credit – Wellgistics*

In November 2024, Wellgistics, LLC entered into a credit agreement for a revolving line of credit with a maximum borrowing capacity of $10,000,000. The line of credit bears interest at a rate equal to the Term Secured Overnight Financing Rate ("SOFR") plus 11.5%, calculated and prorated daily on the outstanding balance, representing an aggregate rate of approximately 16.84% per annum. The line of credit is collateralized by accounts receivable and inventory balances of Wellgistics, LLC. For the three months ended March 31, 2026 and 2025, the Company recognized interest expense of $68,227, and $332,439, respectively, related to the revolving line of credit. As of March 31, 2026 and December 31, 2025, the outstanding balance under the revolving line of credit was $1,500,398 and $1,643,923, respectively, and is classified as a current liability in the condensed consolidated balance sheets.

*Convertible notes payable*

 

On January 16, 2026, the Company entered into a Note Purchase Agreement with certain investors pursuant to which the Company issued and sold secured convertible promissory notes (the "Notes") in an aggregate principal amount of $8,125,000 for aggregate gross proceeds of $6,500,000, reflecting a 20% original issue discount. The Notes mature on the earlier of (i) July 16, 2026, or (ii) the closing date of a qualified financing, as defined in the Note Purchase Agreement. The Notes bear interest at 0% per annum, except upon an event of default, in which case interest accrues at 18% per annum. As of March 31, 2026, no event of default had occurred. If not sooner repaid, all outstanding amounts under each Note are convertible, at the election of the holder, into shares of the Company's common stock at a conversion price of $0.4057 per share. The Notes are secured by substantially all of the assets of the Company and its wholly-owned subsidiaries.

In connection with the offering, the Company paid placement agent fees of $422,500 and legal fees of $75,000 directly from the gross proceeds. The Company also issued warrants to the placement agent and its designees to purchase an aggregate of 1,097,640 shares of common stock at an exercise price of $0.41 per share, with a five-year term. The fair value of the placement agent warrants of $416,965, determined using the Black-Scholes option pricing model, was recorded as a debt issuance cost. Total debt discount and issuance costs are being amortized to interest expense over the term of the Notes using the straight-line method. For the three months ended March 31, 2026 and 2025, the Company recognized amortization of debt discount and issuance costs of $982,114 and $0, respectively,as interest expense in the condensed consolidated statements of operations. As of March 31, 2026, the gross principal amount of the Notes was $8,125,000 and the unamortized debt discount and issuance costs were $1,557,351, resulting in a net carrying amount of $6,567,649, classified as a current liability in the condensed consolidated balance sheets.

The following table presents, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of warrants granted during the three months ended March 31, 2026:

---

| | |
|:---|:---|
|  | **Three Months Ended**<br>**March 31,**<br>**2026** |
| Stock price | $0.39 |
| Exercise price | 0.41 |
| Risk-free interest rate | 3.86% |
| Expected term (in years) | 5.00 |
| Expected volatility | 196.9% |
| Expected dividend yield | 0% |

---

The following table is a summary of annual principal payments of the Company's outstanding debt:

---

| | |
|:---|:---|
| **March 31,** | |
| 2026 (nine months ending December 31, 2026) | $17440798 |
| 2027 | 5100000 |
| 2028 | 7500000 |
|  | 30040798 |
| Less : Unamortized debt discount | (2268898) |
|  | $27771900 |

---

**Note 9. STOCKHOLDERS' EQUITY**

*2026 Transactions*

 

*Consulting Agreement*

On January 13, 2026, the Company issued 1,224,489 shares of its common stock to Hudson Global Ventures, LLC as consideration for consulting services rendered to the Company. The fair value of the shares, determined based on the closing market price of $0.42 per share on the date of issuance, was $514,285, which was recognized as consulting expense within general and administrative expenses in the condensed consolidated statements of operations for the three months ended March 31, 2026.

*Settlement Agreement* 

 

On January 28, 2026, the Company entered into a Settlement Agreement and Stipulation with Silverback Capital Corporation ("Silverback"), which was approved by the Circuit Court of the Twelfth Judicial Circuit in and for Desoto County, Florida on February 4, 2026, pursuant to Section 3(a)(10) of the Securities Act of 1933. Under the terms of the settlement, the Company agreed to issue shares of its common stock to Silverback, the proceeds from the resale of which were applied to satisfy certain outstanding obligations of the Company, including vendor payables and notes payable.

Pursuant to the settlement, the Company issued shares to Silverback in three tranches. On February 12, 2026, the Company issued 2,340,000 shares at an agreed settlement price of $0.25 per share, for a total settlement value of $585,000. The fair value of the shares on the date of issuance, based on the closing market price of $0.28 per share, was $655,200. On March 9, 2026, the Company issued an additional 4,126,000 shares at an agreed settlement price of $0.25 per share, for a total settlement value of $1,031,500. The fair value of the shares on the date of issuance, based on the closing market price of $0.17 per share, was $701,420. The aggregate carrying amount of the obligations settled through these two tranches exceeded the aggregate fair value of the shares issued, resulting in a net gain on debt extinguishment of $259,880, which is included in other income in the condensed consolidated statements of operations for the three months ended March 31, 2026.

On March 23, 2026, the Company issued an aggregate of 400,000 shares of its common stock to Silverback in two components — 100,000 shares as consideration for settlement fees and 300,000 shares as consideration for legal fees incurred in connection with the settlement arrangement. The fair value of the shares was determined based on the closing market price of $0.13 per share on the date of issuance, resulting in settlement fees of $13,000 recognized within other expenses and legal fees of $39,000 recognized within general and administrative expenses in the condensed consolidated statements of operations for the three months ended March 31, 2026.

*Accrued Compensation Settlement*

On March 18, 2026, the Board of Directors approved the settlement of accrued compensation obligations owed to Suren Ajjarapu and Prashant Patel through the issuance of equity securities. Pursuant to the settlement, the Company issued 5,000,000 shares of common stock to each of Mr. Ajjarapu and Mr. Patel, for an aggregate of 10,000,000 shares, together with five-year warrants to purchase 5,000,000 shares of common stock issued to each individual, for an aggregate of 10,000,000 warrants exercisable at $0.01 per share. The shares were issued on March 31, 2026 pursuant to Section 4(a)(2) of the Securities Act of 1933.

The fair value of the shares on the date of issuance, based on the closing market price of $0.13 per share, was $1,300,000 in aggregate. The fair value of the warrants was $1,289,580 in aggregate, determined using the Black-Scholes option pricing model with the following assumptions: stock price of $0.13, exercise price of $0.01, expected term of 5 years, annualized volatility of 186.0%, risk-free interest rate of 3.87%, and no expected dividends.

The aggregate fair value of the equity consideration issued of $2,589,580 was applied to settle accrued payroll expenses of $1,666,667 and accrued bonus of $333,333. The excess of the fair value of equity issued over the carrying amount of the obligations settled of $589,580 was recognized as stock-based compensation expense within general and administrative expenses in the condensed consolidated statements of operations for the three months ended March 31, 2026. The transaction was entirely non-cash.

*2025 Transactions*

 

*Initial Public Offering*

 

On February 24, 2025, the Company closed its initial public offering of 888,889 shares of common stock at a public offering price of $4.50 per share, generating gross proceeds of $4.0 million and net proceeds of approximately $3.1 million after deducting underwriting discounts, commissions, and other offering expenses.

*Consulting Agreements*

 

On February 25, 2025, the Company issued 52,000 shares of restricted common stock to Hudson Global Ventures, LLC as consideration for consulting services. The fair value of the shares, determined based on the closing market price on the grant date, was $143,520, which was recognized as stock-based compensation expense within general and administrative expenses for the three months ended March 31, 2025.

On March 17, 2025, the Company issued 100,000 shares of restricted common stock to Draper, Inc. pursuant to a consulting agreement for investor relations and business development services. The total fair value of the shares was $400,000, of which $65,217 was recognized as stock-based compensation expense within sales and marketing expenses for the three months ended March 31, 2025. The remaining $334,783 was recorded as prepaid expenses as of March 31, 2025.

 

 

*2023 Equity Incentive Plan*

The Company adopted the 2023 Equity Incentive Plan (the "Plan"), which provides the issuance of up to 43,506,064 shares of the Company's common stock (the "Initial Limit"). Beginning on January 1, 2025, and on each January 1 thereafter, the number of shares reserved for issuance under the Plan will automatically increase by an amount equal to three percent (3%) of the number of shares of the Company's common stock outstanding on the immediately preceding December 31, or such lesser amount as may be determined by the Plan's administrator (the "Annual Increase"). Shares issued under the Plan may be newly issued shares or reacquired shares.

The Plan permits the grant of various types of stock-based awards, including incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards. The number of shares available for issuance as incentive stock options may not exceed the Initial Limit, as adjusted for any Annual Increases, subject to adjustment as provided under the terms of the Plan.

Shares subject to awards that expire, are canceled, or otherwise terminate without having been exercised or settled in full will again become available for future grant under the Plan. However, shares repurchased by the Company on the open market will not be added back to the share reserve. Awards that may be settled solely in cash do not count against the share reserve.

The Plan also includes a limitation on annual compensation to non-employee directors. The aggregate value of all equity awards granted to any non-employee director under the Plan, together with any cash compensation paid for service as a non-employee director, may not exceed (i) $1,000,000 in the first calendar year of service and (ii) $750,000 in any subsequent calendar year. The fair value of such awards is determined based on grant date fair value in accordance with ASC Topic 718, excluding the impact of estimated forfeitures related to service-based vesting conditions.

*Restricted Common Stock*

 

On February 4, 2026, the Company granted 200,000 shares of restricted common stock to a newly appointed director under the Plan, vesting in equal annual installments over a three-year period. The grant date fair value of the award was $68,000, determined based on the closing market price of $0.34 per share on the date of grant. In addition, the newly appointed director is entitled to an annual cash retainer of $120,000, payable quarterly in arrears, and an annual equity award of 60,000 shares of common stock under the Plan, issuable in arrears following the end of each calendar year. For the three months ended March 31, 2026, the Company accrued director compensation of $20,000 related to the cash retainer, included within accrued expenses and other liabilities in the condensed consolidated balance sheets, and recognized stock-based compensation expense of $3,400 related to the annual equity award, included within general and administrative expenses in the condensed consolidated statements of operations.

 

A summary of restricted common stock activity for the three months ended March 31, 2026 and 2025 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Restricted**<br> **Common Stock** | **Weighted Average Fair Value** |
| Unvested shares as of December 31, 2025 | 982121 | $2.63 |
| Granted | 200000 | 0.34 |
| Vested |  |  |
| Forfeited and cancelled | - |  |
| Unvested shares as of March 31, 2026 | 1182121 | $2.24 |

---

For the three months ended March 31, 2026, the Company recognized stock-based compensation expense of $198,499 related to restricted stock awards, included within general and administrative expenses in the condensed consolidated statements of operations. For the three months ended March 31, 2025, the Company recognized stock-based compensation expense of $27,229,902 related to restricted stock awards, which included $27,021,165 attributable to the immediate vesting of 9,363,617 shares granted on March 14, 2025.

As of March 31, 2026, total unrecognized compensation expense related to unvested restricted stock awards was $1,560,886, which is expected to be recognized over a weighted-average remaining period of 1.59 years.

*Warrants*

 

A summary of warrant activity for the three months ended March 31, 2026 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Warrants** | **Weighted Average Excerise Price** |
| Outstanding, December 31, 2025 | 4360004 | $0.72 |
| Issued | 11097640 | 0.05 |
| Exercised |  |  |
| Expired and cancelled | - | - |
| Unvested shares as of March 31, 2026 | 15457644 | $0.24 |

---

On January 20, 2026, the Company issued 1,097,640 warrants to the placement agent and its designees in connection with the convertible note offering at an exercise price of $0.41 per share, expiring January 20, 2031. The fair value of these warrants and the related Black-Scholes assumptions are disclosed in Note 8.

On March 18, 2026, the Company issued an aggregate of 10,000,000 warrants to Suren Ajjarapu and Prashant Patel in connection with the settlement of accrued compensation obligations, exercisable at $0.01 per share and expiring March 18, 2031. The fair value of the warrants was determined using the Black-Scholes option pricing model with the following assumptions:

---

| | |
|:---|:---|
|  | **Three Months Ended**<br>**March 31,**<br>**2026** |
| Stock price | $0.13 |
| Exercise price | 0.01 |
| Risk-free interest rate | 3.87% |
| Expected term (in years) | 5.00 |
| Expected volatility | 186.0% |
| Expected dividend yield | 0% |

---

Fair value of warrants $0.13 per warrant and an aggregate fair value of $1,289,580. As of March 31, 2026, all outstanding warrants were exercisable with a weighted average remaining contractual term of approximately 4.82 years.

**Note 10. LEASE OBLIGATIONS**

Rent is classified by function on the consolidated statements of operations as general and administrative.

The Company determines whether an arrangement is or contains a lease at inception by evaluating potential lease agreements including services and operating agreements to determine whether an identified asset exists that the Company controls over the term of the arrangement. Lease commencement is determined to be when the lessor provides access to, and the right to control, the identified asset.

The rental payments for the Company's leases are typically structured as either fixed or variable payments. Fixed rent payments include stated minimum rent and stated minimum rent with stated increases. The Company considers lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from the calculation of lease liabilities.

In May 2024, the Company entered into a lease agreement for office space in Tampa, Florida. As a result, the Company recognized a right-of-use asset and corresponding lease liability, calculated using a discount rate of 8.36%. The lease includes a monthly base rent of $18,792 and expired in June 2027. The lease required a security deposit by Wellgistics Health of $35,855 and Wellgistics, LLC of $31,871.

On June 9, 2023, Intergra Pharma Solutions entered into First amendment to the Vector Collective lease, which is sublease to Wellgistics Pharmacy. The lease includes a monthly base rent of $4,714.41 from and after November 16, 2023 and expires on November 15, 2026. A right-of-use asset and corresponding lease liability recognized calculated using a discount rate of 8.36%.

In January 2022, Wellgistics LLC entered into lease agreement for warehousing facility located in Lefrois, Florida, which has a lease term of 75 months, set to expire in March 2028, with a monthly base rent of $26,303. Wellgistics LLC recognized a right-of-use asset and corresponding lease liability, calculated using a discount rate of 6.21%.

The following is the summary of operating lease assets and liabilities:

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| **<u>Operating Leases</u>** |  |  |
| Right-of-use assets | $844400 | $966893 |
| Lease liabilities, current portion | 567748 | 569251 |
| Long-term lease liabilities | 391272 | 527122 |
| &nbsp;&nbsp;&nbsp;Total lease liabilities | $959020 | $1096373 |
| Weighted Average Remaining Lease Term | 1.72 | 1.95 |
| Weighted Average Discount Rate | 8.36% | 8.36% |

---

The following is the summary of future minimum payments:

---

| | |
|:---|:---|
| **March 31,** | |
| 2026 (remaining 9 months) | $467578 |
| 2027 | 458657 |
| 2028 | 84976 |
| Total lease payments | 1011211 |
| Less: Imputed interest | (52191) |
| Total | $959020 |

---

**Note 11. RELATED PARTY TRANSACTIONS**

The Company has transactions with Scietech, LLC where a significant investor is the spouse of one of the directors of the Company, which qualifies as a related party. As of March 31, 2026 and December 31, 2025, accounts payable to Scietech, LLC was $25,500. No new transactions occurred with Scietech, LLC during the three months ended March 31, 2026.

As of December 31, 2025, the Company had an outstanding obligation of $225,000 due to its Chief Executive Officer, which was fully repaid during the three months ended March 31, 2026. As of March 31, 2026, there were no amounts outstanding.

During the three months ended March 31, 2026, the Company had outstanding advances of $4,200 from an officer of the Company, representing amounts paid on behalf of the Company for business purposes, which is included in due from related parties in the unaudited condensed consolidated balance sheets.

During the three months ended March 31, 2025, the Company had transactions with certain entities that were considered related parties at that time, including Integra Pharma Solutions, LLC ("IPS") and companies affiliated with Nomad Capital LLC. These entities are no longer considered related parties as of the date of these financial statements. The following summarizes transactions with these entities for the three months ended March 31, 2025:

SCHEDULE OF RELATED PARTY TRANSACTION

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Sales to Integra Pharma Solutions, LLC | $- | $503730 |
| Management services fees paid to Nomad Capital | $- | $160000 |
| IT expenses paid to Cingo Solutions | $- | $161000 |

---

**Note 12. SEGMENT AND GEOGRAPHIC INFORMATION** 

The Company operates as one operating segment. The Company's CODM is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated gross margin, operating income and net income to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the determination of the rate at which the Company seeks to grow operating income and the allocation of budget between cost of revenues, sales and marketing, general and administrative expenses or technology and development.

The following table presents selected financial information with respect to the Company's single operating segment for the three months ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Net revenues | $1559563 | $10863443 |
| Cost of net revenues | 1389342 | 10170802 |
| &nbsp;&nbsp;&nbsp;Gross profit (loss) | 170221 | 692641 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 4868935 | 31172920 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 960000 | 65217 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 356824 | 802872 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 6185759 | 32041009 |
| Loss from operations | (6015538) | (31348368) |
| Other income/(expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (2072679) | (1094490) |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of vendor obligation | 259880 |  |
| &nbsp;&nbsp;&nbsp;Settlement fees | (13000) |  |
| &nbsp;&nbsp;&nbsp;Other income | 98740 | 11955 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (1727059) | (1082535) |
| Net loss before income taxes | (7742597) | (32430903) |
| Provision for income taxes | - | - |
| Net loss | $(7742597) | $(32430903) |

---

All revenues were within the U.S. region. See Note 1, *Organization and Summary of Significant Accounting Policies* - *Revenue Recognition* for additional information about disaggregated revenue.

The Company's long-lived tangible assets, as well as the Company's operating lease right-of-use assets recognized on the unaudited condensed consolidated balance sheets were located as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **December 31,** |
|  | **2026** | **2025** |
| **<u>United States</u>** |  |  |
| Property, plant and equipment, net | $201514 | $229376 |
| Operating lease, right-of-use assets | $844400 | $966893 |

---

**Note 13. COMMITMENTS AND CONTINGENCIES**

From time to time, the Company is involved in legal proceedings arising from the normal course of business activities. The Company, in conjunction with its legal counsel, assesses the need to record a liability for litigation or loss contingencies. A liability is recorded when and if it is determined that such a liability for litigation or loss contingencies is both probable and estimable.

Although the results of legal proceedings and claims cannot be predicted with certainty, the Company is not currently a party to any legal proceedings, which would, individually or in the aggregate, have a material adverse effect on its results of operations, cash flows, or financial position.

*Legal Matters*

On August 21, 2024, Blythe Global Advisors, LLC filed a demand for arbitration against the Company and the Chairman of the Board for breach of contract, breach of the implied covenant of good faith and fair dealing, and breach of personal guaranty, claiming accounting services of $377,947 for which it has not been paid. The Company has answered the arbitration demand and is vigorously defending the matter.

Relatedly, Wellgistics, LLC, Wood Sage, LLC, Alliance Pharma Solutions, LLC, and Community Specialty Pharmacy, LLC, all subsidiaries of the Company, have sued Blythe Global Advisors, LLC in the Circuit Court of the Thirteenth Judicial Circuit in and for Hillsborough County, Florida, asserting claims of improper UCC-1 filings, tortious interference with business relationships, slander of title, and state RICO violations. A motion to dismiss filed by Blythe remains pending. The Company is vigorously prosecuting its claims.

Wellgistics, LLC is a defendant in a legal proceeding initiated by Lifsa Drugs LLC in the United States District Court for the District of New Jersey. The complaint alleges that Wellgistics, LLC failed to make payment for certain pharmaceutical products and seeks damages of approximately $420,460, together with interest, legal fees, and other related costs. The underlying amount has been recorded as a liability and is included within accounts payable in the accompanying condensed consolidated balance sheet. At this stage of the proceedings, the outcome cannot be reasonably predicted. The Company will record any additional provision if and when the likelihood of loss becomes probable and reasonably estimable.

*Dispute with Former Management*

 

On October 10, 2025, the Company initiated litigation in the Circuit Court of the Thirteenth Judicial Circuit in and for Hillsborough County, Florida against certain former officers and/or directors of the Company. The complaint asserts claims including breach of fiduciary duty of loyalty, breach of contract, tortious interference with a contract, tortious interference with business relationships, and other applicable claims. In January 2026, the Company served a notice of additional claims against the former management parties for misrepresentations and omissions of material fact in connection with an acquisition of certain limited liability company membership interests. The Company intends to seek, among other relief, rescission and cancellation of any purported commitments related to or resulting from the misrepresentations and omissions, as well as related equitable and monetary remedies.

On December 10, 2025, defendants filed a motion to compel arbitration of all claims. A hearing on the motion was scheduled for April 27, 2026.

As of March 31, 2026, obligations associated with these arrangements are reflected as liabilities on the Company's condensed consolidated balance sheet in the aggregate amount of approximately $17,500,000. Because the potential resolution of this matter may result in a gain contingency, no amounts have been recognized in the accompanying condensed consolidated financial statements for any potential recovery or reduction of the recorded liability. The Company will continue to evaluate this matter and will adjust the related liability, if appropriate, based on developments in the litigation.

*Vendor Demand Letter* 

 

The Company and certain of its subsidiaries have received demand letters from various vendors requesting payment for goods and services previously provided. The aggregate amount referenced in these demand letters is approximately $2.3 million, of which approximately $1.7 million is already recorded within accounts payable in the accompanying condensed consolidated balance sheet. The remaining $0.6 million relates to claims that are not recorded as liabilities in the accompanying condensed consolidated financial statements. Based on management's evaluation in accordance with ASC 450, Contingencies, a loss related to these unrecorded claims is not probable as of March 31, 2026. Accordingly, no liability has been recognized for these amounts.

**Note 14. SUBSEQUENT EVENTS**

*Financing Activity*

On April 1, 2026, the Company entered into a securities purchase agreement with certain investors pursuant to which the Company issued promissory notes in an aggregate principal amount of up to $1,250,000 for aggregate gross proceeds of $1,000,000, reflecting a 20% original issue discount. The notes bear interest at 0% per annum, except upon the occurrence of an event of default, in which case interest accrues at 15% per annum. The notes mature on the earlier of twelve months from the date of issuance or the closing of a qualified financing transaction.

*Reverse Stock Split Authorization*

 

On April 2, 2026, the holders of a majority of the Company's outstanding shares of common stock approved by written consent, in lieu of a special meeting, one or more amendments to the Company's Certificate of Incorporation to authorize the Board of Directors to effect one or more reverse splits of the Company's outstanding common stock at a ratio of not less than 1-for-25 and not more than 1-for-200, as determined by the Board of Directors in its sole discretion. The authorization is valid for a period of twelve months from the date of the written consent. The Board of Directors has not yet determined whether to effect a reverse stock split or, if so, the specific ratio to be applied. The reverse stock split, if effected, would become effective upon the filing of a Certificate of Amendment with the Office of the Secretary of State of the State of Delaware.

*Silverback Capital Corporation*

On April 3, 2026, the Company terminated its previously disclosed settlement agreement with Silverback Capital Corporation. Prior to termination, the Company had issued an aggregate of 6,866,000 shares of common stock pursuant to the settlement agreement during the three months ended March 31, 2026. Subsequent to termination, on April 8, 2026 and April 10, 2026, the Company issued an aggregate of 6,273,264 additional shares of its common stock to Silverback Capital Corporation at a settlement price of $0.1015 per share, for an aggregate settlement value of $636,736, representing share issuances in connection with the settlement arrangement.

On May 18, 2026, the Company and Silverback entered into an Agreement Rescinding Termination and Reinstating Settlement Agreement, pursuant to which the parties agreed to rescind and withdraw the April 3, 2026 termination letter, reinstate the Settlement Agreement in its entirety, and continue performance thereunder. The reinstatement acknowledges that certain creditor claims remain outstanding and shall continue to be processed pursuant to the terms of the Settlement Agreement. The administrative close-out process contemplated following the termination was not completed.

*Collaboration Agreement*

On April 13, 2026, the Company entered into a collaboration agreement with Kare Rx Hub, LLC, Kare Pharmtech, LLC, and Healthstar Technologies, LLC related to the formation of a new limited liability company in which the Company is expected to hold a 51% ownership interest. As consideration in connection with the transaction, the Company agreed to issue $2.0 million of unregistered shares of its common stock, the number of which will be determined based on the market price of the Company's common stock at the time of issuance.

*Nasdaq Compliance*

On April 13, 2026, the Company received a deficiency notice from The Nasdaq Stock Market LLC indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires listed companies on the Nasdaq Capital Market to maintain a minimum stockholders' equity of $2.5 million. The notice does not result in the immediate delisting of the Company's common stock. The Company intends to submit a plan of compliance within the timeframe specified by Nasdaq. There can be no assurance that Nasdaq will accept the Company's compliance plan or that the Company will be able to regain compliance within any extension period that may be granted.

*Forbearance Agreement*

 

On May 1, 2026, Wellgistics, LLC entered into an Acknowledgment of Indebtedness, Forbearance and Repayment Agreement with Marco Capital, Inc. pursuant to which Marco Capital, Inc. agreed to forbear from exercising its rights and remedies with respect to approximately $1,770,000 of outstanding obligations owed by Wellgistics, LLC through June 15, 2026, subject to the terms and conditions of the agreement.

*Definitive Proxy Statement*

On May 4, 2026, the Company filed a definitive proxy statement with the SEC relating to a special meeting of stockholders. The matters to be considered at the special meeting include, among others, a proposed corporate name change to Vantix Health, Inc., the authorization of a class of preferred stock, and an increase in the number of shares reserved for issuance under the Company's equity incentive plan.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes appearing elsewhere in this Quarterly Report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. See "Cautionary Note Regarding Forward-Looking Statements" below. We have no obligation to update any of these forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements due to many factors, including, but not limited to, those set forth under the heading "Risk Factors" in this Quarterly Report. Factors that could cause or contribute to such differences include, but are not limited to, capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, as well as those factors discussed below and elsewhere in this Quarterly Report.*

**Cautionary Statement Regarding Forward-Looking Information**

This Quarterly Report contains statements that constitute forward-looking statements that are subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Some of the statements in this Quarterly Report constitute forward-looking statements because they relate to future events or the future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our beliefs and our assumptions. These forward-looking statements include, but are not limited to, statements regarding our or our management team's expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "seek," "should," "target," or the negative of these terms or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements in this Quarterly Report may include, for example, statements about:

● A shift in pharmacy mix toward lower margin plans, margin compression on branded medications, or the increased offering of specialty products, direct and indirect remuneration fees, mail order pharmacy steering, and programs;

● Wellgistics Health deriving a portion of its sales from prescription drug sales reimbursed by pharmacy benefit management companies;

● Wellgistics Health being adversely affected by a decrease in the introduction of new brand name and generic prescription drugs as well as increases in the cost to procure prescription drugs;

● changes in economic conditions that adversely affect consumer/client buying practices and market adoption of our mobile application and the accompanying revenues to premium access/services;

● Wellgistics Health's relationships with its primary wholesaler for pharmacy operations and Wellgistics Health's manufacturer relationships of its wholesale and hub technology platform subsidiaries;

● changes in the healthcare industry and regulatory environments;

● the effects of competition on Wellgistics Health's future business;

● Wellgistics Health's ability to execute its business plans and strategy; and

● other risks and uncertainties described in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 20, 2026, and those risks described in the section entitled "*Risk Factors*" of this Quarterly Report.

Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. There can be no assurance that future developments affecting us will be those that we have anticipated. Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statements in this Quarterly Report should not be regarded as a representation by us that our plans and objectives will be achieved.

These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

We have based the forward-looking statements included in this Quarterly Report on information available to us on the date of this Quarterly Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this Quarterly Report, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we may file in the future with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

**Overview**

Incorporated in 2022, we are a holding company for operating companies centered around healthcare technology and pharmaceutical services. We seek to be a micro health ecosystem, with a portfolio of companies consisting of a technology platform, pharmacy, and wholesale operations that provide novel prescription hub and clinical services. We strive to shift the dynamic of pharmaceutical care to revolve around the patient for a range of therapeutic conditions by offering various integrated solutions through leveraging our business segments to address access, care coordination, dispensing, delivery, and clinical management of certain pharmaceutical products.

Currently, we own one direct operating company, Wellgistics, LLC, and two indirect operating companies, Wellgistics Tech & Hub, LLC dba DelivMeds (f/k/a Alliance Pharma Solutions, LLC) ("Wellgistics Tech & Hub") and Wellgistics Pharmacy, LLC (f/k/a Community Specialty Pharmacy, LLC) ("Wellgistics Pharmacy"), through an intermediary—Wood Sage, LLC.

***Wellgistics, LLC***

Founded in 2013, Wellgistics, LLC serves as the wholesale arm of our healthcare ecosystem as a 50-state FDA licensed and NABP-accredited pharmaceutical wholesaler distributor, bridging the gap between small- to mid-size pharmaceutical manufacturers and independent retail pharmacies. Serving over 5,000 registered pharmacies nationwide, Wellgistics, LLC provides significant value by offering competitive pricing, unique products, and exceptional service, while also promoting manufacturers' products to a diverse range of pharmacies. Wellgistics, LLC's primary focus is on supporting independent retail pharmacies in search of better products, prices, and services, thereby ensuring their growth and sustainability in the competitive pharmaceutical sector.

Wellgistics, LLC provides distribution and third party logistics services to both pharmaceutical manufacturers and independent retail pharmacies. With over 60 manufacturing relationships, Wellgistics, LLC identifies niche therapeutic products and work with its manufacturing clients to increase market access and visibility of its client relationships with product awareness and support campaigns. Specifically, Wellgistics, LLC helps promote product distribution through its network of pharmacy buyers by providing sales and marketing support. These services include providing product education, identifying opportunities for therapeutic substitution when clinically relevant, and cost savings opportunities for pharmacies and their patients. Wellgistics, LLC's portfolio of products is comprised of 65% topical generics with a primary focus on the dermatology market, 20% oral generic formulations primarily in the non-narcotic pain category, 10% oral and topical brand formulations, and 5% in the over-the-counter market space. Its investments in cold chain infrastructure will position this division to compete in the specialty-lite therapy category while also expanding our ability to house additional branded products.

We acquired Wellgistics, LLC in August 2024.

***Wellgistics Tech & Hub, LLC dba DelivMeds (f/k/a Alliance Pharma Solutions, LLC***)

Through Wellgistics Tech & Hub, we aim to preserve patient autonomy, improve price transparency, and aid in making a meaningful impact on patient outcomes by eliminating barriers to therapy while simultaneously boosting adherence. We work with channel partners such as pharmaceutical manufacturers, provider groups and accountable care organizations, telehealth companies, and employer groups to offer full suite of patient-centered pharmacy services. Wellgistics Tech & Hub's business-to-business strategy approach enables prescriptions to be sent directly to Wellgistics Pharmacy and subsequently transferred to an eligible in-network independent pharmacy. Each channel partner is equipped with de-identified data to improve its respective business operation and or improve its renumeration from the value-based services the clinical concierge arm provides.

We acquired Wellgistics Tech & Hub through our acquisition of Wood Sage in June 2024.

***Wellgistics Pharmacy, LLC (f/k/a Community Specialty Pharmacy, LLC***)

Founded in 2011, Wellgistics Pharmacy serves as the backbone dispensing pharmacy of our healthcare ecosystem. First operating as a retail community specialty pharmacy, Wellgistics Pharmacy provides general and specialty pharmacy services dedicated to servicing the needs of patients, as well as clinical expertise, technology-driven innovation tools, and administrative efficiencies that support physicians, payers, and pharmaceutical manufacturers. Initially focusing on providing HIV/AIDS products, Wellgistics Pharmacy has expanded its business operations to perform 340B services by partnering with local clinics and provider groups. It has pursued pharmacy state licenses to convert its business into a mail order pharmacy. Currently, Wellgistics Pharmacy is licensed in 32 states and the District of Columbia, with superb license coverage along the east coast. While Wellgistics Pharmacy voluntarily forfeited its specialty accreditations, Wellgistics Pharmacy maintains specialty internal standard operating procedures and performs all of the functions of a specialty pharmacy.

Wellgistics Pharmacy purchases pharmaceuticals including specialty medications from manufacturers and wholesale distributors, fills prescriptions, labels, packages and delivers these pharmaceuticals to patients' homes or physicians' offices through contract couriers or carriers. It maintains a call center and customer support within its pharmacy located in Tampa, Florida. Wellgistics Pharmacy has several 340B relationships, acting as the dispensing pharmacy for these healthcare facilities that help drive revenue and prescription volume. Wellgistics Pharmacy's relationship with Wellgistics, LLC and other wholesalers enables it to offer a competitive cash-based formulary for the uninsured and underinsured patient populations. Given its low-cost business model, Wellgistics Pharmacy believes there is an opportunity to gain market share with small- to medium-size employer groups in a partnership model with other consumer driven healthcare companies to the extent that more patients elect to pay out of pocket for prescriptions.

We acquired Wellgistics Pharmacy through our acquisition of Wood Sage in June 2024.

***Wellgistics Health, Inc.***

As a micro health ecosystem, our portfolio of companies consists of a pharmacy, wholesale operations, and a technology division with a novel platform for hub and clinical services. We are focused on improving the lives of patients while delivering unique solutions for pharmacies, providers, pharmaceutical manufacturers, and payors. Our patient-centric approach combined with innovative healthcare applications positions us to shift the dynamic of care to revolve around the patient for a wide range of therapeutic conditions. We offer a full spectrum of integrated solutions by leveraging the synergies of our business segments to address access, care coordination, dispensing, delivery, and clinical management of pharmaceutical products ranging from "specialty-lite" to general maintenance conditions.

Prior to acquiring Wood Sage, LLC, we did not generate revenue. As discussed above, we acquired Wellgistics Tech & Hub and Wellgistics Pharmacy through our acquisition of Wood Sage, LLC in June 2024, and acquired Wellgistics, LLC in August 2024. Currently, our revenues are derived from (i) pharmaceutical dispensing of products, (ii) care management services we deliver to patients and offer to pharmaceutical manufacturing clients, (iii) SaaS fees for use of our platform technology services, and (iv) product procurement and distribution to independent pharmacies.

We expect that our ability to source and distribute pharmaceutical products to our pharmacy and network of independent pharmacy partners throughout the U.S. will adequately position us to negotiate greater discounts based on market share. Our management believes that our digital pharmacy, including its hub and clinical services technology platform, is poised to add significant value in the key specialty-lite market by providing patients access and convenience, while providing partners with ready-to-go market solutions with big data.

Data released from the Centers for Medicare & Medicaid Services illustrates that the National Health Expenditure Data for 2022 grew to $4.5 trillion and accounted for 17.3% of gross domestic product ("GDP"), with an expected increase in the health spending share of GDP to 19.7% by 2032. A deeper dive of this report reveals that total retail prescription drug spending from 2021 to 2022 increased by 8.4% to $405.9 billion. IQVIA'S 2024 report on medicine spending trends found that overall spending in the U.S. market for medicines reached $435 billion in 2023. It is well documented in the literature that the specialty drug market accounts for less than 10% of total drugs in the market but is responsible for greater than 50% of the prescription drug spend per annum. After evaluating reasons for increased healthcare expenditure, poor medication adherence continues to be a challenge that causes unnecessary strain on the healthcare system, including, but not limited to, increased hospital admissions and readmissions rates from medication non-compliance and adverse events. Many of these factors are preventable by empowering patient autonomy in their healthcare journey, identifying cost savings opportunities, and providing access to clinical resources and support.

We believe that our business model primely positions us to address the prescription spend in the "specialty lite" therapy area while improving patient health outcomes by equipping patients with our innovative digital health tools. We seek to expand the service coverage area of our pharmacy operations while strengthening its clinical expertise in several key therapeutic categories, including services such as care coordination and patient financial assistance. Furthermore, we expect that our partner relationships will enable us to offer a competitive cash formulary as an alternative option when high insurance deductibles make it economically feasible. We anticipate expanding our wholesale operations as we continue to partner and establish new manufacturer relationships. With many of these new relationships, we intend to provide sales and clinical education support to the pharmacies purchasing these products. We have strategically identified opportunities to wholesale products that are normally not carried by the three largest wholesalers in the United States, and will seek to carve out exclusivity or semi- exclusive relationships based on a time period to ensure we are maximizing our revenues. We expect that new partnerships with group purchasing organizations will be effective, as we increase the business divisions' visibility with all or many of the member pharmacies. Our technology division will be connected to our pharmacy network enabling us to operate as a digital pharmacy and hub. Our pharmacy network leverages independent, locally-owned pharmacies that are rooted in their communities to create a powerful network of over 19,000 pharmacies across the United States capable of delivering prescriptions in hours. This channel services approximately 1.3 billion prescriptions annually and represents a $47 billion market at wholesale cost.

We seek to provide an end-to-end solution for digitizing the prescription journey through our Wellgistics Tech & Hub mobile application, which should help to preserve patient autonomy, improve prescription price transparency, and provide additional concierge services in an effort to boost medication adherence and improve patient outcomes. We intend to aggregate the data collected from our solution to provide comprehensive reports that are tied to medication adherence and outcomes to make a meaningful impact for all stakeholders involved. We expect to monetize this valuable data with manufacturers, payors and providers.

**Key Components of Results of Operations**

We are an early-stage company, and our historical results may not be indicative of our future results for reasons that may be difficult to anticipate. Accordingly, the drivers of our future financial results, as well as the components of such results, may not be comparable to our historical or future results of operations.

***Revenues***

Wellgistics Health is a holding company specifically formed to hold operating companies. We did not generate any revenue prior to the Wood Sage Acquisition, but now expect to generate all of our revenues through Wellgistics Pharmacy, and Wellgistics LLC. Although Wellgistics Health may add other sources of revenue through the acquisition of other operating companies in the future, Wellgistics Health currently does not have any such plans.

Wellgistics Health will be subject to risk of specific inflationary pressures on product prices and its impact on consumer spending. For example, increases in prescription drug costs could impact consumers ability to afford initial or on-going therapy. Wellgistics Health's focus on the relatively expensive specialty lite business segment (i.e., $500 - $3,000 therapies) could be particularly impacted by increasing costs. Additionally, consumer discretionary funds could be reduced, impacting the ability to pay for digital services and subscription models that Wellgistics Health offers. If inflation continues to increase, sourcing and procuring specialty lite products may prove to be capital intensive. Wellgistics Health may not be able to adjust prices sufficiently to offset the effect without negatively impacting consumer demand or Wellgistics Health's gross margin. All of these inflationary risk factors could materially and adversely impact Wellgistics Health's business operations, financial condition and results of operations.

Wellgistics Pharmacy recognizes product revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, when we transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Wellgistics Pharmacy fills prescriptions for prescription and over-the-counter drugs written by a provider and recognizes revenue at the time the patient confirms the prescription order for payment of co-pays.

***Expenses***

*Sales and Marketing Expense*

Sales and marketing expenses consist of personnel and personnel-related expenses, including stock-based compensation for our business development team as well as trade events participation, public relations, white paper development, social media, pharmacy trade and patient materials, advertising, sales collateral, syndicated data fees, and other marketing expenses. We expect to increase our sales and marketing activities to grow our customer base and increase market share. We also expect that our sales and marketing expenses will increase over time as we continue to hire additional personnel to scale the business.

*General and Administrative Expense*

General and administrative expenses currently consist of business development, consulting, and information technology development and support and third-party software expenses.

General and administrative expenses consist primarily of personnel-related costs (including salaries, bonuses, benefits, and stock-based compensation expense) for personnel in executive, finance, accounting, corporate development and other administrative functions. General and administrative expenses will also include legal fees, professional fees paid for accounting, auditing, consulting, tax, and investor relations services, insurance costs, facility costs not otherwise included in research and development expenses. Following Wellgistics Health's registration as a public company, also include public company expenses such as costs associated with compliance with the rules and regulations of the SEC and the stock exchange.

*Income Tax (Benefit) Expense*

Our income tax provision will consist of an estimate for U.S. federal and state income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities, and changes in the tax law. We will maintain a valuation allowance against the full value of our U.S. and state net deferred tax assets because we believe the recoverability of the tax assets is more likely than not.

**Results of Operations**

***For the Three Months Ended March 31, 2026 and 2025***

 ****

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Net revenues | $1559563 | $10863443 |
| Cost of revenues | 1389342 | 10170802 |
| Gross profit | 170221 | 692641 |
| General and administrative | 4868935 | 31172920 |
| Sales and marketing | 960000 | 65217 |
| Depreciation and amortization | 356824 | 802872 |
| Total operating expenses | 6185759 | 32041009 |
| Loss from operations | (6015538) | (31348368) |
| Total other income (expense) | (1727059) | (1082535) |
| Net loss | $(7742597) | $(32430903) |

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*Revenues and Cost of Revenues*

Net revenues for the three months ended March 31, 2026 were $1,559,563 compared to $10,863,443 for the three months ended March 31, 2025, a decrease of $9,303,880, or approximately 85.6%. The decrease was primarily driven by a significant decline in distribution revenues within the Wellgistics, LLC, reflecting the impact of liquidity constraints that limited the Company's ability to procure and fulfill product orders during the period. These decreases were partially offset by growth in pharmacy retail revenues, which increased to $1,134,416 for the three months ended March 31, 2026 from $114,676 for the three months ended March 31, 2025, reflecting continued expansion of the Company's pharmacy operations.

Cost of revenues for the three months ended March 31, 2026 was $1,389,342, compared to $10,170,802 for the three months ended March 31, 2025, a decrease of $8,781,460, or approximately 86.3%. The decrease was primarily attributable to the lower volume of distribution activity during the period, consistent with the decline in net revenues.

Gross profit for the three months ended March 31, 2026 was $170,221, compared to gross profit of $692,641 for the three months ended March 31, 2025, a decrease of $522,420, or approximately 75.4%. Gross margin was 10.9% for the three months ended March 31, 2026 compared to 6.4% for the three months ended March 31, 2025. The improvement in gross margin percentage reflects the increased contribution of pharmacy retail revenues, which carry higher margins than the distribution segment, partially offset by the lower overall revenue base.

The following is a summary of the disaggregation of revenue for the three months ended March 31, 2026 and 2025:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Product revenue - distribution services | $225665 | $10668287 |
| Pharmacy retail sales | 1134416 | 114676 |
| Third party logistics services | 199482 | 80480 |
| &nbsp;&nbsp;&nbsp;Net revenues | $1559563 | $10863443 |

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*General and Administrative Expense*

General and administrative expenses for the three months ended March 31, 2026 were $4,868,935 compared to $31,172,920 for the three months ended March 31, 2025, a decrease of $26,303,985, or approximately 84.4%. The decrease was primarily attributable to a significant reduction in non-cash stock-based compensation expense. For the three months ended March 31, 2025, the Company recognized approximately $27.2 million in stock-based compensation expense, including $27 million related to the immediate vesting of 9,363,617 restricted shares granted on March 14, 2025. No comparable non-recurring stock-based compensation charges were incurred during the three months ended March 31, 2026. Excluding non-cash stock-based compensation, general and administrative expenses increased period over period, reflecting higher professional fees, legal costs, and administrative costs associated with the Company's ongoing operations as a public company.

*Sales and Marketing Expense*

Sales and marketing expenses for the three months ended March 31, 2026 were $960,000 compared to $65,217 for the three months ended March 31, 2025, an increase of $894,783. The increase was primarily attributable to increased investment in brand awareness, customer acquisition initiatives, and market development activities as the Company continues to expand its commercial presence across its pharmacy and distribution segments.

*Depreciation and Amortization*

Depreciation and amortization expense for the three months ended March 31, 2026 was $356,824 compared to $802,872 for the three months ended March 31, 2025, a decrease of $446,048, or approximately 55.6%. The decrease was primarily attributable to the impairment of goodwill and intangible assets recognized during the year ended December 31, 2025.

*Other Expense, net*

Interest expense for the three months ended March 31, 2026 was $2,072,679 compared to $1,094,490 for the three months ended March 31, 2025, an increase of $978,189, or approximately 89.4%. The increase was primarily attributable to amortization of debt discount on the convertible notes issued in January 2026, amortization of debt discount on the merchant cash advance, and the write-off of the remaining unamortized debt discount upon full repayment of the Agile Capital Funding LLC arrangement during the period.

During the three months ended March 31, 2026, the Company recognized a gain on extinguishment of vendor obligations of $259,880, resulting from the settlement of certain accounts payable and notes payable balances through the issuance of shares of common stock to Silverback Capital Corporation at a fair value below the carrying amount of the settled obligations.

Settlement fees of $13,000 were recognized during the three months ended March 31, 2026 in connection with the Silverback Capital Corporation settlement arrangement. There were no comparable amounts for the three months ended March 31, 2025.

Other income for the three months ended March 31, 2026 was $98,740 compared to $11,955 for the three months ended March 31, 2025, an increase of $86,785. The increase was primarily attributable to settlements reached with certain counterparties in the ordinary course of business during the three months ended March 31, 2026.

*Net Loss*

Net loss for the three months ended March 31, 2026 was $7,742,597 compared to $32,430,903 for the three months ended March 31, 2025, an improvement of $24,688,306, or approximately 76.1%. The improvement was primarily driven by the reduction in non-cash stock-based compensation expense of approximately $27.0 million, partially offset by lower gross profit and higher interest expense during the period.

***Liquidity and Capital Resources***

As of March 31, 2026, the Company had cash and cash equivalents of $51,730 and a working capital deficit of $29,437,191. The Company has incurred net losses of $7,742,597 and $32,430,903 for the three months ended March 31, 2026 and 2025, respectively, and has an accumulated deficit of $118,774,287 as of March 31, 2026. These factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty.

The Company has funded its operations primarily through the issuance of debt and equity securities. Management is actively pursuing additional sources of capital, including equity financing, debt arrangements, and strategic partnerships, to fund ongoing operations and working capital requirements. However, there can be no assurance that such financing will be available on acceptable terms or at all.

 ****

The following table summarizes our cash flows from operating, investing, and financing activities for the three months ended March 31, 2026 and 2025 :

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| | | |
|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |
|  | **March 31,** | **March 31,** |
|  | **2026** | **2025** |
| Net cash used in operating activities | $(3413129) | $(1347449) |
| Net cash used in investing activities | $(205098) | $(273133) |
| Net cash provided by financing activities | $3627386 | $3108831 |
| Net change in cash and cash equivalents | $9159 | $1488249 |

---

 

*Cash used in operating activities*

Net cash used in operating activities for the three months ended March 31, 2026 was $3,413,129, primarily reflecting the Company's net loss of $7,742,597, partially offset by non-cash charges totaling $3,034,024 and net cash provided by changes in operating assets and liabilities of $1,295,444. Non-cash charges consisted principally of $1,485,618 in amortization of debt discount, $1,357,764 in stock-based compensation, $328,962 in amortization of intangible assets, $93,698 in allowance for credit losses, and $27,862 in depreciation, partially offset by a gain on extinguishment of vendor obligations of $259,880. Changes in operating assets and liabilities provided net cash of $1,295,444, driven primarily by an increase in accounts payable of $1,472,242 and an increase in accrued expenses and other liabilities of $90,060, partially offset by a net decrease in amounts due from and to related parties of $229,200.

Net cash used in operating activities for the three months ended March 31, 2025 was $1,347,449, primarily due to the net loss of $32,430,903, partially offset by non-cash expenses of $28,674,553, principally consisting of stock-based compensation of $27,773,421, and net cash provided by changes in operating assets and liabilities of $2,408,901, driven primarily by an increase in accounts payable of $1,876,683.

*Cash used in investing activities*

Net cash used in investing activities for the three months ended March 31, 2026 was $205,098, consisting entirely of capitalized software development costs related to the Company's DelivMeds platform.

Net cash used in investing activities for the three months ended March 31, 2025 was $273,133, consisting of payments made for capitalized software development costs.

*Cash from financing activities*

Net cash provided by financing activities for the three months ended March 31, 2026 was $3,627,386. Cash inflows during the period consisted primarily of $6,002,500 in net proceeds from the issuance of secured convertible promissory notes in January 2026. These inflows were partially offset by $2,104,557 in repayments of the Agile Capital Funding LLC term loan, $143,525 in repayments under the revolving line of credit, $90,281 in repayments under the merchant cash advance agreement, and $36,751 in repayments of promissory notes.

Net cash provided by financing activities for the three months ended March 31, 2025 was $3,108,831, driven primarily by gross proceeds of $4,000,000 from the issuance of common stock in connection with the Company's initial public offering, $615,000 from the issuance of promissory notes, and $471,158 in net proceeds from a merchant cash advance agreement. These inflows were partially offset by $1,598,196 in offering costs and repayments of notes payable and the revolving line of credit.

**Off-Balance Sheet Arrangements**

During the periods presented, we did not have, nor do we currently have, any off-balance sheet arrangements as defined under SEC rules.

**Critical Accounting Policies and Estimates**

Our financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP. Preparation of the financial statements requires our management to make a number of judgments, estimates and assumptions relating to the reported amount of expenses, assets and liabilities and the disclosure of contingent assets and liabilities. We consider an accounting judgment, estimate or assumption to be critical when (i) the estimate or assumption is complex in nature or requires a high degree of judgment and (ii) the use of different judgments, estimates and assumptions could have a material impact on our consolidated financial statements. Our significant accounting policies are described in Note 1 to our financial statements included elsewhere in this proxy statement/prospectus.

Our critical accounting policies include:

***Revenue Recognition***

The Company adopted Accounting Standards Codification ("ASC") 606 upon inception.

To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract was determined to be within the scope of ASC 606, the Company assessed the goods or services promised within each contract and determined those that were performance obligations, and assessed whether each promised good or service was distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. The Company recognizes revenue at the point of sale. The majority of orders are placed via the Company's website. Customers generally pay by credit card at the time they place their order. The Company does have larger customers to whom they have extended terms for payment. Generally, payments from these customers are due within 30 days of their order being shipped. However, a few customers have been given terms extending out to 45 days.

*Distribution*

Wellgistics, LLC provides distribution and third party logistics services to both pharmaceutical manufacturers and independent retail pharmacies. The Company recognizes revenue when goods are delivered to the customer. The gross product revenues are subject to a variety of deductions, which generally are estimated and recorded in the same period that the revenues are recognized. Such variable consideration represents chargebacks, rebates, sales allowances and sales returns. These deductions represent estimates of the related obligations and, as such, knowledge and judgment are considered when estimating the impact of these revenue deductions on gross sales for a reporting period. All revenue for the Company is recognized at the point-in-time when delivered to customer based on contractual obligations. Any amount collected from customers for goods not yet delivered is recorded as unearned revenue.

*Wellgistics Pharmacy*

The Company is in the retail pharmacy business. and fills prescriptions for drugs written by a doctor and recognizes revenue at the time the patient confirms delivery of the prescription. Customer returns are not material. The following are the steps taken to recognize revenue.

Step One: Identify the contract with the customer — The prescription is written by a doctor for a customer and delivered to the Company. The prescription identifies the performance obligations in the contract. The Company fills the prescription and delivers the prescription to the customer, fulfilling the contract. The collection is probable because there is confirmation that the customer has insurance for the reimbursement to the Company prior to filling of the prescription.

Step Two: Identify the performance obligations in the contract — Each prescription is distinct to the customer.

Step Three: Determine the transaction price — The consideration is not variable. The transaction price is determined to be the price of the prescription at the time of delivery which considers the expected reimbursements from third party payors (e.g., pharmacy benefit managers, insurance companies and government agencies).

Step Four: Allocate the transaction price — The price of the prescription invoiced represents the expected amount of reimbursement from third party payors. There is no difference between contract price and "stand-alone selling price".

Step Five: Recognize revenue when or as the entity satisfies a performance obligation — Revenue is recognized upon the delivery of the prescription.

***Business Combinations***

The Company accounts for acquisitions in which it obtains control of one or more businesses as a business combination. The purchase price of the acquired businesses is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recognized as goodwill. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments, in the period in which they are determined, to the assets acquired and liabilities assumed with the corresponding offset to goodwill. If the assets acquired are not a business, the Company accounts for the transaction or other event as an asset acquisition. Under both methods, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity. In addition, for transactions that are business combinations, the Company evaluates the existence of goodwill or a gain from a bargain purchase.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

The Company is not required to provide the information required by this Item 3 as it is a "smaller reporting company," as defined in Rule 12b-2 of the Exchange Act.

**Item 4. Controls and Procedures.**

**Evaluation of Disclosure Controls and Procedures**

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

As required by Rule 13a-15(b) under the Exchange Act, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2026. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of March 31, 2026, due to the material weaknesses in our internal control over financial reporting described below.

*Material Weaknesses in Internal Control Over Financial Reporting*

 

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, management identified material weaknesses in the following components of the COSO framework: control environment, risk assessment, control activities, information and communication, and monitoring. Specifically, the material weaknesses identified relate to the fact that the Company has not yet designed and maintained an effective control environment commensurate with its financial reporting requirements, including: (a) the Company has not yet completed formally documenting policies and procedures with respect to review, supervision, and monitoring of the Company's accounting and reporting functions; (b) lack of evidence to support the performance of controls and the adequacy of review procedures, including the completeness and accuracy of information used in the performance of controls; and (c) the Company has limited accounting personnel and other supervisory resources necessary to adequately execute its accounting processes and address its internal controls over financial reporting.

*Plan for Remediation*

 

To remediate these material weaknesses, management has implemented or is in the process of implementing the following measures: (i) hiring additional accounting personnel with appropriate technical expertise in U.S. GAAP and SEC reporting; (ii) enhancing internal review procedures for complex accounting transactions; (iii) providing targeted training to existing finance staff on U.S. GAAP and SEC reporting requirements; and (iv) upgrading to NetSuite's enterprise resource planning system to improve the consistency and accuracy of financial data and reporting processes. Management will continue to monitor the effectiveness of these remediation efforts. However, the material weaknesses will not be considered fully remediated until the applicable controls operate effectively for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

**Changes in Internal Control Over Financial Reporting**

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting, other than the remediation measures described above that remain in progress.

**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings.**

None.

**Item 1A. Risk Factors.**

Except with respect to the Company's on-going liquidity needs, there were no material changes in the risk factors we previously disclosed in Item 1A to Part I of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on March 20, 2026.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

**Unregistered Sales of Equity Securities**

Set forth below is information regarding securities that we issued during the three months ended March 31, 2026, that were not registered under the Securities Act of 1933, as amended (the "Securities Act"). Also included is the consideration received by us for such securities and information relating to the section of the Securities Act, or rule of the SEC, under which exemption from registration was claimed.

On January 13, 2026, the Company issued 1,224,489 shares of common stock to Hudson Global Ventures, LLC as consideration for consulting services rendered to the Company.

On January 16, 2026, in connection with the issuance of secured convertible promissory notes, the Company issued warrants to purchase an aggregate of 1,097,640 shares of common stock to Dawson James Securities, Inc. and its designees, at an exercise price of $0.41 per share, expiring January 20, 2031.

On February 12, 2026, the Company issued 2,340,000 shares of common stock to Silverback Capital Corporation pursuant to a court-approved settlement agreement under Section 3(a)(10) of the Securities Act.

On March 9, 2026, the Company issued 4,126,000 shares of common stock to Silverback Capital Corporation pursuant to the settlement agreement described above.

On March 18, 2026, the Company issued an aggregate of 10,000,000 shares of common stock and 10,000,000 warrants to Suren Ajjarapu and Prashant Patel in settlement of accrued compensation obligations, exercisable at $0.01 per share and expiring March 18, 2031.

On March 23, 2026, the Company issued 400,000 shares of common stock to Silverback Capital Corporation as consideration for settlement and legal fees incurred in connection with the settlement arrangement.

The foregoing issuances, other than the shares issued to Silverback Capital Corporation pursuant to the court-approved settlement agreement under Section 3(a)(10) of the Securities Act, were not registered under the Securities Act in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act. The shares issued to Silverback Capital Corporation were issued in reliance on the exemption from registration provided by Section 3(a)(10) of the Securities Act based upon the fairness determination made by the Circuit Court of the Twelfth Judicial Circuit in and for Desoto County, Florida. In each transaction, we did not engage in any general solicitation or advertising and we offered the securities to a limited number of persons with whom we had pre-existing relationships. We exercised reasonable care to ensure that the purchasers of securities were not underwriters within the meaning of the Securities Act, including making reasonable inquiry prior to the issuances, making written disclosure regarding the restricted nature of the securities, and placing a legend on the certificates representing the shares. The recipients of securities in each of these transactions acquired the securities for investment purposes only and not with a view to or for sale in connection with any distribution thereof. No underwriters were involved in the above transactions, other than Dawson James Securities, Inc. acting as placement agent in connection with the convertible note offering.

**Repurchases**

None.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

During the quarter ended March 31, 2026, none of the Company's directors or officers adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement," as those terms are defined in Item 408(a) of Regulation S-K.

**Item 6. Exhibits.**

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | <br>**Description** |
| 2.1\*\* | [Amended and Restated Membership Interest Purchase Agreement dated June 16, 2024, by and between Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) and Nikul Panchal (incorporated by reference to Exhibit 10.1 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224028706/ex10-1.htm) |
| 2.2\*\* | [Membership Interest Purchase Agreement dated May 11, 2023, by and among Wellgistics Health, Inc. (f/k/a Danam Health, Inc.), Wellgistics, LLC, Strategix Global LLC, Nomad Capital LLC, Jouska Holdings LLC, and Brian Norton, as amended (incorporated by reference to Exhibit 5.2 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on March 6, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315225009442/ex5-2.htm) |
| 2.3\*\* | [Seventh Amendment to Membership Interest Purchase Agreement dated May 11, 2023, by and among Wellgistics Health, Inc. (f/k/a Danam Health, Inc.), Wellgistics, LLC, Strategix Global LLC, Nomad Capital LLC, Jouska Holdings LLC, and Brian Norton, as amended (incorporated by reference to Exhibit 2.1 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on April 18, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000164117225005404/ex2-1.htm) |
| 2.4\*\* | [Agreement and Plan of Merger dated April 8, 2025, by and among Wellgistics Health, Inc., Wellpeek Merger Sub 1, Inc., Wellpeek Merger Sub 2, LLC, Peek Healthcare Technologies, Inc., and the Stockholder Representative (incorporated by reference to Exhibit 2.1 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on April 11, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000164117225003835/ex2-1.htm) |
| 3.1 | [Certificate of Incorporation of Wellgistics Health, Inc., as amended and currently in effect (incorporated by reference to Exhibit 3.1 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224043713/ex3-1.htm) |
| 3.2 | [Bylaws of Wellgistics Health, Inc. as currently in effect (incorporated by reference to Exhibit 3.2 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224028706/ex3-2.htm) |
| 10.1 | [Form of Lock-Up Agreement (incorporated by reference to Exhibit 1.1 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224038464/ex1-1.htm) |
| 10.2† | [Second Amended and Restated 2023 Equity Incentive Plan (incorporated by reference to Exhibit 10.4 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025)](https://www.sec.gov/Archives/edgar/data/2030763/000149315224043713/ex10-4.htm) |
| 10.3† | [Executive Employment Agreement dated January 1, 2023, by and between Suren Ajjarapu and Wellgistics Health, Inc. (incorporated by reference to Exhibit 10.6 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224028706/ex10-6.htm) |
| 10.4† | [Executive Employment Agreement dated January 1, 2023, by and between Dr. Shafaat Pirani and Wellgistics Health, Inc. (incorporated by reference to Exhibit 10.7 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224028706/ex10-7.htm) |
| 10.5† | [Executive Employment Agreement dated January 1, 2023, by and between Prashant Patel and Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) (incorporated by reference to Exhibit 10.8 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224028706/ex10-8.htm) |
| 10.6† | [Executive Employment Agreement dated January 1, 2023, by and between Nikul Panchal and Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) (incorporated by reference to Exhibit 10.9 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224028706/ex10-9.htm) |
| 10.7† | [Executive Employment Agreement dated March 3, 2025, by and between Wellgistics Health, Inc. and Brian Norton (incorporated by reference to Exhibit 5.1 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on March 6, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315225009442/ex5-1.htm) |
| 10.8† | [Indemnification Agreement dated January 9, 2024, by and between Tim Canning and Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) (incorporated by reference to Exhibit 10.10 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025)](https://www.sec.gov/Archives/edgar/data/2030763/000149315224028706/ex10-10.htm) |
| 10.9† | [Contract Agreement dated April 15, 2024, by and between Aletheia Strategic Advisory LLC and Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) (incorporated by reference to Exhibit 10.11 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224041640/ex10-11.htm) |

---

10.10 [Lease Agreement dated March 23, 2024, by and between GVI-IP TAMPA OFFICE OWNER, LLC and Wellgistics, LLC and Wellgistics Health, Inc (f/k/a Danam Health, Inc.) (incorporated by reference to Exhibit 10.12 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025)](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-12.htm)

10.11 [Promissory Note dated August 22, 2023, made by Wood Sage, LLC in favor of Integral Health, Inc. (incorporated by reference to Exhibit 10.13 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-13.htm)

10.12 [Promissory Note dated January 12, 2024, made by Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) in favor of Strategic EP LLC (incorporated by reference to Exhibit 10.14 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-14.htm)

10.13 [Promissory Note effective September 14, 2023, made by TRxADE, Inc. in favor of Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) Promissory Note effective September 14, 2023, made by TRxADE, Inc. in favor of Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) (incorporated by reference to Exhibit 10.15 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-15.htm)

10.14 [Promissory Note dated September 13, 2023, made by Wellgistics Health, Inc. (f/k/a Danam Health, Inc.) in favor of Nomad Capital LLC (incorporated by reference to Exhibit 10.16 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-16.htm)

10.15 [Loan and Security Agreement dated November 22, 2024, by and between Marco Capital, Inc. and Wellgistics, LLC (incorporated by reference to Exhibit 10.17 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-17.htm)

10.16 [Guaranty Agreement dated as of November 22, 2024, by Wellgistics Health, Inc. (formerly Danam Health, Inc.) in favor of Marco Capital, Inc. (incorporated by reference to Exhibit 10.18 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-18.htm)

10.17 [Roadie, Inc. Services Agreement dated July 12, 2023, by and between Roadie, Inc. and Alliance Pharma Solutions, LLC dba DelivMeds (incorporated by reference to Exhibit 10.19 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-19.htm)

10.18 [Integration and Delivery Services Agreement dated January 26, 2022, by and between Lyft Healthcare, Inc. and Alliance Pharma Solutions, LLC d/b/a DelivMeds (incorporated by reference to Exhibit 10.20 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-20.htm)

10.19 [Master Services Agreement dated November 20, 2023, by and between Best Computer Systems, Inc. d/b/a BestRx Pharmacy Software and DelivMeds (incorporated by reference to Exhibit 10.21 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-21.htm)

10.20 [340B Contract Pharmacy Services Agreement dated April 1, 2021, by and between Community Specialty Pharmacy, LLC and AIDS Service Association of Pinellas, Inc. dba EPIC (incorporated by reference to Exhibit 10.22 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-22.htm)

10.21 [Participating Pharmacy Agreement dated February 6, 2023, by and between Medzoomer, Inc. and Community Specialty Pharmacy Inc. (incorporated by reference to Exhibit 10.23 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-23.htm)

10.22 [Standard Merchant Cash Advance Agreement dated October 1, 2024, by and between Cedar Advance LLC and Wellgistics LLC / Danam Health, Inc. (incorporated by reference to Exhibit 10.24 of Wellgistics Health, Inc.'s amended Registration Statement on Form S-1/A filed with the SEC on January 14, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315224049098/ex10-24.htm)

10.23 [Consulting Agreement dated February 25, 2025, by and between Wellgistics Health, Inc. and Hudson Global Ventures, LLC (incorporated by reference to Exhibit 1.1 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on February 28, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315225008723/ex1-1.htm)

10.24 [Consulting Agreement by and between Wellgistics Health, Inc. and Draper, Inc. dated March 17, 2025 (incorporated by reference to Exhibit 10.1 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on March 21, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000149315225011154/ex10-1.htm)

---

| | |
|:---|:---|
| 10.25 | [Promissory Note made by Wellgistics Health, Inc. dated April 4, 2025 (incorporated by reference to Exhibit 10.1 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on April 11, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000164117225003835/ex10-1.htm) |
| 10.26 | [Equity Purchase Agreement by and between Wellgistics Health, Inc. and Hudson Global Ventures, LLC, dated April 9, 2025 (incorporated by reference to Exhibit 10.2 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on April 11, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000164117225003835/ex10-2.htm) |
| 10.27 | [Registration Rights Agreement by and between Wellgistics Health, Inc. and Hudson Global Ventures, LLC, dated April 9, 2025 (incorporated by reference to Exhibit 10.3 of Wellgistics Health, Inc.'s Current Report on Form 8-K filed with the SEC on April 11, 2025).](https://www.sec.gov/Archives/edgar/data/2030763/000164117225003835/ex10-3.htm) |
| 31.1\* | [Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31-1.htm) |
| 31.2\* | [Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex31-2.htm) |
| 32.1\* | [Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-1.htm) |
| 32.2\* | [Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32-2.htm) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101) |
| \* | Furnished herewith. |
| \*\* | As permitted by Regulation S-K, Item 601(b)(10)(iv) of the Securities Exchange Act of 1934, as amended, certain confidential portions of this exhibit have been redacted from the publicly filed document. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon its request. |
| † | Indicates a management contract or any compensatory plan, contract or arrangement. |

---

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **WELLGISTICS HEALTH, INC.** | **WELLGISTICS HEALTH, INC.** |
| Date: May 19, 2026 |  |  |
|  | By: | */s/ Prashant Patel* |
|  | Name : | Prashant Patel |
|  | Title: | Principal Executive Officer |
|  | By: | */s/ Eric Sherb* |
|  | Name: | Eric Sherb |
|  | Title: | Chief Financial Officer |
|  |  | (Principal Financial Officer and Accounting Officer) |
| Date: May 19, 2026 |  |  |

---

## Exhibit 31.1

**Exhibit 31.1**

**Certification of Chief Executive Officer**

I, Prashant Patel, certify that:

1. I
 have reviewed this Quarterly Report on Form 10-Q of Wellgistics Health, Inc. (the " <u>registrant</u> ");

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange
 Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The
 registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
 reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing
 the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| |
|:---|
| Date: May 19, 2026 |
| */s/ Prashant Patel* |
| Prashant Patel |
| Chief Executive Officer (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**Certification of Chief Financial Officer**

I, Eric Sherb, certify that:

1. I
 have reviewed this Quarterly Report on Form 10-Q of Wellgistics Health, Inc. (the " <u>registrant</u> ");

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange
 Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's
 most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
 or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The
 registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
 reporting, to the registrant's auditors and the audit committee of the registrant's Board of Directors (or persons performing
 the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| |
|:---|
| Date: May 19, 2026 |
| */s/ Eric Sherb* |
| Eric Sherb |
| Chief Financial Officer (Principal Financial Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**Certification of Chief Executive Officer**

**Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002**

I, Prashant Patel, Chief Executive Officer of Wellgistics Health, Inc. (the "<u>Company</u>"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2026 (the " <u>Report</u> "), fully complies
 with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, and

(ii) The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company at the dates and for the periods indicated.

---

| |
|:---|
| Date: May 19, 2026 |
| */s/ Prashant Patel* |
| Prashant Patel |
| Chief Executive Officer (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**Certification of Chief Financial Officer**

**Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002**

I, Eric Sherb, Chief Financial Officer of Wellgistics Health, Inc. (the "<u>Company</u>"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2026 (the " <u>Report</u> "), fully complies
 with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, and

(ii) The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company at the dates and for the periods indicated.

---

| |
|:---|
| Date: May 19, 2026 |
| */s/ Eric Sherb* |
| Eric Sherb |
| Chief Financial Officer (Principal Financial Officer) |

---