# EDGAR Filing Document

**Accession Number:** 0000890821
**File Stem:** 0001493152-26-007345
**Filing Date:** 2026-2
**Character Count:** 600406
**Document Hash:** 9ea81e56a2c8ed019125194c3f82e128
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-007345.hdr.sgml**: 20260218

**ACCESSION NUMBER**: 0001493152-26-007345

**CONFORMED SUBMISSION TYPE**: 424B3

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20260218

**DATE AS OF CHANGE**: 20260218

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Enveric Biosciences, Inc.
- **CENTRAL INDEX KEY:** 0000890821
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 954484725
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B3
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-293327
- **FILM NUMBER:** 26649691

**BUSINESS ADDRESS:**
- **STREET 1:** 245 FIRST STREET RIVERVIEW II 18TH FLOOR
- **CITY:** CAMBRIDGE
- **STATE:** MA
- **ZIP:** 02142
- **BUSINESS PHONE:** (617) 444-8400

**MAIL ADDRESS:**
- **STREET 1:** 245 FIRST STREET RIVERVIEW II 18TH FLOOR
- **CITY:** CAMBRIDGE
- **STATE:** MA
- **ZIP:** 02142

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AMERI Holdings, Inc.
- **DATE OF NAME CHANGE:** 20150527

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SPATIALIZER AUDIO LABORATORIES INC
- **DATE OF NAME CHANGE:** 19950323

**Filed pursuant to Rule 424(b)(3)**

 **Registration No. 333-293327**

 **PROSPECTUS**

![](form424b3_001.jpg)

**ENVERIC BIOSCIENCES, INC.**

**Up to 328,802 Shares of Common Stock Underlying the Series G Warrants**

**Up to 328,802 Shares of Common Stock Underlying the Series H Warrants**

**Up to 23,016 Shares of Common Stock Underlying the Placement Agent Warrants**

This prospectus relates to the issuance by us and the resale by the selling stockholders named in this prospectus (the "*Selling Stockholders*") of (i) up to 328,802 shares of our Common Stock, par value $0.01 per share ("*Common Stock*") that are issuable to certain Selling Stockholders upon the exercise of Series G Warrants to purchase shares of our Common Stock at a per share exercise price of $4.16 (the "*Series G Warrants*") that we issued to certain Selling Stockholders in the closing of a private placement that occurred on January 28, 2026 (the "*Private Placement*"); (ii) up to 328,802 shares of Common Stock that are issuable to certain Selling Stockholders upon the exercise of Series H Warrants to purchase shares of our Common Stock at a per share exercise price of $4.16 (the "*Series H Warrants*") that we issued to certain Selling Stockholders in a closing of the Private Placement; and (iii) up to 23,016 shares of Common Stock that are issuable to certain Selling Stockholders upon the exercise of certain Placement Agent Warrants (the "*Placement Agent Warrants*," and together with the Series G Warrants and the Series H Warrants, the "*January 2026 Warrants*"). See "*Description of Securities to be Registered – January 2026 Warrants*" beginning on page 79 of this prospectus.

Our registration of the securities covered by this prospectus does not mean that either we or the Selling Stockholders will issue, offer or sell, as applicable, any of the securities being registered. The Selling Stockholders may offer, sell, or distribute all or a portion of the securities being registered publicly or through private transactions at prevailing market prices or at negotiated prices. We will not receive any of the proceeds from the sales of our Common Stock by the Selling Stockholders pursuant to this prospectus. We will, however, receive the net proceeds of any January 2026 Warrants if exercised for cash. We will bear all costs, expenses and fees in connection with the registration of these securities, including with regard to compliance with state securities or "blue sky" laws. The Selling Stockholders will bear all commissions and discounts, if any, attributable to their sale of shares of our Common Stock. See "*Plan of Distribution*" beginning on page 92 of this prospectus.

Our Common Stock is listed on The Nasdaq Capital Market ("*Nasdaq*") under the symbol "ENVB". On February 4, 2026, the last reported sale price of our Common Stock on Nasdaq was $2.84 per share.

You should read this prospectus and any prospectus supplement or amendment carefully before you invest in our securities.

**Our business and investing in our securities involve a high degree of risk. See "*Risk Factors*" beginning on page 12 of this prospectus.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

Prospectus dated February 18, 2026.

**TABLE OF CONTENTS**

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| | |
|:---|:---|
| [ABOUT THIS PROSPECTUS](#su_001) | 1 |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#su_002) | 2 |
| [MARKET AND INDUSTRY DATA AND FORECASTS](#su_004) | 6 |
| [PROSPECTUS SUMMARY](#su_005) | 7 |
| [The Offering](#su_006) | 9 |
| [Risk Factor Summary](#su_007) | 10 |
| [RISK FACTORS](#su_008) | 12 |
| [USE OF PROCEEDS](#HK_001) | 45 |
| [MARKET PRICE, TICKER SYMBOL AND DIVIDEND INFORMATION](#HK_002) | 46 |
| [BUSINESS](#HK_003) | 47 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#am_001) | 62 |
| [CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS](#HK_004) | 67 |
| [MANAGEMENT](#am_002) | 68 |
| [EXECUTIVE & DIRECTOR COMPENSATION](#am_003) | 73 |
| [DESCRIPTION OF SECURITIES TO BE REGISTERED](#an_001) | 78 |
| [SECURITIES ACT RESTRICTIONS ON RESALE OF ENVERIC BIOSCIENCES' SECURITIES](#an_002) | 87 |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#an_003) | 88 |
| [SELLING STOCKHOLDERS](#an_004) | 89 |
| [PLAN OF DISTRIBUTION](#an_005) | 92 |
| [LEGAL MATTERS](#an_006) | 93 |
| [EXPERTS](#an_007) | 93 |
| [WHERE YOU CAN FIND MORE INFORMATION](#an_008) | 93 |
| [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#HK_005) | F-1 |

---

i

**ABOUT THIS PROSPECTUS**

You should rely only on the information contained in this prospectus. We have not authorized anyone to provide you with information other than the information that we have provided or incorporated by reference in this prospectus and your reliance on any unauthorized information or representation is at your own risk. This prospectus may be used only in jurisdictions where offers and sales of these securities are permitted. You should assume that the information contained in this prospectus is accurate only as of the date of this prospectus, and that any information we have incorporated by reference is accurate only as of the date of the document incorporated by reference, regardless of the time of delivery of this prospectus or of any sale of our securities. Our business, financial condition, results of operations and prospects may have changed since those dates. This prospectus contains market data and industry statistics and forecasts that are based on independent industry publications and other publicly available information. Although we believe these sources are reliable, we do not guarantee the accuracy or completeness of this information and we have not independently verified this information. In addition, the market and industry data and forecasts that may be included in this prospectus may involve estimates, assumptions and other risks and uncertainties and are subject to change based on various factors, including those discussed under the heading "*Risk Factors*" contained in this prospectus. Accordingly, investors should not place undue reliance on this information.

The representations, warranties and covenants made by us in any agreement that is filed as an exhibit to any document that is incorporated by reference herein were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing the current state of our affairs.

To the extent there is a conflict between the information contained in this prospectus, on the one hand, and the information contained in any document incorporated by reference filed with the U.S. Securities and Exchange Commission (the "*SEC*") before the date of this prospectus, on the other hand, you should rely on the information in this prospectus. If any statement in a document incorporated by reference is inconsistent with a statement in another document incorporated by reference having a later date, the statement in the document having the later date modifies or supersedes the earlier statement.

Neither we nor the Selling Stockholders has authorized anyone to provide you with any information or to make any representations other than those contained in this prospectus, any post-effective amendment, or any applicable prospectus supplement prepared by or on behalf of us or to which we have referred you. We and the Selling Stockholders take no responsibility for and can provide no assurance as to the reliability of, any other information that others may give you. Neither we, nor the Selling Stockholders, will make an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing in this prospectus, any post-effective amendment and any applicable prospectus supplement to this prospectus is accurate only as of the date on its respective cover.

This prospectus contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the actual documents for complete information. All of the summaries are qualified in their entirety by the actual documents. Copies of some of the documents referred to herein have been filed as exhibits to the registration statement of which this prospectus is a part, and you may obtain copies of those documents as described below under "*Where You Can Find More Information*."

Unless the context otherwise requires, references in this prospectus to "Enveric" "we," "us," "our" and the "Company" refer to Enveric Biosciences, Inc., a Delaware corporation. Our registered trademarks currently used in the United States include Enveric, Enveric Biosciences, Next Generation Mental Health, MagicMed, MagicMed Industries, Psybrary, PsyAI, and our logo. Solely for convenience, trademarks and tradenames referred to in this prospectus may appear without the® or™ symbols, but such references are not intended to indicate in any way that we will not assert, to the fullest extent under applicable law, our rights, or that the applicable owner will not assert its rights, to these trademarks and tradenames. We do not intend our use or display of other companies' trade names or trademarks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the "*Exchange Act*"). Any statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but are not always, made through the use of words or phrases such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," and similar expressions, or the negative of these terms, or similar expressions. Accordingly, these statements involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in them. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this prospectus, and in particular those factors referenced in the section entitled "*Risk Factors*." Specific forward-looking statements in this prospectus supplement include statements regarding:

● our belief that the industry and market data used throughout this prospectus which are based on assumptions made by us based on such data and our knowledge of our industry are reasonable;

● our belief that EB-003 is the first known compound to selectively engage both 5-HT2A and 5-HT1B receptors with the potential to deliver fast-acting, durable antidepressant and anxiolytic effects with outpatient convenience;

● our belief that our lead program, the EVM301 Series, and its lead drug candidate, EB-003, are intended to offer a first-in-class, new approach to the treatment of difficult-to-address mental health disorders, mediated by the promotion of neuroplasticity and without also inducing hallucinations in the patient;

● the advancement of EB-003 through preclinical studies and aim of initiating the first-in-human studies to asses safety and tolerability including non-hallucinogenic properties, followed by clinical trial targeting the treatment of depression or other neuropsychiatric disorders;

● our intention to assemble a team of clinical experts and principal investigators with experience across multiple mental health and central nervous system indications to be responsible for the management, monitoring, and integrity of the clinical research;

● our intention to broaden our pipeline with additional non-hallucinogenic molecules and strengthen our ability to target addiction and neuropsychiatric disorders for patients with limited options by unveiling EVM401;

● our intention to pursue development of the EVM401 Series, but primarily focus on developing our lead asset EB-003 in the EVM301 Series

● our intention to use the net proceeds from this offering for product development, working capital, and general corporate purposes;

● our plan to submit filings including Investigational New Drug ("IND") applications and, eventually, new drug applications (NDAs) to seek approval with the U.S. Food and Drug Administration (FDA) and with responsible regulatory agencies in other jurisdictions, in connection with our product candidates;

● our belief that if we continue to pursue the development of MagicMed's proprietary library, the Psybrary™, it will help us to identify and develop the right drug candidates needed to address mental health challenges, including depression, anxiety, and addiction disorders;

● our intention to both continue to internally develop new drug candidates with associated intellectual property and to acquire, through in-licensing, additional intellectual property from pharmaceutical and biotechnology companies and research institutions;

● the intended target for development of such conjugates is alleviating pain, specifically the pain of osteoarthritis, rheumatoid arthritis, and cancer, with the goal of achieving improved and novel therapeutic outcomes for patients;

● our belief that the licensed-in conjugates have the potential for efficacy that will differentiate their performance against target diseases over simple combination therapies of drugs and cannabinoids;

● our intention to combine innovative scientific discoveries and bio-chemical synthesis, along with accelerated clinical development plans to create, develop and progress novel therapies using psychedelic-inspired medications and similar compounds;

● our plan to submit filings including CTA, IND applications and, eventually, NDAs to seek approval with the US FDA and with responsible regulatory agencies in other jurisdictions, in connection with our product candidates;

● our intention to leverage the broad expertise of our advisors by seeking their counsel on important topics relating to our product development and clinical development programs;

● our belief that our relationships with certain academic partners have the potential to accelerate our product development, market entry, data collection, analysis and advancement of clinical trials;

● our belief that while our scientific knowledge and technology and development experience provide us with competitive advantages, we face potential competition from many different sources, including major pharmaceutical, specialty pharmaceutical and biotechnology companies, academic institutions, governmental agencies, and public and private research institutions;

● our intention to focus on the development of novel and viable psychedelic-inspired drug candidates for mental illnesses and unmet medical needs, and partner with pharmaceutical and other drug development and biotechnology companies in developing and commercializing psychedelic-inspired medicines for diverse psychological and neuropsychiatric indications, which will be fundamentally composed of the psychedelic-inspired drug candidates contained in the Psybrary™;

● our belief that while our technology, knowledge and experience as well as the scientific resources at our disposal provide us with significant competitive advantages, we face potential competition from many different sources;

● our belief that our commercial opportunities could be reduced or eliminated if our competitors develop and commercialize medicines that are safer, more effective, have fewer or less severe side effects, are more convenient or are less expensive than any product candidates that we may develop;

● our belief that regarding our Psybrary™ and the intellectual property kept and developed therein, our success depends on our ability to protect our intellectual property and our ability to achieve and maintain key partnerships aimed at the development, licensing and marketing of psychedelic-inspired medicines without infringing on the proprietary rights of others;

● our belief that our competitors may use publicly available information to gain knowledge regarding the design and progress of our development programs;

● our belief that if we fail to comply with applicable foreign regulatory requirements, we may be subject to, among other things, fines, suspension of clinical trials, suspension or withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution; and

● other factors described in the "Risk Factors" section of this prospectus.

This prospectus contains forward-looking statements that are based on our management's belief and assumptions and on information currently available to our management. These statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors 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 these forward-looking statements. Numerous factors could cause our actual results to differ materially from those described in forward-looking statements, including, among other things:

● our dependence on the success of our prospective product candidates, which are in early stages of development and may not reach a particular stage in development, receive regulatory approval or be successfully commercialized;

● potential difficulties that may delay, suspend, or scale back our efforts to advance additional early research programs through preclinical development and investigational new drug ()"*IND*") application filings and into clinical development;

● the risk that the cost savings, synergies and growth from our combination with MagicMed Industries Inc. and the successful use of the rights and technologies acquired in the combination may not be fully realized or may take longer to realize than expected;

● the limited study on the effects of psychedelics and psychedelic-inspired compounds, and the chance that future clinical research studies may lead to conclusions that dispute or conflict with our understanding and belief regarding the medical benefits, viability, safety, efficacy, dosing, and social acceptance of psychedelics and psychedelic-inspired compounds;

● the expensive, time-consuming, and uncertain nature of clinical trials, which are susceptible to change, delays, termination, and differing interpretations;

● the ability to establish that potential products are efficacious or safe in preclinical or clinical trials;

● the fact that our current and future preclinical and clinical studies may be conducted outside the United States, and the United States Food and Drug Administration may not accept data from such studies to support any new drug applications we may submit after completing the applicable developmental and regulatory prerequisites;

● our ability to effectively and efficiently build, maintain and legally protect our molecular derivatives library so that it can be an essential building block from which those in the biotech industry can develop new patented products;

● our ability to carry out successful clinical programs;

● our ability to establish or maintain collaborations on the development of therapeutic candidates;

● our ability to obtain appropriate or necessary governmental approvals to market potential products;

● our ability to manufacture product candidates on a commercial scale or in collaborations with third parties;

● our significant and increasing liquidity needs and potential requirements for additional funding;

● our ability to obtain future funding for developing products and working capital and to obtain such funding on commercially reasonable terms;

● our ability to continue as a going concern;

● legislative changes related to and affecting the healthcare system, including, without limitation, changes and proposed changes to the Patient Protection and Affordable Care Act ()"*PPACA* ");

● the intense competition we face, often from companies with greater resources and experience than us;

● our ability to retain key executives and scientists;

● the ability to secure and enforce legal rights related to our products, including intellectual property rights and patent protection; and

● our ability to maintain compliance with Nasdaq Capital Market's continued listing requirements;

● political and economic instability, which may impede our development programs; and

● other factors and risks identified from time to time in our filings with the SEC, including in this prospectus.

We have included important factors in the cautionary statements included in this prospectus that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make. No forward-looking statement is a guarantee of future performance.

You should read this prospectus, any applicable prospectus supplement, any related free-writing prospectus, and any documents incorporated by reference herein and therein completely and with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect. The forward-looking statements contained or incorporated by reference in this prospectus or any prospectus supplement herein and therein represent our views as of the date of this prospectus are expressly qualified in their entirety by this cautionary statement. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this prospectus.

**MARKET AND INDUSTRY DATA AND FORECASTS**

We obtained the industry and market data used throughout this prospectus from our own internal estimates and research, as well as from independent market research, industry and general publications and surveys, governmental agencies, publicly available information and research, surveys and studies conducted by third parties. Internal estimates are derived from publicly available information released by industry analysts and third-party sources, our internal research, and our industry experience, and are based on assumptions made by us based on such data and our knowledge of our industry and market, which we believe to be reasonable. In some cases, we do not expressly refer to the sources from which this data is derived. In addition, while we believe the industry and market data included in this prospectus is reliable and based on reasonable assumptions, such data involve material risks and other uncertainties and are subject to change based on various factors, including those discussed in the section entitled "*Risk Factors*." These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties or by us.

**PROSPECTUS SUMMARY**

*The following summary highlights certain information described in greater detail elsewhere in this prospectus. This summary is not complete and does not contain all of the information you should consider or that may be important to you in making an investment decision. You should carefully read the entire prospectus, including the information under "*Risk Factors*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*" and the financial statements included elsewhere in this prospectus, before making an investment in our securities. You should carefully read this entire prospectus.*

**The Company**

We are a biotechnology company focused on developing next-generation, small-molecule neuroplastogenic therapeutics that address unmet needs in psychiatric and neurological disorders. By leveraging a differentiated drug discovery platform and a growing library of patent protected chemical structures, we are advancing a pipeline of novel compounds designed to promote neuroplasticity without hallucinogenic effects. Our lead candidate, EB-003, is the first known compound designed to selectively engage both 5-HT<sub>2A</sub> and 5-HT<sub>1B</sub> receptors with the potential to deliver fast-acting, durable antidepressant and anxiolytic effects with outpatient convenience.

Our lead program, the EVM301 Series, and its lead drug candidate, EB-003, are intended to offer a first-in-class, new approach to the treatment of difficult-to-address mental health disorders, mediated by the promotion of neuroplasticity and without also inducing hallucinations in the patient. EB-003 is a novel derivative of N,N-Dimethyltryptamine ("*DMT*"). It is currently advancing through preclinical studies with the aim of initiating first-in-human studies to assess safety and tolerability including non-hallucinogenic properties, followed by clinical trials targeting the treatment of depression or other neuropsychiatric disorders.

We intend to assemble a team of clinical experts and principal investigators with experience across multiple mental health and central nervous system indications to be responsible for the management, monitoring, and integrity of the clinical research. We plan to submit filings including IND applications and, eventually, new drug applications ("*NDAs*") to seek approval with the U.S. Food and Drug Administration (the "*FDA*") and with responsible regulatory agencies in other jurisdictions, in connection with our product candidates. The selection, timing, duration, and design of any prospective studies are subject to regulatory filings, approval and finalization of commercial plans. Our EB-003 program has completed short-term dose-range finding toxicology studies and is now ready to advance into IND-enabling, GLP compliant safety pharmacology, absorption, distribution, metabolism, excretition and toxicity ("*ADMET*") and longer-term toxicology studies.

We unveiled an EVM401 Series on February 25, 2025, which is intended to broaden our pipeline with additional non-hallucinogenic molecules and strengthen our ability to target addiction and neuropsychiatric disorders for patients with limited options. While we intend to pursue development of the EVM401 Series, our primary focus is to develop our lead asset EB-003 in the EVM301 Series.

**Recent Developments**

***At-the-Market Offering***

 ****

On April 9, 2025, we entered into an At the Market Offering Agreement ("*ATM Agreement*") with H.C. Wainwright & Co., LLC, acting as sales agent (the "*Sales Agent*"). On February 6, 2026, we filed a prospectus supplement so that we may issue and sell our Common Stock having an aggregate sales proceeds of up to $1,346,000 from time to time pursuant to the ATM Agreement. We will pay the Sales Agent a commission of 3.0% of the aggregate gross proceeds from each sale of our Common Stock sold pursuant to the ATM Agreement. Because there is no minimum offering amount required as a condition of this offering, the actual total public offering amount, commissions and proceeds to us, if any, are not determinable at this time. We have also agreed to reimburse the Sales Agent for certain specified expenses, including the fees and disbursements of its legal counsel, in an amount up to $100,000, which was previously paid, in addition to up to $3,500 per due diligence update session conducted in connection with each such date we file our Quarterly Reports on Form 10-Q and $5,000 per due diligence session conducted in connection with each such date we file a new registration statement or our Annual Report on Form 10-K for the Sales Agent's counsel's fees.

***Registered Direct Offering and Concurrent Private Placement***

 

On January 27, 2026, we entered into a securities purchase agreement with certain institutional investors (each, an "*Investor*"), pursuant to which we agreed to issue and sell to the Investors in a registered direct offering (the "*Registered Direct Offering*"), an aggregate of 328,802 shares (the "*RD Shares*") of our Common Stock at a price of $4.41 per share for gross proceeds of approximately $1.5 million before the deduction of placement agent fees and offering expenses. The closing of the Registered Direct Offering occurred on January 28, 2026. The RD Shares were offered by us pursuant to a shelf registration statement on Form S-3 (File No. 333-280721), which was initially filed with the SEC on July 8, 2024, as amended on April 10, 2025, and was declared effective by the SEC on April 17, 2025, including a prospectus supplement filed with the Commission on January 28, 2026.

In the concurrent Private Placement we also agreed to issue and sell to the Investors the Series G Warrants and Series H Warrants. The Series G Warrants are exercisable immediately and will expire five (5) following the effective date of the Resale Registration Statement (defined below), and the Series H Warrants are exercisable immediately and will expire eighteen (18) months following the effective date of the Resale Registration Statement. The Series G Warrants and Series H Warrants contain customary anti-dilution adjustments to the exercise price, including for share splits, share dividends, rights offering and pro rata distributions. We agreed to file a registration statement providing for the resale of the shares issuable upon the exercise of the Series G Warrants and Series H Warrants and warrants issued to its placement agent within thirty calendar days after the closing date (the "*Resale Registration Statement*").

H.C. Wainwright & Co., LLC (the "*Placement Agent*") acted as the exclusive placement agent under an Engagement Letter, dated as of December 8, 2024, as amended on January 14, 2025, June 5, 2025, November 11, 2025, and December 16, 2025 (the "*Engagement Letter*"). Pursuant to the Engagement Letter, we agreed to pay the Placement Agent a cash fee equal to 7.0% of the aggregate gross proceeds as well as a management fee equal to 1.0% of the aggregate gross proceeds. We also agreed to pay the Placement Agent up to $35,000 for accountable expenses including the Placement Agent's legal fees and expenses, and $10,000 for a clearing agent fee. We also issued the Placement Agent Warrants to purchase up to 23,016 shares of Common Stock to the Placement Agent (including its designees). The Placement Agent Warrants have an exercise price equal to $5.5125 per share and are exercisable for five (5) years from the commencement of sales in the Registered Direct Offering and concurrent Private Placement.

**Corporate Information**

We were incorporated in Delaware in 1994. Our principal corporate office is located at 245 First Street, Riverview II, 18<sup>th</sup> Floor, Cambridge, Massachusetts, telephone (619) 444-8400. Our internet address is https://www.enveric.com/, and the information included in, or linked to our website is not part of this prospectus. We have included our website address in this prospectus solely as a textual reference. The information contained on or accessible through our website is not a part of this prospectus and should not be relied upon in connection with making an investment decision.

**Implications of Being a Smaller Reporting Company**

We are a smaller reporting company as defined in Item 10(f)(1) of Regulation S-K, and we will remain a smaller reporting company until the fiscal year following:

● The determination that our voting and non-voting Common Stock held by non-affiliates is more than $250 million measured on the last business day of our second fiscal quarter; or

● Our annual revenue is more than $100 million during the most recently completed fiscal year and our voting and non-voting Common Stock held by non-affiliates is more than $700 million measured on the last business day of our second fiscal quarter.

Smaller reporting companies are able to provide simplified executive compensation disclosure and have certain other reduced disclosure obligations, including, among other things, being required to provide only two years of audited financial statements and not being required to provide selected financial data, supplemental financial information or risk factors.

Further, as a non-accelerated filer, we will not be required to provide an auditor attestation of management's assessment of internal control over financial reporting, which is generally required for SEC reporting companies under Sarbanes-Oxley Act Section 404(b), and, in contrast to other reporting companies, we'll have more time to file our annual and periodic reports.

**THE OFFERING**

*The following summary contains basic information about this offering. The summary is not intended to be complete. You should read the full text and more specific details contained elsewhere in this prospectus.*

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|:---|:---|
| Shares of Common Stock offered by the Selling Stockholders: | 680,620 shares of Common Stock, consisting of: (i) an aggregate of 328,802 shares of Common Stock issuable upon the exercise of the Series G Warrants, (ii) an aggregate of 328,802 shares of Common Stock issuable upon the exercise of the Series H Warrants, and (iii) 23,016 shares of Common Stock issuable upon the exercise of the Placement Agent Warrants. |
| Term of the offering: | The Selling Stockholders will determine when and how they will dispose of the shares of Common Stock registered for resale under this prospectus. |
| Common Stock outstanding prior to this offering: | 1,390,335 shares of Common Stock. |
| Common Stock outstanding after this offering: | 2,070,955 shares of Common Stock, assuming the exercise of all the January 2026 Warrants. |
| Use of Proceeds: | The Selling Stockholders will receive the proceeds from the sale of shares of Common Stock offered hereby. We will not receive any proceeds from the sale of shares of Common Stock by the Selling Stockholders. We will receive the net proceeds of any January 2026 Warrants if exercised for cash. The exercise price per share is $4.16 for each of the Series G Warrants and Series H Warrants and $5.5125 for the Placement Agent Warrants. Proceeds, if any, received from such exercise will be used for product development, working capital, and general corporate purposes. No assurances can be given that any of such January 2026 Warrants will be exercised. |
| Trading Symbols: | Our Common Stock is listed on Nasdaq under the symbol "*ENVB*". |
| Risk Factors: | Investing in our securities involves a high degree of risk. See "*Risk Factors*" on page 12 of this prospectus and the other information included in this prospectus for a discussion of factors you should consider before investing in our securities. |

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Unless we indicate otherwise, all information in this prospectus is based on 1,390,335 shares outstanding as of February 4, 2026. The number of shares outstanding as used throughout this prospectus, unless otherwise indicated, excludes, as of that date:

● 129 shares of our Common Stock issuable upon exercise of outstanding options granted under our equity incentive plans at a weighted average exercise price of $11,298.60 per share;

● 124,165 shares of our Common Stock issuable upon vesting of restricted stock units granted, inclusive of 1,810 shares previously vested and unissued, under our equity incentive plans; and

● 962,124 shares of our Common Stock issuable upon exercise of outstanding warrants at a weighted average exercise price of $37.81 per share and 389 shares of our Common Stock issuable upon exercise of outstanding investment options at a weighted average exercise price of $1,800 per share.

**RISK FACTOR SUMMARY**

Below is a summary of material factors that make an investment in our securities speculative or risky. Importantly, this summary does not address all of the risks and uncertainties that we face. Additional discussion of the risks and uncertainties summarized in this risk factor summary, as well as other risks and uncertainties that we face, can be found under the section titled "*Risk Factors*" beginning on page 12 of this prospectus. The below summary is qualified in its entirety by that more complete discussion of such risks and uncertainties. If we are unable to adequately address these and other risks we face, our business, results of operations, financial condition and prospects may be harmed. You should consider carefully the risks and uncertainties described under the section titled "*Risk Factors*" as part of your evaluation of an investment in our securities:

● our dependence
 on the success of our prospective product candidates, which are in early stages of development and may not reach a particular stage
 in development, receive regulatory approval or be successfully commercialized;

● potential difficulties
 that may delay, suspend, or scale back our efforts to advance additional early research programs through preclinical development
 and IND application filings and into clinical development;

● the risk that
 the cost savings, synergies and growth from our combination with MagicMed Industries Inc. and the successful use of the rights and
 technologies acquired in the combination may not be fully realized or may take longer to realize than expected;

● the limited
 study on the effects of psychedelics, and the chance that future clinical research studies may lead to conclusions that dispute or
 conflict with our understanding and belief regarding the medical benefits, viability, safety, efficacy, dosing, and social acceptance
 of psychedelics;

● the expensive,
 time-consuming, and uncertain nature of clinical trials, which are susceptible to change, delays, termination, and differing interpretations;

● the ability
 to establish that potential products are efficacious or safe in preclinical or clinical trials;

● the fact that
 our current and future preclinical and clinical studies may be conducted outside the United States, and the United States Food and
 Drug Administration may not accept data from such studies to support any new drug applications we may submit after completing the
 applicable developmental and regulatory prerequisites;

● our ability
 to effectively and efficiently build, maintain and legally protect our molecular derivatives library so that it can be an essential
 building block from which those in the biotech industry can develop new patented products;

● our ability
 to establish or maintain collaborations on the development of therapeutic candidates;

● our ability
 to obtain appropriate or necessary governmental approvals to market potential products;

● our ability
 to manufacture product candidates on a commercial scale or in collaborations with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;

● our
 significant and increasing liquidity needs and potential requirements for additional funding;

● our
 ability to obtain future funding for developing products and working capital and to obtain such funding on commercially reasonable
 terms;

● our
 ability to continue as a going concern;

● legislative
 changes related to and affecting the healthcare system, including, without limitation, changes and proposed changes to the PPACA;

● the
 intense competition we face, often from companies with greater resources and experience than us;

● our
 ability to retain key executives and scientists;

● the
 ability to secure and enforce legal rights related to our products, including intellectual property rights and patent protection;

● political,
 economic, and military instability in Israel which may impede our development programs; and

● other
 factors described in the "*Risk Factors*" section of this prospectus.

We have included important factors in the cautionary statements included in this prospectus and, particularly in the "*Risk Factors*" sections of these documents, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make. No forward-looking statement is a guarantee of future performance.

You should read this prospectus completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements in this prospectus represent our views as of the date of this prospectus. We anticipate that subsequent events and developments will cause our views to change. However, we undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise, except as required by law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this prospectus.

**RISK FACTORS**

*An investment in our securities involves a high degree of risk. You should carefully consider the following risk factors, together with all of the other information included in this registration statement/prospectus, before making an investment decision. The occurrence of one or more of the events or circumstances described in these risk factors, alone or in combination with other events or circumstances, may have an adverse effect on our business, cash flows, financial condition and results of operations. You should also carefully consider the following risk factors in addition to the other information included in this registration statement/prospectus, including matters addressed in the section entitled "*Cautionary Note Regarding Forward-Looking Statements*." We may face additional risks and uncertainties that are not presently known to us or that we currently deem immaterial, which may also impair our business or financial condition.*

**Risks Related to this Offering and Our Securities**

***You may experience future dilution as a result of future equity offerings and other issuances of our securities.***

We will not receive any of the proceeds from the sales of our Common Stock by the Selling Stockholders pursuant to this prospectus. We will, however, receive the net proceeds of any January 2026 Warrants if exercised for cash.

In order to raise additional capital, we may in the future offer additional shares of Common Stock or other securities convertible into or exchangeable for our Common Stock prices that may not be the same as the price per share paid by the investors in this offering. We may not be able to sell shares or other securities in any other offering at a price per share that is equal to or greater than the price per share paid by the investors in this offering, and investors purchasing shares or other securities in the future could have rights superior to existing stockholders. The price per share at which we sell additional shares of Common Stock or securities convertible into shares of Common Stock in future transactions may be higher or lower than the price per share paid to the Selling Stockholders. Our stockholders will incur dilution upon exercise of any outstanding stock options, warrants or other convertible securities or upon the issuance of shares of Common Stock under our stock incentive programs.

We expect to require additional capital in the future in order to develop our product candidates, which are in early stages of development. If we do not obtain any such additional financing, it may be difficult to effectively realize our long-term strategic goals and objectives.

Our current cash resources will not be sufficient to fund the development of our product candidates through all of the required clinical trials to receive regulatory approval and commercialization. If we cannot secure this additional funding when such funds are required, we may fail to develop our product candidates or be forced to forego certain strategic opportunities.

Any additional capital raised through the sale of equity or equity-backed securities may dilute our stockholders' ownership percentages and could also result in a decrease in the market value of our equity securities.

The terms of any securities issued by us in future capital transactions may be more favorable to new investors, and may include preferences, superior voting rights and the issuance of warrants or other derivative securities, which may have a further dilutive effect on the holders of any of our securities then outstanding.

In addition, we may incur substantial costs in pursuing future capital financing, including investment banking fees, legal fees, accounting fees, securities law compliance fees, printing and distribution expenses and other costs. We may also be required to recognize non-cash expenses in connection with certain securities we issue, such as convertible notes and warrants, which may adversely impact our financial condition.

***The trading price of our Common Stock could be highly volatile, which could result in substantial losses for purchasers of our Common Stock in this offering. Securities class action or other litigation involving the Company or members of our management team could also substantially harm our business, financial condition and results of operations.***

Our stock price is volatile. The stock market in general and the market for pharmaceutical and biotechnology companies in particular have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. As a result of this volatility, you may not be able to sell your Common Stock at or above the public offering price and you may lose some or all of your investment. The market price for our Common Stock may be influenced by many factors, including:

● the success
 of existing or new competitive products or technologies;

● regulatory actions with
 respect to our products or our competitors' products and product candidates;

● announcements by us or
 our competitors of significant acquisitions, strategic partnerships, joint ventures, collaborations or capital commitments;

● results of clinical trials
 of product candidates of our competitors;

● regulatory or legal developments
 in the United States and other countries;

● developments or disputes
 concerning patent applications, issued patents or other proprietary rights;

● the recruitment or departure
 of key personnel;

● the extent to which we
 in-license, acquire or invest in other indications or product candidates;

● actual or anticipated changes
 in estimates as to financial results or development timelines;

● announcement or expectation
 of additional financing efforts;

● sales of our Common Stock
 by us, our insiders or other stockholders;

● variations in our financial
 results or those of companies that are perceived to be similar to us;

● changes in estimates or
 recommendations by securities analysts, if any, that cover us;

● changes in the structure
 of healthcare payment systems;

● market conditions in the
 pharmaceutical and biotechnology sectors; and

● general economic, industry
 and market conditions.

In the past, securities class action litigation has often been brought against a company following a decline in the market price of its securities. This risk is especially relevant for pharmaceutical and biotechnology companies, which have experienced significant stock price volatility in recent years.

***Substantial future sales or other issuances of our Common Stock could depress the market for our Common Stock.***

Sales of a substantial number of shares of our Common Stock and any future sales of a substantial number of shares of Common Stock in the public market, including the issuance of any shares of Common Stock issuable upon exercise of the January 2026 Warrants, or the perception by the market that those sales could occur, could cause the market price of our Common Stock to decline or could make it more difficult for us to raise funds through the sale of equity and equity-related securities in the future at a time and price that our management deems acceptable, or at all. In addition, as opportunities present themselves, we may enter into financing or similar arrangements in the future, including the issuance of debt securities, preferred stock or Common Stock, which could also depress the market for our Common Stock. We cannot predict the effect, if any, that market sales of those shares of Common Stock or the availability of those shares for sale will have on the market price of our Common Stock.

***Our stock price may be subject to substantial volatility, and stockholders may lose all or a substantial part of their investment.***

Our Common Stock currently trades on Nasdaq. There is limited public float, and trading volume historically has been low and sporadic. As a result, the market price for our Common Stock may not necessarily be a reliable indicator of our fair market value. The price at which our Common Stock trades may fluctuate as a result of a number of factors, including the number of shares available for sale in the market, quarterly variations in our operating results, actual or anticipated announcements of new releases by us or competitors, the gain or loss of significant customers, changes in the estimates of our operating performance, market conditions in our industry and the economy as a whole.

**Risks Related to Our Business and Financial Condition**

***Our management and independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern as of December 31, 2024. We will be unable to continue to operate for the foreseeable future without additional capital.***

Our independent registered public accounting firm issued a report dated March 28, 2025 (except for the Second Reverse Stock Split effective as of October 23, 2025 described in Note 1, as to which the date is February 9, 2026), in connection with the audit of our consolidated financial statements as of December 31, 2024, which included an explanatory paragraph describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern including our recurring losses, cash used in operations, and need to raise additional funds to meet our obligations and sustain our operations. In addition, the notes to our financial statements for the year ended December 31, 2024, included in our Annual Report on Form 10-K, contain a disclosure describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to obtain substantial additional funding in connection with our continuing operations. Adequate additional financing may not be available to us in the necessary timeframe, in the amounts we require, on terms that acceptable to us, or at all. If we are unable to raise additional capital our business, prospectus, financial condition and results of operations will be materially and adversely affected and we may be unable to continue as a going concern. If we are not able to continue as a going concern, we may have to liquidate our assets and may receive less than the value at which those assets are carried on our consolidated financial statements and/or seek protection under federal bankruptcy law, and it is likely that holders of our Common Stock and holders of securities convertible into our Common Stock will lose all of their investment. If we seek additional financing to fund our business activities in the future and there remains substantial doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide additional funding on commercially reasonable terms or at all.

As such, there is uncertainty regarding our ability to maintain liquidity sufficient to operate our business effectively, which raises substantial doubt about our ability to continue as a going concern.

***We are dependent on the success of our prospective product candidates, which are in early stages of development, and there can be no assurances that any such prospects will reach a particular stage in development, receive regulatory approval or be successfully commercialized.***

Our success will depend on our ability to successfully develop and commercialize our prospective product candidates through our development programs. We intend to develop at least one product candidate, EB-003, by undergoing the long, costly clinical-trial process under an IND application(s) and, eventually, obtaining FDA approval under an NDA before proceeding to market. In order to proceed with development of our pharmaceutical product candidates under the NDA pathway, we must obtain the FDA's approval of our IND application and conduct preclinical and clinical trials in compliance with the applicable IND regulations, clinical-study protocols, and other applicable regulations and related requirements. We may never be able to develop products which are commercially viable or receive regulatory approval in the U.S. or elsewhere. There can be no assurance that the FDA or any other regulatory authority will approve of our current or future product candidates.

In the United States, the FDA regulates drugs under the Federal Food, Drug and Cosmetic Act ("*FDCA*") and implementing regulations. Drugs are also subject to other federal, state and local statutes and regulations. The process of obtaining regulatory approvals and the subsequent compliance with appropriate federal, state, local and foreign statutes and regulations require the expenditure of substantial time and financial resources. The process required by the FDA before a new drug or biological product may be marketed in the United States generally involves the following:

● Completion
 of preclinical laboratory tests, animal studies, and formulation studies according to Good Laboratory Practices ()"*GLP* ")
 and other applicable regulations;

● Submission
 to the FDA of an IND application, which must become effective before human clinical trials may begin in the United States;

● Performance
 of adequate and well-controlled human clinical trials according to the FDA's current good clinical practices ()"*GCPs* "),
 which sufficiently demonstrate the safety and efficacy of the proposed drug or biologic for its intended uses;

● Submission
 to the FDA of an NDA for a new drug product;

● Satisfactory
 completion of an FDA inspection of the manufacturing facility or facilities where the drug or biologic is to be produced to assess
 compliance with the FDA's current good manufacturing practice standards ()"*cCMP*") to assure that the
 facilities, methods and controls are adequate to preserve the drug's or biologic's identity, strength, quality and purity;

● Potential FDA
 audit of the nonclinical and clinical trial sites that generated the data in support of the NDA or biologics license application;
 and

● FDA review
 and, potentially, approval of the NDA.

The lengthy process of seeking required approvals and the continuing need for compliance with applicable statutes and regulations require the expenditure of substantial resources. There can be no certainty that approvals will be granted.

***We may encounter difficulties that may delay, suspend or scale back our efforts to advance additional early research programs through preclinical development and IND application filings and into clinical development.***

We intend to advance early research programs through preclinical development and to file IND applications for human clinical trials evaluating the prospective product candidates in our pipeline. The preparation and submission of IND applications requires rigorous and time-consuming preclinical testing, the results of which must be sufficiently documented to establish, among other things, the toxicity, safety, chemistry manufacturing and controls ("*CMC*") and clinical protocols of the product candidates. We may experience unforeseen difficulties that could delay or otherwise prevent us from successfully executing our current development strategy. In addition, our ability to complete and file certain IND applications may depend on the support of our partners and the timely performance of their obligations under relevant collaboration agreements. If our relevant partners are not able to perform such obligations, or if they otherwise delay the progress, we may not be able to prepare and file the intended IND applications on a timely basis or at all. Any delay, suspension or reduction of our efforts to pursue our preclinical and IND strategy could have a material adverse effect on our business and cause our share price to decline.

***Catastrophic events could have a material adverse effect on our business, including current plans for product development, as well as any currently ongoing preclinical studies and clinical trials and any future studies or other development or commercialization activities.***

Our operations and business could be disrupted by natural disasters; industrial accidents; public health issues and global pandemics such as COVID-19; cybersecurity incidents; interruptions of service from utilities, transportation restrictions or disruptions, telecommunications, or IT systems providers; manufacturing equipment failures; geopolitical conflict; tariff wars; terrorism; or other catastrophic events.

Catastrophic events could severely impact our business, including, but not limited to, our current or future preclinical studies, clinical trials, regulatory progress, or any other development or commercialization activities, including (among others):

● delays or difficulties
 in enrolling patients in clinical trials, specifically since many of the patients are considered immunocompromised;

● delays or difficulties
 in clinical site initiation, including difficulties in recruiting clinical site investigators and clinical site staff;

● diversion of healthcare
 resources away from the conduct of clinical trials, including the diversion of hospitals serving as our clinical trial sites and
 hospital staff supporting the conduct of our clinical trials;

● interruption of key clinical
 trial activities, such as clinical trial site monitoring, due to limitations on travel imposed or recommended by federal or state
 governments, employers and others;

● limitations in employee
 resources that would otherwise be focused on the conduct of our clinical trials, including because of sickness of employees or their
 families or the desire of employees to avoid contact with large groups of people;

● delays in receiving approval
 from local regulatory authorities to initiate our planned clinical trials;

● delays in clinical sites
 receiving the supplies and materials needed to conduct our clinical trials;

● interruption
 in global shipping that may affect the transport of clinical trial materials, such as investigational drug product used in our clinical
 trials;

● changes in
 local regulations as part of a response to a catastrophic event which may require us to change the ways in which our clinical trials
 are conducted, which may result in unexpected costs, or to discontinue the clinical trials altogether;

● delays in necessary interactions
 with local regulators, ethics committees and other important agencies and contractors due to limitations in employee resources or
 forced furlough of government employees;

● delay in the timing of
 interactions with the FDA due to absenteeism by federal employees or by the diversion of their efforts and attention to approval
 of other therapeutics or other activities related ; and

● refusal of the FDA to accept
 data from clinical trials in affected geographies outside the United States.

In addition, a catastrophic event could disrupt our operations due to absenteeism by infected or ill members of management or other employees, or absenteeism by members of management and other employees who elect not to come to work due to the illness affecting others in our office or laboratory facilities, or due to quarantines. A catastrophic event could also impact members of our Board of Directors (the "*Board*"), resulting in absenteeism from meetings of the directors or committees of directors, and making it more difficult to convene the quorums of the full Board or our committees needed to conduct meetings for the management of our affairs.

***We have significant and increasing liquidity needs and may require additional funding.***

Research and development, management and administrative expenses and cash used for operations will continue to be significant and may increase substantially in the future in connection with new and continued research and development initiatives and our pursuit of IND application(s) for some or all of our product candidates, as is required to initiate clinical trials in human subjects in the United States. We will need to raise additional capital to fund our operations, continue to conduct clinical trials to support potential regulatory approval of marketing applications, and to fund commercialization of our current and future product candidates.

The amount and timing of our future funding requirements will depend on many factors, including, but not limited to:

● the scope,
 number, initiation, progress, timing, costs, design, duration, delays (if any), and results of preclinical and clinical studies for
 our current or future product candidates;

● the outcome, timing and
 cost of regulatory reviews, approvals or other actions to meet regulatory requirements established by the FDA, and comparable foreign
 regulatory authorities;

● the timing and amount of
 revenue generated or received, including any revenue from grants or other sources;

● the rate of progress and
 cost of our clinical trials and other product development programs;

● costs of filing, prosecuting,
 defending and enforcing any patent claims and other intellectual property rights associated with our current and future product candidates;

● the effect of competing
 technological and market developments;

● personnel, facilities and
 equipment requirements; and

● the terms and timing of
 any additional collaborative, licensing, co-promotion or other arrangements that we may establish.

While we expect to fund our future capital requirements from financing arrangements, we cannot assure you that any such financing arrangements will be available to it on favorable terms, or at all. On January 27, 2026, we engaged in a registered direct offering and this concurrent Private Placement, which locked up our ability to issue securities or file registration statements for a period of 15 days following January 28, 2026, and engage in variable-rate transactions for a period of one year following January 28, 2026, each subject to limited exceptions. Even if we can raise funds from financing arrangements, the amounts raised may not be sufficient to meet our future capital requirements. Additionally, the Company does not have sufficient unreserved, authorized shares to secure an equity investment of a sufficient amount, based on the Company's currently traded price per share, and the Company will require shareholder approval to increase the amount of authorized shares. If we are not able to raise capital, we could be required to postpone, scale back or eliminate some, or all, of our development objectives or commercialization efforts.

***We depend on our current key personnel.***

We have consolidated our employee base to save capital and focus on development of our lead candidate EB-003. As of the date of the registration statement for which this prospectus forms a part, we employ five full-time employees and one part-time employee. We are highly dependent on our current management and scientific personnel, including Joseph Tucker, Peter Facchini, and Kevin Coveney. The inability to hire or retain experienced management personnel could adversely affect our ability to execute our business plan and harm our operating results. Due to the specialized scientific and managerial nature of our business, we rely heavily on our ability to attract and retain qualified scientific, technical and managerial personnel. The competition for qualified personnel in the pharmaceutical field is intense and we may be unable to continue to attract and retain qualified personnel necessary for the development of our business or to recruit suitable replacement personnel.

***There has been limited study on the effects of psychedelic-inspired drug candidates, and future clinical research studies may lead to conclusions that dispute or conflict with our understanding and belief regarding the medical benefits, viability, safety, efficacy, dosing, and social acceptance of psychedelics.***

Research relating to the medical benefits, viability, safety, efficacy, and dosing of psychedelic-inspired drug candidates remains in relatively early stages. There have been few clinical trials on the benefits of psychedelic-inspired drug candidates conducted by us or by others. Future research and clinical trials may draw opposing conclusions to statements contained in the articles, reports and studies we have relied on, or could reach different or negative conclusions regarding the medical benefits, viability, safety, efficacy, dosing or other facts and perceptions related to psychedelic-inspired drug candidates, which could adversely affect social acceptance of such molecules and the demand for our product candidates.

***Our limited resources have lead us to focus on a particular product candidate. As a result, we may fail to capitalize on product candidates that may be more profitable or for which there is a greater likelihood of medical and commercial success.***

As a result of our limited financial, managerial and scientific leadership resources we have focused on developing product candidates that we have identified as most likely to succeed. As such, we have elected to forego or delay for the time being the development of other candidates that may prove to have greater potential. Our resource allocation decisions may cause us to fail to capitalize on viable medical solutions, therapeutic enhancements and commercial potentials because spending on our lead candidate for one or more indications specified therein may not yield any commercially viable products. Inaccurate or limited evaluation of commercial and therapeutic potential may result in relinquishment of other valuable product candidate opportunities.

***We expect to face intense competition, often from companies with greater resources and experience than us.***

The pharmaceutical industry is highly competitive, with an emphasis on proprietary products and subject to rapid change. The industry continues to expand and evolve as an increasing number of competitors and potential competitors enter the market. Many of these competitors and potential competitors have substantially greater financial, technological, managerial and research and development resources and experience than us. Some of these competitors and potential competitors have more experience than us in the development of pharmaceutical products, including clinical trials and regulatory matters. In addition, our future product candidates, if successfully developed, will compete with product candidates from large and well-established companies that have greater commercial expertise than us or our collaboration partners have. Other companies with greater resources than us may announce similar plans in the future. In addition, small or early stage companies may prove to be competitors, particularly through collaborative arrangements with large and established companies. If we are unable to compete successfully, our commercial opportunities will be reduced and our business, results of operations and financial conditions may be materially harmed. In addition, we compete with these companies in recruiting and retaining scientific personnel as well as establishing clinical trial sites and patient recruitment for clinical trials.

***Our current and future preclinical and clinical studies may be conducted outside the United States, and the FDA may not accept data from such studies to support any NDAs we may submit after completing the applicable developmental and regulatory prerequisites.***

We are conducting, or may conduct, preclinical and/or clinical studies outside the United States. To the extent we do not conduct these clinical trials in under an IND application, the FDA may not accept data from such trials. Although the FDA may accept data from clinical trials conducted outside the United States that are not conducted under an IND application, the FDA's acceptance of the data is subject to certain conditions. For example, the clinical trial must be well designed and conducted and performed by qualified investigators in accordance with ethical principles and all applicable FDA regulations. The trial population must also adequately represent the intended U.S. population, and the resulting clinical trial data must be applicable to the U.S. population and U.S. medical practice in ways that the FDA deems clinically meaningful. In general, the patient population for any clinical trials conducted outside of the United States must be representative of the population for whom we intend to market the product candidate in the United States, if approved. In addition, while these clinical trials are subject to the applicable local laws, FDA acceptance of the clinical trial data will be dependent upon our ability to verify the data and our determination that the clinical trials also complied with all applicable U.S. laws and regulations. The process of obtaining regulatory approvals and the subsequent compliance with appropriate federal, state and foreign statutes and regulations requires the expenditure of substantial time and financial resources.

We cannot guarantee that the FDA will accept data from clinical trials conducted outside of the United States. If the FDA does not accept the data from such clinical trials, we would likely result in the need for additional trials and the completion of additional regulatory steps, which would be costly and time-consuming and could delay or permanently halt our development of our product candidates.

***Because the results of preclinical studies and earlier clinical trials are not necessarily predictive of future results, we may not have favorable results in our planned and future clinical trials.***

Successful development of therapeutic products is highly uncertain and is dependent on numerous factors, many of which are beyond our control. Drug development involves long lead times and involves many variables of uncertainty. Product candidates that appear promising in the early phases of development may fail to reach the market for several reasons including, without limitation:

● preclinical
 study results that may show the product to be less effective than desired (e.g., the study failed to meet our primary objectives)
 or to have harmful or problematic side effects;

● failure
 to receive the necessary regulatory approvals or a delay in receiving such approvals. Among other things, such delays may be caused
 by slow enrollment in clinical studies, length of time to achieve study endpoints, additional time requirements for data analysis
 or an IND application and later, NDA preparation, discussions with the FDA, an FDA request for additional preclinical
 or clinical data or unexpected safety or CMC issues;

● manufacturing costs, pricing,
 or reimbursement issues or other factors that make the product not economical; and

● the proprietary rights
 of others and their competing products and technologies that may prevent the product from being commercialized.

Any positive results from our preclinical testing of our prospective product candidates may not necessarily be predictive of the results from planned or future clinical trials for such product candidates. Many companies in the pharmaceutical and biotechnology industries have suffered significant setbacks in clinical trials after achieving positive results in preclinical and early clinical development, and we cannot be certain that we will not face similar setbacks. These setbacks have been caused by, among other things, preclinical findings while clinical trials were underway or safety or efficacy observations in clinical trials, including adverse events. Moreover, our interpretation of clinical data or our conclusions based on the preclinical *in vitro* and *in vivo* models may prove inaccurate, as preclinical and clinical data can be susceptible to varying interpretations and analyses, and many companies that believed their product candidates performed satisfactorily in preclinical studies and clinical trials nonetheless failed to obtain FDA or other regulatory approvals. Similarly, undesirable side effects caused by our product candidates could cause us or regulatory authorities to limit dosage in development or interrupt, delay or halt clinical trials and could result in a more restrictive label or the delay or denial of regulatory approval by the FDA or other comparable foreign authorities. Restrictive label applications may include but are not limited to a Boxed Warning, Risk Evaluation and Mitigation Strategies, or REMS, or other limitations of use. Drug-related side effects during one clinical trial furthermore could affect patient recruitment or the ability of enrolled patients to complete the trial, result in potential product liability claims or our ability to ensure enrollment for future trials. Any of these occurrences may harm our business, financial condition and prospects significantly.

***Regulatory approval is limited by the FDA to those specific indications and conditions for which clinical safety and efficacy have been demonstrated, and we may be subject to fines, penalties or injunctions if we are determined to be promoting the use of our products for unapproved or "off-label" uses.***

When the FDA or comparable foreign regulatory authorities issue regulatory approval for a product candidate, the regulatory approval is limited to those specific indications for which a product is approved. If we are not able to obtain FDA approval for any desired future indications for our products and product candidates, our ability to effectively market and sell our products may be reduced and our business may be adversely affected. While physicians may choose to prescribe drugs for uses that are not described in the product's labeling and for uses that differ from those tested in clinical studies and approved by the regulatory authorities, we are prohibited from marketing and promoting the products for indications that are not specifically approved by the FDA.

These "off-label" uses are common across medical specialties and may constitute an appropriate treatment for some patients in varied circumstances. Regulatory authorities in the United States generally do not restrict or regulate the behavior of physicians in their choice of treatment within the practice of medicine. Regulatory authorities do, however, restrict communications by pharmaceutical companies on off-label use. If the FDA determines that our promotional activities constitute promotion of an off-label use, it could request that we modify our promotional materials or subject us to regulatory or enforcement actions by other agencies, including issuance of warning letters, suspension or withdraw an approved product from the market, additional reporting requirements and/or oversight if we become subject to a corporate integrity agreement or similar agreement, any of which could significantly harm our business.

***Business interruptions could delay us in the process of developing our product candidates.***

Loss of our stored materials or facilities through fire, theft, or other causes could have an adverse effect on our ability to continue product development activities and to conduct our business. Even if we obtain insurance coverage to compensate us for such business interruptions, such coverage may prove insufficient to fully compensate us for the damage to our business resulting from any significant property or casualty loss.

***Our employees may engage in misconduct or other improper activities, including noncompliance with regulatory standards and legal requirements.***

We are exposed to the risk of employee fraud or other misconduct. Misconduct by employees could include intentional failures to comply with FDA, SEC or Office of Inspector General of the Department of Health and Human Services, or regulations of any other applicable regulatory authority, failure to provide accurate information to the FDA or the SEC, comply with applicable manufacturing standards, other federal, state or foreign laws and regulations, report information or data accurately or disclose unauthorized activities. Employee misconduct could also involve the improper use of confidential or protected information, including information obtained in the course of clinical trials, or illegal pre-approval promotion of drug candidates, which could result in government investigations, enforcement actions and serious harm to our reputation. We have adopted a Corporate Code of Conduct and Ethics and Whistleblower Policy, but employee misconduct is not always possible to identify and deter.

The precautions we take to detect and prevent these prohibited activities may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations. If any such actions are instituted against us, and we are not successful in defending the Company or asserting our rights, those actions could have a significant impact on our business, including the imposition of significant fines or other sanctions.

***Our proprietary information, or that of our customers, suppliers and business partners, may be lost or we may suffer security breaches.***

In the ordinary course of our business, we expect to collect and store sensitive data, including valuable and commercially sensitive intellectual property, clinical trial data, our proprietary business information and that of our future customers, suppliers and business partners, and personally identifiable information of our customers, clinical trial subjects and employees, patients, in our data centers and on our networks. The secure processing, maintenance and transmission of this information is critical to our operations. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions.

Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, regulatory penalties, disrupt our operations, damage our reputation, and cause a loss of confidence in our products and our ability to conduct clinical trials, which could adversely affect our business and reputation and lead to delays in gaining regulatory approvals for our future product candidates. Although we may obtain business interruption insurance coverage in the future, our insurance might not cover all losses from any future breaches of our systems.

***Failure of our information technology systems, including cybersecurity attacks or other data security incidents, could significantly disrupt the operation of our business.***

Our business depends on the use of information technologies. Our ability to execute our business plan and to comply with regulators' requirements with respect to data control and data integrity, depends, in part, on the uninterrupted performance of our information technology systems, or IT systems and the IT systems supplied by third-party service providers. Our IT systems are vulnerable to damage from a variety of sources, including telecommunications or network failures, malicious human acts, natural disasters and more sophisticated and targeted cyber-related attacks that pose a risk to the security of our information systems and networks and the confidentiality, availability and integrity of data and information. A successful cybersecurity attack or other data security incident could result in the misappropriation and/or loss of confidential or personal information, create system interruptions, or deploy malicious software that attacks our systems. It is also possible that a cybersecurity attack might not be noticed for some period of time. In addition, sustained or repeated system failures or problems arising during the upgrade of any of our IT systems that interrupt our ability to generate and maintain data could adversely affect our ability to operate our business. The occurrence of a cybersecurity attack or incident could result in business interruptions from the disruption of our IT systems, or negative publicity resulting in reputational damage with our shareholders and other stakeholders and/or increased costs to prevent, respond to or mitigate cybersecurity events. In addition, the unauthorized dissemination of sensitive personal information or proprietary or confidential information could expose us or other third-parties to regulatory fines or penalties, litigation and potential liability, or otherwise harm our business.

***Security breaches, loss of data and other disruptions could compromise sensitive information related to our business, prevent it from accessing critical information or expose it to liability, which could adversely affect our business and its reputation.***

In the ordinary course of our business, we expect to collect and store sensitive data, including legally protected patient health information, credit card information, personally identifiable information about our employees, intellectual property, and proprietary business information. We expect to manage and maintain this data utilizing on-site systems. This data includes a wide variety of business-critical information including research and development information, commercial information and business and financial information.

The secure processing, storage, maintenance and transmission of this critical information is vital to our operations and business strategy, and we devote significant resources to protecting such information. Although we take measures to protect sensitive information from unauthorized access or disclosure, our information technology and infrastructure may be vulnerable to attacks by hackers, or viruses, breaches or interruptions due to employee error, malfeasance or other disruptions, or lapses in compliance with privacy and security mandates. Any such virus, breach or interruption could compromise our networks and the information stored there could be accessed by unauthorized parties, publicly disclosed, lost or stolen. In the future, any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, such as the Health Insurance Portability and Accountability Act and European Union General Data Protection Regulation, government enforcement actions and regulatory penalties. Unauthorized access, loss or dissemination could also disrupt our operations, including our ability to process samples, provide test results, share and monitor safety data, bill payors or patients, provide customer support services, conduct research and development activities, process and prepare company financial information, manage various general and administrative aspects of our business and may damage our reputation, any of which could adversely affect our business, financial condition and results of operations.

***Our operating results may vary significantly in future periods.***

We are in the early stages of product development and expect to focus substantial efforts for, at least, the next several years on preclinical and clinical trials and other research and development activities. We have not obtained regulatory approval for any product candidates. Our revenues, expenses and operating results are likely to fluctuate significantly in the future. We expect to incur substantial additional operating expenses over the next several years as our research, development, and preclinical and clinical study activities increase. Our financial results are unpredictable and may fluctuate, for among other reasons, due to:

● the scope,
 number, progress, duration, endpoints, cost, results, and timing of our preclinical testing and clinical studies of current or potential
 future product candidates;

● our ability to obtain additional
 funding to develop product candidates; and

● delays in the commencement, enrollment and timing of
 clinical studies.

A high portion of our costs are predetermined on an annual basis, due in part to our significant research and development costs. Thus, small declines in revenue could disproportionately affect financial results in a quarter.

***Significant ongoing costs and obligations.***

As a neuro-pharmaceutical drug discovery and development platform company, the Company expects to spend substantial funds on the research, development and testing of psychedelic-inspired drug candidates. In addition, the Company expects to incur significant ongoing costs and obligations related to its investment in infrastructure and growth and for regulatory compliance, which could have a material adverse impact on the Company's results of operations, financial condition and cash flows. The Company will also require significant additional funds if it expands the scope of current plans for research and development or if it were to acquire any other assets and advance their development. It is possible that future financing will not be available or, if available, may not be on favorable terms. The availability of financing will be affected by the achievement of the Company's corporate goals, the results of preclinical and clinical research, the need and ability to obtain regulatory approvals and the state of the capital markets generally. If adequate funding is not available, the Company may be required to delay, reduce or eliminate one or more of its research and development programs, or obtain funds through corporate partners or others who may require the Company to relinquish significant rights to its psychedelic-inspired drug candidates or obtain funds on less favorable terms than the Company would otherwise accept. To the extent that external sources of capital become limited or unavailable or available on onerous terms, the Company's intangible assets and its ability to continue its business plans may become impaired, and the Company's assets, liabilities, business, financial condition and results of operations may be materially or adversely affected.

In addition, future changes in regulations, changes in legal status of psychedelic and/or psychedelic-inspired products, more vigorous enforcement thereof or other unanticipated events could require extensive changes to the Company's operations, increased compliance costs or give rise to material liabilities, which could have a material adverse effect on the business, results of operations and financial condition of the Company. The Company's efforts to grow its business may be costlier than expected.

***We may rely on third parties to plan and conduct preclinical studies and clinical trials.***

We may rely on third parties to conduct preclinical development activities and intend to partner with third parties who may conduct clinical development activities with our psychedelic-inspired drug candidates. Preclinical activities include "*in vivo*" studies providing access to specific animal-based disease models, pharmacology and toxicology studies, and assay development. Clinical development activities include trial design, regulatory submissions, patient recruitment, clinical trial monitoring, clinical data management and analysis, safety monitoring and project management. If there is any dispute or disruption in its relationship with third parties, or if such third parties are unable to provide quality services in a timely manner and at a feasible cost, or if such third parties fail to meet certain development milestones, our active development programs may face delays.

Further, if any of these third parties fails to perform as we expect or if their work fails to meet regulatory requirements, the testing and eventual development of viable drug candidates could be delayed, cancelled or rendered ineffective.

***Our reliance on third-party contract manufacturers.***

For completion of the "*in vitro*" portion of the preclinical testing we intend to conduct, when only lab-grade and lab-scale drug candidate molecules are required, we intend to synthesize the required psychedelic-related molecules in our laboratories in Calgary or at other third-party contract research organizations ("*CROs*") that provide synthetic chemistry services. We have limited control over these third-party CROs. When larger quantities and higher quality psychedelic-related molecules are required (e.g., for *in vivo* animal toxicology studies), we intend to contract with appropriate third-party contract manufacturing organizations ("*CMOs*"), over which we may have limited control to, among other things, supply the active pharmaceutical ingredient ("*API*") of our drug candidates. We also intend to rely on CMOs to supply APIs and drug products in compliance with cCMP regulations in a phase-appropriate.

All applicable jurisdictions, including Health Canada and the FDA, ensure the quality of drug candidates by carefully monitoring drug manufacturers' compliance with cCMP regulations. The cCMP regulations for drug candidates contain minimum requirements for the methods, facilities and controls used in manufacturing, processing and packing of APIs and drug products. There can be no assurances that CMOs will be able to meet our timetable and requirements or carry out their contractual obligations in accordance with the applicable regulations. In addition, the APIs and/or drug products that they supply to us may not meet our specifications and quality policies and procedures or they may not be able to supply the APIs and/or drug products in commercial quantities. If we are unable to arrange for alternative third-party supply sources on commercially reasonable terms or in a timely manner, it may delay the development of our drug candidates and could have a material adverse effect on our business operations and financial condition.

Further, the failure of CMOs to operate in compliance with cCMP regulations could result in, among other things, certain product liability claims in the event such failure to comply results in defective products (containing our drug candidates) that caused injury or harm. In general, our dependence upon third parties for the supply of our APIs and drug products may adversely affect profit margins and our ability to develop and deliver viable drug candidates on a timely and competitive basis.

***Termination or non-renewal of key licenses and agreements.***

Our business is highly dependent on key licenses and agreements which expire in a short time period. Specifically, in conducting research and preclinical studies on psychedelic or psychedelic-inspired compounds in compliance with current legislation, we substantially rely on the Facchini Drug License, which expired on December 31, 2025. Health Canada renews drug licenses annually and Dr. Facchini has held the Facchini Drug License since October 5, 1995 and it has been renewed each year without issue. Dr. Facchini submitted an application for renewal of his Drug License, but as of the date of this registration statement, he has yet to receive confirmation of renewal. Until Enveric obtains its own Dealer's License or Section 56 Exemption necessary for its business, the termination, non-renewal or hindrance of use of the Facchini Drug License would have a material adverse effect on Enveric's ability to develop psychedelic-inspired drug candidates, conduct research or operate its business as it currently does. This could have a material adverse impact on Enveric's financial condition.

***Negative results from clinical trials or studies of others and adverse safety events involving our drug candidates.***

From time to time, studies or clinical trials on various aspects of biopharmaceutical or natural health products ("*NHPs*") are conducted by academic researchers, competitors or others. The results of these studies or trials, when published, may have a significant effect on the market for the biopharmaceutical or NHP that is the subject of the study. The publication of negative results of studies or clinical trials or adverse safety events related to the psychedelic compounds similar to those used by us in the development of our psychedelic-inspired drug candidates, or the therapeutic areas in which our drug candidates compete, could adversely affect our share price and our ability to finance future development of our drug candidates, and our business and financial results could be materially and adversely affected.

***Clinical trials of our drug candidates may fail to demonstrate safety and efficacy to the satisfaction of regulatory authorities or not otherwise produce positive results.***

Before we or third parties (who may license or acquire our drug candidates) are able to obtain marketing approval from regulatory authorities for the sale of products containing our drug candidates, the completion of preclinical studies in animals and extensive clinical trials in humans to demonstrate the safety and efficacy of the drug candidates will be required. Clinical testing is expensive and difficult to design and implement, can take many years to complete and has uncertain outcomes. The outcome of preclinical studies and early clinical trials may not predict the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final results. A number of companies in the pharmaceutical, NHP and biotechnology industries have suffered significant setbacks in advanced clinical trials due to lack of efficacy or unacceptable safety profiles, notwithstanding promising results in earlier trials. We do not know whether the clinical trials that we or third parties may conduct will demonstrate adequate efficacy and safety to result in regulatory approval to market any products containing our drug candidates in any jurisdiction. A product/compound candidate may fail for safety or efficacy reasons at any stage of the testing process. A major risk we face is the possibility that none of our drug candidates will successfully gain market approval the FDA or other regulatory authorities, resulting in our inability to derive any royalty-based revenue from them.

***Use of raw materials requires regulatory approval.***

Some raw materials used by us will require regulatory approval by Health Canada and the FDA because the plant or fungi may contain a controlled substance. While we believe that we can acquire, or indirectly make use of, the requisite licenses to conduct our intended research and development activities, there is a risk that Health Canada and the FDA can either reject or require further action to approve the requisite licenses which would cause delays or result in losses for us and could result in the abandonment of a specific research programs. Raw materials and supplies are generally available in quantities to meet the needs of our business. An inability to obtain raw materials or product supply could have a material adverse impact on our business, financial condition, and results of operations.

***Possible increase in costs beyond what is currently expected as a result of regulatory review.***

Health Canada, the FDA or other regulatory authorities in foreign jurisdictions have not yet determined whether our psychedelic-inspired drug candidates will be scheduled as controlled substances. Based on preclinical and/or clinical abuse liability studies, Health Canada, the FDA or other regulatory authorities may determine that our products are controlled substances and therefore, require additional regulatory controls. Such additional regulatory requirements may increase our costs and cause a delay in our operations. Further, if Health Canada, the FDA or other regulatory authorities require that we perform additional preclinical or clinical studies, or if we determine that additional preclinical or clinical studies are required for our drug candidates, our expenses would further increase beyond what is currently expected and the anticipated timing of any potential approval of our drug candidates or licensing out agreements would likely be delayed.

***We have never been profitable, have no products approved for commercial sale, and to date have not generated any revenue.***

We have never been profitable and we do not expect to be profitable in the foreseeable future. Neither us, nor any third-party partner, have submitted any products containing our products for approval by regulatory authorities in the United States or elsewhere. As of September 30, 2025, we had an accumulated deficit of $112.7 million and accumulated other comprehensive losses of $0.6 million. To date, we have devoted most of our financial resources to research and development, including drug discovery research, preclinical development activities, patent application filings and prosecution, and media relation efforts, as well as corporate overhead.

We generated no reportable revenues since inception through September 30, 2025, we expect to continue to incur losses for the foreseeable future, and expect these losses to increase as we continue our product development activities. If our drug candidates and other products developed do not achieve market acceptance, we may never become profitable. As a result of the foregoing, we expect to continue to experience net losses and negative cash flows for the foreseeable future. These net losses and negative cash flows have had, and will continue to have, an adverse effect on our stockholders' equity and working capital.

Because of the numerous risks and uncertainties associated with drug development, we are unable to accurately predict the timing or amount of increased expenses or when, or if, we will be able to achieve profitability. In addition, our expenses could increase if we are required by the FDA or other regulatory authorities in foreign jurisdictions to perform preclinical studies or clinical trials in addition to those currently expected, or if there are any delays in completing our preclinical studies or the development of any of our drug candidates. The amount of future net losses will depend, in part, on the rate of future growth of our expenses and our ability to generate revenues.

***We have no licensing, marketing or distribution experience and will have to invest significant resources to develop those capabilities or enter into acceptable third-party sales and marketing transactions.***

We have no commercial licensing, marketing or distribution experience. To develop commercial licensing, distribution and marketing capabilities, we will have to invest significant amounts of financial and management resources, some of which will need to be committed prior to any confirmation that our drug candidates will be approved by the FDA or other regulatory authorities in foreign jurisdictions. Where we decide to perform commercial licensing, marketing and distribution functions itself or through third parties, we could face a number of additional risks, including that we or our third-party collaborators may not be able to build and maintain an effective marketing or sales force. If we use third parties to market and distribute any products arising from our drug candidates, we may have limited or no control over our commercial licensing, marketing and distribution activities on which our future revenues may depend.

***We may incur substantial costs as a result of litigation or other proceedings relating to patent and other intellectual property rights.***

We may from time to time seek to enforce our intellectual property rights against infringers when we determine that a successful outcome is probable and may lead to an increase in the value of the intellectual property. If we choose to enforce our patent rights against a party, then that individual or company has the right to ask the court to rule that such patents are invalid or should not be enforced. Additionally, the validity of our patents and the patents we have licensed may be challenged if a petition for post grant proceedings such as inter-partes review and post grant review is filed within the statutorily applicable time with the Canadian Intellectual Property Office or the United States Patent and Trademark Office. These lawsuits and proceedings are expensive and would consume time and resources and divert the attention of managerial and scientific personnel even if we were successful in stopping the infringement of such patents.

In addition, there is a risk that the court will decide that such patents are not valid and that we do not have the right to stop the other party from using the inventions. There is also the risk that, even if the validity of such patents is upheld, the court will refuse to stop the other party on the ground that such other party's activities do not infringe our intellectual property rights.

***Changes in patent law and its interpretation could diminish the value of patents in general, thereby impairing our ability to protect our drug candidates.***

As is the case with other NHP, biotechnology and pharmaceutical companies, our success is heavily dependent on intellectual property rights, particularly patents. Obtaining and enforcing patents in the biopharmaceutical industry involves technological and legal complexity, and obtaining and enforcing biopharmaceutical patents is costly, time consuming and inherently uncertain. The Supreme Court of Canada and the U.S. Supreme Court have ruled on several patent cases in recent years, either narrowing the scope of patent protection available in certain circumstances or weakening the rights of patent owners in certain situations. In addition to increasing uncertainty with regard to our ability to obtain patents in the future, this combination of events has created uncertainty with respect to the value of patents, once obtained. Depending on decisions by the Canadian House of Representative, the Federal Court of Canada, the Canadian Intellectual Property Office, U.S. Congress, the federal courts, and the U.S. Patent and Trademark Office and international treaties entered into by these nations, the laws and regulations governing patents could change in unpredictable ways that would weaken our ability to obtain patents or to enforce patents we may obtain in the future.

***Failure to manage growth***

As we advance our drug candidates through preclinical studies and early clinical development and seek business arrangements and partnerships with third parties to advance our drug candidates through later stage clinical development, we will need to increase our research and development personnel, scientific, management, and administrative headcount to manage these programs and partnerships. In addition, to meet obligations as a public company, we may need to increase our general and administrative capabilities and improve our operational and financial controls and reporting procedures. Our management, personnel and systems currently in place may not be adequate to support this future growth. In managing our growing operations, we are also subject to the risks of over-hiring and/or overcompensating our employees and over-expanding our operating infrastructure. As a result, we may be unable to manage our expenses effectively in the future, which may negatively impact our gross profit or operating expenses.

***Insurance and uninsured risks***

Our business is subject to a number of risks and hazards generally, including adverse preclinical study results, accidents, labor disputes and changes in the regulatory environment. Such occurrences could result in damage to assets, personal injury or death, environmental damage, delays in operations, monetary losses and possible legal liability.

Our insurance may not cover all the potential risks associated with our operations. We may also be unable to maintain insurance to cover these risks at economically feasible premiums. Insurance coverage may not be available or may not be adequate to cover any resulting liability. Moreover, insurance against risks such as environmental pollution or other hazards encountered in our operations is not generally available on acceptable terms. We might also become subject to liability for pollution or other hazards which may not be insured against or which we may elect not to insure against because of premium costs or other reasons. Losses from these events or any significant uninsured liability may require us to pay substantial amounts, which would adversely affect our financial position and results of operations.

***Litigation***

We may become party to litigation from time to time in the ordinary course of business which could adversely affect our business. Should any litigation in which we become involved be determined against us such a decision could adversely affect our ability to continue operating and the market price for our shares and could use significant resources. Even if we are involved in litigation and win, litigation can redirect significant company resources.

***Conflicts of interest***

Certain of our directors and officers do not devote their full time to the affairs of the Company and certain of our directors and officers are also directors, officers and shareholders of other biotechnology and research and development companies or other public companies in general, and as a result they may find themselves in a position where their duty to another company conflicts with their duty to the Company. There is no assurance that any such conflicts will be resolved in favor of the Company. If any such conflicts are not resolved in our favor we may be adversely affected.

***The psychedelic-inspired medicines industry and market are relatively new in this industry and the market may not continue to exist or grow as anticipated.***

We operate our business in a relatively new industry and market. In addition to being subject to general business risks, we must continue to build brand awareness in this industry and market through significant investments in our strategy, our operational capacity, quality assurance and compliance with regulations. In addition, there is no assurance that the industry and market will continue to exist and grow as currently estimated or anticipated or function and evolve in the manner consistent with management's expectations and assumptions. Any event or circumstance that adversely affects the psychedelic-inspired medicines industry and market could have a material adverse effect on our business, financial conditions and results of operations.

The psychedelic and psychedelic-inspired medicine market will face specific marketing challenges given the psychedelic products' status as a controlled substance which resulted in past and current public perception that the products have negative health and lifestyle effects and have the potential to cause physical and social harm due to psychoactive and potentially addictive effects. Any marketing efforts by us would need to overcome this perception to build consumer confidence, brand recognition and goodwill.

***The psychedelics-inspired medicines industry and market are relatively new, and the industry may not succeed in the long term.***

We operate our business in a relatively new industry and market. The use of psychedelic-inspired medicines for medicinal purposes has shown promise in various studies and we believe that both regulators and the public have an increasing awareness and acceptance of this promising field. Nevertheless, psychedelics remain a controlled substance in the United States, Canada, and most other jurisdictions and their use for research and therapeutic purposes remains highly regulated and narrow in scope. There is no assurance that the industry and market will continue to grow as currently estimated or anticipated or function and evolve in the manner consistent with management's expectations and assumptions. Any event or circumstance that adversely affects the psychedelic manufacturing and medicines industry and market could have a material adverse effect on our business, financial condition and results of operations. We have committed and expect to continue committing significant resources and capital to the development of psychedelic-inspired products for therapeutic uses. As a category of products, medical-grade psychedelics raw materials and psychedelic-derived APIs, and research into such substances, represent relatively untested offerings in the marketplace, and we cannot provide assurance that psychedelics as a category, or that our prospective psychedelic-inspired product candidates, in particular, will achieve market acceptance. Moreover, as a relatively new industry, there are not many established players in the psychedelic-inspired medicines industry whose business model we can emulate. Similarly, there is little information about comparable companies available for potential investors to review in making a decision about whether to invest in our Common Stock.

 ****

***Our psychedelic-inspired drug candidates may generate public controversy. Adverse publicity or public perception regarding the psychedelic-inspired APIs we intend to utilize may negatively influence our success and that of our prospective investigational therapies.***

Our ability to establish and grow our business is substantially dependent on the success of the emerging market for psychedelic-inspired medicines, which will depend upon, among other matters, pronounced and rapidly changing public preferences, factors which are difficult to predict and over which we have little, if any, control. We and our clients will be highly dependent upon consumer perception of psychedelic-inspired medicines and other products.

Therapies containing controlled substances may generate public controversy. Political and social pressures and adverse publicity could lead to delays in approval of, and increased expenses for any future therapeutic candidates we may develop. Opponents of these therapies may seek restrictions on marketing and withdrawal of any regulatory approvals. In addition, these opponents may seek to generate negative publicity in an effort to persuade the medical community to reject these therapies. For example, we may face media-communicated criticism directed at our clinical development program. Adverse publicity from the misuse of psilocybin, a psychedelic, may adversely affect the commercial success or market penetration achievable by our product candidates. Anti-psychedelic protests have historically occurred and may occur in the future and generate media coverage. Political pressures and adverse publicity could lead to delays in, and increased expenses for, and limit or restrict the introduction and marketing of any future therapeutic candidates.

***The expansion of the use of psychedelic-inspired medicines in the medical industry may require new clinical research into effective medical therapies.***

Research in the United States and internationally regarding the medical benefits, viability, safety, efficacy, addictiveness, dosing and social acceptance of psychedelic-inspired products remains in early stages. There have been relatively few clinical trials on the benefits of such products. Although we believe that the articles, reports and studies support our beliefs regarding the medical benefits, viability, safety, efficacy, dosing and social acceptance of psychedelic-inspired products, future research and clinical trials may prove such statements to be incorrect, or could raise concerns regarding, and perceptions relating to, psychedelic-inspired products. Given these risks, uncertainties and assumptions, readers should not place undue reliance on such articles and reports. Future research studies and clinical trials may draw opposing conclusions to those stated in this Annual Report or reach negative conclusions regarding the medical benefits, viability, safety, efficacy, dosing, social acceptance or other facts and perceptions related to psychedelic-inspired products, which could have a material adverse effect on the demand for our drug candidates with the potential to lead to a material adverse effect on the Company's business, financial condition and results of operations.

***The psychedelic-inspired medicine industry is difficult to quantify and investors will be reliant on their own estimates of the accuracy of market data.***

Because the psychedelic-inspired medicine industry is in a nascent stage with uncertain boundaries, there is a lack of information about comparable companies available for potential investors to review in deciding about whether to invest in us and, few, if any, established companies whose business model we can follow or upon whose success we can build. Accordingly, investors will have to rely on their own estimates in deciding about whether to invest in us. There can be no assurance that our estimates are accurate or that the market size is sufficiently large for our business to grow as projected, which may negatively impact our financial results.

 ****

***The psychedelic-inspired medicine and biotechnology industries are experiencing rapid growth and increased competition.***

The psychedelic-inspired medicine and biotechnology industries are undergoing rapid growth and substantial change, which has resulted in an increase in competitors, consolidation and formation of strategic relationships. Acquisitions or other consolidating transactions could harm us in a number of ways, including, without limitation, by losing strategic partners if they are acquired by or enter into relationships with a competitor, losing customers, revenue and market share, or forcing us to expend greater resources to meet new or additional competitive threats, all of which could harm our operating results.

Additionally, the biotechnology and pharmaceutical industries are intensely competitive and subject to rapid and significant technological change. We have competitors in Canada, the United States, Europe and other jurisdictions, including, without limitation, major multinational pharmaceutical companies, established biotechnology companies, specialty pharmaceutical and generic drug companies and universities and other research institutions. Many of our competitors have greater financial and other resources, such as larger research and development staff and more experienced marketing and manufacturing organizations than we do. Large pharmaceutical companies, in particular, have extensive experience in, and substantial capital resources for, conducting research, molecular derivative development, obtaining regulatory approvals, obtaining intellectual property protection and establishing key relationships. These companies also have significantly greater sales and marketing capabilities and experience in completing collaborative transactions in our target markets with leading companies and research institutions.

Our competitors may introduce new psychedelic-inspired medicines or develop technological advances that compete with us. We cannot predict the timing or impact of competitors introducing new psychedelic-inspired medicines or technological advances. Such competing psychedelic-inspired medicines may be safer, more effective, more effectively marketed, licensed or sold or have lower prices or superior performance features than our psychedelic-inspired drug candidates, and this could negatively impact our business and results of operations. Established pharmaceutical companies may also invest heavily to accelerate discovery and development of novel compounds or to in-license novel compounds that could make the psychedelic-inspired drug candidates that we develop obsolete. As a result of all of these factors, our competitors may succeed in obtaining patent protection or discovering, developing and commercializing psychedelic-inspired medicines before we do or may develop psychedelic-inspired medicines that are deemed to be more effective or gain greater market acceptance than those of the Company.

Smaller or early-stage companies may also prove to be significant competitors, particularly through collaborative transactions with large, established companies. In addition, many universities and private and public research institutes may become active in the development of novel compounds. Our competitors may succeed in developing, acquiring or licensing on an exclusive basis, technologies and psychedelic-inspired medicines that are more effective or less costly than any of the psychedelic-inspired drug candidates that we are currently developing or that we may develop, which could render our psychedelic-inspired drug candidates obsolete or non-competitive. If our competitors market psychedelic-inspired medicines that are more effective, safer or less expensive or that reach the market sooner than our psychedelic-inspired drug candidates, if any, we may not achieve commercial success. In addition, because of our limited resources, it may be difficult for us to stay abreast of the rapid changes in each technology. If we fail to stay at the forefront of technological change, we may be unable to compete effectively. Technological advances or products developed by our competitors may render our technologies or psychedelic-inspired drug candidates obsolete, less competitive or not economical.

***Changes in legislation, regulations and guidelines.***

Our operations are subject to various laws, regulations and guidelines relating to, among other things, drug research, development, marketing practices, health and safety, the conduct of operations and preclinical trials. In addition to FDA or Health Canada restrictions on the marketing of pharmaceutical products, several other types of state and federal laws have been applied to restrict certain marketing practices in the pharmaceutical and medical industries in recent years, as well as consulting or other service agreements with physicians or other potential referral sources. While to the knowledge of management, we are currently in compliance with all such laws, changes to applicable laws, regulations and guidelines may cause adverse effects to its operations. The risks to the business of the Company represented by this or similar risks are that they could significantly reduce the addressable market for our psychedelic-inspired drug candidates and could materially and adversely affect the business, financial condition and results of our operations.

**Risks Related to Regulatory Matters**

***Our current and prospective product candidates, and the development thereof, are or will be subject to the various federal and state laws and regulations relating to the safety and efficacy of health products, such as drugs and medical devices.***

We are in the process of developing investigational new drugs for which we intend to pursue FDA approval via the NDA process. In these product candidates and synthetic molecules based on psychedelics, such as psilocybin, mescaline and MDMA, will be the active pharmaceutical ingredients.

In connection with our development and future commercialization (if applicable) of our prospective products, we, and each contemplated product candidate, are subject to the FDCA. The FDCA is intended to assure the consumer, in part, that drugs and devices are safe and effective for their intended uses and that all labeling and packaging is truthful, informative, and not deceptive. The FDCA and the FDA regulations define the term "drug," in part, by reference to its intended use, as "articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease" and "articles (other than food) intended to affect the structure or any function of the body of man or other animals." The definition also includes components of drugs, such as active pharmaceutical ingredients. To be lawfully marketed in the United States, drugs must generally either receive premarket approval by FDA through the NDA process or conform to a "monograph" for a particular drug category, as established by FDA's Over-the-Counter ("*OTC*") Drug Review. If the FDA does not award premarket approval for our product candidates through the NDA process, this will have a material adverse effect on our business, financial condition and results of operations.

Additionally, the nature of the active ingredients we intend to utilize in our product candidates subjects us and our development and future commercialization (as applicable) activities to additional regulatory scrutiny and oversight. In connection with our development and future commercialization (if applicable) of psychedelic-based product candidates, we and each contemplated product candidate will be subject to the federal Controlled Substances Act ("*CSA*") and the Controlled Substances Import and Export Act in the United States and analogous state and foreign laws.

There is no guarantee that any of our investigational drugs will ever be approved as medicines in any jurisdiction in which the Company operates, as there are currently very few FDA-approved drugs containing the psychedelic ingredients we intend to utilize as active ingredients. And, the laws and regulations generally applicable to the industry in which the Company is involved are subject to constant evolution and may change in ways currently unforeseen. Any amendment to or replacement of existing laws or regulations, including the re-classification of the substances the Company is developing or with which it is working, which are matters beyond the Company's control, may cause the Company's business, financial condition, results of operations and prospects to be adversely affected or may cause the Company to incur significant costs in complying with such changes or it may be unable to comply therewith. A violation of any applicable laws and regulations of the jurisdictions in which the Company operates could result in significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings initiated by either government entities in the jurisdictions in which the Company operates, or private citizens or criminal charges.

***The psychedelic-inspired drug candidates we are developing or may develop in the future may be subject to controlled substance laws and regulations in the United States and other countries where the product will be marketed, and failure to comply with these laws and regulations, or the cost of compliance with these laws and regulations, may adversely affect the results of our business operations and our financial condition.***

In the United States, psychedelics, such as psilocybin (and its active metabolite, psilocin), DMT, mescaline and MDMA, are classified by the Drug Enforcement Administration ("*DEA*") as a Schedule I substances under the CSA. The DEA regulates chemical compounds as Schedule I, II, III, IV or V substances. Schedule I substances by-definition have a high potential for abuse, have no currently accepted medical use in the United States, lack accepted safety for use under medical supervision, and may not be prescribed marketed or sold in the United States. Pharmaceutical products approved for use in the United States may be listed as Schedule II, III, IV or V, with Schedule II substances considered to present the highest potential for abuse or dependence and Schedule V substances the lowest relative risk of abuse among such substances. Schedule I and II substances are subject to the strictest controls under the CSA, including manufacturing and procurement quotas, security requirements and criteria for importation. In addition, dispensing of Schedule II substances is further restricted. For example, they may not be refilled without a new prescription and may have a black box warning. For any product containing active ingredients that are Schedule I controlled substances to be available for commercial marketing in the United States, the product must be scheduled by the DEA to Schedule II, III, IV or V, which requires scheduling-related legislative or administrative action, which can further delay the path to market. There can be no assurance that the DEA will make a favorable scheduling decision about our psychedelic-inspired drug candidates. Even assuming categorization as a Schedule II or lower controlled substance (i.e., Schedule III, IV or V), at the federal level, such substances would also require scheduling determinations under state laws and regulations.

FDA approval is also a prerequisite to commercialization, and the controlled-substance status, currently undetermined, of our psychedelic-inspired APIs may negatively impact the FDA's decision regarding whether to approve the applicable product candidates.

During the pre-market review process, the FDA may determine that additional data is needed for one or more of our psychedelic-inspired drug candidates, either from non-clinical or clinical studies, including with respect to whether, or to what extent, the substance has abuse potential. This may introduce a delay into the approval and any potential rescheduling process.

In addition, therapeutic candidates containing controlled substances are subject to DEA regulations relating to manufacturing, storage, distribution and physician prescription procedures, including:

● DEA
 registration and inspection of facilities. Facilities conducting research, manufacturing, distributing, importing or exporting, or
 dispensing controlled substances must be registered (licensed) to perform these activities and have the security, control, recordkeeping,
 reporting and inventory mechanisms required by the DEA to prevent drug loss and diversion. All these facilities must renew their
 registrations annually, except dispensing facilities, which must renew every three years. The DEA conducts periodic inspections of
 certain registered establishments that handle controlled substances. Obtaining and maintaining the necessary registrations may result
 in delay of the importation, manufacturing or distribution of product candidates. Furthermore, failure to maintain compliance with
 the CSA, particularly non-compliance resulting in loss or diversion, can result in regulatory action that could have a material adverse
 effect on our business, financial condition and results of operations. The DEA may seek civil penalties, refuse to renew necessary
 registrations, or initiate proceedings to restrict, suspend or revoke those registrations. In certain circumstances, violations could
 lead to criminal proceedings.

● State
 controlled-substances laws. Individual U.S. states have also established controlled substance laws and regulations. Though state-controlled
 substances laws often mirror federal law, because the states are separate jurisdictions, they may separately schedule product candidates.
 While some states automatically schedule a drug based on federal action, other states schedule drugs through rule making or a legislative
 action. State scheduling may delay commercial sale of any product for which we obtain federal regulatory approval and adverse scheduling
 could have a material adverse effect on the commercial attractiveness of such product. We or any partners must also obtain separate
 state registrations, permits or licenses in order to be able to obtain, handle, and distribute controlled substances for clinical
 trials or commercial sale, and failure to meet applicable regulatory requirements could lead to enforcement and sanctions by the
 states in addition to those from the DEA or otherwise arising under federal law.

● Clinical
 trials. The abuse liability potential of our psychedelic-inspired drug candidates has not yet been studied. A Human Abuse Potential
 study or an equivalent study may determine that, upon regulatory approval, our drug candidate will be a Schedule I controlled substance.
 Therefore, any future research or development activities with the approved drug may require submission of a preclinical or clinical
 protocols to the DEA and obtaining and maintaining a DEA license for each site that uses the approved drug. In that situation, if
 the DEA delays or denies the grant of a researcher registration to one or more research sites, future clinical trials could be significantly
 delayed, and we could lose clinical trial sites.

● Importation.
 If any of our product candidates is approved and classified as a Schedule II, III or IV substance, an importer can only import it
 for commercial purposes if it obtains an importer registration and files an application for an import permit for each import. The
 DEA provides annual assessments/estimates to the International Narcotics Control Board, which guides the DEA in the amounts of controlled
 substances that the DEA authorizes to be imported. The failure to identify an importer or obtain the necessary import authority,
 including specific quantities, could affect the availability of our product candidates and have a material adverse effect on our
 business, results of operations and financial condition. In addition, an application for a Schedule II importer registration must
 be published in the Federal Register, and there is a waiting period for third-party comments to be submitted. It is always possible
 that adverse comments may delay the grant of an importer registration.

● Manufacture.
 If, because of a Schedule II classification or voluntarily, we were to conduct manufacturing or repackaging/relabeling in the United
 States, our contract manufacturers would be subject to the DEA's annual manufacturing and procurement quota requirements.

● Distribution.
 If any of our product candidates is approved for marketing and scheduled under Schedule II, III or IV, we would also need to identify
 wholesale distributors with the appropriate DEA registrations and authority to possess and distribute or dispense such products.

***If the psychedelic-inspired APIs and drug products that we intend to utilize in the future are determined to be Schedule I controlled substances under the CSA in the United States and under similar controlled-substance legislation in other countries, any significant violations of these laws and regulations, or changes in the laws and regulations, may result in interruptions to our development activity or business continuity.***

The psychedelic-inspired APIs we intend to utilize have not yet been studied in preclinical or clinical abuse liability studies and may be categorized as Schedule I controlled substances under the CSA or the state or foreign equivalent and would likely be. illegal without the requisite regulatory authorizations (e.g., to allow for the use of such substances in clinical trials under an IND and in compliance with all applicable FDA, DEA, and other regulatory requirements). Violations of any federal, state or foreign laws and regulations could result in significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings conducted by either the federal government or private citizens, or criminal charges and penalties, including, but not limited to, disgorgement of profits, cessation of business activities, divestiture or prison time. If such were to occur, this could have a material adverse effect on us, including on our reputation and ability to conduct business, our financial position, operating results, profitability or liquidity, the potential listing of our shares or the market price of our shares. In addition, it is difficult for us to estimate the time or resources that would be needed for the investigation or defense of any such matters or our final resolution because, in part, the time and resources that may be needed are dependent on the nature and extent of any information requested by the applicable authorities involved, and such time or resources could be substantial. It is also illegal to aid or abet such activities or to conspire or attempt to engage in such activities. An investor's contribution to and involvement in such activities may result in federal civil and/or criminal prosecution, including, but not limited to, forfeiture of his, her or its entire investment, fines and/or imprisonment.

Various federal, state, provincial and local laws govern our business in any jurisdictions in which we may operate, and to which we may export our products, including laws relating to health and safety, the conduct of our operations, and the production, storage, sale and distribution of our products. Complying with these laws requires that we comply concurrently with complex federal, state, provincial and/or local laws. These laws change frequently and may be difficult to interpret and apply. To ensure our compliance with these laws, we will need to invest significant financial and managerial resources. It is impossible for us to predict the cost of such laws or the effect they may have on our future operations. A failure to comply with these laws could negatively affect our business and harm our reputation. Changes to these laws could negatively affect our competitive position and the markets in which we operate, and there is no assurance that various levels of government in the jurisdictions in which we operate will not pass legislation or regulation that adversely impacts our business.

In addition, even if we or third parties were to conduct activities in compliance with U.S. state or local laws or the laws of other countries and regions in which we conduct activities, potential enforcement proceedings could involve significant restrictions being imposed upon us or third parties, while diverting the attention of key executives. Such proceedings could have a material adverse effect on our business, revenue, operating results and financial condition as well as on our reputation and prospects, even if such proceedings conclude successfully in our favor. In the extreme case, such proceedings could ultimately involve the criminal prosecution of our key executives, the seizure of corporate assets, and consequently, our inability to continue business operations. Strict compliance with state and local laws with respect to psilocybin and psilocin does not absolve us of potential liability under U.S. federal law, the Canadian law or EU law, nor provide a defense to any proceeding which may be brought against us. Any such proceedings brought against us may adversely affect our operations and financial performance.

***Our prospective products will be subject to the various federal and state laws and regulations relating to health and safety.***

We are in the process of developing investigational new drugs for which we intend to pursue FDA approval via the NDA process. In connection with our development and future commercialization (if applicable) of our products, we and each contemplated product candidate are subject to the FDCA. The FDCA is intended to assure the consumer, in part, that drugs and devices are safe and effective for their intended uses and that all labeling and packaging is truthful, informative, and not deceptive. The FDCA and FDA regulations define the term "drug," in part, by reference to its intended use, as "articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease" and "articles (other than food) intended to affect the structure or any function of the body of man or other animals." Therefore, almost any ingested or topical or injectable product that, through its label or labeling (including internet websites, promotional pamphlets, and other marketing material), that is claimed to be beneficial for such uses will be regulated by FDA as a drug. The definition also includes components of drugs, such as active pharmaceutical ingredients. Drugs must generally either receive premarket approval by FDA through the NDA process or conform to a "monograph" for a particular drug category, as established by FDA's OTC Drug Review. If the FDA does not award premarket approval for our product candidates through the NDA process, this could have a material adverse effect on our business, financial condition and results of operations.

***Clinical trials are expensive, time-consuming, uncertain and susceptible to change, delay or termination. The results of clinical trials are open to differing interpretations.***

We currently have one drug candidate that is in preclinical development for indications such as depression and anxiety. We intend to develop additional drug candidates targeting other indications, including, for example, addiction and PTSD. After completing the requisite preclinical testing, submissions to the FDA (namely IND applications), internal review board ("*IRB*") review, and any other applicable obligations that must be completed before clinical testing may begin in the United States, we must conduct extensive clinical trials to demonstrate the safety and efficacy of our product candidates. Clinical testing is expensive, time consuming, and uncertain as to outcome. We cannot guarantee that any clinical trials will be conducted as planned or completed on schedule, or at all. Failures in connection with one or more clinical trials can occur at any stage of testing.

The FDA and other applicable regulatory agencies may analyze or interpret the results of clinical trials differently than us. Even if the results of our clinical trials are favorable, the clinical trials for a number of our product candidates are expected to continue for several years and may take significantly longer to complete. Events that may prevent successful or timely completion of clinical development include (without limitation):

● delays
 in reaching a consensus with regulatory authorities on trial design;

● delays
 in reaching agreement on acceptable terms with prospective CROs and clinical trial sites;

● delays
 in sourcing materials and research animals for preclinical testing and correlated testing windows at the appropriate CRO facilities;

● delays
 in opening clinical trial sites or obtaining required IRB or independent ethics committee approval at each clinical trial site;

● actual
 or perceived lack of effectiveness of any product candidate during clinical trials;

● discovery
 of serious or unexpected toxicities or side effects experienced by trial participants or other safety issues, such as drug interactions,
 including those which cause confounding changes to the levels of other concomitant medications;

● slower
 than expected rates of subject recruitment and enrollment rates in clinical trials;

● difficulty
 in retaining subjects for the entire duration of applicable clinical studies (as study subjects may withdraw at any time due to adverse
 side effects from the therapy, insufficient efficacy, fatigue with the clinical trial process or for any other reason);

● delays
 or inability in manufacturing or obtaining sufficient quantities of materials for use in clinical trials due to regulatory and manufacturing
 constraints;

● inadequacy
 of or changes in our manufacturing process or product candidate formulation;

● delays
 in obtaining regulatory authorizations, such as INDs and any others that must be obtained, maintained, and/or satisfied to commence
 a clinical trial, including "clinical holds" or delays requiring suspension or termination of a trial by a regulatory
 agency, such as the FDA, before or after a trial is commenced;

● changes
 in applicable regulatory policies and regulation, including changes to requirements imposed on the extent, nature or timing of studies;

● delays
 or failure in reaching agreement on acceptable terms in clinical trial contracts or protocols with prospective clinical trial sites;

● uncertainty
 regarding proper dosing;

● delay
 or failure to supply product for use in clinical trials which conforms to regulatory specification;

● unfavorable
 results from ongoing preclinical studies and clinical trials;

● failure
 of our CROs, or other third-party contractors to comply with all contractual requirements or to perform their services in a timely
 or acceptable manner;

● failure
 by us, our employees, our CROs or their employees to comply with all applicable FDA or other regulatory requirements relating to
 the conduct of clinical trials;

● scheduling
 conflicts with participating clinicians and clinical institutions;

● failure
 to design appropriate clinical trial protocols;

● regulatory
 concerns with psychedelics or psychedelic-inspired drug candidates, generally, and the potential for abuse;

● insufficient
 data to support regulatory approval;

● inability
 or unwillingness of medical investigators to follow our clinical protocols;

● difficulty
 in maintaining contact with patients during or after treatment, which may result in incomplete data;

● any
 clinical holds placed on company by regulatory agencies during review process;

● delay
 or failure to supply psychedelic-inspired drug candidate for use in clinical trials due to cross-border or inter-continental shipment
 or customs handling and processing of controlled substances; or

● difficulty
 finding clinical trials sites whose investigators possess the requisite credentials to oversee clinical trials involving a Schedule
 I substance, should such be required.

***Certain third-parties we rely on to conduct our operations are subject to regulatory requirements.***

We rely on third parties to conduct our preclinical studies and expect to use clinical studies in the future. We rely on CROs and clinical data management organizations to design, conduct, supervise and monitor our preclinical studies and clinical trials. We and our CROs are required to comply with various regulations, including GCP, which are enforced by regulatory agencies, to ensure that the health, safety and rights of patients are protected in clinical development and clinical trials, and that trial data integrity is assured. Regulatory authorities ensure compliance with these requirements through periodic inspections of trial sponsors, principal investigators and trial sites. Our reliance on third parties that we do not control does not relieve us of these responsibilities and requirements. If we or any of our CROs fail to comply with applicable requirements, the clinical data generated in our clinical trials may be deemed unreliable and the FDA or other comparable foreign regulatory authorities may require us to perform additional clinical trials before approving our marketing applications. Because we rely on third parties, our internal capacity to perform these functions is limited. Outsourcing these functions involves risk that third parties may not perform to our standards, may not produce results in a timely manner or may fail to perform at all.

We rely on third parties to supply the materials for, and manufacture, our research and development, and preclinical and clinical trial supplies and APIs, and we expect to continue to rely on third-party manufacturers if we receive regulatory approval for any product candidate. To the extent that we have existing, or enter into future, manufacturing arrangements with third parties, we will depend on these third parties to perform their obligations in a timely manner consistent with contractual and regulatory requirements, including those related to quality control and assurance.

***Difficulty or delays in enrolling patients in clinical trials may result in delay or prevention of necessary regulatory approvals.***

If we are unable to locate and enroll a sufficient number of eligible patients to participate in our clinical trials for our product candidates as required by the FDA or similar regulatory authorities outside the United States, we may not be able to initiate or conduct our trials. Our inability to enroll a sufficient number of patients for our trials would result in significant delays could require us to postpone or abandon clinical trials. Enrollment delays may result in increased development costs for our product candidates.

***Any failure by us to comply with existing regulations could harm our reputation and operating results.***

We are subject to extensive regulation by U.S. federal and state and foreign governments in each of the U.S., European and Canadian markets, in which we plan to sell our product candidates. We must adhere to all regulatory requirements, including FDA's GLP, GCP, and cCMP requirements, pharmacovigilance requirements, advertising and promotion restrictions, reporting and recordkeeping requirements, and their European equivalents. If we or our suppliers fail to comply with applicable regulations, including FDA pre-or post-approval requirements, then the FDA or other foreign regulatory authorities could sanction the Company. Even if a drug is approved by the FDA or other competent authorities, regulatory authorities may impose significant restrictions on a product's indicated uses or marketing or impose ongoing requirements for potentially costly post-marketing trials.

Any of our product candidates which may be approved in the U.S. will be subject to ongoing regulatory requirements for manufacturing, labeling, packaging, storage, distribution, import, export, advertising, promotion, sampling, recordkeeping and submission of safety and other post-market information, including both federal and state requirements. In addition, manufacturers and manufacturers' facilities are required to comply with extensive FDA requirements, including ensuring that quality control and manufacturing procedures conform to cCMP. As such, we and our contract manufacturers (in the event contract manufacturers are appointed in the future) are subject to continual review and periodic inspections to assess compliance with cCMP. Accordingly, we and others with whom we work will have to spend time, money and effort in all areas of regulatory compliance, including manufacturing, production, quality control and quality assurance. We will also be required to report certain adverse reactions and production problems, if any, to the FDA, and to comply with requirements concerning advertising and promotion for our products. Promotional communications with respect to prescription drugs are subject to a variety of legal and regulatory restrictions and must be consistent with the information in the product's approved label. Similar restrictions and requirements exist in the European Union and other markets where we operate.

If a regulatory agency discovers previously unknown problems with a product, such as adverse events of unanticipated severity or frequency, or problems with the facility where the product is manufactured, or disagrees with the promotion, marketing or labeling of the product, it may impose restrictions on that product or on us, including requiring withdrawal of the product from the market. If we fail to comply with applicable regulatory requirements, a regulatory agency or enforcement authority may:

● issue
 warning letters;

● impose
 civil or criminal penalties;

● suspend
 regulatory approval;

● suspend
 any of our ongoing clinical trials;

● refuse
 to approve pending applications or supplements to approved applications submitted by us;

● impose
 restrictions on our operations, including by requiring us to enter into a Corporate Integrity Agreement or closing our contract manufacturers'
 facilities, if any; or

● seize
 or detain products or require a product recall.

 ****

***We may be subject to federal, state and foreign healthcare laws and regulations and implementation of or changes to such healthcare laws and regulations could adversely affect our business and results of operations.***

If we successfully complete the requisite preclinical and clinical testing, make the required regulatory submissions and obtain any corresponding authorizations or licenses (as applicable), fulfill all other applicable development-related regulatory obligations, and, eventually, obtain FDA approval to market one or more of our current or future product candidates in the United States, we may be subject to certain healthcare laws and regulations. In both the U.S. and certain foreign jurisdictions, there have been a number of legislative and regulatory proposals to change the healthcare system in ways that could impact our ability to sell our future product candidates. If we are found to be in violation of any of these laws or any other federal, state or foreign regulations, we may be subject to administrative, civil and/or criminal penalties, damages, fines, individual imprisonment, exclusion from federal health care programs and the restructuring of our operations. Any of these could have a material adverse effect on our business and financial results. Since many of these laws have not been fully interpreted by the courts, there is an increased risk that we may be found in violation of one or more of their provisions. Any action against us for violation of these laws, even if we are ultimately successful in our defense, will cause us to incur significant legal expenses and divert our management's attention away from the operation of our business. In addition, in many foreign countries, particularly the countries of the European Union, the pricing of prescription drugs is subject to government control.

In some foreign countries, the proposed pricing for a drug must be approved before it may be lawfully marketed. The requirements governing drug pricing vary widely from country to country. For example, some European Union jurisdictions operate positive and negative list systems under which products may only be marketed once a reimbursement price has been agreed. To obtain reimbursement or pricing approval, some of these countries may require the completion of clinical trials that compare the cost effectiveness of a particular product candidate to currently available therapies. Other member states allow companies to fix their own prices for medicines but monitor and control company profits. Such differences in national pricing regimes may create price differentials between European Union member states. There can be no assurance that any country that has price controls or reimbursement limitations for pharmaceutical products will allow favorable reimbursement and pricing arrangements for any of our products.

Historically, products launched in the European Union do not follow price structures of the U.S. In the European Union, the downward pressure on healthcare costs in general, particularly prescription medicines, has become intense. As a result, barriers to entry of new products are becoming increasingly high and patients are unlikely to use a drug product that is not reimbursed by their government.

We may face competition from lower-priced products in foreign countries that have placed price controls on pharmaceutical products. In addition, the importation of foreign products may compete with any future product that we may market, which could negatively impact our profitability.

An expansion in the government's role in the U.S. healthcare industry may cause general downward pressure on the prices of prescription drug products, lower reimbursements or any other product for which we obtain regulatory approval, reduce product utilization and adversely affect our business and results of operations. Any reduction in reimbursement from Medicare or other government programs may result in a similar reduction in payments from private payors. The implementation of such cost containment measures and other healthcare reforms may prevent us from being able to generate revenue, attain profitability, or commercialize any of our future product candidates for which we may receive regulatory approval.

***There is a high rate of failure for drug candidates proceeding through clinical trials.***

We have no products on the market. None of our prospective products or investigational candidates have ever been tested in a human subject. Our ability to achieve and sustain profitability with respect to our product candidates depends on obtaining regulatory approvals for and, if approved, successfully commercializing our product candidates, either alone or with third parties. Before obtaining regulatory approval for the commercial distribution of our product candidates, we or an existing or future collaborator must conduct extensive preclinical tests and clinical trials to demonstrate the safety, purity and potency of our product candidates.

Generally, there is a high rate of failure for drug candidates proceeding through clinical trials. We may suffer significant setbacks in our clinical trials similar to the experience of a number of other companies in the pharmaceutical and biotechnology industries, even after receiving promising results in earlier trials. Further, even if we view the results of a clinical trial to be positive, the FDA or other regulatory authorities may disagree with our interpretation of the data. In the event that we obtain negative results from clinical trials for product candidates or other problems related to potential chemistry, manufacturing and control issues or other hurdles occur and our future product candidates are not approved, we may not be able to generate sufficient revenue or obtain financing to continue our operations, our ability to execute on our current business plan may be materially impaired, and our reputation in the industry and in the investment community might be significantly damaged. In addition, our inability to properly design, commence and complete clinical trials may negatively impact the timing and results of our clinical trials and ability to seek approvals for our drug candidates.

The testing, marketing and manufacturing of any new drug product for use in the United States will require approval from the FDA. We cannot predict with any certainty the amount of time necessary to obtain such FDA approval and whether any such approval will ultimately be granted. Preclinical studies and clinical trials may reveal that one or more products are ineffective or unsafe, in which event further development of such products could be seriously delayed or terminated. Moreover, obtaining approval for certain products may require testing on human subjects of substances whose effects on humans are not fully understood or documented. Delays in obtaining FDA or any other necessary regulatory approvals of any proposed drug and failure to receive such approvals would have an adverse effect on the drug's potential commercial success and on our business, prospects, financial condition and results of operations. In addition, it is possible that a proposed drug may be found to be ineffective or unsafe due to conditions or facts that arise after development has been completed and regulatory approvals have been obtained. In this event, we may be required to withdraw such proposed drug from the market. To the extent that our success will depend on any regulatory approvals from government authorities outside of the United States that perform roles similar to that of the FDA, uncertainties similar to those stated above will also exist.

 ****

***Serious adverse events or other safety risks could require us to abandon development and preclude, delay or limit approval of our prospective products or current or future product candidates, limit the scope of any approved label or market acceptance, or cause the recall or loss of marketing approval of products that are already marketed.***

If any of our prospective products or current or future product candidates, prior to or after any approval for commercial sale, cause serious or unexpected side effects, or are associated with other safety risks such as misuse, abuse or diversion, a number of potentially significant negative consequences could result, including:

● regulatory
 authorities may interrupt, delay or halt clinical trials;

● regulatory
 authorities may deny regulatory approval of our future product candidates;

● regulatory
 authorities may require certain labeling statements, such as warnings or contraindications or limitations on the indications for
 use, and/or impose restrictions on distribution in the form of a Risk Evaluation and Mitigation Strategy ()"*REMS* ")
 in connection with approval or post-approval;

● regulatory
 authorities may withdraw their approval, require more onerous labeling statements, impose a more restrictive REMS, or require it
 to recall any product that is approved;

● we
 may be required to change the way the product is administered or conduct additional clinical trials;

● our
 relationships with our collaboration partners may suffer;

● we
 could be sued and held liable for harm caused to patients; or

● our
 reputation may suffer. The reputational risk is heightened with respect to those of our future product candidates that are being
 developed for pediatric indications.

Additionally, in light of the recent budget and staffing cuts at the FDA, the FDA may experience delays reviewing or approving our prospective products or current or future product candidates, which could impair our ability to commercialize our prospective products or current or future product candidates and have a material adverse effect on the business, financial condition and operating results of the Company.

***We may voluntarily suspend or terminate our clinical trials if at any time we believe that the product candidates present an unacceptable risk to participants, or if preliminary data demonstrates that our future product candidates are unlikely to receive regulatory approval or unlikely to be successfully commercialized.***

After completing preclinical testing and obtaining the requisite regulatory authorizations, as applicable, we may voluntarily suspend or terminate our clinical trials for any number of reasons, including if we believe that a product's use, or a person's exposure to it, may cause adverse health consequences or death. In addition, regulatory agencies, IRBs or data safety monitoring boards may at any time recommend the temporary or permanent discontinuation of our clinical trials or request that we cease using investigators in the clinical trials if they believe that the clinical trials are not being conducted in accordance with applicable regulatory requirements, or that they present an unacceptable safety risk to participants. Although we have never been asked by a regulatory agency, IRB or data safety monitoring board to temporarily or permanently discontinue a clinical trial, if we elect or are forced to suspend or terminate a clinical trial of any of our future product candidates, the commercial prospects for that product will be harmed and our ability to generate product revenue from that product may be delayed or eliminated. Furthermore, any of these events may result in labeling statements such as warnings or contraindications.

In addition, such events or labeling could prevent us or our partners from achieving or maintaining market acceptance of the affected product and could substantially increase the costs of commercializing our future product candidates and impair our ability to generate revenue from the commercialization of these products either by us or by our collaboration partners.

 ****

***Regulatory risks related to psychedelic-inspired drug candidates***

Successful execution of our strategy is contingent, in part, upon compliance with regulatory requirements from time to time enacted by governmental authorities and obtaining all regulatory approvals, where necessary, for the development of our psychedelic-inspired drug candidates. The abuse liability potential of our psychedelic-inspired drug candidates has not yet been studied in preclinical or clinical studies. Therefore, Health Canada or the FDA have not yet determined whether our psychedelic-inspired drug candidates will be scheduled as controlled substances. Based on the studies Health Canada or the FDA or other regulatory authorities may determine that our psychedelic-inspired drug candidates are controlled substances and therefore, would require classification as a controlled substance with all the requisite controls.

Further, we may not be able to predict the time required to secure all appropriate regulatory approvals for our psychedelic-inspired drug candidates, or the extent of testing and documentation that may, from time to time, be required by governmental authorities. The impact of compliance regimes, any delays in obtaining, or failure to obtain regulatory approvals may significantly delay or impact the development of markets, our business and psychedelic-inspired drug candidates, and licensing initiatives and could have a material adverse effect on the business, financial condition and operating results of the Company.

We will incur ongoing costs and obligations related to regulatory compliance. Failure to comply with regulations may result in additional costs for corrective measures, penalties or result in restrictions on our operations. In addition, changes in regulations, more vigorous enforcement thereof or other unanticipated events could require extensive changes to our operations, increased compliance costs or give rise to material liabilities, which could have a material adverse effect on the business, financial condition and operating results of the Company.

***Our management will be required to devote a substantial time to comply with public company regulations.***

As a public company, we incur significant legal, accounting and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act of 2002 (the "*Sarbanes-Oxley Act*"), the Dodd-Frank Wall Street Reform and Consumer Protection Act as well as rules implemented by the SEC and Nasdaq, impose various requirements on public companies, including those related to corporate governance practices. Our management and other personnel must devote a substantial amount of time to these requirements. Moreover, these rules and regulations increase our legal and financial compliance costs and make some activities more time consuming and costly.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management to report on the effectiveness of our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. Our compliance with these requirements will require that we incur substantial accounting and related expenses and expend significant management efforts. We have engaged third party consultants to help satisfy the ongoing requirements of Section 404 of the Sarbanes-Oxley Act. The costs of this outsourcing may be material and there can be no assurance that such staff will be immediately available to us. Moreover, if we are not able to comply with the requirements of Section 404 of the Sarbanes-Oxley Act, or if we identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses, investors could lose confidence in the accuracy and completeness of our financial reports, the market price of our Common Stock could decline and we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities, which could require additional financial and management resources.

 ****

***We have identified a material weakness in our internal control over financial reporting. If we are unable to remediate the material weakness, or if we experience additional material weaknesses in the future, our business may be harmed.***

Our management is responsible for establishing and maintaining adequate internal control over financial reporting and for evaluating and reporting on the effectiveness of our system of internal control. Internal control over financial reporting is a process used to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external purposes in accordance with generally accepted accounting principles in the United States. As a public company, we are required to comply with the Sarbanes-Oxley Act and other rules that govern public companies. In particular, we are required to certify our compliance with Section 404 of the Sarbanes-Oxley Act, which requires us to furnish annually a report by management on the effectiveness of our internal control over financial reporting.

Our management performed an assessment of the Company's significant processes and key controls. Based on this assessment, management concluded that our internal control over financial reporting was not effective as of December 31, 2024 and December 31, 2023 due to the material weakness related to segregation of duties. As of December 31, 2024 and December 31, 2023, there were control deficiencies which constituted a material weakness in our internal control over financial reporting. Management has taken, and is taking steps to strengthen our internal control over financial reporting: we have conducted evaluation of the material weakness to determine the appropriate remedy and have established procedures for documenting disclosures and disclosure controls.

Due to the small size of the Company, we do not maintain sufficient segregation of duties to ensure the processing, review and authorization of all transactions including non-routine transactions. While we have taken certain actions to address the material weaknesses identified, additional measures including engaging third-party consultants may be necessary as we work to improve the overall effectiveness of our internal controls over financial reporting.

Remediation efforts place a significant burden on management and add increased pressure to our financial resources and processes. If we are unable to successfully remediate our existing material weakness or any additional material weaknesses in our internal control over financial reporting that may be identified in the future in a timely manner, the accuracy and timing of our financial reporting may be adversely affected; our liquidity, our access to capital markets, the perceptions of our creditworthiness may be adversely affected; we may be unable to maintain or regain compliance with applicable securities laws or the listing requirements of Nasdaq; we may be subject to regulatory investigations and penalties; investors may lose confidence in our financial reporting; our reputation may be harmed; and our stock price may decline.

***Tax risk***

We are subject to various taxes in either the United States, Canada and Australia, or all three, including, without limitation, the following: income taxes, payroll taxes, workers compensation, goods and services tax, sales tax, and land transfer tax. Our tax filings will be subject to audit by various taxation authorities. While we intend to base its tax filings and compliance on the advice of our tax advisors, there can be no assurance that our tax filing positions will never be challenged by a relevant taxation authority resulting in a greater than anticipated tax liability.

**Risks Related to Our Intellectual Property**

***We may not be able to adequately protect or enforce our intellectual property rights, which could harm our competitive position.***

Our success will depend, in part, on our ability to obtain and maintain additional patents, protect our trade secrets and operate without infringing on the proprietary rights of others. We rely upon a combination of patents, trade secret protection (i.e., know-how), and confidentiality agreements to protect the intellectual property of our future product candidates. The strengths of patents in the pharmaceutical field involve complex legal and scientific questions and can be uncertain. Where appropriate, we seek patent protection for certain aspects of our products and technology. Filing, prosecuting and defending patents globally can be prohibitively expensive.

Our policy is to look to patent technologies with commercial potential in jurisdictions with significant commercial opportunities. However, patent protection may not be available for some of the products or technology we are developing. If we must spend significant time and money protecting, defending or enforcing our patents, designing around patents held by others or licensing, potentially for large fees, patents or other proprietary rights held by others, our business, results of operations and financial condition may be harmed. We may not develop additional proprietary products that are patentable.

The patent positions of pharmaceutical products are complex and uncertain. The scope and extent of patent protection for our future product candidates are particularly uncertain. Although we have sought, and will continue to seek, patent protection in the U.S., Europe and other countries for our proprietary technologies, future product candidates, their methods of use, and methods of manufacture, any or all of them may not be subject to effective patent protection. If any of our products is approved and marketed for an indication for which we do not have an issued patent, our ability to use our patents to prevent a competitor from commercializing a non-branded version of our commercial products for that non-patented indication could be significantly impaired or even eliminated.

Publication of information related to our future product candidates by us or others may prevent us from obtaining or enforcing patents relating to these products and product candidates. Furthermore, others may independently develop similar products, may duplicate our products, or may design around our patent rights. In addition, any of our issued patents may be opposed and/or declared invalid or unenforceable. If we fail to adequately protect our intellectual property, we may face competition from companies who attempt to create a generic product to compete with our future product candidates. We may also face competition from companies who develop a substantially similar product to our future product candidates that is not covered by any of our patents.

Many companies have encountered significant problems in protecting, defending and enforcing intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other intellectual property rights, particularly those relating to pharmaceuticals, which could make it difficult for us to stop the infringement of our patents or marketing of competing products in violation of our proprietary rights generally. Proceedings to enforce our patent rights in foreign jurisdictions could result in substantial cost and divert our efforts and attention from other aspects of our business.

***Our success depends on our ability to obtain additional intellectual property and operate without infringing the proprietary rights of others. Infringement claims by third parties may result in liability for damages or prevent or delay our developmental and commercialization efforts.***

Our success and ability to compete depend in part on our ability to obtain additional patents, protect our trade secrets, and operate without infringing on the proprietary rights of others. If we fail to adequately protect our intellectual property, we may face competition from companies who develop a substantially similar product to our future product candidates that is not covered by any of our intellectual property. Many companies have encountered significant problems in protecting, defending, and enforcing intellectual property rights in foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other intellectual property rights, particularly those relating to pharmaceuticals, which could make it difficult for us to stop the infringement of our intellectual property and other proprietary rights. There is also a substantial amount of litigation, both within and outside the U.S., involving patient and other intellectual property rights in the pharmaceutical industry. We may, from time to time, be notified of claims that we are infringing upon the proprietary rights of third parties, and we cannot provide assurances that other companies will not, in the future, pursue such infringement claims against it, our commercial partners, or any third-party proprietary technologies we have licensed.

***We may be unsuccessful in licensing additional intellectual property to develop new product candidates.***

We may in the future seek to in-license additional intellectual property that we believe could complement or expand our product candidates or otherwise offer growth opportunities. The pursuit of such licenses may cause us to incur various expenses in identifying, investigating and pursuing suitable intellectual property. If we acquire additional intellectual property to develop new therapeutic product candidates, we may not be able to realize anticipated cost savings or synergies.

 ****

***If third parties claim that intellectual property used by us infringes upon their intellectual property, our operating profits could be adversely affected.***

There is a substantial amount of litigation, both within and outside the U.S., involving patent and other intellectual property rights in the pharmaceutical industry. We may, from time to time, be notified of claims that we are infringing upon patents, trademarks, copyrights or other intellectual property rights owned by third parties, and we cannot provide assurances that other companies will not, in the future, pursue such infringement claims against us, our commercial partners or any third-party proprietary technologies we have licensed. If we were found to infringe upon a patent or other intellectual property right, or if we failed to obtain or renew a license under a patent or other intellectual property right from a third party, or if a third party that we were licensing technologies from was found to infringe upon a patent or other intellectual property rights of another third party, we may be required to pay damages, including damages of up to three times the damages found or assessed, if the infringement is found to be willful, suspend the manufacture of certain products or reengineer or rebrand our products, if feasible, or we may be unable to enter certain new product markets. Any such claims could also be expensive and time-consuming to defend and divert management's attention and resources. Our competitive position could suffer as a result. In addition, if we have declined or failed to enter into a valid non-disclosure or assignment agreement for any reason, we may not own the invention or our intellectual property, and our products may not be adequately protected. Thus, we cannot guarantee that any of our future product candidates, or our commercialization thereof, does not and will not infringe any third party's intellectual property.

***If we are not able to adequately prevent disclosure of trade secrets and other proprietary information, the value of our technology and products could be significantly diminished.***

We rely on trade secrets to protect our proprietary technologies, especially where it does not believe patent protection is appropriate or obtainable. However, trade secrets are difficult to protect. We rely in part on confidentiality agreements with our current and former employees, consultants, outside scientific collaborators, sponsored researchers, contract manufacturers, vendors and other advisors to protect our trade secrets and other proprietary information. These agreements may not effectively prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure of confidential information. In addition, we cannot guarantee that we have executed these agreements with each party that may have or have had access to our trade secrets. Any party with whom we or they have executed such an agreement may breach that agreement and disclose our proprietary information, including our trade secrets, and we may not be able to obtain adequate remedies for such breaches.

Enforcing a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive and time-consuming, and the outcome is unpredictable. In addition, some courts inside and outside the United States are less willing or unwilling to protect trade secrets. If any of our trade secrets were to be lawfully obtained or independently developed by a competitor, we would have no right to prevent them, or those to whom they disclose such trade secrets, from using that technology or information to compete with us. If any of our trade secrets were to be disclosed to or independently developed by a competitor or other third-party, our competitive position would be harmed.

***We may not be able to protect our intellectual property rights effectively outside of the United States.***

Filing, prosecuting and defending patents on all of our product candidates throughout the world would be prohibitively expensive. Therefore, we choose to file applications and/or obtained patents only in key markets. Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products and, further, may be able to export otherwise infringing products to territories where we have patent protection but where enforcement is not as strong as that in the United States. These products may compete with our products in jurisdictions where we do not have any issued patents and/or our patent claims or other intellectual property rights may not be effective or sufficient to prevent them from competing.

Many companies have encountered significant problems in protecting and defending intellectual property rights in certain foreign jurisdictions. The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other intellectual property protection, particularly those relating to pharmaceuticals, which could make it difficult to stop the infringement of our patents or marketing of competing products in violation of our proprietary rights generally. Proceedings to enforce our patent rights in certain foreign jurisdictions could result in substantial cost and divert our efforts and attention from other aspects of our business and could be unsuccessful.

 ****

***Our financial condition would be adversely impacted if our intangible assets become impaired***

Intangibles are evaluated quarterly and are tested for impairment at least annually or when events or changes in circumstances indicate the carrying value of each segment, and collectively the Company taken as a whole, might exceed its fair value. If we determine that the value of our intangible assets is less than the amounts reflected on our balance sheet, we will be required to reflect an impairment of our intangible assets in the period in which such determination is made. An impairment of our intangible assets would result in our recognizing an expense in the amount of the impairment in the relevant period, which would also result in the reduction of our intangible assets and a corresponding reduction in our stockholders' equity in the relevant period.

**Risks Related to the Ownership of Our Common Stock**

***Our Common Stock could be delisted from The Nasdaq Capital Market.***

Our Common Stock is currently listed on Nasdaq. However, we cannot assure you that we will be able to comply with the continued listing standards of Nasdaq. If we fail to comply with the continued listing standards of Nasdaq, our Common Stock may become subject to delisting. If Nasdaq delists our Common Stock from trading on its exchange for failure to meet the continued listing standards, we and our stockholders could face significant material adverse consequences including, without limitation:

● a
 limited availability of market quotations for our securities;

● a
 determination that our Common Stock is a "penny stock" which will require brokers trading in our Common Stock
 to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for
 our securities;

● a
 limited amount of analyst coverage; and

● a
 decreased ability for us to issue additional securities or obtain additional financing in the future.

***The market price of our Common Stock may be subject to significant fluctuations and volatility, and our stockholders may be unable to resell their shares at a profit and incur losses.***

The market price of our Common Stock could be subject to significant fluctuation. Market prices for securities of life sciences and biopharma companies in particular have historically been particularly volatile and have shown extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of those companies. Broad market and industry factors, as well as general economic, political and market conditions such as recessions or interest rate changes, may seriously affect the market price of our Common Stock, regardless of our actual operating performance. Some of the factors that may cause the market price of our Common Stock to fluctuate include, without limitation:

● investors
 react negatively to the effect on our business and prospects;

● the
 announcement of new products, new developments, services or technological innovations by us or our competitors;

● actual
 or anticipated quarterly increases or decreases in revenue, gross margin or earnings, and changes in our business, operations or
 prospects;

● announcements
 relating to strategic relationships, mergers, acquisitions, partnerships, collaborations, joint ventures, capital commitments, or
 other events by us or our competitors;

● conditions
 or trends in the life sciences and biopharma industries;

● changes
 in the economic performance or market valuations of other life sciences and biopharma companies;

● general
 market conditions or domestic or international macroeconomic and geopolitical factors unrelated to our performance or financial condition;

● sale
 of our Common Stock by stockholders, including executives and directors;

● volatility
 and limitations in trading volumes of our Common Stock;

● volatility
 in the market prices and trading volumes of companies in the life sciences and biopharma industries;

● our
 ability to finance our business;

● ability
 to secure resources and the necessary personnel to pursue our plans;

● failures
 to meet external expectations or management guidance;

● changes
 in our capital structure or dividend policy, future issuances of securities, sales or distributions of large blocks of Common
 Stock by stockholders;

● our
 cash position;

● announcements
 and events surrounding financing efforts, including debt and equity securities;

● analyst
 research reports, recommendation and changes in recommendations, price targets, and withdrawals of coverage;

● departures
 and additions of key personnel;

● disputes
 and litigation related to intellectual properties, proprietary rights, and contractual obligations;

● investigations
 by regulators into our operations or those of our competitors;

● changes
 in applicable laws, rules, regulations, or accounting practices and other dynamics; and

● other
 events or factors, many of which may be out of our control.

In the past, following periods of volatility in the overall market and the market prices of particular companies' securities, securities class action litigations have often been instituted against these companies. Litigation of this type, if instituted against us, could result in substantial costs and a diversion of our management's attention and resources. Any adverse determination in any such litigation or any amounts paid to settle any such actual or threatened litigation could require that we make significant payments.

***We may issue additional equity securities in the future, which may result in dilution to existing investors.***

To the extent we raise additional capital by issuing equity securities, our stockholders may experience substantial dilution. We may, from time to time, sell additional equity securities in one or more transactions at prices and in a manner we determine. If we sell additional equity securities, existing stockholders may be materially diluted. New investors could gain rights superior to existing stockholders, such as liquidation and other preferences. In addition, the number of shares available for future grant under our equity compensation plans may be increased in the future. Also, the exercise or conversion of outstanding options or warrants to purchase shares of capital stock may result in dilution to our stockholders upon any such exercise or conversion.

 ****

***Certain stockholders could attempt to influence changes within the Company which could adversely affect our operations, financial condition and the value of our Common Stock.***

Our stockholders may from time to time seek to acquire a controlling stake in the Company, engage in proxy solicitations, advance stockholder proposals or otherwise attempt to effect changes. Campaigns by stockholders to effect changes at publicly-traded companies are sometimes led by investors seeking to increase short-term stockholder value through actions such as financial restructuring, increased debt, special dividends, stock repurchases or sales of assets or the entire company. Responding to proxy contests and other actions by activist stockholders can be costly and time-consuming and could disrupt our operations and divert the attention of our Board and senior management from the operation of our business. These actions could adversely affect our operations, financial condition and the value of our Common Stock.

***If securities analysts do not publish research or reports about our business, or if they publish negative evaluations, the price of our Common Stock could decline.***

The trading market for our Common Stock will rely in part on the availability of research and reports that third-party industry or financial analysts publish about the Company. There are many large, publicly traded companies active in the life sciences and biopharma industries, which may mean it will be less likely that we receive widespread analyst coverage. Furthermore, if one or more of the analysts who do cover us downgrade our stock, our stock price would likely decline. If one or more of these analysts cease coverage of the Company, we could lose visibility in the market, which in turn could cause our stock price to decline.

***Anti-takeover provisions under Delaware corporate law may make it difficult for our stockholders to replace or remove our Board and could deter or delay third parties from acquiring the Company, which may be beneficial to our stockholders.***

Under our Amended and Restated Certificate of Incorporation, as amended ("*A&R Certificate of Incorporation*"), we are subject to the anti-takeover provisions of the Delaware General Corporation Law ("*DGCL*"), including Section 203 of the DGCL. Under these provisions, if anyone becomes an "interested stockholder," we may not enter into a "business combination" with that person for three (3) years without special approval, which could discourage a third party from making a takeover offer and could delay or prevent a change of control. For purposes of Section 203 of the DGCL, "interested stockholder" means, generally, someone owning fifteen percent (15%) or more of our outstanding voting stock or an affiliate of ours that owned fifteen percent (15%) or more of our outstanding voting stock during the past three (3) years, subject to certain exceptions as described in Section 203 of the DGCL.

***We do not anticipate paying any cash dividends in the foreseeable future.***

The current expectation is that we will retain our future earnings, if any, to fund the development and growth of our business. As a result, capital appreciation, if any, of our Common Stock will be our stockholders' sole source of gain, if any, for the foreseeable future.

***We may not be able to maintain an active trading market for our Common Stock.***

The listing of our Common Stock on Nasdaq does not assure that a meaningful, consistent and liquid trading market exists. If an active market for our Common Stock does continue, it may be difficult for investors to sell their shares without depressing the market price for the shares or at all.

***We maintain our cash at financial institutions, often in balances that exceed federally insured limits.***

The majority of our cash is held in accounts at U.S. banking institutions that we believe are of high quality. Cash held in non-interest-bearing and interest-bearing operating accounts may exceed the Federal Deposit Insurance Corporation ("*FDIC*") insurance limits. If such banking institutions were to fail, we could lose all or a portion of those amounts held in excess of such insurance limitations. Any material loss that we may experience in the future could have an adverse effect on our ability to pay our operational expenses or make other payments and may require us to move our accounts to other banks, which could cause a temporary delay in making payments to our vendors and employees and cause other operational inconveniences.

***We may acquire businesses or products, or form strategic alliances, in the future, and may not realize the benefits of such acquisitions.***

We may acquire additional businesses or products, form strategic alliances, or create joint ventures with third parties that we believe will complement or augment our existing business. If we acquire businesses with promising markets or technologies, we may not be able to realize the benefit of acquiring such businesses if we are unable to successfully integrate them with our existing operations and company culture. We may encounter numerous difficulties in developing, manufacturing, and marketing any new products resulting from a strategic alliance or acquisition that delay or prevent us from realizing their expected benefits or enhancing our business. There is no assurance that, following any such acquisition, we will achieve the synergies expected in order to justify the transaction, which could result in a material adverse effect on our business and prospects.

**USE OF PROCEEDS**

The Selling Stockholders will receive all of the proceeds from this offering. We will, however, receive the net proceeds of any January 2026 Warrants if exercised for cash. Proceeds, if any, received from the exercise of such January 2026 Warrants will be used primarily for product development, working capital, and general corporate purposes. No assurances can be given that any of such January 2026 Warrants will be exercised. The Selling Stockholders will pay any underwriting discounts and commissions and expenses incurred by the Selling Stockholders for brokerage, accounting, tax or legal services or any other expenses incurred by the Selling Stockholders in disposing of the shares. We will bear all other costs, fees and expenses incurred in effecting the registration of the shares covered by this prospectus, including all registration and filing fees, and fees and expenses for our counsel and our independent registered public accountants.

**MARKET PRICE, TICKER SYMBOL AND DIVIDEND INFORMATION**

**Market Information**

Our Common Stock is traded on the Nasdaq Capital Markets under the symbol "*ENVB*".

**Holders**

On February 4, 2026 the Company had approximately 294 stockholders of record. The number of holders of record is based on the actual number of holders registered on the books of our transfer agent and does not reflect holders of shares in "street name" or persons, partnerships, associations, corporations, or other entities identified in security position listings maintained by depository trust companies.

**Dividend Policy**

We have not paid any cash dividends on our Common Stock to date. We expect to retain future earnings, if any, for future operations and product development and have no current plans to pay cash dividends for the foreseeable future. Any decision to declare and pay dividends in the future will be made at the discretion of the Board and will depend on, among other things, our results of operations, financial condition, cash requirements, contractual restrictions and other factors that the Board may deem relevant. In addition, our ability to pay dividends may be limited by covenants of any existing and future outstanding indebtedness we or our subsidiaries incur. We do not anticipate declaring any cash dividends to holders of our Common Stock in the foreseeable future.

**Securities Authorized for Issuance Under Equity Compensation Plans**

The following table provides information as of December 31, 2025 with respect to securities that may be issued under our equity compensation plans:

---

| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of<br> Securities to be<br> Issued upon<br> Exercise of<br> Outstanding<br> Options,<br> Warrants and<br> Rights** | **Weighted<br> Average<br> Exercise Price<br> of Outstanding<br> Options,<br> Warrants and<br> Rights** | **Number of<br> Securities<br> Remaining<br> Available for<br> Future Issuance<br> Under Equity<br> Compensation<br> Plans<br> (Excluding<br> Securities<br> Reflected in the<br> First Column) (2)** |
| Equity compensation plans approved by security holders (1) | 162470 | $11298.60 |  |
| Equity compensation plans not approved by security holders | - | - |  |
| Total | 162470 | $11298.60 |  |

---

(1) These securities are available under the 2020 Long-Term Incentive Plan. Incentive awards may include, but are not limited to, Incentive Stock Options, Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Awards, Dividend Equivalent Rights, and Other Awards.

(2) The 2020 Long-Term Incentive Plan includes an "evergreen" provision for calculating the number of shares issuable under the 2020 Long-Term Incentive Plan. In the event that the number of outstanding shares of Common Stock of the Company is increased, the number of authorized shares shall be proportionately adjusted upon the occurrence of such increase such that the quotient of (i) the number of authorized shares immediately prior to such increase and (ii) the number of shares of Common Stock outstanding immediately prior to such increase is equal to the quotient of (x) number of authorized shares immediately after such increase and (y) the number of shares of Common Stock outstanding immediately after such increase (the "*Equitable Adjustment*"); provided, however, that any such Equitable Adjustment is subject to and will take effect following approval of the Equitable Adjustment by the Board.

**BUSINESS**

**Company Information**

We were incorporated under the laws of the State of Delaware in February 1994 as Spatializer Audio Laboratories, Inc., which was a shell company immediately prior to the completion of a "reverse merger" transaction on May 26, 2015, whereby Ameri100 Acquisition, Inc., a Delaware corporation and newly created, wholly owned subsidiary, was merged with and into Ameri and Partners Inc. ("*Ameri and Partners*"), a Delaware corporation (the "*2015 Merger*"). In connection with the 2015 Merger, we changed our name to AMERI Holdings, Inc.

The Ameri business ceased to be part of the Company on December 30, 2020, pursuant to a spin-off transaction. On December 30, 2020, we completed a tender offer to purchase all of the outstanding common shares of Jay Pharma Inc., a Canada corporation, for shares of Company Common Stock or certain preferred stock (the "*Offer*"), and changed our name to "Enveric Biosciences, Inc." Our principal corporate office is located at Enveric Biosciences, Inc., 245 First Street, Riverview II, 18th Floor, Cambridge, MA 02142, telephone (617) 444-8400. Our internet address is https://www.enveric.com/, and the information included in, or linked to our website is not part of this prospectus. We have included our website address in this prospectus solely as a textual reference.

On May 24, 2021, the Company entered into an Amalgamation Agreement (the "*Amalgamation Agreement*") with 1306432 B.C. Ltd., a corporation existing under the laws of the Province of British Columbia and a wholly-owned subsidiary of the Company ("*HoldCo*"), 1306436 B.C. Ltd., a corporation existing under the laws of the Province of British Columbia and a wholly-owned subsidiary of HoldCo ("*Purchaser*"), and MagicMed Industries Inc., a corporation existing under the laws of the Province of British Columbia ("*MagicMed*"), pursuant to which, among other things, the Company, indirectly through Purchaser, acquired all of the outstanding securities of MagicMed in exchange for securities of the Company by way of an amalgamation under the British Columbia Business Corporations Act (the "*Amalgamation*"), upon the terms and conditions set forth in the Amalgamation Agreement, such that, upon completion of the Amalgamation, the amalgamated corporation ("*Amalco*") became an indirect wholly-owned subsidiary of the Company. The Amalgamation was completed on September 16, 2021.

**Business Overview**

We are a biotechnology company focused on developing next-generation, small-molecule neuroplastogenic therapeutics that address unmet needs in psychiatric and neurological disorders. By leveraging a differentiated drug discovery platform and a growing library of patent protected chemical structures, we are advancing a pipeline of novel compounds designed to promote neuroplasticity without hallucinogenic effects. Our lead candidate, EB-003, is the first known compound designed to selectively engage both 5-HT<sub>2A</sub> and 5-HT<sub>1B</sub> receptors with the potential to deliver fast-acting, durable antidepressant and anxiolytic effects with outpatient convenience.

Our lead program, the EVM301 Series, and its lead drug candidate, EB-003, are intended to offer a first-in-class, new approach to the treatment of difficult-to-address mental health disorders, mediated by the promotion of neuroplasticity and without also inducing hallucinations in the patient. EB-003 is a novel derivative of DMT. It is currently advancing through preclinical studies with the aim of initiating first-in-human studies to assess safety and tolerability including non-hallucinogenic properties, followed by clinical trials targeting the treatment of depression or other neuropsychiatric disorders.

We intend to assemble a team of clinical experts and principal investigators with experience across multiple mental health and central nervous system indications to be responsible for the management, monitoring, and integrity of the clinical research. We plan to submit filings including IND applications and, eventually, NDAs to seek approval with the FDA and with responsible regulatory agencies in other jurisdictions, in connection with our product candidates. The selection, timing, duration, and design of any prospective studies are subject to regulatory filings, approval and finalization of commercial plans. Our EB-003 program has completed short-term dose-range finding toxicology studies and is now ready to advance into IND-enabling, GLP compliant safety pharmacology, ADMET and longer-term toxicology studies.

We unveiled an EVM401 Series on February 25, 2025, which is intended to broaden our pipeline with additional non-hallucinogenic molecules and strengthen our ability to target addiction and neuropsychiatric disorders for patients with limited options. While we intend to pursue development of the EVM401 Series, our primary focus is to develop our lead asset EB-003 in the EVM301 Series.

***Neuroplastogens***

 ****

Following the Amalgamation with MagicMed in September 2021, we have continued to pursue the development of MagicMed's proprietary library, the Psybrary™, which we believe will help us to identify and develop the right drug candidates needed to address mental health challenges, including depression, anxiety, and addiction disorders. We synthesize novel phenylalkylamines and indolethylamines, using a mixture of chemistry and synthetic biology, resulting in the expansion of the Psybrary™, which currently includes 20 patent families with claims covering a million potential molecular structures, over one thousand of which we have so far synthesized in sufficient quantities to identify and hundreds of which we have screened for receptor binding and other relevant activities.

The Company developed certain intellectual property rights around the trademark PsyAI™ for potential use. On March 6, 2025, Enveric announced it is soliciting Requests-For Proposals ("*RFPs*") for the license or sale of its PsyAI™ trademark portfolio as a means of maximizing value for an asset which is no longer strategic given the Company's focus on drug development. This limited portfolio of US and Canadian trademark assets is held by its subsidiary, Enveric Biosciences Canada, Inc. Enveric expected the period for RFPs to remain open until August 31, 2025, with a decision to follow within three (3) months thereafter. No satisfactory offer for the PsyAI trademark portfolio was made during the RFP period. Accordingly, the PsyAI trademark remains an asset of Enveric Biosciences Canada, Inc. and is being further evaluated in view of the importance of the term "*AI*" in commerce.

At this stage, we have entered into several non-binding term sheets with strategic partners to out-license certain molecules from the Psybrary™ platform. Enveric Biosciences, Inc. licensed out its EVM201 portfolio to MycoMedica Life Sciences, PBC on November 7, 2024, as announced at https://www.enveric.com/news/enveric-biosciences-signs-out-licensing-agreement-with-mycomedica-life-sciences-for-eb-002/. There are no outstanding term sheets pending for any molecules in the Psybrary platform.

While we intend to pursue development of the EVM401 Series, our primary focus is to develop our lead asset EB-003 in the EVM301 Series. The development status of EB-003 is shown in the table below:

---

| | | | |
|:---|:---|:---|:---|
| **Product Candidates** | **Targeted Indications** | **Status** | **Expected Next Steps** |
| **EB-003**<br> *Psychedelic-inspired drug candidate* | Mental health indication | Preclinical Development | IND Filing |

---

**Intellectual Property**

We are a party to certain license agreements as described below, to build a pipeline of product candidates going forward, we intend to both continue to internally develop new drug candidates with associated intellectual property and to acquire, through in-licensing, additional intellectual property from pharmaceutical and biotechnology companies and research institutions. The in-licensed assets could include both research stage and clinical stage drug candidates.

The current focus of Enveric's intellectual property is in neuroplastogens, including multiple portfolios of psychedelic-inspired compounds and formulations and methods of making, using, and treating mental and neurological disorders. In addition, Enveric has intellectual property related to computer assisted methods of discovering promising novel psychedelic-inspired compounds.

 ****

***Psychedelic-Inspired Compounds***

We own rights to 19 active patent families related to compounds that are phenylalkylamine and indolethylamine derivatives. The 19 patent families are represented by a total of 24 issued United States patents and 59 pending United States and non-United States patent applications for treatment of mental disorders, such as depression, anxiety, addiction, and other neuropsychiatric conditions.

The active patent portfolios include the following published and unpublished applications:

● *Glycosylated Psilocybin Derivatives and Methods of Using (WO 2022/040802)* 

● *Halogenated Psilocybin Derivatives and Methods of Using (WO2022/047579)* 

● *Hydroxylated Psilocybin Derivatives and Methods of Using (WO2022/047580)* 

● *Nitrated Psilocybin Derivatives and Methods of Using (WO 2022/047583)* 

● *Aminated Psilocybin Derivatives and Methods of Using (WO2023/044556)* 

● *Nitrilated Psilocybin Derivatives and Methods of Using (WO2022/104475)* 

● *Carboxylated Psilocybin Derivatives and Methods of Using (WO2022/115944)* 

● *Aldehyde and Ketone Derivatives of Psilocybin and Methods of Using (WO2022/115960)* 

● *Prenylated Psilocybin Derivatives and Methods of Using (WO2022/155751)* 

● *Multi-substituent Psilocybin Derivatives and Methods of Using (WO2022/170438)* 

● *N-Heterocycle Substituted Tryptamine Derivatives and Methods of Using (WO2025/189271)* 

● *C-4 Substituted Tryptamine Derivatives and Methods of Using (WO2023/173227)* 

● *C-4 Carboxylic Acid Substituted Tryptamine Derivatives and Methods of Using (WO2023/173196)* 

● *C-4 Carbonothioate Substituted Tryptamine Derivatives and Methods of Using (WO2023/173197)* 

● *Salts of C4-Carboxylic Acid and C4-Carbonothioate-substituted Tryptamine Derivatives and Methods of Using (WO 2023/173229)* 

● *Fused Heterocyclic Mescaline Derivatives* (*WO2024/026568A1)* 

● *C1-Substituted Isopropylamine Fused Heterocyclic Mescaline Derivatives (WO2024/086933)* 

● *Substituted N- Propylamine Fused Heterocyclic Mescaline Derivatives (WO2024/103185)* 

● *Substituted Ethylamine Fused Heterocyclic Mescaline Derivatives (WO2024/124353)* 

***Cannabinoid Conjugates and Formulations***

We own rights held by our wholly owned subsidiary Akos Biosciences, Inc. to two active patent families related to cannabinoids. Both patent families are licensed out to unrelated third parties. One patent family relates to cannabinoid crème formulations for treatment of radiation dermatitis, is licensed to Aries Science & Technology, LLC, and comprises one United States patent, one Australian patent, and one pending European patent application. See https://www.enveric.com/news/aries-science-technology-and-enveric-biosciences-announce-licensing-agreement/. The other patent family relates to cannabinoid conjugates in combination with COX-2 inhibitors for treatment of pain and joint disease, is licensed under two separate licenses for pharmaceutical and non-pharmaceutical uses to Restoration Biologics, LLC, and comprises three United States patents, and three pending patent applications in the United States and other countries. A portfolio of cannabinoid conjugate technology licensed in from Diverse Biotech, Inc., is sublicensed to Restoration Biologics, LLC as part of the licenses to Restoration Biologics, LLC. See https://www.enveric.com/news/enveric-biosciences-and-restoration-biologics-announce-licensing-agreements-to-treat-joint-disease/

The active cannabinoid patent portfolios include the following published and unpublished applications:

● *Compositions for topical treatment of radiation dermatitis (WO2023154264)* 

● *Cannabinoid Conjugate Molecules (WO2023150057)* 

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***Diverse Biotech, Inc. In-License, sublicensed out to Restoration Biologics, LLC.***

We hold limited rights to patent applications owned by Diverse Biotech, Inc. for the use of cannabinoids in conjugate form with five existing, standard-of-care drugs (celecoxib and four selected steroids) via Diverse Biotech's patent pending conjugate drug delivery platform. Rights granted by Diverse Biotech to Enveric have been assigned to our wholly owned subsidiary, Akos Biosciences, Inc. Those rights extend to all fields of use. The intended target for development of such conjugates is alleviating pain, specifically the pain of osteoarthritis, rheumatoid arthritis, and cancer, with the goal of achieving improved and novel therapeutic outcomes for patients. The license from Diverse Biotech is paid-up and no further liability to Diverse Biotech should arise from any commercialization activities by Akos Biosciences, Inc. or its sublicensees.

The in-licensed Diverse Biotech, Inc. portfolio includes two patent families comprising two issued United States patents and 14 pending United States and non-United States applications. Those patents and applications disclose conjugate chemistry that combines cannabinoids with existing drugs in conjugate form. The issued and pending claims of patents in the Diverse Biotech portfolio all appear to be for different conjugates than those for which the portfolio was originally licensed in from Diverse Biotech. Regardless, we believe that the licensed-in conjugates have the potential for efficacy that will differentiate their performance against target diseases over simple combination therapies of drugs and cannabinoids. The license extends for as long as Akos Biosciences and its sublicensee intend to develop and commercialize the licensed Agents and Products. Issued patents in the Diverse Biotech portfolio may expire as late as 2040.

**Research & Development**

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In view of the urgent need for new and more effective mental health treatments, we intend to combine innovative scientific discoveries and bio-chemical synthesis, along with accelerated clinical development plans to create, develop and progress novel therapies using psychedelic-inspired medications and similar compounds. Our current research and development efforts are focused on developing novel molecules structurally related to certain naturally occurring psychedelics with improved pharmaceutical characteristics. Some of the naturally occurring psychedelic molecules are currently being investigated by researchers around the world as potential treatments for a broad range of psychiatric and neurologic disorders.

***Clinical Studies***

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We are currently pursuing drug discovery and preclinical activities in order to advance a number of novel psychedelic-inspired molecules towards the clinic. Enveric's lead development candidate is EB-003. EB-003 is a novel derivative of DMT. It is the lead drug candidate from the EVM301 Series currently advancing through preclinical studies with the aim of initiating first-in-human studies to assess safety and tolerability including non-hallucinogenic properties, followed by clinical trials targeting the treatment of depression or other neuropsychiatric disorders.

We intend to assemble a team of clinical experts and principal investigators with experience across multiple mental health and central nervous system indications to be responsible for the management, monitoring, and integrity of the clinical research.

We plan to submit filings including Clinical Trial Applications ("*CTA*"), IND applications and, eventually, NDAs to seek approval with the US FDA and with responsible regulatory agencies in other jurisdictions, in connection with our product candidates. The selection, timing, duration, and design of any prospective studies are subject to regulatory filings, approval and finalization of commercial plans.

Our EB-003 program has completed short-term dose-range finding toxicology studies and is now ready to advance into IND-enabling, GLP compliant safety pharmacology, ADMET and longer-term toxicology studies.

***Scientific Advisory Board***

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We have established a scientific advisory board and plan to seek advice and input from these experienced clinical leaders on matters related to our research and development programs. The members of our scientific advisory board consist of experts across a range of key disciplines relevant to our programs. We intend to continue to leverage the broad expertise of our advisors by seeking their counsel on important topics relating to our product development and clinical development programs.

Our scientific advisors are not our employees and do have commitments to, or consulting or advisory contracts with, other entities that may limit their availability to us. In addition, our scientific advisors may have arrangements with other companies to assist those companies in developing products or technologies that may compete with us. All of our scientific advisors are affiliated with other entities and devote a limited portion of their time to us.

Enveric's current scientific advisors are set forth in the table below:

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| | | |
|:---|:---|:---|
| **Name** | **Title** | **Specialization** |
| Maurizio Fava, M.D. | Executive Director of the Clinical Trials Network and Institute | Clinical Research |
| Stephen M. Stahl, M.D., Ph.D. | Director of Psychopharmacology for the California Department of State Hospitals | Clinical Research |
| John Krystal, M.D. | Director of Yale Center for Clinical Investigation | Clinical Research |
| Michael Liebowitz, M.D. | Professor of Psychiatry; Director at Medical Research Network | Clinical Research |

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*Maurizio Fava, M.D.* has served as a Scientific Advisor of Enveric since 2022. Dr. Maurizio Fava is Chair, Mass General Brigham Academic Centers Psychiatry Department, Psychiatrist-in-Chief of the Massachusetts General Hospital ("*MGH*"), executive director of the Clinical Trials Network and Institute, associate dean for clinical and translational research, and the Slater Family Professor of Psychiatry at Harvard Medical School. Dr. Fava is a world leader in the field of depression. He has edited eight books and authored or co-authored more than 900 original articles published in medical journals with international circulation, articles which have been cited more than 95,000 times in the literature and with an H index greater than 150. Dr. Fava founded and was director of MGH's Depression Clinical and Research Program from 1990 until 2014. Under Dr. Fava's direction, the Depression Clinical and Research Program became one of the most highly regarded depression programs in the country, a model for academic programs that link, in a bi-directional fashion, clinical and research work. In 2007, he also founded and is now the executive director of the MGH Psychiatry Clinical Trials Network and Institute, the first academic CRO specialized in the coordination of multi-center clinical trials in psychiatry.

*Stephen M. Stahl, M.D., Ph.D.* has served as a Scientific Advisor of Enveric since 2022. Dr. Stephen Stahl has held faculty positions at Stanford University, the University of California at Los Angeles, the Institute of Psychiatry London, the Institute of Neurology London, and, currently, as Clinical Professor of Psychiatry and Neuroscience at the University of California Riverside, Adjunct Professor of Psychiatry at the University of California San Diego and as Honorary Fellow in Psychiatry at the University of Cambridge. Dr. Stahl serves as editor-in-chief of CNS Spectrums and is Senior Academic Advisor and Director of Psychopharmacology for the California Department of State Hospitals where he has a leadership role in addressing violence and decriminalization of the seriously mentally ill. Author of over 575 articles and chapters with an H index of 69, and more than 2000 scientific presentations and abstracts, Dr. Stahl is an internationally renowned clinician, researcher, and teacher in psychiatry with subspecialty expertise in psychopharmacology. Dr. Stahl has written over 50 textbooks and edited 15 others, including the best-selling and award-winning textbook, Stahl's Essential Psychopharmacology, now in its fifth edition, and the best-selling and award-winning clinical manual, Essential Psychopharmacology Prescriber's Guide, now in its seventh edition.

*John Krystal, M.D.* has served as a Scientific Advisor of Enveric since 2022. Dr. John Krystal is the Robert L. McNeil, Jr., Professor of Translational Research; Professor of Psychiatry, Neuroscience, and Psychology; Chair of the Department of Psychiatry at Yale University; and Chief of Psychiatry and Behavioral Health at Yale-New Haven Hospital. He is a graduate of the University of Chicago, Yale School of Medicine, and the Yale Psychiatry Residency Training Program. He has published extensively on neurobiology and treatment of schizophrenia, alcoholism, PTSD, and depression. Notably, his laboratory discovered the rapid antidepressant effects of ketamine in humans. Dr. Krystal directs/co-directs the Yale Center for Clinical Investigation (CTSA), NIAAA Center for the Translational Neuroscience of Alcoholism, and Clinical Neuroscience Division of the National Center for PTSD (VA). He is a member of the U.S. National Academy of Medicine; co-director of the Neuroscience Forum of the U.S. National Academies of Sciences, Engineering, and Medicine; Fellow of the American Association for the Advancement of Science; and editor of Biological Psychiatry (IF=13.382). Previously, Dr. Krystal chaired the NIMH Board of Scientific Counselors and has served as a member of the NIMH National Mental Health Advisory Council and the NIAAA National Alcohol Advisory Council. He also previously served as the president of the American College of Neuropsychopharmacology and the International College of Neuropsychopharmacology.

 

*Michael Liebowitz, M.D.* has served as a Scientific Advisor of Enveric since 2022. Dr. Michael Liebowitz is a Professor of Psychiatry at Columbia University and New York State Psychiatric Institute ("*NYSPI*") and is currently Director at Medical Research Network where he is engaged in clinical trials for depression, anxiety, binge eating, ADHD, PTSD, and borderline personality disorders. Dr. Liebowitz completed his fellowship in psychopharmacology at the Depression Evaluation Service at NYSPI, where he helped develop and validate the DSM criteria for atypical depression. Dr. Liebowitz established the Anxiety Disorders Clinic at NYSPI, the first research clinic to specialize in anxiety disorders in the United States. Over the next two decades, Dr. Liebowitz and colleagues helped refine treatments for panic disorder, broadened the diagnostic criteria and established medication treatment for social anxiety disorder, and collaborated in clinical trials comparing medications and behavioral treatments for several anxiety disorders. Dr. Liebowitz developed the Liebowitz Social Anxiety Scale which has been the primary outcome measure for several registration programs in social anxiety disorder and is used worldwide as a research and clinical measure.

***Academic Partners***

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We have also established relationships with certain academic partners, who we believe have the potential to accelerate our product development, market entry, data collection, analysis and advancement of clinical trials.

Our primary academic partner is the University of Calgary which brings excellence into advancing brain and mental health research and education.

**Competition**

The biotechnology and pharmaceutical industries are characterized by rapidly advancing technologies, intense competition, and a strong emphasis on proprietary products. While we believe that our scientific knowledge and technology and development experience provide us with competitive advantages, we face potential competition from many different sources, including major pharmaceutical, specialty pharmaceutical and biotechnology companies, academic institutions, governmental 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.

We intend to focus on the development of novel and viable psychedelic-inspired drug candidates for mental illnesses and unmet medical needs, and partner with pharmaceutical and other drug development and biotechnology companies in developing and commercializing psychedelic-inspired medicines for diverse psychological and neuropsychiatric indications, which will be fundamentally composed of the psychedelic-inspired drug candidates contained in the Psybrary™. While we believe that our technology, knowledge and experience as well as the scientific resources at our disposal provide us with significant competitive advantages, we face potential competition from many different sources. Any product candidates we successfully identify will compete not only with existing therapies but also new therapies that may become available in the future.

Our commercial opportunities could be reduced or eliminated if our competitors develop and commercialize medicines that are safer, more effective, have fewer or less severe side effects, are more convenient or are less expensive than any product candidates that we may develop. Our competitors also may obtain approval from the FDA or other regulatory agencies for their medicines more rapidly than us, which could result in our competitors establishing a strong market position before we are able to enter the market.

Regarding our Psybrary™ and the intellectual property kept and developed therein, our success depends on our ability to protect our intellectual property and our ability to achieve and maintain key partnerships aimed at the development, licensing and marketing of psychedelic-inspired medicines without infringing on the proprietary rights of others. Patent positions within the pharmaceutical field can be highly uncertain and involve complex legal, scientific and factual questions for which important legal principles remain unresolved. Patents issued to us may be challenged, invalidated or circumvented.

**Government Regulation and Product Approvals**

Pharmaceutical companies are subject to extensive regulation by the federal government, principally by the FDA under the FDCA and, to a lesser extent, by state and local governments. Before our prescription products may be marketed in the U.S., they must be approved by the FDA for commercial distribution. Certain OTC products must comply with applicable FDA regulations, known as OTC Monographs, in order to be marketed, but do not have the benefit of FDA review and approval before marketing. We are also subject to regulation under federal, state and local laws, including requirements regarding occupational safety, laboratory practices, environmental protection and hazardous substance control, and may be subject to other present and future local, state, federal and foreign regulations. We cannot predict the extent to which we may be affected by legislative and other regulatory developments concerning our products and the healthcare industry in general.

The FDCA and other federal and state statutes and regulations govern the testing, manufacture, quality control, export and import, labeling, storage, record keeping, approval, pricing, advertising, promotion, sale and distribution of pharmaceutical products. Noncompliance with applicable requirements both before and after approval, can subject us, our third party manufacturers and other collaborative partners to administrative and judicial sanctions, such as, among other things, warning letters, fines and other monetary payments, recall or seizure of products, criminal proceedings, suspension or withdrawal of regulatory approvals, interruption or cessation of clinical trials, total or partial suspension of production or distribution, injunctions, limitations on or the limitation of claims we can make for our products, and refusal of the government to enter into supply contracts for distribution directly by governmental agencies, or delay in approving or refusal to approve new drug applications. The FDA also has the authority to revoke or withhold approvals of new drug applications.

FDA approval is required before any "new drug," can be marketed. Our products are new drugs and require prior FDA approval. Such approval must be based on extensive information and data submitted in a NDA, including, but not limited to, adequate and well controlled laboratory and clinical investigations to demonstrate the safety and effectiveness of the drug product for its intended use(s) as well as the manufacturing suitability of the product. In addition to providing required safety and effectiveness data for FDA approval, a drug manufacturer's practices and procedures must comply with cCMPs, which apply to manufacturing, receiving, holding and shipping, and include, among other things, demonstration of product purity, consistent manufacturing and quality and at least six months of data supporting product expiration dating based on clinical registration batches. Accordingly, manufacturers must continue to expend time, money and effort in all applicable areas relating to quality assurance and regulatory compliance, including production and quality control to comply with cCMPs. Failure to so comply risks delays in approval of drug products and possible FDA enforcement actions, such as an injunction against shipment of products, the seizure of non-complying products, criminal prosecution and/or any of the other possible consequences described above. We are subject to periodic inspection by the FDA and the DEA", which inspections may or may not be announced in advance.

The intellectual property kept and developed in our Psybrary™ is focused solely on developing and commercializing non-hallucinogenic synthetic derivatives of psychedelic substances. While we use psychedelic-inspired compounds and classic psychedelics as our starting point for our research and identification of compounds, we do not have any direct or indirect involvement in the illegal selling, production or distribution of any substances in the jurisdictions in which we operate. Enveric is a neuro-pharmaceutical scientific company and as such we do not advocate for the legalization of psychedelic substances nor do we deal with psychedelic substances except within laboratory and clinical trial settings conducted within approved regulatory frameworks. Our products will not be commercialized prior to applicable regulatory approval and this approval will only be granted if clinical evidence of safety and efficacy for the specific intended use is successfully developed.

Successful execution of our strategy is in part contingent upon compliance with regulatory requirements enacted by governmental authorities and obtaining regulatory approvals for the development and license of our psychedelic-inspired drug candidates. The psychedelic-inspired medicine industry is a new and emerging industry with ambiguous existing regulations and uncertainty as to future regulations; we cannot predict the impact of the ever-evolving compliance regime in respect of this industry. The impact of compliance regimes, any delays in obtaining, or failure to obtain regulatory approvals may significantly delay or impact our development of markets, our business, psychedelic-inspired medicines, and licensing initiatives and could have a material adverse effect on our business, financial condition and operating results.

***FDA New Drug Approval Process***

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In the U.S., pharmaceutical products are subject to extensive regulation by the FDA. The FDCA and other federal and state statutes and regulations, govern, among other things, the research, development, testing, manufacture, storage, recordkeeping, approval, labeling, promotion and marketing, distribution, post-approval monitoring and reporting, sampling, and import and export of pharmaceutical products. Failure to comply with applicable U.S. requirements may subject a company to a variety of administrative or judicial sanctions, such as imposition of clinical holds, FDA refusal to approve pending NDAs, warning letters, product recalls, product seizures, total or partial suspension of production or distribution, injunctions, fines, refusals of government contracts, restitution, disgorgement, civil penalties and criminal prosecution.

Pharmaceutical product development in the U.S. typically involves pre-clinical laboratory and animal tests and the submission to the FDA of an IND application, which must become effective before clinical testing may commence. For commercial approval, the sponsor must submit adequate tests by all methods reasonably applicable to show that the drug is safe for use under the conditions prescribed, recommended or suggested in the proposed labeling. The sponsor must also submit substantial evidence, generally consisting of adequate, well-controlled clinical trials to establish that the drug will have the effect it purports or is represented to have under the conditions of use prescribed, recommended or suggested in the proposed labeling. In certain cases, the FDA may determine that a drug is effective based on one clinical study plus confirmatory evidence. Satisfaction of FDA pre-market approval requirements typically takes many years and the actual time required may vary substantially based upon the type, complexity and novelty of the product or disease.

Pre-clinical studies include evaluation of pharmacology, as well as animal studies to assess the safety and efficacy of the product candidate. The conduct of some of the pre-clinical studies must comply with federal regulations and requirements, including the FDA's GLP regulations and the U.S. Department of Agriculture's (the "*USDA*") regulations implementing the Animal Welfare Act. The results of pre-clinical studies are submitted to the FDA as part of an IND application along with other information, including information about CMC, and proposed clinical trial protocols. Long-term pre-clinical tests, such as animal tests of reproductive toxicity and carcinogenicity, may continue after the IND application is submitted.

A 30-day waiting period after the submission of each IND application is required prior to the commencement of clinical testing in humans. If the FDA has not imposed a clinical hold on the IND application or otherwise commented or questioned the IND application within this 30-day period, the clinical trial proposed in the IND application may begin.

Clinical trials involve the administration of the clinical protocols defined in the IND to healthy volunteers or patients under the supervision of a qualified investigator. Clinical trials must be conducted: (i) in compliance with federal regulations, (ii) in compliance with GCP, an international standard meant to protect the rights and health of patients and to define the roles of clinical trial sponsors, administrators and monitors, and (iii) under protocols detailing the objectives of the trial, the parameters to be used in monitoring safety and the effectiveness criteria to be evaluated. Each protocol involving testing on U.S. subjects and subsequent protocol amendments must be submitted to the FDA as part of the IND application.

The FDA may order the temporary, or permanent, discontinuation of a clinical trial at any time or impose other sanctions if it believes that the clinical trial either is not being conducted in accordance with FDA requirements or presents an unacceptable risk to the clinical trial subjects. The trial protocol and informed consent information for subjects in clinical trials must also be submitted to an IRB for approval. An IRB may also require the clinical trial at the site to be halted, either temporarily or permanently, for failure to comply with the IRB's requirements or may impose other conditions.

Clinical trials to support NDAs for marketing approval are typically conducted in three sequential phases, but the phases may overlap. In general, in Phase 1, the initial introduction of the drug into healthy human subjects or patients, the drug is tested to assess metabolism, pharmacokinetics, pharmacological actions, side effects associated with increasing doses and, if possible, early evidence on effectiveness. Phase 2 usually involves trials in a limited patient population to determine the effectiveness of the drug for a particular indication, dosage tolerance and optimum dosage, and to identify common adverse effects and safety risks.

If a compound demonstrates evidence of effectiveness and an acceptable safety profile in Phase 2 evaluations, Phase 3 trials are undertaken to obtain the additional information about clinical efficacy and safety in a larger number of patients, typically at geographically dispersed clinical trial sites, to permit the FDA to evaluate the overall benefit-risk relationship of the drug and to provide adequate information for the labeling of the drug. In most cases, the FDA requires two adequate and well-controlled Phase 3 clinical trials to demonstrate the efficacy of the drug. The FDA may, however, determine that a drug is effective based on one clinical study plus confirmatory evidence. Only a small percentage of investigational drugs complete all three phases and obtain marketing approval. In some cases, the FDA may require post-market studies, known as Phase 4 studies, to be conducted as a condition of approval in order to gather additional information on the drug's effect in various populations and any side effects associated with long-term use. Depending on the risks posed by the drugs, other post-market requirements may be imposed.

After completion of the required clinical testing, an NDA is prepared and submitted to the FDA. The FDA approval of the NDA is required before marketing of the product may begin in the U.S. The NDA must include the results of all pre-clinical, clinical, and other testing and a compilation of data relating to the pharmacology and CMC of the product candidate. The cost of preparing and submitting an NDA is substantial. Under federal law, the submission of most NDAs is additionally subject to a substantial application user fee.

The FDA has 60 days from its receipt of an NDA to determine whether the application will be accepted for filing based on the agency's threshold determination that it is sufficiently complete to permit substantive review. Once the submission is accepted for filing, the FDA begins an in-depth review. Under the statute and implementing regulations, the FDA has 180 days (the initial review cycle) from the date of filing to issue either an approval letter or a complete response letter, unless the review period is adjusted by mutual agreement between the FDA and the applicant or as a result of the applicant submitting a major amendment. In practice, the performance goals established pursuant to the Prescription Drug User Fee Act have effectively extended the initial review cycle beyond 180 days. The FDA's current performance goals call for the FDA to complete review of 90 percent of standard (non-priority) NDAs within 10 months of receipt and within six months for priority NDAs, but two additional months of review are added to standard and priority NDAs for a new molecular entity ("*NME*").

The FDA may also refer applications for novel drug products, or drug products that present difficult questions of safety or efficacy, to an advisory committee, which is typically a panel that includes clinicians and other experts, for review, evaluation and a recommendation as to whether the application should be approved. The FDA is not bound by the recommendation of an advisory committee, but it generally follows such recommendations. Before approving an NDA, the FDA will typically inspect one or more clinical sites to assure compliance with GCP. Additionally, the FDA will inspect the facility or the facilities at which the drug is manufactured. The FDA will not approve the product unless compliance with current cCMP is satisfactory and the NDA contains data that provide substantial evidence that the drug is safe and effective in the indication studied.

After the FDA evaluates the NDA and the manufacturing facilities, it issues either an approval letter or a complete response letter. A complete response letter generally outlines the deficiencies in the submission and may require substantial additional testing, or information, in order for the FDA to reconsider the application. If, or when, those deficiencies have been addressed to the FDA's satisfaction in a resubmission of the NDA, the FDA will issue an approval letter. The FDA has committed to reviewing 90 percent of resubmissions within two to six months depending on the type of information included.

An approval letter authorizes commercial marketing of the drug with specific prescribing information for specific indications. As a condition of NDA approval, the FDA may require a REMS to help ensure that the benefits of the drug outweigh the potential risks. REMS can include medication guides, communication plans for health care professionals, and elements to assure safe use ("*ETASU*"). ETASU can include, but are not limited to, special training or certification for prescribing or dispensing, dispensing only under certain circumstances, special monitoring, and the use of patient registries. The requirement for a REMS can materially affect the potential market and profitability of the drug. Moreover, product approval may require substantial post-approval testing and surveillance to monitor the drug's safety or efficacy. Once granted, product approvals may be withdrawn if compliance with regulatory standards is not maintained or problems are identified following initial marketing.

***Disclosure of Clinical Trial Information***

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Sponsors of clinical trials of certain FDA-regulated products, including prescription drugs, are required to register and disclose certain clinical trial information on a public website maintained by the U.S. National Institutes of Health. Information related to the product, patient population, phase of investigation, study sites and investigator, and other aspects of the clinical trial is made public as part of the registration. Sponsors are also obligated to disclose the results of these trials after completion. Disclosure of the results of these trials can be delayed for up to two years if the sponsor certifies that it is seeking approval of an unapproved product or that it will file an application for approval of a new indication for an approved product within one year. Competitors may use this publicly available information to gain knowledge regarding the design and progress of our development programs.

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***Special Protocol Assessment***

A company may reach an agreement with the FDA under the Special Protocol Assessment, or "SPA", process as to the required design and size of clinical trials intended to form the primary basis of an efficacy claim. According to its performance goals, the FDA is supposed to evaluate the protocol within 45 days of the request to assess whether the proposed trial is adequate, and that evaluation may result in discussions and a request for additional information. An SPA request must be made before the proposed trial begins, and all open issues must be resolved before the trial begins. If a written agreement is reached, it will be documented and made part of the administrative record. Under the FDCA and FDA guidance implementing the statutory requirement, an SPA is generally binding upon the FDA except in limited circumstances, such as if the FDA identifies a substantial scientific issue essential to determining safety or efficacy after the study begins, public health concerns emerge that were unrecognized at the time of the protocol assessment, the sponsor and the FDA agree to the change in writing, or if the study sponsor fails to follow the protocol that was agreed upon with the FDA.

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***Advertising and Promotion***

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Pre-approval promotion of investigational drug candidates is prohibited by the FDA. Therefore, sponsors must ensure that any pre-approval communications disseminated about its drug candidates do not state or imply that such candidates have been proven safe or effective for the applicable use(s) or that they have been approved for commercialization in the United States. Further, once an NDA for a given candidate is approved, if ever, the product will be subject to certain post-approval requirements. For instance, the FDA closely regulates the post-approval marketing and promotion of drugs.

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Drugs may be marketed only for the approved indications and in accordance with the provisions of the approved labeling. Changes to some of the conditions established in an approved application, including changes in indications, labeling, or manufacturing processes or facilities, require submission and FDA approval of a new NDA or NDA supplement before the change can be implemented. An NDA supplement for a new indication typically requires clinical data similar to that in the original application, and the FDA uses the same procedures and actions in reviewing NDA supplements as it does in reviewing NDAs.

***Adverse Event Reporting and cCMP Compliance***

Adverse event reporting and submission of periodic reports is required following FDA approval of an NDA. The FDA also may require post-marketing testing, known as Phase 4 testing, may require under a REMS special communication regarding the safety of the drug or heightened surveillance to monitor the effects of an approved product, or the FDA may place conditions on an approval that could restrict the distribution or use of the product. In addition, quality-control, drug manufacture, packaging, and labeling procedures must continue to conform to cCMP, after approval. Drug manufacturers and certain of their subcontractors are required to register their establishments with the FDA and certain state agencies. Registration with the FDA subjects entities to periodic unannounced inspections by the FDA, during which the agency inspects manufacturing facilities to assess compliance with cCMP. Accordingly, manufacturers must continue to expend time, money and effort in the areas of production and quality control to maintain compliance with cCMP. Regulatory authorities may withdraw product approvals or request product recalls if a company fails to comply with regulatory standards, if it encounters problems following initial marketing or if previously unrecognized problems are subsequently discovered.

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***Pediatric Exclusivity and Pediatric Use***

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The Best Pharmaceuticals for Children Act ("*BPCA*") provides NDA holders a six-month period of exclusivity attached to any other exclusivity listed with the FDA — patent or non-patent — for a drug, if certain conditions are met. Conditions for pediatric exclusivity include a determination by the FDA that information relating to the use of a new drug in the pediatric population may produce health benefits in that population; a written request by the FDA for pediatric studies; and agreement by the applicant to perform the requested studies and the submission to the FDA, completion of the studies in accordance with the written request, and the acceptance by the FDA, of the reports of the requested studies within the statutory time frame. Applications under the BPCA are treated as priority applications.

In addition, under the Pediatric Research Equity Act ("*PREA*") NDAs or supplements to NDAs must contain data to assess the safety and effectiveness of the drug for the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric subpopulation for which the drug is safe and effective, unless the sponsor has received a deferral or waiver from the FDA. Unless otherwise required by regulation, PREA does not apply to any drug for an indication for which orphan designation has been granted. The sponsor or the FDA may request a deferral of pediatric studies for some or all of the pediatric subpopulations. A deferral may be granted for several reasons, including a finding that the drug is ready for approval for use in adults before pediatric studies are complete or that additional safety or effectiveness data need to be collected before the pediatric studies begin. Under PREA, the FDA must send a noncompliance letter requesting a response within 45 days to any sponsor that fails to submit the required assessment, keep a deferral current or fails to submit a request for approval of a pediatric formulation.

***Controlled Substances***

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The CSA and its implementing regulations establish a "closed system" of regulations for controlled substances. The CSA imposes registration, security, recordkeeping and reporting, storage, manufacturing, distribution, importation and other requirements under the oversight of the DEA. The DEA is the federal agency responsible for regulating controlled substances, and requires those individuals or entities that manufacture, import, export, distribute, research, or dispense controlled substances to comply with the regulatory requirements in order to prevent the diversion of controlled substances to illicit channels of commerce.

The DEA categorizes controlled substances into one of five schedules — Schedule I, II, III, IV or V — with varying qualifications for listing in each schedule. Schedule I substances by definition have a high potential for abuse, have no currently accepted medical use in treatment in the U.S., and lack accepted safety for use under medical supervision. Marijuana and psychedelics such as psilocybin, DMT, mescaline and MDMA are currently Schedule I controlled substances, which means that no preclinical or clinical studies of product candidates containing these substances may be conducted in the United States without the required DEA registration(s) and related approvals, as applicable. Pharmaceutical products having a currently accepted medical use that are otherwise approved for marketing may be listed as Schedule II, III, IV or V substances, with Schedule II substances presenting the highest potential for abuse and physical or psychological dependence, and Schedule V substances presenting the lowest relative potential for abuse and dependence.

Facilities that manufacture, distribute, import, or export any controlled substance must register annually with the DEA. The DEA registration is specific to the particular location, activity(ies) and controlled substance schedule(s). For example, separate registrations are required for importation and manufacturing activities, and each registration authorizes which schedules of controlled substances the registrant may handle. However, certain coincidental activities are permitted without obtaining a separate DEA registration, such as distribution of controlled substances by the manufacturer that produces them.

The DEA inspects all manufacturing facilities to review security, recordkeeping, reporting, and handling prior to issuing a controlled substance registration. The specific security requirements vary by the type of business activity and the schedule and quantity of controlled substances handled. The most stringent requirements apply to manufacturers of Schedules I and Schedule II substances. Required security measures commonly include background checks on employees and physical control of controlled substances through storage in approved vaults, safes and cages, and through use of alarm systems and surveillance cameras. An application for a manufacturing registration as a bulk manufacturer (not a dosage form manufacturer or a repacker/relabeler) for a Schedule I or II substance must be published in the Federal Register, and is open for 60 days to permit interested persons to submit comments, objections or requests for a hearing. A copy of the notice of the Federal Register publication is simultaneously forwarded by DEA to all those registered, or applicants for registration, as bulk manufacturers of that substance.

Once registered, manufacturing facilities must maintain records documenting the manufacture, receipt and distribution of all controlled substances. Manufacturers must submit periodic reports to the DEA of the distribution of Schedules I and II controlled substances, Schedule III narcotic substances, and other designated substances. Registrants must also report any controlled substance thefts or significant losses, and must obtain authorization to destroy or dispose of controlled substances.

As with applications for registration as a bulk manufacturer, an application for an importer registration for a Schedule I or II substance must also be published in the Federal Register, which remains open for 30 days for comments. Imports of Schedules I and II controlled substances for commercial purposes are generally restricted to substances not already available from a domestic supplier or where there is not adequate competition among domestic suppliers. In addition to an importer or exporter registration, importers and exporters must obtain a permit for every import or export of a Schedules I and II substance or Schedules III, IV and V narcotic, and submit import or export declarations for Schedules III, IV and V non-narcotics. In some cases, Schedule III non-narcotic substances may be subject to the import/export permit requirement, if necessary to ensure that the U.S. complies with its obligations under international drug control treaties.

For drugs manufactured in the U.S., the DEA establishes annually an aggregate quota for the amount of substances within Schedules I and II that may be manufactured or produced in the U.S. based on the DEA's estimate of the quantity needed to meet legitimate medical, scientific, research and industrial needs.

The states also maintain separate controlled substance laws and regulations, including licensing, recordkeeping, security, distribution, and dispensing requirements. State Authorities, including Boards of Pharmacy, regulate use of controlled substances in each state. Failure to maintain compliance with applicable requirements, particularly as manifested in the loss or diversion of controlled substances, can result in enforcement action that could have a material adverse effect on our business, operations and financial condition. The DEA may seek civil penalties, refuse to renew necessary registrations, or initiate proceedings to revoke those registrations. In certain circumstances, violations could lead to criminal prosecution.

***Europe/Rest of World Government Regulation***

 

In addition to regulations in the U.S., we are and will be subject, either directly or through our distribution partners, to a variety of regulations in other jurisdictions governing, among other things, clinical trials and any commercial sales (including pricing and reimbursement) and distribution of our product candidates, if approved.

Whether or not we obtain FDA approval for a product, we must obtain the requisite approvals from regulatory authorities in non-U.S. countries prior to the commencement of clinical trials or marketing of the product in those countries.

In the European Union, medicinal products are subject to extensive pre- and post-marketing regulation by regulatory authorities at both the European Union and national levels. Additional rules also apply at the national level to the manufacture, import, export, storage, distribution and sale of controlled substances. In many European Union member states the regulatory authority responsible for medicinal products is also responsible for controlled substances. Responsibility is, however, split in some member states. Generally, any company manufacturing or distributing a medicinal product containing a controlled substance in the European Union will need to hold a controlled substances license from the competent national authority and will be subject to specific record-keeping and security obligations. Separate import or export certificates are required for each shipment into or out of the member state.

***Clinical Trials and Marketing Approval***

Whether or not we obtain FDA approval for a product, we would need to obtain the necessary approvals by the comparable regulatory authorities of foreign countries before we can commence clinical trials or marketing of the product in those countries. The approval process varies from country to country and can involve additional product testing and additional administrative review periods. The time required to obtain approval in other countries might differ from and be longer than that required to obtain FDA approval. Regulatory approval in one country does not ensure regulatory approval in another, but a failure or delay in obtaining regulatory approval in one country may negatively impact the regulatory process in others.

Certain countries outside of the U.S. have a process that requires the submission of a clinical trial application much like an IND application prior to the commencement of human clinical trials. In Europe, for example, a CTA must be submitted to the competent national health authority and to independent ethics committees in each country in which a company intends to conduct clinical trials. Once the CTA is approved in accordance with a country's requirements and a company has received favorable ethics committee approval, clinical trial development may proceed in that country.

The requirements and process governing the conduct of clinical trials, product licensing, pricing, and reimbursement vary from country to country, even though there is already some degree of legal harmonization in the European Union member states resulting from the national implementation of underlying European Union legislation. In all cases, the clinical trials must be conducted in accordance with the International Conference on Harmonization ("*ICH*") guidelines on GCP and other applicable regulatory requirements.

To obtain regulatory approval to place a drug on the market in European Union countries, Enveric must submit a marketing authorization application. This application is similar to the NDA in the U.S., with the exception of, among other things, country-specific document requirements. All application procedures require an application in the common technical document ("*CTD*") format, which includes the submission of detailed information about the manufacturing and quality of the product, and nonclinical and clinical trial information. Drugs can be authorized in the European Union by using (i) the centralized authorization procedure, (ii) the mutual recognition procedure, (iii) the decentralized procedure, or (iv) national authorization procedures.

The European Commission created the centralized procedure for the approval of human drugs to facilitate marketing authorizations that are valid throughout the European Union and, by extension (after national implementing decisions) in Iceland, Liechtenstein and Norway, which, together with the European Union Member States, comprise the European Economic Area ("*EEA*"). Applicants file marketing authorization applications with the European Medicines Agency ("*EMA*"), where they are reviewed by a relevant scientific committee, in most cases the Committee for Medicinal Products for Human Use (the "*CHMP*"). The EMA forwards CHMP opinions to the European Commission, which uses them as the basis for deciding whether to grant a marketing authorization. This procedure results in a single marketing authorization granted by the European Commission that is valid across the European Union, as well as in Iceland, Liechtenstein and Norway. The centralized procedure is compulsory for human drugs that are: (i) derived from biotechnology processes, such as genetic engineering, (ii) contain a new active substance indicated for the treatment of certain diseases, such as HIV/AIDS, cancer, diabetes, neurodegenerative diseases, autoimmune and other immune dysfunctions and viral diseases, (iii) officially designated "orphan drugs" (drugs used for rare human diseases), and (iv) advanced-therapy medicines, such as gene-therapy, somatic cell-therapy or tissue-engineered medicines. The centralized procedure may at the voluntary request of the applicant also be used for human drugs that do not fall within the above-mentioned categories if the CHMP agrees that the human drug (a) contains a new active substance not yet approved on November 20, 2005; (b) constitutes a significant therapeutic, scientific or technical innovation, or (c) authorization under the centralized procedure is in the interests of patients at the European Union level.

Under the centralized procedure in the European Union, the maximum time frame for the evaluation of a marketing authorization application by the EMA is 210 days (excluding clock stops, when additional written or oral information is to be provided by the applicant in response to questions asked by the CHMP), with adoption of the actual marketing authorization by the European Commission thereafter.

Accelerated evaluation might be granted by the CHMP in exceptional cases, when a medicinal product is expected to be of a major public health interest from the point of view of therapeutic innovation, defined by three cumulative criteria: the seriousness of the disease to be treated; the absence of an appropriate alternative therapeutic approach, and anticipation of exceptional high therapeutic benefit. In this circumstance, EMA ensures that the evaluation for the opinion of the CHMP is completed within 150 days and the opinion issued thereafter.

For those medicinal products for which the centralized procedure is not available, the applicant must submit marketing authorization applications to the national medicines regulators through one of three procedures: (i) the mutual recognition procedure (which must be used if the product has already been authorized in at least one other European Union member state, and in which the European Union member states are required to grant an authorization recognizing the existing authorization in the other European Union member state, unless they identify a serious risk to public health), (ii) the decentralized procedure (in which applications are submitted simultaneously in two or more European Union member states), or (iii) national authorization procedures (which results in a marketing authorization in a single European Union member state).

***Mutual Recognition Procedure***

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The mutual recognition procedure ("*MRP*") for the approval of human drugs is an alternative approach to facilitate individual national marketing authorizations within the European Union. Fundamentally, the MRP may be applied for all human drugs for which the centralized procedure is not obligatory. The MRP is applicable to the majority of conventional medicinal products, and must be used if the product has already been authorized in one or more European Union member states.

The MRP functions by building on an already-existing marketing authorization in a member state of the European Union which is used as a reference in order to obtain marketing authorizations in other European Union member states. Under the MRP, if a marketing authorization for a drug already exists in one or more member states of the European Union and subsequently marketing authorization applications are made in other European Union member states by referring to the initial marketing authorization. The member state in which the marketing authorization was first granted will then act as the reference member state. The member states where the marketing authorization is subsequently applied for act as concerned member states. The concerned member states are required to grant an authorization recognizing the existing authorization in the reference member state, unless they identify a serious risk to public health.

The MRP is based on the principle of the mutual recognition by European Union member states of their respective national marketing authorizations. Based on a marketing authorization in the reference member state, the applicant may apply for marketing authorizations in other member states. In such case, the reference member state shall update its existing assessment report about the drug in 90 days. After the assessment is completed, copies of the report are sent to all member states, together with the approved summary of product characteristics, labeling and package leaflet. The concerned member states then have 90 days to recognize the decision of the reference member state and the summary of product characteristics, labeling and package leaflet. National marketing authorizations shall be granted within 30 days after acknowledgement of the agreement.

Should any European Union member state refuse to recognize the marketing authorization by the reference member state, on the grounds of potential serious risk to public health, the issue will be referred to a coordination group. Within a time frame of 60 days, member states shall, within the coordination group, make all efforts to reach a consensus. If this fails, the procedure is submitted to an EMA scientific committee for arbitration. The opinion of this EMA Committee is then forwarded to the European Commission, for the start of the decision-making process. As in the centralized procedure, this process entails consulting various European Commission Directorates General and the Standing Committee on Human Medicinal Products.

***Data Exclusivity***

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In the European Union, marketing authorization applications for generic medicinal products do not need to include the results of pre-clinical and clinical trials, but instead can refer to the data included in the marketing authorization of a reference product for which regulatory data exclusivity has expired. If a marketing authorization is granted for a medicinal product containing a new active substance, that product benefits from eight years of data exclusivity, during which generic marketing authorization applications referring to the data of that product may not be accepted by the regulatory authorities, and a further two years of market exclusivity, during which such generic products may not be placed on the market. The two-year period may be extended to three years if during the first eight years a new therapeutic indication with significant clinical benefit over existing therapies is approved.

***Orphan Medicinal Products***

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The EMA's Committee for Orphan Medicinal Products ("*COMP*") may recommend orphan medicinal product designation to promote the development of products that are intended for the diagnosis, prevention or treatment of life-threatening or chronically debilitating conditions affecting not more than five in 10,000 persons in the European Union. Additionally, designation is granted for products intended for the diagnosis, prevention or treatment of a life-threatening, seriously debilitating or serious and chronic condition and when, without incentives, it is unlikely that sales of the product in the European Union would be sufficient to justify the necessary investment in developing the medicinal product. The COMP may only recommend orphan medicinal product designation when the product in question offers a significant clinical benefit over existing approved products for the relevant indication. Following a positive opinion by the COMP, the European Commission adopts a decision granting orphan status. The COMP will reassess orphan status in parallel with EMA review of a marketing authorization application and orphan status may be withdrawn at that stage if it no longer fulfills the orphan criteria (for instance because in the meantime a new product was approved for the indication and no convincing data are available to demonstrate a significant benefit over that product). Orphan medicinal product designation entitles a party to financial incentives such as reduction of fees or fee waivers and ten years of market exclusivity is granted following marketing authorization. During this period, the competent authorities may not accept or approve any similar medicinal product, unless it offers a significant clinical benefit. This period may be reduced to six years if the orphan medicinal product designation criteria are no longer met, including where it is shown that the product is sufficiently profitable not to justify maintenance of market exclusivity.

***Pediatric Development***

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In the European Union, companies developing a new medicinal product must agree to a Pediatric Investigation Plan ("*PIP*") with the EMA and must conduct pediatric clinical trials in accordance with that PIP unless a waiver applies, for example, because the relevant disease or condition occurs only in adults. The marketing authorization application for the product must include the results of pediatric clinical trials conducted in accordance with the PIP, unless a waiver applies, or a deferral has been granted, in which case the pediatric clinical trials must be completed at a later date. Products that are granted a marketing authorization on the basis of the pediatric clinical trials conducted in accordance with the PIP are eligible for a six-month extension of the protection under a supplementary protection certificate (if the product covered by it qualifies for one at the time of approval). This pediatric reward is subject to specific conditions and is not automatically available when data in compliance with the PIP are developed and submitted.

If we fail to comply with applicable foreign regulatory requirements, we may be subject to, among other things, fines, suspension of clinical trials, suspension or withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution.

In addition, most countries are parties to the Single Convention on Narcotic Drugs 1961, which governs international trade and domestic control of narcotic substances. Countries may interpret and implement their treaty obligations in a way that creates a legal obstacle to us obtaining marketing approval for our product candidates in those countries. These countries may not be willing or able to amend or otherwise modify their laws and regulations to permit our product candidates to be marketed, or achieving such amendments to the laws and regulations may take a prolonged period of time. In that case, we would be unable to market our product candidates in those countries in the near future or perhaps at all.

**Employees**

We have consolidated our employee base to save capital and focus on development of our leading candidates EB-003. As of the date of this report, we employ five full-time employees and one part-time employee. We also work with scientific advisors, consultants and service providers, mainly through academic institutions and contract research organizations.

We have never had a work stoppage and none of our employees are covered by collective bargaining agreements or represented by a labor union. We believe that we have good relationships with our employees.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*References to the "Company," "Enveric" "our," "us," or "we" in this section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations of Enveric" refer to Enveric Biosciences, Inc. The following discussion and analysis of our financial condition and results of operations should be read together with our financial statements and related notes appearing elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements involving risks and uncertainties and should be read together with the "Risk Factors" and the "Cautionary Statement Regarding Forward-Looking Statements" sections of this prospectus. Such risks and uncertainties could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.*

 

**Business Overview**

We are a biotechnology company focused on developing next-generation, small-molecule neuroplastogenic therapeutics that address unmet needs in psychiatric and neurological disorders. By leveraging a differentiated drug discovery platform and a growing library of patent protected chemical structures, we are advancing a pipeline of novel compounds designed to promote neuroplasticity without hallucinogenic effects. Our lead candidate, EB-003, is the first known compound designed to selectively engage both 5-HT<sub>2A</sub> and 5-HT<sub>1B</sub> receptors with the potential to deliver fast-acting, durable antidepressant and anxiolytic effects with outpatient convenience.

Our lead program, the EVM301 Series, and our lead drug candidate, EB-003, are intended to offer a first-in-class, new approach to the treatment of difficult-to-address mental health disorders, mediated by the promotion of neuroplasticity and without also inducing hallucinations in the patient. EB-003 is a novel derivative of DMT. It is currently advancing through preclinical studies with the aim of initiating first-in-human studies to assess safety and tolerability including non-hallucinogenic properties, followed by clinical trials targeting the treatment of depression or other neuropsychiatric disorders.

We intend to assemble a team of clinical experts and principal investigators with experience across multiple mental health and central nervous system indications to be responsible for the management, monitoring, and integrity of the clinical research. We plan to submit filings including IND applications and, eventually, NDAs to seek approval with the FDA and with responsible regulatory agencies in other jurisdictions, in connection with our product candidates. The selection, timing, duration, and design of any prospective studies are subject to regulatory filings, approval and finalization of commercial plans. Our EB-003 program has completed short-term dose-range finding toxicology studies and is now ready to advance into IND-enabling, GLP compliant safety pharmacology, ADMET and longer-term toxicology studies.

We unveiled the EVM401 Series on February 25, 2025, which is intended to broaden its pipeline with additional non-hallucinogenic molecules and strengthen our ability to target addiction and neuropsychiatric disorders for patients with limited options. While we intend to pursue development of the EVM401 Series, our primary focus is to develop our lead asset EB-003 in the EVM301 Series.

**Recent Developments**

***At-the-Market Offering***

On April 9, 2025, we entered into an At the Market Offering Agreement ("*ATM Agreement*") with H.C. Wainwright & Co., LLC, acting as sales agent (the "*Sales Agent*"). As of September 30, 2025 the Company had issued 110,242 shares under the ATM Agreement for net cash proceeds of $1,636,799. On February 6, 2026, we filed a prospectus supplement so that we may additionally issue and sell our Common Stock having an aggregate sales proceeds of up to $1,346,000 from time to time pursuant to the ATM Agreement.

***Registered Direct Offering and Concurrent Private Placement***

 

On January 27, 2026, we entered into a securities purchase agreement with certain institutional investors (each, an "*Investor*"), pursuant to which we agreed to issue and sell to the Investors in a registered direct offering (the "*Registered Direct Offering*"), an aggregate of 328,802 shares (the "*RD Shares*") of our Common Stock at a price of $4.41 per share for gross proceeds of approximately $1.5 million before the deduction of placement agent fees and offering expenses. The closing of the Registered Direct Offering occurred on January 28, 2026.

In the concurrent Private Placement we also agreed to issue and sell to the Investors the Series G Warrants to purchase up to an aggregate of 328,802 shares of Common Stock and the Series H Warrants purchase up to an aggregate of 328,802 shares of Common Stock, each at an exercise price of $4.16 per share.

We issued H.C. Wainwright & Co., LLC, as placement agent, warrants to purchase up to 23,016 shares of Common Stock with an exercise price of $5.5125 per share. We also incurred legal and other offering-related fees in connection with this offering.

***December 2025 Inducement Warrant Transaction***

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On December 11, 2025, we entered into warrant exercise inducement offer letters (the "*December Inducement Letters*") with certain institutional investors that held certain outstanding warrants to purchase up to an aggregate of 426,390 shares originally issued in February 2025 and September 2025, having exercise prices of $36.00 and $10.98 per share, respectively (collectively, the "*December Existing Warrants*").

Pursuant to the December Inducement Letters, the investors agreed to exercise for cash their December Existing Warrants at a reduced exercise price of $7.05 per share and pay a purchase price of $0.125 per share in consideration for the Company's agreement to issue in a private placement (x) new Series E Common Stock Purchase Warrants to purchase up to 426,390 shares of Common Stock and (y) new Series F Common Stock Purchase Warrants to purchase up to 426,390 shares of Common Stock. We received aggregate gross proceeds of approximately $3.1 million from the exercise of the December Existing Warrants by the investors and payment of the purchase price of $0.125 per share, before deducting placement agent fees and other offering expenses payable by us. The closing of the transactions occurred on December 12, 2025.

We issued H.C. Wainwright & Co., LLC, as placement agent, warrants to purchase up to 29,847 shares of Common Stock with an exercise price of $9.125 per share. We also incurred legal and other offering-related fees in connection with this warrant inducement transaction.

***Nasdaq Compliance on Minimum Bid Price Deficiency***

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On November 12, 2025, we received a letter from the Nasdaq Listing Qualifications Department of Nasdaq notifying us that we regained compliance with the minimum bid price requirement set forth in in Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market. On October 22, 2025, the Company received written notice from the Listing Qualifications Department of Nasdaq notifying the Company that, because the closing price for the Company's Common Stock had fallen below $1.00 per share for 30 consecutive trading days, the Company was no longer in compliance with the requirement for continued listing on Nasdaq under Nasdaq Listing Rule 5550(a)(2). On October 22, 2025, the Company had received written notice from the Listing Qualifications Department of Nasdaq notifying the Company that, because the closing price for the Company's Common Stock had fallen below $1.00 per share for 30 consecutive trading days, the Company was no longer in compliance with the requirement for continued listing on Nasdaq under Nasdaq Listing Rule 5550(a)(2).

***October 2025 Reverse Stock Split***

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On October 23, 2025, we effected a 1-for-12 reverse stock split (the "October 2025 Reverse Stock Split"), which began trading on a split-adjusted basis on October 28, 2025, pursuant to which every 12 shares of our issued and outstanding shares of common stock were reclassified as one share of common stock. The October 2025 Reverse Stock Split had no impact on the par value of our common stock or the authorized number of shares of common stock. Unless otherwise indicated, all share and per share information prior to the October 2025 Reverse Stock Split date of October 28, 2025 in this prospectus supplement are retroactively adjusted to reflect the Reverse Stock Split.

***Nasdaq Compliance on Stockholders' Equity Deficiency***

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On October 23, 2025, we notified Nasdaq that we believed we had regained compliance with the stockholders' equity requirements set forth in Nasdaq Listing Rule 5550(b)(1) for continued listing on The Nasdaq Capital Market. On October 24, 2025, we received a letter from Nasdaq determining that we regained conditional compliance subject to evidencing compliance upon filing our next periodic report. As detailed in our Quarterly Report for the quarter ended September 30, 2025, filed with the SEC on November 14, 2025, we reported stockholders' equity in excess of the required $2.5 million and, as a result, regained compliance with the stockholders' equity requirement. On August 26, 2025, the Company had received a deficiency letter from the Listing Qualifications Department of Nasdaq notifying the Company that it was not in compliance with the minimum stockholders' equity requirement for continued listing on Nasdaq pursuant to Nasdaq Listing Rule 5550(b)(1).

***September 2025***  ***Inducement Warrant Transaction***

On September 17, 2025, the Company entered into warrant exercise inducement offer letters (the "*September Inducement Letters*") with certain Holders of the Company's Series A Warrants and Series B Warrants originally issued in February 2025 (the "*September Existing Warrants*"), which closed on September 18, 2025. Pursuant to the September Inducement Letters, the Holders agreed to exercise for cash their September Existing Warrants to purchase 202,083 shares of the Company's Common Stock, in the aggregate, at a reduced exercise price of $10.98 per share (from an original exercise price of $36.00 per share), in exchange for the Company's agreement to issue new warrants Series C Warrants and Series D Warrants to purchase up to 404,166 shares of the Company's Common Stock under each series, each at an exercise price of $10.98 per share.

The inducement warrant transaction closed on September 18, 2025. The Company received aggregate gross proceeds of $2,218,873 from the exercise of the Existing Warrants by the Holders. We issued H.C. Wainwright & Co., LLC, as placement agent warrants to purchase up to 14,146 shares of Common Stock with an exercise price of $13.7256 per share. The grant date fair value of these placement agent warrants was estimated to be $90,000 on September 18, 2025 and was charged to additional paid-in capital as issuance costs. The Company also incurred legal and other offering-related fees of $334,659, which were similarly charged to additional paid-in capital.

**Results of Operations**

The following table sets forth information comparing the components of net loss for the three months ended September 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **For the Three Months Ended September 30,** | **For the Three Months Ended September 30,** |
|  | **2025** | **2024** |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | $1431157 | $1195661 |
| &nbsp;&nbsp;&nbsp;Research and development | 402417 | 802717 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 40369 | 84814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | 1873943 | 2083192 |
| **Loss from operations** | (1873943) | (2083192) |
| **Other income (expense)** |  |  |
| &nbsp;&nbsp;&nbsp;Other expense |  | (623) |
| &nbsp;&nbsp;&nbsp;Interest income (expense), net | 274 | (217) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other income (expense)** | 274 | (840) |
| **Net loss before income taxes** | $(1873669) | $(2084032) |
| Income tax expense | - | - |
| **Net loss** | $(1873669) | $(2084032) |

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***General and Administrative Expenses***

Our general and administrative expenses increased to $1,431,157 for the three months ended September 30, 2025 from $1,195,661 for the three months ended September 30, 2024, an increase of $235,496, or 20%. This change was primarily driven by increases in marketing expense of $155,134, Delaware Franchise Tax of $103,100, and legal expense of $39,634, offset by decreases in stock based compensation expense of $65,326.

***Research and Development Expenses***

Our research and development expenses for the three months ended September 30, 2025 were $402,417 as compared to $802,717 for the three months ended September 30, 2024, for a decrease of $400,300, or approximately 50%. This change was primarily driven by a decrease in CRO costs of $264,384, salaries and wages of $148,103, research costs of $128,027, and product development costs of $63,858, partially offset by an increase in consulting fees of $197,858.

***Depreciation and Amortization Expense***

Depreciation and amortization expense for the three months ended September 30, 2025 was $40,369 as compared to $84,814 for the three months ended September 30, 2024, with a decrease of $44,445, or approximately 52%, due to full amortization of the Company's intangible assets during the first quarter of 2025.

The following table sets forth information comparing the components of net loss for the nine months ended September 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | $4010313 | $4329565 |
| &nbsp;&nbsp;&nbsp;Research and development | 2408839 | 1873873 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 161373 | 255002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | 6580525 | 6458440 |
| **Loss from operations** | (6580525) | (6458440) |
| **Other income (expense)** |  |  |
| &nbsp;&nbsp;&nbsp;Other income | 2565 | 39386 |
| &nbsp;&nbsp;&nbsp;Interest income (expense), net | 144 | 444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other income (expense)** | 2709 | 39830 |
| **Net loss before income taxes** | $(6577816) | $(6418610) |
| Income tax expense | - | (1731) |
| **Net loss** | $(6577816) | $(6420341) |

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***General and Administrative Expenses***

Our general and administrative expenses decreased to $4,010,313 for the nine months ended September 30, 2025 from $4,329,565 for the nine months ended September 30, 2024, a decrease of $319,252, or 7%. This change was primarily driven by decreases in director fees of $150,252, stock compensation expense of $177,643, insurance fees of $76,089, and accounting fees of $62,226, partially offset by an increase in marketing expense of $192,763.

***Research and Development Expenses***

Our research and development expense for the nine months ended September 30, 2025 was $2,408,839 as compared to $1,873,873 for the nine months ended September 30, 2024 with an increase of $534,966, or approximately 29%. This increase was primarily driven by an increase in consulting fees of $1,334,313, and a prior year gain that was realized during the nine months ended September 30, 2024 related to the Australian R&D tax incentive of $291,439, offset by a decrease in CRO costs of $508,774, salaries and wages of $442,648, lab costs of $49,169, product development costs of $30,974, research costs of $45,146, and rent expense of $28,332.

***Depreciation and Amortization Expense***

Depreciation and amortization expense for the nine months ended September 30, 2025 was $161,373 as compared to $255,002 for the nine months ended September 30, 2024, for a decrease of $93,629, or approximately 37%, primarily related to full amortization of the Company's intangible assets in the first quarter of 2025.

**Going Concern, Liquidity and Capital Resources**

The Company has incurred losses since inception resulting in an accumulated deficit of $112,652,321 as of September 30, 2025 and further losses are anticipated in the development of its business. For the nine months ended September 30, 2025, the Company had a loss from operations of $6,580,525. Further, the Company had operating cash outflows of $6,356,680 for the nine months ended September 30, 2025. Since inception, being a research and development company, the Company has not yet generated revenue and the Company has incurred continuing losses from its operations. The Company's operations have been funded principally through the issuance of debt and equity. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the date of the registration statement for which this prospectus forms a part.

In assessing the Company's ability to continue as a going concern, the Company monitors and analyzes its cash and its ability to generate sufficient cash flow in the future to support its operating and capital expenditure commitments. At September 30, 2025, the Company had cash of $3,757,594 and working capital of $3,259,655. The Company's current cash on hand is insufficient to satisfy its operating cash needs for the 12 months following the filing of the registration statement for which this prospectus forms a part. These conditions raise substantial doubt regarding the Company's ability to continue as a going concern for a period of one year after the date of the registration statement for which this prospectus forms a part. Management's plan to alleviate the conditions that raise substantial doubt include raising additional working capital through public or private equity or debt financings or other sources, and may include additional collaborations with third parties as well as disciplined cash spending. Adequate additional financing may not be available to us on acceptable terms, or at all. Should the Company be unable to raise sufficient additional capital, the Company may be required to undertake cost-cutting measures including delaying or discontinuing certain operating activities.

As a result of these factors, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern for a period of one year after the date of the registration statement for which this prospectus forms a part. The Company's unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Cash Flows**

Since inception, we have primarily used our available cash to fund our product development and operations expenditures.

***Cash Flows for the Nine Months Ended September 30, 2025 and 2024***

The following table sets forth a summary of cash flows for the years presented:

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| Net cash used in operating activities | $(6356680) | $(6414590) |
| Net cash provided by financing activities | 7890361 | 7210386 |
| Effect of foreign exchange rate on changes on cash | (17113) | 27910 |
| Net increase in cash | $1516568 | $823706 |

---

*Operating Activities*

Net cash used in operating activities was $6,356,680 during the nine months ended September 30, 2025, which consisted primarily of a net loss adjusted for non-cash items of $5,960,602, a decrease in prepaid expenses and other current assets of $132,795, a decrease in related party payable of $232,891 and a decrease in accounts payable and accrued liabilities of $295,982.

Net cash used in operating activities was $6,414,590 during the nine months ended September 30, 2024, which consisted primarily of a net loss adjusted for non-cash items of $5,114,009, an increase in prepaid expenses and other current assets of $3,674, and a decrease in accounts payable and accrued liabilities of $1,296,907.

*Financing Activities*

Net cash provided by financing activities was $7,890,361 during the nine months ended September 30, 2025, which consisted of $4,244,467 in net proceeds from a best efforts public offering of Common Stock, Pre-Funded Warrants, and Series A and Series B Warrants (the "*Offering*"), $2,009,095 in proceeds from the exercise of warrants, and $1,636,799 in net proceeds from the sale of Common Stock through the ATM Agreement.

Net cash provided by financing activities was $7,210,386 during the nine months ended September 30, 2024, which consisted of $1,804,819 from the net proceeds received from the stock subscription receivable, $2,676,980 for the exercise of the inducement warrants, $2,290,186 for the Common Stock sold under a distribution agreement, net of offering costs, and $599,862 for the Common Stock sold under the Purchase Agreement, offset by $161,461 offering costs previously accrued for the inducement warrants.

**Critical Accounting Estimates**

Our financial statements have been prepared in accordance with U.S. GAAP, which requires us to make estimates, assumptions and judgments that affect the reported amount of assets, liabilities, costs and expenses and related disclosures. Our critical accounting estimates are those estimates that involve a significant level of uncertainty at the time the estimate was made, and changes in them have had or are reasonably likely to have a material effect on our financial condition or results of operations. Accordingly, actual results could differ materially from our estimates. We base our estimates on past experience and other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis. Our most critical accounting estimate includes determining the accruals associated with third party providers supporting research and development efforts.

There have been no material changes to our critical accounting estimates as compared to the critical accounting estimates disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

**CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS**

Other than the director and executive officer compensation arrangements discussed in the "*Executive and Director Compensation*" section in this registration statement, since January 1, 2025 we have not, and there has not currently been proposed, any transaction to which:

● the amounts involved exceeded or will exceed the lesser of (i) $120,000, or (ii) 1% of the average of the Company's total assets at December 31, 2025 and December 31, 2024; and

● any director, executive officer, holder of more than 5% of our voting securities, whom we refer to as our principal stockholders, or affiliates or immediate family members of our directors, executive officers and principal stockholders, had or will have a material interest.

**Policies and Procedures for Related Party Transaction**

Our Audit Committee is responsible for reviewing and approving all transactions in which we are a participant and in which any parties related to us, including our executive officers, directors, beneficial owners of more than 5% of our voting securities, immediate family members of the foregoing persons, and any other persons whom our Board determines may be considered related parties, has or will have a direct or indirect material interest and that involve consideration received or receivable by these persons in excess of the lesser of (i) $120,000, and (ii) one percent of the average of the Company's total assets at year end for the last two completed fiscal years. In reviewing and approving these transactions, our Audit Committee obtains, or directs our management to obtain on its behalf, all information that the Audit Committee believes to be material to a review of the transaction prior to its approval. It is contemplated that no related person transaction will be entered into prior to the completion of these procedures; however, where permitted, a related person transaction may be ratified upon completion of these procedures.

**MANAGEMENT**

**Executive Officers and Directors**

The following table provides information regarding our executive officers and directors with their respective ages as of February 4, 2026:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| Joseph Tucker, Ph.D. | 57 | Chief Executive Officer and Director |
| Peter Facchini, Ph.D. | 62 | Chief Innovation Officer |
| Kevin Coveney | 62 | Chief Financial Officer |
| Michael D. Webb | 67 | Chairman of the Board |
| George Kegler | 70 | Director |
| Frank Pasqualone | 70 | Director |
| Marcus Schabacker, M.D., Ph.D. | 62 | Director |
| Sheila DeWitt, Ph.D. | 65 | Director |

---

*Joseph Tucker, Ph.D*. has served as our Chief Executive Officer and Director since September 16, 2021. Prior to joining the Company, Dr. Tucker was the Chief Executive Officer, President and Director of MagicMed Industries Inc., from its founding in May 2020 until its acquisition by the Company in September 2021. Dr. Tucker was the Executive Chairman of Willow Biosciences Inc., a TSX-listed public company, from April 2019 to March 2020. From March 2014 until April 2019, Dr. Tucker was the Chief Executive Officer, President and Director of Epimeron Inc., which amalgamated with BioCan Technologies Inc. in April 2019 to become Willow Biosciences, Inc. Between 2007 and 2014, Dr. Tucker held President, Chief Executive Officer, and Chief Financial Officer roles in several other private biotechnology companies including VirTech Bio, Inc., Taiga Bioactives Inc., SolAeroMed, Inc., and Pharmavation, Inc. From January 2001 until January 2007, Dr. Tucker was Chief Executive Officer, President and Director of Stem Cell Therapeutics, a TSX-listed public biotechnology company. Prior to leading biotechnology companies, Dr. Tucker was a healthcare analyst with two investment banks and also served in a technology commercialization capacity for a university technology transfer office. Dr. Tucker received his Ph.D. in Biochemistry and Molecular Biology from the University of Calgary. Dr. Tucker's relevant industry experience qualifies him to be a director of the Company.

*Peter Facchini, Ph.D.,* has served as our Chief Innovation Officer since joining the Company in September 2021. Dr. Facchini has been a Professor of Plant Biochemistry in the Department of Biological Sciences at the University of Calgary since 1995, during which he held the Canada Research Chair in Plant Metabolic Processes Biotechnology, was a 2019 Parex Resources Innovation Fellow, received the 2021 Faculty of Science Innovation Excellence Award, and was a finalist for the 2022 Alberta Science, Technology and Leadership (ASTech) award. Prior to joining the Company, Dr. Facchini co-founded and was the Chief Scientific Officer of Epimeron Inc., Willow Biosciences Inc. and MagicMed Industries Inc. Dr. Facchini has published over 175 peer-reviewed scientific papers and co-invented innovations covered by more than 50 patents. Dr. Facchini is an international leader in the fields of natural product metabolic biochemistry and biotechnology.

*Kevin Coveney* has served as our Chief Financial Officer since March 13, 2023. Mr. Coveney brings to the Company over 30 years of experience in biotechnology finance and accounting. Mr. Coveney is the founder of Coveney Capital Advisors and has provided fractional CFO and consulting services to Progressive Therapeutics, Inc. from September 2022 to March 2023 and Power of Patients, LLC, from October 2022 to March 2023, respectively. Mr. Coveney previously held the position of chief financial officer at Memgen, Inc. from November 2021 to June 2022 and at Q-State Biosciences, Inc. from April 2020 to April 2021. Prior to his chief financial officer position, Mr. Coveney served as Senior Vice President of Finance, HR & IT of Vedanta Biosciences, Inc. from November 2018 to February 2020. He held various senior positions at Berg Health LLC from September 2015 to November 2018. Mr. Coveney was an Audit Partner at Braver PC (now CBIZ) from July 2007 through October 2012. Mr. Coveney holds a Bachelor of Science degree in Management with a Concentration in Accounting from the University of Massachusetts and served as a non-commissioned officer in the United States Coast Guard.

*Michael D. Webb* has served as a non-employee director of the Company since June 13, 2022 and has served as Chairman of the Board since November 2022. Mr. Webb is the President and Chief Executive Officer of Epion Therapeutics, Inc. and a member of its board of directors, positions he has held since 2017. He has served as a director at Videokawa since 2018, and at DeuteRx, LLC since 2012. He has been a founder and Chief Executive Officer of biotechnology companies, taking them from seed round funding through venture financing and Nasdaq IPO. Mr. Webb began his career in Booz, Allen & Hamilton's Chicago office, specializing in healthcare and life sciences and subsequently at CIBA-Geigy (now Novartis) where he was last a Senior Vice President. Mr. Webb holds Bachelor's degrees in Biochemistry and Economics from the University of Kansas, summa cum laude and an MA in International Relations from Sussex University in the UK. In addition, he holds an MBA degree from Kellogg School of Management with a concentration in healthcare management. He is a past Chairman of the Massachusetts Biotechnology Council. Mr. Webb's relevant industry experience qualifies him to be a director of the Company.

*George Kegler* has served as a non-employee director of the Company since December 30, 2020. Mr. Kegler was employed by Mallinckrodt Pharmaceuticals from January 2013 to June 2019, serving as the Executive Vice President and Chief Financial Officer, Interim from December 2018 to May 2019, where he had responsibility for the global finance function and was a member of the executive committee, Vice President Finance from November 2016 to November 2018, President Specialty Generics (Interim) and Vice President Finance from July 2016 to October 2016, and Vice President, Finance from January 2013 to June 2016. He has served in various consulting roles since June 2019, which ended in March 2020. Mr. Kegler has 40 years of experience in financial planning and analysis, corporate finance, controllership and business development. Previously Mr. Kegler served as the Vice President of Commercial Finance for various businesses within Mallinckrodt and was also interim President of the company's specialty generics business. Prior to joining Mallinckrodt, he was the Chief Financial Officer for Convatec, a private equity-owned company that was purchased from Bristol-Myers Squibb. He worked in various finance roles within Bristol-Myers Squibb including commercial, international, technical operations, research & development as well as the assistant controller of internal controls. Mr. Kegler holds a bachelor's degree in accounting from the University of Missouri, an MBA from Saint Louis University and completed the Certified Public Accountant exam in Missouri. Mr. Kegler's experience as an officer at several companies and extensive knowledge of corporate finance qualify him to be a director of the Company.

*Frank Pasqualone* has served as a non-employee director of the Company since July 13, 2022. Mr. Pasqualone has served as Senior Vice President, Chief Business Officer of Theravance Biopharma, Inc. since November 2020 and joined Theravance Biopharma as Senior Vice President, Operations in June 2014 in connection with its spin-off from Innoviva. Mr. Pasqualone held the position of Senior Vice President, Operations at Innoviva since January 2014. From 2010 to 2012, he served as President of Intercontinental Region: Latin America, Middle East and Africa and also as President of Southern Europe from 2009 to 2010, at Bristol-Myers Squibb (BMS). Over a 25-year period with BMS, Mr. Pasqualone held senior management positions in the U.S. and globally. In the U.S., he was responsible for the Oncology/Virology business and led the marketing group in the Diabetes business. After leaving Bristol-Myers Squibb and prior to joining Theravance, Mr. Pasqualone was self-employed as a part-time consultant. Since October 2018, Mr. Pasqualone has served as a member of the board of trustees at Saint Francis University. Mr. Pasqualone holds an M.B.A. from University of Dayton and a B.S. in Marketing from Bowling Green State University in Ohio. Mr. Pasqualone's relevant industry experience as an officer at several companies qualifies him to be a director of the Company.

*Marcus Schabacker*, M.D., Ph.D. has served as a non-employee director of the Company since December 30, 2020. Since January 2018, Dr. Schabacker has served as President and Chief Executive Officer of the ECRI Institute, a non-profit organization with 500 employees and an operating budget of $80 million focusing on advancing evidenced-based, effective healthcare globally. Prior to joining ECRI, Dr. Schabacker worked at Baxter Healthcare Corporation, serving as Corporate Vice President and Chief Scientific Officer from July 2015 to May 2017, chairman of the executive quality council from March 2014 to May 2017, Chief Scientific Officer, Medical Products from July 2014 to July 2015, and Vice President, R&D, Medical Products from March 2011 to July 2014. During his clinical years, and his time as an industry thought leader, Dr. Schabacker was focused on patient safety and enhancing patient care. For over a decade Dr. Schabacker has served on numerous boards of small and midsize companies and organizations, providing management with guidance and expertise to strategically accelerate growth and to build successful and sustainable high performing management teams. Dr. Schabacker's medical background and relevant research and development experience qualify him to be a director of the Company.

*Sheila DeWitt, Ph.D.* has served as a non-employee director of the Company by the Board since May of 2024. Dr. DeWitt has provided research and development services as an advisory consultant to the Company since May 2022. These services are provided as needed on an hourly basis. Since December of 2012, Dr. DeWitt has served as the President, Chief Executive Officer, and the Chair of the Board of Directors of DeuteRx, LLC. She has also served as a Director at Neuromity Therapeutics, Inc. from November 2021 to December 2023, and at RIFFIT, Inc. from March 2019 to November 2022. She also served as the President, Chief Executive Officer, and Chair of the Board of Directors at Deuteria Pharmaceuticals, Inc. from December 2010 to December 2012. Dr. DeWitt is a life sciences executive and serial entrepreneur with more than 35 years of experience in pharmaceutical and biotechnology companies including leading the start-up or turnaround of biotechnology companies or business units, orchestrating M&A transactions, and managing global R&D organizations. She earned her B.A. in Chemistry from Cornell University in 1982 and Ph.D. in Synthetic Organic Chemistry from Duke University in 1986 and has received numerous honors including American Chemical Society ("*ACS*") Hathryn C. Hach Award for Entrepreneurial Success (2025), ACS Gertrude Elion Medicinal Chemistry Award (2025), ACS Medicinal Chemistry Hall of Fame (2025) and Famous Organic Chemists ACS Organic Division (2019),. Dr. DeWitt's relevant industry experience qualifies her to be a director of the Company.

**Family Relationships**

There are no family relationships among any of our directors or executive officers.

**Composition of the Board**

Our A&R Certificate of Incorporation, as amended, and Amended and Restated Bylaws, as amended ("*A&R Bylaws*"), provide that our Board will consist of such number of directors as determined from time to time by resolution adopted by our Board. The size of our Board is currently fixed at six directors. Subject to any rights applicable to any then-outstanding shares of preferred stock, any vacancies or newly created directorships resulting from an increase in the authorized number of directors may be filled by a majority of the directors then in office. Stockholders vote to elect directors with a term expiring each year at our annual meeting.

**Director Term Limits**

The Board does not currently have a term limit policy limiting the number of years a director may serve on the Board.

**Board Leadership Structure**

Currently, the positions of Chair of the Board and Chief Executive Officer of the Company are held by separate persons. The Board does not have a policy as to whether the roles of Chair of the Board and Chief Executive Officer should be separate or combined; however, in the event that they are combined, the independent directors may appoint an independent director to serve in a lead capacity in specific circumstances. The lead independent director would then coordinate the activities of the other non-management directors and perform such other duties and responsibilities as the Board may determine. Our Board currently believes the division of responsibility between separate individuals serving as Chair and Chief Executive Officer, respectively, is an effective approach for addressing the risks we face and increasing management accountability and improving the ability of the Board to monitor whether management's actions are in the best interests of the Company and its stockholders. This approach is subject to the evolving needs of the Company, as the goal of the Board is to ensure the best possible management structure for the Company at any given time.

**Director Independence**

We are currently listed on the Nasdaq Stock Market and therefore rely on the definition of independence set forth in the Nasdaq Listing Rules ("*Nasdaq Rules*"). Under the Nasdaq Rules, a director will only qualify as an "independent director" if, in the opinion of our Board, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Based upon information requested from and provided by each director concerning his background, employment, and affiliations, including family relationships, the Board has determined that except for Joseph Tucker, who serves as the Chief Executive Officer of the Company, and Dr. Sheila DeWitt, who acts as an advisory consultant to the Company, Mr. Webb, Mr. Kegler, Mr. Pasqualone, and Dr. Schabacker have no relationships with us that would interfere with the exercise of independent judgment and are "independent directors" as that term is defined in the Nasdaq Rules.

**Committees of the Board**

The Board delegates various responsibilities and authority to different Board committees. Committees regularly report on their activities and actions to the full Board. Currently, the Board has established an Audit Committee, a Compensation Committee, a Nominating and Governance Committee, and a Science and Technology Committee. Committee assignments are re-evaluated annually. Each of these standing committees operates under a charter that has been approved by our Board. The current charter of each of the Audit Committee, Compensation Committee, and Nominating and Governance Committee is available on our website at www.enveric.com in the "Corporate Governance" section under "Investors."

The following table sets forth the membership of each of the Board committees listed above.

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Audit Committee** | **Compensation**<br> **Committee** | **Nominating and**<br> **Governance**<br> **Committee** |
| George Kegler | Chair | X | X |
| Frank Pasqualone | X | Chair | Chair |
| Michael Webb | X | X |  |
| Marcus Schabacker, M.D., Ph.D. |  |  | X |

---

Our Science and Technology Committee, meant to oversee ongoing updates to R&D operations, is comprised of Marcus Schabacker (Chair), Michael D. Webb, and Sheila DeWitt.

*Audit Committee*

The members of our Audit Committee currently are George Kegler (Chair), Frank Pasqualone, and Michael Webb. Our Board has determined that all members of the Audit Committee (i) are independent directors (as currently defined in Rule 5605(a)(2) of the Nasdaq Listing Rules); (ii) meet the criteria for independence set forth in Rule 10A-3(b)(1) under the Exchange Act; (iii) have not participated in the preparation of the financial statements of the Company or any current subsidiary of the Company at any time during the past three years; and (iv) are able to read and understand fundamental financial statements. Our Board has also reviewed the education, experience, and other qualifications of each member of the Audit Committee. Based upon that review, our Board has determined that Mr. Kegler qualifies as an "audit committee financial expert" as defined in Item 407 of Regulation S-K.

The Audit Committee is governed by a written charter approved by the Board and provides assistance to the Board in fulfilling the Board's responsibility to the Company's stockholders relating to the Company's accounting and financial reporting practices and system of internal control, the audit process, the quality and integrity of the Company's financial reporting, and the Company's process for monitoring compliance with laws and regulations and its code of conduct and ethics. The functions of the Audit Committee include, among other things:

● Approving and retaining the independent auditors to conduct the annual audit of our financial statements;

● Reviewing the proposed scope and results of the audit;

● Reviewing and pre-approving audit and non-audit fees and services;

● Reviewing accounting and financial controls with the independent auditors and our financial and accounting staff;

● Reviewing and approving transactions between us and our directors, officers and affiliates;

● Recognizing and preventing prohibited non-audit services;

● Establishing procedures for complaints received by us regarding accounting matters;

● Overseeing internal audit functions, if any; and

● Preparing the report of the audit committee that the rules of the SEC require to be included in our annual meeting proxy statement.

The Audit Committee is also responsible for overseeing the Company's cybersecurity prevention efforts and incident response processes. Both our independent registered public accounting firm and internal financial personnel regularly meet privately with our Audit Committee and have unrestricted access to the Audit Committee.

The Audit Committee met four times during the year ended December 31, 2025.

*Compensation Committee*

The members of our Compensation Committee currently are Frank Pasqualone (Chair), George Kegler, and Michael Webb. Our Board has determined that Mr. Pasqualone, Mr. Kegler, and Mr. Webb are independent in accordance with Nasdaq Rules.

The Compensation Committee is governed by a written charter approved by the Board. Under its charter, the Compensation Committee may form, and delegate authority to, subcommittees, as appropriate. The Compensation Committee will annually review and approve corporate goals and objectives relevant to Chief Executive Officer compensation, evaluate the Chief Executive Officer's performance in light of those goals and objectives, and recommend to the Board the Chief Executive Officer's compensation levels based on this evaluation. The Compensation Committee will also annually review and make recommendations to the Board with respect to compensation of our non-employee directors and executive officers other than the Chief Executive Officer. The charter of the Compensation Committee also permits the Compensation Committee to engage outside consultants and to consult with our human resources department when appropriate to assist in carrying out its responsibilities. The Compensation Committee may also obtain advice and assistance from internal or external legal, accounting, or other advisers selected by the Compensation Committee. The functions of the Compensation Committee include, among other things:

● Reviewing and recommending the compensation arrangements for management, including the compensation for our president and chief executive officer;

● Establishing and reviewing general compensation policies with the objective to attract and retain superior talent, to reward individual performance and to achieve our financial goals;

● Administering our stock incentive plans and recommending grants under the same to the Board; and

● Preparing the report of the compensation committee that the rules of the SEC may require to be included in our annual meeting proxy statement.

The Compensation Committee met one time during the year ended December 31, 2025.

*Nominating and Governance Committee*

The members of our Nominating and Governance Committee currently are Frank Pasqualone (Chair), Marcus Schabacker, M.D., Ph.D. and George Kegler. The Board has determined that Mr. Pasqualone, Dr. Schabacker and Mr. Kegler are independent in accordance with Nasdaq Rules.

The Nominating and Governance Committee is governed by a written charter approved by the Board. The functions of the Nominating and Governance Committee include, among other things:

● Evaluating the current composition, organization and governance of the Board and its committees, and making recommendations for changes thereto;

● Reviewing each director and nominee annually;

● Determining desired Board member skills and attributes and conducting searches for prospective members accordingly;

● Evaluating nominees, and making recommendations to the Board concerning the appointment of directors to Board committees, the selection of Board committee chairs, proposal of the slate of directors for election to the Board, and the termination of membership of individual directors in accordance with the Board's governance principles;

● Overseeing the process of succession planning for the Chief Executive Officer and, as warranted, other senior officers of the Company;

● Developing, adopting and overseeing the implementation of a code of business conduct and ethics; and

● Administering the annual Board performance evaluation process.

The Nominating and Governance Committee met one time during the year ended December 31, 2025.

**The Board's Role in Risk Oversight**

The Board, as a whole and also at the committee level, has an active role in managing enterprise risk. The members of the Board participate in our risk oversight assessment by receiving regular reports from members of senior management on areas of material risk to us, including operational, financial, legal and regulatory, and strategic and reputational risks. The Compensation Committee is responsible for overseeing the management of risks relating to our executive compensation plans and arrangements. The Audit Committee oversees management of financial risks and cybersecurity risks, as well as our policies with respect to risk assessment and risk management. The Nominating and Governance Committee manages risks associated with the independence of the Board and potential conflicts of interest. Members of the management team report directly to the Board or the appropriate committee. The directors then use this information to understand, identify, manage, and mitigate risk. Once a committee has considered the reports from management, the chair of that committee will report on the matter to the full Board at the next meeting of the Board, or sooner if deemed necessary. This enables the Board and its committees to effectively carry out its risk oversight role.

**Code of Business Conduct**

We adopted a code of business conduct that applies to all of our directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer, which is available on our website. Our code of business conduct is a "code of ethics," as defined in Item 406(a) and (b) of Regulation S-K. We will make any legally required disclosures regarding amendments to, or waivers of, provisions of our code of ethics on our website.

**EXECUTIVE & DIRECTOR COMPENSATION**

**Summary Compensation Table**

The following table sets forth total compensation paid to the named executive officers for the years ended December 31, 2025 and 2024, comprised of (i) the individual who served as our Chief Executive Officer during the 2025 fiscal year, (ii) the two most highly compensated executive officers other than the Chief Executive Officer who were serving as an executive officer at the end of the 2025 fiscal year and whose compensation, as determined by Regulation S-K, Item 402, exceeded $100,000 and (iii) any individual who would otherwise be included in (ii) above but for the fact that such individual was not serving as an executive officer of ours at the end of the 2025 fiscal year. On October 28, 2025, the Company effected the Reverse Stock Split. All historical share and per share amounts reflected throughout this section have been adjusted to reflect the Reverse Stock Split.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary** | **Bonus** | **Stock Awards<sup>(1)</sup>** | **Non-Equity Incentive Plan Compensation** | **All Other Compensation** | **Total** |
| **Joseph Tucker** | 2025 | 472399 | – | 407142<sup>(2)</sup> | – |  | 879541 |
| *Chief Executive Officer* | 2024 | 458640 | – | 152893<sup>(3)</sup> | – |  | 611533 |
| **Peter Facchini, Ph.D.<sup>(8)</sup>** | 2025 | 236089 | – | 31391<sup>(4)</sup> | – |  | 267480 |
| *Chief Innovation Officer* | 2024 | 215269 | – | 59311<sup>(5)</sup> | – |  | 274580 |
| **Kevin Coveney** | 2025 | 396550 | – | 281895<sup>(6)</sup> | – |  | 678445 |
| *Chief Financial Officer* | 2024 | 385000 | – | 93002<sup>(7)</sup> | – |  | 478002 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Stock
 compensation consists of RSUs and RSAs. RSUs and RSAs may contain vesting conditions that include, without limitation, continued
 employment or engagement with the Company, achievement of defined stock price levels or achievement of defined performance milestones,
 termination of the employee without cause, resignation of the employee for good cause or change in control. Please also note there
 are no assurances that such vesting conditions will be met and accordingly there are no assurances that any unvested RSUs or RSAs
 will become vested prior to being forfeited on the expiration date defined in the relevant award agreements. Furthermore, RSUs require
 that the recipient's employment with the Company be terminated, or that a change of control occur, as a prerequisite of conversion
 of vested restricted stock units into shares of Common Stock.

(2) Dr.
 Tucker's 2025 stock compensation consists of an aggregate of 68,534 RSUs, valued at $407,142, with such valuation being based
 on the Company's closing price per share of $15.24 and $4.67 on the RSU grant dates.

(3) Dr.
 Tucker's 2024 stock compensation consists of an aggregate of 1,453 RSUs, valued at $152,893, with such valuation being based
 on the Company's closing price per share of $153.00 and $75.60 on the RSU grant dates.

(4) Dr.
 Facchini's 2025 stock compensation consists of an aggregate of 2,059 RSUs, valued at $31,391, with such valuation being based
 on the Company's closing price per share of $15.24 on the RSU grant date.

(5) Dr.
 Facchini's 2024 stock compensation consists of an aggregate of 500 RSUs, valued at $59,311, with such valuation being based
 on the Company's closing price per share of $153.00 and $75.60 on the RSU grant dates.

(6) Mr.
 Coveney's 2025 stock compensation consists of an aggregate of 46,377 RSUs, valued at $281,895, with such valuation being based
 on the Company's closing price per share of $15.24 and $4.67 on the RSU grant dates.

(7) Mr.
 Coveney's 2024 stock compensation consists of an aggregate of 888 RSUs, valued at $93,002, with such valuation being based
 on the Company's closing price per share of $153.00 and $75.60 on the RSU grant date.

(8) Salaries,
 bonus and non-equity incentive plan compensation that were originally paid or recorded in Canadian dollars were converted to U.S.
 dollars using the Bloomberg average exchange rate of C$1.00 to US$0.716 for the 12-month period ended December 31, 2025 and
 $1.00 to US$0.694 for the 12-month period ended December 31, 2024.

**Narrative Disclosure to Summary Compensation Table**

***Tucker Employment Agreement***

On May 24, 2021, Joseph Tucker, Ph.D. entered into an employment agreement (the "*Tucker Employment Agreement*") with the Company pursuant to which he became the Company's Chief Executive Officer, effective as of the September 16, 2021 closing date of the Company's amalgamation (the "*Tucker Effective Date*").

Pursuant to the Tucker Employment Agreement, Dr. Tucker was initially entitled to an annual base salary of $350,000 ("Tucker Base Salary"). Dr. Tucker also received, upon entering into the Tucker Employment Agreement, a one-time signing bonus of $100,000 and 7 RSUs, of which half are subject to time-based vesting and the other half are subject to market-based vesting. Pursuant to the Tucker Employment Agreement, upon entering into the agreement, Dr. Tucker also received an initial equity compensation grant of 83 RSUs, of which half are subject to time-based vesting and the other half are subject to market-based vesting. The RSUs are subject to the terms and conditions of the Company's 2020 Long-Term Incentive Plan, as amended (the "*Incentive Plan*") and will vest in quarters on each of the first four anniversaries of the Tucker Effective Date. The RSUs granted based on market performance were subsequently forfeited for failure to achieve milestones.

Effective as of March 1, 2022, our Board approved an increase in annual base salary from $350,000 to $364,000 for Dr. Tucker. Beginning in calendar year 2022, Dr. Tucker became eligible to receive annual performance bonuses of up to 75% of the Tucker Base Salary, as determined from time to time by the Board. Effective as of February 1, 2023, our Board approved an increase in annual base salary from $364,000 to $458,640 for Dr. Tucker.

The Tucker Employment Agreement will remain in effect until terminated by either party. Either party may terminate the Tucker Employment Agreement upon advance written notice of termination to the other party at least 30 days prior. In addition, the Tucker Employment Agreement is subject to early termination by him or the Company in accordance with the terms of the Tucker Employment Agreement.

Pursuant to the Tucker Employment Agreement, if Dr. Tucker's employment is terminated by the Company without Cause (as defined therein) or by Dr. Tucker for Good Reason (as defined therein), then the Company must pay Dr. Tucker, in addition to any then-accrued and unpaid obligations owed to him, 12 months of the then-current Tucker Base Salary.

The Tucker Employment Agreement also contains covenants restricting Dr. Tucker from soliciting the Company's employees or customers for a period of 12 months after the termination of Dr. Tucker's employment with the Company and prohibiting him from disclosure of confidential information regarding the Company at any time.

As of December 31, 2025, Dr. Tucker has been awarded an aggregate of 70,323 RSUs, of which 69,594 remain unvested. All outstanding RSUs held by Dr. Tucker will become fully vested upon the occurrence of a Change in Control (as defined in the Incentive Plan). In addition, if we terminate Dr. Tucker's employment without Cause or if Dr. Tucker terminates his employment for Good Reason, all outstanding RSUs subject to time-based vesting and held by Dr. Tucker will become fully vested, and all outstanding RSUs subject to market-based vesting that would have vested on the vesting date occurring on or next following Dr. Tucker's employment termination date will become fully vested, provided that the applicable performance goal has been achieved by such date. All shares underlying vested RSUs will not be converted into issued shares until after the earlier of a Change in Control or the termination of Dr. Tucker's employment with the Company for any reason other than a termination by the Company for Cause.

***Facchini Employment Agreement***

On May 24, 2021, Peter Facchini, Ph.D. entered into an employment agreement (the "*Facchini Employment Agreemen*t") with the Company pursuant to which he serves as the Company's Chief Innovation Officer, effective as of the September 16, 2021 closing date of the Company's amalgamation (the "*Facchini Effective Date*").

Pursuant to the Facchini Employment Agreement, as of the Facchini Effective Date, Dr. Facchini is entitled to a base salary of C$295,000 annually ("*Facchini Base Salary*"). Dr. Facchini also received a one-time signing bonus of C$50,000 and 5 RSUs, based on the price of the Company's shares at the Facchini Effective Date. Half of any such RSUs are subject to time-based vesting, and the remaining half of any such RSUs are subject to market-based vesting. Additionally, Dr. Facchini received 58 RSUs as equity compensation. 29 of such RSUs are subject to time-based vesting, and the remaining 29 of such RSUs are subject to market-based vesting. The RSUs are subject to the terms and conditions of the Incentive Plan. The RSUs are subject to time-based vesting and shall vest in quarters on each of the first four anniversaries of the Facchini Effective Date. The RSUs granted based on market performance were subsequently forfeited for failure to achieve milestones.

The Facchini Employment Agreement will remain in effect until terminated by either party upon written notice by either party, unless the Company delivers advance written notice of termination to Dr. Facchini or Dr. Facchini delivers advance written notice of termination to the Company at least 30 days prior. In addition, the Facchini Employment Agreement is subject to early termination by him or the Company in accordance with the terms of the Facchini Employment Agreement.

Pursuant to the Facchini Employment Agreement, if Dr. Facchini's employment is terminated by the Company without Cause (as defined in therein) or by Dr. Facchini for Good Reason (as defined therein), then the Company must pay Dr. Facchini, in addition to any then-accrued and unpaid obligations owed to him, 12 months of the then-current Facchini Base Salary.

The Facchini Employment Agreement also contains covenants restricting Dr. Facchini from soliciting the Company's employees or customers for a period of 12 months after the termination of Dr. Facchini's employment with the Company and prohibiting him from disclosure of confidential information regarding the Company at any time.

As of December 31, 2025, Dr. Facchini has been awarded an aggregate of 2,718 RSUs, of which 2,414 remain unvested. All outstanding RSUs held by Dr. Facchini will become fully vested upon the occurrence of a Change in Control. In addition, all outstanding RSUs subject to time-based vesting and held by Dr. Facchini will become fully vested if we terminate Dr. Facchini's employment without Cause or if Dr. Facchini terminates his employment for Good Reason, and all outstanding RSUs subject to market-based vesting that would have vested on the vesting date occurring on or next following Dr. Facchini's employment termination date will become fully vested, provided that the applicable performance goal has been achieved by such date. All shares underlying vested RSUs will not be converted into issued shares until after the earlier of a Change in Control or the termination of Dr. Facchini's employment with the Company for any reason other than a termination by the Company for Cause.

***Coveney Employment Agreement***

On February 22, 2023, Kevin Coveney entered into an employment agreement (the "*Coveney Employment Agreement*") with the Company pursuant to which he became the Company's Chief Financial Officer, effective as of the March 13, 2023 (the "*Coveney Effective Date*").

Pursuant to the Coveney Employment Agreement, Mr. Coveney is entitled to an annual base salary of $350,000 ("*Coveney Base Salary*"). Mr. Coveney also received, upon entering into the Coveney Employment Agreement 147 RSUs. The RSUs are subject to the terms and conditions of the Incentive Plan and will vest in quarters on each of the first four anniversaries of the Coveney Effective Date. Mr. Coveney is also eligible to receive annual performance bonuses of up to 40% of his Base Salary based on satisfaction of performance criteria/financial results, as determined by the Board in its sole discretion.

The Coveney Employment Agreement will remain in effect until terminated by either party. Either party may terminate the Coveney Employment Agreement upon advance written notice of termination to the other party at least 30 days prior.

Pursuant to the Coveney Employment Agreement, if Mr. Coveney's employment is terminated by the Company without Cause (as defined therein) or by Mr. Coveney for Good Reason (as defined therein), then the Company must pay Mr. Coveney, in addition to any then-accrued and unpaid obligations owed to him, 9 months of the then-current Coveney Base Salary, in exchange for release of claims.

The Coveney Employment Agreement also contains covenants restricting Mr. Coveney from soliciting the Company's employees or customers for a period of 12 months after the termination of Mr. Coveney's employment with the Company and prohibiting him from disclosure of confidential information regarding the Company or from disparaging the Company at any time.

As of December 31, 2025, Mr. Coveney has been awarded an aggregate of 47,413 RSUs, of which 47,024 remain unvested. All outstanding RSUs held by Mr. Coveney will become fully vested upon the occurrence of a Change in Control (as defined in the Incentive Plan). In addition, if we terminate Mr. Coveney's employment without Cause or if Mr. Coveney terminates his employment for Good Reason, all outstanding RSUs shall immediately vest.

**Outstanding Equity Awards at Fiscal Year-End**

The following table shows grants of stock options and RSUs outstanding as of December 31, 2025, including both awards subject to performance conditions and time-based awards, held by each of our named executive officers.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Option Awards | Option Awards | Option Awards | Option Awards | Option Awards | Stock Awards | Stock Awards | Stock Awards |
| Name | **Number of**<br> **Securities**<br> **Underlying**<br> **Unexercised**<br> **Options**<br> **Exercisable**<br> **(#)** | **Number of**<br> **Securities**<br> **Underlying**<br> **Unexercised**<br> **Options**<br> **Unexercisable**<br> **(#)** | **Equity**<br> **Incentive**<br> **Plan Awards:**<br> **Number of**<br> **Securities**<br> **Underlying**<br> **Unexercised**<br> **Unearned**<br> **Options**<br> **(#)** | **Option Exercise Price ($)** | **Option**<br> **Expiration**<br> **Date** | **Number of**<br> **Shares or**<br> **Units of**<br> **Stock That**<br> **Have Not**<br> **Vested**<br> **(#)** |  | **Market Value**<br> **of Shares**<br> **or Units of**<br> **Stock That**<br> **Have Not**<br> **Vested**<br> **($)<sup>(14)</sup>** |
| Joseph Tucker, Ph.D. | 23 |  |  | $13320.00 | 4/5/2026 | 122 | <sup>(1)</sup> | $443 |
|  |  |  |  |  |  | 300 | <sup>(2)</sup> | $1089 |
|  |  |  |  |  |  | 636 | <sup>(3)</sup> | $2309 |
|  |  |  |  |  |  | 8238 | (4) | $29904 |
|  |  |  |  |  |  | 60296 | (5) | $218874 |
| Peter Facchini, Ph.D. | 11 |  |  | $13320.00 | 4/5/2026 | 47 | <sup>(6)</sup> | $171 |
|  |  |  |  |  |  | 150 | <sup>(7)</sup> | $545 |
|  |  |  |  |  |  | 157 | <sup>(8)</sup> | $570 |
|  |  |  |  |  |  | 2059 | (9) | $7474 |
| Kevin Coveney |  |  |  |  |  | 73 | <sup>(10)</sup> | $265 |
|  |  |  |  |  |  | 180 | <sup>(11)</sup> | $653 |
|  |  |  |  |  |  | 393 | <sup>(12)</sup> | $1426 |
|  |  |  |  |  |  | 6179 | (13) | $22430 |
|  |  |  |  |  |  | 40198 | (14) | $145919 |

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(1) Represents the unvested portion of 244 RSUs granted to Dr. Tucker on
 January 25, 2023, each of which represents the right to receive one share of Common Stock upon vesting. The RSUs shall vest
 over 4 years in equal annual installments, with the first tranche having vested on January 25, 2024.

(2) Represents the unvested portion of 555 RSUs granted to Dr. Tucker on
 February 22, 2024, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of the
 RSUs will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each month
 following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(3) Represents the unvested portion of 897 RSUs granted to Dr. Tucker on
 October 9, 2024, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of the RSUs
 will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each month
 following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(4) Represents the unvested portion of 8,238 RSUs granted to Dr. Tucker
 on May 8, 2025, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of the RSUs
 will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each month
 following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(5) Represents the unvested portion of 60,296 RSUs granted to Dr. Tucker
 on December 23, 2025, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of
 the RSUs will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each
 month following the first vesting date. Vesting is conditioned upon continued employment in the Company

(6) Represents the unvested portion of 94 RSUs granted to Dr. Facchini
 on January 25, 2023, each of which represents the right to receive one share of Common Stock upon vesting. The RSUs shall
 vest over 4 years in equal annual installments, with the first tranche to vest on January 25, 2024.

(7) Represents the unvested portion of 277 RSUs granted to Dr. Facchini
 on February 22, 2024, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of
 the RSUs will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each
 month following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(8) Represents the unvested portion of 222 RSUs granted to Dr. Facchini
 on October 9, 2024, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of the
 RSUs will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each month
 following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(9) Represents the unvested portion of 2,059 RSUs granted to Dr. Facchini
 on May 8, 2025, each of which represents the right to receive one share of common stock upon vesting. One-fourth of the RSUs
 will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each month
 following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(10) Represents the unvested portion of 147 RSUs granted to Kevin Coveney
 on March 13, 2023, each of which represents the right to receive one share of Common Stock upon vesting. The RSUs shall vest
 over 4 years in equal annual installments, with the first tranche to vest on March 13, 2024.

(11) Represents the unvested portion of 333 RSUs granted to Kevin Coveney
 on February 22, 2024, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of
 the RSUs will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each
 month following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(11) Represents the unvested portion of 555 RSUs granted to Kevin Coveney
 on October 9, 2024, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of the
 RSUs will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each month
 following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(12) Represents the unvested portion of 6,179 RSUs granted to Kevin Coveney
 on May 8, 2025, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of the RSUs
 will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each month
 following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(13) Represents the unvested portion of 40,198 RSUs granted to Kevin Coveney
 on December 23, 2025, each of which represents the right to receive one share of Common Stock upon vesting. One-fourth of
 the RSUs will vest upon the one-year anniversary of the date of issuance. An additional one-thirty-sixth of the RSUs will vest each
 month following the first vesting date. Vesting is conditioned upon continued employment in the Company.

(14) The market value of the restricted stock unit awards is based on the
 closing price of our Common Stock of $3.63 per share at December 31, 2025.

**Policies and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information**

Equity awards are discretionary and, are generally granted to our key employees and our named executive officers under the Incentive Plan. The Company does not time the disclosure of material nonpublic information for the purpose of affecting the value of executive compensation.

**Potential Payments Upon Termination of Employment or Change in Control**

None of our named executive officers has a contract in place for change in control payments.

The employment agreements of Joseph Tucker, Ph.D., Peter Facchini, Ph.D. and Kevin Coveney include provisions for severance pay equal to nine to twelve months of salary upon termination by the Company without cause, as defined in the employment agreements or termination by the employee for good reason, as defined in the employment agreements.

Each of our named executive officers have also been granted RSUs under the Incentive Plan, which are currently either fully vested or contain conditions providing for vesting upon change of control. Vested RSUs are eligible for conversion to an equivalent number of shares of Common Stock upon the first occurrence of a termination of employment for any reason other than a termination by the Company for cause or an event of change of control, and all unvested RSUs shall immediately vest upon the occurrence of a termination of employment by either the Company without cause, a termination of employment by the employee for good reason or an event of change of control, and provided the Company's compliance with all terms and conditions of the Incentive Plan, including, without limitation, the availability of shares approved by the Company's stockholders for such issuances.

**Director Compensation**

The following table presents the total compensation for each person who served as a non-employee director during the fiscal year ended December 31, 2025. Directors who are also employees are not compensated for their service on our Board.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name (a)** | **Fees earned or paid in cash<br> ($) (b)<sup>(1)</sup>** | **Stock awards<br> ($) (c)** | **Option awards<br> ($) (d)** | **Non-equity<br> incentive plan<br> compensation<br> ($) (e)** | **Change in<br> pension<br> value and<br> nonqualified<br> deferred<br> compensation<br> earnings (f)** | **All other compensation<br> ($) (g)** | **Total ($) (h)** |
| George Kegler | 59000 | 35646<sup>(3)</sup> | – |  | – |  | 94646 |
| Frank Pasqualone <sup>(2)</sup> | 65500 | 35646<sup>(4)</sup> | – |  | – |  | 101146 |
| Marcus Schabacker | 52000 | 35646<sup>(5)</sup> | – |  | – |  | 87646 |
| Mike Webb | 175000 | 35646<sup>(6)</sup> | – |  | – |  | 210646 |
| Sheila DeWitt | 48000 | 35646<sup>(7)</sup> | – |  | – |  | 83646 |

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(1) For the fiscal year ended December 31, 2025, each individual that serves as a non-employee director was eligible to receive (paid pro-rata in quarterly installments) an annual cash retainer in the amount of $40,000, with additional cash fees as follows: (i) $15,000 for services as the chair of the Audit Committee and $7,500 for services as a member of the Audit Committee, (ii) $10,000 for services as the chair of the Compensation Committee and $5,000 for services as a member of the Compensation Committee; (iii) $8,000 for services as the chair of the Nominating and Governance Committee and $4,000 for services as a member of the Nominating and Governance Committee; and (iv) $8,000 for services as the chair of the Science and Technology Committee and $4,000 for services as a member of the Science and Technology Committee.

(2) Received an additional $8,000 as compensation in January, 2026, for becoming Chair of the Nominating and Governance Committee in 2025 which would have been paid in the normal course on December 31, 2025.

(3) Consisting of an aggregate of 7,633 restricted stock shares, valued at $35,646, with such valuation being based on the Company's closing price per share of $4.67 on the grant date.

(4) Consisting of an aggregate of 7,633 restricted stock shares, valued at $35,646, with such valuation being based on the Company's closing price per share of $4.67 on the grant date.

(5) Consisting of an aggregate of 7,633 restricted stock shares, valued at $35,646, with such valuation being based on the Company's closing price per share of $4.67 on the grant date.

(6) Consisting of an aggregate of 7,633 restricted stock shares, valued at $35,646, with such valuation being based on the Company's closing price per share of $4.67 on the grant date.

(7) Consisting of an aggregate of 7,633 restricted stock shares, valued at $35,646, with such valuation being based on the Company's closing price per share of $4.67 on the grant date.

**DESCRIPTION OF SECURITIES TO BE REGISTERED**

The following summary of the material terms of our Common Stock and description of certain of our other securities is not intended to be a complete summary of the rights and preferences of our Common Stock or such other securities. We urge you to read our A&R Certificate of Incorporation in its entirety for a complete description of the rights and preferences of our Common Stock. See "*Where You Can Find More Information*."

We have authorized 120,000,000 shares of capital stock, par value $0.01 per share, of which 100,000,000 are shares of Common Stock and 20,000,000 are shares of "blank check" preferred stock. On December 11, 2025, the stockholders, at a special meeting of the stockholders, approved an amendment to our A&R Certificate of Incorporation, to increase the authorized shares of Common Stock from 100,000,000 to 5,000,000,000, at our discretion, however such amendment has not been filed as of the date of the registration statement for which this prospectus forms a part. As of February 4, 2026, there were 1,390,335 shares of our Common Stock issued and outstanding and no shares of preferred stock issued and outstanding. The authorized and unissued shares of Common Stock and the authorized and undesignated shares of preferred stock are available for issuance without further action by our stockholders, unless such action is required by applicable law or the rules of any stock exchange on which our securities may be listed. Unless approval of our stockholders is so required, our Board does not intend to seek stockholder approval for the issuance and sale of our Common Stock or preferred stock.

**Common Stock**

Holders of our Common Stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and have no cumulative voting rights. Holders of our Common Stock are entitled to receive ratably dividends as may be declared by our Board out of funds legally available for that purpose, subject to any preferential dividend or other rights of any then outstanding preferred stock. We have never paid cash dividends on our Common Stock and do not anticipate paying any cash dividends in the foreseeable future but intend to retain our capital resources for reinvestment in our business. Any future disposition of dividends will be at the discretion of our Board and will depend upon, among other things, our future earnings, operating and financial condition, capital requirements, and other factors.

Holders of our Common Stock do not have preemptive or conversion rights or other subscription rights. Upon liquidation, dissolution or winding-up, holders of our Common Stock are entitled to share in all assets remaining after payment of all liabilities and the liquidation preferences of any of our outstanding shares of preferred stock. The rights, preferences and privileges of holders of Common Stock are subject to and may be adversely affected by the rights of the holders of shares of any series of our preferred stock that is currently outstanding or that we may designate and issue in the future.

Except as otherwise provided by law, our A&R Certificate of Incorporation or A&R Bylaws in all matters other than the election of directors, the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter shall be the act of the stockholders. In addition, except as otherwise provided by law, our A&R Certificate of Incorporation or A&R Bylaws, directors are elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

**Preferred Stock**

***Series B Preferred Stock***

Holders of our Series B preferred stock are not entitled to voting unless required by applicable law. Each share of Series B preferred stock will be convertible into one share of Common Stock (subject to adjustment) at any time at the option of the holders, provided that each holder would be prohibited from converting Series B preferred stock into shares of Common Stock if, as a result of such conversion, any such holder, together with its affiliates, would own more than 9.99% of the total number of shares of Common Stock then issued and outstanding. This limitation may be waived with respect to a holder upon such holder's provision of not less than 61 days' prior written notice to the Company.

Shares of Series B preferred stock are not entitled to receive any dividends, unless and until specifically declared by the Board. However, holders of Series B preferred stock are entitled to receive dividends on shares of Series B preferred stock equal (on an as-if-converted-to-common-stock basis) to and in the same form as dividends actually paid on shares of Common Stock when such dividends are specifically declared by the Board. The Company will have no right to require a holder to surrender its Series B preferred stock for redemption. Shares of Series B preferred stock will not otherwise be entitled to any redemption rights, or mandatory sinking fund or analogous fund provisions.

***Series C Preferred Stock***

When entitled to vote, holders of our Series C preferred stock are entitled to 1,000,000 votes per share. Thus, each one-thousandth of a share of Series C preferred stock would entitle the holder thereof to 1,000 votes. The outstanding shares of Series C preferred stock will vote together with the outstanding shares of Common Stock of the Company as a single class exclusively with respect to (1) any proposal to adopt an amendment to the A&R Certificate of Incorporation, to reclassify the outstanding shares of Common Stock into a smaller number of shares of Common Stock at a ratio specified in or determined in accordance with the terms of such amendment (the "*Reverse Stock Split Proposal*"), (2) any proposal to adopt an amendment to the A&R Certificate of Incorporation to increase the number of authorized shares of the Corporation's Common Stock (the "*Share Increase Proposal*") and (3) any proposal to adjourn any meeting of stockholders called for the purpose of voting on the Reverse Stock Split Proposal or the Share Increase Proposal (the "*Adjournment Proposal*"). The Series C preferred stock will not be entitled to vote on any other matter, except to the extent required by applicable law.

The holders of Series C preferred stock, as such, will not be entitled to receive dividends of any kind. The Series C Preferred Stock will rank senior to the Common Stock as to any distribution of assets upon a liquidation, dissolution or winding up of the Company, whether voluntarily or involuntarily (a "*Dissolution*"). Upon any Dissolution, each holder of outstanding shares of Series C Preferred Stock will be entitled to be paid out of the assets of the Company available for distribution to stockholders, prior and in preference to any distribution to the holders of Common Stock, an amount in cash equal to $0.01 per outstanding share of Series C Preferred Stock.

Under certain circumstances, shares of the Series C Preferred Stock will be redeemed by the Company. The Series C Preferred Stock is not convertible into, or exchangeable for, shares of any other class or series of stock or other securities of the Company. The Series C Preferred Stock has no stated maturity and is not subject to any sinking fund. The Series C Preferred Stock is not subject to any restriction on the redemption or repurchase of shares by the Company while there is any arrearage in the payment of dividends or sinking fund installments.

**January 2026 Warrants** 

***Series G Warrants***

The following summary of certain terms and provisions of the Series G Warrants included with the shares of Common Stock that are being issued hereby is not complete and is subject to, and qualified in its entirety by, the provisions of the Series G Warrants, the form of which will be filed as an exhibit to the registration statement of which this prospectus forms a part. Prospective investors should carefully review the terms and provisions of the form of Series G Warrant for a complete description of the terms and conditions of the Series G Warrants.

*Duration and Exercise Price*

Each Series G Warrant offered hereby will have an exercise price of $4.16 per share and will be exercisable immediately and will expire five years following the effective date of the resale registration statement for which this prospectus forms a part (the "*Resale Registration Statement*"). The Series G Warrants will expire on the five-year anniversary of the effective date of the Resale Registration Statement. The exercise price and number of shares of Common Stock issuable upon exercise of the Series G Warrants is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our Common Stock and the exercise price. The Series G Warrants will be issued separately from the Common Stock and may be transferred separately immediately thereafter. The Series G Warrants will be issued in certificated form only.

*Exercisability*

The Series G Warrants will be exercisable, at the option of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by payment in full for the number of shares of our Common Stock purchased upon such exercise (except in the case of a cashless exercise as discussed below). A holder (together with its affiliates) may not exercise any portion of the Series G Warrant to the extent that the holder would own more than 4.99% (or, at the election of the purchaser prior to the issuance of the warrants, 9.99%) of the outstanding Common Stock immediately after exercise. Following the issuance of the Series G warrants, upon notice from the holder to us, the holder may increase or decrease the amount of beneficial ownership of outstanding stock after exercising the holder's Series G Warrants up to 9.99% of the number of shares of our Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Series G Warrants and in accordance with the rules and regulations of the SEC, provided that any increase in the beneficial ownership limitation shall not be effective until 61 days following notice to us.

*Cashless Exercise*

If, at the time a holder exercises its Series G Warrants, a registration statement registering the issuance of the shares of Common Stock underlying the Series G Warrants under the Securities Act is not then effective or available for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise (either in whole or in part) the net number of shares of Common Stock determined according to a formula set forth in the Series G Warrants.

*Fractional Shares*

No fractional shares of Common Stock will be issued upon the exercise of the Series G Warrants. Rather, the number of shares of Common Stock to be issued will be rounded up to the next whole share or we will pay a cash adjustment equal to such fraction multiplied by the exercise price to the holder.

*Transferability*

Subject to applicable laws, a Series G Warrant may be transferred at the option of the holder upon surrender of the Series G warrant to us together with the appropriate instruments of transfer.

*Trading Market*

There is no trading market available for the Series G Warrants on any securities exchange or nationally recognized trading system, and we do not expect a trading market to develop. We do not intend to list the Series G Warrants on any securities exchange or other trading market. Without a trading market, the liquidity of the Series G Warrants will be extremely limited. The Common Stock issuable upon exercise of the Series G Warrants is currently listed on Nasdaq.

*Right as a Shareholder*

Except as otherwise provided in the Series G Warrants or by virtue of such holder's ownership of shares of our Common Stock, the holders of the Series G Warrants do not have the rights or privileges of holders of our Common Stock, including any voting rights, until they exercise their Series G Warrants.

*Fundamental Transaction*

In the event of a "*Fundamental Transaction*," as defined in the Series G Warrants and generally including any reorganization, recapitalization or reclassification of our Common Stock, the sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation or merger with or into another person, the acquisition of greater than 50% of our outstanding Common Stock, or any person or group becoming the beneficial owner of greater than 50% of the voting power represented by our outstanding Common Stock, the holders of the Series G Warrants will be entitled to receive upon exercise of the Series G Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the Series G Warrants immediately prior to such Fundamental Transaction. In addition, in the event of a Fundamental Transaction which is approved by our Board, the holders of the Series G Warrants have the right to require us or a successor entity to redeem the Series G Warrant for cash in the amount of the Black-Scholes Value (as defined in the warrant) of the unexercised portion of the Series G Warrant on the date of the consummation of the Fundamental Transaction. In the event of a Fundamental Transaction which is not in our control, including a fundamental transaction not approved by our Board, the holders of the Series G Warrants have the right to require us or a successor entity to redeem the Series G Warrant for the consideration paid in the Fundamental Transaction in the amount of the Black-Scholes Value of the unexercised portion of the Series G Warrant on the date of the consummation of the Fundamental Transaction.

*Amendments*

The Series G Warrants may be modified or amended with the written consent of the holder of such Series G Warrant and us.

***Series H Warrants***

 ****

The following summary of certain terms and provisions of the Series H Warrants included with the shares of Common Stock that are being issued hereby is not complete and is subject to, and qualified in its entirety by, the provisions of the Series H Warrants, the form of which will be filed as an exhibit to the registration statement of which this prospectus forms a part. Prospective investors should carefully review the terms and provisions of the form of Series H Warrant for a complete description of the terms and conditions of the Series H Warrants.

*Duration and Exercise Price*

Each Series H Warrant offered hereby will have an exercise price of $4.16 per share and will be exercisable immediately and will expire eighteen months following the effective date of the Resale Registration Statement. The Series H warrants will expire on the 18 month anniversary of the effective date of the Resale Registration Statement. The exercise price and number of shares of Common Stock issuable upon exercise of the Series H Warrants is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our Common Stock and the exercise price. The Series H Warrants will be issued separately from the Common Stock and may be transferred separately immediately thereafter. The Series H Warrants will be issued in certificated form only.

*Exercisability*

The Series H Warrants will be exercisable, at the option of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by payment in full for the number of shares of our Common Stock purchased upon such exercise (except in the case of a cashless exercise as discussed below). A holder (together with its affiliates) may not exercise any portion of the Series H Warrant to the extent that the holder would own more than 4.99% (or, at the election of the purchaser prior to the issuance of the warrants, 9.99%) of the outstanding Common Stock immediately after exercise. Following the issuance of the Series H Warrants, upon notice from the holder to us, the holder may increase or decrease the amount of beneficial ownership of outstanding stock after exercising the holder's Series H Warrants up to 9.99% of the number of shares of our Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Series H Warrants and in accordance with the rules and regulations of the SEC, provided that any increase in the beneficial ownership limitation shall not be effective until 61 days following notice to us.

*Cashless Exercise*

If, at the time a holder exercises its Series H Warrants, a registration statement registering the issuance of the shares of Common Stock underlying the Series H Warrants under the Securities Act is not then effective or available for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise (either in whole or in part) the net number of shares of Common Stock determined according to a formula set forth in the Series G Warrants.

*Fractional Shares*

No fractional shares of Common Stock will be issued upon the exercise of the Series H Warrants. Rather, the number of shares of Common Stock to be issued will be rounded up to the next whole share or we will pay a cash adjustment equal to such fraction multiplied by the exercise price to the holder.

*Transferability*

Subject to applicable laws, a Series H Warrant may be transferred at the option of the holder upon surrender of the Series H Warrant to us together with the appropriate instruments of transfer.

*Trading Market*

There is no trading market available for the Series H Warrants on any securities exchange or nationally recognized trading system, and we do not expect a trading market to develop. We do not intend to list the Series H Warrants on any securities exchange or other trading market. Without a trading market, the liquidity of the Series H Warrants will be extremely limited. The Common Stock issuable upon exercise of the Series H Warrants is currently listed on Nasdaq.

*Right as a Shareholder*

Except as otherwise provided in the Series H Warrants or by virtue of such holder's ownership of shares of our Common Stock, the holders of the Series H Warrants do not have the rights or privileges of holders of our Common Stock, including any voting rights, until they exercise their Series H Warrants.

*Fundamental Transaction*

In the event of a "*Fundamental Transaction*," as defined in the Series H Warrants and generally including any reorganization, recapitalization or reclassification of our Common Stock, the sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation or merger with or into another person, the acquisition of greater than 50% of our outstanding Common Stock, or any person or group becoming the beneficial owner of greater than 50% of the voting power represented by our outstanding Common Stock, the holders of the Series H Warrants will be entitled to receive upon exercise of the Series H Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the Series H Warrants immediately prior to such Fundamental Transaction. In addition, in the event of a Fundamental Transaction which is approved by our Board, the holders of the Series H Warrants have the right to require us or a successor entity to redeem the Series H Warrant for cash in the amount of the Black-Scholes Value (as defined in the warrant) of the unexercised portion of the Series H Warrant on the date of the consummation of the Fundamental Transaction. In the event of a Fundamental Transaction which is not in our control, including a fundamental transaction not approved by our Board, the holders of the Series H Warrants have the right to require us or a successor entity to redeem the Series H Warrant for the consideration paid in the Fundamental Transaction in the amount of the Black-Scholes Value of the unexercised portion of the Series H Warrant on the date of the consummation of the Fundamental Transaction.

*Amendments*

The Series H Warrants may be modified or amended with the written consent of the holder of such Series H Warrant and us.

 ****

***Placement Agent Warrants***

The following summary of certain terms and provisions of the Placement Agent Warrants that are being issued hereby is not complete and is subject to, and qualified in its entirety by, the provisions of the Placement Agent Warrants, the form of which will be filed as an exhibit to the registration statement of which this prospectus forms a part. Prospective investors should carefully review the terms and provisions of the form of Placement Agent Warrant for a complete description of the terms and conditions of the Placement Agent Warrant.

*Duration and Exercise Price*

Each Placement Agent Warrant offered hereby will have an initial exercise price equal to $5.5125 per share of Common Stock (125% of the combined public offering price per share of Common Stock, Series G warrants, and Series H warrants in the registered direct offering and concurrent Private Placement). The Placement Agent Warrants are exercisable immediately and are exercisable for five years from the commencement of sales in the Private Placement. The exercise price and number of shares of Common Stock issuable upon exercise is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our Common Stock and the exercise price.

*Exercisability*

The Placement Agent Warrants will be exercisable, at the option of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by payment in full for the number of shares of our Common Stock purchased upon such exercise (except in the case of a cashless exercise as discussed below). A holder (together with its affiliates) may not exercise any portion of the Placement Agent Warrant to the extent that the holder would own more than 4.99% (or, at the election of the purchaser prior to the issuance of the warrants, 9.99%) of the outstanding Common Stock immediately after exercise, except that upon notice from the holder to us, the holder may increase or decrease the amount of beneficial ownership of outstanding stock after exercising the holder's Placement Agent Warrant up to 9.99% of the number of shares of our Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Placement Agent Warrants and in accordance with the rules and regulations of the SEC, provided that any increase in the beneficial ownership limitation shall not be effective until 61 days following notice to us.

*Cashless Exercise*

If, at the time a holder exercises its Placement Agent Warrants, a registration statement registering the issuance of the shares of Common Stock underlying the Placement Agent Warrants under the Securities Act is not then effective or available for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made to us upon such exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise (either in whole or in part) the net number of shares of Common Stock determined according to a formula set forth in the Placement Agent Warrants.

*Fractional Shares*

No fractional shares of Common Stock will be issued upon the exercise of the Placement Agent Warrants. Rather, the number of shares of Common Stock to be issued will be rounded up to the next whole share or we will pay a cash adjustment equal to such fraction multiplied by the exercise price to the holder.

*Transferability*

Subject to applicable laws, a Placement Agent Warrant may be transferred at the option of the holder upon surrender of the Placement Agent Warrant to us together with the appropriate instruments of transfer.

*Trading Market*

There is no trading market available for the Placement Agent Warrants on any securities exchange or nationally recognized trading system, and we do not expect a trading market to develop. We do not intend to list the Placement Agent Warrants on any securities exchange or other trading market. Without a trading market, the liquidity of the Placement Agent Warrants will be extremely limited. The Common Stock issuable upon exercise of the Placement Agent Warrants is currently listed on Nasdaq.

*Right as a Shareholder*

Except as otherwise provided in the Placement Agent Warrants or by virtue of such holder's ownership of shares of our Common Stock, the holders of the Placement Agent Warrants do not have the rights or privileges of holders of our Common Stock, including any voting rights, until they exercise their Placement Agent Warrants.

*Fundamental Transaction*

In the event of a "*Fundamental Transaction*," as defined in the Placement Agent Warrants and generally including any reorganization, recapitalization or reclassification of our Common Stock, the sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation or merger with or into another person, the acquisition of greater than 50% of our outstanding Common Stock, or any person or group becoming the beneficial owner of greater than 50% of the voting power represented by our outstanding Common Stock, the holders of the Placement Agent Warrants will be entitled to receive upon exercise of the Placement Agent Warrants the kind and amount of securities, cash or other property that the holders would have received had they exercised the Placement Agent Warrants immediately prior to such Fundamental Transaction. In addition, in the event of a Fundamental Transaction which is approved by our Board, the holders of the Placement Agent Warrants have the right to require us or a successor entity to redeem the Placement Agent Warrant for cash in the amount of the Black-Scholes value of the unexercised portion of the Placement Agent Warrant on the date of the consummation of the Fundamental Transaction. In the event of a Fundamental Transaction which is not approved by our Board, the holders of the Placement Agent Warrants have the right to require us or a successor entity to redeem the Placement Agent Warrants for the consideration paid in the fundamental transaction in the amount of the Black Scholes value of the unexercised portion of the Placement Agent Warrant on the date of the consummation of the Fundamental Transaction.

*Amendments*

The Placement Agent Warrants may be modified or amended with the written consent of the holder of such Placement Agent Warrants and us.

**Limitations on Liability and Indemnification of Officers and Directors**

Our A&R Certificate of Incorporation limits the liability of our officers and directors to the fullest extent permitted by the DGCL.

Our directors and officers are indemnified to the fullest extent permitted under Delaware law. We also maintain insurance which protects our officers and directors against any liabilities incurred in connection with their service in such a capacity.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by us of expenses incurred or paid by a director, officer or controlling person of ours in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

**Anti-Takeover Effects of Certain Provisions of Delaware Law, our A&R Certificate of Incorporation and A&R Bylaws**

***Delaware Law***

We are subject to Section 203 of the DGCL. Section 203 generally prohibits a public Delaware corporation from engaging in a "*business combination*" with an "*interested stockholder*" for a period of three years after the date of the transaction in which the person became an interested stockholder, unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding (i) shares owned by persons who are directors and also officers and (ii) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● on or subsequent to the date of the transaction, the business combination is approved by the board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

Section 203 defines a business combination to include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● any merger or consolidation involving the corporation and the interested stockholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

In general, Section 203 defines an "*interested stockholder*" as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with, or controlling, or controlled by, the entity or person. The term "*owner*" is broadly defined to include any person that, individually, with or through that person's affiliates or associates, among other things, beneficially owns the stock, or has the right to acquire the stock, whether or not the right is immediately exercisable, under any agreement or understanding or upon the exercise of warrants or options or otherwise or has the right to vote the stock under any agreement or understanding, or has an agreement or understanding with the beneficial owner of the stock for the purpose of acquiring, holding, voting or disposing of the stock.

The restrictions in Section 203 do not apply to corporations that have elected, in the manner provided in Section 203, not to be subject to Section 203 of the DGCL or, with certain exceptions, which do not have a class of voting stock that is listed on a national securities exchange or held of record by more than 2,000 stockholders. Our A&R Certificate of Incorporation and A&R Bylaws do not opt out of Section 203.

Section 203 could delay or prohibit mergers or other takeover or change in control attempts with respect to us and, accordingly, may discourage attempts to acquire us even though such a transaction may offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.

***A&R Certificate of Incorporation and A&R Bylaws***

Provisions of our A&R Certificate of Incorporation and A&R Bylaws, each as amended, may delay or discourage transactions involving an actual or potential change in our control or change in our management, including transactions in which stockholders might otherwise receive a premium for their shares, or transactions that our stockholders might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of our Common Stock. Among other things, our A&R Certificate of Incorporation and A&R Bylaws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● permit our Board to issue up to 20,000,000 shares of preferred stock, without further action by the stockholders, with any rights, preferences and privileges as they may designate, including the right to approve an acquisition or other change in control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● provide that the authorized number of directors may be changed only by a resolution adopted by the entire Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● do not provide for cumulative voting rights (therefore allowing the holders of a majority of the shares of Common Stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● provide advance notice provisions with which a stockholder who wishes to nominate a director or propose other business to be considered at a stockholder meeting must comply.

**Potential Effects of Authorized but Unissued Stock**

We have shares of Common Stock and preferred stock available for future issuance without stockholder approval. Additionally, on December 11, 2025, the stockholders, at a special meeting of the stockholders, approved an amendment to A&R Certificate of Incorporation, to increase the authorized shares of Common Stock from 100,000,000 to 5,000,000,000, at our discretion. We may utilize these additional shares for a variety of corporate purposes, including future public offerings to raise additional capital, to facilitate corporate acquisitions or payment as a dividend on the capital stock.

The existence of unissued and unreserved Common Stock and preferred stock may enable our Board to issue shares to persons friendly to current management or to issue preferred stock with terms that could render more difficult or discourage a third-party attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity of the Company's management. In addition, our Board has the discretion to determine designations, rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of each series of preferred stock, all to the fullest extent permissible under the DGCL and subject to any limitations set forth in our A&R Certificate of Incorporation. The purpose of authorizing our Board to issue preferred stock and to determine the rights and preferences applicable to such preferred stock is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing desirable flexibility in connection with possible financings, acquisitions and other corporate purposes, could have the effect of making it more difficult for a third-party to acquire, or could discourage a third party from acquiring, a majority of our outstanding voting stock.

**Listing**

Our Common Stock is listed on the Nasdaq Capital Market under the symbol "*ENVB*".

**Transfer Agent**

The Transfer Agent and Registrar for our Common Stock is Equiniti Trust Company.

**SECURITIES ACT RESTRICTIONS ON RESALE OF ENVERIC BIOSCIENCES' SECURITIES**

In general, Rule 144 of the Securities Act, ("*Rule 144*"), permits the resale of restricted securities without registration under the Securities Act if certain conditions are met. Rule 144 is not available for the resale of restricted securities initially issued by shell companies (other than business combination related shell companies) or issuers that have been at any time previously a shell company, including us. However, Rule 144 also includes an exception to this prohibition if the following conditions are met at the time of such resale:

● the issuer of the securities that was formerly a shell company has ceased to be a shell company;

● the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act;

● the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and

● at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting our status as an entity that is not a shell company.

Upon the consummation of the 2015 Merger, we ceased to be a shell company, and as long as the conditions set forth in the exceptions listed above are satisfied, Rule 144 will be available for the resale of our restricted securities.

If the above conditions have been met and Rule 144 is available, a person who has beneficially owned restricted shares of Common Stock or warrants for at least six months would be entitled to sell their securities pursuant to Rule 144, provided that such person is not deemed to have been one of our affiliates at the time of, or at any time during the three months preceding, a sale. If such persons are our affiliates at the time of, or at any time during the three months preceding, a sale, such persons would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:

● 1% of the total number of shares of our equity of the same class, as applicable, then outstanding; or

● the average weekly reported trading volume of our Common Stock or warrants, as applicable, during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

Sales by affiliates under Rule 144, when available, are also limited by manner of sale provisions and notice requirements.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

The following table sets forth information with respect to the beneficial ownership of our Common Stock (including shares issuable upon the exercise or conversion of securities that entitle the holders thereof to obtain Common Stock upon exercise or conversion in accordance with the terms thereof) as of February 4, 2026, by:

● each person known by us to be the beneficial owner of more than five percent of our outstanding shares of Common Stock;

● each director;

● each of our named executive officers; and

● all current directors and executive officers of the Company as a group.

Beneficial ownership is determined in accordance with the rules of the SEC, which generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to those securities. We deem shares of our Common Stock which the stockholder has the right to acquire within 60 days of February 4, 2026, whether through the vesting of RSUs, or the exercise or conversion of any stock option, convertible security, warrant or other right, to be outstanding for the purpose of computing the percentage ownership of such individual or group, but those shares are not deemed to be outstanding for the purpose of computing the percentage ownership of any other person shown in the table. The indication herein that shares are beneficially owned is not an admission on the part of the stockholder that he, she or it is a direct or indirect beneficial owner of those shares.

Except as indicated in the footnotes to this table, each beneficial owner named in the table below has sole voting and sole investment power with respect to all shares beneficially owned and each person's address is c/o Enveric Biosciences, Inc. 245 First Street, Riverview II, 18th Floor Cambridge, MA 02142. As of February 4, 2026, we had 1,390,335 shares of Common Stock outstanding.

---

| | | |
|:---|:---|:---|
| **Name of Beneficial Owner** | **Number of Shares of Common Stock Beneficially Owned** | **Percentage of Class** |
| **Officers and Directors** |  |  |
| Joseph Tucker, Ph.D. <sup>(1)</sup> | 935 | \* |
| Peter Facchini, Ph.D. <sup>(2)</sup> | 406 | \* |
| Kevin Coveney <sup>(3)</sup> | 481 | \* |
| Frank Pasqualone <sup>(4)</sup> | 7904 | \* |
| George Kegler <sup>(5)</sup> | 7900 | \* |
| Marcus Schabacker, M.D., Ph.D. <sup>(6)</sup> | 7900 | \* |
| Michael Webb<sup>(7)</sup> | 7898 | \* |
| Sheila DeWitt, Ph.D.<sup>(8)</sup> | 7788 | \* |
| All directors and current executive officers as a group of eight (8) persons <sup>(9)</sup> | 41211 | 3.0% |
| **Greater than 5% Holder** |  |  |
| Lind Global Fund III LP et al.<sup>(10)</sup> | 141265 | 9.99% |

---

\* Represents less than 1%

(1) Includes 138 shares of Common Stock, 715 shares of Vested
 and Unissued Restricted Stock Units, 61 Restricted Stock Units that will vest within 60 days of February 4, 2026, and
 options to purchase 22 shares of Common Stock.

(2) Includes 93 shares of Common Stock, 281 Shares of Vested
 and Unissued Restricted Stock Units, 21 Restricted Stock Units that will vest within 60 days of February 4, 2026, and
 options to purchase 11 shares of Common Stock exercisable.

(3) Includes 37 shares of Common Stock, 370 shares of Vested and
 Unissued Restricted Stock Units and 74 Restricted Stock Units that will vest within 60 days of February 4,
 2026.

(4) All share amounts consist of Common Stock.

(5) All share amounts consist of Common Stock.

(6) All share amounts consist of Common Stock.

(7) All share amounts consist of Common Stock.

(8) All share amounts consist of Common Stock.

(9) Includes 39,657 shares of Common Stock, 1,366 Vested and
 Unissued Restricted Stock Units, 155 Restricted Stock Units that will vest within 60 days of February 4, 2026, and
 options to purchase 33 shares of Common Stock.

(10) The information is based on a Schedule 13G, filed with the SEC on February 4, 2026. Lind Global
 Fund III LP ()"*Lind*") is managed by its general partner, Lind Global Partners III LLC, which is managed by its
 investment manager, The Lind Partners, LLC. Each of Lind Partners, LLC, Lind Global Partners III LLC, and Jeff Easton also have voting
 or investment control over the securities reported herein that are held by Lind. Mr. Easton disclaims beneficial ownership
 over the securities listed except to the extent of his pecuniary interest therein. The address of Lind is 444 Madison Ave,
 Floor 41, New York, NY 10022. Lind's beneficial ownership has been limited to 141,265 shares in the aggregate due to beneficial
 ownership limitations in the January 2026 Warrants.

**SELLING STOCKHOLDERS**

This prospectus relates to the sale from time to time by the Selling Stockholders of up to 680,620 shares of our Common Stock. When we refer to the "Selling Stockholders" in this prospectus, we mean the persons and entities listed in the table below, and their respective pledgees, donees, permitted transferees, assignees, successors and others who later come to hold any of the Selling Stockholders' interests in shares of our Common Stock other than through a public sale.

The Selling Stockholders may sell some, all or none of its Shares. We do not know how long the Selling Stockholders will hold the Shares before selling them, and we currently have no agreements, arrangements or understandings with the Selling Stockholders regarding the sale of any of the Shares.

The following table presents information regarding the Selling Stockholders and the Shares that they may offer and sell from time to time under this prospectus. The number of shares of Common Stock beneficially owned by the Selling Stockholders is determined under rules promulgated by the SEC. Except as described above, there are currently no agreements, arrangements or understandings with respect to the resale of any of the securities covered by this prospectus.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Shares Beneficially Owned After this Offering** | **Shares Beneficially Owned After this Offering** |
| **Name of Selling**<br>**Stockholder** | **Shares Beneficially Owned Prior to this**<br>**Offering <sup>(1)</sup>** | **Maximum Number of Shares Being Offered Pursuant to this**<br>**Prospectus<sup>(2)</sup>** | **Number<sup>(3)</sup>** | **Percent<sup>(4)</sup>** |
| Orca Capital AG<sup>(5)</sup> | 281182<sup>(6)</sup> | 113380 | 167802 | 4.99% |
| Intracoastal Capital, LLC<sup>(7)</sup> | 267991<sup>(8)</sup> | 158732 | 109259 | 4.99% |
| Lincoln Alternative Strategies LLC<sup>(9)</sup> | 170070<sup>(10)</sup> | 113380 | 56690 | 2.7% |
| Bristol Investment Fund, Ltd. <sup>(11)</sup> | 170070<sup>(12)</sup> | 113380 | 56690 | 2.7% |
| Lind Global Fund III LP<sup>(13)</sup> | 212098<sup>(14)</sup> | 158732 | 53366 | 2.6% |
| Augustus Trading, LLC<sup>(15)</sup> | 33898<sup>(16)</sup> | 14759 | 19139 | \* |
| Noam Rubinstein<sup>(17)</sup> | 24256<sup>(18)</sup> | 7250 | 17006 | \* |
| Wilson Drive Holdings LLC<sup>(19)</sup> | 2604<sup>(20)</sup> | 777 | 1827 | \* |
| Charles Worthman<sup>(17)</sup> | 771<sup>(21)</sup> | 230 | 541 | \* |

---

\*Less than 1.0%

&nbsp;&nbsp;&nbsp;&nbsp;(1) Consists
 of shares of Common Stock issuable pursuant to the full exercise of the January 2026 Warrants issued in the Private Placement and
 other warrants previously acquired from us.

(2) Represents
 shares of Common Stock underlying the January 2026 Warrants issued to the Selling Stockholders in the Private Placement. All of the
 January 2026 Warrants that are exercisable for Common Stock offered hereby contain certain beneficial ownership limitations, which
 provide that a holder of the January 2026 Warrants will not have the right to exercise any portion of its January 2026 Warrants if
 such holder, together with its affiliates and attribution parties, would beneficially own in excess of 4.99% of the number of shares
 of Common Stock outstanding immediately after giving effect to such exercise, provided that upon at least 61 days prior notice to
 us, a holder may increase or decrease such limitation up to a maximum of 9.99% of the number of shares of Common Stock outstanding
 (each such limitation, a "*Beneficial Ownership Limitation* ").

&nbsp;&nbsp;&nbsp;&nbsp;(3) Assumes all Common Stock offered by the Selling Stockholders hereby are sold and that the Selling Stockholders buy or sell no additional shares of Common Stock prior to the completion of this offering. We do not know when or in what amounts the Selling Stockholder may offer Common Stock for sale. The Selling Stockholder might not sell any or might sell all of the Common Stock offered by this prospectus. Because the Selling Stockholder may offer all or some of the Common Stock pursuant to this offering, and because there are currently no agreements, arrangements or understandings with respect to the sale of any of the Common Stock, we cannot estimate the number of the Common Stock that will be held by the Selling Stockholder after completion of the offering. However, for purposes of this table, we have assumed that, after completion of the offering, none of the Shares covered by this prospectus will be held by the Selling Stockholders, including Common Stock issuable upon exercise of the January 2026 Warrants issued in the Private Placement.

(4) Based on 2,070,955 shares of Common Stock, consisting of 1,390,335
 shares of Common Stock outstanding as of February 4, 2026, and 680,620 shares of Common Stock underlying the January 2026
 Warrants (assuming the full exercise of the January 2026 Warrants).

(5) The Common Stock and other securities are held by Orca Capital AG.
 Each of Roman Gordon, Thomas Koenig, and Beate Ruhle-Burkhardt also has voting or investment control over the securities reported
 herein that are held by Orca Capital AG. The address of Orca Capital AG is Sperlring 2, 85276 Pfaffenhofen, Germany. We do not
 have a material relationship with the Selling Stockholder other than as a result of the ownership of our Common Stock or other securities.

(6) Consists of (i) 56,690 shares of Common Stock; and (ii) 224,492 shares
 of Common Stock issuable upon the exercise of outstanding warrants, including 113,380 shares of Common Stock issuable upon
 the exercise of January 2026 Warrants issued in connection with the Private Placement being registered for resale pursuant to the
 registration statement of which this prospectus forms a part. The Selling Stockholder's warrants prohibit the exercise of such
 warrants if, after giving effect to such exercise, it would result in the Selling Stockholder's, including any person or entity
 whose beneficial ownership would be attributable to the Selling Stockholder, beneficial ownership exceeding the applicable Beneficial
 Ownership Limitation.

(7) Mitchell P. Kopin and Daniel B. Asher, each of whom are managers of
 Intracoastal Capital, LLC ()"*Intracoastal* "), have shared voting control and investment discretion over the securities
 reported herein that are held by Intracoastal. As a result, each of Mr. Kopin and Mr. Asher may be deemed to have beneficial
 ownership (as determined under Section 13(d) of the Exchange Act) of the securities reported herein that are held by Intracoastal.
 The address of Intracoastal is 245 Palm Trail, Delray Beach FL, 33483. We do not have a material relationship with the Selling Stockholder
 other than as a result of the ownership of our Common Stock or other securities.

(8) Consists of (i) 18,760 shares of Common Stock; and (ii) 249,231
 shares of Common Stock issuable upon the exercise of outstanding warrants, including 158,732 shares of Common Stock issuable upon
 the exercise of January 2026 Warrants issued in connection with the Private Placement being registered for resale pursuant to the
 registration statement of which this prospectus forms a part. The Selling Stockholder's warrants prohibit the exercise of such
 warrants if, after giving effect to such exercise, it would result in the Selling Stockholder's, including any person or entity
 whose beneficial ownership would be attributable to the Selling Stockholder, beneficial ownership exceeding the applicable Beneficial
 Ownership Limitation.

(9) The Common Stock and other securities are held by Lincoln Alternative Strategies LLC ()"*Lincoln* "). Stephen Temes, in his capacity as managing member, may also be deemed to have investment discretion and voting power over the securities reported herein that are held by Lincoln. The address of Lincoln is 404 Washington Ave #660, Miami Beach, FL 33139. We do not have a material relationship with the Selling Stockholder other than as a result of the ownership of our Common Stock or other securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Consists
 of (i) 56,690 shares of Common Stock; and (ii) 113,380 shares of Common Stock issuable upon the exercise of January 2026 Warrants
 issued in connection with the Private Placement being registered for resale pursuant to the registration statement of which this
 prospectus forms a part. The Selling Stockholder's warrants prohibit the exercise of such warrants if, after giving effect
 to such exercise, it would result in the Selling Stockholder's, including any person or entity whose beneficial ownership would
 be attributable to the Selling Stockholder, beneficial ownership exceeding the applicable Beneficial Ownership Limitation.

&nbsp;&nbsp;&nbsp;&nbsp;(11) The Common Stock and other securities are held by Bristol Investment
 Fund, Ltd. ()"*Bristol* "). Bristol Capital Advisors, LLC is the investment advisor to Bristol. Paul L. Kessler, as Director of Bristol and CEO of Bristol Capital Advisors,
LLC, has voting and investment control over the securities reported herein that are held by Bristol. The address of Bristol Investment Fund, Ltd. is 1090 Center Drive, Park City, UT 84098. We do not have a material
 relationship with the Selling Stockholder other than as a result of the ownership of our Common Stock or other securities.

(12) Consists of (i) 56,690 shares of Common Stock;
 and (ii) 113,380 shares of Common Stock issuable upon the exercise of January 2026 Warrants issued in connection with the Private
 Placement being registered for resale pursuant to the registration statement of which this prospectus forms a part. The Selling
 Stockholder's warrants prohibit the exercise of such warrants if, after giving effect to such exercise, it would result in
 the Selling Stockholder's, including any person or entity whose beneficial ownership would be attributable to the Selling Stockholder,
 beneficial ownership exceeding the applicable Beneficial Ownership Limitation.

(13) The Common Stock and other securities are held
 by Lind Global Fund III LP and Lind Global Fund II LP ()"*Lind* "). Lind is managed by its general partner,
 Lind Global Partners III LLC, which is managed by its investment manager, The Lind Partners, LLC. Each of Lind Partners, LLC, Lind
 Global Partners III LLC, and Jeff Easton also have voting or investment control over the securities reported herein
 that are held by Lind. Mr. Easton disclaims beneficial ownership over the securities listed except to the extent
 of his pecuniary interest therein. The address of Lind is 444 Madison Ave, Floor 41, New York, NY 10022.
 We do not have a material relationship with the Selling Stockholder other than as a result of the ownership of our Common Stock or
 other securities.

(14) Consists of (i) 50,866 shares of Common Stock;
 and (ii) 161,232 shares of Common Stock issuable upon the exercise of outstanding warrants, including 158,732 shares of Common Stock
 issuable upon the exercise of January 2026 Warrants issued in connection with the Private Placement being registered for resale pursuant
 to the registration statement of which this prospectus forms a part. The Selling Stockholder's warrants prohibit the exercise
 of such warrants if, after giving effect to such exercise, it would result in the Selling Stockholder's, including any person
 or entity whose beneficial ownership would be attributable to the Selling Stockholder, beneficial ownership exceeding the applicable
 Beneficial Ownership Limitation.

(15) The number of shares beneficially owned prior to this offering consist
 of shares of Common Stock issuable upon exercise of placement agent warrants which have been issued as compensation. Orsium
 Capital LLC, the authorized agent to Augustus Trading LLC, has discretionary authority to vote and dispose of the securities held
 by Augustus Trading LLC and may be deemed to be the beneficial owner (as determined under Section 13(d) of the Exchange Act) of these
 securities. Olivier Morali, in his capacity as managing member of Orsium Capital LLC, may also be deemed to have investment discretion
 and voting power over the shares held by Augustus Trading LLC. Orsium Capital LLC and Mr. Morali each disclaims any beneficial ownership
 of these securities.

(16) Consists of 33,898 shares of Common Stock issuable
 upon the exercise of outstanding warrants, including 14,759 shares of Common Stock issuable upon the exercise of the January 2026 Warrants
 issued as compensation in connection with the Private Placement and being registered for resale pursuant to the registration statement
 of which this prospectus forms a part. The Selling Stockholder's warrants prohibit the exercise of such warrants if, after giving
 effect to such exercise, it would result in the Selling Stockholder's, including any person or entity whose beneficial ownership
 would be attributable to the Selling Stockholder, beneficial ownership exceeding the applicable Beneficial Ownership Limitation.

(17) The Selling Stockholder is affiliated with the Placement
 Agent, a registered broker-dealer with a registered address of H.C. Wainwright & Co., LLC, 430 Park Ave, 3rd Floor, New York, NY 10022.
 The Placement Agent acted as our placement agent in the Warrant Inducement. The Selling Stockholder has sole voting and dispositive power
 over the securities held, acquired the securities in the ordinary course of business and, at the time the securities were acquired, the
 Selling Stockholder had no agreement or understanding, directly or indirectly, with any person to distribute such securities.

(18) Consists of 24,256 shares of Common Stock issuable
 upon the exercise of outstanding warrants, including 7,250 shares of Common Stock issuable upon the exercise of the January 2026 Warrants
 issued as compensation in connection with the Private Placement and being registered for resale pursuant to the registration statement
 of which this prospectus forms a part. The Selling Stockholder's warrants prohibit the exercise of such warrants if, after giving
 effect to such exercise, it would result in the Selling Stockholder's, including any person or entity whose beneficial ownership
 would be attributable to the Selling Stockholder, beneficial ownership exceeding the applicable Beneficial Ownership Limitation.

(19) The number of shares beneficially owned prior to this
 offering consist of shares of Common Stock issuable upon exercise of placement agent warrants which have been issued as compensation.
 The securities are held by Wilson Drive Holdings LLC with a registered address of 600 Lexington Avenue, 32nd Floor, New York, NY 10022.
 Craig Schwabe is the managing member Wilson Drive Holdings LLC and has the power to vote and dispose the securities held. Neither Wilson
 Drive Holdings LLC nor Mr. Schwabe is a broker-dealer. Mr. Schwabe is affiliated with the following registered broker-dealers: H.C. Wainwright
 & Co., LLC, Rodman & Renshaw LLC and Stockblock Securities LLC. The securities were acquired in the ordinary course of business
 and, at the time the securities were acquired, the selling stockholder had no agreement or understanding, directly or indirectly, with
 any person to distribute such securities. Mr. Schwabe has not held any position or office or has had any other material relationship with
 the Company (or its predecessors or affiliates) during the past three years.

(20) Consists of 2,604 shares of Common Stock issuable
 upon the exercise of outstanding warrants, including 777 shares of Common Stock issuable upon the exercise of the January 2026 Warrants
 issued as compensation in connection with the Private Placement and being registered for resale pursuant to the registration statement
 of which this prospectus forms a part. The Selling Stockholder's warrants prohibit the exercise of such warrants if, after giving
 effect to such exercise, it would result in the Selling Stockholder's, including any person or entity whose beneficial ownership
 would be attributable to the Selling Stockholder, beneficial ownership exceeding the applicable Beneficial Ownership Limitation.

(21) Consists of 771 shares of Common Stock issuable upon the exercise of outstanding warrants, including 230 shares of Common Stock issuable upon the exercise of the January 2026 Warrants issued as compensation in connection with the Private Placement and being registered for resale pursuant to the registration statement of which this prospectus forms a part. The Selling Stockholder's warrants prohibit the exercise of such warrants if, after giving effect to such exercise, it would result in the Selling Stockholder's, including any person or entity whose beneficial ownership would be attributable to the Selling Stockholder, beneficial ownership exceeding the applicable Beneficial Ownership Limitation.

**PLAN OF DISTRIBUTION**

Each Selling Stockholder of the securities and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their securities covered hereby on Nasdaq or any other stock exchange, market or trading facility on which the securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling securities:

● ordinary
 brokerage transactions and transactions in which the broker dealer solicits purchasers;

● block
 trades in which the broker dealer will attempt to sell the securities as agent but may position and resell a portion of the block
 as principal to facilitate the transaction;

● purchases
 by a broker dealer as principal and resale by the broker dealer for its account;

● an
 exchange distribution in accordance with the rules of the applicable exchange;

● privately
 negotiated transactions;

● settlement
 of short sales;

● in
 transactions through broker dealers that agree with the Selling Stockholders to sell a specified number of such securities at a stipulated
 price per security;

● through
 the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

● a
 combination of any such methods of sale; or

● any
 other method permitted pursuant to applicable law.

The Selling Stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act, if available, rather than under this prospectus.

Broker dealers engaged by the Selling Stockholders may arrange for other brokers dealers to participate in sales. Broker dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2121; and in the case of a principal transaction a markup or markdown in compliance with FINRA Rule 2121.

In connection with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they assume. The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions, or loan or pledge the securities to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

The Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each Selling Stockholder has informed us that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the securities.

We are required to pay certain fees and expenses incurred by us incident to the registration of the securities. We have agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

We agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for us to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule of similar effect. The resale securities will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities with respect to the Common Stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the Common Stock by the Selling Stockholders or any other person. We will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

**LEGAL MATTERS**

The validity of the securities offered by this prospectus will be passed upon for us by Greenberg Traurig, LLP, Phoenix, Arizona.

**EXPERTS**

The consolidated financial statements as of and for the years ended December 31, 2024 and 2023, included in this prospectus, have been audited by Marcum LLP, an independent registered public accounting firm, as stated in their report (the report on the consolidated financial statements contains an explanatory paragraph regarding the Company's ability to continue as a going concern). Such financial statements are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed a registration statement on Form S-1, including exhibits, under the Securities Act of 1933, as amended, with respect to the securities offered by this prospectus. This prospectus does not contain all of the information included in the registration statement. For further information pertaining to us and our securities, you should refer to the registration statement and our exhibits.

In addition, we file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public on a website maintained by the SEC located at www.sec.gov. We also maintain a website at www.enveric.com. Through our website, we make available, free of charge, annual, quarterly and current reports, proxy statements and other information as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. The information contained on, or that may be accessed through, our website is not part of, and is not incorporated into, this prospectus.

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

**ENVERIC BIOSCIENCES, INC.**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

**Audited Consolidated Financial Statements**

---

| | |
|:---|:---|
| [Reports of Independent Registered Accounting Firm](#JA_001) (PCAOB Firm ID: Marcum LLP #688) | F-2 |
| [Consolidated Balance Sheets](#f_002) | F-3 |
| [Consolidated Statements of Operations and Comprehensive Loss](#f_003) | F-4 |
| [Consolidated Statements of Changes in Mezzanine Equity and Shareholders' Equity](#f_004) | F-5 |
| [Consolidated Statements of Cash Flows](#f_005) | F-7 |
| [Notes to Consolidated Financial Statements](#f_006) | F-8 |

---

**Unaudited Consolidated Financial Statements**

---

| | |
|:---|:---|
| [Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024](#vi_001) | F-31 |
| [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024](#vi_002) | F-32 |
| [Unaudited Condensed Consolidated Statements of Changes in Mezzanine Equity and Shareholders' Equity for the three and nine months ended September 30, 2025 and 2024](#vi_003) | F-33 |
| [Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024](#vi_005) | F-35 |
| [Notes to Consolidated Financial Statements](#vi_006) | F-36 |

---

**<u>Report of Independent Registered Public Accounting Firm</u>**

To the Shareholders and Board of Directors of

Enveric Biosciences, Inc.

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Enveric Biosciences, Inc. (the "Company") as of December 31, 2024 and 2023, the related consolidated statements of operations and comprehensive loss, changes in mezzanine equity and shareholders' equity and cash flows for the years ended December 31, 2024 and 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024 and 2023, in conformity with accounting principles generally accepted in the United States of America.

***Explanatory Paragraph – Going Concern***

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 1, the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 ****

***Basis for Opinion***

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

*Critical Audit Matters*

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Marcum LLP

We have served as the Company's auditor from 2021 through 2025.

Morristown, New Jersey

March 28, 2025 (except for the Second Reverse Stock Split effective as of October 23, 2025 described in Note 1 , as to which the date is February 9, 2026)

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2023** |
| **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;**Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $2241026 | $2287977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 493558 | 1293554 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **2734584** | **3581531** |
| &nbsp;&nbsp;&nbsp;**Other assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 305777 | 507377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 42182 | 210932 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other assets** | **347959** | **718309** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**3082543** | $**4299840** |
| **LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;**Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $521747 | $1218783 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 232891 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 732010 | 1075643 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment option liability | 1988 | 23608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant liability | 1100 | 25470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **1489736** | **2343504** |
| **Commitments and contingencies (Note 12)** |  |  |
| **Mezzanine equity** |  |  |
| &nbsp;&nbsp;&nbsp;Series C redeemable preferred stock, $0.01 par value, 100,000 shares authorized, and 0 shares issued and outstanding as of December 31, 2024 and 2023, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Redeemable non-controlling interest |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total mezzanine equity** |  |  |
| **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.01 par value, 20,000,000 shares authorized; Series B preferred stock, $0.01 par value, 3,600,000 shares authorized, 0 shares issued and outstanding as of December 31, 2024 and 2023, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value, 100,000,000 shares authorized, 56,501 and 15,219 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 565 | 152 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 108261264 | 100843091 |
| &nbsp;&nbsp;&nbsp;Stock subscription receivable |  | (1817640) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (106074505) | (96499518) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (594517) | (569749) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | **1592807** | **1956336** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities, mezzanine equity, and shareholders' equity** | $**3082543** | $**4299840** |

---

 ****

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

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2024** | **2023** |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | $6453505 | $8852021 |
| &nbsp;&nbsp;&nbsp;Research and development | 2841272 | 7252437 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 337489 | 343982 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | 9632266 | 16448440 |
| **Loss from operations** | (9632266) | (16448440) |
| **Other income (expense)** |  |  |
| &nbsp;&nbsp;&nbsp;Inducement expense, net |  | (1848235) |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | 24370 | 94396 |
| &nbsp;&nbsp;&nbsp;Change in fair value of investment option liability | 21620 | 208752 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability |  | 727000 |
| &nbsp;&nbsp;&nbsp;Other income | 20000 |  |
| &nbsp;&nbsp;&nbsp;Interest income, net | 219 | 3708 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other income (expense)** | 66209 | (814379) |
| **Net loss before income taxes** | (9566057) | (17262819) |
| Income tax expense | (8930) | (28913) |
| **Net loss** | (9574987) | (17291732) |
| &nbsp;&nbsp;&nbsp;Less preferred dividends attributable to non-controlling interest |  | 19041 |
| &nbsp;&nbsp;&nbsp;Less deemed dividends attributable to accretion of embedded derivative at redemption value |  | 147988 |
| **Net loss attributable to shareholders** | (9574987) | (17458761) |
| **Other comprehensive loss** |  |  |
| Foreign currency translation | (24768) | (33015) |
| **Comprehensive loss** | $(9599755) | $(17491776) |
| Net loss per share - basic and diluted | $(228.48) | $(1455.62) |
| Weighted average shares outstanding, basic and diluted | 41908 | 11994 |

---

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

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **FOR THE YEAR ENDED DECEMBER 31, 2024** | **FOR THE YEAR ENDED DECEMBER 31, 2024** | **FOR THE YEAR ENDED DECEMBER 31, 2024** | **FOR THE YEAR ENDED DECEMBER 31, 2024** | **FOR THE YEAR ENDED DECEMBER 31, 2024** | **FOR THE YEAR ENDED DECEMBER 31, 2024** | **FOR THE YEAR ENDED DECEMBER 31, 2024** |
|  | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Additional Paid-In**<br> **Capital** | **Subscription**<br> **Receivable** | **Accumulated**<br> **Deficit** | **Accumulated Other Comprehensive**<br> **Loss** | **Total<br> Shareholders'**<br> **Equity** |
| **Balance at January 1, 2024** | 15219 | $152 | $100843091 | $(1817640) | $(96499518) | $(569749) | $&nbsp;&nbsp;&nbsp;&nbsp; 1956336 |
| &nbsp;&nbsp;&nbsp;Common stock sold under the Equity Distribution Agreement, net of offering costs of $583,713 | 9267 | 93 | 1808696 |  |  |  | 1808789 |
| &nbsp;&nbsp;&nbsp;Issuance of direct offering shares (see Note 8) | 3816 | 38 | 771255 |  |  |  | 771293 |
| &nbsp;&nbsp;&nbsp;Exercise of Inducement Warrants for common stock | 10856 | 109 | 2676871 |  |  |  | 2676980 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 1562392 |  |  |  | 1562392 |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for vested RSU | 153 | 1 | (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the subscription receivable related to the issuance of Inducement Warrants, net of offering costs of $12,821 |  |  | (12821) | 280500 |  |  | 267679 |
| &nbsp;&nbsp;&nbsp;Proceeds from the subscription receivable related to the exercise of warrants and preferred investment options and issuance of common stock in abeyance | 3912 | 39 | (39) | 1537140 |  |  | 1537140 |
| &nbsp;&nbsp;&nbsp;Common stock sold under the Purchase Agreement, net of offering costs of $471,756 | 13278 | 133 | 611820 |  |  |  | 611953 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation loss |  |  |  |  |  | (24768) | (24768) |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (9574987) |  | (9574987) |
| **Balance at December 31, 2024** | 56501 | $565 | $108261264 | $— | $(106074505) | $(594517) | $1592807 |

---

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

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** | **FOR THE YEAR ENDED DECEMBER 31, 2023** |
|  | **Redeemable Non-controlling Interest** | **Redeemable Non-controlling Interest** | | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Total Mezzanine**<br> **Equity** | **Shares** | **Amount** | **Additional Paid-In**<br> **Capital** | **Subscription**<br> **Receivable** | **Accumulated**<br> **Deficit** | **Accumulated Other Comprehensive**<br> **Loss** | **Total<br> Shareholders'**<br> **Equity** |
| **Balance at January 1, 2023** | 1000 | $885028 | $885028 | 11546 | $115 | $94416329 | $— | $(79207786) | $(536734) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14671924 |
| &nbsp;&nbsp;&nbsp;Preferred dividends attributable to redeemable non-controlling interest |  | 19041 | 19041 |  |  | (19041) |  |  |  | (19041) |
| &nbsp;&nbsp;&nbsp;Accretion of embedded derivative to redemption value |  | 147988 | 147988 |  |  | (147988) |  |  |  | (147988) |
| &nbsp;&nbsp;&nbsp;Redemption of Series A preferred stock | (1000) | (1052057) | (1052057) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  |  |  |  | 2150160 |  |  |  | 2150160 |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for vested RSU |  |  |  | 576 | 6 | (6) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for deferred offering costs |  |  |  | 775 | 8 | 255099 |  |  |  | 255107 |
| &nbsp;&nbsp;&nbsp;Issuance of Inducement Warrants, net of offering costs of $239,302 |  |  |  |  |  | 1967424 | (280500) |  |  | 1686924 |
| &nbsp;&nbsp;&nbsp;Induced conversion of warrants and preferred investment options |  |  |  |  |  | 683997 |  |  |  | 683997 |
| &nbsp;&nbsp;&nbsp;Exercise of warrants and preferred investment options |  |  |  | 2322 | 23 | 1537117 | (1537140) |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation loss |  |  |  |  |  |  |  |  | (33015) | (33015) |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  |  |  | (17291732) |  | (17291732) |
| **Balance at December 31, 2023** |  | $— | $— | 15219 | $152 | $100843091 | $(1817640) | $(96499518) | $(569749) | $1956336 |

---

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

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2024** | **2023** |
| **Cash Flows From Operating Activities:** |  |  |
| Net loss | $(9574987) | $(17291732) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | (24370) | (94396) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of investment option liability | (21620) | (208752) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liability |  | (727000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 1562392 | 2150160 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inducement expense |  | 1848235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred offering costs expensed | 418200 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right of use asset |  | 64048 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles | 168750 | 168754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 168739 | 175228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property and equipment |  | (4206) |
| &nbsp;&nbsp;&nbsp;**Change in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 178496 | (6857) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (834630) | (103848) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 232891 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use operating lease asset and obligation |  | (64045) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (7726139) | (14094411) |
| **Cash Flows From Investing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment |  | (5180) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of property and equipment |  | 16847 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities |  | 11667 |
| **Cash Flows From Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the subscription receivable related to the issuance of Inducement Warrants and the exercise of warrants and preferred investment options | 1804819 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of Inducement Warrants | 2676980 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from common stock sold under the Equity Distribution Agreement, net of offering costs | 2290186 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from common stock sold under the Purchase Agreement, net of offering costs | 1083706 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment for offering costs previously accrued | (181857) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment for equity distribution offering costs |  | (291084) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption of Series A Preferred Stock |  | (1052057) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 7673834 | (1343141) |
| Effect of foreign exchange rate on changes on cash | 5354 | (10022) |
| Net decrease in cash | (46951) | (15435907) |
| Cash at beginning of year | 2287977 | 17723884 |
| Cash at end of year | $2241026 | $2287977 |
| **Supplemental disclosure of cash flow transactions:** |  |  |
| Cash paid for interest | $— | $— |
| Income taxes paid | $5000 | $9507 |
| **Non-cash financing and investing activities:** |  |  |
| Stock subscription receivable | $— | $1817640 |
| Offering costs accrued not paid | $— | $182724 |
| Warrants issued for offering costs | $— | $77991 |
| Issuance of common shares for offering costs | $771293 | $255107 |
| Deferred offering costs charged to offering costs | $612000 | $— |
| Induced conversion of warrants and preferred investment options | $— | $683997 |
| Preferred dividends attributable to redeemable non-controlling interest | $— | $19041 |
| Accretion of embedded derivative to redemption value | $— | $147988 |

---

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

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1. BUSINESS AND LIQUIDITY AND OTHER UNCERTAINTIES**

***Nature of Operations***

Enveric Biosciences, Inc. ("Enveric" or the "Company") is a biotechnology company dedicated to the development of novel neuroplastogenic small-molecule therapeutics for the treatment of depression, anxiety, addiction, and other psychiatric disorders. The head office of the Company is located in Naples, Florida. The Company has the following wholly-owned subsidiaries: Jay Pharma Inc. ("Jay Pharma"), 1306432 B.C. Ltd., 1236567 B.C. Unlimited Liability Company, MagicMed Industries, Inc. ("MagicMed"), Enveric Biosciences Canada Inc., Akos Biosciences, Inc. ("Akos"), and Enveric Therapeutics, Pty. Ltd. ("Enveric Therapeutics").

Enveric's lead program, the EVM301 Series, and its lead drug candidate, EB-003, are intended to offer a first-in-class, new approach to the treatment of difficult-to-address mental health disorders, mediated by the promotion of neuroplasticity and without also inducing hallucinations in the patient. Previously, Enveric was developing the EVM201 Series, and its lead drug candidate EB-002 (formerly EB-373), for the treatment of neuropsychiatric disorders. The EVM201 series comprised next generation synthetic prodrugs of the active metabolite, psilocin. Recently, Enveric out-licensed the EVM201 Series program to MycoMedica Life Sciences, who will seek to develop, manufacture, and commercialize EB-002, in exchange for certain development and milestone payments to Enveric. Our primary focus is to develop our lead asset EB-003 in the EVM301 Series.

***Reverse Stock Split***

 ****

The Company effected a 1-for-15 reverse stock split ("Reverse Stock Split") on January 27, 2025, which began trading on a split-adjusted basis on January 29, 2025, pursuant to which every 15 shares of the Company's issued and outstanding common stock were reclassified as one share of common stock. The Reverse Stock Split had no impact on the par value of the Company's common stock or the authorized number of shares of common stock. Unless otherwise indicated, all share and per share information in these consolidated financial statements are retroactively adjusted to reflect the Reverse Stock Split, prior to the rounding of any fractional shares. Any fractional share resulting from the Reverse Stock Split were rounded up to the next whole number of shares, upon which 87,131 roundup shares were issued in January 2025.

The Company effected a 1-for-12 reverse stock split ("Second Reverse Stock Split") on October 23, 2025, which began trading on a split-adjusted basis on October 28, 2025, pursuant to which every 12 shares of the Company's issued and outstanding Common Stock were reclassified as one share of Common Stock. The Second Reverse Stock Split had no impact on the par value of the Company's Common Stock or the authorized number of shares of Common Stock. Unless otherwise indicated, all share and per share information prior to the Second Reverse Stock Split date of October 28, 2025 in these unaudited condensed consolidated financial statements are retroactively adjusted to reflect the Second Reverse Stock Split, prior to the rounding of any fractional shares. Any fractional share resulting from the Second Reverse Stock Split were rounded up to the next whole number of shares, upon which 78,682 roundup shares were issued in November 2025.

***Going Concern, Liquidity and Other Uncertainties***

The Company has incurred losses since inception resulting in an accumulated deficit of $106,074,505 as of December 31, 2024 and further losses are anticipated in the development of its business. Further, the Company has operating cash outflows of $7,726,139 for the year ended December 31, 2024. For the year ended December 31, 2024, the Company had a loss from operations of $9,632,266. Since inception, being a research and development company, the Company has not yet generated revenue and the Company has incurred continuing losses from its operations. The Company's operations have been funded principally through the issuance of equity. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these consolidated financial statements.

In assessing the Company's ability to continue as a going concern, the Company monitors and analyzes its cash and its ability to generate sufficient cash flow in the future to support its operating and capital expenditure commitments. At December 31, 2024, the Company had cash of $2,241,026 and working capital of $1,244,848. In January 2025, the Company raised net proceeds of approximately $4.2 million from a public stock offering. See Note 14. The Company's current cash on hand is not sufficient enough to satisfy its operating cash needs for the 12 months from the filing of this Annual Report on Form 10-K. These conditions raise substantial doubt regarding the Company's ability to continue as a going concern for a period of one year after the date the consolidated financial statements are issued. Management's plan to alleviate the conditions that raise substantial doubt include raising additional working capital through public or private equity or debt financings or other sources, and may include additional collaborations with third parties as well as disciplined cash spending. Adequate additional financing may not be available to the Company on acceptable terms, or at all. Should the Company be unable to raise sufficient additional capital, the Company may be required to undertake further cost-cutting measures including delaying or discontinuing certain operating activities.

As a result of these factors, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern for a period of one year after the date of the consolidated financial statements are issued. The Company's consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***Nasdaq Notice***

On May 16, 2024, the Company received a letter from Nasdaq notifying the Company that for the prior 30 consecutive business days the bid price for the Company's common stock had closed below the minimum $1.00 per share requirement for continued inclusion on Nasdaq pursuant to Nasdaq Listing Rule 5550(a)(2) (the "Bid Price Rule"). The deficiency letter did not result in the immediate delisting of the Company's common stock from Nasdaq. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided an initial period of 180 calendar days, until November 12, 2024, to regain compliance with the Bid Price Rule. On November 20, 2024, Nasdaq issued a delisting notice, indicating that the Company did not satisfy the Bid Price Rule by the compliance date and that unless the Company requested an appeal of this determination before Nasdaq's listing qualifications panel, the Company's common stock would be scheduled for delisting from Nasdaq and trading suspended. The Company appealed the determination before Nasdaq's listing qualifications panel and on December 30, 2024, the Company received an extension until May 19, 2025, to regain compliance with Bid Price Rule. The Company has applied for a second 180-day compliance period. The Company conducted the Reverse Stock Split on January 27, 2025, which became effective January 29, 2025, in order to regain compliance with the Minimum Bid Price Requirement. The Company has notified NASDAQ on February 11, 2025 that the Company has completed steps to cure the deficiency and regain compliance. On March 4, 2025, the Company received notice from the Nasdaq Office of General Counsel that the Company regained compliance with the Bid Price Rule.

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

 ****

***Basis of Presentation and Principal of Consolidation***

The accompanying consolidated financial statements have been prepared in accordance and in conformity with U.S. generally accepted accounting principles ("GAAP") and the applicable rules and regulations of the Securities and Exchange Commission (the "SEC") regarding consolidated financial information. All intercompany transactions have been eliminated in consolidation.

 ****

***Use of Estimates***

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and expenses during the periods reported. By their nature, these estimates are subject to measurement uncertainty and the effects on the financial statements of changes in such estimates in future periods could be significant. Significant areas requiring management's estimates and assumptions include determining the fair value of transactions involving common stock, the valuation of warrants and preferred investment options, the valuation of stock-based compensation and accruals associated with third party providers supporting research and development efforts. Actual results could differ from those estimates.

 ****

***Foreign Currency Translation***

From inception through December 31, 2024, the reporting currency of the Company was the United States dollar while the functional currency of certain of the Company's subsidiaries was the Canadian dollar or the Australian dollar. For the years ended December 31, 2024 and 2023, the Company engaged in a number of transactions denominated in Canadian dollars and Australian dollars. As a result, the Company is subject to exposure from changes in the exchange rates of the Canadian dollar and Australian dollar against the United States dollar.

The Company translates the assets and liabilities of its Canadian subsidiaries and Australian subsidiary into the United States dollar at the exchange rate in effect on the balance sheet date. Revenues and expenses are translated at the average exchange rate in effect during each monthly period. Unrealized translation gains and losses are recorded as foreign currency translation gain (loss), which is included in the consolidated statements of shareholders' equity as a component of accumulated other comprehensive loss.

The Company has not entered into any financial derivative instruments that expose it to material market risk, including any instruments designed to hedge the impact of foreign currency exposures. The Company may, however, hedge such exposure to foreign currency exchange fluctuations in the future.

Adjustments that arise from exchange rate changes on transactions denominated in a currency other than the local currency are included in other comprehensive loss in the consolidated statements of operations and comprehensive loss as incurred.

 ****

***Cash and Cash Equivalents***

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents as of December 31, 2024 and 2023.

 ****

 ****

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

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***Concentration of Credit Risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the federal depository insurance coverage of $250,000 in the United States, AUD$250,000 in Australia and C$100,000 in Canada. The Company has not experienced losses on these accounts, and management believes the Company is not exposed to significant risks on such accounts. As of December 31, 2024, the Company had greater than $250,000 at United States financial institutions, less than AUD$250,000 at Australian financial institutions, and less than C$100,000 at Canadian financial institutions. As of December 31, 2023, the Company had greater than $250,000 at United States financial institutions, less than AUD$250,000 at Australian financial institutions, and greater than C$100,000 at Canadian financial institutions.

 ****

***Comprehensive Loss***

Comprehensive loss consists of two components, net loss and other comprehensive loss. Other comprehensive loss refers to revenue, expenses, gains, and losses that under GAAP are recorded as an element of shareholders' equity but are excluded from net loss. Other comprehensive loss consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency.

 ****

***Intangible Assets***

Intangible assets consist of a license agreement. The cost of license agreements is amortized over the economic life of the license. The Company assesses the carrying value of its intangible assets for impairment each year.

 ****

***Property & Equipment***

Property and equipment are recorded at cost. Major property additions, replacements, and betterments are capitalized, while maintenance and repairs that do not extend the useful lives of an asset or add new functionality are expensed as incurred. Depreciation and amortization are recorded using the straight-line method over the respective estimated useful lives of the Company's long-lived assets. The estimated useful lives are typically 3 to 5 years for office furniture and equipment and are depreciated on a straight-line basis.

 ****

***Deferred Offering Costs***

The Company allocates offering costs to the different components of the capital raise on a pro rata basis. Any offering costs allocated to common stock are charged directly to additional paid-in capital. Any offering costs allocated to warrant liabilities are charged to general and administrative expenses on the Company's consolidated statement of operations and comprehensive loss.

The Company complies with the requirements of ASC Topic 340, *Other Assets and Deferred Costs* ("ASC 340") and SAB 5A *- Expenses of Offering*. Offering costs, which consist mainly of legal, accounting and consulting fees directly attributable to the issuance of an equity contract to be classified in equity are recorded as a reduction in equity. For the year ended December 31, 2024, the Company incurred $494,292 in deferred offering costs in connection with the Equity Distribution Agreement (the "Distribution Agreement"), with Canaccord Genuity LLC ("Canaccord") and the Purchase Agreement (the "Purchase Agreement") with Lincoln Park Capital Fund, LLC ("Lincoln Park"). These deferred offering costs were proportionately offset against the total proceeds from the issuance of common stock available under the agreements and the Company expensed any remaining balance of deferred offering costs when the agreements were terminated. As of December 31, 2024, the Company expensed the remaining balance of deferred offering costs related to Lincoln Park as the Company no longer intends to use this purchase agreement, reflected in general and administration expenses in the accompanying consolidated statement of operations. As of December 31, 2024, the balance of deferred offering costs is $0.

For the year ended December 31, 2023, the Company incurred $567,603 in deferred offering costs in connection with the Distribution Agreement, with Canaccord and the Purchase Agreement with Lincoln Park. These deferred offering costs will be proportionately offset against the total proceeds from the issuance of common stock available under the agreements and the Company will expense any remaining balance of deferred offering costs if the agreements are terminated. For the year ended December 31, 2023, there were no issuances of common stock under the agreements resulting in the deferral of offering costs.

 ****

***Warrant Liability and Investment Options***

The Company evaluates all of its financial instruments, including issued stock purchase warrants and investment options, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 "Distinguishing Liabilities from Equity" ("ASC 480") and FASB ASC Topic 815, "Derivatives and Hedging" ("ASC 815"). The Company accounts for warrants and investment options for shares of the Company's common stock that are not indexed to its own stock as derivative liabilities at fair value on the consolidated balance sheets. The Company accounts for common stock warrants and investment options with put options as liabilities under ASC 480. Such warrants and investment options are subject to remeasurement at each consolidated balance sheet date and any change in fair value is recognized as a component of other expense on the consolidated statements of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of such common stock warrants and investment options. At that time, the portion of the warrant liability and investment options related to such common stock warrants will be reclassified to additional paid-in capital.

 ****

 ****

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

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***Modification and Inducement of Warrants and Investment Options***

A change in any of the terms or conditions of warrants is accounted for as a modification. For a warrant modification accounted for under ASC 815, the effect of a modification shall be measured as the difference between the fair value of the modified warrant over the fair value of the original warrant immediately before its terms are modified, measured based on the fair value of the shares and other pertinent factors at the modification date. The accounting for incremental fair value of warrants is based on the specific facts and circumstances related to the modification. When a modification is directly attributable to equity offerings, the incremental change in fair value of the warrants are accounted for as equity issuance costs.

The Company accounts for the inducement to exercise warrants in accordance with ASC Subtopic 470-20-40 "Debt with Conversion and Other Options" ("ASC 470-20-40"). ASC 470-20-40 requires the recognition through earnings of an inducement charge equal to the fair value of the consideration delivered in excess of the consideration issuable under the original conversion terms. Therefore, the Company recognized a loss on the warrant inducement for the incremental change of the warrants related to the reduced exercise price and the issuance of new warrants as these components induced the holders to exercise the warrants.

 ****

***Derivative Liability***

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC 815. For derivative financial instruments that are accounted for as assets or liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as assets or liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the consolidated balance sheets as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

 ****

***Research and Development***

Research and development expenses are charged to operations as incurred. Research and development expenses include, among other things, internal and external costs associated with preclinical development, pre-commercialization manufacturing expenses, and clinical trials. The Company accrues for costs incurred as the services are being provided by monitoring the status of the trial or services provided and the invoices received from its external service providers. In the case of clinical trials, a portion of the estimated cost normally relates to the projected cost to treat a patient in the trials, and this cost is recognized based on the number of patients enrolled in the trial. As actual costs become known, the Company adjusts its accruals accordingly.

 ****

***Research and Development Tax Incentive Receivable***

The Company, through its wholly-owned subsidiary in Australia, participates in the Australian research and development tax incentive program, such that a percentage of the Company's qualifying research and development expenditures are reimbursed by the Australian government, and such incentives are reflected as a reduction of research and development expense. The Australian research and development tax incentive is recognized when there is reasonable assurance that the incentive will be received, the relevant expenditure has been incurred and the amount of the consideration can be reliably measured. At each period end, management estimates the reimbursement available to the Company based on available information at the time.

 ****

***Income Taxes***

The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. The provision for income taxes is based upon income or loss after adjustment for those permanent items that are not considered in the determination of taxable income. Deferred income taxes represent the tax effects of differences between the financial reporting and tax basis of the Company's assets and liabilities at the enacted tax rates in effect for the years in which the differences are expected to reverse.

The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized. Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liabilities. In management's opinion, adequate provisions for income taxes have been made. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement. A liability for "unrecognized tax benefits" is recorded for any tax benefits claimed in the Company's tax returns that do not meet these recognition and measurement standards. As of December 31, 2024 and 2023, no liability for unrecognized tax benefits was required to be recorded.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The Company's policy for recording interest and penalties associated with tax audits is to record such items as a component of operating expenses. There were no amounts accrued for penalties and interest for the years ended December 31, 2024 and 2023. The Company does not expect its uncertain tax positions to change during the next twelve months. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position.

The Company has identified its United States, Canadian and Australian federal tax returns, and its state and provincial tax returns in Florida, Massachusetts, New Jersey, Pennsylvania, and Ontario, CA as its "major" tax jurisdictions. The Company is in the process of filing its United States federal and state, Australian federal, and Canadian corporate tax returns for the year ended December 31, 2024. Net operating losses for these periods will not be available to reduce future taxable income until the returns are filed.

 ****

***Stock-Based Compensation***

The Company follows ASC 718, Compensation - Stock Compensation, which addresses the accounting for stock-based payment transactions, requiring such transactions to be accounted for using the fair value method. Awards of shares for property or services are recorded at the more readily measurable of the estimated fair value of the stock award and the estimated fair value of the service. The Company uses the Black-Scholes option-pricing model to determine the grant date fair value of certain stock-based awards under ASC 718. The assumptions used in calculating the fair value of stock-based awards represent management's reasonable estimates and involve inherent uncertainties and the application of management's judgment. Fair value of restricted stock units or restricted stock awards is determined by the closing price per share of the Company's common stock on the date of award grant.

The estimated fair value is amortized as a charge to earnings on a straight-line basis, for awards or portions of awards that do not require specified milestones or performance criteria as a vesting condition and also depending on the terms and conditions of the award, and the nature of the relationship of the recipient of the award to the Company. The Company records the grant date fair value in line with the period over which it was earned. For employees and consultants, this is typically considered to be the vesting period of the award. The Company accounts for forfeitures as they occur.

The estimated fair value of awards that require specified milestones or recipient performance are charged to expense when such milestones or performance criteria are probable to be met.

Restricted stock units, restricted stock awards, and stock options are granted at the discretion of the Compensation Committee of the Company's board of directors (the "Board of Directors"). These awards are restricted as to the transfer of ownership and generally vest over the requisite service periods, typically over a 12 to 48-month period. A significant portion of these awards may include vesting terms that include, without limitation, defined volume weighted average price levels being achieved by the Company's Common Stock, specific performance milestones, employment, or engagement by the Company, with no assurances of achievement of any such vesting conditions, if applicable.

The value of RSU's is equal to the product of the number of units awarded, multiplied by the closing price per share of the Company's Common Stock on the date of the award. The terms and conditions of each RSU is defined in the RSU agreement and includes vesting terms that consist of any or all of the following: immediate vesting, vesting over a defined period of time, vesting based on achievement of a defined volume weighted average price levels at specified times, vesting based on achievement of specific performance milestones within a specific time frame, change of control, termination of the employee without cause by the Company, resignation of the employee with good cause. The value assigned to each RSU is charged to expense based on the vesting terms, as follows: value of RSU's that vest immediately are charged to expense on the date awarded, value of RSU's that vest based upon time, or achievement of stock price levels over a period of time are charged to expense on a straight line basis over the time frame specified in the RSU and the value of RSU's that vest based upon achievement of specific performance milestones are charged to expense during the period that such milestone is achieved. Vested RSU's may be converted to shares of Common Stock of an equivalent number upon either the termination of the recipient's employment with the Company, or in the event of a change in control. If the recipient is not an employee, such person's engagement with the Company must either be terminated prior to such conversion of RSU's to shares of Common Stock, or in the event of a change in control. Furthermore, as required by Section 409A of the Internal Revenue Code, if the recipient is a "specified employee" (generally, certain officers and highly compensated employees of publicly traded companies), such recipient may only convert vested RSU's into shares of Common Stock no earlier than the first day of the seventh month following such recipients termination of employment with the Company, or the event of change in control.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The value of RSA's is equal to the product of the number of restricted shares awarded, multiplied by the closing price per share of the Company's Common Stock on the date of the award. The terms and conditions of each RSA is defined in the RSA agreement and includes vesting terms that consist of any or all of the following: immediate vesting, vesting over a defined period of time, or vesting based on achievement of a defined volume weighted average price levels at specified times. Upon vesting, the recipient may receive restricted stock which includes a legend prohibiting sale of the shares during a restriction period that is defined in the RSA agreement. Termination of employment by or engagement with the Company is not required for the recipient to receive restricted shares of Common Stock. The value assigned to each RSA is charged to expense based on the vesting terms, as follows: value of RSA's that vest immediately are charged to expense on the date awarded, value of RSA's that vest based upon time, or achievement of stock price levels over a period of time are charged to expense on a straight-line basis over the time frame specified in the RSA.

 ****

***Net Loss per Share***

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants (using the treasury stock method). The computation of basic net loss per share for the years ended December 31, 2024 and 2023 excludes potentially dilutive securities. The computations of net loss per share for each period presented is the same for both basic and fully diluted. In accordance with ASC 260 "Earnings per Share" ("ASC 260"), penny warrants were included in the calculation of weighted average shares outstanding for the purposes of calculating basic and diluted earnings per share. In accordance with ASC 260, 1,216 RSAs that were fully vested on December 31, 2024 were included in basic and dilutive earnings per share as there were no remaining contingencies for these shares to be issued as of December 31, 2024. The shares were issued during January 2025.

Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share the years ended December 31, 2024 and 2023 because the effect of their inclusion would have been anti-dilutive.

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2023** |
| Warrants to purchase shares of common stock | 4668 | 15528 |
| Restricted stock units - vested and unissued | 115 | 116 |
| Restricted stock units - unvested | 3992 | 772 |
| Common stock in abeyance |  | 3912 |
| Investment options to purchase shares of common stock | 389 | 389 |
| Options to purchase shares of common stock | 128 | 168 |
| Total potentially dilutive securities | 9292 | 20885 |

---

 ****

***Fair Value of Financial Instruments***

The fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820"), approximates the carrying amounts in the balance sheets, excluding the warrants and preferred investment option liabilities, primarily due to their short-term nature.

 ****

***Fair Value Measurements***

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value:

Level 1 - Valuations based on quoted prices for identical assets and liabilities in active markets.

Level 2 - Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Valuations based on unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

For certain financial instruments, including cash and accounts payable, the carrying amounts approximate their fair values as of December 31, 2024 and 2023 because of their short-term nature.

 ****

 ****

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

 ****

***Leases***

Operating lease assets are included within right-of-use operating lease asset and operating lease liabilities are included in current portion of right-of-use operating lease obligation and non-current portion of right-of-use operating lease obligation on the consolidated balance sheets as of December 31, 2024 and 2023. The Company has elected not to present short-term leases as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. Lease payments for short-term leases are recognized on a straight-line basis over the term of the lease. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company's leases do not provide an implicit rate of return, the Company used an incremental borrowing rate based on the information available at adoption date in determining the present value of lease payments.

The Company assesses whether an arrangement is a lease or contains a lease at inception. For arrangements considered leases or that contain a lease that is accounted for separately, the Company determines the classification and initial measurement of the right-of-use asset and lease liability at the lease commencement date, which is the date that the underlying asset becomes available for use. The Company has elected to account for non-lease components associated with its leases and lease components as a single lease component.

The Company recognizes a right-of-use asset, which represents the Company's right to use the underlying asset for the lease term, and a lease liability, which represents the present value of the Company's obligation to make payments arising over the lease term. The present value of the lease payments is calculated using either the implicit interest rate in the lease or an incremental borrowing rate*.*** The Company did not have any operating leases as of December 31, 2024 and 2023.

A lease qualifies as a finance lease if any of the following criteria are met at the inception of the lease: (i) there is a transfer of ownership of the leased asset to the Company by the end of the lease term, (ii) the Company holds an option to purchase the leased asset that it is reasonably certain to exercise, (iii) the lease term is for a major part of the remaining economic life of the leased asset, (iv) the present value of the sum of lease payments equals or exceeds substantially all of the fair value of the leased asset, or (v) the nature of the leased asset is specialized to the point that it is expected to provide the lessor no alternative use at the end of the lease term. All other leases are recorded as operating leases. Finance lease payments are bifurcated into (i) a portion that is recorded as interest expense and (ii) a portion that reduces the finance liability associated with the lease. The Company did not have any finance leases as of December 31, 2024 and 2023.

 ****

***Segment Reporting***

The Company determines its reporting units in accordance with FASB ASC 280, "Segment Reporting" ("ASC 280"). The Company evaluates a reporting unit by first identifying its operating segments under ASC 280. The Company then evaluates each operating segment to determine if it includes one or more components that constitute a business. If there are components within an operating segment that meet the definition of a business, the Company evaluates those components to determine if they must be aggregated into one or more reporting units. If applicable, when determining if it is appropriate to aggregate different operating segments, the Company determines if the segments are economically similar and, if so, the operating segments are aggregated.

The Company operates as one operating segment with a focus on developing novel neuroplastogenic small-molecule therapeutics for the treatment of depression, anxiety, and addiction disorders. The Company's Chief Executive Officer ("CEO") as the Chief Operating Decision Maker ("CODM"), manages and allocates resources to the operations of the Company on a consolidated basis. Consolidated loss from operations, which is reported in the accompanying consolidated statements of operations, is the measure of segment profit or loss that is regularly reviewed by the CODM. This enables the CEO to assess the overall level of available resources and determine how best to deploy these resources across research and development projects in line with the long-term company-wide strategic goals. Refer to the accompanying consolidated statements of operations for the presentation of consolidated loss from operations for the years ended December 31, 2024 and 2023. The measure of segment assets is reported in the accompanying consolidated balance sheets as "Total assets." There are no significant segment expenses as the expenses that are included in consolidated loss from operations are general and administrative and research and development.

 ****

***Recent Accounting Pronouncements***

In November 2023, the FASB issued ASU 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. ASU 2023-07 updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for all entities for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company has adopted ASU 2023-07, and this guidance did not have a material impact on the Company's consolidated financial statements.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, which amends the disclosure to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information and includes certain other amendments to improve the effectiveness of income tax disclosures. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. The Company has adopted ASU 2023-09 effective January 1, 2025. The Company is in the process of evaluating the impact of ASU 2023-09 on the Company's consolidated financial statements which will be reflected in the December 31, 2025 financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement (Topic 220): Reporting Comprehensive Income - Expense Disaggregation Disclosures, Disaggregation of Income Statement Expenses*, that requires public companies to disclose, in interim and reporting periods, additional information about certain expenses in the financial statements. In January 2025, the FASB issued ASU No. 2025-01, *Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective.* ASU 2024-03, as clarified by ASU 2025-01, is effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and is effective on either a prospective basis or retrospective basis. The Company is currently assessing the potential impacts of ASU 2024-03.

**NOTE 3. PREPAID EXPENSES AND OTHER CURRENT ASSETS**

As of December 31, 2024 and 2023, the prepaid expenses and other current assets of the Company consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2024** | **December 31,<br> 2023** |
| Prepaid value-added taxes | $233054 | $243429 |
| Prepaid other | 152894 | 62036 |
| Prepaid insurance | 107610 | 149559 |
| Prepaid research and development |  | 46320 |
| Deferred offering costs (see Note 8) |  | 567603 |
| Franchise tax receivable |  | 79258 |
| R&D tax incentive receivable |  | 145349 |
| **Total prepaid expenses and other current assets** | $493558 | $1293554 |

---

**NOTE 4. INTANGIBLE ASSETS** 

As of December 31, 2024 and 2023, the Company's intangible assets, which are located in the United States, consisted of:

SCHEDULE OF INTANGIBLE ASSETS

---

| | |
|:---|:---|
| **Definite lived intangible assets** |  |
| &nbsp;&nbsp;&nbsp;**Balance at January 1, 2023** | $379686 |
| &nbsp;&nbsp;&nbsp;Amortization | (168754) |
| &nbsp;&nbsp;&nbsp;**Balance at December 31, 2023** | $210932 |
| &nbsp;&nbsp;&nbsp;Amortization | (168750) |
| &nbsp;&nbsp;&nbsp;**Balance at December 31, 2024** | $42182 |

---

For identified definite lived intangible assets, there was no impairment expense during the years ended December 31, 2024 and 2023. For identified definite lived intangible assets, amortization expense amounted to $168,750 and $168,754 during the years ended December 31, 2024 and 2023, respectively.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The Company amortizes definite lived intangible assets on a straight-line basis over their estimated useful lives. Amortization expense of identified intangible assets based on the carrying amount as of December 31, 2024 is as follows:

SCHEDULE OF FINITE LIVED INTANGIBLE ASSETS AMORTIZATION EXPENSE

---

| | |
|:---|:---|
| **Year ending December 31,** | |
| 2025 | $42182 |
|  | $42182 |

---

**NOTE 5. PROPERTY AND EQUIPMENT**

Property and equipment consists of the following assets which are located in Calgary, Canada, with all amounts translated into U.S. dollars:

SCHEDULE OF PROPERTY AND EQUIPMENT NET OF ACCUMULATED DEPRECIATION

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Lab equipment | $769105 | $836709 |
| Computer equipment and leasehold improvements | 26073 | 28379 |
| Less: Accumulated depreciation | (489401) | (357711) |
| **Property and equipment, net of accumulated depreciation** | $**305777** | $**507377** |

---

Depreciation expense was $168,739 and $175,228 for the years ended December 31, 2024 and 2023, respectively.

**NOTE 6. ACCRUED LIABILITIES**

As of December 31, 2024 and December 31, 2023, the accrued liabilities of the Company consisted of the following:

SCHEDULE OF ACCRUED LIABILITIES

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2023** |
| Product development | $332421 | $139981 |
| Accrued salaries, wages, and bonuses | 1327 | 8889 |
| Professional fees | 103968 | 584810 |
| Accrued restructuring costs |  | 301645 |
| Accrued franchise taxes | 261100 | 22318 |
| Patent costs | 18000 | 18000 |
| Other | 15194 |  |
| **Total accrued expenses** | $732010 | $1075643 |

---

**NOTE 7. RELATED PARTY TRANSACTIONS**

As of December 31, 2024, there was $232,891 due to related parties. This balance is related to payments due to board members of the Company. Board member Sheila DeWitt has provided research and development services as an advisory consultant to the Company since May 2022. These services are provided as needed on an hourly basis. During the year ended December 31, 2024, the Company incurred $189,125 in service fees related to these services. Of these fees, $176,125 has been paid and $13,000 is included in due to related parties on the consolidated balance sheet as of December 31, 2024. There was no balance outstanding at December 31, 2023.

**NOTE 8. SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS**

 ****

***Authorized Capital***

The holders of the Company's common stock are entitled to one vote per share. Holders of common stock are entitled to receive ratably such dividends, if any, as may be declared by the Board of Directors out of legally available funds. Upon the liquidation, dissolution, or winding up of the Company, holders of common stock are entitled to share ratably in all assets of the Company that are legally available for distribution. As of December 31, 2024 and December 31, 2023, 100,000,000 shares of common stock and 20,000,000 shares of Preferred Stock were authorized under the Company's articles of incorporation.

 ****

***Equity Distribution Agreement***

On September 1, 2023, the Company entered into the Equity Distribution Agreement (the "Distribution Agreement"), with Canaccord, Genuity LLC ("Canaccord") pursuant to which the Company may offer and sell from time to time, through Canaccord as sales agent and/or principal, shares of common stock of the Company having an aggregate offering price of up to $10.0 million. Due to the offering limitations applicable to the Company and in accordance with the terms of the Distribution Agreement, the Company may offer Common Stock having an aggregate gross sales price of up to $2,392,514 pursuant to the prospectus supplement dated September 1, 2023 (the "Prospectus Supplement"). Subject to the terms and conditions of the Distribution Agreement, Canaccord may sell the Common Stock by any method permitted by law deemed to be an "at-the-market offering". The Company will pay Canaccord a commission equal to 3.0% of the gross sales price of the Common Stock sold through Canaccord under the Distribution Agreement and has also agreed to reimburse Canaccord for certain expenses. The Company may also sell Common Stock to Canaccord as principal for Canaccord's own account at a price agreed upon at the time of sale. Any sale of Common Stock to Canaccord as principal would be pursuant to the terms of a separate terms agreement between the Company and Canaccord.

 ****

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

On December 28, 2023, the Company entered into warrant exercise inducement offer letters (the "Inducement Letters") with certain holders (the "Holders") of the warrants that were modified in July 2022 (the "February 2022 Post-Modification Warrants") and registered direct ("RD") and the private investment in public equity ("PIPE") preferred investment options to purchase shares of the Company's common stock (the "Existing Warrants and Investment Options") pursuant to which the Holders agreed to exercise for cash their Existing Warrants and Investment Options to purchase 6,234 shares of the Company's common stock, in the aggregate, at a reduced exercised price of $246.60 per share (from an original exercise price of $1,400.40 per share), in exchange for the Company's agreement to issue new warrants (the "Inducement Warrants") to purchase up to 12,467 shares of the Company's common stock (the "Inducement Warrant Shares"), and the Holders to make a cash payment of $22.56 per Inducement Warrant share for total proceeds of $280,500. In January 2024, the Company received aggregate gross proceeds of $1,817,640 from the exercise of the Existing Warrants and Investment Options by the Holders and the sale of the Inducement Warrants. Because the Existing Warrants and Investment Options by the Holders and the sale of the Inducement Warrants that exercised on December 28, 2023 and unsettled until January 2024, the proceeds are included in the consolidated balance sheet as a subscription receivable as of December 31, 2023. As of December 31, 2023, 2,322 shares of the Existing Warrants and Investment Options exercised were considered issued as the Company had the enforceable right to obtain the cash proceeds, which were in-transit, and the Holders were no longer able to rescind the exercise election. Due to the beneficial ownership limitation provisions, 3,912 shares of the Existing Warrants and Investment Options exercised were initially unissued and held in abeyance for the benefit of the Holder until notice is received from the Holder that the shares may be issued in compliance with such limitation. During the year ended December 31, 2024, the Company issued all 3,912 shares of common stock of the 3,912 shares of Existing Warrants and Investment Options exercised that were held in abeyance due to the beneficial ownership limitation provisions.

On December 28, 2023, the Company entered into warrant exercise inducement offer letters (the "Inducement Letters") with certain holders of warrants and preferred investment options. The Inducement Letters prohibit the Company from entering into any variable rate transaction as defined in the Inducement Letters, including the issuance of (1) any variable priced debt or equity securities or (2) transactions whereby the Company may issue securities at a future determined price, such as through an at-the-market offering or an equity line of credit. The variable rate transaction restriction would have expired after six-months from the closing date of December 28, 2023 for the Inducement Letters for an issuance through an at-the-market offering, and one-year for the remaining variable rate transactions, however the restriction was waived for the at-the-market offering on March 8, 2024 and the equity line on May 3, 2024.

On March 8, 2024, the Company entered into a series of common stock purchase agreements for the issuance in a registered direct offering of 1,271 shares of the Company's common stock to the Holders of the Inducement Warrants. The issuance was made in exchange for the permanent and irrevocable waiver of the variable rate transaction limitation solely with respect to the entry into and/or issuance of shares of common stock in an at the market offering contained in the Inducement Letters. The fair value of the shares issued for consideration of waiving the variable rate transaction limitation was $322,453 and was charged to additional paid in capital, as it is direct and incremental to the Distribution Agreement, on the consolidated balance sheet as an offering cost related to the Distribution Agreement.

During the year ended December 31, 2024, the Company issued 9,267 shares of common stock for gross proceeds of $2,392,502 under the Distribution Agreement, and charged offering costs of $583,713 to additional paid in capital on the consolidated balance sheet. As of December 31, 2024 and December 31, 2023, there were deferred offering costs related to the Distribution Agreement of $0 and $171,944, respectively. As of December 31, 2024, there is $0 available under the Distribution Agreement.

 ****

***Lincoln Park Equity Line***

On November 3, 2023, the Company entered into a Purchase Agreement (the "Purchase Agreement") and a registration rights agreement (the "Registration Rights Agreement"), with Lincoln Park Capital Fund, LLC ("Lincoln Park"), pursuant to which Lincoln Park has committed to purchase up to $10.0 million of the Company's common stock, subject to certain limitations and satisfaction of the conditions set forth in the Purchase Agreement.

 ****

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

Under the terms and subject to the conditions of the Purchase Agreement, the Company has the right, but not the obligation, to sell to Lincoln Park, and Lincoln Park is obligated to purchase up to $10.0 million of the Company's Common Stock (the "Purchase Shares"). However, such sales of Common Stock by the Company, if any, will be subject to important limitations set forth in the Purchase Agreement, including limitations on number of shares that may be sold. Sales may occur from time to time, at the Company's sole discretion, over the 24-month period commencing on the date that the conditions to Lincoln Park's purchase obligation set forth in the Purchase Agreement are satisfied, including that a registration statement on Form S-1 covering the resale of the shares of the Company's Common Stock that have been and may be issued to Lincoln Park under the Purchase Agreement, which the Company has filed with the SEC pursuant to the Registration Rights Agreement, is declared effective by the SEC and a final prospectus relating thereto is filed with the SEC. As required under the Purchase Agreement, the Company registered a resale of 6,336 shares of the Company's common stock, plus the 775 commitment shares, by Lincoln Park on a registration statement on Form S-1 dated November 8, 2023, which was declared effective by the SEC on December 5, 2023. As of July 30, 2024, there were no remaining shares available to be issued in connection with this registration statement. On September 4, 2024, the Company filed an amended Form S-1, which was declared effective by the SEC on September 11, 2024. The amended Form S-1 registered an additional 27,223 shares of common stock that are available to be issued to Lincoln Park in connection with this agreement.

Because the purchase price per share to be paid by Lincoln Park for the shares of Common Stock that the Company may elect to sell to Lincoln Park under the Purchase Agreement, if any, will fluctuate based on the market prices of the Company's Common Stock at the time the Company elects to sell shares to Lincoln Park pursuant to the Purchase Agreement, if any, it is not possible for the Company to predict the number of shares of Common Stock that the Company will sell to Lincoln Park under the Purchase Agreement, the purchase price per share that Lincoln Park will pay for shares purchased from the Company under the Purchase Agreement, or the aggregate gross proceeds that the Company will receive from those purchases by Lincoln Park under the Purchase Agreement.

On May 3, 2024, the Company entered into a series of common stock purchase agreements for the issuance in a registered direct offering of an aggregate of 2,545 shares of the Company's common stock, to certain institutional investors. The issuance was made in exchange for the permanent and irrevocable waiver of the variable rate transaction limitation with respect to any existing or future agreement by the Company to effect any issuance of shares and issue such shares thereunder, as contained in those certain Inducement Offer Letters, dated December 28, 2023, between the Company and those certain institutional investors. The Company will not receive any net proceeds in connection with the offering. The fair value of the shares issued for consideration of waiving the variable rate transaction limitation was $448,840 and was recorded as deferred offering costs, as direct and incremental to the Purchase Agreement, within prepaid expenses and other current assets on the consolidated balance sheet related to the Purchase Agreement.

The common stock purchase agreements contain customary representations and warranties and certain indemnification obligations of the Company. The common stock purchase agreements also restrict the Company from issuing, entering into any agreement to issue, or announcing the issuance of the Company's common stock from the date of the common stock purchase agreements until the earlier of 30 days after entering into the agreements or at such time as one million (1,000,000) shares of the Company's common stock have traded in the open market. The closing of the issuance of the Shares pursuant to the common stock purchase agreements closed on May 3, 2024.

During the year ended December 31, 2024, the Company had issued 13,278 shares of common stock, through the Purchase Agreement for gross cash proceeds of $1,083,709. During the year ended December 31, 2024, the Company charged offering costs of $471,756 to additional paid in capital on the consolidated balance sheet. As of December 31, 2024 and 2023, the Company has capitalized deferred offering costs of $0 and $395,660, respectively. As of December 31, 2024, there were 20,281 shares available to be issued in connection with the Purchase Agreement. The Company engaged in a best efforts public offering in the first quarter of 2025 (described below), which restricts the use of the Lincoln Park Equity Line for a period of one year from February 3, 2025.

 ****

***Common Stock Activity***

During the year ended December 31, 2024 a total of 153 shares of common stock were issued pursuant to the vesting of restricted stock units. During the year ended December 31, 2023 a total of 576 shares of common stock were issued pursuant to the vesting of restricted stock units.

 **

***Stock Options***

 

***Amendment to 2020 Long-Term Incentive Plan***

On May 3, 2022, the board of directors ("Board") adopted the First Amendment (the "Plan Amendment") to the Enveric Biosciences, Inc. 2020 Long-Term Incentive Plan (the "Incentive Plan") to (i) increase the aggregate number of shares available for the grant of awards by 812 shares to a total of 1,112 shares, and (ii) add an "evergreen" provision whereby the number of shares authorized for issuance pursuant to awards under the Incentive Plan will be automatically increased on the first trading date immediately following the date the Company issues any share of common stock (defined below) to any person or entity, to the extent necessary so that the number of shares of the Company's common stock authorized for issuance under the Incentive Plan will equal the greater of (x) 1,112 shares, and (y) 15% of the total number of shares of the Company's common stock outstanding as of such issuance date (the "Evergreen Provision"). The Plan Amendment was approved by the Company's shareholders at a special meeting of the Company's shareholders held on July 14, 2022.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

On November 2, 2023, the stockholders approved the amendments to the 2020 Long-Term Incentive Plan, which was approved by the Board on August 8, 2023 (the "Amended Incentive Plan"). The Amended Incentive Plan (i) increased the number of authorized shares reserved for issuance under the Amended Incentive Plan to a maximum of 1,945, subject to equitable adjustment, and (ii) removed the Evergreen Provision implemented in the Plan Amendment. During the first quarter of 2024, the Board approved an equitable adjustment to increase the number of shares available under the Plan by 749 shares. Effective October 9, 2024, the Board approved an equitable adjustment to increase the number of shares available under the Incentive Plan by 5,367 shares, which increased the total number of authorized shares under the Incentive Plan to 8,061 shares. As of December 31, 2024, the total number of shares available for grant under the Incentive Plan was 2,139.

A summary of the stock option activity under the Company's incentive plan for the years ended December 31, 2024 and 2023 is presented below:

SCHEDULE OF STOCK OPTION

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of Shares** | **Weighted Average Exercise Price** | **Weighted Average Grant Date Fair Value** | **Weighted Average Remaining Contractual Term (years)** | **Aggregate Intrinsic Value** |
| Outstanding at January 1, 2023 | 268 | $6669.00 | $8067.60 | 4.1 | $— |
| Granted |  |  |  |  |  |
| Forfeited | (100) | 552.60 | 464.40 |  |  |
| Outstanding at December 31, 2023 | 168 | 10290.60 | 13899.60 | 3.4 |  |
| Granted |  |  |  |  |  |
| Forfeited | (40) | 7083.00 | 9723.60 |  |  |
| Outstanding at December 31, 2024 | 128 | $11298.60 | $15211.80 | 2.3 | $— |
| Exercisable at December 31, 2024 | 124 | $11669.04 | $15722.40 | 2.0 | $— |

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The Company's stock based compensation expense, recorded within general and administrative expense in the consolidated statement of operations and comprehensive loss, related to stock options for the years ended December 31, 2024 and 2023 was $(5,441) and $156,075, respectively.

As of December 31, 2024, the Company had $1,932 in unamortized stock option expense, which will be recognized over a weighted average period of 1.15 years.

 ****

***Issuance of Restricted Stock Units***

The Company's activity in restricted stock units was as follows for the year ended December 31, 2024:

SCHEDULE OF RESTRICTED STOCK UNITS

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| | | |
|:---|:---|:---|
|  | **Number of shares** | **Weighted average fair value** |
| Non-vested at January 1, 2023 | 349 | $16662.60 |
| Granted | 1013 | 491.40 |
| Forfeited | (242) | 4629.60 |
| Vested | (348) | 3564.00 |
| Non-vested at December 31, 2023 | 772 | 5214.60 |
| Granted | 3544 | 106.08 |
| Forfeited | (154) | 516.60 |
| Vested | (170) | 3999.60 |
| Non-vested at December 31, 2024 | 3992 | $288.96 |

---

For the years ended December 31, 2024 and 2023, the Company recorded $1,475,947 and $1,994,085, respectively, in stock-based compensation expense related to restricted stock units, which is a component of both general and administrative and research and development expenses in the consolidated statement of operations and comprehensive loss. As of December 31, 2024, the Company had unamortized stock-based compensation costs related to restricted stock units of $892,536 which will be recognized over a weighted average period of 1.91 years. As of December 31, 2024, 115 restricted stock units are vested without shares of common stock being issued, with all of these shares due as of December 31, 2024.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The following table summarizes the Company's recognition of stock-based compensation for restricted stock units for the following periods:

SCHEDULE OF STOCK-BASED COMPENSATION FOR RESTRICTED STOCK UNITS

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2024** | **2023** |
| Stock-based compensation expense for RSUs: |  |  |
| General and administrative | $646636 | $1085791 |
| Research and development | 829311 | 908294 |
| Total | $1475947 | $1994085 |

---

 ****

***Restricted Stock Awards***

The Company's activity in restricted common stock was as follows for the years ended December 31, 2024:

SCHEDULE OF RESTRICTED STOCK UNITS

---

| | | |
|:---|:---|:---|
|  | **Number of shares** | **Weighted average fair value** |
| Non-vested at January 1, 2024 |  |  |
| Granted | 1216 | $75.60 |
| Vested | <br> (1216) | $75.60 |
| Non-vested at December 31, 2024 |  | $— |

---

For the years ended December 31, 2024 and 2023, the Company recorded $91,886 and $0, respectively, in stock-based compensation expense within general and administrative expense, related to restricted stock awards. As of December 31, 2024, there were no unamortized stock-based compensation costs related to restricted share awards. The balance of Common Shares related to the vested restricted stock awards as of December 31, 2024 will be issued during the 2025 calendar year. There are 1,216 vested and unissued shares of restricted stock awards as of December 31, 2024. These shares were issued during the first quarter of 2025.

 ****

***Warrants and Preferred Investment Options***

The following table summarizes information about shares issuable under warrants outstanding at December 31, 2024 and 2023:

SCHEDULE OF WARRANTS OUTSTANDING

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Warrant shares outstanding** | **Weighted average exercise price** | **Weighted average remaining life** | **Intrinsic value** |
| Outstanding at January 1, 2023 | 3619 | $10504.80 | 3.6 | $5514 |
| Issued | 12841 | 246.60 |  |  |
| Exercised | (678) | 246.60 |  |  |
| Forfeited | (254) | 20070.00 |  |  |
| Outstanding at December 31, 2023 | 15528 | 2122.20 | 4.6 |  |
| Issued |  |  |  |  |
| Expired | (4) | 28800.00 |  |  |
| Exercised | (10856) | 246.60 |  |  |
| Outstanding at December 31, 2024 | 4668 | $6440.40 | 2.7 | $— |
| Exercisable at December 31, 2024 | 4668 | $6440.40 | 2.7 | $— |

---

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The following table summarizes information about investment options outstanding at December 31, 2024 and 2023:

SCHEDULE OF INVESTMENT OPTIONS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investment options outstanding** | **Weighted average exercise price** | **Weighted average remaining life** | **Intrinsic value** |
| Outstanding at January 1, 2023 | 5945 | $1427.40 | 5.1 | $— |
| Exercised | (5556) | 246.60 |  |  |
| Outstanding at December 31, 2023 | 389 | 1800.00 | 4.1 | $— |
| Exercised |  |  |  |  |
| Outstanding at December 31, 2024 | 389 | $1800.00 | 2.6 | $— |
| Exercisable at December 31, 2024 | 389 | $1800.00 | 2.6 | $— |

---

On December 28, 2023, the Company entered into warrant exercise inducement offer letters (the "Inducement Letters") with certain holders (the "Holders") of the February 2022 Post-Modification Warrant and RD and PIPE preferred investment options to purchase shares of the Company's common stock (the "Existing Warrants and Investment Options") pursuant to which the Holders agreed to exercise for cash their Existing Warrants and Investment Options to purchase 6,234 shares of the Company's common stock, in the aggregate, at a reduced exercised price of $246.60 per share (from an original exercise price of $1,400.40 per share), in exchange for the Company's agreement to issue new warrants (the "Inducement Warrants") to purchase up to 12,467 shares of the Company's common stock (the "Inducement Warrant Shares"), and the Holders to make a cash payment of $22.56 per Inducement Warrant share for total proceeds of $280,500. In January 2024, the Company received aggregate gross proceeds of $1,817,640 from the exercise of the Existing Warrants and Investment Options by the Holders and the sale of the Inducement Warrants. Because the Existing Warrants and Investment Options by the Holders and the sale of the Inducement Warrants that exercised on December 28, 2023 and unsettled until January 2024, the proceeds are included in the consolidated balance sheet as a subscription receivable as of December 31, 2023. As of December 31, 2023, 2,322 shares of the Existing Warrants and Investment Options exercised were considered issued as the Company had the enforceable right to the obtain the cash proceeds, which were in-transit, and the Holders were no longer able to rescind the exercise election. Due to the beneficial ownership limitation provisions, 3,912 shares of the Existing Warrants and Investment Options exercised were initially unissued and held in abeyance for the benefit of the Holder until notice is received from the Holder that the shares may be issued in compliance with such limitation. The Company engaged Roth Capital Partners, LLC ("Roth") to act as its financial advisor in connection with the transactions summarized above and has paid Roth approximately $144,000 for its services, in addition to reimbursement for certain expenses. Roth was also issued warrants to purchase up to 374 shares of common stock. The Roth Warrants have the same terms as the Inducement Warrants. The grant date fair value of these Roth Warrants was estimated to be $77,991 on December 28, 2023 and were charged to additional paid in capital as issuance costs. The Company also incurred legal fees of $17,254 related to the transactions above that were charged to additional paid in capital as issuance costs.

The Company also agreed to file a registration statement on Form S-3 covering the resale of the Inducement Warrant Shares issued or issuable upon the exercise of the Inducement Warrants (the "Resale Registration Statement") by January 8, 2024 (filed January 11, 2024). In the Inducement Letters, the Company agreed not to issue any shares of common stock or common stock equivalents or to file any other registration statement with the SEC (in each case, subject to certain exceptions) for a period ending on February 26, 2024. The Company also agreed not to effect or agree to effect any variable rate transaction (as defined in the Inducement Letters) until December 28, 2024. See the *Equity Distribution Agreement* section of this Note.

In connection with this transaction, the Company determined the fair value of the Existing Warrants and Investment Options immediately prior to the Inducement Letters and the fair value of the amended warrants and investment options immediately after the Inducement Letters. The pre-modification measurement of fair value of the Existing Warrants and Investment Options were determined utilizing a Black-Scholes model considering all relevant assumptions current at the date of modification (i.e. for the Existing Warrants share price of $280.80, exercise price of $1,400.40, term of 3.6 years, volatility of 94%, risk-free rate of 3.96%, and expected dividend rate of 0%, resulting in a fair value per share of $97.20 and for the Investment Options share price of $280.80, exercise price of $1,400.40, term of 4.1 years, volatility of 95%, risk-free rate of 3.90%, and expected dividend rate of 0%, resulting in a fair value per share of $111.60). The total fair value of the 678 Existing Warrants and 5,556 Investment Options was $65,349 and $618,648, respectively. The post-modification fair value was determined using the intrinsic value of $34.20 due to the inducement and totaled $23,180 and $190,000 for the Existing Warrants and Investment Options, respectively. The change in fair value from the date of the modification prior to modification and the fair value on the date of the modification after the modification, but prior to exercise was $470,817, which was reflected as an inducement gain, within other expenses on the Company's consolidated statement of operations and comprehensive loss.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The grant date fair value of these Inducement Warrants was estimated to be $2,599,552 on December 28, 2023 and the proceeds of $280,500, which were received on January 2, 2024, for the issuance of the Inducement Warrants is reflected as inducement expense, within other expenses on the Company's consolidated statement of operations and comprehensive loss.

The Company established the initial fair value of its equity classified Inducement Warrants at the date of issuance on December 28, 2023. The Company used a Black Scholes valuation model in order to determine their value. The key inputs into the Black Scholes valuation model for the valuation of the warrants are below:

SCHEDULE OF BLACK SCHOLES VALUATION MODEL FOR VALUATION OF WARRANTS

---

| | |
|:---|:---|
|  | **Roth and Inducement Warrants**<br>**December 28, 2023** |
| Term (years) | 5.0 |
| Stock price | $280.80 |
| Exercise price | $246.60 |
| Dividend yield | —% |
| Expected volatility | 92.0% |
| Risk free interest rate | 3.80% |
| Number of warrants | 12841 |
| Value (per share) | $208.80 |

---

 ****

***Series C Preferred Shares***

On May 3, 2022, the Board of Directors (the "Board") declared a dividend of one one-thousandth of a share of the Company's Series C Preferred Stock ("Series C Preferred Stock") for each outstanding share of the Company's common stock held of record as of 5:00 p.m. Eastern Time on May 13, 2022 (the "Record Date"). This dividend was based on the number of outstanding shares of common stock prior to the Reverse Stock Split. The outstanding shares of Series C Preferred Stock were entitled to vote together with the outstanding shares of the Company's common stock, as a single class, exclusively with respect to a proposal giving the Board the authority, as it determines appropriate, to implement a reverse stock split within twelve months following the approval of such proposal by the Company's stockholders (the "Reverse Stock Split Proposal"), as well as any proposal to adjourn any meeting of stockholders called for the purpose of voting on the Reverse Stock Split Proposal (the "Adjournment Proposal").

The Company held a special meeting of stockholders on July 14, 2022 (the "Special Meeting") for the purpose of voting on, among other proposals, a Reverse Stock Split Proposal and an Adjournment Proposal. All shares of Series C Preferred Stock that were not present in person or by proxy at the Special Meeting were automatically redeemed by the Company immediately prior to the opening of the polls at Special Meeting (the "Initial Redemption"). All shares that were not redeemed pursuant to the Initial Redemption were redeemed automatically upon the approval by the Company's stockholders of the Reverse Stock Split Proposal at the Special Meeting (the "Subsequent Redemption" and, together with the Initial Redemption, the "Redemption"). Each share of Series C Preferred Stock was entitled to receive $0.10 in cash for each 10 whole shares of Series C Preferred Stock immediately prior to the Redemption. As of June 30, 2022, there were 52,684.548 shares of Series C Preferred Stock issued and outstanding. As of December 31, 2022, both the Initial Redemption and the Subsequent Redemption had occurred. As a result, no shares of Series C Preferred Stock remain outstanding. As of December 31, 2024 and 2023, there are 100,000 shares of Series C Preferred Stock authorized for future issuances.

**NOTE 9. REDEEMABLE NON-CONTROLLING INTEREST**

 ****

***Spin-Off and Related Private Placement***

In connection with the Spin-Off, on May 5, 2022, Akos and the Company entered into a Securities Purchase Agreement (the "Akos Purchase Agreement") with an accredited investor (the "Akos Investor"), pursuant to which Akos agreed to sell up to an aggregate of 5,000 shares of Akos Series A Preferred Stock, at price of $1,000 per share, and warrants (the "Akos Warrants") to purchase shares of Akos' common stock, par value $0.01 per share (the "Akos Common Stock"), for an aggregate purchase price of up to $5,000,000 (the "Akos Private Placement"). The Akos Purchase Agreement was guaranteed by the Company. Pursuant to the Akos Purchase Agreement, Akos issued 1,000 shares of the Akos Series A Preferred Stock to the Akos Investor in exchange for $1,000,000 on May 5, 2022. The additional $4,000,000 was to be received on or immediately prior to the Spin-Off. The issuance of the Akos Series A Preferred Stock results in RNCI (see Note 2). Palladium Capital Advisors, LLC ("Palladium") acted as placement agent for the Akos Private Placement. Pursuant to the Akos Purchase Agreement, Akos had agreed to pay Palladium a fee equal to 9% of the aggregate gross proceeds raised from the sale of the shares of the Akos Series A Preferred Stock and a non-accountable expense allowance of 1% of the aggregate gross proceeds raised the sale of the Akos Series A Preferred Stock in the Akos Private Placement. The fee due in connection with the Akos Private Placement to be paid to Palladium in the form of convertible preferred stock and warrants was on similar terms to the securities issued in the Akos Private Placement. Palladium was also entitled to warrants to purchase Akos Common Stock in an amount up to 8% of the number of shares of Akos Common Stock underlying the shares issuable upon conversion of the Akos Series A Preferred Stock. As of December 31, 2023, no accruals are required to be recorded for the fees or warrants since the Akos Series A Preferred Stock has been redeemed.

 ****

 ****

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

 ****

***Terms of Akos Series A Preferred Stock***

Under the Certificate of the Designations, Preferences, and Rights of Series A Convertible Preferred Stock of Akos (the "Akos Series A Preferred Certificate of Designations"), on or immediately prior to the completion of the spin-off of Akos into an independent, separately traded public company listed on the Nasdaq Stock Market, the outstanding Akos Series A Preferred Stock automatically converted into a number of shares of Akos Common Stock equal to 25% of the then issued and outstanding Akos Common Stock, subject to the Beneficial Ownership Limitation (as defined in the Akos Purchase Agreement). Cumulative dividends on each share of Akos Series A Preferred Stock accrue at the rate of 5% annually.

The Akos Series A Preferred Certificate of Designations provided that upon the earlier of (i) the one-year anniversary of May 5, 2022, and only in the event that the Spin-Off has not occurred; or (ii) such time that Akos and the Company have abandoned the Spin-Off or the Company is no longer pursuing the Spin-Off in good faith, the holders of the Akos Series A Preferred Stock shall have the right (the "Put Right"), but not the obligation, to cause Akos to purchase all or a portion of the Akos Series A Preferred Stock for a purchase price equal to $1,000 per share, subject to certain adjustments as set forth in the Akos Series A Preferred Certificate of Designations (the "Stated Value"), plus all the accrued but unpaid dividends per share. In addition, after the one-year anniversary of May 5, 2022, and only in the event that the Spin-Off has not occurred and Akos is not in material default of any of the transaction documents, Akos may, at its option, at any time and from time to time, redeem the outstanding shares of Akos Series A Preferred Stock, in whole or in part, for a purchase price equal to the aggregate Stated Value of the shares of Akos Series A Preferred Stock being redeemed and the accrued and unpaid dividends on such shares. Pursuant to the Akos Purchase Agreement, the Company has guaranteed the payment of the purchase price for the shares purchased under the Put Right.

The Akos Series A Preferred Certificate of Designations contains limitations that prevent the holder thereof from acquiring shares of Akos Common Stock upon conversion of the Akos Series A Preferred Stock that would result in the number of shares of Akos Common Stock beneficially owned by such holder and its affiliates exceeding 9.99% of the total number of shares of Akos Common Stock outstanding immediately after giving effect to the conversion (the "Beneficial Ownership Limitation"), except that upon notice from the holder to Akos, the holder may increase or decrease the limit of the amount of ownership of outstanding shares of Akos Common Stock after converting the holder's shares of Akos Series A Preferred Stock, provided that any change in the Beneficial Ownership Limitation shall not be effective until 61 days following notice to Akos.

 ****

***Redemption of Akos Series A Preferred Stock***

In May 2023, pursuant to the Akos Series A Preferred Certificate of Designations, the holders of the Akos Series A Preferred Stock exercised the Put Right requiring Akos to force redemption of all of the Akos Series A Preferred Stock for $1,000 per share, plus accrued but unpaid dividends of approximately $52,000 for a total of approximately $1,052,000. The Company had 20 days following the receipt of the Put Exercise Notice to make the payment and made payment on May 19, 2023. Upon redemption in May 2023, the Company revalued the derivative liability and the Company recognized a change in fair value of the derivative liability on the Company's consolidated statement of operations during the second quarter of 2023 of $714,000.

The Company, Akos, and the Akos Investor have terminated the Akos Purchase Agreement in connection with the planned Spin-Off and certain registration rights agreement in connection with the Akos Private Placement.

 ****

***Accounting for Akos Series A Preferred Stock***

Since the shares of Akos Series A Preferred Stock were redeemable at the option of the holder and the redemption is not solely in the control of the Company, the shares of Akos Series A Preferred Stock were accounted for as a redeemable non-controlling interest and classified within mezzanine equity in the Company's consolidated balance sheets. The redeemable non-controlling interest was initially measured at fair value. Dividends on the shares of Akos Series A Preferred Stock were recognized as preferred dividends attributable to redeemable non-controlling interest in the Company's consolidated statement of operations and comprehensive loss.

The table below presents the reconciliation of changes in redeemable non-controlling interest:

---

| | |
|:---|:---|
| Balance at December 31, 2022 | $885028 |
| &nbsp;&nbsp;&nbsp;Preferred dividends attributable to redeemable non-controlling interest | 19041 |
| &nbsp;&nbsp;&nbsp;Accretion of embedded derivative and transaction costs associated with Akos Series A Preferred Stock to redemption value | 147988 |
| &nbsp;&nbsp;&nbsp;Redemption of Akos Series A Preferred Stock | (1052057) |
| Balance at December 31, 2023 | $— |

---

In May 2023, the Akos Series A Preferred Stock was redeemed for a total of $1,052,057, and the balance of the redeemable non-controlling interest is $0 as of December 31, 2023.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 10. LICENSING AGREEMENTS**

On July 10, 2024, Akos entered into an Exclusive License Agreement (the "License Agreement") with Aries Science and Technology, LLC, an Ohio limited liability company ("Aries"), pursuant to which Akos granted Aries a license of Akos's patented radiation dermatitis topical product. The license allows Akos to use the patented formulation to develop pharmaceutical or non-pharmaceutical products for treating radiation dermatitis suitable for administration to humans or animals. The license is exclusive (subject to certain exceptions contained in the License Agreement), worldwide, royalty-bearing, and includes the right to sublicense. Akos is entitled to potential license payments, milestone payments and royalties based on net revenues of the Licensed Product on a licensed product-by-licensed product and country-by-country basis pursuant to the terms of the Agreement. Aries has the option during the license term, to purchase the rights to each licensed product (on a licensed product-by-licensed product basis) in the form of an exclusive (as to the applicable licensed product), fully paid, transferable right and license to the licensed product.

The Company has not earned any revenue related to this agreement as of December 31, 2024.

On November 7, 2024, the Company entered into an Out-Licensing Agreement (the "Agreement") with MycoMedica Life Sciences, PBC, a Delaware public benefit corporation ("MycoMedica"), pursuant to which the Company will out-license EB-002 and its EVM201 series to MycoMedica for further development and sales of the product in treatment of neuropsychiatric disorders. MycoMedica will receive an exclusive, global license to the formulations, drugs, method of use, and medical devices developed by Enveric to utilize the compound. As part of the Agreement, the Company will receive a $20,000 upfront payment, and if certain conditions are met, will receive development and sales milestone payments of up to $62 million and tiered single-digit royalties based on future sales. MycoMedica has the option during the license term to buyout its milestone and royalty payment obligations at a predetermined amount depending upon the stage of product development and commercialization at the time of the buyout. Further, MycoMedica has the right to purchase the licensed patents at a nominal amount upon a change of control of the Company, although doing so does not relieve MycoMedica of any of its payment obligations. During the year ended December 31, 2024, the Company received $20,000 from MycoMedica as a licensing fee, which is recorded as other income in the consolidated statements of operations.

**NOTE 11. FAIR VALUE**

The following table provides the financial liabilities measured on a recurring basis and reported at fair value on the balance sheet as of December 31, 2024 and 2023, and indicates the fair value of the valuation inputs the Company utilized to determine such fair value of warrant liabilities and investment options:

SCHEDULE OF FAIR VALUE HIERARCHY OF VALUATION INPUTS ON RECURRING BASIS

---

| | | | |
|:---|:---|:---|:---|
|  | **Level** | **December 31, 2024** | **December 31, 2023** |
| Warrant liabilities - January 2021 Warrants | 3 | $— | $4 |
| Warrant liabilities - February 2021 Warrants | 3 |  | 4 |
| Warrant liabilities - February 2022 Warrants | 3 | 1100 | 25462 |
| Fair value of warrant liability |  | $1100 | $25470 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Level** | **December 31, 2024** | **December 31, 2023** |
| Wainwright investment options | 3 | $1988 | $23608 |
| Fair value of investment option liability |  | $1988 | $23608 |

---

The warrant liabilities and investment options are all classified as Level 3, for which there is no current market for these securities such as the determination of fair value requires significant judgment or estimation. Changes in fair value measurement categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded within other income (expense) on the consolidated statements of operations and comprehensive loss

 ****

 ****

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

 ****

***Subsequent measurement***

The following table presents the changes in fair value of the warrant liabilities, derivative liability, and investment options that are classified as Level 3:

SCHEDULE OF FAIR VALUE OF WARRANT LIABILITIES AND DERIVATIVE LIABILITY AND INVESTMENT OPTIONS

---

| | |
|:---|:---|
|  | **Total Warrant Liabilities** |
| Fair value as of December 31, 2022 | $185215 |
| Exercise of warrants | (65349) |
| Change in fair value | (94396) |
| Fair value as of December 31, 2023 | $25470 |
| Change in fair value | (24370) |
| Fair value as of December 31, 2024 | $1100 |

---

---

| | |
|:---|:---|
|  | **Total Derivative Liability** |
| Fair value as of December 31, 2022 | $727000 |
| Change in fair value arising from redemption of Akos Series A Preferred Stock - See Note 9 | (727000) |
| Redemption of Series A Preferred Stock |  |
| Fair value as of December 31, 2023 | $— |

---

There was no activity related to the derivative liability during the year ended December 31, 2024.

---

| | |
|:---|:---|
|  | **Total Investment Options** |
| Fair value as of December 31, 2022 | $851008 |
| Change in fair value | (208752) |
| Exercise of investment options | (618648) |
| Fair value of investment option liability as of December 31, 2023 | $23608 |
| Change in fair value | (21620) |
| Fair value of investment option liability as of December 31, 2024 | $1988 |

---

The key inputs into the Black Scholes valuation model for the Level 3 valuations of the warrant liabilities as of December 31, 2024 are below:

SCHEDULE OF BLACK SCHOLES VALUATION MODELS OF WARRANT LIABILITIES AND INVESTMENT OPTIONS

---

| | | | |
|:---|:---|:---|:---|
|  | **January 2021 Warrants** | **February 2021 Warrants** | **February 2022 Warrants** |
| Term (years) | 1 | 1.1 | 2.1 |
| Stock price | $64.56 | $64.56 | $64.56 |
| Exercise price | $44550.00 | $44100.00 | $4950.00 |
| Dividend yield | —% | —% | —% |
| Expected volatility | 90.0% | 90.0% | 106.0% |
| Risk free interest rate | 4.20% | 4.20% | 4.30% |
| Number of warrants | 203 | 191 | 1878 |
| Value (per share) | $— | $— | $0.036 |

---

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The key inputs into the Black Scholes valuation model for the Level 3 valuations of the warrant liabilities as of December 31, 2023 are below:

---

| | | | |
|:---|:---|:---|:---|
|  | **January 2021 Warrants** | **February 2021 Warrants** | **February 2022 Warrants Unmodified** |
| Term (years) | 2.0 | 2.1 | 3.1 |
| Stock price | $234.00 | $234.00 | $234.00 |
| Exercise price | $44550.00 | $44100.00 | $4950.00 |
| Dividend yield | —% | —% | —% |
| Expected volatility | 89.0% | 88.0% | 87.0% |
| Risk free interest rate | 4.20% | 4.20% | 4.00% |
| Number of warrants | 203 | 191 | 1878 |
| Value (per share) | $0.00 | $0.00 | $14.40 |

---

The key inputs into the Black Scholes valuation model for the Level 3 valuations of the investment options as of December 31, 2024 are below:

---

| | |
|:---|:---|
|  | **H.C. Wainwright & Co., LLC Options** |
| Term (years) | 2.6 |
| Stock price | $64.56 |
| Exercise price | $1800.00 |
| Dividend yield | —% |
| Expected volatility | 108.0% |
| Risk free interest rate | 4.30% |
| Number of investment options | 389 |
| Value (per share) | $0.36 |

---

The key inputs into the Black Scholes valuation model for the Level 3 valuations of the investment options as of December 31, 2023 are below:

---

| | |
|:---|:---|
|  | **H.C. Wainwright & Co., LLC Options** |
| Term (years) | 3.6 |
| Stock price | $234.00 |
| Exercise price | $1800.00 |
| Dividend yield | —% |
| Expected volatility | 94.0% |
| Risk free interest rate | 4.0% |
| Number of investment options | 389 |
| Value (per share) | $61.20 |

---

 

 

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

 

**NOTE 12. COMMITMENTS AND CONTINGENCIES**

The Company is periodically involved in legal proceedings, legal actions and claims arising in the normal course of business. Management believes that the outcome of such legal proceedings, legal actions and claims will not have a significant adverse effect on the Company's financial position, results of operations or cash flows.

 ****

***Australian Subsidiary Research and Development***

On March 23, 2023, the Company issued a press release announcing the selection of Australian CRO, Avance Clinical, in preparation for Phase 1 Study of EB-373, the Company's lead candidate targeting the treatment of anxiety disorders. Under the agreement, Avance Clinical will manage the Phase 1 clinical trial of EB-373 in coordination with the Company's newly established Australian subsidiary, Enveric Therapeutics Pty, Ltd. The Phase 1 clinical trial is designed as a multi-cohort, dose-ascending study to measure the safety and tolerability of EB-373. EB-373, a next-generation proprietary psilocin prodrug, has been recognized as a New Chemical Entity (NCE) by Australia's Therapeutic Goods Administration (TGA) and is currently in preclinical development targeting the treatment of anxiety disorder. The total cost of the Avance Clinical contract is approximately 3,400,000 AUD, which translates to approximately $2,114,000 USD as of December 31, 2024. The Company has terminated the agreement as of December 31, 2024. Total project costs were 3,300,000 AUD and the Company will not incur any future costs associated with the agreement. Accordingly, the Company has $0 recorded as prepaid assets within prepaid and other current assets, accrued $0 recorded as accrued liabilities and $0 as accounts payable on the accompanying consolidated balance sheet. For the years ended December 31, 2024 and 2023, the Company has expensed $495,465 and $1,751,444, respectively, in research and development expenses within the accompanying consolidated statement of operations. As of December 31, 2024, the project is completed.

According to Australian tax law, the Company is allowed an R&D tax credit that reduces a company's tax bill in Australia for expenses incurred in R&D subject to certain requirements. The Company's Australian subsidiary submits R&D tax credit requests annually for research and development expenses incurred. At December 31, 2024 and 2023, the Company had a research and development tax credit receivable of $0 and $145,349, respectively, for R&D expenses incurred in Australia, included in prepaid and other current assets within the accompanying consolidated statement of operations. The Company received the amount due in relation to the research and development tax credit of $290,447 during the year ended December 31, 2024.

 ****

***Purchase agreement with Prof. Zvi Vogel and Dr. Ilana Nathan***

On December 26, 2017, Jay Pharma entered into a purchase agreement with Prof. Zvi Vogel and Dr. Ilana Nathan (the "Vogel-Nathan Purchase Agreement"), pursuant to which Jay Pharma was assigned ownership rights to certain patents, which were filed and unissued as of the date of the Vogel-Nathan Purchase Agreement. The patent portfolio acquired and developed under the Vogel-Nathan Purchase Agreement was sold to undisclosed buyers for an amount not material to these financials in the first quarter of 2024. No additional financial or other obligations exist regarding the Vogel-Nathan Purchase Agreement.

 ****

***Other Consulting and Vendor Agreements***

The Company has entered into a number of agreements and work orders for future consulting, clinical trial support, and testing services, with terms ranging between one and 12 months. These agreements, in aggregate, commit the Company to approximately $0.3 million in future cash payments.

 ****

***Reduction in Force/Restructuring***

In May 2023, the Company entered into a cost reduction plan, including a reduction in force ("RIF") of approximately 35% of its full-time employees to streamline its operations and conserve cash resources. Additionally, contracts with seven consultants that were focused on the Akos cannabinoid spin-out were terminated. The plan included a focus on progressing the Company's existing non-cannabinoid pipeline while reducing the rate of spend and managing cash flow. In June 2023, the Company completed the reduction in force, with such severance expenses recorded in general and administrative accounts.

In June 2023, the Company entered into a separation agreement with Avani Kanubaddi, the Company's President and Chief Operating Officer (the "Kanubaddi Separation Agreement"). In accordance with the Kanubaddi Separation Agreement, Mr. Kanubaddi received salary and benefits that is paid out in twelve monthly installments beginning in July 2023, was eligible for his 2023 performance bonus, which was not achieved, and any outstanding restricted stock units retained their vesting conditions.

The following table summarizes the Reduction in Force/Restructuring activity and ending balance at December 31, 2024 and 2023 for the remaining severance payments included in accrued expenses in the consolidated balance sheet:

SCHEDULE OF REDUCTION IN FORCE/RESTRUCTURING ACTIVITY

---

| | |
|:---|:---|
|  | **Accrued Restructuring Costs** |
| January 1, 2023 Beginning balance | $— |
| Restructuring costs incurred | 1004033 |
| Restructuring costs paid | (572628) |
| Restructuring costs reversed | (129760) |
| December 31, 2023 ending balance | $301645 |
| Restructuring costs paid | (301645) |
| December 31, 2024 ending balance | $— |

---

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 13. INCOME TAXES**

The Company's U.S. and foreign loss before income taxes are set forth below:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| United States | $(7465630) | $(10205116) |
| Foreign | (2100427) | (7057703) |
| &nbsp;&nbsp;&nbsp;Total | $(9566057) | $(17262819) |

---

For the years ended December 31, 2024 and 2023, the Company recorded income tax expense of $8,930 and $28,913, respectively. The income tax expense is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
| Current: | **2024** | **2023** |
| Federal | $— | $— |
| State | (8930) | (28913) |
| Foreign |  | $— |
|  | $(8930) | $(28913) |
| Deferred: |  |  |
| Federal | $— | $— |
| State |  |  |
| Foreign |  |  |
|  | $— | $— |
| &nbsp;&nbsp;&nbsp;Total income tax expense | $(8930) | $(28913) |

---

The Company's deferred tax assets and deferred tax liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Deferred tax assets: |  |  |
| Net operating loss carryforwards | $12010882 | $10889863 |
| Stock-based compensation | 938457 | 1185399 |
| Research and development capitalized expenses | 563389 | 611245 |
| Intangible amortization | 111471 | 80518 |
| Other | 31376 | 70730 |
| Less valuation allowances | (13655575) | (12837755) |
| Net deferred tax assets | $— | $— |

---

The Company had the following potentially utilizable net operating loss tax carryforwards:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Federal | $30086333 | $24268692 |
| State | $14467439 | $11220065 |
| Foreign | $17543639 | $17672420 |

---

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The Tax Cuts and Jobs Act of 2017 (the "Act") limits the net operating loss deduction to 80% of taxable income for losses arising in tax years beginning after December 31, 2017. As of December 31, 2024, the Company had federal net operating loss carryforwards of $30,086,333 which can be carried forward indefinitely, state net operating losses carryforwards of $14,467,439, of which $6,407,050 can be carried forward indefinitely and remainder can be carried 20 years and Canadian net operating loss carryforwards of $17,543,639, of which $16,215,951 will begin to expire in 2040 and the remainder is carried forward indefinitely.

The Company's effective tax rate varied from the statutory rate as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| Federal income tax at the statutory rate | (21.0)% | (21.0)% |
| State income tax rate (net of federal) | (2.1)% | (1.2)% |
| Foreign tax rate differential | 2.1% | (3.0)% |
| Non-deductible expenses | 1.0% | 1.4% |
| Deferred true-up | 11.6% | 13.2% |
| Change in valuation allowance | 8.5% | 10.8% |
| Effective income tax rate | 0.1% | 0.2% |

---

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The valuation allowance increased by $817,820 and $1,859,862 during the years ended December 31, 2024 and 2023, respectively.

The Company files U.S. federal and state returns. The Company's foreign subsidiary also files a local tax return in their local jurisdiction. From a U.S. federal, state and Canadian perspective the years that remain open to examination are consistent with each jurisdiction's statute of limitations.

 ****

***Section 382***

The utilization of the Company's net operating losses may be subject to a substantial limitation in the event of any significant future changes in its ownership structure under Section 382 of the Internal Revenue Code and similar state provisions. Such limitation may result in the expiration of the net operating loss carryforwards before their utilization. We have not conducted any studies to determine annual limitations, if any, that could result from such changes in ownership.

 ****

***Section 174***

Beginning in 2022, the Tax Cuts and Jobs Act of 2017 ("TCJA") eliminated the option to deduct research and development expenditures in the current year and requires taxpayers to amortize US expenses over five years and foreign expense over fifteen years pursuant to IRC Section 174. During the years ended December 31, 2024 and 2023, the Company has estimated and capitalized gross $202,147 and $463,696, respectively, of research and development expenditures that will be amortized primarily over five years. This did not have a material impact on the Company's tax liability for the years ended December 31, 2024 and 2023. The Company will continue to evaluate the impact of these tax law changes on the current and future periods.

**NOTE 14. SUBSEQUENT EVENTS**

On January 30, 2025, the Company commenced a best efforts public offering (the "Offering") of an aggregate of (i) 102,444 shares (the "Shares") of Common Stock of the Company, (ii) 36,444 pre-funded warrants (the "Pre-Funded Warrants") to purchase 36,444 shares of Common Stock (the "Pre-Funded Warrant Shares"), (iii) 138,889 Series A warrants (the "Series A Warrants") to purchase 138,889 shares of Common Stock (the "Series A Warrant Shares"), and (iv) 138,889 Series B warrants (the "Series B Warrants," and together with the Series A Warrants, the "Warrants") to purchase 138,889 shares of Common Stock (the "Series B Warrant Shares"). Each Share or Pre-Funded Warrant was sold together with one Series A Warrant to purchase one share of Common Stock and one Series B Warrant to purchase one share of Common Stock. The offering price for each Share and accompanying Warrants was $36.00, and the offering price for each Pre-Funded Warrant and accompanying Warrants was $35.9988. The Pre-Funded Warrants have an exercise price of $0.0012 per share, are exercisable immediately and will expire when exercised in full. Each Warrant has an exercise price of $36.00 per share and will be exercisable immediately upon issuance ("Initial Exercise Date"). The Series A Warrants expire on the five-year anniversary of the Initial Exercise Date. The Series B Warrants expire on the 18-month anniversary of the Initial Exercise Date.

The Offering closed on February 3, 2025. The net proceeds of the Offering, after deducting the fees and expenses of the Placement Agent (as defined below), described in more detail below, and other offering expenses payable by the Company, but excluding the net proceeds, if any, from the exercise of the Warrants, is approximately $4.2 million. The Company intends to use the net proceeds from the Offering for working capital, EB-003 development, and general corporate purposes.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

In connection with the Offering, the Company entered into a securities purchase agreement (the "Purchase Agreement") with a certain institutional investor. Pursuant to the Purchase Agreement, the Company agreed not to issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock or file any registration statement or prospectus, or any amendment or supplement thereto for 60 days after the closing date of the Offering, subject to certain exceptions. In addition, the Company has agreed not to effect or enter into an agreement to effect any issuance of Common Stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock involving a variable rate transaction (as defined in the Purchase Agreement) until the one-year anniversary of the closing date of the Offering, subject to an exception.

A holder will not have the right to exercise any portion of the Warrants or Pre-Funded Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% or 9.99%, as applicable, of the number of shares of Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Warrants or the Pre-Funded Warrants, respectively.

Pursuant to an engagement agreement, as amended, (the "Engagement Agreement") with H.C. Wainwright & Co., LLC (the "Placement Agent"), the Company agreed to pay the Placement Agent in connection with the Offering (i) a cash fee equal to 7.0% of the aggregate gross proceeds received in the Offering, (ii) a management fee equal to 1.0% of the aggregate gross proceeds received in the Offering, (iii) a non-accountable expense allowance of $25,000, (iv) reimbursement of up to $100,000 for legal fees and expenses and other out of pocket expenses and (v) up to $15,950 for the clearing expenses.

Also pursuant to the Engagement Agreement, the Company, in connection with the Offering, agreed to issue to the Placement Agent or its designees warrants (the "Placement Agent Warrants") to purchase up to an aggregate of 9,723 shares of Common Stock (the "Placement Agent Warrant Shares") (which represents 7.0% of the Shares and Pre-Funded Warrants sold in the Offering). The Placement Agent Warrants have an exercise price of $45.00 per share (which represents 125% of the public offering price per Share and accompanying Warrants), expire on January 30, 2030, and are exercisable following the Initial Exercise Date.

During February 2025, a total of 36,444 shares of Common Stock have been issued due to exercises of the Pre-Funded Warrants and 2,084 shares of Common Stock have been issued due to exercises of Series B Warrants.

On February 3, 2025, Akos entered into two licensing agreements with Restoration Biologics LLC ("Restoration Biologics"), a biotechnology company focused on the treatment of joint disease. The companies have executed two licenses for Akos' cannabinoid-COX-2 conjugate compounds, for pharmaceutical and potential non-pharmaceutical applications.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
|  | **(Unaudited)** |  |
| **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;**Current assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $3757594 | $2241026 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 407946 | 493558 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **4165540** | **2734584** |
| &nbsp;&nbsp;&nbsp;**Other assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 196521 | 305777 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net |  | 42182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other assets** | **196521** | **347959** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**4362061** | $**3082543** |
| **LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;**Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $683707 | $521747 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties |  | 232891 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities | 222178 | 735098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **905885** | **1489736** |
| **Commitments and contingencies (Note 9)** |  |  |
| **Mezzanine equity** |  |  |
| &nbsp;&nbsp;&nbsp;Series C redeemable preferred stock, $0.01 par value, 100,000 shares authorized, and 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total mezzanine equity** |  |  |
| **Shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.01 par value, 20,000,000 shares authorized; Series B preferred stock, $0.01 par value, 3,600,000 shares authorized, 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Common Stock, $0.01 par value, 100,000,000 shares authorized, 518,296 and 56,501 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 5183 | 565 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 116684259 | 108261264 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (112652321) | (106074505) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (580945) | (594517) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity** | **3456176** | **1592807** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities, mezzanine equity, and shareholders' equity** | $**4362061** | $**3082543** |

---

See the accompanying notes to the unaudited condensed consolidated financial statements.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended<br> September 30,** | **For the Three Months Ended<br> September 30,** | **For the Nine Months Ended<br> September 30,** | **For the Nine Months Ended<br> September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | $1431157 | $1195661 | $4010313 | $4329565 |
| &nbsp;&nbsp;&nbsp;Research and development | 402417 | 802717 | 2408839 | 1873873 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 40369 | 84814 | 161373 | 255002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | 1873943 | 2083192 | 6580525 | 6458440 |
| **Loss from operations** | (1873943) | (2083192) | (6580525) | (6458440) |
| **Other income (expense)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other (expense) income |  | (623) | 2565 | 39386 |
| &nbsp;&nbsp;&nbsp;Interest income (expense), net | 274 | (217) | 144 | 444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other income (expense)** | 274 | (840) | 2709 | 39830 |
| **Net loss before income taxes** | $(1873669) | $(2084032) | $(6577816) | $(6418610) |
| Income tax expense |  |  |  | (1731) |
| **Net loss** | (1873669) | (2084032) | (6577816) | (6420341) |
| &nbsp;&nbsp;&nbsp;Less deemed dividend on inducement of warrants | 1513449 |  | 1513449 |  |
| **Net loss attributable to shareholders** | (3387118) | (2084032) | (8091265) | (6420341) |
| **Other comprehensive loss** |  |  |  |  |
| Foreign currency translation | (7414) | 31497 | 13572 | 34751 |
| **Comprehensive loss** | $(3394532) | $(2052535) | $(8077693) | $(6385590) |
| Net loss per share - basic and diluted | $(10.81) | $(43.10) | $(35.74) | $(170.67) |
| Weighted average shares outstanding, basic and diluted | 313242 | 48350 | 226400 | 37618 |

---

 

See the accompanying notes to the unaudited condensed consolidated financial statements. 

 

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2025** |
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | <br>**Additional<br> Paid-In Capital** | <br>**Accumulated<br> Deficit** | <br>**Accumulated<br> Other<br> Comprehensive<br> Loss** | <br>**Total<br> Shareholders'Equity** |
| **Balance at January 1, 2025** | 56501 | $565 | $108261264 | $(106074505) | $(594517) | $1592807 |
| &nbsp;&nbsp;&nbsp;Issuance of Common Stock and Series A and B and prefunded warrants for cash, net of offering costs of $755,487 | 102444 | 1024 | 4243443 |  |  | 4244467 |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for vested RSAs | 1215 | 12 | (12) |  |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for exercise of warrants | 38528 | 385 | 74659 |  |  | 75044 |
| &nbsp;&nbsp;&nbsp;Issuance of round up shares | 7283 | 73 | (73) |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock based compensation |  |  | 193848 |  |  | 193848 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation loss |  |  |  |  | (3487) | (3487) |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (2184966) |  | (2184966) |
| **Balance at March 31, 2025** | 205971 | 2059 | 112773129 | (108259471) | (598004) | $3917713 |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for cash pursuant to ATM Agreement, net of offering costs of $179,714 | 46197 | 462 | 555042 |  |  | 555504 |
| &nbsp;&nbsp;&nbsp;Stock based compensation |  |  | 206260 |  |  | 206260 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation gain |  |  |  |  | 24473 | 24473 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (2519181) |  | (2519181) |
| **Balance at June 30, 2025** | 252168 | 2521 | 113534431 | (110778652) | (573531) | $2184769 |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for cash pursuant to ATM Agreement, net of offering costs of $37,365 | 64045 | 641 | 1080654 |  |  | 1081295 |
| &nbsp;&nbsp;&nbsp;Exercise of Series A and B Warrants for common shares, net of offering costs of $424,659 | 202083 | 2021 | 1882193 |  |  | 1884214 |
| &nbsp;&nbsp;&nbsp;Deemed dividend on inducement of warrants of $1,513,449 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock based compensation |  |  | 186981 |  |  | 186981 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation loss |  |  |  |  | (7414) | (7414) |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (1873669) |  | (1873669) |
| **Balance at September 30, 2025** | 518296 | $5183 | $116684259 | $(112652321) | $(580945) | $3456176 |

---

See the accompanying notes to the unaudited condensed consolidated financial statements.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024** | **FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024** |
|  | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | <br>**Additional<br> Paid-In<br> Capital** | <br>**Subscription<br> Receivable** | <br>**Accumulated<br> Deficit** | <br>**Accumulated<br> Other<br> Comprehensive<br> Loss** | <br>**Total<br> Shareholders' Equity** |
| **Balance at January 1, 2024** | 15219 | $152 | $100843091 | $(1817640) | $(96499518) | $(569749) | $1956336 |
| &nbsp;&nbsp;&nbsp;Common Stock sold under the Equity Distribution Agreement, net of offering costs of $583,713 | 9267 | 93 | 1808696 |  |  |  | 1808789 |
| &nbsp;&nbsp;&nbsp;Issuance of direct offering shares | 1271 | 13 | 322440 |  |  |  | 322453 |
| &nbsp;&nbsp;&nbsp;Exercise of Inducement Warrants for Common Stock | 10856 | 109 | 2676871 |  |  |  | 2676980 |
| &nbsp;&nbsp;&nbsp;Proceeds from the subscription receivable related to the issuance of Inducement Warrants, net of offering costs of $12,821 |  |  | (12821) | 280500 |  |  | 267679 |
| &nbsp;&nbsp;&nbsp;Proceeds from the subscription receivable related to the exercise of warrants and preferred investment options and issuance of Common Stock in abeyance | 3912 | 39 | (39) | 1537140 |  |  | 1537140 |
| &nbsp;&nbsp;&nbsp;Stock based compensation |  |  | 351488 |  |  |  | 351488 |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation gain |  |  |  |  |  | 17906 | 17906 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (2456915) |  | (2456915) |
| **Balance at March 31, 2024** | 40525 | 406 | 105989726 |  | (98956433) | (551843) | 6481856 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 369614 |  |  |  | 369614 |
| &nbsp;&nbsp;&nbsp;Common Stock sold under the Purchase Agreement, net of offering costs of $82,850 | 695 | 7 | (7) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of direct offering shares | 2545 | 25 | 448815 |  |  |  | 448840 |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for vested RSU | 9 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation loss |  |  |  |  |  | (14652) | (14652) |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (1879394) |  | (1879394) |
| **Balance at June 30, 2024** | 43774 | 438 | 106808148 |  | (100835827) | (566495) | 5406264 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation |  |  | 369614 |  |  |  | 369614 |
| &nbsp;&nbsp;&nbsp;Common Stock sold under the Purchase Agreement, net of offering costs of $290,029 | 6059 | 61 | 227746 |  |  |  | 227807 |
| &nbsp;&nbsp;&nbsp;Issuance of common shares for vested RSU | 144 | 1 | (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange translation gain |  |  |  |  |  | 31497 | 31497 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  |  | (2084032) |  | (2084032) |
| **Balance at September 30, 2024** | 49977 | $500 | $107405507 | $— | $(102919859) | $(534998) | $3951150 |

---

See the accompanying notes to the unaudited condensed consolidated financial statements.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
|  | **2025** | **2024** |
| **Cash Flows From Operating Activities:** |  |  |
| Net loss | $(6577816) | $(6420341) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash used in operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | (858) | (20722) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of investment option liability | (1707) | (18664) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 587089 | 1090716 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles | 42180 | 126564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 119193 | 128438 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (128683) |  |
| &nbsp;&nbsp;&nbsp;**Change in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 132795 | (3674) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other current liabilities | (295982) | (1296907) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | (232891) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (6356680) | (6414590) |
| **Cash Flows From Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of Common Stock and warrants, net of offering costs | 4244467 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from Common Stock sold for cash pursuant to the ATM Agreement, net of offering costs | 1636799 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the exercise of warrants, net of offering costs | 2009095 | 2676980 |
| &nbsp;&nbsp;&nbsp;Proceeds from the subscription receivable related to the issuance of Inducement Warrants and the exercise of warrants and preferred investment options |  | 1804819 |
| &nbsp;&nbsp;&nbsp;Proceeds from Common Stock sold under the Equity Distribution Agreement, net of offering costs |  | 2290186 |
| &nbsp;&nbsp;&nbsp;Proceeds from Common Stock sold under the Purchase Agreement, net of offering costs |  | 599862 |
| &nbsp;&nbsp;&nbsp;Payment for offering costs previously accrued |  | (161461) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 7890361 | 7210386 |
| Effect of foreign exchange rate on changes on cash | (17113) | 27910 |
| Net increase in cash | 1516568 | 823706 |
| Cash at beginning of period | 2241026 | 2287977 |
| Cash at end of period | $3757594 | $3111683 |
| **Supplemental disclosure of cash flow transactions:** |  |  |
| Cash paid for interest | $— | $— |
| Income taxes paid | $3000 | $24001 |
| **Non-cash financing and investing activities:** |  |  |
| Non-cash issuance of round-up shares | $73 | $— |
| Non-cash issuance of RSA vested shares | $12 | $— |
| Offering costs accrued not paid | $49837 | $35455 |
| Deferred offering costs not paid | $33624 | $— |
| Deemed dividend on inducement of warrants | $1513449 | $— |
| Issuance of Placement Agent Warrants as offering costs | $237564 | $— |
| Issuance of common shares for offering costs | $— | $771293 |
| Deferred offering costs charged to offering costs | $— | $495544 |

---

See the accompanying notes to the unaudited condensed consolidated financial statements.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1. BUSINESS AND LIQUIDITY AND OTHER UNCERTAINTIES**

 ****

***Nature of Operations***

Enveric Biosciences, Inc. ("Enveric" or the "Company") is a biotechnology company focused on developing next-generation, small-molecule neuroplastogenic therapeutics that address unmet needs in psychiatric and neurological disorders. The head office of the Company is located in Cambridge, Massachusetts. The Company has the following wholly-owned subsidiaries: Jay Pharma Inc. ("Jay Pharma"), 1306432 B.C. Unlimited Liability Company, 1236567 B.C. Unlimited Liability Company, MagicMed USA, Inc. ("MagicMed"), Enveric Biosciences Canada Inc., Akos Biosciences, Inc. ("Akos"), and Enveric Therapeutics, Pty. Ltd. ("Enveric Therapeutics").

Enveric's lead candidate, EB-003, is the first known compound designed to selectively engage both 5-HT<sub>2A</sub> and 5-HT<sub>1B</sub> receptors with the potential to deliver fast-acting, durable antidepressant and anxiolytic effects with outpatient convenience. By leveraging a differentiated drug discovery platform and a growing library of patent protected chemical structures, Enveric is advancing a pipeline of novel compounds designed to promote neuroplasticity without hallucinogenic effects. Previously, Enveric was developing the EVM201 Series, and its lead drug candidate EB-002 (formerly EB-373), for the treatment of neuropsychiatric disorders. The EVM201 series comprised next generation synthetic prodrugs of the active metabolite, psilocin. In the fourth quarter of 2024, Enveric out-licensed the EVM201 Series program to MycoMedica Life Sciences, who will seek to develop, manufacture, and commercialize EB-002, in exchange for certain development and milestone payments to Enveric.

The Company unveiled an EVM401 Series on February 25, 2025, which is intended to broaden its pipeline with additional non-hallucinogenic molecules and strengthen the Company's ability to target addiction and neuropsychiatric disorders for patients with limited options. While the Company intends to pursue development of the EVM401 Series, its primary focus is to develop its lead asset EB-003 in the EVM301 Series. The Company's next step is to advance EB-003 into formal preclinical development studies in support of a future Investigational New Drug ("IND") filing.

***Reverse Stock Splits***

 ****

The Company effected a 1-for-15 reverse stock split ("Reverse Stock Split") on January 27, 2025, which began trading on a split-adjusted basis on January 29, 2025, pursuant to which every 15 shares of the Company's issued and outstanding common stock, par value $0.01 per share ("Common Stock"), were reclassified as one share of Common Stock. The Reverse Stock Split had no impact on the par value of the Company's Common Stock or the authorized number of shares of Common Stock. Unless otherwise indicated, all share and per share information prior to the Reverse Stock Split date of January 29, 2025 in these unaudited condensed consolidated financial statements are retroactively adjusted to reflect the Reverse Stock Split, prior to the rounding of any fractional shares. Any fractional share resulting from the Reverse Stock Split were rounded up to the next whole number of shares, upon which 7,283 roundup shares were issued in January 2025.

The Company effected a 1-for-12 reverse stock split ("Second Reverse Stock Split") on October 23, 2025, which began trading on a split-adjusted basis on October 28, 2025, pursuant to which every 12 shares of the Company's issued and outstanding Common Stock were reclassified as one share of Common Stock. The Second Reverse Stock Split had no impact on the par value of the Company's Common Stock or the authorized number of shares of Common Stock. Unless otherwise indicated, all share and per share information prior to the Second Reverse Stock Split date of October 28, 2025 in these unaudited condensed consolidated financial statements are retroactively adjusted to reflect the Second Reverse Stock Split, prior to the rounding of any fractional shares. Any fractional share resulting from the Second Reverse Stock Split were rounded up to the next whole number of shares, upon which 78,682 roundup shares were issued in November 2025.

***Going Concern, Liquidity and Other Uncertainties***

The Company has incurred losses since inception resulting in an accumulated deficit of $112,652,321 as of September 30, 2025 and further losses are anticipated in the development of its business. Further, the Company has operating cash outflows of $6,356,680 for the nine months ended September 30, 2025. For the nine months ended September 30, 2025, the Company had a loss from operations of $6,580,525. Since inception, being a research and development company, the Company has not yet generated revenue and the Company has incurred continuing losses from its operations. The Company's operations have been funded principally through the issuance of equity. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these unaudited condensed consolidated financial statements.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

In assessing the Company's ability to continue as a going concern, the Company monitors and analyzes its cash and its ability to generate sufficient cash flow in the future to support its operating and capital expenditure commitments. At September 30, 2025, the Company had cash of $3,757,594 and working capital of $3,259,655. The Company's current cash on hand is not sufficient enough to satisfy its operating cash needs for the 12 months from the filing of this Quarterly Report on Form 10-Q. These conditions raise substantial doubt regarding the Company's ability to continue as a going concern for a period of one year after the date the unaudited condensed consolidated financial statements are issued. Management's plan to alleviate the conditions that raise substantial doubt include raising additional working capital through public or private equity or debt financings or other sources, and may include additional collaborations with third parties as well as disciplined cash spending. Adequate additional financing may not be available to the Company on acceptable terms, or at all. Should the Company be unable to raise sufficient additional capital, the Company may be required to undertake further cost-cutting measures including delaying or discontinuing certain operating activities.

As a result of these factors, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern for a period of one year after the date of the unaudited condensed consolidated financial statements are issued. The Company's unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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

***Basis of Presentation and Principal of Consolidation***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. Management's opinion is that all adjustments (consisting of normal accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2024, and related notes thereto included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 28, 2025.

The Company's significant accounting policies and recent accounting standards are summarized in Note 2 of the Company's consolidated financial statements for the year ended December 31, 2024. There were no significant changes to these accounting policies during the three and nine months ended September 30, 2025.

***Use of Estimates***

 ****

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and expenses during the periods reported. By their nature, these estimates are subject to measurement uncertainty and the effects on the financial statements of changes in such estimates in future periods could be significant. Significant areas requiring management's estimates and assumptions include determining the fair value of transactions involving Common Stock, the valuation of warrants, the valuation of stock-based compensation and accruals associated with third party providers supporting research and development efforts. Actual results could differ from those estimates.

***Reclassification***

Certain reclassifications have been made to the prior period's unaudited condensed consolidated financial statements in order to conform to the current year presentation. In the prior year, the Company included certain consulting expenses within general and administrative expenses on the unaudited condensed consolidated statements of operations. These expenses were reclassified to research and development expenses in the current year. Additionally, the Company has reclassified investment option liability and warrant liability to accrued expenses and other current liabilities on the unaudited condensed consolidated balance sheets and change in fair value of investment option liability and warrant liability to other income on the unaudited condensed consolidated statements of operations in the current year. These reclassifications had no effect on the Company's previously reported results of operations, changes in equity, or cash flows.

***Foreign Currency Translation***

From inception through September 30, 2025, the reporting currency of the Company was the United States dollar while the functional currency of certain of the Company's subsidiaries was the Canadian dollar or the Australian dollar. For the reporting periods ended September 30, 2025 and 2024, the Company engaged in a number of transactions denominated in Canadian dollars and Australian dollars. As a result, the Company is subject to exposure from changes in the exchange rates of the Canadian dollar and Australian dollar against the United States dollar.

The Company translates the assets and liabilities of its Canadian subsidiaries and Australian subsidiary into the United States dollar at the exchange rate in effect on the balance sheet date. Revenues and expenses are translated at the average exchange rate in effect during each monthly period. Unrealized translation gains and losses are recorded as foreign currency translation gain (loss), which is included in the unaudited condensed consolidated statements of shareholders' equity as a component of accumulated other comprehensive loss.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

The Company has not entered into any financial derivative instruments that expose it to material market risk, including any instruments designed to hedge the impact of foreign currency exposures. The Company may, however, hedge such exposure to foreign currency exchange fluctuations in the future.

Adjustments that arise from exchange rate changes on transactions denominated in a currency other than the local currency are included in other comprehensive loss in the unaudited condensed consolidated statements of operations and comprehensive loss as incurred.

***Concentration of Credit Risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the federal depository insurance coverage of $250,000 in the United States, AUD$250,000 in Australia and C$100,000 in Canada. The Company has not experienced losses on these accounts, and management believes the Company is not exposed to significant risks on such accounts. As of September 30, 2025 and December 31, 2024, the Company had greater than $250,000 at United States financial institutions, less than AUD$250,000 in an Australian financial institution, and less than C$100,000 at a Canadian financial institution.

***Income Taxes***

The Company files U.S. federal and state returns. The Company's foreign subsidiary also files a local tax return in their local jurisdiction. From a U.S. federal, state, and Canadian perspective, the years that remain open to examination are consistent with each jurisdiction's statute of limitations. The Company receives no tax benefit from operating losses due to a full valuation allowance.

***Net Loss per Share***

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the period. Diluted loss per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company uses the two-class method to determine earnings per share only when the Company is in an income position. Potential common shares consist of the incremental common shares issuable upon the exercise of stock options and warrants (using the treasury stock method). The computation of basic net loss per share for the three and nine months ended September 30, 2025 and 2024 excludes potentially dilutive securities. The computations of net loss per share for each period presented is the same for both basic and fully diluted. In accordance with ASC 260 "Earnings per Share" ("ASC 260"), penny warrants were included in the calculation of weighted average shares outstanding for the purposes of calculating basic and diluted earnings per share. In accordance with ASC 260, 560 RSUs that were fully vested on September 30, 2025 were included in basic and dilutive earnings per share as there were no remaining contingencies for these shares to be issued as of September 30, 2025.

Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share the three and nine months ended September 30, 2025 and 2024 because the effect of their inclusion would have been anti-dilutive.

SCHEDULE OF POTENTIALLY DILUTIVE SECURITIES

---

| | | |
|:---|:---|:---|
|  | **For the three and<br> nine months ended<br> September 30, 2025** | **For the three and<br> nine months ended<br> September 30, 2024** |
| Warrants to purchase shares of Common Stock | 505887 | 4693 |
| Restricted stock units - vested and unissued | 276 | 115 |
| Restricted stock units - unvested | 22835 | 1954 |
| Investment options to purchase shares of Common Stock | 389 | 389 |
| Options to purchase shares of Common Stock | 129 | 129 |
| Total potentially dilutive securities | 529516 | 7280 |

---

***Segment Reporting***

The Company operates as one operating segment with a focus on developing novel neuroplastogenic small-molecule therapeutics for the treatment of depression, anxiety, and addiction disorders. The Company's Chief Executive Officer ("CEO") as the Chief Operating Decision Maker ("CODM"), manages and allocates resources to the operations of the Company on a consolidated basis. Consolidated loss from operations, which is reported in the accompanying unaudited condensed consolidated statements of operations, is the measure of segment profit or loss that is regularly reviewed by the CODM. This enables the CEO to assess the overall level of available resources and determine how best to deploy these resources across research and development projects in line with the long-term company-wide strategic goals. Refer to the accompanying unaudited condensed consolidated statements of operations for the presentation of consolidated loss from operations for the three and nine months ended September 30, 2025 and 2024. The measure of segment assets is reported in the accompanying unaudited condensed consolidated balance sheets as "Total assets." There are no significant segment expenses as the expenses that are included in consolidated loss from operations are general and administrative and research and development.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 3. PREPAID EXPENSES AND OTHER CURRENT ASSETS**

As of September 30, 2025 and December 31, 2024, the prepaid expenses and other current assets of the Company consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Prepaid insurance | $186671 | $107610 |
| Prepaid other | 124463 | 152894 |
| Prepaid product development | 59106 |  |
| Deferred offering costs | 33624 |  |
| Prepaid value-added taxes | 4082 | 233054 |
| **Total prepaid expenses and other current assets** | $407946 | $493558 |

---

**NOTE 4. PROPERTY AND EQUIPMENT**

Property and equipment consists of the following assets which are located in Calgary, Canada, with all amounts translated into U.S. dollars:

SCHEDULE OF PROPERTY AND EQUIPMENT NET OF ACCUMULATED DEPRECIATION

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Lab equipment | $794932 | $769105 |
| Computer equipment and leasehold improvements | 26961 | 26073 |
| Less: Accumulated depreciation | (625372) | (489401) |
| **Property and equipment, net of accumulated depreciation** | $196521 | $305777 |

---

Depreciation expense was $40,369 and $42,626 for the three months ended September 30, 2025 and 2024, respectively and $119,193 and $128,438 for the nine months ended September 30, 2025 and 2024, respectively.

**NOTE 5. ACCRUED LIABILITIES**

As of September 30, 2025 and December 31, 2024, the accrued liabilities of the Company consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **September 30, 2025** | **December 31, 2024** |
| Product development | $25058 | $350421 |
| Professional fees | 191446 | 103968 |
| Accrued franchise taxes | 3823 | 261100 |
| Other | 1851 | 19609 |
| **Total accrued liabilities** | $222178 | $735098 |

---

**NOTE 6. RELATED PARTY TRANSACTIONS**

As of September 30, 2025 and December 31, 2024, the Company had current liabilities of $0 and $232,891, respectively, due to related parties. This balance is related to payments due to board members of the Company.

Board member Sheila DeWitt has provided research and development services as an advisory consultant to the Company since May 2022. These services are provided as needed on an hourly basis. During the three and nine months ended September 30, 2025, the Company incurred $0 and $3,250, respectively, in service fees related to these services. Of these fees, $3,250 has been paid and there is no balance outstanding included in due to related parties on the unaudited condensed consolidated balance sheet as of September 30, 2025. During the three and nine months ended September 30, 2024, the Company incurred $37,000 and $132,000, respectively, in service fees related to these services.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 7. SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS**

***Public Offering***

On January 30, 2025, the Company commenced a best efforts public offering (the "Offering") of an aggregate of (i) 102,444 shares (the "Shares") of Common Stock of the Company, (ii) 36,444 pre-funded warrants (the "Pre-Funded Warrants") to purchase 36,444 shares of Common Stock (the "Pre-Funded Warrant Shares"), (iii) 138,889 Series A warrants (the "Series A Warrants") to purchase 138,889 shares of Common Stock (the "Series A Warrant Shares"), and (iv) 138,889 Series B warrants (the "Series B Warrants," and together with the Series A Warrants, the "Warrants") to purchase 138,889 shares of Common Stock (the "Series B Warrant Shares"). Each Share or Pre-Funded Warrant was sold together with one Series A Warrant to purchase one share of Common Stock and one Series B Warrant to purchase one share of Common Stock. The offering price for each Share and accompanying Warrants was $36.00, and the offering price for each Pre-Funded Warrant and accompanying Warrants was $35.9988. The Pre-Funded Warrants have an exercise price of $0.0012 per share, are exercisable immediately and will expire when exercised in full. Each Warrant has an exercise price of $36.00 per share and will be exercisable immediately upon issuance ("Initial Exercise Date"). The Series A Warrants expire on the five-year anniversary of the Initial Exercise Date. The Series B Warrants expire on the 18-month anniversary of the Initial Exercise Date.

The Offering closed on February 3, 2025. The net proceeds of the Offering, after deducting the fees and expenses of the Placement Agent (as defined below), described in more detail below, and other offering expenses payable by the Company, but excluding the net proceeds from the exercise of the Warrants, is $4,244,467.

All of the Warrants issued in connection with the Offering were determined to be equity classified in accordance with the guidance at ASC 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging.

In connection with the Offering, the Company entered into a securities purchase agreement (the "Purchase Agreement") with a certain institutional investor. Pursuant to the Purchase Agreement, the Company agreed not to issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock or file any registration statement or prospectus, or any amendment or supplement thereto for 60 days after the closing date of the Offering, subject to certain exceptions. In addition, the Company has agreed not to effect or enter into an agreement to effect any issuance of Common Stock or any securities convertible into or exercisable or exchangeable for shares of Common Stock involving a variable rate transaction (as defined in the Purchase Agreement) until the one-year anniversary of the closing date of the Offering, subject to an exception.

A holder will not have the right to exercise any portion of the Warrants or Pre-Funded Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% or 9.99%, as applicable, of the number of shares of Common Stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Warrants or the Pre-Funded Warrants, respectively.

Pursuant to an engagement agreement, as amended, (the "Engagement Agreement") with H.C. Wainwright & Co., LLC (the "Placement Agent"), the Company agreed to pay the Placement Agent in connection with the Offering (i) a cash fee equal to 7.0% of the aggregate gross proceeds received in the Offering, (ii) a management fee equal to 1.0% of the aggregate gross proceeds received in the Offering, (iii) a non-accountable expense allowance of $25,000, (iv) reimbursement of up to $100,000 for legal fees and expenses and other out of pocket expenses and (v) up to $15,950 for the clearing expenses.

Also pursuant to the Engagement Agreement, the Company, in connection with the Offering, agreed to issue to the Placement Agent or its designees warrants (the "Placement Agent Warrants") to purchase up to an aggregate of 9,723 shares of Common Stock (the "Placement Agent Warrant Shares") (which represents 7.0% of the Shares and Pre-Funded Warrants sold in the Offering). The Placement Agent Warrants have an exercise price of $45.00 per share (which represents 125% of the public offering price per Share and accompanying Warrants), expire on February 3, 2030, and are exercisable following the Initial Exercise Date. The grant date fair value of the Placement Agent Warrants were $147,564 on February 3, 2025 and were recorded as offering costs. The measurement of fair value of Placement Agent Warrants were determined utilizing a Black-Scholes model considering all relevant assumptions current at the date of issuance (i.e., share price of $21.72, exercise price of $45.00, term of five years, volatility of 106%, risk-free rate of 4.4%, and expected dividend rate of 0%).

As of September 30, 2025, a total of 36,444 shares of Common Stock have been issued due to exercises of the Pre-Funded Warrants. Prior to the inducement warrant transaction discussed below, 2,084 shares of Common Stock have been issued due to exercises of the Series B Warrants.

***Inducement Warrant Transaction***

 ****

On September 17, 2025, the Company entered into warrant exercise inducement offer letters (the "Inducement Letters") with certain holders of the Company's Series A Warrants and Series B Warrants originally issued in February 2025 (collectively, the "Existing Warrants"), which closed on September 18, 2025. Pursuant to the Inducement Letters, the holders agreed to exercise for cash their Existing Warrants to purchase 202,083 shares of the Company's Common Stock, in the aggregate, at a reduced exercise price of $10.98 per share (from an original exercise price of $36.00 per share), in exchange for the Company's agreement to issue new warrants (the "Series C Warrants" and "Series D Warrants," collectively, the "Inducement Warrants") to purchase up to 404,166 shares of the Company's Common Stock under each series (the "Inducement Warrant Shares"). Pursuant to Nasdaq Listing Rule 5635(d), the Company is required to obtain approval from the Company's stockholders before issuing any underlying Inducement Warrant Shares upon exercise of the Inducement Warrants ("Stockholder Approval").

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

The Series C Warrants have an exercise price of $10.98 per share and expire five years from the date Stockholder Approval is received. The Series D Warrants have the same exercise price and expire eighteen months from the date Stockholder Approval is received. The inducement warrant transaction closed on September 18, 2025. The Company received aggregate gross proceeds of $2,218,873 from the exercise of the Existing Warrants by the holders.

All of the Inducement Warrants issued in connection with the inducement warrant transaction were determined to be equity classified in accordance with the guidance at ASC 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging.

The Company engaged the Placement Agent to act as its exclusive placement agent in connection with the transactions summarized above and agreed to pay the Placement Agent a cash fee equal to 7.0% of the gross proceeds as well as a management fee equal to 1.0% of the aggregate gross proceeds from the exercise of the Existing Warrants, plus reimbursement for certain expenses and the issuance of 14,146 placement agent warrants. The placement agent warrants have the same terms as the Series C Warrants, except the placement agent warrants have an exercise price of $13.7256 per share. The grant date fair value of these placement agent warrants was estimated to be $90,000 on September 18, 2025 and was charged to additional paid-in capital as issuance costs. The Company also incurred legal and other offering-related fees of $334,659, which were similarly charged to additional paid-in capital.

The Company agreed to file a registration statement on Form S-3 covering the resale of the Inducement Warrant Shares issued or issuable upon the exercise of the Inducement Warrants within 10 days of entering into the Inducement Letters. Pursuant to the Inducement Letters, the Company agreed not to issue any shares of Common Stock or Common Stock equivalents or to file any other registration statement with the SEC (in each case, subject to certain exceptions) for a period ending on October 2, 2025. The Company also agreed not to effect or agree to effect any variable rate transaction (as defined in the Inducement Letters) until September 17, 2026.

In connection with this inducement warrant transaction, the Company determined the fair value of the Existing Warrants immediately prior to the Inducement Letters and the intrinsic value of the Existing Warrants immediately after the modification. The fair value of the Existing Warrants immediately prior to the Inducement Letters was $636,662 and was determined utilizing a Black-Scholes model considering all relevant assumptions current at the date of issuance (i.e., (1) risk-free interest rate of 3.6%; (2) expected life in years of 4.38 and 0.88 for the Series A Warrants and Series B Warrants, respectively (3) expected stock volatility of 129.0% and 134.0% for the Series A Warrants and Series B Warrants, respectively; and (4) expected dividend yields of 0%). The reduced Existing Warrants were exercisable at market price and therefore had no fair value.

The measurement of fair value of the Inducement Warrants were determined utilizing a Black-Scholes model considering all relevant assumptions current at the date of issuance (i.e., (1) risk-free interest rates of 3.6% and 3.5% for the Series C Warrants and Series D Warrants, respectively; (2) expected life in years of 5.23 and 1.73 for the Series C Warrants and Series D Warrants, respectively; (3) expected stock volatility of 126.0% and 125.0% for the Series C Warrants and Series D Warrants, respectively; and (4) expected dividend yields of 0%). The grant date fair value of these Inducement Warrants was estimated to be $2,150,111 on September 18, 2025 and is reflected within additional paid-in capital as of September 30, 2025. The deemed dividend, calculated as the difference between the fair value of all securities and other consideration transferred in the transaction in excess of the fair value of securities issuable pursuant to the original warrant terms, was $1,513,449. In accordance with ASC 260, earnings per share, the deemed dividend was also recorded as an increase in net loss available to common stockholders for purposes of calculating net loss per share.

***At the Market Offering***

The Company entered into an at the market offering agreement, or the ("ATM Agreement"), with H.C. Wainwright & Co., LLC, or ("Wainwright"), acting as sales agent, on April 9, 2025, relating to shares of Common Stock. Under the ATM Agreement, the Company may offer and sell shares of Common Stock having an aggregate offering price of up to $1,854,151 from time to time through Wainwright. Wainwright will receive 3% of the gross sales price of the shares sold as a placement fee.

Because the purchase price per share to be paid for the shares of Common Stock that the Company may elect to sell under the ATM Agreement, if any, will fluctuate based on the market prices of the Company's Common Stock at the time the Company elects to sell shares pursuant to the ATM Agreement, if any, it is not possible for us to predict the number of shares of Common Stock that the Company will sell under the ATM Agreement, the purchase price per share the buyer will pay for shares purchased from the Company under the ATM Agreement, or the aggregate gross proceeds that the Company will receive from those purchases under the ATM Agreement.

As of September 30, 2025, the Company has issued 110,242 shares under the ATM Agreement for net cash proceeds of $1,636,799.

**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

***Stock Options***

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***2020 Long-Term Incentive Plan, as amended ("Incentive Plan")***

Effective March 21, 2025, the Board approved an equitable adjustment to increase the number of shares available under the Incentive Plan by 24,978 shares. On March 24, 2025, the Company registered for resale on Form S-8 the additional shares as a result of the equitable adjustment. As of September 30, 2025, the total number of shares available for grant under the Incentive Plan was 7,549.

The Company's stock based compensation expense, recorded within general and administrative expense in the unaudited condensed consolidated statement of operations and comprehensive loss, related to stock options for the three months ended September 30, 2025 and 2024 was $414 and $414, respectively.

The Company's stock based compensation expense, recorded within general and administrative expense, related to stock options for the nine months ended September 30, 2025 and 2024 was $1,242 and $(5,854), respectively.

As of September 30, 2025, the Company had $690 in unamortized stock option expense, which will be recognized over a weighted average period of 0.40 years.

***Issuance of Restricted Stock Units***

The Company's activity in restricted stock units was as follows for the nine months ended September 30, 2025:

SCHEDULE OF RESTRICTED STOCK UNITS

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| | | |
|:---|:---|:---|
|  | **Number of shares** | **Weighted average<br> fair value** |
| Non-vested at December 31, 2024 | 3992 | $288.96 |
| Granted | 19564 | 15.24 |
| Forfeited |  |  |
| Vested | (721) | 1060.04 |
| Non-vested at September 30, 2025 | 22835 | $30.10 |

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For the three months ended September 30, 2025 and 2024, the Company recorded $186,567 and $369,200, respectively, in stock-based compensation expense related to restricted stock units, which is a component of both general and administrative and research and development expenses in the unaudited condensed consolidated statement of operations and comprehensive loss. For the nine months ended September 30, 2025 and 2024, the Company recorded $585,847 and $1,096,570, respectively, in stock-based compensation expense related to restricted stock units, which is a component of both general and administrative and research and development expenses in the condensed consolidated statement of operations and comprehensive loss. As of September 30, 2025, the Company had unamortized stock-based compensation costs related to restricted stock units of $604,895 which will be recognized over a weighted average period of 2.87 years. As of September 30, 2025, 836 restricted stock units are vested without shares of Common Stock being issued, with all of these shares due as of September 30, 2025.

The following table summarizes the Company's recognition of stock-based compensation for restricted stock units for the following periods:

SCHEDULE OF STOCK-BASED COMPENSATION FOR RESTRICTED STOCK UNITS

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Stock-based compensation expense for RSUs: |  |  |  |  |
| General and administrative | $96716 | $162042 | $291776 | $476513 |
| Research and development | 89851 | 207158 | 294071 | 620057 |
| Total | $186567 | $369200 | $585847 | $1096570 |

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**ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

***Warrants***

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The following table summarizes information about shares issuable under warrants outstanding at September 30, 2025:

SCHEDULE OF WARRANTS OUTSTANDING

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Warrant<br> shares<br> outstanding** | **Weighted<br> average<br> exercise price** | **Weighted<br> average<br> remaining life** | **Intrinsic value** |
| Outstanding at December 31, 2024 | 4668 | $6440.40 | 2.7 | $— |
| Issued | 742238 | 13.49 |  |  |
| Exercised | (240611) | 9.32 |  |  |
| Forfeited | (408) | 6730.20 |  |  |
| Outstanding at September 30, 2025 | 505887 | 68.73 | 3.2 |  |
| Exercisable at September 30, 2025 | 87588 | $344.10 | 2.8 | $— |

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**NOTE 8. LICENSING AGREEMENTS**

On July 10, 2024, Akos entered into an Exclusive License Agreement (the "License Agreement") with Aries Science and Technology, LLC, an Ohio limited liability company ("Aries"), pursuant to which Akos granted Aries a license of Akos's patented radiation dermatitis topical product. The license allows Akos to use the patented formulation to develop pharmaceutical or non-pharmaceutical products for treating radiation dermatitis suitable for administration to humans or animals. The license is exclusive (subject to certain exceptions contained in the License Agreement), worldwide, royalty-bearing, and includes the right to sublicense. Akos is entitled to potential license payments, milestone payments and royalties based on net revenues of the Licensed Product on a licensed product-by-licensed product and country-by-country basis pursuant to the terms of the Agreement. Aries has the option during the license term, to purchase the rights to each licensed product (on a licensed product-by-licensed product basis) in the form of an exclusive (as to the applicable licensed product), fully paid, transferable right and license to the licensed product.

The Company has not earned any revenue related to this License Agreement as of September 30, 2025.

On November 7, 2024, the Company entered into an Out-Licensing Agreement (the "Agreement") with MycoMedica Life Sciences, PBC, a Delaware public benefit corporation ("MycoMedica"), pursuant to which the Company will out-license EB-002 and its EVM201 series to MycoMedica for further development and sales of the product in treatment of neuropsychiatric disorders. MycoMedica will receive an exclusive, global license to the formulations, drugs, method of use, and medical devices developed by Enveric to utilize the compound. As part of the Agreement, the Company received a $20,000 upfront payment in the fourth quarter of 2024, and if certain conditions are met, will receive development and sales milestone payments of up to $62 million and tiered single-digit royalties based on future sales. MycoMedica has the option during the license term to buyout its milestone and royalty payment obligations at a predetermined amount depending upon the stage of product development and commercialization at the time of the buyout. Further, MycoMedica has the right to purchase the licensed patents at a nominal amount upon a change of control of the Company, although doing so does not relieve MycoMedica of any of its payment obligations.

The Company has not earned any revenue related to this Agreement as of September 30, 2025.

On February 3, 2025, Akos entered into two licensing agreements with Restoration Biologics LLC ("Restoration Biologics"), a biotechnology company focused on the treatment of joint disease. The companies have executed two licenses for Akos' cannabinoid-COX-2 conjugate compounds, for pharmaceutical and potential non-pharmaceutical applications.

The Company has not earned any revenue related to these agreements as of September 30, 2025.

**NOTE 9. COMMITMENTS AND CONTINGENCIES**

The Company is periodically involved in legal proceedings, legal actions and claims arising in the normal course of business. Management believes that the outcome of such legal proceedings, legal actions and claims will not have a significant adverse effect on the Company's financial position, results of operations or cash flows.

***Other Consulting and Vendor Agreements***

 ****

The Company has entered into a number of agreements and work orders for future consulting, clinical trial support, and testing services, with terms ranging between one and 12 months. These agreements, in aggregate, commit the Company to approximately $2.0 million in future cash payments.

**NOTE 10. SUBSEQUENT EVENTS**

On December 11, 2025, the Company entered into warrant exercise inducement offer letters with certain institutional investors that held certain outstanding warrants to purchase up to an aggregate of 426,390 shares of Common Stock originally issued in February 2025 and September 2025, having exercise prices of $36.00 and $10.98 per share, respectively. Pursuant to the inducement letters, the investors agreed to exercise for cash their existing warrants at a reduced exercise price of $7.05 per share and pay a purchase price of $0.125 per share in consideration for our agreement to issue in a private placement (x) new Series E Common Stock Purchase Warrants to purchase up to 426,390 shares of Common Stock and (y) new Series F Common Stock Purchase Warrants to purchase up to 426,390 shares of Common Stock. The Company also agreed to issue to H.C. Wainwright & Co. LLC, serving as placement agent, warrants to purchase up to 29,847 shares of Common Stock with a per share exercise price equal to $9.125. The Series E Common Stock Purchase Warrants, Series F Common Stock Purchase Warrants, and placement agent warrants were issued by the Company in reliance upon an exemption from the registration requirements under the Securities Act afforded by Section 4(a)(2) of the Securities Act.

On January 27, 2026, the Company entered into a securities purchase agreement with certain institutional investors, pursuant to which it agreed to issue and sell to the investors in a registered direct offering, an aggregate of 328,802 shares ("*RD Shares*") of the Company's Common Stock at a price of $4.41 per share. In a concurrent private placement, the Company also agreed to issue and sell Series G Common Stock Purchase Warrants to purchase up to 328,802 shares of Common Stock and Series H Common Stock Purchase Warrants to purchase up to 328,802 shares of Common Stock. The warrants have an exercise price of $4.16 per share and are exercisable immediately. The Company also agreed to issue H.C. Wainwright & Co., LLC, serving as placement agent, warrants to purchase up to 23,016 shares of Common Stock with a per share exercise price equal to $5.5125. The Series G Common Stock Purchase Warrants, Series H Common Stock Purchase Warrants, and placement agent warrants were issued by the Company in reliance upon an exemption from the registration requirements under the Securities Act afforded by Section 4(a)(2) of the Securities Act.