# EDGAR Filing Document

**Accession Number:** 0001847345
**File Stem:** 0001493152-26-023802
**Filing Date:** 2026-5
**Character Count:** 225988
**Document Hash:** c57f24f81f4acadb8ecaab51915e3a2a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-023802.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001493152-26-023802

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 65

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Aspire Biopharma Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001847345
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41293
- **FILM NUMBER:** 26987831

**BUSINESS ADDRESS:**
- **STREET 1:** 23150 FASHION DRIVE, SUITE 232
- **CITY:** ESTERO
- **STATE:** FL
- **ZIP:** 33928
- **BUSINESS PHONE:** 561-704-8527

**MAIL ADDRESS:**
- **STREET 1:** 23150 FASHION DRIVE, SUITE 232
- **CITY:** ESTERO
- **STATE:** FL
- **ZIP:** 33928

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PowerUp Acquisition Corp.
- **DATE OF NAME CHANGE:** 20210222

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PowsedrUp Acquisition Corp.
- **DATE OF NAME CHANGE:** 20210222

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

(Mark One)

**☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

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

**☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from to**

**Commission File No. 001-41293**

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| |
|:---|
| **ASPIRE BIOPHARMA HOLDINGS, INC.** |
| (Exact name of registrant as specified in its charter) |

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| | |
|:---|:---|
| **Delaware** | **33-3467744** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |

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| |
|:---|
| **23150 Fashion Drive, Suite 232**<br> **Estero, Florida 33928** |
| (Address of Principal Executive Offices, including zip code) |

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| |
|:---|
| **Tel: (908) 987-3002** |
| (Registrant's telephone number, including area code) |

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

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Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.0001 per share | ASBP | The Nasdaq Stock Market LLC |
| Warrants, each exercisable for one share of common stock | ASBPW | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all 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 registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions 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 registrant 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 check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

As of May 13, 2026 there were 1,295,234 shares of Common Stock, par value $0.0001 per share and 20,198 warrants, each exercisable for one share of Common Stock issued and outstanding.

**ASPIRE BIOPHARMA HOLDINGS, INC.**

**FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2026**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| [PART 1 – FINANCIAL INFORMATION](#sw_001) | [PART 1 – FINANCIAL INFORMATION](#sw_001) |  |
| Item 1. | [Financial Statements (Unaudited)](#sw_001) | 3 |
|  | [Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025](#sw_003) | 3 |
|  | [Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025](#sw_004) | 4 |
|  | [Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) for the three months ended March 31, 2026 and 2025](#sw_005) | 5 |
|  | [Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025](#sw_006) | 6 |
|  | [Notes to Condensed Consolidated Financial Statements](#sw_007) | 7 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#sw_008) | 30 |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#sw_009) | 52 |
| Item 4. | [Controls and Procedures](#sw_010) | 52 |
| [PART II – OTHER INFORMATION](#sw_011) | [PART II – OTHER INFORMATION](#sw_011) |  |
| Item 1. | [Legal Proceedings](#sw_012) | 53 |
| Item 1A. | [Risk Factors](#sw_013) | 53 |
| Item 2. | [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](#sw_014) | 53 |
| Item 3. | [Defaults Upon Senior Securities](#G_001) | 53 |
| Item 4. | [Mine Safety Disclosures](#G_002) | 53 |
| Item 5. | [Other Information](#sw_015) | 53 |
| Item 6. | [Exhibits](#sw_016) | 53 |
| [SIGNATURES](#sig_001) | [SIGNATURES](#sig_001) | 54 |

---

**PART I – FINANCIAL INFORMATION**

**Item 1. Financial statements (Unaudited)**

**ASPIRE BIOPHARMA HOLDINGS, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
|  | **(Unaudited)** | |
| **ASSETS** |  |  |
| **CURRENT ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5857024 | $1003904 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 890149 | 55102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 369974 | 253160 |
| **Total current assets** | 7117147 | 1312166 |
| **TOTAL ASSETS** | $7117147 | $1312166 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** |  |  |
| **CURRENT LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $857925 | $1014377 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 441614 | 1008569 |
| &nbsp;&nbsp;&nbsp;Due to affiliate | 353679 | 353679 |
| &nbsp;&nbsp;&nbsp;Notes payable – related party |  | 885564 |
| &nbsp;&nbsp;&nbsp;Promissory note fee – related party | 1000000 | 1000000 |
| &nbsp;&nbsp;&nbsp;Derivative liability |  | 40954 |
| &nbsp;&nbsp;&nbsp;Loan and transfer notes payable – related party | 499214 | 499214 |
| &nbsp;&nbsp;&nbsp;Subscription agreement loans |  | 1500000 |
| &nbsp;&nbsp;&nbsp;Convertible note | - | 1290476 |
| Total current liabilities | 3152432 | 7592833 |
| &nbsp;&nbsp;&nbsp;Forward purchase agreement liability | 96252 | 95662 |
| TOTAL LIABILITIES | 3248684 | 7688495 |
| COMMITMENTS AND CONTINGENCIES (Note 7) |  |  |
| STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock; $0.0001 par value,10,000,000 shares authorized; 25,000 designated as Series A convertible preferred stock and none issued or outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Series A convertible preferred stock, 25,000 shares as designated, $0.0001 par value; 13,750 and 0 shares issued or outstanding at March 31, 2026 and December 31, 2025, respectively | 1 |  |
| &nbsp;&nbsp;&nbsp;Common stock; $0.0001 par value; 490,000,000 shares authorized; 167,470 and 117,780 issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 17 | 12 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 34349418 | 20881740 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (30480973) | (27258081) |
| TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | 3868463 | (6376329) |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** | $7117147 | $1312166 |

---

*The Company's common stock shares issued and outstanding, common stock and additional paid-in capital as of December 31, 2025 and March 31, 2026 have been retroactively restated for the reverse stock splits as described in Note 2 of the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.*

**ASPIRE BIOPHARMA HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Net revenue | $28353 | $- |
| Cost of revenue | 22603 | - |
| Gross margin | 5750 | - |
| **OPERATING EXPENSES** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative (including stock based compensation of $13,406 and $14,131,250, respectively) | 1020457 | 15073548 |
| &nbsp;&nbsp;&nbsp;Research and development | 296723 | 263093 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 334739 | 219839 |
| &nbsp;&nbsp;&nbsp;**Total operating expenses** | **1651919**  | **15556480** |
| **Loss from operations** | **(1646169)** | **(15556480)** |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 5009 |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (1595315) | (289931) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities and convertible notes | 251807 | (94917) |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | (238224) | - |
| &nbsp;&nbsp;&nbsp;Total other expense, net | (1576723) | (384848) |
| **Loss before provision for income taxes** | (3222892) | (15941328) |
| &nbsp;&nbsp;&nbsp;Income tax expense | - | - |
| **Net loss** | $**(3222892)** | $**(15941328)** |
| Weighted average shares outstanding of Common Stock | 156685 | 31575 |
| Basic and diluted net loss per share of Common Stock | $(20.57) | $(504.88) |

---

*The Company's weighted average shares outstanding of common stock and loss per share for the three months ended March 31, 2025 and 2026 have been retroactively restated for the reverse stock splits as described in Note 2 of the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.*

**ASPIRE BIOPHARMA HOLDINGS, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT**)

**FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**

**(UNAUDITED)**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Series A Preferred Stock** | **Series A Preferred Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total <br> Stockholders'<br> Equity**<br> **(Deficit)** |
| Balance - January 1, 2026 | 117780 | $12 |  | $- | $20881740 | $(27258081) | $&nbsp;&nbsp;&nbsp;&nbsp;(6376329) |
| Issuance of Series A Convertible Preferred Stock |  |  | 12776 | 1 | 8951118 |  | 8951119 |
| Conversion of convertible notes to Series A Convertible Preferred Stock |  |  | 944 |  | 943801 |  | 943801 |
| Conversion of convertible Notes | 1625 |  |  |  | 163817 |  | 163817 |
| Issuance of incentive shares pursuant to the January 2026 Share Purchase Agreement | 26333 | 3 |  |  | 1390397 |  | 1390400 |
| Issuance of commitment fee shares under ELOC agreement | 207 |  |  |  | 13406 |  | 13406 |
| Issuance of shares pursuant to debt exchange agreements | 21525 | 2 |  |  | 2005139 |  | 2005141 |
| Net loss | - | - | - | - | - | (3222892) | (3222892) |
| Balance – March 31, 2026 | 167470 | $17 | 13750 | $1 | $34349418 | $(30480973) | $3868463 |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Total Stockholders'**<br>**Deficit** |
| **Balance - January 1, 2025 (Restated)** | 23001 | 2 | 1237143 | (2777233) | (1540088) |
| Conversion of warrants | 4780 | 1 | (1) |  |  |
| Issuance of shares in Business Combination | 6048 | 1 | (4602577) |  | (4602576) |
| Issuance of shares under working capital loans and non redemption agreements | 4614 | 1 | (1) |  |  |
| Issuance of commitment fee shares under ELOC agreement | 922 | (1) | 1 |  |  |
| Stock based compensation | 1385 |  | 14131250 |  | 14131250 |
| Net loss | - | - | - | (15941328) | (15941328) |
| **Balance – March 31, 2025** | 40750 | $4 | $10765815 | $(18718561) | $(7952742) |

---

*The Company's common stock issued and outstanding, common stock and additional paid-in capital for the three months ended March 31, 2025 and 2026 have been retroactively restated for the reverse stock splits as described in Note 2 of the accompanying notes, which are an integral part of these unaudited condensed consolidated financial statements.*

**ASPIRE BIOPHARMA HOLDINGS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

---

| | | |
|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** |
|  | **2026** | **2025** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net loss | $(3222892) | $(15941328) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash flows used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 1583890 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | 238224 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense |  | 289931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities and convertible notes | (251807) | 94917 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest capitalized | 9008 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | 13406 | 14131250 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (835047) | (389615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (116814) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (139535) | 1121806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (316955) | 80457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due from related party |  | (1027920) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | - | (111026) |
| NET CASH FLOWS USED IN OPERATING ACTIVITIES | (3038522) | (1751528) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of Series A convertible preferred stock | 8951119 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from recapitalization |  | 265828 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of convertible notes |  | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from debenture | 2000000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of debenture | (2173913) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from notes payable - related party |  | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of notes payable – related party | (885564) | (221390) |
| NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 7891642 | 3094438 |
| NET CHANGE IN CASH | 4853120 | 1342910 |
| CASH, BEGINNING OF THE YEAR | 1003904 | 3633 |
| **CASH, END OF THE QUARTER** | $**5857024** | $**1346543** |
| Supplemental disclosure of noncash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion of convertible notes | $163817 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of incentive shares pursuant to the January 2026 Share Purchase Agreement | $1390400 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of shares pursuant to debt exchange agreements | $2005141 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion of convertible note to Series A convertible preferred stock | $943801 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities combined, net | $- | $1577057 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promissory note fee - related party, combined | $- | $1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription agreement loans combined | $- | $1828098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loan and transfer note payable combined | $- | $499214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward purchase agreement liability combined | $- | $49034 |
| Supplemental cashflow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $- | $- |

---

*The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.*

**ASPIRE BIOPHARMA HOLDINGS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS**

Aspire Biopharma Holdings, Inc. (the "Company" or "Aspire") was incorporated as PowerUp Acquisition Corp., a Cayman Islands exempted company, on February 9, 2021, then domesticated to Delaware as a corporation on February 17, 2025. On February 17, 2025, the Company completed the Reverse Recapitalization described below and changed its name to Aspire Biopharma Holdings, Inc. Aspire is an early-stage biopharmaceutical company which engages in the business of developing and marketing disruptive technology for novel sublingual delivery mechanisms initially for known drugs and supplements, such as aspirin and caffeine products.

On August 26, 2024, the Company (known as PowerUp Acquisition Corp. at that time) entered into an Agreement and Plan of Merger (as amended, the "Aspire Merger Agreement") with PowerUp Merger Sub II, Inc., a Delaware corporation and wholly-owned subsidiary of the Company ("Merger Sub"), SRIRAMA Associates, LLC, a Delaware limited liability company (the "Sponsor"), Stephen Quesenberry, in the capacity as the seller representative, and Aspire Biopharma, Inc., a Puerto Rico corporation ("Aspire Biopharma, Inc.").

On February 17, 2025 (the "Closing Date"), the Company consummated the reverse recapitalization transaction (the "Reverse Recapitalization") pursuant to the terms of the Aspire Merger Agreement. In connection with the consummation of the Reverse Recapitalization, the Company changed its name from PowerUp Acquisition Corp. to "Aspire Biopharma Holdings, Inc." (*See Note 2 - Recapitalization*).

The Company has two wholly-owned subsidiaries, Aspire Biopharma Inc., a Delaware corporation, formed on October 8, 2021, and Buzz Bomb Caffeine Co. LC, a Utah corporation, formed on May 5, 2025.

The Company's primary sources of liquidity have been cash from financing activities. For the three months ended March 31, 2026, net loss was $3,222,892. The Company had an accumulated deficit of $30,480,973 as of March 31, 2026. As of March 31, 2026, working capital was $3,964,715 and cash was $5,857,024. In February 2025, the Company received proceeds of approximately $265,827 as a result of the Reverse Recapitalization. Immediately after the consummation of the Reverse Recapitalization, the Company received $3,000,000 from the issuance of convertible notes and an additional net cash proceeds of $2,661,459 after partial repayment of the convertible notes and deal costs pursuant to the August 19, 2025 Securities Purchase Agreement. In February 2026, the Company entered into a Securities Purchase Agreement (See Note 8) pursuant to which it received net payout of approximately $6,777,206 after repayment of the remaining convertible notes and deal costs under the first tranche for purchases of convertible preferred stock. The Company also entered into an ELOC agreement in November 2025, pursuant to which it can sell up to $100 million in common stock over 24 months. In April 2026, the Company closed the final tranche of the Securities Purchase Agreement (See Note 12) and received an additional $9,000,000 after payment of applicable fees. Management has determined that the Company's current liquidity position is sufficient to fund its operations for at least one year after the filing of these unaudited condensed consolidated financial statements.

**NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") issued by the Financial Accounting Standard Board ("FASB") for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission ("SEC") and expressed in U.S. dollars.

Certain information or footnote disclosures normally included in unaudited condensed consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the period ended December 31, 2025, as filed with the SEC on March 30, 2026. The interim results for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026, or for any future periods.

On January 16, 2026, the Company effected a 1-for-40 reverse stock split with respect to the common stock (the "Reverse Split"). All share and per share information in these unaudited condensed consolidated financial statements given effect to this reverse stock split, including restating prior period reported amounts.

On May 11, 2026, the Company effected a 1-for-30 reverse stock split with respect to the common stock (the "Second Reverse Split") (collectively with the Reverse Split, the "Reverse Splits"). All share and per share information in these unaudited condensed consolidated financial statements gives effect to the Reverse Splits, including restating prior-period amounts.

The Reverse Splits had no effect on the Company's authorized number of shares of common stock, the par value of common stock, the warrants outstanding, total assets, total liabilities, or stockholders' equity (deficit). The Company restated the common stock outstanding (shares and amount) and additional paid-in capital ("APIC") to reflect the number of shares outstanding after the Reverse Splits.

***Principles of Consolidation***

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

***Emerging Growth Company***

The Company is an emerging growth company as defined in Section 102 (b)(1) of the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), which exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised, and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. The Company's unaudited condensed consolidated financial statements may not be comparable to another public entity because of the potential differences in accounting standards used.

***Use of Estimates***

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements. Making estimates requires management to exercise significant judgment. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those significant estimates. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Significant accounting estimates included in these financial statements are the determination of the fair value of the subscription agreements, convertible notes and the securities purchase agreement liability. Such estimates may be subject to change as more current information becomes available and accordingly, the actual results could differ significantly from those estimates.

***Segment Information***

ASC 280, Segment Reporting ("ASC 280"), defines operating segments as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision-maker ("CODM") in deciding how to allocate resources and in assessing performance. The Company's CODM is the Chief Executive Officer, who has ultimate responsibility for the operating performance of the Company and the allocation of resources. The CODM reviews the assets, operating results, and financial metrics for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that there is only one reportable segment. The CODM assesses performance for the single reportable segment and decides how to allocate resources based on operating expenses that also is reported on the statements of operations. The measure of segment assets is reported on the unaudited condensed consolidated balance sheets as total assets. When evaluating the Company's performance and making key decisions regarding resource allocation, the CODM reviews several key metrics included in operating expenses and cash.

Gross margin, operating expenses, inclusive of general and administrative costs, research and development costs and sales and marketing costs, other expenses, net and income tax expense, are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to fund operations. The CODM also reviews operating expenses to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements. The categories of operating expenses, as reported on the unaudited condensed consolidated statements of operations, are the significant segment expenses provided to the CODM on a regular basis.

 ****

***Concentration of credit risk***

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution which, at times, may exceed the Federal Deposit Insurance Corporation ("FDIC") coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows. As of March 31, 2026 and December 31, 2025, the Company had $3,537,854 and $550,130, respectively in deposits in U.S banks in excess of the FDIC limit. Deposits are maintained with high-quality financial institutions that management believes are creditworthy.

As of and for the year ended March 31, 2026, no single customer accounted for 10% or more of the company's total revenue or accounts receivable. The company's customers are spread across various industries and geographic locations, and management believes that no significant concentration of credit risk exists.

***Cash and Cash Equivalents***

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. At March 31, 2026 and December 31, 2025 the cash equivalents were $1,826,743 and $0, respectively.

***Fair Value of Financial Instruments***

Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The authoritative guidance establishes a hierarchy 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 from sources independent of the Company. Unobservable inputs reflect the Company's assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels:

● Level 1: Inputs are quoted prices in active markets for identical assets or liabilities.

● Level 2: Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly.

● Level 3: Inputs are unobservable for the asset or liability.

The carrying amounts of certain financial instruments, such as accounts payable and accrued expenses, approximate fair value due to their relatively short maturities. The fair value of debt instruments for which the Company has the fair value option of accounting is based on the present value of expected future cash flows and assumptions about the then-current market interest rates as of the reporting period and the creditworthiness of the Company. If the Company did not elect the fair value option of accounting for a debt, the debt is carried on the unaudited condensed consolidated balance sheets on a historical cost basis net of unamortized discounts and premiums.

***Inventories***

Inventories consisting of finished goods are stated at the lower of cost or market value with cost determined by the first-in, first-out (FIFO) method of accounting for inventory. Inventories on hand are evaluated on an on-going basis to determine if any items are obsolete, spoiled, or in excess of future demand. The Company provides impairment that is charged directly to cost of revenue when it has been determined the product is obsolete, spoiled, and the Company will not be able to sell it at a normal profit above its carrying cost. There were no impairment charges during the three months ended March 31, 2026 and 2025, and there were no allowances or reserves reducing the cost basis of inventories as of March 31, 2026 and December 31, 2025.

***Research and Development Cost***

The Company accounts for research and development cost ("R&D") in accordance with ASC 730, Research and Development ("ASC 730"). R&D costs are expensed as incurred.

 ****

***Revenue recognition***

The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). The core principle of the guidance in ASC 606 is that an entity should recognize revenue to depict the transfer of 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. To achieve the core principle, the Company applied the following five-step model that requires entities to exercise judgment:

(1) Identify the contracts or agreements with a customer: The Company sells pharmaceutical products directly to customers from its website. The Company's revenue is derived from the customer orders evidenced by invoices issued. Orders placed by customers constitute the Company's contracts with customers.

(2) Identifying the performance obligations in the contract or agreement: The contract with the customer contains a single performance obligation: fulfilment of the customer's order.

(3) Determine the transaction price: The Company's sales arrangements for pharmaceutical products require a full prepayment from the customer at a fixed price per unit based on the terms of the invoice with the customer and before the shipment of products. The transaction price is the amount that reflects the consideration which the Company expects to receive.

(4) Allocate the transaction price to the separate performance obligations: All transaction prices are allocated to the single performance obligation.

(5) Recognize revenue as each performance obligation is satisfied: This performance obligation is satisfied when control of the product is transferred to the customer, which generally occurs upon shipment. The Company receives orders for products to be delivered over multiple dates that may extend across reporting periods. The Company's accounting policy treats shipping and handling activities as a fulfillment cost. The Company invoices for each order upon payment and recognizes revenue at the fixed price for each distinct product delivered when transfer of control has occurred, which is generally upon shipment.

The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.

***Cost of Revenue***

The Company's cost of revenue is comprised of costs related to its commercial revenue, including manufacturing costs and indirect costs associated with the manufacturing, storage and distribution of its products. The Company also may include certain period costs related to manufacturing services and inventory adjustments in cost of revenue.

***Income Taxes***

The Company follows the asset and liability method of accounting for income taxes under ASC 740, Income Taxes ("ASC 740"). Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company files income tax returns with the United States and the state of Utah. Examinations by the United States and state tax authorities may include questioning the timing and amount of deductions, the nexus of income among various state and local tax jurisdictions and compliance with federal and state tax laws. As of March 31, 2026, the 2025 inception year is subject to examination for U.S. federal and state purposes.

In July 2025, the One Big Beautiful Bill Act (Public Law 119-21) was enacted. The Company recognized the income tax effects of the legislation in the period of enactment in accordance with ASC 740. The legislation did not have a material impact on the Company's unaudited condensed consolidated financial statements for the three months ended March 31, 2026. The Company will continue to evaluate the impact of the legislation on future periods.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise's unaudited condensed consolidated financial statements and prescribes a recognition threshold and measurement process for consolidated financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained based on its technical merits and upon examination by taxing authorities. If a tax benefit meets this criterion, it is measured and recognized based on the largest amount of benefit that is cumulatively greater than 50% likely to be realized. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of March 31, 2026 and December 31, 2025. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. The Company did not recognize interest or penalties on its unaudited condensed consolidated statements of operations during the three months ended March 31, 2026 and 2025.

***Net Loss Per Share***

The Company accounts for net loss per share in accordance with ASC 260, Earnings Per Share ("ASC 260"), which basic net income (loss) per share is computed by dividing net loss by the weighted-average shares outstanding for the year. Diluted net loss per share is computed giving effect to all potentially dilutive common stock and common stock equivalents, including public and private placement warrants and the convertible promissory notes. Basic and diluted net loss per share were the same for all years presented as we were in a loss position for all periods.

***Stock-Based Compensation***

The Company accounts for stock-based compensation arrangements granted to employees and vendors in accordance with ASC 718, Compensation-Stock Compensation ("ASC 718"), by measuring the grant date fair value of the award and recognizing the resulting expense over the period during which the employee is required to perform service in exchange for the award. Equity-based compensation expense is only recognized for awards subject to performance conditions if it is probable that the performance condition will be achieved. The Company accounts for forfeitures when they occur.

 ****

***Warrants***

The Company reviews the terms of warrants to purchase its common stock to determine whether warrants should be classified as liabilities or stockholders' equity (deficit) in its consolidated balance sheets. In order for a warrant to be classified in stockholders' equity (deficit), the warrant must be (i) indexed to the Company's equity and (ii) meet the conditions for equity classification.

If a warrant does not meet the conditions for stockholders' equity (deficit) classification, it is carried on the consolidated balance sheets as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in other non-operating losses (gains) in the unaudited condensed consolidated statements of operations. If a warrant meets both conditions for equity classification, the warrant is initially recorded, at its relative fair value on the date of issuance, in stockholders' equity (deficit) in the unaudited condensed consolidated balance sheets, and the amount initially recorded is not subsequently remeasured at fair value.

***Recently Issued Accounting Pronouncements***

On November 4, 2024 the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosure (DISE), requiring additional disclosure of the nature of expenses included in the unaudited condensed consolidated statements of operations. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the statements of operations as well as disclosures about selling expenses. The standard is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently assessing the impact of this ASU.

**NOTE 3. RECAPITALIZATION**

On August 26, 2024, PowerUp Acquisition Corp. ("PowerUp") entered into an Agreement and Plan of Merger (as amended from time to time, the "Merger Agreement") with PowerUp Merger Sub II, Inc., a Delaware corporation and wholly-owned subsidiary of the Company ("Merger Sub"), the New Sponsor, Stephen Quesenberry, in the capacity as the seller representative, and Aspire Biopharma, Inc., a Puerto Rico corporation.

On February 17, 2025 prior to the time of the consummation of the reverse recapitalization (the "Closing Date"), Merger Sub merged with and into Aspire Biopharma, Inc, with Aspire Biopharma, Inc being the surviving company. After giving effect to the Reverse Recapitalization, Aspire Biopharma, Inc became a wholly-owned subsidiary of Aspire Biopharma Holdings, Inc., a Delaware corporation (f/k/a PowerUp Acquisition Corp.) ("New Aspire"). At Closing Date, the Aspire Biopharma, Inc stockholders collectively received, in the aggregate, a number of shares of duly authorized, validly issued, fully paid and nonassessable shares of New Aspire Common Stock with an aggregate value equal to (a) $350 million less (b) the amount by which Aspire Biopharma, Inc's cash at Closing is less than the Minimum Cash Condition (but only in the event the Minimum Cash Condition is waived by PowerUp), if any, less (c) Aspire's indebtedness at Closing.

Pursuant to the Merger Agreement, PowerUp migrated out of the Cayman Islands and domesticated as a Delaware corporation. Also, prior to the Closing Date, Aspire Biopharma, Inc deregistered as a Puerto Rican entity and domesticated as a Delaware corporation (the "Aspire Domestication") in accordance with Section 3746 of the Puerto Rico General Corporations Act (as amended) and Section 388 of the Delaware General Corporation Law. Pursuant to the Aspire Domestication, Aspire's jurisdiction of incorporation was changed from Puerto Rico to the State of Delaware. In connection with the Aspire Domestication, all issued and outstanding shares of Aspire's pre-domestication voting common stock, Series A preferred stock, and any unconverted warrants automatically converted, on a one-for-one basis, into shares of the post-domesticated entity's common stock, Series A preferred stock, and warrants, respectively.

On February 17, 2025 (the "Closing Date"), the Reverse Recapitalization was consummated. In connection with the consummation of the Reverse Recapitalization, PowerUp Acquisition Corp. changed its name to Aspire Biopharma Holdings, Inc.

In connection with the Reverse Recapitalization, on the Closing Date, certain officers, directors, and stockholders of Aspire Biopharma, Inc each entered into a non-competition agreement and lock-up agreements with the Company.

The Reverse Recapitalization was accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, PowerUp, who is the legal acquirer, was treated as the "acquired" company for financial reporting purposes and Aspire Biopharma, Inc was treated as the accounting acquirer. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of a capital transaction in which Aspire is issuing stock for the net assets of PowerUp. The net assets of PowerUp will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization will be those of Aspire Biopharma, Inc.

***Transaction Proceeds***

Upon closing of the Reverse Recapitalization, the Company received gross proceeds of $811,370 as a result of the Reverse Recapitalization, offset by total transaction costs of $545,543. The following table reconciles the elements of the Reverse Recapitalization to the consolidated statement of cash flows and the consolidated statement of changes in stockholders' deficit for the year ended December 31, 2025:

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| | |
|:---|:---|
| Cash-trust and cash, net of redemptions | $811370 |
| Less: transaction costs, paid | (545543) |
| Net proceeds from the Reverse Acquisition | 265827 |
| Less: accounts payable, accrued liabilities and other current liabilities combined | (1577057) |
| Less: Promissory note fee – related party combined | (1000000) |
| Less: Subscription agreement loans combined | (1828098) |
| Less: Loan and transfer note payable combined | (499214) |
| Less: Forward purchase agreement liability combined | (49034) |
| Add: other assets, net | 85000 |
| Reverse recapitalization, net | $(4602576) |

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The number of shares of common stock issued immediately following the consummation of the Reverse Recapitalization were:

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| | |
|:---|:---|
| PowerUp Class A common stock, outstanding prior to the Reverse Acquisition | 7765144 |
| Less: Redemption of PowerUp Class A common stock | (507631) |
| Class A common stock of PowerUp | 7257513 |
| PowerUp Class B common stock, outstanding prior to the Reverse Acquisition |  |
| Reverse Acquisition Class A common stock, before giving effect to the Reverse Splits as described in Note 2 | 7257513 |
| Reverse Acquisition Class A common stock, after giving effect to the Reverse Splits as described in Note 2 | 6048 |
| Issuance of shares related working capital agreements | 3125 |
| Aspire Biopharma, Inc Shares | 29167 |
| Common Stock immediately after the Reverse Acquisition, after giving effect to the Reverse Splits as described in Note 2 | 38340 |

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The number of Aspire Biopharma, Inc. shares was determined as follows after giving effect to the Reverse Split described in Note 2:

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| | | |
|:---|:---|:---|
|  | **Aspire Biopharma, Inc Shares** | **Aspire's Shares after conversion ratio** |
| Common Stock issued to existing Aspire Biopharma, Inc Shareholders | 443185 | $27782 |
| Common Stock obligation shares issued |  | 1385 |
| Number of Shares | 443185 | $29167 |

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*Public and private placement warrants*

The 11,999 Public Warrants issued at the time of the PowerUp's initial public offering, and 8,199 warrants, after giving effect to the Reverse Splits as described in Note 2, issued in connection with private placement at the time of the PowerUp's initial public offering (the "Private Placement Warrants") remained outstanding and became warrants for the Company (See Note 10 - Fair Value Measurements).

**NOTE 4. RELATED PARTY TRANSACTIONS**

*Loan and transfer agreements*

In order to finance transaction costs in connection with the Reverse Recapitalization, the New Sponsor or an affiliate of the New Sponsor, or certain affiliates of PowerUp loaned monies for working capital purposes ("Working Capital Loans") by entering into several Loan and Transfer Agreements.

On February 17, 2025, the Company assumed $250,000 of liabilities related to the December 21, 2023 Loan and Transfer Agreement with the New Sponsor and SSVK Associates, LLC ("SSVK"). As of March 31, 2026 and December 31, 2025, there was $250,000 in borrowings outstanding under the agreement and included in loan and transfer notes payable-related on the accompanying unaudited condensed consolidated balance sheets.

On February 17, 2025, the Company assumed $50,000 of liabilities related to the January 9, 2024 Loan and Transfer Agreement with the New Sponsor and Apogee Pharma ("Apogee"). As of March 31, 2026 and December 31, 2025, there was $50,000 in borrowings outstanding under the agreement and included in loan and transfer notes payable-related party on the accompanying unaudited condensed consolidated balance sheets.

On February 17, 2025, the Company assumed $149,214 of liabilities related to the January 10, 2024 Loan and Transfer Agreement with the New Sponsor and Jinal Sheth ("Sheth"). As of March 31, 2026 and December 31, 2025, there was $149,214 in borrowings outstanding under the agreement and included in loan and transfer notes payable-related party on the accompanying unaudited condensed consolidated balance sheets.

On February 17, 2025, the Company assumed $50,000 of liabilities related to the December 3, 2024 Loan and Transfer Agreement with the New Sponsor and Apogee Pharma ("Apogee 2"). As of March 31, 2026 and December 31, 2025, there was $50,000 in borrowings outstanding under the agreement and included in loan and transfer notes payable-related party on the accompanying unaudited condensed consolidated balance sheets.

As stated in note 13, pursuant to the exchange agreements in April 2026, the Loan and Transfer Agreements balances along with applicable interest and fees were repaid.

 

*Subscription Agreements*

On March 5, 2024, PowerUp entered into four separate Subscription Agreements (each, a "First Subscription Agreement") with the New Sponsor, Visiox, VKSS Capital, LLC, an affiliate of, and an entity under common control with, the New Sponsor (the "Affiliate"), and four separate investors (each, an "Investor"), whereby the Investors collectively contributed to New Sponsor a total of $1,000,000 (the "First Contribution"). The New Sponsor utilized the First Contribution to support PowerUp's previously anticipated merger with Visiox by funding certain obligations to Visiox pursuant to the Secured Convertible Promissory Note, dated December 1, 2023, issued by Visiox to the New Sponsor (the "Visiox Convertible Note") (together, all loans and advances, the "March Loan").

On May 9, 2024, PowerUp entered into four separate Subscription Agreements (each, a "Second Subscription Agreement") with the New Sponsor, the Affiliate, and four separate Investors, whereby, the Investors collectively contributed to the New Sponsor a total of $500,000 (the "Second Contribution") and, in turn, the New Sponsor loaned $500,000 to PowerUp (the "May Loan").

PowerUp accounted for the First and Second Subscription Agreements under ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives and Hedging ("ASC 815") and concluded that bifurcation of a single derivative that comprises all of the fair value of the conversion feature(s) (i.e., derivative instrument(s)) is not necessary under ASC 815-15-25-7 through 25-10. As a result, all debt proceeds received from Investor have been recorded using the relative fair value method of accounting under ASC 470, Debt ("ASC 470"). Pursuant to ASC 470, the Company recorded the fair value of the subscription liability on the unaudited condensed consolidated balance sheets using the relative fair value method. The initial fair value of the subscription liability at issuance was estimated using a Black Scholes and Probability Weighted Expected Return Model. At the close of the Reverse Recapitalization, 1,458 of commitment fee shares, after giving effect to the Reverse Splits as described in Note 2, owing to the Investors under these agreements were transferred by affiliates to the Investors.

On February 17, 2025, the Company assumed $1,500,000 of debt under the First Subscription and Second Subscription Agreements. For the three months ended March 31, 2026, the Company incurred $250,000 in interest expense on the Subscription Agreements which is included in accrued expenses on the accompanying unaudited condensed consolidated balance sheet. The Subscription Agreement Loans along with applicable interest and fees were converted into common stock of the company in January 2026 (See Note 4). At March 31, 2026 and December 31, 2025, $0 and $1,500,000, respectively, owing under these agreements is included in subscription agreement loan balance on the unaudited condensed consolidated balance sheets.

***Due to affiliate***

On February 17, 2025, the Company assumed $353,679 of liabilities due to the Sponsor of PowerUp related to administrative services fees and a residual balance due from initial public offering ("IPO") proceeds. As of March 31, 2026 and December 31, 2025, the balance of $353,679 is recorded within due to affiliate on the unaudited condensed consolidated balance sheets.

***Promissory Note Fee – related party***

On October 2, 2024, after Aspire and PowerUP had signed their BCA in August 2024, PowerUp entered into a Promissory Note Fee Agreement with the Sponsor Srirama Associates LLC (the "Promissory Note Fee Agreement"). Pursuant to the Promissory Note Fee Agreement, 10 months after the fact, PowerUp and the Sponsor "agreed" (with the note signed for both parties by Suren Ajjarapu) that the Sponsor took a significant risk on behalf of the Company by entering into the Visiox Promissory Note in exchange for payment of the Original Promissory Note Fee, and that the Sponsor should be compensated for that risk despite the termination of the right to receive the Original Promissory Note Fee as a result of the termination of the proposed merger with previous target, Visiox. As consideration for the foregoing, PowerUp "agreed" (10 months later) to pay Sponsor a modified promissory note fee of $1,000,000 (the "Modified Promissory Note Fee") upon the successful closing of a merger with Aspire. As of March 31, 2026 and December 31, 2025, the Modified Promissory Note Fee remains outstanding on the Company's books and was included in promissory note fee – related party on the unaudited condensed consolidated balance sheets. Currently, Aspire and Srirama are litigating the enforceability of the Promissory Note Fee Agreement.

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***Notes payable – related party***

During the years 2024 and 2023, Aspire Biopharma, Inc incurred expenses and costs related to officer and director compensation, rental of office space, reimbursable expenses paid by affiliates and non-interest bearing working capital loans. On September 27, 2024, to formalize the related party working capital advances, Aspire Biopharma, Inc issued three nonconvertible 20% original issues discount ("OID") notes payable to related parties for a total face value of $1,066,391. The notes were due the earlier of June 27, 2025 (9 months from issuance); or (ii) the date that the Company receives gross proceeds of at least $2,500,000 in an offering of its debt or equity securities (a "Qualified Offering"). The notes do not bear interest but have a 5% exit fee payable on maturity or repayment. The notes had original issuance discounts totaling $213,278 and are unsecured. Pursuant to the February 18, 2025 subordination agreement between two note holders and Cobra, payments will not be made on the matured notes until full payment of the Cobra obligation (See Note 5 - Convertible Notes). The balance of $591,692 on the notes was repaid during the three months ended March 31, 2026. For the three months ended March 31, 2026 and 2025, total amortized debt discount of $0 and $74,226, respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations.

On December 31, 2024, the Company issued one non-convertible 20% OID note payable for working capital to a related party for a total face value of $279,878. The note is due the earlier of September 30, 2025 (9 months from issuance); or (ii) the date that the Company receives gross proceeds of at least $2,500,000 in an offering of its debt or equity securities (a "Qualified Offering"). The note does not bear interest but has a 5% exit fee payable on maturity or repayment and had original issuance discounts totaling $46,646 and was unsecured. The balance of $293,872 on the notes was repaid during the three months ended March 31, 2026. For the three months ended March 31, 2026 and 2025, total amortized debt discount of $0 and $11,620, respectively, was included in interest expense on the accompanying unaudited condensed consolidated statements of operations.

The following table reflects the outstanding balances of the notes at March 31, 2026 and December 31, 2025.

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| | | |
|:---|:---|:---|
| **Issuance date** | **March 31, 2026** | **December 31, 2025** |
| September 27, 2024 | $- | $591692 |
| December 31, 2024 | - | 293872 |
| Total | $- | $885564 |

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At March 31, 2026 and December 31, 2025, total balance of $0 and $885,564 inclusive of unamortized debt discount of $0 is included in Notes payable – related party on the accompanying unaudited condensed consolidated balance sheets.

**NOTE 5. CONVERTIBLE NOTES**

*Securities Purchase Agreement*

On February 17, 2025, the Company entered into a Securities Purchase Agreement ("Securities Purchase Agreement") with Cobra Alternative Capital Strategies, LLC, an entity controlled by the Company's former Director of Investor Relations, Lance Friedman, which services were provided through a consulting agreement with Blackstone Capital Advisors, Inc. that was terminated effective February 17, 2025, and Target Capital X LLC (collectively, the "Investors"). Under the Securities Purchase Agreement, the Company issued 20% original issue discount senior secured convertible debentures ("February 2025 Convertible Debentures") in an aggregate principal amount of $3,750,000 which includes a 20% OID. The conversion price per share of each Debenture is equal to 92.5% of the lowest daily VWAP (as defined in the Debentures), provided that no conversion may be at a price per share less than the floor price of $4.00 per share. At the close of the Reverse Recapitalization, 1,755 of commitment fee shares, after giving effects to the Reverse Splits as described in Note 2, owing to the Investors under these agreements were transferred by affiliates to the Investors.

The Company analyzed for the Securities Purchase Agreement under ASC 480 and ASC 815 and concluded that bifurcation of a single derivative that comprises all of the fair value of the conversion feature(s) (i.e., derivative instrument(s)) is not necessary. As a result, all debt proceeds received have been recorded using the fair value method of accounting under ASC 825, Fair Value Measurement ("ASC 825"). Pursuant to ASC 825, the Company recorded the fair value of the subscription liability on the unaudited condensed consolidated balance sheet using the fair value method. The initial fair value of the subscription liability at issuance was estimated using a Monte Carlo Model. In August and September 2025, the Company repaid a total of $3,032,645 of the February 2025 Convertible Debentures. For the three months ended March 31, 2026 and 2025, change in fair value of $211,443 and $88,816, respectively, was included as an income in change in fair value of derivative liabilities and convertible notes on the unaudited condensed consolidated statements of operations. In January 2026, the remaining balance of $943,801 was repaid. At March 31, 2026 and December 31, 2025, the fair value of $0 and $1,146,236, respectively, of the Securities Purchase Agreement is included in Convertible Notes on the accompanying unaudited condensed consolidated balance sheets.

*August 2025 Notes*

On August 19, 2025, the Company entered into a Securities Purchase Agreement (the "August Securities Purchase Agreement") with certain investors (the "Purchasers"), pursuant to which the Company sold to the Purchasers certain notes in an aggregate principal amount of $9,687,500 for a subscription price of $7,750,000 (the "August 2025 Notes") with a maturity date of February 19, 2026. The August 2025 Notes have a 20% OID of $1,937,500 which is included in the aggregate principal amount of $9,687,500 and do not bear an interest rate except for instances of default. Of the $7,750,000 total funding (before transaction expenses and debt repayments) under the Securities Purchase Agreement, $4,500,000 was funded on August 19, 2025 (the "first Tranche"), $1,000,000 was funded on September 22, 2025 (the "Second Tranche"), and the balance of $2,250,000 (the "Third Tranche") was funded on September 30, 2025. The August 2025 Notes are convertible into up to an aggregate of 122,648 shares of common stock after giving effects to the Reverse Splits as described in Note 2 (the "Conversion Shares") subject to certain conditions.

The August 2025 Notes are convertible (in whole or in part) at any time on or after the thirty-first (31st) day following the Issuance Date into such number of shares of Common Stock as shall be determined by dividing (x) that portion identified by the Purchaser of (A) the outstanding principal amount, plus (B) accrued and unpaid interest with respect to such outstanding principal amount of such Purchaser's Note and any other amounts owing under such Note or other Transaction Documents (the as that term is defined in the Notes) by (y) the conversion price then in effect on the date on which the Purchaser delivers a notice of conversion. The conversion price means the greater of (i) eighty (80%) percent of the lowest Closing Price on any Trading Day during the five (5) Trading Days prior to the applicable conversion date or (ii) the floor price (the "Floor Price"). The Floor Price means 20% of the average closing price of the Company's Common Stock for the five days prior to the Closing Date.

The August 2025 Notes may not be converted and shares of Common Stock may not be issued under Notes if, after giving effect to the conversion or issuance, such Purchaser (together with its affiliates, if any) would beneficially own in excess of 4.99% of our outstanding shares of our Common Stock, which we refer to herein as the "Note Blocker". The Note Blocker may be raised or lowered to any other percentage not in excess of 9.99% at the option of the applicable Purchaser of Notes, except that any raise will only be effective upon 61-days' prior notice to us. In connection with the August Securities Purchase Agreement, the Company entered into a registration rights agreement, dated as of August 19, 2025 (the "Registration Rights Agreement"), pursuant to which the Company agreed to file the initial resale registration statement by no later than September 18, 2025, to register the resale of the common stock underlying the Notes. The resale registration statement became effective on September 30, 2025.

The Company accounted for the August 2025 Notes under ASC 470 and ASC 815 and concluded that bifurcation of multiple embedded features was necessary under ASC 815-15-25-1. As a result, the Company separately accounted for the embedded features as a single compound derivative. The Company recorded the initial fair value of the derivative liability of $4,101,583 and the debt issuance cost of $907,499 as a debt discount, which will be amortized to interest expense over the expected term of the debt.

During the year ended December 31, 2025, a total value of $9,523,683 of Convertible Notes were converted into 73,998 shares of common stock of the Company after giving effects to the Reverse Splits as described in Note 2. The remaining debt of $163,817 was converted into 1,625 shares of common stock in January 2026 after giving effects to the Reverse Splits as described in Note 2. At March 31, 2026 and December 31, 2025, the balance of the August 2025 Notes, net of unamortized debt discount of $0 and $144,240, respectively, is included in convertible notes on the unaudited condensed consolidated balance sheets.

*January 2026 Securities Purchase Agreement*

On January 26, 2026, the Company entered into a Securities Purchase Agreement (the "Securities Purchase Agreement") with certain investors (the "Purchasers"), pursuant to which the Company sold to the Purchasers certain debentures in an aggregate principal amount of $2,173,913 for a subscription price of $2,000,000 (the "Debentures") with a maturity date of April 23, 2026. The Notes have an 8% original issue discount and did bear any annual interest. The Debentures are due the sooner of (i) 90 days, or (ii) upon the Company's receipt of gross proceeds of at least $8,000,000 in any equity or debt financing. The Company had the option to prepay this Debenture(s) at any time after the Original Issue Date at an amount equal to the Principal Amount. The Company shall provide Holder(s) with ten (10) Business Days' prior written notice of intention to satisfy the Debentures, whether at maturity, by prepayment, or in default. The Debentures are not convertible. In connection with the financing, the Purchasers received an aggregate of 26,333 shares of the Company's common stock as incentive shares, after giving effects to the Reverse Splits as described in Note 2. The Debentures were repaid in February 2026. For the three months ended March 31, 2026, total amortized debt discounts of $173,913 was included in interest expense on the accompanying unaudited condensed consolidated statements of operations.

**NOTE 6. REVENUES**

Net sales include revenue from product sales and shipping and handling charges, net of returns and discounts. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. All revenue is recognized when or as the Company satisfies its performance obligations under the contract. The Company recognizes revenue by transferring control of the promised products to the customer, which primarily occurs when products are shipped to the customer. The Company recognizes revenue for shipping and handling charges at the time the products are shipped to the customer. The Company estimates product returns based on historical return rates. All of the Company's contracts have a single performance obligation and are short-term in nature. Sales taxes and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. The Company recognizes revenue from the sale of pharmaceutical products directly to customers and is recognized at an amount that reflects the consideration expected to be received in exchange for such products.

The customer order evidenced by invoices issued is considered to be the contract with the customers. At contract inception, an assessment of the products and services promised in the contracts with customers is performed and a performance obligation is identified for each distinct promise to transfer a product to the customer. To identify the performance obligations, the Company considers the products promised per the invoice regardless of whether they are explicitly stated or are implied by customary business practices.

The performance obligation is considered to be fulfilled upon the shipment of the products. At each reporting period, any invoiced sales that have not yet shipped is recorded as deferred revenue. As of March 31, 2026 and December 31, 2025, there was no deferred revenue.

The following tables represent net sales disaggregated by revenue source:

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| | |
|:---|:---|
|  | **For the Three Months Ended**<br>**March 31, 2026** |
| Nutraceutical products | $28353 |
| Total revenues | $28353 |

---

The following tables represent net sales disaggregated by geography, based on the customers' billing addresses.

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| | |
|:---|:---|
|  | **For the Three Months Ended**<br>**March 31, 2026** |
| United States | $27144 |
| Canada | 480 |
| Others | 729 |
| Total revenues | $28353 |

---

**NOTE 7. COMMITMENTS AND CONTINGENCIES**

*Registration Rights*

The holders of Private Placement Warrants and warrants that may be issued upon conversion of working capital loans, if any, are entitled to registration rights pursuant to a registration rights agreement dated February 17, 2022. These holders are entitled to certain demand and "piggyback" registration rights. The Company will bear the expenses incurred in connection with the filing of any such registration statements. On May 13, 2025, the Company filed a Registration Statement on Form S-1 to register 2,441 of the outstanding 8,199 Private Placement Warrants, after giving effects to the Reverse Splits as described in Note 2. The Registration Statement was declared effective on May 30, 2025.

*Equity Line of Credit ("ELOC") Agreement*

On November 11, 2025, the Company entered into a new Purchase Agreement (the "Second ELOC Agreement") with Arena Business Solutions Global SPC II, Ltd. ("Arena"). Under the Second ELOC Agreement, the Company has the right, but not the obligation, to direct Arena to purchase up to $100,000,000 in shares of the Company's common stock (the "ELOC Shares") upon satisfaction of certain terms and conditions contained in the Second ELOC Agreement, including, without limitation, an effective registration statement filed with the SEC registering the resale of the ELOC Commitment Fee Shares and additional shares to be sold to Arena from time to time under the Second ELOC Agreement.

The term of the Second ELOC Agreement began on November 11, 2025 and ends on the earlier of (i) the first day of the month following the 36-month anniversary of the execution date, (ii) the date on which the Investor shall have purchased the maximum amount of Second ELOC Shares, or (iii) the effective date of any written notice of termination delivered pursuant to the terms of the Second ELOC Agreement (the "Commitment Period"). In consideration for the Arena's execution and delivery of the Second ELOC Agreement, the Company is required to issue Common Shares to Arena equal to $250,000 divided by the lowest 1-Trading Day VWAP of the Common Shares of the five (5) Trading Days immediately preceding the effectiveness of the initial registration statement (the "Commitment Fee Shares"), plus $25,000 in Common shares for fees associated with the prior ELOC Agreement with the Company, based on a price equal to the lowest 1-Trading Day VWAP of the Common Shares of the five (5) Trading Days immediately preceding the date of execution and delivery of this Agreement.

The Company issued 2,510 shares of common stock after giving effects to the Reverse Splits as described in Note 2 to Arena in November and December 2025 and an additional 202 true up shares in January 2026, after giving effects to the Reverse Splits as described in Note 2, representing payment of the commitment fee shares. For the three months ended March 31, 2026 and 2025, change in fair value of $590 and $0, respectively, was included as an expense in change in fair value of derivative liabilities and convertible notes on the unaudited condensed consolidated statement of operations. At March 31, 2026 and December 31, 2025, the fair value of the forward purchase agreement liability related to the Second ELOC Agreement is $96,252 and $95,662, respectively and included in forward purchase agreement liability on the accompanying unaudited condensed consolidated balance sheets. There were no issuances under the Second ELOC Agreement as of March 31, 2026.

***Instaprin Acquisition***

On March 28, 2022, the Company closed on an asset purchase agreement (APA) of Instaprin Pharmaceuticals, Inc.'s ("Instaprin") intangible assets, inclusive of U.S. Patent No. 62/794141, International Publication No. 2020/15460 A1 and WO 2020/150685 A1, and the Instaprin U.S. Trademark No. 86274378, trade secrets and proprietary information, all applications for any of the foregoing, commercial and scientist relationships, and any license or agreements granting rights related to the foregoing.

The purchase price for the Acquired Assets (as defined in the APA) was $3,628,325 plus interest thereon, to be paid to the SEC on behalf of Instaprin in satisfaction of the SEC's judgment against Instaprin and its former CEO, from sales of the product, as follows: 20% from the first $5,000,000 of sales and 10% from sales thereafter until the entire contingent purchase price obligation is satisfied. Additionally, ten percent (10%) of the Company's equity was to be delivered at Closing, in proportion to their equity holdings in the Company, to be issued to a Trustee for the former Instaprin Shareholders, along with an additional ten percent (10%) of the Company's equity to be issued to Instaprin's service providers, pursuant to a stock incentive plan to be adopted. As of March 31, 2026, the Company has not recorded the assets from the APA due to the contingent nature of the transaction and the Company has not yet adopted a stock incentive plan.

**NOTE 8. SECURITIES PURCHASE AGREEMENT**

***Series A Preferred Stock Issuance***

Pursuant to the terms of the February 2026 Securities Purchase Agreement described below, on February 2, 2026, the Company filed the certificate of designation (the "Certificate of designation") with The Delaware Secretary of State designating, 25,000 shares of its authorized and unissued preferred stock as Series A Convertible Preferred Stock. At the close of the first tranche, the company recorded $9,894,920 as Series A preferred stock, representing total issuance of $13,749,980 net of related costs of $3,855,060. On February 6, 2026, 13,750 shares of Series A Preferred Stock were issued at the close of the first tranche.

On April 13, 2026, the Company filed the further amendment to the Certificate of designation with the Delaware Secretary of State designating, 30,000 shares of its authorized and unissued preferred stock as Series A Convertible Preferred Stock. On April 15, 2026, 12,500 additional shares were issued at the close of tranche 2 of the February 2026 Securities Purchase Agreement and the Company recorded $9,000,000 as Series A preferred stock, representing total issuance of $10,000,000 net of related costs of $1,000,000. The Certificate of Designation sets forth the rights, preferences and limitations of the shares of Preferred Stock. Terms not otherwise defined in this item shall have the meanings given in the Certificate of Designation.

The following is a summary of the terms of the Preferred Stock:

*Conversion*. Pursuant to the Certificate of Designation, each share of Preferred Stock, subject to the Stockholder Approval (as defined in the Certificate of Designation), is convertible at the option of the holder into shares of common stock at a conversion price equal to 80% of the lowest closing price of our Common Stock as of the closing of the Principal Market (as such term is defined in the Certificate of Designation) for each of the five (5) Trading Days (as such term is defined in the Certificate of Designation) immediately prior to the date of conversion, or other date of determination (but in no event less than the floor price), subject to certain adjustments as set forth in the Certificate of Designation (the "Conversion Price"). The floor price is equal to 20% of the Minimum Price (as such term is defined by the rules and regulations of the Nasdaq Stock Market LLC, Rule 5635(d)(1)(A)) (or such lower amount as permitted, from time to time, by the Principal Market (the "Floor Price"). The number of shares of common stock issuable upon conversion of a share of Preferred Stock shall be determined by dividing (x) the stated value of the Preferred Stock to be converted by (y) the Conversion Price.

The shares of Preferred Stock will be convertible immediately upon issuance, at the option of the holder, at the Conversion Price, subject to a conversion cap that limits the conversion of the Preferred Stock such that an Investor may not beneficially own more than 4.99% (the "Maximum Percentage") of the shares of common stock that would be issued and outstanding following such conversion. An Investor may decrease or increase the Maximum Percentage by written notice to the Company from time to time to any other percentage not in excess of 9.99%, provided that any increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, provided further that a holder shall not convert any Preferred Stock to the extent that, after giving effect to such conversion, the aggregate number of shares of common stock issued or issuable upon conversion of the Preferred Stock would exceed 19.99% of the issued and outstanding shares of the Company's common stock unless and until the Company has obtained the shareholder approval required by Nasdaq Listing Rule 5636(d).

*Ranking*. The Series A shall rank (i) senior to all of the common stock; (ii) senior to any class or series of capital stock of the Corporation hereafter created specifically ranking by its terms junior to any Series A ("Junior Securities"); (iii) on parity with any class or series of capital stock of the Corporation created specifically ranking by its terms on parity with the Preferred Stock ("Parity Securities"); and (iv) junior to any class or series of capital stock of the Corporation hereafter created specifically ranking by its terms senior to any Series A ("Senior Securities"), in each case, as to dividends or distributions of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntarily or involuntarily. Subject to any superior liquidation rights of the holders of any Senior Securities of the Corporation and the rights of the Corporation's existing and future creditors, upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a "Liquidation"), each Holder shall be entitled to be paid out of the assets of the Corporation legally available for distribution to stockholders, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation to the holders of the Common Stock and Junior Securities and pari passu with any distribution to the holders of Parity Securities, an amount equal to the Stated Value for each share of Series A held by such Holder and an amount equal to any accrued and unpaid dividends thereon, and thereafter the Holders shall be entitled to receive out of the assets, whether capital or surplus, of the Corporation the same amount that a holder of Common Stock would receive if the Series A were fully converted (disregarding for such purposes any conversion limitations hereunder) to common stock which amounts shall be paid pari passu with all holders of common stock. The Corporation shall mail written notice of any such Liquidation, not less than sixty (60) days prior to the payment date stated therein, to each Holder.

*Price Protection*

Except for any Exempt Issuance, in the event the Corporation issues or sells any securities including options or convertible securities (or amends any outstanding securities of the Company), at an effective price of, or with an exercise or conversion price of less than the conversion price, then upon such issuance or sale, the conversion price shall be reduced to the lesser of (i) the Floor Price; or (ii) the sale price or the exercise or conversion price of the securities issued or sold. In case any shares of common stock, convertible securities or options are issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction, each share of common stock underlying any such convertible securities or options shall be deemed to be one additional share of common stock for the purposes of determining the effective price of the non-Exempt Issuance.

 

*Participation Rights*

Subject to certain terms and conditions in the Certificate of Designation, until the six (6) month anniversary of the issuance of the Series A to the Holder, upon any subsequent financing, the Holders of the outstanding Series A shall have the right to participate in an amount equal to an aggregate of 30% of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing.

***February 2026 Securities Purchase Agreement***

On February 6, 2026, the Company entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain accredited investors (the "Investors"), pursuant to which the Company agreed to issue and sell, in a private placement (the "Offering"), up to 25,000 shares (the "Shares") of the Company's newly-designated Series A Convertible Preferred Stock, par value $0.0001 per share (the "Preferred Stock"), which Preferred Stock is convertible into shares of the Company's common stock, par value $0.0001 per share (the "Common Stock") as more fully described in the Certificate of Designations, Preferences and Rights of the Series A Convertible Preferred Stock (the "Certificate of Designation").

Pursuant to the Certificate of Designation on February 6, 2025, subject to Stockholder Approval (as defined below), each share of Preferred Stock is convertible at the option of the holder into shares of Common Stock at a conversion price equal to 80% of the lowest closing price of our Common Stock as of the closing of the Principal Market (as such term is defined in the Certificate of Designation) for each of the five (5) Trading Days (as such term is defined in the Certificate of Designation) immediately prior to the date of conversion, or other date of determination (but in no event less than the floor price), subject to certain adjustments as set forth in the Certificate of Designation (the "Conversion Price"). The floor price is equal to 20% of the Minimum Price (as such term is defined by the rules and regulations of The Nasdaq Stock Market LLC under Nasdaq Listing Rule 5635(d)(1)(A)) or such lower amount as permitted, from time to time, by the Principal Market (the "Floor Price"). The number of shares of Common Stock issuable upon conversion of a share of Preferred Stock shall be determined by dividing (x) the stated value of the Preferred Stock to be converted by (y) the Conversion Price.

The shares of Preferred Stock will be convertible immediately upon issuance, at the option of the holder, at the Conversion Price, subject to a conversion cap that limits the conversion of the Preferred Stock such that an Investor may not beneficially own more than 4.99% of the shares of Common Stock that would be issued and outstanding following such conversion (the "Maximum Percentage"). An Investor may decrease or increase the Maximum Percentage by written notice to the Company from time to time to any other percentage not in excess of 9.99%, provided that any increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, provided further that a holder shall not convert any Preferred Stock to the extent that, after giving effect to such conversion, the aggregate number of shares of Common Stock issued or issuable upon conversion of the Preferred Stock would exceed 19.99% of the issued and outstanding shares of the Company's Common Stock unless and until the Company has obtained the shareholder approval required by Nasdaq Listing Rule 5636(d) ("Shareholder Approval").

The initial closing of the issuance of Preferred Stock occurred on February 6, 2025 (the "Initial Closing"). At the Initial Closing, the Company issued 13,750 shares of Preferred Stock for aggregate gross proceeds of $11,000,000, which included $943,801 of debt that converted into Preferred Shares on the same terms. RBW Capital Partners, LLC acted as placement agent for the Offering. As compensation in connection with the Offering, the Company paid the placement agent a placement agent fee and other fees in the amount of $1,105,000.

On April 13, 2026, the Company issued a certificate of amendment to the Certificate of Designation of Series A Convertible Preferred Stock (the "Certificate of Amendment"). Pursuant to the Certificate of Amendment, the Company amended certain provisions of the Certificate of Designation, including clarifying and restating provisions relating to the designation and number of shares of Series A Convertible Preferred Stock. As amended, the Company has designated 30,000 shares of Series A Convertible Preferred Stock, each with a par value of $0.0001 and a stated value of $1,000 per share.

On April 15, 2026, the Company issued an additional 12,500 shares of Preferred Stock for aggregate proceeds of $10,000,000 (the "Second Closing") following effectiveness of the registration statement on April 14, 2026 and shareholder's approval on April 10, 2026.

In connection with the Offering, the Company filed a proxy statement with the United States Securities and Exchange Commission (the "Commission") seeking the approval of its stockholders for (i) the transactions contemplated by the Securities Purchase Agreement, (ii) the issuance of the Preferred Stock and the Common Stock issuable upon the conversion of the Preferred Stock, (iii) a reverse stock split of the Company's Common Stock at a range of one for five (1-for-5) to a maximum of one for five hundred (1-for-500) shares, whether effected in a single transaction or in multiple transactions, and all related amendments to the Company's certificate of incorporation, and (iv) an amendment to the Company's certificate of incorporation to effect an increase in the Company's authorized shares to the extent required to issue the securities. The Company filed the registration statement to issue the shares on February 17, 2026. On February 24, 2026, the SEC notified the Company in writing that there will be no review of the registration statement.

In addition, the Company and each Investor entered into a registration rights agreement (the "Registration Rights Agreement"). Pursuant to the Registration Rights Agreement, within fifteen (15) days following the Initial Closing, the Company shall file a resale registration statement on Form S-1 (or Form S-3 if the Company is S-3 eligible) providing for the resale by the Investors of the Registrable Securities (as defined in the Registration Rights Agreement) and to use its best efforts to cause such resale registration statement to be declared effective by the staff of the Commission within forty five (45) days following the Initial Closing, or within sixty five (65) days in the event of a review by the Commission.

Pursuant to the Securities Purchase Agreement, the Investors have the right to appoint one (1) director to our Board of Directors. The Securities Purchase Agreement and Registration Rights Agreement contain certain representations and warranties, covenants and indemnities customary for similar transactions. The representations, warranties and covenants contained in the Securities Purchase Agreement and Registration Rights Agreement were made solely for the benefit of the parties to the Securities Purchase Agreement and Registration Rights Agreement and may be subject to limitations agreed upon by the contracting parties.

**NOTE 9. STOCKHOLDERS' EQUITY (DEFICIT**)

**Preferred Stock**—The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.0001 per share and with such designations, voting and other rights and preferences as may be determined from time to time by the Board. At March 31, 2026 and December 31, 2025, 25,000 were designated as Series A convertible preferred stock.

**Series A Preferred Stock**—The Company is authorized to issue 25,000 shares of series A preferred stock with a par value of $0.0001 per share and with such designations, voting and other rights and preferences as may be determined from time to time by the Board. At March 31, 2026 and December 31, 2025, there were 13,750 and 0 shares of Series A Preferred Stock issued or outstanding, respectively.

**Common Stock**— The Company is authorized to issue 490,000,000 shares of Common Stock with a par value of $0.0001 per share. As of March 31, 2026 and December 31, 2025, there were 167,470 and 117,780 shares of common stock issued and outstanding, respectively, after giving effects to the Reverse Splits as described in Note 2.

***PowerUp Warrants***

As part of the PowerUp IPO, PowerUp issued warrants to third-party investors where each whole warrant entitles the holder to purchase one share of the Company's Class A common stock at an exercise price of $460 per share (the "Public Warrants"). Simultaneously with the closing of the IPO, PowerUp completed the private sale of 8,199 warrants (the "Private Placement Warrants"), after giving effect to the Reverse Stock Splits, where each warrant allows the holder to purchase one fortieth share of the Company's Common Stock at $460 per share, after giving effect to the Reverse Splits as described in Note 2. At March 31, 2026, there are 11,999 Public Warrants after giving effects to the Reverse Splits as described in Note 2 and 8,199 Private Placement Warrants outstanding after giving effects to the Reverse Splits as described in Note 2.

At December 31, 2025, there are 14,374,969 Public Warrants and 9,763,333 Private Placement Warrants outstanding.

The Public Warrants became exercisable commencing 30 days after the consummation of the Reverse Recapitalization.

Once the warrants became exercisable, the Company may redeem the warrants:

● in whole and not in part;

● at a price of $16 per warrant;

● upon not less than 30 days' prior written notice of redemption, to each warrant holder; and

● if, and only if, the reported last sale price of the Company's Common Stock equals or exceeds $720 per share (as adjusted for share subdivisions, share consolidations, share capitalizations, rights issuances, reorganizations, recapitalizations and the like) for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the IPO, except that the Private Placement Warrants and the common stock issuable upon the exercise of the Private Placement Warrants are not transferable, assignable, or saleable until 30 days after the completion of a Reverse Recapitalization, subject to certain limited exceptions.

The Company has determined that Public Warrants and the Private Placement Warrants issued in connection with its IPO in February 2022 are subject to treatment as equity. Upon the closing of the Reverse Recapitalization, in accordance with the guidance contained in ASC 815, the warrants continue to be equity classified.

***Stock based compensation***

On February 29, 2024, Aspire Biopharma, Inc entered into a Corporate advisory agreement with an advisory firm, pursuant to which the advisory firm will receive 6% of the amount shares outstanding after the close of the Reverse Recapitalization as compensation for advisory services to support the Company's efforts related to the Reverse Recapitalization. On January 3, 2025, the agreed upon compensation was reduced to 4.75% of the amount of shares outstanding after the close of the Reverse Recapitalization. In February 2025, 1,385 shares of the 29,167 Reverse Recapitalization shares after giving effects to the Reverse Splits as described in Note 2 were issued to the affiliated company under this agreement. The issuance of these shares to the service advisors is subject to ASC 718. Under ASC 718, compensation associated with equity-classified awards is measured at fair value upon the grant date. The shares were granted subject to a performance condition (i.e., the occurrence of a Reverse Recapitalization). Stock-based compensation of $0 and $14,131,250 was recognized in general and administrative expenses upon consummation of the Reverse Recapitalization for the three months ended March 31, 2026 and 2025, respectively, based on the grant date fair value per share. The fair value was determined by applying a 15% discount for lack of marketability to the market price of the shares on date of grant.

***Aspire Biopharma warrants***

During the year ended December 31, 2024, Aspire Biopharma, Inc issued 44,000,000 warrants at a per share price of $0.40. As of December 31, 2024, there were 91,500,000 warrants outstanding and all were fully vested. On January 21, 2025, the 91,500,000 warrants were converted into 91,500,000 shares of Aspire Biopharma Inc. common stock, which, on the Reverse Recapitalization date, were subsequently converted into 4,780 shares of common stock of the Company after giving effects to the Reverse Splits as described in Note 2.

 ****

***Other Share issuances***

As stated in Note 5, on April 28, 2025, in connection with the Settlement Agreement, the Company issued 521 shares of common stock after giving effects to the Reverse Splits as described in Note 2 to Blackstone Capital Advisors, Inc. or its designees.

During the year ended December 31, 2025, a total value of $9,523,683 of Convertible Notes were converted into 73,998 shares of common stock of the Company after giving effects to the Reverse Splits as described in Note 2. The remaining debt of $163,817 was converted into 1,625 shares of common stock in January 2026 after giving effects to the Second Reverse Split as described in Note 2.

As stated in Note 9, In January 2026, the Company issued 202 true up shares to Arena after giving effects to the Second Reverse Split as described in Note 2.

As stated in Note 10, The Company issued 26,333 shares of common stock as incentive to the Investors for entering into the January 2026 Share Purchase Agreement after giving effects to the Second Reverse Splits as described in Note 2.

*Exchange Agreements*

On January 1, 2026, the Company entered into Exchange Agreements (the "Exchange Agreements") with certain holders of the Company's debt (the "Holders") to exchange approximately $1.75 million in debt for shares (the "Exchange Shares') of the Company's common stock (the "Exchange") (See Note 5). The debt was incurred by the Company's predecessor, PowerUp pursuant to subscription agreements dated March 4, 2024, and May 9, 2024. The Holders were Sponsors of PowerUp's initial public offering.

Pursuant to the Exchange Agreements, the Holders may, in their discretion, submit a notice of exchange setting forth the Exchange Amount, the Exchange Shares, and the applicable Exchange Price. Within one business day of receipt of an Exchange Notice, the Company will issue to such Holder the number of Exchange Shares equal to the Exchange Amount divided by the Exchange Price, and such Exchange Amount shall be deducted from the Outstanding Balance. Each Holder may submit up to four (4) Exchange Notices, but each Exchange Notice may not exchange more than thirty percent (30%) of the applicable Holder's Outstanding Balance.

In addition, upon a financing in excess of $3,000,000 (a "Financing"), the Company may repay part or all of any Holder's Outstanding Balance. Upon a Financing, a Holder may elect to receive cash proceeds from any Financing in an amount equal to twenty five percent (25%) of such Holder's Outstanding Balance, to be applied to such Holder's Outstanding Balance. If a Holder elects to require any part of its Outstanding Balance to be repaid from the proceeds of a Financing, it can elect to receive up to 33.33% of the aggregate proceeds of such Financing.

In January 2026, pursuant to the Exchange Agreements, the Subscription Agreement Loan balances along with applicable interest were converted into 21,525 shares of ordinary stock of the Company after giving effect to the Reverse Splits as described in Note 2.

**NOTE 10. FAIR VALUE MEASUREMENTS**

The following table presents information about the Company's assets and liabilities that are measured at fair value on a recurring basis at March 31, 2026 and December 31, 2025 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value.

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| | | | | |
|:---|:---|:---|:---|:---|
| **March 31, 2026** | | **Quoted Prices in Active Markets** | **Significant Other Observable Inputs** | **Significant Other Unobservable Inputs** |
|  | Level | (Level 1) | (Level 2) | (Level 3) |
| Liabilities: |  |  |  |  |
| Forward Purchase Agreement liabilities | 3 | $— | $— | $96252 |

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| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2025** | | **Quoted Prices in Active Markets** | **Significant Other Observable Inputs** | **Significant Other Unobservable Inputs** |
|  | Level | (Level 1) | (Level 2) | (Level 3) |
| Liabilities: |  |  |  |  |
| Convertible Notes | 3 | $— |  | $1146236 |
| Forward Purchase Agreement liabilities | 3 |  |  | 95662 |
| Derivative liability | 3 |  |  | 40954 |

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*Convertible Notes*

As discussed in Note 7 - Convertible Notes, the February 2025 Convertible Debentures are classified and accounted for as a financial liability which is measured at fair value on a recurring basis (one of the instruments is accounted for at fair value on a recurring basis under ASC 480-10, as a derivative instrument under ASC 815).

The financial liabilities are valued under a Monte Carlo Model. The estimated fair value of the financial liabilities component is determined using Level 3 inputs. Inherent in the pricing models are assumptions related to expected share-price volatility, expected life and risk-free interest rate.

The key inputs of the models used to value the Company's February 2025 Convertible Debentures as of December 31, 2025 were:

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| | |
|:---|:---|
| **Inputs** | **December 31, 2025** |
| Term Remaining - Years | 0.13 |
| Share Price | $0.13 |
| Debt Rate | 12.49% |

---

The change in the fair value of the convertible notes measured using Level 3 inputs is summarized as follow:

---

| | |
|:---|:---|
|  | **February 2025 Notes** |
| Balance, December 31, 2025 | $1146236 |
| Change in fair value | (211444) |
| Repayment of Note | (934792) |
| Balance, March 31, 2026 | $- |

---

***Forward purchase agreement liabilities***

As discussed in Note 9 - Commitment and Contingencies, the forward purchase agreement liabilities are classified and accounted for as financial liabilities which will be measured at fair value on a recurring basis.

The forward purchase agreements liabilities are valued under a Probability Weighted Expected Return Model ("PWERM") which fair values repayable capital investment and uses a Black Scholes Model that fair values the conversion features within the convertible debt. The PWERM is a multistep process in which value is estimated based on the probability-weighted present value of various future outcomes. The estimated fair value of the forward purchase agreements liabilities are determined using Level 3 inputs. Inherent in the pricing models are assumptions related to expected share-price volatility, expected life and risk-free interest rate.

The key inputs of the models used to value the forward purchase agreement liabilities as of March 31, 2026 and December 31, 2025 were:

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| | | |
|:---|:---|:---|
| **Inputs** | **March 31, 2026** | **December 31, 2025** |
| Share Price | $1.03 | $5.28 |
| Risk Free Rate | 3.70% - 3.80% | 3.48% - 3.59% |
| Likelihood of a call | 10% -20% | 10% -20% |

---

The change in the fair value of the forward purchase agreement liabilities measured using Level 3 inputs is summarized as follows:

---

| | |
|:---|:---|
| Forward purchase agreement liability at December 31, 2025 | $95662 |
| Change in fair value | 590 |
| Forward purchase agreement liability at March 31, 2026 | $96252 |

---

*Derivative liability*

As discussed in Note 7 - Convertible Notes, the Company accounted for the August 2025 Notes under ASC 470 and ASC 815 and concluded that bifurcation of multiple embedded features was necessary under ASC 815-15-25-1. As a result, the Company separately accounted for as a single compound derivative. The initial fair value of the derivative liability at issuance was $4,101,583 and estimated using a Monte Carlo Model. In January 2026, the remaining balance of $163,817 of the convertible notes was converted into 1,625 shares of common stock after giving effects to the Reverse Splits as described in Note 2. For the three months ended March 31, 2026, change in fair value of the derivative liability of $40,954 was recorded as an income on the unaudited condensed consolidated statements of operations. At March 31, 2026 and December 31, 2025, the fair value of the derivative of $0 and $40,954, respectively, was included in derivative liability on the accompanying unaudited condensed unaudited condensed consolidated balance sheet.

The change in the fair value of the derivative liability measured using Level 3 inputs is summarized as follows

---

| | |
|:---|:---|
| Derivative liability at December 31, 2025 | $40954 |
| Change in fair value | (40954) |
| Derivative liability at March 31, 2026 | $- |

---

The key inputs of the models used to value the Company's derivative liability as of December 31, 2025 were:

---

| | |
|:---|:---|
| **Inputs** | **December 31, 2025** |
| Term Remaining - Years | 0.14 - 0.39 |
| Share Price | $0.10- $0.42 |
| Risk Free Rate | 3.52% - 3.92% |

---

**NOTE 11. SEGMENT INFORMATION**

When evaluating the Company's performance and making key decisions regarding resource allocation, the CODM reviews several key metrics included in net loss, which include the following:

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| | | |
|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Gross margin | $5750 | $- |
| Operating expenses | (1651919) | (15556480) |
| Other expenses, net | (1576723) | (384848) |
| Net loss | $(3222892) | $(15941328) |

---

Gross margin, operating expenses, other expenses, net and income tax expense are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available for working capital needs and to fund research and development efforts. The CODM also reviews general and administrative costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. General and administrative costs, as reported on the unaudited condensed consolidated statements of operations, are the significant segment expenses provided to the CODM on a regular basis.

All other segment items included in net loss are reported on the unaudited condensed consolidated statements of operations and described within their respective disclosures.

**NOTE 12. SUBSEQUENT EVENTS**

The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the unaudited condensed consolidated financial statements were issued. Based upon this review, other than disclosed below or within these unaudited condensed consolidated financial statements, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the unaudited condensed consolidated financial statements.

***Second Closing of Preferred Stock***

On April 15, 2026, a second closing was completed, pursuant to which the Company issued an additional 12,500 Shares of Preferred Stock for aggregate proceeds of $10,000,000 (the "Second Closing"). The Company's registration statement to register the shares of Common Stock issuable upon the conversion of the Shares was deemed effective on April 14, 2026, and the Company's shareholders approved the issuance of the additional conversion Shares on April 10, 2026.

***Conversion of Preferred Stock and Effects of Stockholders' Equity***

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As of the date of this report, holders of the Preferred Stock have converted 9,200 Preferred Stock into 33,674,288 shares of common stock.

 ****

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***Proposed Acquisition***

*LOI:* On April 15, 2026, the Company announced that it has entered into a non-binding letter of intent (the "LOI") for the acquisition (the "Acquisition") of 100% of the Driver Controls Systems business unit **(**"DCS"**)** of Firefish Topco, LLC ("FTLLC"), from the shareholders of FTLLC (the "Sellers"), pursuant to which the Company intends to acquire 100% of the equity, assets and liabilities (subject to certain agreed exclusions) of the subsidiaries constituting the operations of DCS through a combination of stock and asset transactions, to be mutually agreed upon between the parties.

Upon completion of the Acquisition, the Company plans to engage Lakewood & Company, LLC to provide management services for the operation of DCS. Lakewood's principals have more than 100 years of experience in the automotive industry.

*Purchase Price and Consideration:* The LOI provides for an enterprise valuation of $30 million on a cash-free, debt-free basis (the "Purchase Price"), payable in cash at closing, subject to certain customary adjustments, including adjustments for (i) accrued income taxes (net of receivables) and (ii) funded indebtedness. The Purchase Price is not subject to a working capital adjustment so long as the business is operated in the ordinary course consistent with past practice. The Company does not anticipate procuring any new equity raise to consummate the purchase.

*Break-Up Fees:* The LOI provides for break-up fees of $3.5 million payable by the Company or Sellers, respectively, under certain circumstances, including a failure to proceed in good faith or to consummate the closing when required. Such fees are subject to customary exceptions, including the failure of closing conditions, a material breach by the counterparty, or the exercise of specified termination rights.

*Exclusivity and Confidentiality:* The Sellers have agreed to a "no-shop" provision for an initial period of 30 days (subject to a potential extension), during which they may not solicit or engage in alternative acquisition proposals, subject to limited exceptions. The parties have also agreed to customary confidentiality restrictions.

*Non-Binding Nature:* Except for certain provisions, including those relating to exclusivity, confidentiality, expenses, and (following public disclosure) break-up fees, the LOI is non-binding and does not obligate the parties to consummate the Acquisition. The completion of the Acquisition remains subject to the negotiation and execution of a definitive Purchase Agreement and satisfaction of the conditions set forth therein. Engagement of Lakewood & Company remains subject both to completion of the Acquisition and to the negotiation and execution of a definitive management agreement and satisfaction of the conditions set forth therein.

***Commitment Letter for Credit Facility***

The Company entered into a commitment letter with a national financial institution providing for a senior secured credit facility of Aspire in an aggregate principal amount of up $22,500,000 (the "Aspire Credit Facility"). Aspire intends to use the proceeds of the Aspire Credit Facility, if consummated, to finance the acquisition of 100% of DCS. The Company does not anticipate procuring any new equity raise to consummate the purchase.

The Aspire Credit Facility is expected to consist of a senior secured five-year term loan, at an interest rate equal to 325 basis points above the one-month term Secured Overnight Financing Rate. The final terms of the Aspire Credit Facility, including the senior secured term loan, will be subject to execution of definitive credit documentation and the satisfaction of customary closing conditions.

***Loan and Transfer Repayment Agreement***

On April 14, 2026 and April 15, 2026, the Company entered into payment agreements with SSVK, Apogee (which had two separate $50,000 notes) and Sheth, pursuant to which the Company settled by cash in full total of $499,214 of balances owing under the Loan and transfer Agreements (See Note 4).

 

***Legal Claim***

In April 2026, Srirama Associates, LLC filed a lawsuit in the Superior Court of the State of Delaware alleging breach of contract in connection with an amended promissory note fee described in Note 5. The complaint seeks approximately $1,000,000 in damages, plus interest and costs. The Company disputes the claim and filed a motion to dismiss on May 11, 2026. The Company has not recorded a liability related to this matter as of March 31, 2026.

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

The following "Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")" should be read in conjunction with our unaudited condensed consolidated financial statements for the three months ended March 31, 2026 and 2025 and our audited financial statements as of the year ended December 31, 2025, included in Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 30, 2026.

This discussion includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "continue," or the negative of such terms or other similar expressions. Such statements include, but are not limited to, possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included herein. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other SEC filings.

Unless the context otherwise requires, references in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" to "Aspire," "we", "us", "our", and the "Company" are intended to refer to (i) following the Reverse Recapitalization (as defined below), the business and operations of Aspire Biopharma Holdings, Inc (formerly PowerUp Acquisition Corp.) and its consolidated subsidiaries, and (ii) prior to the Reverse Recapitalization, Aspire Biopharma, Inc (the predecessor entity in existence prior to the consummation of the Reverse Recapitalization) and its consolidated subsidiaries.

**Overview**

We are an early-stage biopharmaceutical and supplements company. Aspire Biopharma Holdings, Inc. (the "Company" or "Aspire") is a Delaware Company that was incorporated as PowerUp Acquisition Corp., a Cayman Islands exempted company, on February 9, 2021. On February 17, 2025, the Company completed the Reverse Recapitalization described below and changed its name to Aspire Biopharma Holdings, Inc. The Company engages in the business of developing and marketing the disruptive technology for novel sublingual delivery mechanisms initially for known drugs and supplements. Prior to our Reverse Recapitalization, we were a privately held Puerto Rico corporation incorporated in September 2021.

**Growth Strategy and Outlook**

***Business Plan***

We expect to generate revenue through developing and marketing drugs and nutraceuticals using the technology for the novel sublingual delivery. Further, from time to time, we may enter into license or collaboration agreements with other companies that include development funding and significant upfront and milestone payments and/or royalties, which may become an important source of our revenue. Accordingly, our revenue may depend on development funding and the achievement of development and clinical milestones under current and any potential future license and collaboration agreements and sales of our products, if approved. We do not currently have any licensing or collaboration agreements.

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***Manufacturing***

We currently contract with third parties for the manufacture of our product candidates for preclinical studies, clinical trials, and sale, and intend to do so in the future. We do not own or operate manufacturing facilities for the production of clinical or commercial quantities of our product candidates. We currently have no plans to build our own clinical or commercial scale manufacturing capabilities. To meet our projected needs for commercial manufacturing, third parties with whom we currently work will need to increase their scale of production or we will need to secure alternate suppliers. Although we rely on contract manufacturers, we have personnel with manufacturing experience to oversee our relationships with contract manufacturers.

We entered into a development and manufacturing agreement with a contract manufacturer, Glatt, in the fourth quarter of 2024, under which Glatt produced sufficient quantities of our high-dose sublingual aspirin product (sometimes referred to informally herein as "Instaprin" for ease of reference) for our clinical trials required to obtain FDA approval to market the product and complete clinical trials. Glatt currently has the capabilities to manufacture our aspirin drug product for potential commercial use, however, their current capacity may be insufficient to meet our planned needs and may require us to engage additional or alternative third-party manufacturers in the future. In addition, we have entered into a fill-and-finish agreement with a contract manufacturer to convert the aspirin product manufactured by Glatt into packaged drug product that can be utilized in clinical trials. We believe that both Glatt and the fill-and-finish contract manufacturer are compliant under current good manufacturing practice, or cGMP, requirements and have experience with cGMP inspections of their respective facilities. We have also entered into a manufacturing agreement with Microsize, a CDMO in Quakertown, PA in January 2026 to manufacture aspirin products for the next round of clinical trials of the high-dose aspirin for myocardial infarction.

We used drug product manufactured by Glatt to conduct clinical trials to support approval of a section 505(b)(2) New Drug Application ("NDA") for the aspirin product. A successful clinical trial was completed in July 2025 in Florida studying the pharmacokinetics of aspirin and its metabolites in blood following sublingual administration of a single dose of each of two different formulations of our aspirin drug product and a single dose of standard oral aspirin. This trial enrolled six healthy adult volunteers with each dose separated by a washout period of fourteen days and provided information required to (i) select the optimal drug product formulation and (ii) support FDA approval. This trial also studied sublingual administration of our aspirin products and how it delivers therapeutic concentrations of drug into the bloodstream, comparable to those of standard oral aspirin, but faster and without gastro-intestinal toxicity associated with oral aspirin. This clinical trial concluded in July, 2025. We received the final report in September 2025. The result of the clinical trials were positive, demonstrating that Aspire's sublingual delivery technology results in much faster aspirin bioavailability in the blood (compared to aspirin tablets) and that the anti-coagulant effect of aspirin occurs much quicker with Aspire's product. These results will be the backbone of a 505(b)(2) submission to the FDA planned for late 2026, once the next clinical trial is concluded.

***Commercialization of Aspirin Products***

We have not yet established a sales, marketing or product distribution infrastructure for our aspirin products because our lead product candidates are still in early-stage clinical development. We generally plan to retain commercial rights in the United States for our product candidates for which we hope to receive marketing approvals. We believe that it will be possible for us to access the heart attack and stroke prevention market through a targeted hospital and/or specialty care sales force. We are also strongly considering the licensing of the aspirin products and have received inquiries about the availability of that produce for license.

***Our Products***

The Company has developed and acquired disruptive sublingual delivery technologies that are a patent-pending formulation which address emergencies and drug efficacy, dosage management, and response time. In March 2023, the Company filed application number 63/456,290 with the United States Patent and Trademark Office ("USPTO") with the goal of securing patent protection for its new technology and aspirin formulation. The Company's new patent pending formulation is a significant improvement on the previous formulation which was acquired by the Company through the Instaprin Pharmaceuticals, Inc. acquisition (described below). This technology will facilitate development of any number of products in a soluble, PH neutral, fast acting powder or granule form which has been developed by using our patent pending formulation, and "trade secret" process. Aspire's drug delivery comes from a new mechanism of action (absorption pathway) which allows for rapid sublingual absorption. The benefits of "rapid absorption" are to provide rapid treatment impact and also allows high dose absorption. The Company's patent pending delivery system includes components specifically formulated to allow rapid sublingual absorption of drugs into the blood stream, thus by-passing the gastrointestinal tract. A second patent application was filed in October 2024 for a high-dose version of our sublingually administered aspirin product (application number 63/702,381) using a micelle variation on our technology which can be used with a variety of substances.

In the initial development launch of its aspirin product, Aspire has focused on the delivery of aspirin, which may be the most studied and accepted analgesic and anti-inflammatory drug on the market. Aspirin is over a century old and is traditionally available in several forms, including effervescence, powder, capsule, and tablet. Over 100 years of documented safety and efficacy data is readily available. Aspirin is the only drug in history to receive a certified recommendation by the FDA for heart attack, stroke and colon cancer. However, current aspirin applications are limited due to side effects from acidity. We expect that our aspirin product will be well positioned to target the current Opioid Crisis globally due to its ability to have large doses rapidly be absorbed in the bloodstream with no harmful effects to the gastric system and its mucous membrane, as well as, at full strength with no dilution due to metabolic impact providing true anti-inflammatory therapeutic effects to users providing true pain management relief to them. Aspire plans to submit its FDA 505(b)(2) approval request in late 2026 for the prescription strength high dose aspirin product given the history of Aspirin (and over 100 years of history).

***Current Development Status of Aspire's Aspirin Product***

Aspire's cGMP batch of high-dose aspirin was manufactured by Glatt in its New Jersey facility in March 2025. Glatt used this batch to finalize the packaging and manufacturing process, and to provide the products which were used in the clinical trials which took place in Florida and ended in July 2025, with the final clinical trial study results provided to Aspire on September 5, 2025. Glatt's scientific team will also be conducting the stability testing required by the FDA on this batch to determine product shelf life. This is in addition to prior similar initial testing done in 2022 by Glatt which provided important background data on the stability and manufacturing process for Aspire's low dose sublingual aspirin product. Aspire's new manufacturer, Microsize, is currently conducting tests and preparing the high-dose product for the next clinical tests.

Aspire's consultants have completed (1) a comprehensive review of relevant regulatory issues and regulatory strategy (including regulations, guidance documents, FDA reviews of approved NDAs for other relevant products, Pediatric Research Equity Act requirements, FDA's trade name approval requirements, opportunities for accelerated regulatory processes, etc.), (2) a comprehensive summary of relevant safety, efficacy and pharmacokinetic data to support IRB approvals, IND, and 505(b)(2) NDA approval, (3) a target product profile (including product description, composition, strength, route of administration, prescription v. OTC, indications, dosing and claims to differentiate from other aspirin products), and (4) an integrated product development plan (including plans to support each module of an NDA submission: CMC, preclinical safety, human PK, clinical safety, clinical efficacy, timelines, critical path, Gantt chart, etc.). These reviews were done in preparation for Aspire's communication with the FDA, its clinical testing, and its NDA.

Aspire recently conducted an in vivo single-dose bioavailability study in healthy human volunteers which ended in July 2025. The final clinical trial report was received on September 5, 2025. This clinical trial evaluated pharmacokinetic endpoints including but not limited to maximum concentrations of aspirin and/or its metabolites in plasma ("Cmax"), time of maximum concentrations ("Tmax"), and area under the time curve concentrations ("AUC") following sublingual dosing of two different pharmaceutical formulations of Aspire's sublingual aspirin compared to standard oral aspirin. Pharmacodynamic effect on serum thromboxane B2 (TXB2, a measure of platelet inhibition) was evaluated as a secondary endpoint. Data from this bioavailability study will be used to select the optimal pharmaceutical formulation of aspirin and to support filing of an NDA. This trial was exempt from Investigational New Drug ("IND") filing requirements under 21 C.F.R. 320.31(d) because it is a human bioavailability trial of an FDA-approved active ingredient that is not a new chemical entity, a radioactively labeled drug product, or cytotoxic drug product, using a dose not exceeding the dose specified in the labeling of the approved drug product, conducted in compliance with the requirements for review by an Institutional Review Board (IRB), with reserve test article samples retained by the study sponsor. The results showed that Aspire's product entered the bloodstream faster than conventional aspirin and had a more significant impact on TxB2 than conventional aspirin. Management believes that both results are very positive.

Following receipt and analysis of the clinical trial results, Aspire submitted a pre-IND written request to the FDA on October 31, 2025, to which the FDA responded positively on November 13, 2025, essentially approving the proposed next clinical trial of approximately 32 healthy human volunteers to evaluate the pharmacodynamic effect of a single dose of Aspire's high dose aspirin on platelet inhibition compared to that of standard oral aspirin. The proposed primary endpoint for an additional trial would be time to TXB2 inhibition. Variability of TXB2 inhibition and pharmacokinetic parameters (Cmax, Tmax, AUC, etc.) for aspirin and/or its metabolites in plasma will be analyzed as secondary endpoints. If needed, the additional trial will be designed to demonstrate a shorter time to clinically meaningful pharmacodynamic effect (TXB2 inhibition) following administration of Aspire's aspirin compared to standard oral aspirin (standard of care for treatment of suspected acute myocardial infarction). Aspire is hoping to conduct this next trial starting in approximately June/July 2026. Following completion of this additional trial, Aspire would submit a section 505(b)(2) NDA for Aspire's aspirin product to the FDA seeking approval to market the product for treatment of suspected acute myocardial infarction. Additional clinical trials focused on differentiating Aspire's aspirin from standard oral aspirin based on TxB2 inhibition and gastrointestinal irritation, ulceration and bleeding during longer term use may be conducted to support subsequent 505(b)(2) NDAs and/or supplemental NDAs for our aspirin in other therapeutic indications focused on the antithrombotic and analgesic effects of aspirin.

***Current Development Status of Other Products***

**Melatonin:** Aspire's scientists have developed a working formulation for a sublingually administered melatonin sleep-aid product, in 3mg, 5mg, and 10mg doses and has created a batch of product and completed limited testing. Aspire may, although it is not required to, conduct a limited pharmacokinetic study using at least eight volunteers, comparing to orally administered melatonin products on the market, in order to support its claims and labeling. No FDA approval is required for melatonin, which is sold as a supplement. Melatonin is a popular sleep aid and Aspire has begun exploring licensing possibilities. The Company has filed for patent protection of its melatonin formulation in patent application 63/890,248 filed on 9/25/25 (part of the "Omnibus Patent").

**Vitamins:** Aspire's scientists have developed a working formulation for sublingually administered vitamins D, E and K. The Company has filed for patent protection of its vitamin products in the Omnibus Patent.

**ED Medication:** Aspire's scientists are also developing a working formulation for a sublingual ED (erectile dysfunction) product. The timeline to market will be similar depending on the speed of formulation, availability of resources, market conditions and other factors. FDA approval would likely take at least 2-3 years as ED medication is not likely a candidate for fast-track/breakthrough therapy approval. The Company has filed for patent protection of its ED formulation in the Omnibus Patent.

**Caffeine Products:** Aspire has developed a working formula for a single serving sublingual pre-workout supplement as well as a single serving "coffee or soda replacement" with health benefits, using its patent-pending sublingual absorption technology. Aspire has manufactured trial runs of this supplement and conducted consumer and safety testing in the second quarter of 2025. Aspire entered into a manufacturing agreement with Desert Stream, Inc. (Nephi, UT), a nutrition and supplement manufacture with experience in caffeine products, through its wholly owned subsidiary Buzz Bomb Caffeine Company LC. Aspire and Desert Stream developed a half dozen flavors of the product. Aspire has registered several trademarks that it intends to use with these products and obtained domain names as well. Aspire unveiled its caffeine product at two large fitness conventions in the first week of August 2025 and began selling initial versions of its caffeine products in the third quarter of 2025. After that product was well-received, Aspire entered into a manufacturing contract with Supranaturals (Springville, UT) to manufacture 2,000,000 units of its caffeine supplement which is marketed under the trademark "Buzz Bomb" (see buzzbombcaffeine.com). The new marketing and labeling of these 2,000,000 units began on January 15, 2026.

**Other Products:** Aspire's scientists have created formulations for anti-nausea products (meclizine and ondansetron), alprazolam, clopidogrel, microdose nicotine, and semaglutide, and are considering formulations for anti-psychotic products, seizure medication, and several other classes of drugs, all using our sublingual mode of administration. We anticipate taking several of these products to market as the research and development dictates, as well as market conditions and company funding. Aspire has filed patents protecting several of these products: nicotine (Omnibus Patent), alprazolam (patent application 63/957,370 filed 1/9/26), meclizine (patent application 63/971,320 filed 1/29/26), clopidogrel (patent application 63/957,361 filed 1/9/26), and ondansetron (patent application 63/970,377 filed on 1/28/26).

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***Competition***

The biopharmaceutical industry is characterized by rapidly advancing technologies, intense competition and strong emphasis on proprietary products. While we believe that our sublingual absorption technology, knowledge, experience and scientific resources provide us with competitive advantages, we face potential competition from many sources, including major pharmaceutical, specialty pharmaceutical and biotechnology companies, academic institutions and government agencies and public and private research institutions. Any product candidates that we successfully develop and commercialize will compete with existing therapies and new therapies that may become available in the future.

Many of our competitors, either alone or with their strategic partners, have substantially greater financial, technical and human resources than we do and significantly greater experience in the discovery and development of product candidates, obtaining FDA and other regulatory approvals of treatments and commercializing those treatments. These same competitors may invent technology that competes with our product candidates. Mergers and acquisitions in the biotechnology and pharmaceutical industries may result in even more resources being concentrated among a smaller number of our competitors. These competitors also compete with us in recruiting and retaining qualified scientific and management personnel and establishing clinical study sites and subject registration for clinical studies, as well as in acquiring technologies complementary to, or necessary for, our programs. Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies.

We expect any products that we develop and commercialize to compete on the basis of, among other things, efficacy, safety, convenience of administration and delivery, price, the level of generic or biosimilar competition and the availability of adequate reimbursement from government and other third-party payors.

Our commercial opportunity could be reduced or eliminated if our competitors develop and commercialize products that are safer, more effective, have fewer or less severe side effects, are more convenient or are less expensive than any products that we may develop. Our competitors also may obtain FDA or other regulatory approval for their products more rapidly than we may obtain approval for ours, which could result in our competitors establishing a strong market position before we are able to enter the market. In addition, we expect that our products, if approved, will be priced at a premium over competitive generic products and our ability to compete may be affected in many cases by insurers or other third-party payors seeking to encourage the use of generic products.

We expect that Aspire's aspirin products will compete with currently approved products, such as Bayer aspirin, Advil and Tylenol, and, if approved, other product candidates currently under development. To our knowledge, there are currently no sublingual aspirin products on the market and none listed inside of the Food and Drug Administration's (the "FDA") Approved Drug Products with Therapeutic Equivalence Evaluations book, also known as the "Orange Book."

***Intellectual Property***

Our commercial success depends in part on our ability to obtain and maintain proprietary or intellectual property protection for our drug candidates, including our drugs and supplements using our patent-pending sublingual absorption technology, and other knowhow; to operate without infringing on the proprietary rights of others; and to prevent others from infringing our proprietary or intellectual property rights. Our practice is to seek to protect our proprietary and intellectual property position by, among other methods, filing U.S. and international patent applications related to our proprietary drug candidates, inventions and improvements that are important to the development and implementation of our business. We also rely on trade secrets, know-how and continuing technological innovation to develop and maintain our proprietary and intellectual property position.

Any patents granted from national/regional phase applications of International Application No. PCT/US2024/022318 (which claims priority to U.S. Application No. 63/456,290) or applications claiming priority to International Application No. PCT/US2024/022318 will have a nominal expiration of March 29, 2044. The Company further intends to file a PCT application on October 1, 2025, claiming priority to U.S. Application No. 63/702,381. Any patents granted from national/regional phase applications of this PCT application or applications claiming priority to this PCT application will have a nominal expiration of October 1, 2045. The patent applications cover composition of matter (formulations), including product-by-process coverage, as well as uses of the formulations.

Provisional patent application Serial No. 62/794,141 expired on January 19, 2020. Prior to expiration of 62/794,141, two nonprovisional patent applications were filed under the Patent Cooperation Treaty (PCT), each claiming priority to 62/794,141. These PCT applications have PCT Application Nos. PCT/US2020/013863 and PCT/US2020/014218, respectively. National/regional phase entries of these PCT applications were due on July 18, 2021, or August 18, 2021, depending on the specific country/region. No national/regional phase entries were completed by the deadlines.

The expired patent properties do not describe Aspire's aspirin formulation technology. Aspire's aspirin formulation technology is covered by pending patent application nos. PCT/US2024/022318 and 63/702,381, which are Aspire's primary patent properties. The expired patent properties were intended to supplement the later-filed primary patent properties covering Aspire's aspirin formulation technology. At the time of its acquisition of assets, Aspire was not aware that the patent properties had expired. Aspire's Omnibus Patent to extend its novel intellectual property rights to cover many other classes of drugs and supplements was filed in October 2025, as set forth above. In addition, Aspire has file the patents referred to above and intends to file further patents as warranted.

Trademark Registration No. 4823125 (granted from Trademark Serial No. 86274378) was cancelled on April 8, 2022, for failure to file maintenance documents due on March 29, 2022. Aspire was not aware of the March 29, 2022, filing deadline at the time of the Asset Purchase Agreement, which was executed one day prior to the filing deadline. Aspire has filed new trademark application Serial No. 98793226, which covers the "Instaprin" mark.

The Company believes that it is important to note that while the previously acquired intellectual property is dead or expired, Aspire has used these technologies and relationships as the foundation of their new patent applications and formulations. Aspire's management had always intended to build upon the acquired intellectual property assets and enhance the patent protections and apply the technology to new patented products and classes of products. Aspire has maintained the relationships with the individuals who cultivated the original science and research. Aspire has built upon these technologies, research, and relationships to improve and expand upon the previous intellectual property as reflected in their most recent patent applications.

The following table sets forth details of our intellectual property registrations and applications:

IP Schedule for Aspire Biopharma, Inc. as of April 10, 2026

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| | | | | |
|:---|:---|:---|:---|:---|
| **PATENT FILINGS** | **PATENT FILINGS** | **PATENT FILINGS** | **PATENT FILINGS** | **PATENT FILINGS** |
| **Country** | **Substance** | **Application No.** | **Filing Date** | **Status** |
| United States | ORAL MUCOSAL FORMULATIONS OF ALPRAZOLAM | 63/957,370 | 09-Jan-2026 | Pending |
| World Intellectual Property Organization | LOWER DOSE ASPIRIN | 63/456,290 | 03-Mar-2023 | Pending |
| United States | HIGHER DOSE ASPIRIN | 63/702,381 | 02-Oct-2024 | Pending |
| United States | ORAL MUCOSAL FORMULATIONS OF CLOPIDOGREL | 63/957,361 | 09-Jan-2026 | Pending |
| United States | ORAL MUCOSAL FORMULATIONS OF MECLIZINE | 63971320 | 29-Jan-2026 | Pending |
| United States | ORAL MUCOSAL FORMULATIONS OF ONDANSETRON | 63/970,377 | 28-Jan-2026 | Pending |
| United States | VARDENAFIL (OMNIBUS) | 63/890,248 | 29-Sep-2025 | Pending |
| United States | CAFFEINE (OMNIBUS) | 63/890,248 | 29-Sep-2025 | Pending |
| United States | MELATONIN (OMNIBUS) | 63/890,248 | 29-Sep-2025 | Pending |
| United States | NICOTINE (OMNIBUS) | 63/890,248 | 29-Sep-2025 | Pending |
| United States | VITAMIN A (OMNIBUS) | 63/890,248 | 29-Sep-2025 | Pending |

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| | | | | |
|:---|:---|:---|:---|:---|
| **TRADEMARK FILINGS** | **TRADEMARK FILINGS** | **TRADEMARK FILINGS** | **TRADEMARK FILINGS** | **TRADEMARK FILINGS** |
| **Country** | **Wordmark** | **Serial No. /**<br> **Registration No.** | **Filing or Registration Date** | **Status** |
| United States | BOMB SQUAD | 97755121 | 15-Jan-2023 | Pending |
| United States | BUZZ BOMB | 88447682 | 16-Oct-2025 | Pending |
| United States | BUZZ BOMB | 99146781 | 20-Apr-2025 | Approved |
| United States | BUZZ BOMB | 99287743 | 16-Jul-2025 | Pending |
| United States | CAFFEINE…ACCELERATED | 99287826 | 16-Jul-2025 | Pending |
| United States | WITHOUT THE CUP | 99287858 | 14-Oct-2025 | Pending |
| United States | INSTRAPRIN | 98793226 | 15-Apr-2025 | Pending |

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We also hold numerous domains, including, but not limited to, aspire-biopharma.com, aspirebiolabs.com, buzzbombcaffeine.com, and buzzbombcaffeine.com. Additionally, Aspire plans to enter into customer and license agreements to protect its intellectual property. All other intellectual property is in the form of trade secrets, business methods and know-how and is protected through intellectual assignment and confidentiality agreements with Aspire employees, advisors and consultants.

**Recent Development**

***Recapitalization***

On August 26, 2024, PowerUp Acquisition Corp. ('PowerUp") entered into an Agreement and Plan of Merger (as amended from time to time, the "Merger Agreement") with PowerUp Merger Sub II, Inc., a Delaware corporation and wholly-owned subsidiary of the Company ("Merger Sub"), the New Sponsor, Stephen Quesenberry, in the capacity as the seller representative, and Aspire Biopharma, Inc., a Puerto Rico corporation.

On the Closing Date, Merger Sub merged with and into Aspire Biopharma, Inc, with Aspire Biopharma, Inc being the surviving company. After giving effect to the Reverse Recapitalization, Aspire Biopharma, Inc became a wholly-owned subsidiary of New Aspire. In accordance with the terms and subject to the conditions of the Merger Agreement and the Proposed Charter, at Closing Date, the Aspire Biopharma, Inc Stockholders collectively received, in the aggregate, a number of shares of duly authorized, validly issued, fully paid and nonassessable shares of New Aspire Common Stock with an aggregate value equal to (a) $350 million less (b) the amount by which Aspire Biopharma, Inc's cash at Closing is less than the Minimum Cash Condition (but only in the event the Minimum Cash Condition is waived by PowerUp), if any, less (c) Aspire's Indebtedness at Closing.

To the satisfaction or waiver of the conditions of the Merger Agreement, PowerUp migrated out of the Cayman Islands and domesticated as a Delaware corporation. Also prior to the Closing Date, Aspire Biopharma, Inc deregistered as a Puerto Rican entity and domesticated as a Delaware corporation (the "Aspire Domestication") in accordance with Section 3746 of the Puerto Rico General Corporations Act (as amended) and Section 388 of the Delaware General Corporation Law. Pursuant to the Aspire Domestication, Aspire's jurisdiction of incorporation was changed from Puerto Rico to the State of Delaware. In connection with the Aspire Domestication, all issued and outstanding shares of Aspire's pre-domestication voting common stock, Series A preferred stock, and any unconverted warrants automatically converted, on a one-for-one basis, into shares of the post-domesticated entity's common stock, Series A preferred stock, and warrants, respectively.

In connection with the change of PowerUp's jurisdiction of incorporation from the Cayman Islands to the State of Delaware (the "PowerUp Domestication"), prior to the consummation of the Reverse Recapitalization (the" Closing Date"): (i) each issued and outstanding Class A ordinary share, par value $0.0001 per share (the "Class A common stock"), of PowerUp converted, on a one-forone basis, into a duly authorized, validly issued, fully paid and nonassessable share of common stock, par value $0.0001 per share, of New Aspire (the "New Aspire Common Stock"); and (ii) each issued and outstanding whole warrant to purchase Class A common stock of PowerUp automatically represented the right to purchase one share of New Aspire Common Stock, at an exercise price of $460 per share, after giving effect to the Reverse Split as described in Note 2, on the terms and conditions set forth in the Warrant Agreement, dated as of February 17, 2022, by and between PowerUp and Equiniti Trust Company, LLC (f/k/a American Stock Transfer & Trust Company), a New York limited purpose trust company, as warrant agent (in such capacity, the "Warrant Agent", also referred to herein as the "Transfer Agent") (the "Warrant Agreement").

Immediately following the PowerUp Domestication, (i) the New Aspire Common Stock reclassified as common stock, par value $0.0001 per share (the "New Aspire Common Stock"); (ii) each issued and outstanding unit of PowerUp that has not been previously separated into the underlying Class A ordinary share and underlying one-half of one warrant upon the request of the holder thereof were cancelled and entitled the holder thereof to one share of New Aspire Common Stock and one-half of one public warrant, with a whole public warrant representing the right to acquire one share of New Aspire Common Stock at an exercise price of $460 per share, after giving effect to the Reverse Splits as described in Note 2, on the terms and conditions set forth in the Warrant Agreement; (iii) the governing documents of PowerUp were amended and restated and become the certificate of incorporation and the bylaws of New Aspire and (iv) the form of the certificate of incorporation and the bylaws were appropriately adjusted to give effect to any amendments contemplated by the form of certificate of incorporation or the bylaws that are not adopted and approved by the PowerUp shareholders, other than the amendments to the PowerUp governing documents that are contemplated by the Organizational Documents Proposal, which is a condition to the Closing of the Reverse Recapitalization. No fractional warrants were issued upon the separation of units and only whole warrants are traded.

Immediately prior to the effective time of the consummation of the Reverse Recapitalization, Aspire Biopharma, Inc caused (i) each share of Aspire Biopharma, Inc Preferred Stock that is issued and outstanding immediately prior to the effective time of the Reverse Recapitalization to be automatically converted into a number of shares of Aspire Common Stock at the then-effective conversion rate (the "Preferred Conversion"). All of the shares of Aspire Preferred Stock converted into shares of Aspire Common Stock were no longer outstanding and ceased to exist, and each holder of Aspire Biopharma, Inc Preferred Stock thereafter ceased to have any rights with respect to such Aspire Biopharma, Inc Preferred Stock. Aspire Biopharma, Inc caused each Aspire Biopharma, Inc. warrant to be terminated in exchange for shares of Aspire Common Stock in accordance with the respective warrant agreements associated with each such warrant.

On February 17, 2025 (the "Closing Date), the Reverse Recapitalization was consummated. In connection with the consummation of the Reverse Recapitalization PowerUp Acquisition Corp. changed its name to Aspire Biopharma Holdings, Inc.

On February 17, 2025, the Company entered into a Securities Purchase Agreement ("Securities Purchase Agreement") with Cobra Alternative Capital Strategies, LLC, a sole member entity controlled by Aspire's former Director of Investor Relations, Lance Friedman, which services were provided through a consulting agreement with Blackstone Capital Advisors, Inc. that was terminated effective February 17, 2025, and Target Capital X LLC (collectively, the "Investors"). Under the Securities Purchase Agreement, the Company issued two 20% original issue discount senior secured convertible debentures ("Debentures") in an aggregate principal amount of $3,750,000, and may issue additional Debentures upon the mutual agreement of the Company and the holders of Debentures representing at least a majority of the aggregate principal and interest owed under the outstanding Debentures ("Requisite Holders"), under the Securities Purchase Agreement (the "Offering"). The conversion price per share of each Debenture is equal to 92.5% of the lowest daily VWAP (as defined in the Debentures) of the Company's shares of common stock during the five trading day period ending on the trading day immediately prior to delivery or deemed delivery of the applicable Conversion Notice (as defined in the Debentures), subject to adjustments related to the trading price of the Company's common stock provided that no conversion may be at a price per share less than the floor price of $4.00 per share (See Note 5 - Convertible Notes).

In connection with the Reverse Recapitalization, on the Closing Date, certain officers, directors, and stockholders of Aspire Biopharma, Inc each entered into a non-competition agreement and lock-up agreements with the Company.

The Reverse Recapitalization was accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, PowerUp, who is the legal acquirer, was treated as the "acquired" company for financial reporting purposes and Aspire Biopharma, Inc was treated as the accounting acquirer. Aspire Biopharma, Inc has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances under the redemption scenarios:

● Aspire Biopharma Inc's existing stockholders will have more than 64.4% of the voting interest of New Aspire under both the no redemption and maximum redemption scenarios;

● Aspire Biopharma Inc's senior management will comprise the senior management of New Aspire;

● the directors nominated by Aspire will represent the majority of the board of directors of New Aspire;

● Aspire Biopharma Inc's operations will comprise the ongoing operations of New Aspire; and

● New Aspire will assume Aspire's name.

Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of a capital transaction in which Aspire is issuing stock for the net assets of PowerUp. The net assets of PowerUp will be stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Reverse Recapitalization will be those of Aspire Biopharma, Inc.

***Equity line of credit Agreement***

On November 11, 2025, the Company entered into a new Purchase Agreement (the "Second ELOC Agreement") with Arena Business Solutions Global SPC II, Ltd. ("Arena"). Under the Second ELOC Agreement, the Company has the right, but not the obligation, to direct Arena to purchase up to $100,000,000 in shares of the Company's common stock (the "ELOC Shares") upon satisfaction of certain terms and conditions contained in the Second ELOC Agreement, including, without limitation, an effective registration statement filed with the SEC registering the resale of the ELOC Commitment Fee Shares (as defined below) and additional shares to be sold to Arena from time to time under the ELOC Agreement.

The term of the ELOC Agreement began on November 11, 2025 and ends on the earlier of (i) the first day of the month following the 36-month anniversary of the execution date, (ii) the date on which the Investor shall have purchased the maximum amount of ELOC Shares, or (iii) the effective date of any written notice of termination delivered pursuant to the terms of the ELOC Agreement (the "Commitment Period"). In consideration for the Arena's execution and delivery of the ELOC Agreement, the Company is required to issue Common Shares to Arena equal to $250,000 divided by the lowest 1-Trading Day VWAP of the Common Shares of the five (5) Trading Days immediately preceding the effectiveness of the initial registration statement (the "Commitment Fee Shares"), plus $25,000 in Common shares for fees associated with the prior ELOC Agreement with the Company, based on a price equal to the lowest 1-Trading Day VWAP of the Common Shares of the five (5) Trading Days immediately preceding the date of execution and delivery of this Agreement.

No Common Shares have been issued to Arena under the Second ELOC Agreement after the balance sheet date through the date that the financial statements were issued. Second ELOC Agreement replaces the ELOC Agreement described in Note 9.

***Securities Purchase Agreement***

On February 17, 2025, the Company entered into a Securities Purchase Agreement ("Securities Purchase Agreement") with Cobra Alternative Capital Strategies, LLC ("Cobra"), a sole member entity controlled by Aspire's former Director of Investor Relations, Lance Friedman, which services were provided through a consulting agreement with Blackstone Capital Advisors, Inc. (a firm that Mr. Friedman controls) that was terminated effective February 17, 2025, and Target Capital X LLC (collectively, the "Investors"). Under the Securities Purchase Agreement, the Company issued two 20% original issue discount senior secured convertible debentures ("Debentures") in an aggregate principal amount of $3,750,000, and may issue additional Debentures upon the mutual agreement of the Company and the holders of Debentures representing at least a majority of the aggregate principal and interest owed under the outstanding Debentures ("Requisite Holders"), under the Securities Purchase Agreement (the "Offering"). The conversion price per share of each Debenture is equal to 92.5% of the lowest daily VWAP (as defined in the Debentures) of the Company's shares of common stock during the five trading day period ending on the trading day immediately prior to delivery or deemed delivery of the applicable Conversion Notice (as defined in the Debentures), subject to adjustments related to the trading price of the Company's common stock provided that no conversion may be at a price per share less than the floor price of $4.00 per share.

The closing was consummated on February 20, 2025 (the "SPA Closing") and the Company issued to the Investors Debentures in an aggregate principal amount of $3,750,000 (the "Closing Debentures"). The Closing Debentures were sold to the Investors for a purchase price of $3,000,000, representing an original issue discount of twenty percent (20%). The Company may issue additional Debentures under the terms of the Securities Purchase Agreement if the Requisite Holders agree. Any such additional closings would be in such amounts as the Company and the Requisite Holders mutually agree upon and would be subject to substantially the same closing conditions as the Closing Debentures.

As consideration for the Investors' consummation of the SPA Closing, concurrently with the SPA Closing, each Investor received a pro rata portion of 1,755 shares of common stock after giving effects to the Reverse Splits as described in Note 2 ("SPA Commitment Shares"), of which 25,000 were freely tradable, subject to a leak out agreement (the "Leak Out Agreement") whereby each Investor's sales may not exceed 15% of the daily trading volume of the common stock on the date of sale.

***Convertible Notes***

On August 19, 2025, the Company entered into a Securities Purchase Agreement (the "Securities Purchase Agreement") with certain investors (the "Purchasers"), pursuant to which the Company sold to the Purchasers certain notes in an aggregate principal amount of $9,687,500 for a subscription price of $7,750,000 (the "August 2025 Notes") with a maturity date of February 19, 2026. The Notes have a 20% original issue discount which is included in the aggregate principal amount of $9,687,500 and do not bear an interest rate. Of the $7,750,000 total funding under the Securities Purchase Agreement, $4,500,000 was funded on August 19, 2025 (the "first Tranche"), $1,000,000 was funded on September 22, 2025 (the "Second Tranche"), and the balance of $2,250,000 (the "Third Tranche") was funded on September 30, 2025. The Notes are convertible into up to an aggregate of 122,647 Common Stock (the " Conversion Shares") after giving effects to the Reverse Splits as described in Note 2, subject to certain conditions. The Company incurred debt issuance costs of $907,500 which is capitalized and amortized over the term on the Notes.

The Notes are convertible (in whole or in part) at any time on or after the thirty-first (31st) day following the Issuance Date into such number of shares of Common Stock as shall be determined by dividing (x) that portion identified by the Purchaser of (A) the outstanding principal amount, plus (B) accrued and unpaid interest with respect to such outstanding principal amount of such Purchaser's Note and any other amounts owing under such Note or other Transaction Documents (the as that term is defined in the Notes) by (y) the conversion price then in effect on the date on which the Purchaser delivers a notice of conversion. The conversion price means the greater of (i) eighty (80%) percent of the lowest Closing Price on any Trading Day during the five (5) Trading Days prior to the applicable conversion date or (ii) the floor price (the "Floor Price"). The Floor Price means 20% of the average closing price of our Common Stock for the five days prior to the Closing Date.

The Notes may not be converted and shares of Common Stock may not be issued under Notes if, after giving effect to the conversion or issuance, such Purchaser (together with its affiliates, if any) would beneficially own in excess of 4.99% of our outstanding shares of our Common Stock, which we refer to herein as the "Note Blocker". The Note Blocker may be raised or lowered to any other percentage not in excess of 9.99% at the option of the applicable Purchaser of Notes, except that any raise will only be effective upon 61-days' prior notice to us.

In connection with the Purchase Agreement, the Company entered into a registration rights agreement, dated as of August 19, 2025 (the "Registration Rights Agreement"), pursuant to which the Company agreed to file the initial resale registration statement by no later than September 18, 2025, to register the resale of the Common Stock underlying the Notes. The resale registration statement became effective on September 30, 2025.

***Conversion of Notes***

In October 2025 and November 2025, a total value of $9,523,683 of convertible notes were converted into 73,998 shares of common stock of the Company after giving effects to the Reverse Splits as described in Note 2.

In January 2026, a total value of $163,817 of convertible notes were converted into 1,630 shares of common stock of the Company after giving effects to the Second Reverse Split as described in Note 2.

***Nasdaq Notices***

On April 16, 2025, the Company received two letters from The Nasdaq Stock Market LLC ("Nasdaq"), each addressing a separate compliance deficiency under the Nasdaq Listing Rules. The first letter notified of the deficiency with regard to Rule 5450(b)(2)(A) (the "MVLS Notice"), which requires a company, whose securities are listed on The Nasdaq Global Market under the "Market Value Standard," to maintain a minimum Market Value of Listed Securities (an "MVLS") of $50,000,000. The deficiency was caused by the Company's MVLS having been below the minimum level for the prior 30 consecutive business days. Under Nasdaq Listing Rule 5810(c)(3)(C), the Company was entitled to a 180-day grace period, which ended on October 13, 2025, to rectify the deficiency. In order to do so, the Company was required to achieve and maintain an MVLS of at least $50,000,000 or more for a minimum of 10 consecutive business days (Nasdaq may monitor the MVLS compliance for up to 10 consecutive business days).

The second letter notified of the deficiency with regard to Rule 5450(a)(1) (the "Bid Price Notice" together with the MVLS Notice, the "Notices"), which requires the Company to maintain a minimum bid price of $1.00 per share (the "Bid Price Rule") for continued listing on The Nasdaq Global Market.

The Company did not regain compliance with the MVLS Rule or the Bid Price Rule within the relevant compliance periods. Accordingly, on October 15, 2025, (the "October Letter") the Staff notified the Company that its securities were subject to delisting from Nasdaq unless the Company timely requested a hearing before the Nasdaq Hearings Panel (the "Panel"). Both items of noncompliance serve as an independent basis for delisting the Company's securities from Nasdaq.

The Company retained an advisor and requested a hearing before the Panel and held the hearing. At the hearing, the Company was granted until February 17, 2026, to regain compliance with the two deficiencies. On February 3, 2026, the Company was notified that it had regained compliance with the Bid Price Rule. As a result of the Preferred Stock Offering, the Company believes that it exceeds the $2,500,000 stockholders' equity rule and is waiting for confirmation that it meets the stockholders' equity rule.

On February 18, 2026, the Company was notified that it has regained compliance with Listing Rule 5450(b)(2)(A), the "MVLS Rule," and is in full compliance with the terms set forth in the Panel's ("Panel") decision dated December 11, 2025.

***Default Notices and Settlement Agreement***

On April 1, 2025, the Company received two default notices, first citing failure to timely file the Company's Form 10-K by March 31, 2025 and for late filing of the Form S-1, as required by Blackstone Subscription Agreement discussed in Note 6, and second citing a cross default to the Securities Purchase Agreement ("Securities Purchase Agreement") with Cobra Alternative Capital Strategies, LLC as described in Note 7, both entities controlled by the Company's former Director of Investor Relations, Lance Friedman, which services were provided through a consulting agreement with Blackstone Capital Advisors, Inc. that was terminated effective February 17, 2025. The Company maintains that it was not in default at any time since the Company filed Form NT 10-K and the required filings were made within the automatic extension period.

On April 24, 2025, the Company entered into a settlement agreement (the "Settlement Agreement") with Cobra Alternative Capital Strategies LLC, Blackstone Capital Advisors, Inc., and their affiliates (collectively, the "Lenders") to resolve all matters related to previously issued notices of default and to amend certain outstanding loan agreements. Pursuant to the Agreement, the Lenders withdrew and cancelled all prior notices of default and acceleration previously delivered to the Company on April 1, 2025. Any alleged previous defaults under the Company's loan agreements were deemed cured, and all previous accelerations of payment were rendered null and void. The Company maintains that it was not in default at any time. Additionally, the Agreement provides for an extension of the maturity dates of key promissory notes by seventy-five (75) days, extending the earliest maturity date to August 15, 2025, and amending additional notes to extend their maturity dates to September 10, 2025.

In connection with the Agreement, the Company agreed to issue 521 shares of common stock after giving effect to the Reverse Splits as described in Note 2 to Blackstone Capital Advisors, Inc. and to register those shares, along with certain other restricted securities, through the filing of a registration statement on Form S-1 no later than May 13, 2025. The Company also agreed to remove lock-up restrictions on certain shares held by Cobra Alternative Capital Strategies LLC, Blackstone Capital Advisors, Inc., and Thor Special Situations LLC, enabling such shares to be made eligible for transfer to the Direct Registration System. The Lenders also agreed to enter into lock-up/leak-out agreements governing the sale of Company shares through August 20, 2025, with sale limitations tied to the Company's daily trading volume, as detailed in the Agreement.

***Appointment of new CEO***

On June 10, 2025, Kraig Higginson, Chief Executive Officer of the Company resigned from the role of Chief Executive Officer and continues to serve as Chairman of the Board of Directors. On June 10, 2025, the Board of Directors appointed Michael Howe, who was then a member of the Board of Directors, to serve as Chief Executive Officer of the Company. Mr. Howe continued to serve as a Director on the Board until his resignation.

On July 24, 2025, Michael Howe, Director and Chief Executive Officer of the Company, stepped down from the role of Director and Chief Executive Officer. In connection with this transition, the Board of Directors appointed Kraig Higginson, currently the Chairman of the Board of Directors, to serve as Interim Chief Executive Officer of the Company, effective July 24, 2025. The Company is currently undergoing a search for a permanent CEO with appropriate experience.

***Board Changes***

On January 7, 2026, Surendra Ajjarapu, a Director of the Company, notified the board of directors of his intention to step down from the role of Director, effective immediately. Mr. Ajjarapu's decision to resign is not due to any disagreement with the Company, the Board of Directors, or any member of the Company's management.

On February 6, 2026, Donald G. Fell resigned from the Company's board of directors. Mr. Fell's decision to resign is not due to any disagreement with the Company, the Board of Directors, or any member of the Company's management.

In connection with this transition, Philip Balatsos has been appointed to fill one of the vacancies on the Board of Directors left by the aforementioned resignations. Philip Balatsos is a Senior financial markets executive with experience in foreign exchange and emerging market sales and trading. He has a proven track record of driving revenue growth, expanding institutional client relationships, and building businesses across global markets. His experience spans bulge-bracket banks, international financial institutions, entrepreneurial ventures, and public company boards. He presently holds a senior position at Oscar Gruss & Son Inc. in foreign exchange sales and trading. He previously served as vice president of foreign exchange and emerging markets rates sales and trading at XP Investments US LLC and was the director of foreign exchange hedge fund sales at Barclays Capital. He currently serves on the Board of Directors of Ciso Global, Inc. and Inspire Veterinary Partners, Inc. (OTCMKTS: IVPR), and served on the Board of Directors of Sadot Group Inc. from October 2019 through December 2023. He earned his Bachelor of Science in business administration from Skidmore College.

***Exchange Agreements***

On January 1, 2026, the Company entered into Exchange Agreements (the "Exchange Agreements") with certain holders of the Company's debt (the "Holders") to exchange approximately $1.75 million in debt for shares (the "Exchange Shares') of the Company's common stock (the "Exchange") (See Note 4). The debt was incurred by the Company's predecessor, PowerUp Acquisition Corp. ("PowerUp") pursuant to subscription agreements dated March 4, 2024, and May 9, 2024. The Holders were Sponsors of PowerUp's initial public offering.

Pursuant to the Exchange Agreements, the Holders may, in their discretion, submit a notice of exchange setting forth the Exchange Amount, the Exchange Shares, and the applicable Exchange Price (as those terms are defined in the Exchange Agreements). Within one business day of receipt of an Exchange Notice, the Company will issue to such holder the number of Exchange Shares equal to the Exchange Amount divided by the Exchange Price, and such Exchange Amount shall be deducted from the Outstanding Balance (as that term is defined in the Exchange Agreements) owed to such Holder. The Exchange Price is equal to the closing price of the Company's Common Stock on the Trading Day immediately prior to any Exchange Notice less one cent ($0.01) which shall be deemed an administrative fee to cover the costs of depositing the Exchange Shares. Each Holder may submit up to four (4) Exchange Notices, but each Exchange Notice may not exchange more than thirty percent (30%) of the applicable Holder's Outstanding Balance. Each Holder must submit all Exchange Notices it determines to submit pursuant to the terms of the Exchange Agreements by no later than January 31, 2026, subject to certain reasonable exceptions. The Exchange Shares shall be delivered to the Holders as freely tradeable, free and clear of any transfer restrictions, and without any restrictive legends.

In addition, upon a financing in excess of $3,000,000 (a "Financing"), the Company may repay part or all of any Holder's Outstanding Balance. Upon a Financing, a Holder may elect to receive cash proceeds from any Financing in an amount equal to twenty five percent (25%) of such Holder's Outstanding Balance, to be applied to such Holder's Outstanding Balance. If a Holder elects to require any part of its Outstanding Balance to be repaid from the proceeds of a Financing, it can elect to receive up to 33.33% of the aggregate proceeds of such Financing.

In January 2026, pursuant to the Exchange Agreements, the Subscription Agreement Loan balances along with applicable interest were converted into 13,121 shares of ordinary stock of the Company after giving effects to the Reverse Splits as described in Note 2.

 ****

***2024 Stock Incentive Plan and Approval of Equity Award Agreements***

On January 8, 2026, the Board of Directors (the "Board") of Aspire Biopharma Holdings, Inc. (the "Company") confirmed certain terms of the 2024 Stock Incentive Plan (the "Plan"), which was approved by the Company's stockholders at an extraordinary general meeting of stockholders held on February 4, 2025 (the "Meeting"), by determining the share limit numbers of 4,075 after giving effects to the Reverse Splits as described in Note 2, to be included in the Plan in accordance with the terms of the Plan and the Proxy Statement for the Meeting (the "Proxy Statement"). The Plan permits the Company to grant various incentive awards to eligible employees, directors, and consultants, with the goal of attracting, retaining and motivating persons who make (or are expected to make) important contributions to the Company by providing these individuals with equity ownership opportunities and to align their interests and efforts to the long-term interests of the Company's stockholders.

On January 8, 2026, the Board also approved and adopted forms of award agreements with respect to grants of restricted stock units("RSUs") and stock options ("Options") under the Plan, to be used for grants of equity awards to the Company's executive officers, directors and other employees (the "Award Agreements"). Each RSU represents the right to receive a share (a "Share") of the Company's common stock, par value $0.0001 per share (the "Common Stock"), upon the RSU becoming vested, subject to continued employment through the applicable vesting date. Each Option represents the right to purchase a Share at a predetermined exercise price, subject to continued employment through the applicable vesting date.

***Reverse Stock Split***

On January 16, 2026, the Company effected a 1-for-40 reverse stock split. The authorized shares and par value per share of common stock were unchanged by the reverse stock split.

On May 11, 2026, the Company effected a 1-for-30 reverse stock split. The authorized shares and par value per share of common stock were unchanged by the reverse stock split.

***January 2026 Securities Purchase Agreement***

On January 26, 2026, Aspire Biopharma Holdings, Inc. (the "Company"), entered into a Securities Purchase Agreement (the "Securities Purchase Agreement") with certain investors (the "Purchasers"), pursuant to which the Company sold to the Purchasers certain debentures in an aggregate principal amount of $2,173,913 for a subscription price of $2,000,000 (the "Debentures") with a maturity date of April 23, 2026. The Notes have an 8% original issue discount and do not bear any annual interest. The Debentures are due the sooner of (i) 90 days, or (ii) upon the Company's receipt of gross proceeds of at least $8,000,000 in any equity or debt financing. The Company shall have the option to prepay this Debenture(s) at any time after the Original Issue Date at an amount equal to the Principal Amount. The Company shall provide Holder(s) with ten (10) Business Days' prior written notice of intention to satisfy the Debentures, whether at maturity, by prepayment, or in default. The Debentures are not convertible into common stock. In connection with the financing the Purchasers received an aggregate of 790,000 Shares of the Company's common stock as incentive shares.

***Series A Preferred Stock***

Pursuant to the terms of the Securities Purchase Agreement, on February 2, 2026, the Company filed the Certificate of Designation with the Delaware Secretary of State designating 25,000 shares of its authorized and unissued preferred stock as Series A Convertible Preferred Stock. The Certificate of Designation sets forth the rights, preferences and limitations of the shares of Preferred Stock. Terms not otherwise defined in this item shall have the meanings given in the Certificate of Designation.

The following is a summary of the terms of the Preferred Stock:

**Conversion.** Pursuant to the Certificate of Designation, which is filed as Exhibit 3.1 to this Current Report on Form 8-K (the "Certificate of Designation"), each share of Preferred Stock, subject to the Stockholder Approval (as defined in the Certificate of Designation), is convertible at the option of the holder into shares of Common Stock at a conversion price equal to 80% of the lowest closing price of our Common Stock as of the closing of the Principal Market (as such term is defined in the Certificate of Designation)for each of the five (5) Trading Days (as such term is defined in the Certificate of Designation) immediately prior to the date of conversion, or other date of determination (but in no event less than the floor price), subject to certain adjustments as set forth in the Certificate of Designation (the "Conversion Price"). The floor price is equal to 20% of the Minimum Price (as such term is defined by the rules and regulations of the Nasdaq Stock Market LLC, Rule 5635(d)(1)(A)) (or such lower amount as permitted, from time to time, by the Principal Market (the "Floor Price"). The number of shares of Common Stock issuable upon conversion of a share of Preferred Stock shall be determined by dividing (x) the stated value of the Preferred Stock to be converted by (y) the Conversion Price.

The shares of Preferred Stock will be convertible immediately upon issuance, at the option of the holder, at the Conversion Price, subject to a conversion cap that limits the conversion of the Preferred Stock such that an Investor may not beneficially own more than 4.99% (the "Maximum Percentage") of the shares of Common Stock that would be issued and outstanding following such conversion. An Investor may decrease or increase the Maximum Percentage by written notice to the Company from time to time to any other percentage not in excess of 9.99%, provided that any increase in the Maximum Percentage will not be effective until the sixty-first(61st) day after such notice is delivered to the Company, provided further that a holder shall not convert any Preferred Stock to the extent that, after giving effect to such conversion, the aggregate number of shares of Common Stock issued or issuable upon conversion of the Preferred Stock would exceed 19.99% of the issued and outstanding shares of the Company's Common Stock unless and until the Company has obtained the shareholder approval required by Nasdaq Listing Rule 5636(d).

**Ranking.** The Series A shall rank (i) senior to all of the Common Stock; (ii) senior to any class or series of capital stock of the Corporation hereafter created specifically ranking by its terms junior to any Series A ("Junior Securities"); (iii) on parity with any class or series of capital stock of the Corporation created specifically ranking by its terms on parity with the Preferred Stock ("Parity Securities"); and (iv) junior to any class or series of capital stock of the Corporation hereafter created specifically ranking by its terms senior to any Series A ("Senior Securities"), in each case, as to dividends or distributions of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntarily or involuntarily. Subject to any superior liquidation rights of the holders of any Senior Securities of the Corporation and the rights of the Corporation's existing and future creditors, upon any liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary (a "Liquidation"), each Holder shall be entitled to be paid out of the assets of the Corporation legally available for distribution to stockholders, prior and in preference to any distribution of any of the assets or surplus funds of the Corporation to the holders of the Common Stock and Junior Securities and pari passu with any distribution to the holders of Parity Securities, an amount equal to the Stated Value for each share of Series A held by such Holder and an amount equal to any accrued and unpaid dividends thereon, and thereafter the Holders shall be entitled to receive out of the assets, whether capital or surplus, of the Corporation the same amount that a holder of Common Stock would receive if the Series A were fully converted (disregarding for such purposes any conversion limitations hereunder) to Common Stock which amounts shall be paid pari passu with all holders of Common Stock. The Corporation shall mail written notice of any such Liquidation, not less than sixty (60) days prior to the payment date stated therein, to each Holder.

**Price Protection.** Except for any Exempt Issuance, in the event the Corporation issues or sells any securities including Options or Convertible Securities (or amends any outstanding securities of the Company), at an effective price of, or with an exercise or conversion price of less than the Conversion Price, then upon such issuance or sale, the Conversion Price shall be reduced to the lesser of (i) the Floor Price; or (ii) the sale price or the exercise or conversion price of the securities issued or sold. In case any shares of Common Stock, Convertible Securities or Options are issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction, each share of Common Stock underlying any such Convertible Securities or Options shall be deemed to be one additional share of Common Stock for the purposes of determining the effective price of the non-Exempt Issuance.

**Participation Rights.** Subject to certain terms and conditions in the Certificate of Designation, until the six (6) month anniversary of the issuance of the Series A to the Holder, upon any Subsequent Financing, the Holders of the outstanding Series A shall have the right to participate in an amount equal to an aggregate of 30% of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing.

***February 2026 Securities Purchase Agreement***

On February 6, 2026, Aspire Biopharma Holdings, Inc. (the "Company") entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain accredited investors (the "Investors"), pursuant to which the Company agreed to issue and sell, in a private placement (the "Offering"), up to 25,000 shares (the "Shares") of the Company's newly-designated Series A Convertible Preferred Stock, par value $0.0001 per share (the "Preferred Stock"), which Preferred Stock is convertible into shares of the Company's common stock, par value $0.0001 per share (the "Common Stock") as more fully described in the Certificate of Designations, Preferences and Rights of the Series A Convertible Preferred Stock (the "Certificate of Designation").

Pursuant to the Certificate of Designation on February 6, 2025, subject to Stockholder Approval (as defined below), each share of Preferred Stock is convertible at the option of the holder into shares of Common Stock at a conversion price equal to 80% of the lowest closing price of our Common Stock as of the closing of the Principal Market (as such term is defined in the Certificate of Designation) for each of the five (5) Trading Days (as such term is defined in the Certificate of Designation) immediately prior to the date of conversion, or other date of determination (but in no event less than the floor price), subject to certain adjustments as set forth in the Certificate of Designation (the "Conversion Price").The floor price is equal to 20% of the Minimum Price (as such term is defined by the rules and regulations of The Nasdaq Stock Market LLC under Nasdaq Listing Rule 5635(d)(1)(A)) or such lower amount as permitted, from time to time, by the Principal Market (the "Floor Price"). The number of shares of Common Stock issuable upon conversion of a share of Preferred Stock shall be determined by dividing (x) the stated value of the Preferred Stock to be converted by (y) the Conversion Price.

The shares of Preferred Stock will be convertible immediately upon issuance, at the option of the holder, at the Conversion Price, subject to a conversion cap that limits the conversion of the Preferred Stock such that an Investor may not beneficially own more than 4.99% of the shares of Common Stock that would be issued and outstanding following such conversion (the "Maximum Percentage"). An Investor may decrease or increase the Maximum Percentage by written notice to the Company from time to time to any other percentage not in excess of 9.99%, provided that any increase in the Maximum Percentage will not be effective until the sixty-first (61st) day after such notice is delivered to the Company, provided further that a holder shall not convert any Preferred Stock to the extent that, after giving effect to such conversion, the aggregate number of shares of Common Stock issued or issuable upon conversion of the Preferred Stock would exceed 19.99% of the issued and outstanding shares of the Company's Common Stock unless and until the Company has obtained the shareholder approval required by Nasdaq Listing Rule 5636(d) ("Shareholder Approval").

Pursuant to the Securities Purchase Agreement, the Company closed on an aggregate of 13,750 Shares resulting in gross proceeds of $11,000,000 including the conversion of $943,801 in existing debt into Shares on the same terms, before deducting fees to be paid to the placement agents and financial advisors of the Company and other estimated offering expenses payable by the Company.

RBW Capital Partners, LLC acted as placement agent for the Offering. As compensation in connection with the Offering, the Company paid the placement agent a placement agent fee equal to $900,000.

The initial closing of the issuance of Preferred Stock occurred on or February 6, 2025 (the "Initial Closing"). At the Initial Closing, the Company issued 13,750 Shares of Preferred Stock for aggregate gross proceeds of $11,000,000 million, which included $943,801 of debt that converted into Preferred Shares on the same terms. Subject to the satisfaction or waiver of certain conditions set forth in the Purchase Agreement, a second closing may take place, pursuant to which the Company may issue up to 12,500 additional Shares of Preferred Stock for aggregate proceeds not to exceed $10,000,000 (the "Second Closing"). The Second Closing is contingent on the effectiveness of the registration statement to register the shares of Common Stock issuable upon conversion of the Shares and receipt of Shareholder Approval.

In connection with the Offering, the Company will file a proxy statement with the United States Securities and Exchange Commission (the "Commission") seeking the approval of its stockholders for (i) the transactions contemplated by the Securities Purchase Agreement, (ii) the issuance of the Preferred Stock and the Common Stock issuable upon the conversion of the Preferred Stock, (iii) a reverse stock split of the Company's Common Stock at a range of one for five (1-for-5) to a maximum of one for five hundred (1-for-500) shares, whether effected in a single transaction or in multiple transactions, and all related amendments to the Company's certificate of incorporation, and (iv) an amendment to the Company's certificate of incorporation to effect an increase in the Company's authorized shares to the extent required to issue the securities. Pursuant to the Securities Purchase Agreement, the Company shall file the proxy statement within ten (10) business days after the initial closing.

In addition, the Company and each Investor entered into a registration rights agreement (the "Registration Rights Agreement"). Pursuant to the Registration Rights Agreement, within fifteen (15) days following the Initial Closing, the Company shall file a resale registration statement on Form S-1 (or Form S-3 if the Company is S-3 eligible) providing for the resale by the Investors of the Registrable Securities (as defined in the Registration Rights Agreement) and to use its best efforts to cause such resale registration statement to be declared effective by the staff of the Commission within forty five (45) days following the Initial Closing, or within sixty five (65) days in the event of a review by the Commission.

Pursuant to the Securities Purchase Agreement, the Investors have the right to appoint one (1) director to our Board of Directors. The Securities Purchase Agreement and Registration Rights Agreement contain certain representations and warranties, covenants and indemnities customary for similar transactions. The representations, warranties and covenants contained in the Securities Purchase Agreement and Registration Rights Agreement were made solely for the benefit of the parties to the Securities Purchase Agreement and Registration Rights Agreement and may be subject to limitations agreed upon by the contracting parties.

**LOI to Acquire DCS**

On April 15, 2026, the Company announced that it has entered into a non-binding letter of intent (the "LOI") for the acquisition (the "Acquisition") of 100% of the Driver Controls Systems business unit **(**"DCS"**)** of Firefish Topco, LLC ("FTLLC"), from the shareholders of FTLLC (the "Sellers"), pursuant to which the Company intends to acquire 100% of the equity, assets and liabilities (subject to certain agreed exclusions) of the subsidiaries constituting the operations of DCS through a combination of stock and asset transactions, to be mutually agreed upon between the parties.

Upon completion of the Acquisition, the Company plans to engage Lakewood & Company, LLC to provide management services for the operation of DCS. Lakewood's principals have more than 100 years' experience in the automotive industry.

*Purchase Price and Consideration*

 

The LOI provides for an enterprise valuation of $30.0 million on a cash-free, debt-free basis (the "Purchase Price"), payable in cash at closing, subject to certain customary adjustments, including adjustments for (i) accrued income taxes (net of receivables) and (ii) funded indebtedness. The Purchase Price is not subject to a working capital adjustment so long as the business is operated in the ordinary course consistent with past practice. The Company does not anticipate procuring any new equity raise to consummate the purchase.

*Break-Up Fees*

 

The LOI provides for break-up fees of $3.5 million payable by the Company or Sellers, respectively, under certain circumstances, including a failure to proceed in good faith or to consummate the closing when required. Such fees are subject to customary exceptions, including the failure of closing conditions, a material breach by the counterparty, or the exercise of specified termination rights.

 

*Exclusivity and Confidentiality*

 

The Sellers have agreed to a "no-shop" provision for an initial period of 30 days (subject to a potential extension), during which they may not solicit or engage in alternative acquisition proposals, subject to limited exceptions. The parties have also agreed to customary confidentiality restrictions.

*Non-Binding Nature*

 

Except for certain provisions, including those relating to exclusivity, confidentiality, expenses, and (following public disclosure) break-up fees, the LOI is non-binding and does not obligate the parties to consummate the Acquisition. The completion of the Acquisition remains subject to the negotiation and execution of a definitive Purchase Agreement and satisfaction of the conditions set forth therein. Engagement of Lakewood & Company remains subject both to completion of the Acquisition and to the negotiation and execution of a definitive management agreement and satisfaction of the conditions set forth therein.

**Commitment Letter for Credit Facility**

The Company entered into a commitment letter with a national financial institution providing for a senior secured credit facility of Aspire in an aggregate principal amount of up $22,500,000 (the "Aspire Credit Facility"). Aspire intends to use the proceeds of the Aspire Credit Facility, if consummated, to finance the acquisition of 100% of DCS. The Company does not anticipate procuring any new equity raise to consummate the purchase.

The Aspire Credit Facility is expected to consist of a senior secured five-year term loan, at an interest rate equal to 325 basis points above the one-month term Secured Overnight Financing Rate. The final terms of the Aspire Credit Facility, including the senior secured term loan, will be subject to execution of definitive credit documentation and the satisfaction of customary closing conditions.

**Key Financial Definitions/Components of Results**

***Revenue***

The Company commenced earning revenue in the fourth quarter of 2025 from the sale of its nutraceutical products.

***Operating Expenses***

We classify our operating expenses into the following categories:

● *General and administrative expenses.* General and administrative expenses consist primarily of personnel-related expenses for our executives, consultants and advisors. These expenses also include non-personnel costs, such as rent, office supplies, legal, audit and accounting services and other professional fees.

● *Research and development expenses.* Research and development expenses include internal personnel and third-party consulting costs related to preliminary research and development of the Company's products.

● *Sales and marketing expenses.* Sales and marketing expenses consist primarily of business development professional fees, advertising and marketing costs.

***Critical Accounting Estimates***

Management's discussion and analysis of our financial condition and results of operations is based on our unaudited condensed consolidated financial statements, which are prepared in conformity with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make certain estimates, judgments, and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions can be subjective and complex and may affect the reported amounts of assets and liabilities, revenues, and expenses reported in those financial statements. As a result, actual results could differ from such estimates and assumptions. Such changes to estimates could potentially result in impacts that would be material to the consolidated financial statements.

While our significant accounting policies are described in more detail in Note 3 to our unaudited condensed consolidated financial statements appearing in Item 1 to this Annual Report on Form 10-K, we believe that the following accounting policies were most critical to the judgments and estimates used in the preparation of our unaudited condensed consolidated financial statements.

***Use of Estimates***

The preparation of unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements. Making estimates requires management to exercise significant judgment. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those significant estimates. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Significant accounting estimates included in these financial statements are the determination of the fair value of the subscription agreements, convertible notes and the securities purchase agreement liability. Such estimates may be subject to change as more current information becomes available and accordingly, the actual results could differ significantly from those estimates.

***Segment Information***

ASC 280, Segment Reporting ("ASC 280"), defines operating segments as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision-maker ("CODM") in deciding how to allocate resources and in assessing performance. The Company's CODM is the Chief Executive Officer, who has ultimate responsibility for the operating performance of the Company and the allocation of resources. The CODM reviews the assets, operating results, and financial metrics for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that there is only one reportable segment. The CODM assesses performance for the single reportable segment and decides how to allocate resources based on operating expenses that also is reported on the statements of operations as net income. The measure of segment assets is reported on the consolidated balance sheet as total assets. When evaluating the Company's performance and making key decisions regarding resource allocation, the CODM reviews several key metrics included in operating expenses and cash and cash equivalents.

Gross margin, operating expenses, inclusive of general and administrative costs, research and development costs and sales and marketing costs, other expenses, net and income tax expense, are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to fund operations. The CODM also reviews operating expenses to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements. The categories of operating expenses, as reported on the unaudited condensed consolidated statements of operations, are the significant segment expenses provided to the CODM on a regular basis.

***Share-Based Compensation***

The Company accounts for share-based compensation arrangements granted to employees and vendors in accordance with ASC 718 by measuring the grant date fair value of the award and recognizing the resulting expense over the period during which the employee is required to perform service in exchange for the award. Equity-based compensation expense is only recognized for awards subject to performance conditions if it is probable that the performance condition will be achieved. The Company accounts for forfeitures when they occur.

 ****

***Warrants***

The Company reviews the terms of warrants to purchase its common stock to determine whether warrants should be classified as liabilities or stockholders' equity (deficit) in its unaudited condensed consolidated balance sheets. In order for a warrant to be classified in stockholders' equity (deficit), the warrant must be (i) indexed to the Company's equity and (ii) meet the conditions for equity classification.

If a warrant does not meet the conditions for stockholders' equity (deficit) classification, it is carried on the unaudited condensed consolidated balance sheets as a warrant liability measured at fair value, with subsequent changes in the fair value of the warrant recorded in other nonoperating losses (gains) in the unaudited condensed consolidated statements of operations. If a warrant meets both conditions for equity classification, the warrant is initially recorded, at its relative fair value on the date of issuance, in stockholders' equity (deficit) in the unaudited condensed consolidated balance sheets, and the amount initially recorded is not subsequently remeasured at fair value.

***Revenue recognition***

The Company recognizes revenue in accordance with ASC 606. The core principle of the guidance in ASC 606 is that an entity should recognize revenue to depict the transfer of 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. To achieve the core principle, the Company applied the following five-step model that requires entities to exercise judgment:

**(1) Identify the contracts or agreements with a customer:** The Company sells pharmaceutical products directly to customers from its website. The Company's revenue is derived from the customer orders evidenced by invoices issued. Orders placed by customers constitute the Company's contracts with customers.

**(2) Identifying the performance obligations in the contract or agreement:** The contract with the customer contains a single performance obligation: the sale of the product.

**(3) Determine the transaction price:** The Company's sales arrangements for pharmaceutical products require a full prepayment from the customer at a fixed price per unit based on the terms of the invoice with the customer and before the shipment of products. The transaction price is the amount that reflects the consideration which the Company expects to receive.

**(4) Allocate the transaction price to the separate performance obligations:** All transaction prices are allocated to the single performance obligation.

**(5) Recognize revenue as each performance obligation is satisfied:** This performance obligation is satisfied when control of the product is transferred to the customer, which generally occurs upon shipment. The Company receives orders for products to be delivered over multiple dates that may extend across reporting periods. The Company's accounting policy treats shipping and handling activities as a fulfillment cost. The Company invoices for each order upon payment and recognizes revenue at the fixed price for each distinct product delivered when transfer of control has occurred, which is generally upon shipment.

The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the services it transfers to its clients.

***Recent Accounting Pronouncements***

A discussion of recently issued accounting standards applicable to Aspire is described in Note 3, Significant Accounting Policies, in the Notes to Financial Statements contained elsewhere in this Annual Report on Form 10-K.

**Results of Operations**

The following tables set forth the results of our operations for the periods presented, as well as the changes between periods. The period-to-period comparison of financial results is not necessarily indicative of future results.

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

The following table sets forth the Company's unaudited condensed consolidated statements of operations data for the three months ended March 31, 2026 and 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | |
|  | **2026** | **2025** |<br>**Change** |
| Net revenue | $28353 | $- | $28353 |
| Cost of revenue | 22603 | - | 22603 |
| Gross margin | 5750 |  | 5750 |
| Operating expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 1020457 | 15073548 | (14053091) |
| &nbsp;&nbsp;&nbsp;Research and development | 296723 | 263093 | 33630 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 334739 | 219839 | 114900 |
| Loss from operations | (1646169) | (15556480) | 13910311 |
| Other income (expenses): |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 5009 |  | 5009 |
| &nbsp;&nbsp;&nbsp;Interest Expense | (1595315) | (289931) | (1302967) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities and convertible notes | 251807 | (94917) | 346724 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt | (238224) | - | (238224) |
| &nbsp;&nbsp;&nbsp;Other expense, net | (1576723) | (384848) | (1191875) |
| Net Loss | (3222892) | (15941328) | 12718436 |

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***Gross Profit***

The Company commenced sale of products during the quarter ended September 30, 2025. For the three months ended March 31, 2026, total revenue was $28,353 and total cost of revenue was $22,603.

***General and Administrative***

General and administrative expenses for the three months ended March 31, 2026 was $1,020,457 as compared to $15,073,548 for the three months ended March 31, 2025. The $14,053,091 decrease in general and administrative mainly reflects decreases in stock-based compensation. Aspire expects that its general and administrative expenses will increase in future periods commensurate with the expected growth of its business and increased expenditures associated with its status as an exchange listed public company.

***Research and Development***

Research and development expenses for the three months ended March 31, 2026 was $296,723 as compared to $263,093 for the three months ended March 31, 2025. The $33,630 increase in research and development reflects increases in personnel and supplies related costs as the Company continues to develop its products. The Company expects that its research and development expense will increase in future periods commensurate with the expected growth of its business.

 ****

***Sales and Marketing***

Sales and marketing for the three months ended March 31, 2026 was $334,739 as compared to $219,839 for the three months ended March 31, 2025. The $114,900 increase in sales and marketing reflects increases in marketing such as investor awareness costs and product sampling as the Company continues to develop its products. Aspire expects that its sales and marketing expense will increase in future periods commensurate with the expected growth of its business.

***Interest Income***

Interest income of $5,009 for the three months ended March 31, 2026, is related to interest earned on bank deposits.

***Interest expense***

Interest expense for the three-month ended March 31, 2026 was $1,592,898 as compared to $289,931 for the three months ended March 31, 2025. The increase in interest expense of $1,340,971 is a result of the accrual of interest on the convertible notes, subscription agreement and the amortization of debt discount associated with the notes payable – related party.

***Change in fair value of derivative liabilities and convertible notes***

Change in fair value of derivative liabilities and convertible notes for the three months ended March 31, 2026 was $251,807 as compared to $(94,917) for the three months ended March 31, 2025. The $346,724 increase in change in fair value of derivative liabilities and convertible notes is a result of change in fair value from a reduction in subscription loan agreements, convertible notes, forward purchase agreement liability and derivative liability.

***Loss on extinguishment of debt***

The loss on extinguishment of debt for the three months ending March 31, 2026 is a result of true up shares issued to Holders pursuant to the January 2026 Exchange agreements.

**Liquidity and Capital Resources**

The Company's primary sources of liquidity have been cash from financing activities. For the three months ended March 31, 2026, net loss was $3,222,892. The Company had an accumulated deficit of $30,480,973 as of March 31, 2026. As of March 31, 2026, working capital was $3,964,715 and cash was $5,857,024.

In February 2025, the Company received proceeds of approximately $265,827 as a result of the Reverse Recapitalization. Immediately after the consummation of the Reverse Recapitalization, the Company received $3,000,000 from the issuance of convertible notes and an additional net cash proceeds of $2,661,459 after partial repayment of the convertible notes and deal costs pursuant to the August 19, 2025 Securities Purchase Agreement. In February 2026, the Company entered into a Securities Purchase Agreement (See Note 8) pursuant to which it received net payout of approximately $6,777,206 after repayment of the remaining convertible notes and deal costs under the first tranche for purchases of convertible preferred stock. The Company also entered into an ELOC agreement in November 2025, pursuant to which it can sell up to $100 million in common stock over 24 months. In April 2026, the Company closed the final tranche of the Securities Purchase Agreement (See Note 8) and received an additional $9,000,000 after payment of applicable fees.

The Company assesses its liquidity in terms of its ability to generate adequate amounts of cash to meet current and future needs. Its expected primary uses of cash on a short and long-term basis are for working capital requirements and other liquidity needs. Management has determined that the Company's current liquidity position is sufficient to fund its operations for at least one year after the filing of these unaudited condensed consolidated financial statements.

**Cash flows for the three months ended March 31, 2026 and 2025**

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

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| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Net cash used in operating activities | $(3038522) | $(1751528) |
| Net cash provided by financing activities | $7891642 | $3094438 |

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*Net Cash Flows Used in Operating Activities*

Net cash flows used in operating activities was $3,038,522 during the three months ended March 31, 2026 compared to net cash flows used in operating activities of $1,751,528 during the three months ended March 31, 2025. The period-to-period change was a result of Aspire's net loss for the period partially offset by an increase in prepaid and other current assets, increase in inventories and a decrease in accounts payable and accrued expenses.

*Net Cash Flows Provided by Financing Activities*

For the three months ended March 31, 2026, net cash flows provided by financing activities was $7,891,642 compared to net cash flows provided by financing activities of $3,094,438 during the three months ended March 31, 2025. The period-to-period change was primarily due to proceeds from the issuance of Series A Convertible Preferred Stock, partially offset by repayments of convertible notes and debentures.

**Off-Balance Sheet Financing Arrangements**

We have no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of March 31, 2026. We do not participate in transactions that create relationships with entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

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

As a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act), we are not required to provide disclosure under this Item 3.

**Item 4. Controls and Procedures**

**Evaluation of Disclosure Controls and Procedures**

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2026. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were not effective including those controls surrounding complex accounting areas such as the accounting for the Company's recapitalization.

**Limitations on the Effectiveness of Controls**

Management of the Company, including its Chief Executive Officer and its Chief Financial Officer, does not expect that the Company's disclosure controls and procedures or its internal control over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Furthermore, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons or by the collusion of two or more persons. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of the effectiveness of controls to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

**Changes in Internal Control over Financial Reporting**

During the fiscal quarter ended March 31, 2026, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Our process for evaluating controls and procedures is continuous and encompasses constant improvement of the design and effectiveness of established controls and procedures.

**PART II - OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

As discussed in Note 12 to the unaudited condensed consolidated financial statements, in April 2026 Srirama Associates, LLC filed a lawsuit in the Superior Court of the State of Delaware alleging breach of contract related to an amended promissory note fee. The complaint seeks approximately $1,000,000 in damages, plus interest and costs. The Company disputes the claim and filed a motion to dismiss on May 11, 2026. No liability has been recorded as of March 31, 2026.

**ITEM 1A. RISK FACTORS**

There have been no material changes to the risk factors disclosed under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 30, 2026

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES**

During the quarter ended March 31, 2026, we issued an aggregate of 13,750 shares of our Series A Convertible Preferred Stock in a private placement to institutional investors for gross proceeds of $10,000,000 pursuant to a Securities Purchase Agreement entered into in February 2026. The shares were issued in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D. The investors are accredited and represented their investment intent; no general solicitation or advertising was used.

In January 2026, we issued 26,333 shares of common stock as incentive shares to investors in connection with a short-term debenture financing, and 21,525 shares of common stock to certain lenders pursuant to exchange agreements that converted outstanding subscription agreement loans and accrued interest into equity. We also issued 202 "true-up" shares of common stock to Arena under our equity line of credit commitment fee. These issuances were made in private transactions exempt from registration under Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D.

We did not repurchase any of our equity securities during the quarter ended March 31, 2026. There were no proceeds used from a registered offering during the period.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None

**ITEM 4. MINE SAFETY DISCLOSURES**

None

**ITEM 5. OTHER INFORMATION**

During the quarter ended March 31, 2026, none of our directors or officers adopted, modified or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements as defined in Item 408 of Regulation S-K.

**ITEM 6. EXHIBITS**

 

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 10.1 | [Form of Purchase Agreement (incorporated by reference from Exhibit 10.1 to the Current Report 8-K filed with the SEC on February 20, 2025)](https://www.sec.gov/Archives/edgar/data/1847345/000149315225007732/ex10-1.htm) |
| 10.2 | [Form of Leak Out Agreement (incorporated by reference from Exhibit 10.2 to the Current Report 8-K filed with the SEC on February 20, 2025)](https://www.sec.gov/Archives/edgar/data/1847345/000149315225007732/ex10-2.htm) |
| 10.3 | [Form of Securities Purchase Agreement (incorporated by reference from Exhibit 10.1 to the Current Report 8-K filed with the SEC on February 21, 2025)](https://www.sec.gov/Archives/edgar/data/1847345/000149315225007898/ex10-1.htm) |
| 10.4 | [Form of Debenture (incorporated by reference from Exhibit 10.40 to the Current Report 8-K filed with the SEC on February 21, 2025)](https://www.sec.gov/Archives/edgar/data/1847345/000149315225007898/ex10-40.htm) |
| 10.5 | [Purchase Agreement, dated November 11, 2025, between Aspire Biopharma Holdings, Inc. and Arena Business Solutions Global SPC II, Ltd. (incorporated by reference from Exhibit 10.1 to the Current Report on Form 8-K filed November 14, 2025)](https://www.sec.gov/Archives/edgar/data/1847345/000149315225022580/ex10-1.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.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Labels Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and included as Exhibit 101) |

---

\* Filed herewith.

**SIGNATURES**

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **ASPIRE BIOPHARMA HOLDINGS, INC.** | **ASPIRE BIOPHARMA HOLDINGS, INC.** |
| Date: May 14, 2026 | By: | */s/ Kraig T. Higginson* |
|  | Name: | Kraig T. Higginson |
|  | Title: | Chief Executive Officer and Chairman |
|  |  | (Principal Executive Officer) |
| Date: May 14, 2026 | By: | */s/ Ernest J. Scheidemann* |
|  | Name: | Ernest J. Scheidemann |
|  | Title: | Chief Financial Officer |
|  |  | (Principal Financial and Accounting Officer) |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Kraig T. Higginson, certify that:

1. I
 have reviewed this quarterly report on Form 10-Q of Aspire Biopharma Holdings, Inc..;

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(s) 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)) 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 my supervision, to
 ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during
 the period in which this report is being prepared; and

b) (Paragraph
 omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a));

c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report my 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(s) 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 14, 2026 |  |
|  | */s/ Kraig T. Higginson* |
|  | Kraig T. Higginson |
|  | Chief Executive Officer and Chairman |
|  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Ernest J. Scheidemann, certify that:

1. I
 have reviewed this quarterly report on Form 10-Q of Aspire Biopharma Holdings, Inc.;

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(s) 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)) 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 my supervision, to
 ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during
 the period in which this report is being prepared; and

b) (Paragraph
 omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a));

c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report my 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(s) 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 14, 2026 |  |
|  | */s/ Ernest J. Scheidemann* |
|  | Ernest J. Scheidemann |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Aspire Biopharma Holdings, Inc. (the "Company") on Form 10-Q for the quarterly period ended March 31, 2026, as filed with the Securities and Exchange Commission (the "Report"), I, Kraig T. Higginson, Chief Executive Officer and Chairman of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company.

---

| | |
|:---|:---|
| Dated: May 14, 2026 |  |
|  | */s/ Kraig T. Higginson* |
|  | Kraig T. Higginson |
|  | Chief Executive Officer and Chairman |
|  | (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350**

**AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Aspire Biopharma Holdings, Inc. (the "Company") on Form 10-Q for the quarterly period ended March 31, 2026, as filed with the Securities and Exchange Commission (the "Report"), I, Ernest J. Scheidemann, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The
 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
 of the Company.

---

| | |
|:---|:---|
| Dated: May 14, 2026 |  |
|  | */s/ Ernest J. Scheidemann* |
|  | Ernest J. Scheidemann |
|  | Chief Financial Officer |
|  | (Principal Financial and Accounting Officer) |

---