# EDGAR Filing Document

**Accession Number:** 0001262104
**File Stem:** 0001193125-26-220687
**Filing Date:** 2026-5
**Character Count:** 169652
**Document Hash:** e0ad6ab8f6368d29e6c836b75e3b8faf
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-220687.hdr.sgml**: 20260513

**ACCESSION NUMBER**: 0001193125-26-220687

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 73

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260513

**DATE AS OF CHANGE**: 20260513

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Lite Strategy, Inc.
- **CENTRAL INDEX KEY:** 0001262104
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 510407811
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41827
- **FILM NUMBER:** 26971057

**BUSINESS ADDRESS:**
- **STREET 1:** 9920 PACIFIC HEIGHTS BLVD
- **STREET 2:** SUITE 150
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92121
- **BUSINESS PHONE:** 858-369-7100

**MAIL ADDRESS:**
- **STREET 1:** 9920 PACIFIC HEIGHTS BLVD
- **STREET 2:** SUITE 150
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MEI Pharma, Inc.
- **DATE OF NAME CHANGE:** 20120629

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MARSHALL EDWARDS INC
- **DATE OF NAME CHANGE:** 20030902

?xml version='1.0' encoding='ASCII'? 10-Q

[<u>**Table of Contents**</u>](#toc_page)

ROC

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

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**FORM** 10-Q

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**(Mark One)**

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

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

**OR**

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

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| | |
|:---|:---|
| **For the transition period from** | **to** |

---

**Commission File Number:** 001-41827

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Lite Strategy, Inc.

**(Exact name of registrant as specified in its charter)**

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---

| | |
|:---|:---|
| DELAWARE | 51-0407811 |
| **(State or other jurisdiction of**<br>**incorporation or organization)** | **(I.R.S. Employer**<br>**Identification No.)** |

---

9920 Pacific Heights Blvd**.,** Suite 150**,** San Diego**,** CA 92121

**(Address of principal executive offices) (Zip Code)**

**(**858**)** 369-7100

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

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

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.00000002 par value | LITS | **The** Nasdaq **Stock Market LLC** |

---

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

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

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

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging growth company | ☐ |  |  |

---

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

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

As of May 11, 2026, the number of shares outstanding of the issuer's common stock, $0.00000002 par value, was 34,025,200.

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**Lite Strategy, Inc.**

**Table of Contents**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| &nbsp;&nbsp;&nbsp;**PART I** | [**<u>FINANCIAL INFORMATION</u>**](#part_i_financial_information) | 3 |
| &nbsp;&nbsp;&nbsp;Item 1. | [<u>Condensed Consolidated Financial Statements (Unaudited)</u>](#item_1_condensed_financial_statements_un) | 3 |
|  | [<u>Condensed Consolidated Balance Sheets as of March 31, 2026 and June 30, 2025 (Unaudited)</u>](#condensed_balance_sheets) | 3 |
|  | [<u>Condensed Consolidated Statements of Operations for the three and nine months ended March 31, 2026 and 2025 (Unaudited)</u>](#condensed_statements_of_operations) | 4 |
|  | [<u>Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended March 31, 2026 and 2025 (Unaudited)</u>](#condensed_statements_of_stockholders_eq) | 5 |
|  | [<u>Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2026 and 2025 (Unaudited)</u>](#condensed_statements_of_cash_flows) | 6 |
|  | [<u>Notes to Condensed Consolidated Financial Statements (Unaudited)</u>](#notes_to_condensed_financial_statements) | 7 |
| &nbsp;&nbsp;&nbsp;Item 2. | [<u>Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_and_analys) | 27 |
| &nbsp;&nbsp;&nbsp;Item 3. | [<u>Quantitative and Qualitative Disclosures about Market Risk</u>](#item_3_quantitative_and_qualitative_disc) | 35 |
| &nbsp;&nbsp;&nbsp;Item 4. | [<u>Controls and Procedures</u>](#item_4_controls_and_procedures) | 35 |
| &nbsp;&nbsp;&nbsp;**PART II** | [**<u>OTHER INFORMATION</u>**](#part_ii_other_information) | 36 |
| &nbsp;&nbsp;&nbsp;Item 1. | [<u>Legal Proceedings</u>](#item_1_legal_proceedings) | 36 |
| &nbsp;&nbsp;&nbsp;Item 1A. | [<u>Risk Factors</u>](#item_1a_risk_factors) | 36 |
| &nbsp;&nbsp;&nbsp;Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#item_2_unregistered_sales) | 36 |
| &nbsp;&nbsp;&nbsp;Item 3. | [<u>Defaults upon Senior Securities</u>](#item_3_defaults) | 36 |
| &nbsp;&nbsp;&nbsp;Item 4. | [<u>Mine Safety Disclosures</u>](#item_4_mine_safety) | 36 |
| &nbsp;&nbsp;&nbsp;Item 5. | [<u>Other Information</u>](#item_5_other_info) | 36 |
| &nbsp;&nbsp;&nbsp;Item 6. | [<u>Exhibits</u>](#item_6_exhibits) | 37 |
| &nbsp;&nbsp;&nbsp;[**<u>SIGNATURES</u>**](#signatures) | &nbsp;&nbsp;&nbsp;[**<u>SIGNATURES</u>**](#signatures) | 38 |

---

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**PART I FINANCIAL INFORMATION**

**Item 1. Condensed Consolidated Financial Statements**

**LITE STRATEGY, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(In thousands, except par value data)

---

| | | |
|:---|:---|:---|
|  | **March 31,** | **June 30,** |
|  | **2026** | **2025** |
|  | **(Unaudited)** |  |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $7544 | $18011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Digital assets | 2084 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1347 | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 10975 | 18285 |
| Digital assets, net of current portion | 38237 |  |
| Digital assets receivable, net | 7899 |  |
| Other long-term assets | 678 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $57789 | $18285 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $253 | $176 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 699 | 1178 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 952 | 1354 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 952 | 1354 |
| Commitments and contingencies (Note 9) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.01 par value; 100 shares authorized; none outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.00000002 par value; 226,000 shares authorized; 36,785 and<br>&nbsp;&nbsp;&nbsp;&nbsp;6,663 shares issued at March 31, 2026 and June 30, 2025, respectively, and <br>&nbsp;&nbsp;&nbsp;&nbsp;35,156 and 6,663 shares outstanding at March 31, 2026 and June 30, 2025,<br>&nbsp;&nbsp;&nbsp;&nbsp;respectively. |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 521128 | 421095 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost, 1,629 and no shares at March 31, 2026 and <br> June 30, 2025, respectively. | (1995) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (462296) | (404164) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 56837 | 16931 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $57789 | $18285 |

---

*See accompanying notes to condensed consolidated financial statements.*

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**LITE STRATEGY, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

(In thousands, except per share amounts)

&nbsp;&nbsp;&nbsp;&nbsp;(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Nine Months Ended March 31,** | **For the Nine Months Ended March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | $30 | $369 | $86 | $3840 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 2735 | 2405 | 9138 | 10737 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of digital assets | 18845 |  | 45992 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 21610 | 2774 | 55216 | 14577 |
| Loss from operations | (21610) | (2774) | (55216) | (14577) |
| Other (expense) income: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of digital assets<br>&nbsp;&nbsp;&nbsp;&nbsp;receivable, net | (2330) |  | (3863) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on derivative liabilities | 192 |  | 733 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income | 54 | 202 | 214 | 836 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposition of nonfinancial asset |  |  |  | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense, net |  | (1) |  | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expense) income, net | (2084) | 201 | (2916) | 1320 |
| Net loss | $(23694) | $(2573) | $(58132) | $(13257) |
| Net loss per share - basic and diluted | $(0.66) | $(0.39) | $(1.68) | $(1.99) |
| Weighted-average shares used in computing <br>&nbsp;&nbsp;&nbsp;&nbsp;net loss per share - basic and diluted | 35711 | 6663 | 34546 | 6663 |

---

*See accompanying notes to condensed consolidated financial statements.*

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**LITE STRATEGY, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

(In thousands)

(Unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common** | **Additional<br>Paid-In** | **Accumulated** | **Treasury Shares** | **Treasury Shares** | **Total<br>Stockholders'** |
|  | **Shares** | **Capital** | **Deficit** | **Shares** | **Amount** | **Equity** |
| **Balance at June 30, 2025** | 6663 | $421095 | $(404164) |  | $— | $16931 |
| &nbsp;&nbsp;Net loss |  |  | (3639) |  |  | (3639) |
| &nbsp;&nbsp;Proceeds from the sale of Common Stock at <br>&nbsp;&nbsp;&nbsp;&nbsp;$3.42 per share in July 2025, net of issuance <br>&nbsp;&nbsp;&nbsp;&nbsp;costs | 23217 | 60326 |  |  |  | 60326 |
| &nbsp;&nbsp;Proceeds from the issuance of Pre-Funded <br>&nbsp;&nbsp;&nbsp;&nbsp;Warrants at $3.4199 per share in July 2025, <br>&nbsp;&nbsp;&nbsp;&nbsp; net of issuance costs |  | 15649 |  |  |  | 15649 |
| &nbsp;&nbsp;Issuance of Advisory Warrants for services <br>&nbsp;&nbsp;&nbsp;&nbsp;rendered in the July 2025 PIPE |  | 16215 |  |  |  | 16215 |
| &nbsp;&nbsp;Issuance of Common Stock upon exercise of <br>&nbsp;&nbsp;&nbsp;&nbsp;Pre-Funded Warrants for cash | 2084 |  |  |  |  |  |
| &nbsp;&nbsp;Issuance of Common Stock upon cashless <br>&nbsp;&nbsp;&nbsp;&nbsp;exercise of Pre-Funded Warrants | 2808 |  |  |  |  |  |
| &nbsp;&nbsp;Issuance of Common Stock through our ATM, <br>&nbsp;&nbsp;&nbsp;&nbsp;net of issuance costs | 883 | 4628 |  |  |  | 4628 |
| &nbsp;&nbsp;Issuance of Pre-Funded Warrants to asset <br>&nbsp;&nbsp;&nbsp;&nbsp;manager in lieu of cash fees |  | 1875 |  |  |  | 1875 |
| &nbsp;&nbsp;Share-based compensation |  | 284 |  |  |  | 284 |
| **Balance at September 30, 2025** | 35655 | 520072 | (407803) |  |  | 112269 |
| &nbsp;&nbsp;Net loss |  |  | (30799) |  |  | (30799) |
| &nbsp;&nbsp;Issuance of Common Stock upon cashless <br>&nbsp;&nbsp;&nbsp;&nbsp;exercise of Pre-Funded Warrants | 1130 |  |  |  |  |  |
| &nbsp;&nbsp;Issuance of Advisory Warrants in lieu<br>&nbsp;&nbsp;&nbsp;&nbsp;of cash fees |  | 349 |  |  |  | 349 |
| &nbsp;&nbsp;Repurchase of Common Stock |  |  |  | (138) | (203) | (203) |
| &nbsp;&nbsp;Share-based compensation |  | 234 |  |  |  | 234 |
| **Balance at December 31, 2025** | 36785 | 520655 | (438602) | (138) | (203) | 81850 |
| &nbsp;&nbsp;Net loss |  |  | (23694) |  |  | (23694) |
| &nbsp;&nbsp;Issuance of Advisory Warrants in lieu<br>&nbsp;&nbsp;&nbsp;&nbsp;of cash fees |  | 203 |  |  |  | 203 |
| &nbsp;&nbsp;Repurchase of Common Stock |  |  |  | (1491) | (1792) | (1792) |
| &nbsp;&nbsp;Share-based compensation |  | 270 |  |  |  | 270 |
| **Balance at March 31, 2026** | 36785 | $521128 | $(462296) | $(1629) | $(1995) | $56837 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Common<br>Shares** | **Additional<br>Paid-In<br>Capital** | **Accumulated<br>Deficit** | **Total<br>Stockholders'<br>Equity** |
| **Balance at June 30, 2024** | 6663 | $421239 | $(388219) | $33020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  | (8007) | (8007) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation |  | (135) |  | (135) |
| **Balance at September 30, 2024** | 6663 | 421104 | (396226) | 24878 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  | (2677) | (2677) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation |  | (103) |  | (103) |
| **Balance at December 31, 2024** | 6663 | 421001 | (398903) | 22098 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  | (2573) | (2573) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation |  | 16 |  | 16 |
| **Balance at March 31, 2025** | 6663 | $421017 | $(401476) | $19541 |

---

*See accompanying notes to condensed consolidated financial statements.*

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**LITE STRATEGY, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

(In thousands)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **For the Fiscal Nine Months Ended March 31,** | **For the Fiscal Nine Months Ended March 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(58132) | $(13257) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of digital assets | 45992 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of digital assets receivable, net | 3863 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 788 | (222) |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on derivative liabilities | (733) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncash asset management and advisory expense | 1839 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncash lease expense |  | 214 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense |  | 368 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment |  | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposition of nonfinancial asset |  | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (485) | 2117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term assets | (678) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 77 | (2991) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | (488) | (4126) |
| Net cash used in operating activities | (7957) | (18383) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of digital assets | (100000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of digital assets | 1925 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from written Covered Call Options | 742 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturity of short-term investments |  | 34640 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment |  | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the disposition of a nonfinancial asset |  | 500 |
| Net cash (used in) provided by investing activities | (97333) | 35150 |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the issuance of Common Stock and Pre-Funded Warrants<br>&nbsp;&nbsp;&nbsp;&nbsp; in July 2025, net of offering costs | 92190 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of Common Stock through our ATM Program, net<br>&nbsp;&nbsp;&nbsp;&nbsp; of issuance costs | 4628 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of Common Stock | (1995) |  |
| Net cash provided by financing activities | 94823 |  |
| Net (decrease) increase in cash and cash equivalents | (10467) | 16767 |
| Cash and cash equivalents at beginning of the period | 18011 | 3705 |
| Cash and cash equivalents at end of the period | $7544 | $20472 |
| **Supplemental cash flow information:** |  |  |
| Issuance of Advisory Warrants for services rendered in the July 2025 PIPE | $16215 | $— |
| Issuance of Pre-Funded Warrants to asset manager in lieu of cash fees | $1875 | $— |
| Issuance of Advisory Warrants in lieu of cash fees | $552 | $— |
| Digital assets transferred to digital assets receivable, net | $13575 | $— |
| Digital assets returned by GSR Markets | $1813 | $— |

---

*See accompanying notes to condensed consolidated financial statements.*

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**LITE STRATEGY, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

(Unaudited)

**1. Description of Business and Basis of Presentation**

***Description of Business***

Lite Strategy, Inc. (Nasdaq: LITS) is a pharmaceutical company that has historically developed novel and differentiated cancer therapies and is currently assessing pre-clinical development programs in nononcology disease indications. We also hold Litecoin (LTC) tokens as a primary reserve asset as part of our broader institutional treasury strategy. We initially built our pipeline by acquiring promising cancer agents and creating value in programs through development, strategic partnerships, and out-licensing or commercialization, as appropriate. Our approach to drug development is to evaluate our drug candidates either as stand-alone or in combination with standard-of-care therapies to overcome known resistance mechanisms and address medical needs to provide improved patient benefit. Our drug candidate pipeline includes voruciclib, an oral cyclin-dependent kinase 9 (CDK9) inhibitor, zandelisib, an oral, once-daily, selective P3K3 inhibitor and, prior to its sale in October 2024 to Aardvark Therapeutics, Inc., ME-344, as more fully discussed in [*<u>Note 15. Disposition of a Nonfinancial Asset</u>*](#fn_dispostion_nonfin_asset), an intravenous small molecule mitochondrial inhibitor targeting the oxidative phosphorylation pathway in the mitochondria.

*Share Repurchase Program*

In connection with shifting our Litecoin Treasury Strategy (as defined below) from initial LTC accumulation to active capital market operations, on October 29, 2025, we announced that our board of directors (Board) authorized a program to repurchase shares of our common stock, par value $0.00000002 (Common Stock), up to an aggregate amount of $25.0 million (the Share Repurchase Program), excluding fees, commissions, and excise tax due under the Inflation Reduction Act of 2022. The Share Repurchase Program was effective immediately and provides for shares to be repurchased in the open market, privately negotiated transactions or otherwise. The timing of purchases and the exact number of shares to be purchased under the Share Repurchase Program will depend on market conditions, does not include specific price targets or timetables and may be suspended or terminated by us at any time. We intend to finance the purchases using proceeds from our Covered Call Options (as defined below) or from the liquidation of a portion of our LTC tokens.

As more fully described in [*<u>Note 11.</u>* <u>S</u>*<u>tockholders' Equity</u>*](#fn_stkhldrseq)*,* in December 2025, we commenced utilization of our Share Repurchase Program.

*Litecoin Treasury Strategy*

On August 5, 2025, we announced the commencement of our primary reserve asset and implementation strategy built on a digital asset infrastructure and long-term capital innovation (the Litecoin Treasury Strategy) through our acquisition of LTC tokens, reflecting the full deployment of the net proceeds of the PIPE (as defined below). LTC is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. LTC features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. We believe this strategy will allow us to diversify reserves, enhance capital efficiency, implement treasury management strategies and align with emerging financial technologies with an emphasis on privacy and payment processing.

*Private Investment in Public Equity (PIPE) and Related Agreements*

On July 22, 2025 (the Closing Date), we closed on a $100.0 million PIPE and issued an aggregate of (i) 23,216,898 shares of Common Stock, at an offering price of $3.42 per share and (ii) pre-funded warrants (the Pre-Funded Warrants), to purchase up to an aggregate of 6,022,869 shares of Common Stock, at an offering price of $3.4199 per Pre-Funded Warrant (the Offering).

Also in July 2025, we entered into various agreements with certain advisors to the PIPE, asset managers and custodians who will help us deploy our Litecoin Treasury Strategy, including but not limited to (i) a placement agency agreement, (ii) an asset management agreement, (iii) an advisory agreement, (iv) a strategic advisor agreement and (v) a new at-the-market sales agreement (the Sales Agreement). As partial or full consideration of services provided associated with the PIPE, we issued warrants for the purchase of up to 3,070,177 shares of Common Stock with a weighted-average exercise price of approximately $4.10 per share. See [*<u>Note 12. Warrants</u>*](#fn_warrants) for a summary of the fair value assumptions used to value the Advisory Warrants upon the closing of the PIPE.

*Strategic Alternatives*

On July 22, 2024, we announced that our Board unanimously determined to begin the evaluation of our strategic alternatives, including potential transactions as well as an orderly wind down of operations, if appropriate, to maximize the value of our assets for our stockholders. We commenced a reduction-in-force (the Strategic Alternatives RIF) beginning August 1, 2024, which continued in stages as our operational and strategic direction evolved. In connection with this evaluation, we discontinued the clinical development of voruciclib in oncology, while we continued to conduct certain nonclinical activities related to our drug candidate assets. As part of

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the review of strategic alternatives, we considered options such as out-licensing opportunities or sale of our existing programs and merger and acquisition opportunities, as well as other potential opportunities.

The evaluation of strategic alternatives concluded with the August 2025 implementation of the Litecoin Treasury Strategy and a commitment to long-term innovation in capital structure and financial technology, along with the initiation of an expanding strategy that could include the commencement of LTC mining or other crypto-focused operational activities. Additionally, we have commenced further investigational research and development pre-clinical activities with our drug candidate pipeline in nononcology disease indications for potential out-licensing or sale related opportunities.

***Basis of Presentation and Consolidation***

The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (U.S. GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Articles 8 and 10 of Regulation S-X. Accordingly, the condensed consolidated financial statements do not include all information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented.

The unaudited condensed consolidated financial statements include the accounts of Lite Strategy, Inc. and our wholly owned subsidiary, Meadow Merger Sub, Inc. We have eliminated all intercompany accounts and transactions in consolidation.

The unaudited condensed consolidated financial statements for the quarterly period ended March 31, 2026, should be read in conjunction with the audited financial statements and notes thereto as of and for the fiscal year ended June 30, 2025, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on September 26, 2025 (2025 Annual Report). Interim results are not necessarily indicative of results for a full year.

We have evaluated subsequent events through the date the condensed consolidated financial statements were issued.

**2. Summary of Significant Accounting Policies**

Except as disclosed below for [*<u>Digital Assets,</u>*](#fn_da_policy)[*<u>Digital Assets Receivable, Net</u>*](#dat_rec_net)*,* [*<u>Derivatives - Covered Call Options</u>*](#derivatives_cco)and [*<u>Warrants</u>*](#fn_warr_policy), there have been no material changes to our significant accounting policies from those described in the notes to our audited consolidated financial statements contained in the 2025 Annual Report.

***Risks and Uncertainties***

*Use of Estimates*

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to the valuation of derivatives liabilities associated with our Covered Call Options (as defined below), valuation of share-based awards including warrants issued for services, clinical trial accruals, potential loss contingencies, deferred income taxes and related valuation allowances, and the assessment of our ability to fund our operations for at least the next 12 months from the date of issuance of these condensed consolidated financial statements. We base our estimates on historical experience and other market-specific or other relevant assumptions that we believe to be reasonable under the circumstances. Estimates are assessed each reporting period and updated to reflect current information. As future events and their effects cannot be determined with precision, actual results may materially differ from those estimates or assumptions.

*Market, Custody and Operational Risks of Digital Assets*

We are subject to various risks including market risk, liquidity risk, and other risks related to our concentration in a single asset, LTC. Investing in LTC is highly speculative and volatile.

Because the fair value of our digital assets is calculated by reference to the principal market price in accordance with U.S. GAAP, fluctuations in the price of LTC could materially and adversely affect an investment in us. LTC prices have been volatile and subject to influence by many factors, including LTC's levels of liquidity, which have historically been limited. If digital asset markets continue to experience significant price fluctuations, we may experience losses. During LTC's limited history, it has been subject to various factors affecting the price of LTC, including, but not limited to, global LTC supply and demand, compliance and internal control failures leading to the theft of LTC from global trading platforms or vaults, limited liquidity and trading volumes compared to sovereign currencies market and competition from other forms of digital currency or payment services, and global or regional political, economic or financial conditions.

There is a risk that some or all our LTC could be lost or stolen. There can be no assurance that the custodian will maintain adequate insurance or that such coverage will cover losses with respect to our LTC. Further, transactions in LTC are irrevocable. Stolen or incorrectly transferred LTC may be irretrievable. Further, any LTC we hold with our custodians and transact with our trade

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execution partners does not enjoy the same protections as are available to cash or securities deposited with or transacted by institutions subject to regulation by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. As a result, any incorrectly executed LTC transactions could adversely affect an investment in us.

We rely on third-party service providers to perform certain functions essential to our operations. Any disruptions to our service providers' business operations resulting from business failures, financial instability, security failures, government mandated regulation or operational problems could have an adverse impact on our ability to access critical services and be disruptive to our operations.

LTC is subject to a developing regulatory landscape. On March 17, 2026, the SEC issued an interpretation addressing how the federal securities laws apply to certain types of crypto assets and transactions involving crypto assets (the Digital Asset Interpretation). While not a binding regulation, the Digital Asset Interpretation represents a shift in the SEC's regulatory posture toward the crypto asset industry, moving from reliance primarily on enforcement actions to affirmative guidance establishing a classification framework and clarifying when crypto-related activities do or do not implicate the federal securities laws.

In the Digital Asset Interpretation, the SEC classified crypto assets into five categories based on their characteristics, uses, and functions. "Digital commodities," "digital collectibles" including "meme coins," and "digital tools" are not themselves securities according to the SEC. A "digital commodity" is a crypto asset intrinsically linked to, and deriving its value from, the programmatic operation of a "functional" crypto system and supply and demand dynamics, rather than from the expectation of profits based on the essential managerial efforts of others. A digital commodity is not a security. The Digital Asset Interpretation identifies a number of specific crypto assets as digital commodities, including LTC.

The Commodity Futures Trading Commission (the CFTC) joined the Digital Asset Interpretation to provide guidance that the CFTC and its staff will administer the Commodities Exchange Act of 1936, as amended (the <u>CEA</u>) consistent with the SEC's interpretation. Accordingly, by following the Digital Asset Interpretation, the CFTC will continue to regulate LTC as a digital commodity. Under the CEA, the CFTC has broad enforcement authority to police market manipulation and fraud in spot digital asset markets in which we may transact. Beyond instances of fraud or manipulation, the CFTC generally does not oversee cash or spot market exchanges or transactions involving digital asset commodities that do not utilize margin, leverage or financing. In addition, CFTC regulations and CFTC oversight and enforcement authority apply with respect to futures, swaps, other derivative products and certain retail leveraged commodity transactions involving digital asset commodities, including the markets on which these products trade and the Digital Asset Interpretation does not include in its taxonomy digital derivatives or digital swaps or address regulation regarding these products.

Under the Digital Asset Interpretation, even if a crypto asset is deemed to be a non-security crypto asset (such as a "digital commodity"), the interpretation takes the view that the non-security crypto asset may still be subject to an investment contract, even in the secondary market, and thus secondary market transactions, even in such non-security crypto assets, might be subject to the federal securities laws. While the Digital Asset Interpretation conveys the SEC's views on how the definition of "security" applies to crypto assets, it does not have the binding force of a regulation adopted through notice-and-comment rulemaking. Accordingly, courts are not bound by it and may reach different conclusions, and the SEC could revise or withdraw it in the future.

If LTC is determined to be a "security" under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for LTC. For example, it may become more difficult for LTC to be traded, cleared and custodied as compared to other digital assets that are not considered to be securities, which could, in turn, negatively affect the liquidity and general acceptance of LTC and cause users to migrate to other digital assets. As such, any determination that LTC is a security under federal or state securities laws may adversely affect the value of LTC and, as a result, an investment in us.

In addition, if LTC is in fact a security, we could be considered an unregistered "investment company" under the Investment Company Act of 1940, which could necessitate our liquidation or delisting from the exchange on which our stock is traded. In such case, we may be deemed to have participated in an illegal offering of investment company securities and there is no guarantee that we will be able to register under the Investment Company Act of 1940 at such time, or take such other actions as may be necessary to ensure our activities comply with applicable law, which could force us to liquidate our LTC holdings.

***Cash and Cash Equivalents***

We consider all highly liquid investments with a maturity date of three months or less, when purchased, to be cash equivalents. We maintain cash and cash equivalent balances at financial institutions insured by the Federal Deposit Insurance Corporation (FDIC). At times, deposits held may exceed the amount of insurance provided by the FDIC. We have not experienced any losses in our cash and cash equivalents and management believes we are not exposed to significant credit risk with respect to such accounts. Our cash

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equivalents are classified as Level 1 inputs within the fair value hierarchy. See [*<u>Note 5. Fair Value Measurements</u>*](#fn_fvmeasure) for further information on the fair value hierarchy*.*

***Digital Assets***

In accordance with our Litecoin Treasury Strategy, we intend to hold our LTC for long-term investment purposes. We seek to generate returns on our LTC holdings, as LTC appreciates and actively pursue risk-adjusted return opportunities to generate cash flows that support our operating expenses. As a result, our LTC digital assets are included in long-term assets in the condensed consolidated balances sheets, due to our intent to retain and hold our LTC. Pursuant to Accounting Standards Codification (ASC) Topic 350-60 *Intangibles* - *Goodwill and Other - Crypto Assets* (ASC 350-60) in-scope crypto assets are required to be measured at fair value in the statement of financial position, with gains and losses from changes in the fair value of such crypto assets recognized in net loss each reporting period. Proceeds from the sale of digital assets are included within investing activities in the condensed consolidated statements of cash flows.

ASC 350-60 does not address the initial measurement, recognition, and derecognition of crypto assets. As such, our digital assets were initially recorded at cost plus fees in accordance with ASC 350-30 *Intangibles - Goodwill and Other - General Intangibles Other Than Goodwill*. Our digital assets are recorded at fair value at each reporting period with changes in fair value of digital assets included as a component of operating activities in the condensed consolidated statements of operations, as our LTC tokens could, if needed, be sold for use in our operations. Digital assets intended for use in operations and/or for the repurchase of our Common Stock are classified as current assets in the condensed consolidated balance sheets.

Our first purchase of LTC was on July 30, 2025. In accordance with ASC 350-60, our required adoption date was July 1, 2025 (beginning of the fiscal year that includes the interim period of adoption). LTC tokens are measured using Level 1 inputs under ASC 820 *Fair Value Measurement* (ASC 820), based on quoted prices from a principal market, Coinbase, as Coinbase has the highest trading volume of LTC tokens (LTC Tokens), the native cryptocurrency of LTC, and is the market in which we transact in LTC Tokens. We track the cost basis of our digital assets based upon a first-in-first-out methodology. See [*<u>Note 4. Digital Assets</u>*](#fn_digital_assets) for further information. Except for digital assets pledged as collateral for our Covered Call Options (as defined below), our digital asset holdings are not subject to any contractual sale restrictions. Digital assets pledged as collateral are reported as digital assets receivable, net, and classified as long-term assets on the condensed consolidated balance sheets, consistent with our intent to primarily retain LTC under our Litecoin Treasury Strategy.

***Digital Assets Receivable, Net***

We enter into contracts with GSR Markets Ltd (GSR Markets), an affiliate of GSR Strategies LLC (GSR or Asset Manager), in which we write covered call options on certain of our LTC holdings (Covered Call Options). In connection with these arrangements, we transfer LTC as collateral to GSR Markets, on a title-transfer basis. Upon transfer, we no longer have control of the specific LTC transferred; however, we retain a contractual right to receive the same quantity of LTC if the Covered Call Options expire unexercised.

As a result of the title transfer, the amount of LTC collateralized is reclassified from digital assets to digital assets receivable, net, in the condensed consolidated balance sheets. In addition, we recognize the difference between the fair value at the date of transfer and the initial purchase price of the LTC as a realized gain or loss within change in fair value of digital assets, a component of operating expenses in the condensed consolidated statements of operations. The digital assets receivable, net, is remeasured at fair value at each reporting date in accordance with ASC 350-60.

When Covered Call Options expire unexercised, GSR Markets may either return the LTC to us or retain the LTC to support future Covered Call Option contracts. If the LTC is retained by GSR Markets after expiration, the balance continues to be reported as digital assets receivable, net, and remeasured at fair value. If the LTC is returned to us, the receivable is derecognized by reclassifying the fair value of the LTC to digital assets in the condensed consolidated balance sheets.

When Covered Call Options are exercised, the associated digital assets receivable, net, is derecognized as the underlying LTC is retained by GSR Markets and removed from our collateral balance held by GSR Markets. Gains or losses related to the exercise of Covered Call Options are recorded within gain on derivative liabilities within other expense (income), net, in the condensed consolidated statements of operations.

We evaluate our digital assets receivable for expected credit losses in accordance with ASC 326, *Financial Instruments - Credit Losses*. Our assessment considers, among other factors, the short-term nature of the Covered Call Options contractual term, the creditworthiness and risk management practices of GSR, the amount of LTC collateralized, and historical loss experience. As of

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March 31, 2026, we concluded expected credit losses were immaterial and, therefore, recorded no allowance for credit losses related to our digital assets receivable, net.

***Fair Value of Financial Instruments***

Our financial instruments consist primarily of cash and cash equivalents, prepaid expenses and other current assets, digital assets, including Covered Call Options, digital assets receivable, net, accounts payable, accrued liabilities and Advisory Warrants (as defined below). The carrying amounts of cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued liabilities are considered to be representative of their respective fair values because of the relatively short-term nature of those instruments. For information regarding the fair value of our digital assets and our Covered Call Options, see [*<u>Note 5. Fair Value Measurements</u>*](#fn_fvmeasure) and [*<u>Note 8. Derivatives</u>*](#fn_derivatives), respectively.

***Derivatives – Covered Call Options***

From time to time, to generate cash flows on a portion of our LTC, we sell Covered Call Options. These options do not qualify as accounting hedges under ASC 815 (as defined below); however, we consider them to be economic hedges. We classify our Covered Call Options as derivative liabilities, which are recorded within the accrued liabilities line item in the condensed consolidated balance sheets, and accordingly recorded at fair value at inception and subsequently remeasured at fair value at each reporting date. Changes in fair value of our Covered Call Options and/or realized gains or losses on Covered Call Options which expire unexercised are recognized upon settlement (expiration) of the related Covered Call Option contract within gain on derivative liabilities, a component of other (expense) income, net, in the condensed consolidated statements of operations.

The notional amount of Covered Call Options represents the quantity of digital assets underlying the option contracts multiplied by the spot entry price when the contract is written. Notional amounts are not recorded on the balance sheet and do not represent our maximum exposure to loss, which is limited to the opportunity cost of foregone appreciation in the underlying digital assets above the strike price. Premiums received from the sale of Covered Call Options are recorded as cash inflows within investing activities in the condensed consolidated statements of cash flows. See [*<u>Note 8. Derivatives</u>*](#fn_derivatives) for additional information related to our Covered Call Options.

***Master Loan Agreement***

As discussed in [*<u>Note 7. Master Loan Agreement</u>*](#fn_mla), we entered into a master loan agreement (the MLA) with BitGo Prime (the Lender). The MLA provides a framework under which we may borrow digital assets or cash from the Lender, from time-to-time. Each loan is documented in a separate loan request agreed to by the parties setting forth the specific terms, including principal amount, fees, collateral requirements and the date on which the loan is to commence and mature (each a Loan). Each Loan may have a fixed term, or may include a call option or prepayment option, as specified in each loan request. In general, either party may terminate a Loan by providing notice within the time frame set forth in the respective Loan. Upon termination, the borrowed digital assets or cash must be returned, and the related collateral released.

***Warrants***

We account for the Pre-Funded Warrants issued in the PIPE as equity-classified instruments based on an assessment of the Pre-Funded Warrant's specific terms and applicable authoritative guidance in ASC 480, *Distinguishing Liabilities from Equity* (ASC 480) and ASC 815, *Derivatives and Hedging* (ASC 815). The assessment considers whether the Pre-Funded Warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and meet all the requirements for equity classification under ASC 815, including but not limited to, whether the Pre-Funded Warrants are indexed to our own Common Stock and whether the Pre-Funded Warrant holders could potentially require "net cash settlement" in a circumstance outside our control. This assessment, which requires the use of professional judgment, is conducted at the time of the Pre-Funded Warrant's issuance and as of each subsequent quarterly period end date while the Pre-Funded Warrants are outstanding.

For other warrants that meet all criteria for equity classification, such warrants are required to be recorded as additional paid-in capital in the condensed consolidated balance sheets at the time of issuance.

We issued the following warrants for services rendered in connection with the PIPE: (i) the Asset Manager GSR 1 Warrant (AMA GSR 1 Warrant), (ii) Asset Manager GSR 2 Warrant (AMA GSR 2 Warrant), (iii) Asset Manager GSR 3 Warrant (AMA GSR 3 Warrant), (iv) Asset Manager GSR 4 Warrant (AMA GSR 4 Warrant), (v) Placement Agent (PA) Warrant and (vi) Strategic Advisor (SA) Warrant (collectively the Advisory Warrants), and we issued the Asset Manager's Pre-Funded Warrant (AMA Pre-Funded Warrant) after the Closing Date. The Advisory Warrants are accounted for in accordance with ASC 718, *Stock Compensation* (ASC 718), which requires us to recognize the fair value of the Advisory Warrants at either (i) the fair value of the equity instruments issued or (ii) the liabilities settled. The fair value of the Advisory Warrants was determined based upon the Common Stock underlying the Advisory Warrants using the Black-Scholes-Merton (BSM) option pricing model (BSM Model) based on the applicable assumptions, which include the exercise price of the warrants, our stock price and historical volatility, the expected warrant term, the risk-free

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interest rate, the expected dividends, and if applicable, the vesting behavior. See [*<u>Note 12. Warrants</u>*](#fn_warrants) for a summary of the fair value assumptions used to value the Advisory Warrants upon the closing of the PIPE and a summary of the Warrants outstanding as of March 31, 2026.

The fair value of the AMA Pre-Funded Warrant along with the GSR Pre-Funded Warrants issued in September 2025 as payment of the annual Asset-based Fee under the GSR Asset Management Agreement and the GD Advisory Warrants issued in October 2025 in settlement of the Annual Advisory Fee with Green Dragon Investment LLC (Green Dragon) were determined by the settlement amount of the Asset-based Fee and the Annual Advisory Fee, respectively. The GSR Pre-Funded Warrants, the GD Advisory Warrants and their agreements under which they were issued are further discussed in [*<u>Note 12. Warrants</u>*](#fn_warrants), and defined in [*<u>Note 14. Related Party Transactions</u>*](#fn_rpt).

***Share-based Compensation***

For fully vested, nonforfeitable equity instruments granted at the date we and a nonemployee enter into an agreement for goods or services, we recognize the equity instruments when they are granted. The corresponding cost is recognized as an immediate expense or a prepaid asset depending on the specific facts and circumstances of the agreement with the nonemployee. For the nine months ended March 31, 2026, 546,348 Pre-Funded Warrants were issued as fully vested, nonforfeitable equity instruments to a nonemployee. The agreement with the nonemployee does not include any provisions to claw back the share-based payments in the event of nonperformance by the nonemployee. Before July 21, 2026, GSR is expected to provide asset management services related to our LTC holdings under the GSR Asset Management Agreement (as defined in [*<u>Note 14. Related Party Transactions</u>*](#fn_rpt)) entered into by us and GSR. As of March 31, 2026, we recorded $0.6 million in current unamortized deferred prepaid assets associated with the GSR Pre-Funded Warrants.

***Net Loss Per Share***

Basic net loss per share is computed using the weighted-average number of shares of common stock outstanding during the period, without consideration for common stock equivalents. Issued and outstanding warrants to purchase shares of our Common Stock are included in the calculation of basic net loss per common share if the exercise price of the warrants represents *de minimis* consideration and is nonsubstantive in relation to the price paid for the warrant and if the warrants are immediately exercisable with no further vesting conditions or contingencies associated with them. The 546,348 shares of our Common Stock underlying Pre-Funded Warrants, as described in [*<u>Note 12. Warrants</u>*](#fn_warrants), and 117,074 shares of our Common Stock underlying the vested portion of our GD Advisory Warrants are included in the calculation of our weighted-average shares used in computing net loss per share, basic and diluted due to their nominal exercise price.

We consider our Pre-Funded Warrants, including the GSR Pre-Funded Warrants and our Advisory Warrants, including the GD Advisory Warrant (collectively, the Warrants) to be participating securities, because the holders of such instruments participate when a dividend is paid on common stock. The holders of the Warrants do not have a contractual obligation to share in our losses. Because such losses are attributable entirely to common stockholders, for periods in which we have reported a net loss, diluted loss per common share is the same as basic loss per common share. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of common stock and common stock equivalents outstanding for the period determined using the treasury-stock method.

For each of the periods presented, basic and diluted net loss per share were the same.

The following table presents potentially dilutive shares that have been excluded from the calculation of net loss per share because of their anti-dilutive effect (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** | **For the Nine Months Ended March 31,** | **For the Nine Months Ended March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Stock options | 1731 | 870 | 1731 | 870 |
| Warrants: |  |  |  |  |
| &nbsp;&nbsp;Advisory Warrants | 3070 |  | 3070 |  |
| &nbsp;&nbsp;GD Advisory Warrant | 117 |  | 117 |  |
| &nbsp;&nbsp;Other warrant | 103 | 103 | 103 | 103 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total anti-dilutive shares | 5021 | 973 | 5021 | 973 |

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***Recent Accounting Pronouncement***

*Recently Adopted*

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-08, *Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets* (ASC 350-60). The amendments in ASC 350-60 are intended to improve the accounting for certain crypto assets by requiring an entity to measure those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity's crypto asset holdings by requiring disclosure about significant holdings, contractual sale restrictions, and changes during the reporting period. The amendments were effective for us beginning July 1, 2025. ASC 350-60 requires a cumulative-effect adjustment to the opening balance of retained earnings (or other appropriate components of equity or net assets) as of the beginning of the annual reporting period in which an entity adopts the amendments. As we did not hold cryptocurrency prior to July 30, 2025, the adoption of ASC 350-60 did not impact our financial position, results of operations or cash flows. See [*<u>Digital Assets</u>*](#fn_da_policy) discussion within [*<u>Note 2. Summary of Significant Accounting Policies</u>*](#fn2_sumsignacct)*,* [*<u>Note 4.</u> <u>Digital Assets</u>*](#fn_digital_assets) and [*<u>Note 5. Fair Value Measurements</u>*](#fn_fvmeasure)for related disclosures related to our LTC holdings.

In December 2025, the FASB issued ASU No. 2025-11, *Interim Reporting (Topic 270)*. The amendments in this update apply to all entities that provide interim financial statements and notes in accordance with GAAP. The amendments in this update include guidance about what is meant by the phrase *interim financial statements and notes in accordance with GAAP,* including referencing SEC requirement for entities to which those requirements apply. As permitted under ASU 2025-11, we early adopted this update effective October 1, 2025, on a retrospective basis. Adoption of ASU 2025-11 did not have a financial impact on our condensed consolidated financial position, results of operations or cash flows in all periods presented. Due to the adoption of ASU 2025-11, we removed our lease footnote disclosure as there were no significant changes from the prior year, and no other footnote disclosures were removed and or added upon adoption of ASU 2025-11.

*Recently Issued*

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted as of the specified effective date. We believe the impact of recently issued standards and any issued but not yet effective standards will not have a material impact on our condensed consolidated financial statements upon adoption.

In December 2023, the FASB issued ASU No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures,* which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires a public business entity (PBE) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025, and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all periods presented. We expect this ASU to only impact our disclosures with no impact to our results of operations, cash flows, and financial condition.

In November 2024, the FASB issued ASU No. 2024-03*, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40)*. The amendments in this update require disclosure, in the notes to the financial statements, of specific expense categories present within expense captions presented on the face of the statements of operations (income statement) within continuing operations of PBEs. The amendments in this update are effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any and all prior periods presented in the financial statements. We are currently evaluating this ASU to determine its impact on our disclosures.

In January 2025, the FASB issued ASU No. 2025-01, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date*. The amendment in this update clarifies the effective date of ASU 2024-03, which is that public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and in interim periods within annual reporting periods beginning after December 15, 2027. The impact of adoption of this ASU on our disclosures is currently being evaluated.

In July 2025, the One Big Beautiful Bill Act (OBBBA) was enacted. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act of 2017, including 100% bonus depreciation, domestic research cost expensing and the business interest expense limitation, among other tax changes. Many of the tax provisions of the OBBBA are designed to accelerate tax deductions, which could lead to lower cash tax payments. The new legislation has multiple effective dates, with certain provisions effective in 2025 and others in the future. While we continue to assess the impact of the tax provisions of the OBBBA on our condensed consolidated financial

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statements, we currently believe that the tax provisions of the legislation are not expected to have a material impact on our statement of operations.

In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements (ASU 2025-12). The amendments in this update represent changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. The amendments make the Codification easier to understand and apply. An entity should apply the amendments in this update (except for the amendments to Topic 206, Earnings Per Share, related to Issue 4) either prospectively to all transactions recognized on or after the date that the entity first applies the amendments or retrospectively to the beginning of the earliest comparative period presented. Entities may elect the transition method on an issue-by-issue basis. The amendments in this update clarify the effective date of ASU 2024-03, which is that public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026 and in interim periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods. The impact of adoption of this ASU on our disclosures is currently being evaluated.

**3. Balance Sheet Details**

*Prepaid Expenses and Other Current Assets*

Prepaid expenses and other current assets consisted of the following, in thousands:

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| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **June 30, 2025** |
| &nbsp;&nbsp;Asset management fee | $588 | $— |
| &nbsp;&nbsp;Insurance | 606 | 176 |
| &nbsp;&nbsp;Software license | 39 | 39 |
| &nbsp;&nbsp;Other | 114 | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total prepaid and other current assets | $1347 | $274 |

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*Accrued Liabilities*

Accrued liabilities consisted of the following, in thousands:

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| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **June 30, 2025** |
| Accrued compensation and benefits<sup>(1)</sup> | $530 | $873 |
| Accrued legal and professional services | 92 | 144 |
| Accrued pre-clinical and clinical trial expenses | 4 | 134 |
| Derivative liabilities - Covered Call Options | 9 |  |
| Other | 64 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accrued liabilities | $699 | $1178 |

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________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes employee termination benefits of approximately $0.7 million as of June 30, 2025, as more fully described in [*<u>Note 6. Employee Termination Benefits</u>*](#fn_onetimetermbene).

**4. Digital Assets**

As of June 30, 2025, we did not hold digital assets. The following table summarizes our digital asset holdings as of March 31, 2026 (in thousands, except quantity):

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| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
|  | **Quantity** | **Cost Basis** | **Fair Value** |
| &nbsp;&nbsp;Digital assets | 38660 | $4139 | $2084 |
| &nbsp;&nbsp;Digital assets, net of current portion | 709138 | 75695 | 38237 |
| &nbsp;&nbsp;Digital assets receivable, net <sup>(1)</sup> | 146500 | 11622 | 7899 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total digital assets | 894298 | $91456 | $48220 |

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________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Digital assets receivable, net, include LTC pledged as collateral and those unencumbered but residing with GSR.

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**5. Fair Value Measurements**

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value is as follows:

Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activities and that are significant to the fair value of the assets or liabilities.

Assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurements. We review the fair value hierarchy classification at each reporting period. As of March 31, 2026 and June 30, 2025, we had no financial assets or liabilities measured at fair value on a nonrecurring basis. As of June 30, 2025, we had no financial liabilities measured at fair value on a recurring basis.

As of June 30, 2025, our financial assets measured at fair value, on a recurring basis, consisted of our cash equivalents of $17.8 million. The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** | **As of March 31, 2026** |
|  | **Total** | **Level 1** | **Level 2** | **Level 3** |
| **Assets:** |  |  |  |  |
| &nbsp;&nbsp;Cash equivalents | $6616 | $6616 | $— | $— |
| &nbsp;&nbsp;Digital assets | 2084 | 2084 |  |  |
| &nbsp;&nbsp;Digital assets, net of current portion | 38237 | 38237 |  |  |
| &nbsp;&nbsp;Digital assets receivable, net | 7899 | 7899 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets measured on a recurring basis | $54836 | $54836 | $— | $— |
| Liabilities: |  |  |  |  |
| &nbsp;&nbsp;Derivative liabilities - Covered Call Options | $9 |  | $9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities measured on a recurring<br>&nbsp;&nbsp;&nbsp;&nbsp;basis | $9 | $— | $9 | $— |

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The following table presents the changes in the carrying amount of our digital assets (in thousands):

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| | |
|:---|:---|
| **Balance as of June 30, 2025** | $— |
| Purchases of digital assets | 100000 |
| Change in fair value of digital assets - unrealized loss | (631) |
| **Balance as of September 30, 2025** | 99369 |
| Change in fair value of digital assets: |  |
| &nbsp;&nbsp;Realized loss upon transfer of digital assets as collateral | (1964) |
| &nbsp;&nbsp;Unrealized loss on digital assets | (24552) |
| Digital assets transferred as collateral | (10696) |
| Digital assets returned by GSR Markets | 1813 |
| **Balance as of December 31, 2025** | 63970 |
| Change in fair value of digital assets: |  |
| &nbsp;&nbsp;Realized loss on sale of digital assets | (1889) |
| &nbsp;&nbsp;Realized loss upon transfer of digital assets as collateral | (2626) |
| &nbsp;&nbsp;Unrealized loss on digital assets | (14330) |
| Digital assets transferred as collateral | (2879) |
| Disposition of digital assets | (1925) |
| **Balance as of March 31, 2026** | $40321 |

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**6. Employee Termination Benefits**

In connection with our joint decision to discontinue development of zandelisib outside of Japan in December 2022, we announced a realignment of our clinical development efforts that streamlined our organization towards the continued clinical development of our two earlier clinical-stage assets, voruciclib and ME-344. As a result, our Board approved a staggered workforce reduction, which was completed during fiscal year 2024.

In August 2024, in connection with our announcement to evaluate strategic alternatives as described in [*<u>Note 1. Description of Business and Basis of Presentation</u>*](#fn_desbusandbasisofpres), we commenced the Strategic Alternatives RIF. All activities related to the Strategic Alternatives RIF were completed as of September 30, 2025. Total charges incurred for the Strategic Alternatives RIF totaled $5.9 million which included charges for retention, contractual pro rata fiscal year 2025 bonuses, severance and COBRA costs related to the termination of our employees due to our related wind down activities.

During the three months ended March 31, 2026, no employee termination benefits were recognized. During the nine months ended March 31, 2026, we recorded employee termination benefits of $0.1 million within general and administrative expense. During the three months ended March 31, 2025, we recorded employee termination benefits of $0.2 million within research and development expense and $0.8 million within general and administrative expense. During the nine months ended March 31, 2025, we recorded employee termination benefits of $1.8 million within research and development expense and $3.6 million within general and administrative expense. All one-time termination benefits were associated with our development of pharmaceutical products segment.

The following table summarizes our activity related to employee benefits included in accrued liabilities (in thousands):

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| | |
|:---|:---|
|  | **One-time Employee Termination Benefits** |
| **Balance at June 30, 2024** | $21 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in accrued restructuring | 5734 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash payments | (5027) |
| **Balance at June 30, 2025** | 728 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in accrued restructuring | 122 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash payments | (850) |
| **Balance at March 31, 2026** | $— |

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**7. Master Loan Agreement**

On September 3, 2025 (the MLA Date), we entered into the MLA with the Lender. The MLA provides a framework under which we may borrow any digital assets or cash from the Lender, from time-to-time. We must request a loan from the Lender with the Loan Request. Once approved by the Lender, a loan will be documented in a loan agreement (each, a Loan Agreement).

Each Loan may have a fixed term, or may include a call option or prepayment option, as specified in each Loan Request. In general, either party may terminate a Loan Agreement by providing notice within the time frame set forth in the Loan Agreement. Upon termination, the borrowed digital assets or cash must be returned and the related collateral released.

Borrowings under a Loan Agreement are secured by collateral in favor of the Lender. Collateral may include cash or other forms agreed upon by the Parties (as defined in the applicable Loan Agreement). The collateral's required value is typically higher than the borrowed amount, subject to margin calls as set form in the applicable Loan Agreement. If the value of the posted collateral

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falls below the margin call threshold, we must promptly post additional collateral. Failure to maintain sufficient collateral can result in an event of default and remedies available to the Lender, including the right to liquidate pledged collateral.

The MLA contains representations and warranties and affirmative and negative covenants customary for financings of this type, as well as customary events of default.

We evaluated the MLA and determined as of the MLA Date, the MLA does not represent a loan commitment in accordance with U.S. GAAP. As of March 31, 2026, we had not requested any Loans nor did we have any Loan Agreements outstanding under the MLA.

**8. Derivatives**

As of June 30, 2025, we did not hold any Covered Call Options. The following table presents our condensed consolidated balance sheets classification of derivatives carried at fair value (in thousands):

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| | | | |
|:---|:---|:---|:---|
|  |  | **March 31, 2026** | **March 31, 2026** |
| **Derivative** | **Balance Sheet Line** | **Asset** | **Liability** |
| Derivatives not designated as hedging instruments: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Covered Call Options | &nbsp;&nbsp;Accrued liabilities | $— | $9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives |  | $— | $9 |

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During the three and nine months ended March 31, 2025, we did not hold any Covered Call Options. The following table presents our condensed statements of operations classification of derivatives carried at fair value for the periods presented (in thousands):

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| | | | |
|:---|:---|:---|:---|
| **Derivative** | **Statements of Operations Line** | **For the Three Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** |
| Derivatives not designated as <br>&nbsp;&nbsp;&nbsp;&nbsp;hedging instruments: |  |  |  |
| &nbsp;&nbsp;Covered Call Options | &nbsp;&nbsp;Gain on derivative liabilities | $192 | $733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total derivatives |  | $192 | $733 |

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*Covered Call Options*

We carry our Covered Call Options at fair value with any realized gains or losses and/or changes in fair value recognized within gains on derivative liabilities, a component of other (expense) income, net, in our condensed consolidated statements of operations.

In estimating the fair value of our Covered Call Options, we use the Black-76 Model (the Black-76 Model), a derivation of the BSM Model, which includes several inputs and assumptions, including the forward price of the underlying asset (LTC), the underlying asset's implied volatility, the risk-free interest rate, and the expected term of the Covered Call Options. The expected term of the Covered Call Options is the contractual term given the Covered Call Options can only be exercised on their expiration date (i.e., European-style options). We determined that the Covered Call Options are Level 2 liabilities given all inputs are observable.

During the three and nine months ended March 31, 2026, we issued Covered Call Options of $17.9 million and $39.9 million, respectively, notional for proceeds of $0.2 million and $0.7 million, respectively, to generate cash flows on a portion of our digital assets, which is expected to be utilized in our Share Repurchase Program. We transferred to GSR Markets LTC as collateral in a quantity equal to the underlying notional for the Covered Call Options sold. The Covered Call Options are only exercisable upon the date of expiration, are automatically exercised if the underlying reference price was greater than the strike price of the Covered Call Option, and settled with delivery of the underlying LTC. The reference price for the Covered Call Options is/was GSR's internal pricing index, aggregating prices from multiple exchanges, quoted in USD at 6:00pm UTC time for a given date.

During the three and nine months ended March 31, 2026, Covered Call Options on $19.9 million and $35.9 million notional, respectively, expired with the underlying reference price below their strike price and we recorded realized gains of $0.2 million and $0.7 million, respectively. As of March 31, 2026, we had two Covered Call Options outstanding on $4.0 million notional.

**9**. Commitments and Contingencies

We have contracted with various consultants and third parties to assist us in pre-clinical research and development and clinical trials work for our leading drug compounds. The contracts are terminable at any time but obligate us to reimburse the providers for

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any time or costs incurred through the date of termination. We also have an employment agreement with our chief executive officer and chief financial officer that provides for severance payments and accelerated vesting for share-based awards if his employment is terminated under specified circumstances.

*Litigation*

From time to time, we may be involved in various lawsuits, legal proceedings, or claims that arise in the ordinary course of business. Management believes there are no claims or actions pending against us as of March 31, 2026, which will have, individually or in the aggregate, a material adverse effect on its business, liquidity, financial position, or results of operations. Litigation, however, is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

*Indemnification*

In accordance with our amended and restated certificate of incorporation and sixth amended and restated bylaws, we have indemnification obligations to our officers and directors for certain events or occurrences, subject to certain limits, while they are serving in such capacity. There have been no claims to date, and we have a directors and officers liability insurance policy that may enable it to recover a portion of any amounts paid for future claims.

*Presage License Agreement*

As discussed in [*<u>Note 10. License Agreements</u>*](#fn_othlicagree)*,* we are party to a license agreement with Presage Biosciences, Inc. (Presage) under which we may be required to make future payments upon the achievement of certain development, regulatory and commercial milestones, as well as potential future royalties based upon net sales. As of March 31, 2026, we had no accruals for potential future payments as achievement of the milestones had not been met.

**10. License Agreements**

*Presage Biosciences License Agreement*

In September 2017, we, as licensee, entered into a license agreement with Presage. Under the terms of the license agreement, Presage granted us exclusive worldwide rights to develop, manufacture and commercialize voruciclib, a clinical-stage, oral and selective CDK inhibitor, and related compounds. In exchange, we paid $2.9 million to Presage. With respect to the first indication, an incremental $2.0 million payment, due upon dosing of the first subject in the first registration trial, will be owed to Presage, for total payments of $4.9 million prior to receipt of marketing approval of the first indication in the U.S., EU or Japan. Additional potential payments of up to $179.0 million will be due upon the achievement of certain development, regulatory and commercial milestones. We will also pay mid-single digit tiered royalties on the net sales of any product successfully developed. As an alternative to milestone and royalty payments related to countries in which we sublicense product rights, we will pay to Presage a tiered percentage (which decreases as product development progresses) of amounts received from such sublicensees. During the three and nine months ended March 31, 2026 and 2025, we made no payments under the Presage license agreement.

**11. Stockholders' Equity**

**Description of Capital Stock**

Our total authorized share capital is 226,100,000 shares consisting of 226,000,000 shares of Common Stock, and 100,000 shares of preferred stock, $0.01 par value per share.

*Common Stock*

The holders of common stock are entitled to one vote per share. In the event of a liquidation, dissolution or winding up of our affairs, holders of the common stock will be entitled to share ratably in all our assets that are remaining after payment of our liabilities and the liquidation preference of any outstanding shares of preferred stock. All outstanding shares of common stock are fully paid and nonassessable. The rights, preferences and privileges of holders of common stock are subject to any series of preferred stock that we have issued or that we may issue in the future. The holders of common stock have no preemptive rights and are not subject to future calls or assessments by us.

In conjunction with the PIPE, we issued 23,216,898 shares of Common Stock at $3.42 per share, for net cash proceeds of $92.2 million.

*Preferred Stock*

Our Board has the authority to issue up to 100,000 shares of preferred stock with a par value of $0.01 per share in one or more series and to fix the rights, preferences, privileges and restrictions in respect of that preferred stock, including dividend rights, dividend rates, conversion rights, voting rights, terms of redemption (including sinking fund provisions), redemption prices and

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liquidation preferences, and the number of shares constituting such series and the designation of any such series, without future vote or action by the stockholders. Therefore, the Board, without the approval of the stockholders, could authorize the issuance of preferred stock with voting, conversion and other rights that could affect the voting power, dividend and other rights of the holders of shares or that could have the effect of delaying, deferring or preventing a change of control. There were no shares of preferred stock outstanding as of March 31, 2026 and June 30, 2025.

**Equity Transactions**

*Share Repurchase Program*

In December 2025, we commenced utilization of our Share Repurchase Program announced in October 2025 by repurchasing shares of our Common Stock from the open market (the Treasury Shares). Treasury Shares repurchased through the Share Repurchase Program are considered held in treasury and returned to the status of authorized but unissued shares of Common Stock. Accordingly, the cost of our Treasury Shares, including excise taxes as applicable, were recorded as a treasury stock transaction with our condensed consolidated balance sheets and statements of stockholder's equity. The Share Repurchase Program does not have an expiration date, does not include specific price targets or timetables and may be suspended or terminated by us at any time.

The following table summarizes activity under our Share Repurchase Program (cost in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** |
|  | **Shares** | **Weighted-average Exercise Price Per Share** | **Cost** | **Shares** | **Weighted-average Exercise Price Per Share** | **Cost** |
| Treasury shares repurchased | 1491595 | $1.20 | $1792 | 1629136 | $1.22 | $1995 |

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*Shelf Registration Statement*

On February 20, 2024 we filed a shelf registration statement on Form S-3 which was declared effective by the SEC on February 28, 2024 (February 2024 Shelf Registration Statement) that permits us to sell, from time to time, up to $100.0 million of common stock, preferred stock, warrants, rights and units.

*At-The-Market Equity Offering*

On February 20, 2024, we entered into a capital on demand sales agreement (On Demand Sales Agreement) with JonesTrading Institution Services LLC, pursuant to which we could offer and sell shares having an aggregate offering price of up to $25.0 million. We did not offer or sell any shares of Common Stock under the On Demand Sales Agreement. Effective July 21, 2025, we terminated the On Demand Sales Agreement.

On July 22, 2025, we entered a Sales Agreement with Titan Partners Group LLC, a division of American Capital Partners LLC (in such capacity, the Agent), pursuant to which we may sell, from time to time, at our option, up to $100.0 million in aggregate principal amount of an indeterminate amount of shares (the ATM Shares) of Common Stock, through the Agent (ATM Program). We will pay the Agent a commission of 3.5% of the gross sales price of the ATM Shares sold pursuant to the Sales Agreement.

Any ATM Shares to be offered and sold under the Sales Agreement will be issued and sold (i) by methods deemed to be an at-the-market offering as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, if authorized by us and (ii) pursuant to the February 2024 Shelf Registration Statement as supplemented by a prospectus supplement, filed with the SEC on July 23, 2025.

As of March 31, 2026, 882,924 shares of our Common Stock have been issued and sold under our ATM Program for aggregate net proceeds of $4.6 million.

*Cooperation Agreement and Cash Dividend*

The cooperation agreement, with Anson Funds Management LP and Cable Car Capital LLC (the Cooperation Agreement) among other nonfinancial items, provided for a capital return to stockholders in the form of a dividend in the amount of $1.75 per share of Common Stock that was declared on November 6, 2023, to stockholders of record at the close of business on November 17, 2023. The total dividend of $11.7 million was paid on December 6, 2023, and was recorded as a reduction of additional paid-in capital in the condensed consolidated statements of stockholders' equity, as we have an accumulated deficit, rather than retained earnings. Effective July 22, 2025, in conjunction with the closing of the Offering, the parties to the Cooperation Agreement mutually agreed to terminate the Cooperation Agreement.

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*Rights Agreement* 

On October 1, 2023, our Board approved and adopted a rights agreement (Rights Agreement) by and between us and Computershare, Inc., as Rights Agent (as defined in the Rights Agreement). Pursuant to the Rights Agreement, the Board declared a dividend of one preferred share purchase right (each, a Right) for each outstanding share of our Common Stock. The Rights were distributable to stockholders of record as of the close of business on October 12, 2023. The Rights and the Rights Agreement expired at the close of business on September 30, 2024. No rights were redeemed or exchanged under the Rights Agreement.

**12. Warrants**

As of March 31, 2026, we have the following warrants outstanding:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Warrants Outstanding** | **Exercise Price** | **Initial Exercise Date** | **Expiration Date** |
| Pre-Funded Warrants |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issued for services | 546348 | $0.0001 | September 24, 2025 | Until Exercised in Full |
| Advisory Warrants |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset Manager Warrants |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSR 1 | 584795 | $3.42 | July 22, 2025 | July 22, 2030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSR 2 | 292398 | $3.93 | July 22, 2025 | July 22, 2030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSR 3 | 292398 | $4.62 | July 22, 2025 | July 22, 2030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GSR 4 | 292398 | $5.13 | July 22, 2025 | July 22, 2030 |
| &nbsp;&nbsp;&nbsp;&nbsp;Strategic Advisor Warrants | 438597 | $4.10 | July 22, 2025 | July 22, 2030 |
| &nbsp;&nbsp;&nbsp;&nbsp;Placement Agent Warrants | 1169591 | $4.10 | July 22, 2025 | July 22, 2030 |
| GD Advisory Warrants in lieu of cash <br>&nbsp;&nbsp;&nbsp;&nbsp;payment | 234149 | $0.0001 | October 8, 2025 | October 8, 2030 |
| Other warrant | 102513 | $6.80 | October 25, 2022 | October 25, 2027 |
| &nbsp;&nbsp;Total warrants outstanding | 3953187 |  |  |  |

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*Pre-Funded Warrants*

As discussed in [*<u>Note 1. Description of Business and Basis of Presentation</u>*](#fn_desbusandbasisofpres), we issued Pre-Funded Warrants to purchase up to an aggregate of 6,022,869 shares of Common Stock. Each Pre-Funded Warrant was immediately exercisable for one share of Common Stock at an exercise price of $0.0001 per Pre-Funded Warrant Share and could be exercised at any time until all the Pre-Funded Warrants issued in the Offering are exercised in full. Each holder of the Pre-Funded Warrant's ability to exercise its Pre-Funded Warrants in exchange for shares of Common Stock was subject to certain beneficial ownership limitations set forth therein. On July 24, 2025, Pre-Funded Warrants for the purchase of 2,084,509 shares of Common Stock were exercised for a *de minimis* amount of cash proceeds. During the three months ended September 30, 2025, we issued 2,807,967 shares of Common Stock upon cashless exercises of 2,808,070 Pre-Funded Warrants. In October 2025, Pre-Funded Warrants issued in the PIPE for the purchase of 1,130,290 shares of Common Stock were cashless exercised in exchange for 1,130,242 shares of Common Stock at which time no Pre-Funded Warrants issued in the PIPE remained outstanding.

On September 24, 2025, as payment of the annual Asset-based Fee under the GSR Asset Management Agreement, we issued GSR fully vested, nonforfeitable pre-funded warrants (the GSR Pre-Funded Warrants, as more fully discussed in [*<u>Note 14. Related Party Transactions</u>*](#fn_rpt)) for the purchase of up to 546,348 shares of our Common Stock with an exercise price of $0.0001 per share. During the first year of the GSR Asset Management Agreement, it is noncancelable, by us, other than for Cause (as defined therein). The annual Asset-based Fee of $1.9 million will be amortized to expense through the one-year anniversary of the GSR Asset Management Agreement. Amounts in excess of fees recognized through March 31, 2026, are recorded in prepaid expenses and other current assets in the condensed consolidated balance sheets. We concluded the fair value of services received by GSR represented the fair value of the warrants issued in settlement of the Asset-based Fee and recorded such fair value as additional paid-in capital in the condensed consolidated balance sheets. During the three and nine months ended March 31, 2026, we recognized $0.5 million and $1.3 million, respectively, of the Asset-based Fee within general and administrative expenses within our digital asset treasury strategy segment (see [*<u>Note 13. Segment Information</u>*](#fn_segments) for information related to our segments).

*Advisory Warrants*

On July 22, 2025, in conjunction with the closing of the PIPE, we issued the Advisory Warrants (as discussed in [*<u>Note 2. Summary of Significant Accounting Policies</u>*](#fn2_sumsignacct)) for the purchase of 3,070,177 shares of our Common Stock to our advisors in the

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transaction (the Advisory Warrants). The Advisory Warrants are immediately exercisable, expire five years from the issuance date and have exercise prices between $3.42 and $5.13 per share. Upon issuance, we recognized the fair value of the Advisory Warrants of $16.2 million within additional paid-in capital that is included in the condensed consolidated statements of stockholders' equity for the nine months ended March 31, 2026. The weighted-average grant date fair value of the Advisory Warrants was $5.28 per share as determined using the following weighted-average grant date assumptions:

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| | |
|:---|:---|
| Risk-free interest rate | 3.9% |
| Expected life (years) | 5.0 |
| Volatility | 85.3% |
| Dividend yield | —% |

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*GD Advisory Warrants Issued in Lieu of Cash Fees*

In October 2025, in settlement of the Annual Advisory Fee (as defined in [*<u>Note 14. Related Party Transactions</u>*](#fn_rpt)) for the annual period ending July 21, 2026, we issued a GD Advisory Warrants (as defined in [*<u>Note 14. Related Party Transactions</u>*](#fn_rpt)) for the purchase of up to 234,149 shares of Common Stock with an exercise price of $0.0001 per share. The Annual Advisory Fee of $0.8 million will be recorded to expense through the one-year anniversary of the GD Advisory Agreement (as defined in [*<u>Note 14. Related Party Transactions</u>*](#fn_rpt)), over the requisite service period. We concluded the fair value of services received or to be received by Green Dragon represented the fair value of the warrants issued in settlement of the Annual Advisory Fee. During the three and nine months ended March 31, 2026, we recognized $0.2 million and $0.6 million, respectively, of the Annual Advisory Fee in general and administrative expenses within our digital asset treasury strategy segment (see [*<u>Note 13. Segment Information</u>*](#fn_segments) for information related to our segments).

 *Other Warrant*

As of March 31, 2026, we have a warrant to purchase 102,513 shares of our common stock issued to Torreya Partners LLC. The warrant is fully vested, exercisable at a price of $6.80 per share and expires in October 2027. The warrant wasn't exercised as of March 31, 2026.

**13. Segment Information**

Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (CODM), which is our Chief Executive Officer and Chief Financial Officer, in deciding how to allocate resources and assess performance. During fiscal year 2025, when allocating financial and personnel resources, due to pursuing our strategic alternatives initiative, the CODM evaluated our financial information, including year over year profit and loss comparisons and cash projections, on an aggregate basis. During fiscal year 2026, our CODM evaluates financial information including budget versus actual comparisons when assessing performance for allocating financial and personnel resources. Prior to the commencement of writing the Covered Call Options in the second quarter of fiscal year 2026, the CODM considered our cash and cash equivalents and other corporate expenses to be primarily available for use in our development of pharmaceutical products segment. However, since the proceeds from the issuance of our Covered Call Options are being utilized to repurchase our Common Stock, the CODM reevaluated its position during the second quarter of fiscal year 2026 and concluded cash and cash equivalents and corporate expenses were no longer segment expenses and therefore would represent corporate expenses and be a reconciling item between total segment costs and our consolidated results. We are not organized by market.

Prior to the initiation of our Litecoin Treasury Strategy in August 2025, we operated as a single operating segment, the development of pharmaceutical products. Subsequently, we now operate under two operating segments (development of pharmaceutical products and digital asset treasury strategy), which we identify based upon the underlying business activities supporting these two segments. During the three and nine months ended March 31, 2026 and for fiscal year 2025, we did not generate any revenue. Consistent with the CODM's reevaluation in the section quarter of 2026, he concluded our administrative functions including finance, business development and information systems, no longer were primarily supportive of our development of pharmaceutical products segment, and would be primarily included in corporate expenses. We operate in one geographic area, the United States. The CODM allocates resources (inclusive of both capital and personnel) based upon our net loss, which is utilized to monitor year over year variances on a quarterly basis.

The accounting policies of both our segments are the same as those described in [*<u>Note 2. Summary of Significant Accounting Policies</u>*](#fn2_sumsignacct). All our assets are in the United States. We do not have intra-entity sales or transfers.

During the three and nine months ended March 31, 2026 and 2025, we had no transactions denominated in foreign currencies nor any intangible property for which we recognized amortization expense. During the three and nine months ended March 31, 2026, and the three months ended March 31, 2025, we did not recognize depreciation expense. During the nine months ended March 31, 2025, we recognized depreciation expense that we have included in "other segment expenses" within the table below. Depreciation

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expense is reported in our statements of cash flows and is expected to be zero during fiscal year 2026. Noncash expenses such as depreciating assets and share-based compensation are not part of the CODM's evaluation or decision-making process.

The following tables summarize our financial data for our segments (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** | **For the Three Months Ended March 31, 2026** |
|  | **Digital Asset Treasury Strategy** | **Development of Pharmaceutical Products** | **Total Segment Costs** | **Corporate Expenses** | **Consolidated** |
| Operating and other (income) expense |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee expenses | $212 | $11 | $223 | $325 | $548 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other segment expenses<sup>(1)</sup> | 19 | 7 | 26 | 812 | 838 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 122 |  | 122 | 287 | 409 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal fees |  | 181 | 181 | 102 | 283 |
| &nbsp;&nbsp;&nbsp;&nbsp;voruciclib |  | 12 | 12 |  | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset management fee and advisory fees | 675 |  | 675 |  | 675 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of digital assets | 18845 |  | 18845 |  | 18845 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of digital assets <br>&nbsp;&nbsp;&nbsp;&nbsp;receivable, net | 2330 |  | 2330 |  | 2330 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on derivative liabilities | (192) |  | (192) |  | (192) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income<sup>(2)</sup> |  |  |  | (54) | (54) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating and other (income)<br>&nbsp;&nbsp;&nbsp;&nbsp; expense | 22011 | 211 | 22222 | 1472 | 23694 |
| Total segment costs loss and net loss | $(22011) | $(211) | $(22222) | $(1472) | $(23694) |

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___________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes product development costs associated with zandelisib determined to be immaterial for both periods presented, share-based compensation costs, administrative costs, travel and business taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Interest and dividend income are solely attributable to our cash and cash equivalents.

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| | | | |
|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31, 2025** | **For the Three Months Ended March 31, 2025** | **For the Three Months Ended March 31, 2025** |
|  | **Development of Pharmaceutical Products <br>and Total Segment Costs** | **Corporate Expenses** | **Consolidated** |
| Operating and other (income) expense |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee expenses | $236 | $1349 | $1585 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other segment expenses<sup>(1)</sup> | 125 | 423 | 548 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 4 | 303 | 307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal fees | 105 | 226 | 331 |
| &nbsp;&nbsp;&nbsp;&nbsp;voruciclib | 4 |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income<sup>(2)</sup> |  | (202) | (202) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating and other (income)<br>&nbsp;&nbsp;&nbsp;&nbsp; expense | 474 | 2099 | 2573 |
| Total segment costs loss and net loss | $(474) | $(2099) | $(2573) |

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___________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes product development costs associated with zandelisib determined to be immaterial for both periods presented, share-based compensation costs, depreciation expense, administrative costs, travel and business taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Interest and dividend income are solely attributable to our cash and cash equivalents.

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Nine Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** |
|  | **Digital Asset Treasury Strategy** | **Development of Pharmaceutical Products** | **Total Segment Costs** | **Corporate Expenses** | **Consolidated** |
| Operating and other (income) expense |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee expenses | $588 | $34 | $622 | $1004 | $1626 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other segment expenses<sup>(1)</sup> | 52 | 12 | 64 | 2461 | 2525 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 563 | 2 | 565 | 1343 | 1908 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal fees | 112 | 547 | 659 | 630 | 1289 |
| &nbsp;&nbsp;&nbsp;&nbsp;voruciclib |  | 38 | 38 |  | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset management fee and advisory fees | 1838 |  | 1838 |  | 1838 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of digital assets | 45992 |  | 45992 |  | 45992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of digital assets <br>&nbsp;&nbsp;&nbsp;&nbsp;receivable, net | 3863 |  | 3863 |  | 3863 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on derivative liabilities | (733) |  | (733) |  | (733) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income<sup>(2)</sup> |  |  |  | (214) | (214) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating and other (income)<br>&nbsp;&nbsp;&nbsp;&nbsp; expense | 52275 | 633 | 52908 | 5224 | 58132 |
| Total segment costs loss and net loss | $(52275) | $(633) | $(52908) | $(5224) | $(58132) |

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________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes product development costs associated with zandelisib determined to be immaterial for both periods presented, share-based compensation costs, administrative costs, travel and business taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Interest and dividend income are solely attributable to our cash and cash equivalents.

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| | | | |
|:---|:---|:---|:---|
|  | **For the Nine Months Ended March 31, 2025** | **For the Nine Months Ended March 31, 2025** | **For the Nine Months Ended March 31, 2025** |
|  | **Development of Pharmaceutical Products <br>and Total Segment Costs** | **Corporate Expenses** | **Consolidated** |
| Operating and other (income) expense |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee expenses | $2602 | $5982 | $8584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other segment expenses<sup>(1)</sup> | 158 | 2061 | 2219 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 25 | 1193 | 1218 |
| &nbsp;&nbsp;&nbsp;&nbsp;Legal fees | 514 | 1003 | 1517 |
| &nbsp;&nbsp;&nbsp;&nbsp;voruciclib | 802 |  | 802 |
| &nbsp;&nbsp;&nbsp;&nbsp;ME-344 | 253 |  | 253 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on disposition of nonfinancial asset |  | (500) | (500) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income<sup>(2)</sup> |  | (836) | (836) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating and other (income)<br>&nbsp;&nbsp;&nbsp;&nbsp; expense | 4354 | 8903 | 13257 |
| Total segment costs loss and net loss | $(4354) | $(8903) | $(13257) |

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________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes product development costs associated with zandelisib determined to be immaterial for both periods presented, occupancy costs (including rent and utilities), share-based compensation costs, depreciation expense, administrative costs, travel and business taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Interest and dividend income are solely attributable to our cash and cash equivalents.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Digital Asset Treasury Strategy** | **Development of Pharmaceutical Products** | **Total Segment Assets** | **Corporate Assets** | **Consolidated** |
| Current assets: |  |  |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalent | $— | $— | $— | $7544 | $7544 |
| &nbsp;&nbsp;Digital assets | 2084 |  | 2084 |  | 2084 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | 606 | 31 | 637 | 710 | 1347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 2690 | 31 | 2721 | 8254 | 10975 |
| &nbsp;&nbsp;Digital assets, net of current portion | 38237 |  | 38237 |  | 38237 |
| &nbsp;&nbsp;Digital assets receivable, net | 7899 |  | 7899 |  | 7899 |
| &nbsp;&nbsp;Other long-term assets |  |  |  | 678 | 678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $48826 | $31 | $48857 | $8932 | $57789 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
|  | **Development of Pharmaceutical Products<br>and Total Segment Assets** | **Corporate Assets** | **Consolidated** |
| Current assets: |  |  |  |
| &nbsp;&nbsp;Cash and cash equivalent | $— | $18011 | $18011 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | 25 | 249 | 274 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 25 | 18260 | 18285 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $25 | $18260 | $18285 |

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**14. Related Party Transactions**

In the ordinary course of business, we have related party transactions with affiliates of our Board. During the year ended June 30, 2025, we had no such transactions.

The following table presents balances related to transactions with such affiliates of our Board as of March 31, 2026 (in thousands):

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| | |
|:---|:---|
| **Balances:** |  |
| Prepaid expenses and other current assets | $588 |
| Digital assets receivable, net | 7899 |
| Accrued liabilities (Derivative liabilities<br>&nbsp;&nbsp;&nbsp;&nbsp; - Covered Call Options) | 9 |

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The following table summarizes our activities with such affiliates of our Board during the three and nine months ended March 31, 2026 (in thousands):

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| | | |
|:---|:---|:---|
|  | **For the Three Months Ended March 31, 2026** | **For the Nine Months Ended March 31, 2026** |
| General and administrative expense recognized | $675 | $1838 |
| Change in fair value of digital assets<br>&nbsp;&nbsp;&nbsp;&nbsp;receivable, net | 2330 | 3863 |
| Gain on derivative liabilities | 192 | 733 |

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*GSR Asset Management Agreement and Side Letter*

On July 22, 2025, in connection with the PIPE, we and GSR entered into an asset management (the GSR Asset Management Agreement). GSR provides discretionary investment management services with respect to, among other assets, the proceeds from our PIPE (the Account Assets) in accordance with the terms of the GSR Asset Management Agreement. The custodians under the GSR Asset Management Agreement will consist of Coinbase and other cryptocurrency wallet providers agreed to by us and the Asset Manager.

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We pay GSR an asset-based fee (the Asset-based Fee) equal to 1.75% per annum of the Account Assets under management that is paid in shares of Common Stock until GSR owns 4.99% of our issued and outstanding Common Stock. Thereafter, the Asset-based Fee is to be paid in Pre-Funded Warrants (the GSR Pre-Funded Warrants) to purchase shares of Common Stock (the GSR Pre-Funded Warrant Shares). The number of shares of Common Stock or GSR Pre-Funded Warrants will be issued equal to the dollar amount of the Asset-based Fee being paid, divided by the average volume-weighted average price (VWAP) of the Common Stock for the 30 trading days ending with the trading day prior to the date that is the applicable 12-month anniversary of the Closing Date (the Fee Reference Date).

As compensation for services rendered by GSR in connection with the PIPE, we issued warrants (the GSR Warrants) to GSR on the Closing Date to purchase 1,461,989 shares of Common Stock (the GSR Warrant Shares) at various exercise prices per share of Common Stock as follows: (i) 584,795 shares of Common Stock at an exercise price of $3.42 per share; (ii) 292,398 shares of Common Stock at an exercise price of $3.93 per share; (iii) 292,398 shares of Common Stock at an exercise price of $4.62 per share; and (iv) 292,398 shares of Common Stock at an exercise price of $5.13 per share. The GSR Warrants are exercisable, in whole or in part, at any time for a period of five years from the date of issuance.

The GSR Asset Management Agreement will, unless terminated earlier in accordance with its terms, remain in effect until the tenth anniversary of the date of the GSR Asset Management Agreement. Beginning on the first anniversary of the AMA Effective Date (as defined below), the GSR Asset Management Agreement may be terminated upon at least 90 days prior written notice to the other party (i) by us upon a determination of the Board to end the Lite Treasury Strategy, or (ii) by GSR for any reason. Additionally, the GSR Asset Management Agreement may be terminated for cause (i) by us upon at least 30 days prior written notice to GSR or (ii) by GSR upon at least 60 days prior written notice to us.

As more fully described within the [*<u>Pre-Funded Warrants</u>*](#warrant_fn_pfw_discussion) discussion in [*<u>Note 12. Warrants</u>*](#fn_warrants), on September 24, 2025, as payment of the annual Asset-based Fee under the GSR Asset Management Agreement, we issued GSR, the GSR Pre-Funded Warrants which are fully vested and nonforfeitable for the purchase of up to 546,348 shares of our Common Stock with an exercise price of $0.0001 per share. Subject to the limitations on exercise set forth in the warrant agreement, the GSR Pre-Funded Warrants may be exercised at any time until they are exercised in full.

*Advisory Agreement*

On July 22, 2025 (the AMA Effective Date), we also entered into an advisory agreement with Green Dragon (the GD Advisory Agreement). Mr. Charlie Lee, who was appointed as a member of our Board and serves in the class of directors who will be up for reelection at our annual meeting of stockholders for fiscal 2027, is a beneficiary of Green Dragon. Pursuant to the Advisory Agreement, Green Dragon provides us with asset management services and we pay Green Dragon a fee in warrants to purchase a number of shares of Common Stock calculated based on the amount of assets under management (the Annual Advisory Fee).

The Annual Advisory Fee is equal to 0.75% per annum of the Account Assets for such year, as calculated in accordance with the GD Advisory Agreement and is issuable in warrants (the GD Advisory Warrants). The number of GD Advisory Warrants to be issued for any given year shall be equal to the dollar amount of the Annual Advisory Fee for such year, divided by the average VWAP of the Common Stock for the 30 trading days ending with the trading day prior to the Fee Reference Date. The exercise price per share of the GD Advisory Warrants shall be set at a price equal to $0.0001. The GD Advisory Warrants issued each year shall vest in four equal installments on the Fee Reference Date on which they are issued and then the succeeding three-month anniversaries thereof. Any portion of the GD Advisory Warrants unvested on the date, if any, that the GD Advisory Agreement terminates shall be deemed surrendered and shall terminate automatically on such date with no further force or effect. The vested portion of the GD Advisory Warrants shall be exercisable, in whole or in part, at any time for a period of five years from the date of issuance.

The GD Advisory Agreement will, unless terminated earlier in accordance with its terms, remain in effect until the tenth anniversary of the GD Advisory Agreement. Either party may terminate the GD Advisory Agreement, with or without reason, by written notice to the other.

As more fully described in the [*<u>GD Advisory Warrants Issued in Lieu of Cash Fees</u>*](#warr_fn_gd_advisory_warr_in_lieu_of_cash)discussion in [*<u>Note 12. Warrants</u>*](#fn_warrants), in October 2025, we issued the GD Advisory Warrant for the purchase of up to 234,149 shares of Common Stock in settlement of the Annual Advisory Fee for the annual period ending July 21, 2026.

Under the terms of the GD Advisory Agreement, Mr. Lee has waived any compensation for his Board service, in lieu of his compensation under the GD Advisory Agreement.

**15. Disposition of a Nonfinancial Asset** 

On October 22, 2024 (the Closing Date), we entered into an Asset Purchase Agreement (the Asset Purchase Agreement) with Aardvark Therapeutics, Inc. (the Purchaser) whereby we sold to the Purchaser our rights, title and interest in and to certain assets related to ME-344, including relevant intellectual property rights, technology and contracts (the ME-344 Sale). Pursuant to the Asset Purchase Agreement, the Purchaser paid us an initial payment of $0.5 million in cash plus a reimbursement amount of $55,000 at the

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closing of the transaction. The Purchaser may also make future milestone payments up to $62.0 million after the Closing Date, payable upon the achievement of certain regulatory and revenue milestones. The Purchaser also assumed certain of our liabilities after the Closing Date, including liabilities arising under the contracts transferred under the Asset Purchase Agreement.

The ME-344 sale did not trigger a discontinued operation as the intellectual property sold did not represent a component of our business. Additionally, we concluded the ME-344 Sale met all the criteria to be derecognized on the Closing Date. Variable consideration, such as future potential regulatory and revenue milestones, have been fully constrained. As such, as of the Closing Date and December 31, 2024, we determined the transaction price to be the initial payment of $0.5 million. Accordingly, we recognized a gain, upon satisfaction of our obligations under the Asset Purchase Agreement, of $0.5 million as a separate component of other income (expense), net in the consolidated statements of operations. The $55,000 reimbursement by the Purchaser represented work performed at the Purchaser's request prior to the Closing Date, which they agreed to reimburse. The reimbursement did not represent a liability assumed or relieved by the Purchaser and was, therefore, not included in the calculation of the gain on the disposition of the ME-344 asset. The $55,000 reimbursement was recognized as contra research and development expense in accordance with our reimbursement policy for pass through services.

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

This Quarterly Report on Form 10-Q (Quarterly Report) includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act) and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). All statements other than statements of historical facts contained in this Quarterly Report, including statements regarding the future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words "may," "will," "intend," "plan," "believe," "anticipate," "expect," "estimate," "predict," "potential," "continue," "likely," or "opportunity," the negative of these words or similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, without limitation, those described in Risk Factors in our 2025 Annual Report on Form 10-K (2025 Annual Report), as filed with the Securities and Exchange Commission (SEC) on September 26, 2025.

Unless the context requires otherwise, references in this Quarterly Report to "Lite Strategy," "LITS," "we," "us" and "our" refer to Lite Strategy, Inc.

**Overview**

Lite Strategy, Inc. (Nasdaq: LITS) is a pharmaceutical company that has historically developed novel and differentiated cancer therapies and is currently assessing pre-clinical development programs in nononcology disease indications. We also hold Litecoin (LTC) tokens as a primary reserve asset as part of our broader institutional treasury initiative. We initially built our pipeline by acquiring promising cancer agents and creating value in programs through clinical development, strategic partnerships, and out-licensing or commercialization, as appropriate. Our approach to drug development is to evaluate our drug candidates either as stand-alone or in combination with standard-of-care therapies to overcome known resistance mechanisms and address medical needs to provide improved patient benefit. Our drug candidate pipeline includes voruciclib, an oral cyclin-dependent kinase 9 (CDK9) inhibitor, zandelisib, an oral, once-daily, selective P3K3 inhibitor and, prior to its sale in October 2024 to Aardvark Therapeutics, Inc., ME-344, an intravenous small molecule mitochondrial inhibitor targeting the oxidative phosphorylation pathway in the mitochondria.

*Share Repurchase Program*

In connection with shifting our Litecoin Treasury Strategy (as defined below) from initial LTC accumulation to active capital market operations, on October 29, 2025, we announced that our Board of Directors (Board) authorized a program to repurchase shares of our common stock, par value $0.00000002 per share (the Common Stock), up to an aggregate amount of $25.0 million, excluding fees, commissions and excise tax due under the Inflation Reduction Act of 2022 (the Share Repurchase Program). The Share Repurchase Program was effective immediately and provides for shares to be repurchased in the open market, privately negotiated transactions or otherwise. The timing of purchases and the exact number of shares to be purchased under the Share Repurchase Program will depend on market conditions, does not include specific price targets or timetables and may be suspended or terminated by us at any time. We intend to finance the purchases using proceeds from our Covered Call Options (as defined below) or from the liquidation of a portion of our LTC tokens.

In December 2025, we commenced utilization of our Share Repurchase Program and have repurchased an aggregate of 1,629,136 shares of our Common Stock from the open market (Treasury Shares) at a weighted-average price of $1.22 per share as of March 31, 2026. Treasury Shares repurchased through the Share Repurchase Program are considered held in treasury and returned to the status of authorized but unissued shares of Common Stock. The Share Repurchase Program does not have an expiration date, does not include specific price targets or timetables and may be suspended or terminated by us at any time.

*Litecoin Treasury Strategy*

On August 5, 2025, we announced the commencement of our primary reserve asset and implementation strategy built on a digital asset infrastructure and long-term capital innovation (the Litecoin Treasury Strategy) through our acquisition of LTC tokens, reflecting the full deployment of the net proceeds of the PIPE (as defined below). LTC is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. LTC features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. We believe this strategy will allow us to diversify reserves, enhance capital efficiency and align with emerging financial technologies.

We enter into contracts with GSR Markets Ltd (GSR Markets), an affiliate of GSR Strategies LLC (GSR or Asset Manager), in which we write covered call options on certain of our LTC holdings (Covered Call Options). We utilize these Covered Call Options on certain digital asset holdings as part of broader digital asset treasury management strategy. These strategies are designed to generate incremental liquidity and income while retaining exposure to the underlying digital assets, subject to the risk that the assets may be delivered to option counterparties if exercised.

We are exposed to market risk related to changes in the fair value of derivative liabilities associated with our Covered Call Options, as well as counterparty credit risk related to our digital assets receivable, net. We monitor these risks on an ongoing basis and

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evaluate expected credit losses each reporting period. As of March 31, 2026, we concluded expected credit losses were immaterial due to the short duration of the receivables, the over-collateralized nature of the arrangements, and the credit profile and risk management practices of the transfer agent.

Changes in fair value of our Covered Call Options and/or realized gains on Covered Call Options which expire unexercised are recognized upon settlement (expiration) of the related Covered Call Option contract within gain on derivative liabilities, a component of other (expense) income, net, in the condensed consolidated statements of operations.

*Private Investment in Public Equity (PIPE) and Related Agreements*

On July 22, 2025 (the Closing Date), we closed on a $100.0 million PIPE and issued an aggregate of (i) 23,216,898 shares of our Common Stock, at an offering price of $3.42 per share and (ii) pre-funded warrants (the Pre-Funded Warrants), to purchase up to an aggregate of 6,022,869 shares of Common Stock, at an offering price of $3.4199 per Pre-Funded Warrant (the Offering).

Also in July 2025, we entered into various agreements with certain advisors to the PIPE, asset managers and custodians who will help us deploy our Litecoin Treasury Strategy, including but not limited to (i) a placement agency agreement, (ii) an asset management agreement, (iii) an advisory agreement, (iv) a strategic advisor agreement and (v) a new at-the-market sales agreement (the Sales Agreement). As partial or full consideration of services provided associated with the PIPE, we issued warrants for the purchase of up to 3,070,177 shares of Common Stock with a weighted-average exercise price of approximately $4.10 per share. See [*<u>Note 12. Warrants</u>*](#fn_warrants) for a summary of the fair value assumptions used to value the Advisory Warrants upon the closing of the PIPE.

*Strategic Alternatives* 

On July 22, 2024, we announced that our Board unanimously determined to begin the evaluation of our strategic alternatives, including potential transactions as well as an orderly wind down of operations, if appropriate, to maximize the value of our assets for our stockholders. We commenced a reduction-in-force (the Strategic Alternatives RIF) beginning August 1, 2024, which continued in stages as our operational and strategic direction evolved. In connection with this evaluation, we discontinued the clinical development of voruciclib in oncology, while we continued to conduct certain nonclinical activities related to our drug candidate assets. As part of the review of strategic alternatives, we considered options such as out-licensing opportunities or sale of our existing programs and merger and acquisition opportunities, as well as other potential opportunities.

The evaluation of strategic alternatives concluded with the August 2025 commencement of our Litecoin Treasury Strategy through our acquisition of LTC tokens, reflecting the full deployment of the net proceeds of the PIPE. LTC is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances and features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. We believe this strategy will allow us to diversify reserves, enhance capital efficiency and align with emerging financial technologies. We are committed to long-term innovation in capital structure and financial technology, along with the initiation of an expanding strategy that could include the commencement of LTC mining or other crypto-focused operational activities. Additionally, we have commenced further investigational research and development pre-clinical activities with our drug candidate pipeline in nononcology disease indications for potential out-licensing or sale related opportunities.

**Risks and Uncertainties of Digital Assets** 

The fair value of our intangible digital assets, calculated by reference to the principal market price in accordance with U.S. GAAP, relates primarily to the value of the LTC tokens held by us and fluctuations in the price of LTC tokens could materially and adversely affect an investment in our stock. The price of LTC tokens has a limited history and during such history, LTC token prices have been volatile and subject to influence by many factors, including, but not limited to, the levels of liquidity, global LTC supply and demand, compliance and internal control failures leading to the theft of LTC from global trading platforms or vaults, limited liquidity and trading volumes compared to sovereign currency markets and competition from other forms of digital currency or payment services, and global or regional political, economic or financial conditions. If digital asset markets continue to experience significant price fluctuations, we may experience losses.

LTC is subject to a developing regulatory landscape. On March 17, 2026, the SEC issued an interpretation addressing how the federal securities laws apply to certain types of crypto assets and transactions involving crypto assets (the Digital Asset Interpretation). While not a binding regulation, the Digital Asset Interpretation represents a shift in the SEC's regulatory posture toward the crypto asset industry, moving from reliance primarily on enforcement actions to affirmative guidance establishing a classification framework and clarifying when crypto-related activities do or do not implicate the federal securities laws.

In the Digital Asset Interpretation, the SEC classified crypto assets into five categories based on their characteristics, uses, and functions. "Digital commodities," "digital collectibles" including "meme coins," and "digital tools" are not themselves securities according to the SEC. A "digital commodity" is a crypto asset intrinsically linked to, and deriving its value from, the programmatic operation of a "functional" crypto system and supply and demand dynamics, rather than from the expectation of profits based on the essential managerial efforts of others. A digital commodity is not a security. The Digital Asset Interpretation identifies a number of specific crypto assets as digital commodities, including LTC.

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The Commodity Futures Trading Commission (the CFTC) joined the Digital Asset Interpretation to provide guidance that the CFTC and its staff will administer the Commodities Exchange Act of 1936, as amended (the <u>CEA</u>) consistent with the SEC's interpretation. Accordingly, by following the Digital Asset Interpretation, the CFTC will continue to regulate LTC as a digital commodity. Under the CEA, the CFTC has broad enforcement authority to police market manipulation and fraud in spot digital asset markets in which we may transact. Beyond instances of fraud or manipulation, the CFTC generally does not oversee cash or spot market exchanges or transactions involving digital asset commodities that do not utilize margin, leverage or financing. In addition, CFTC regulations and CFTC oversight and enforcement authority apply with respect to futures, swaps, other derivative products and certain retail leveraged commodity transactions involving digital asset commodities, including the markets on which these products trade and the Digital Asset Interpretation does not include in its taxonomy digital derivatives or digital swaps or address regulation regarding these products.

Under the Digital Asset Interpretation, even if a crypto asset is deemed to be a non-security crypto asset (such as a "digital commodity"), the interpretation takes the view that the non-security crypto asset may still be subject to an investment contract, even in the secondary market, and thus secondary market transactions, even in such non-security crypto assets, might be subject to the federal securities laws. While the Digital Asset Interpretation conveys the SEC's views on how the definition of "security" applies to crypto assets, it does not have the binding force of a regulation adopted through notice-and-comment rulemaking. Accordingly, courts are not bound by it and may reach different conclusions, and the SEC could revise or withdraw it in the future.

If LTC is determined to be a "security" under federal or state securities laws by the SEC or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for LTC. For example, it may become more difficult for LTC to be traded, cleared and custodied as compared to other digital assets that are not considered to be securities, which could, in turn, negatively affect the liquidity and general acceptance of LTC and cause users to migrate to other digital assets. As such, any determination that LTC is a security under federal or state securities laws may adversely affect the value of LTC and, as a result, an investment in us.

In addition, if LTC is in fact a security, we could be considered an unregistered "investment company" under the Investment Company Act of 1940, which could necessitate our liquidation or delisting from the exchange on which our stock is traded. In such case, we may be deemed to have participated in an illegal offering of investment company securities and there is no guarantee that the we will be able to register under the Investment Company Act of 1940 at such time, or take such other actions as may be necessary to ensure our activities comply with applicable law, which could force us to liquidate our LTC holdings.

As with any computer network, digital asset networks are vulnerable to various kinds of attacks and disruptions. As LTC operates on a decentralized network, it is highly resistant to hacking attacks. Although LTC may be less susceptible to attack than other cryptocurrencies, transfer of digital assets on blockchains are vulnerable to certain types of exploits.

Access to our LTC accounts requires private keys to initiate transactions and three separate keys for approval. If any single approval key was lost, destroyed or otherwise compromised, we may be unable to access our LTC holdings until such approval key was replaced. The processes by which LTC transactions are settled are dependent on the LTC peer-to-peer network, and as such, we are subject to operational risk. A risk also exists with respect to previously unknown technical vulnerabilities, which may adversely affect the value of LTC.

**Drug Candidate Development Programs**

Our drug candidate pipeline includes voruciclib, an oral CDK9 inhibitor and zandelisib, an oral, once-daily, selective PI3Kδ inhibitor. In October 2024, we sold ME-344, a small molecule mitochondrial inhibitor targeting the oxidative phosphorylation pathway, to Aardvark Therapeutics, Inc. for development in obesity and metabolic diseases, with potential for future milestone payments of $62.0 million upon reaching prespecified development and commercialization targets, as well as royalties.

*Voruciclib: Orally Administered CDK9 Inhibitor*

Voruciclib, a selective orally administered CDK9 inhibitor, was studied in a Phase 1 trial, which evaluated voruciclib dose and schedule as a single agent in patients with acute myeloid leukemia (AML) and B-cell malignancies, and in combination with the B-cell lymphoma 2 (BCL-2) inhibitor venetoclax (marketed as Venclexta®) in patients with AML. All voruciclib clinical trial activities were ceased in September 2024. Previously, voruciclib had been evaluated by Piramal Enterprises Limited in three clinical studies conducted in patients with solid tumors and we conducted pre-clinical studies to explore potential activity in various solid tumors including in combination with therapies that target the RAS signaling pathway, such as KRAS inhibitors. We are currently assessing a pre-clinical development program in nononcology disease indications and have commenced these activities in the second quarter of fiscal year 2026.

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*Voruciclib Scientific Overview: Cell Cycle Signaling*

CDK9 has important functions in cell cycle regulation, including the modulation of two therapeutic targets applicable in cancer and autoimmune diseases:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•CDK9 is a transcriptional regulator of the myeloid leukemia cell differentiation protein (Mcl-1), a member of the family of anti-apoptotic proteins which, when elevated, may prevent the cell from undergoing cell death and result in poor prognosis in cancer. Inhibition of CDK9 blocks the production of Mcl-1, which is also an established resistance mechanism to the BCL-2 inhibitor venetoclax. Inhibition of Mcl-1 also leads to apoptosis or alteration of differentiation of T lymphocytes and macrophages, which is relevant for the treatment of autoimmune diseases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•CDK9 is a transcriptional regulator of the MYC proto-oncogene protein (MYC) which regulates cell proliferation and growth. Upregulation of MYC is implicated in many human cancers and is frequently associated with poor prognosis and unfavorable patient survival. CDK9, in addition to being a transcription factor for MYC, also decreases phosphorylation of MYC protein that is implicated in stabilizing MYC in KRAS mutant cancers.

Directly inhibiting MCL1 and MYC has historically been difficult, but CDK9 is a promising approach to indirectly target these genes.

*Voruciclib: Inhibition of MCL1*

CDK9 is a known transcriptional regulator of MCL1. Over expression of MCL1 is frequently observed in many tumor types and is closely associated with tumorigenesis, poor prognosis and drug resistance. In AML, MCL1 is upregulated in about half of patients with relapsed and refractory (R/R) disease and is associated with poor prognosis in these patients. Also important, high levels of MCL1 expression are associated with resistance to venetoclax.

Data from a Phase 1 study evaluating voruciclib as a single agent and in combination with venetoclax in patients with R/R AML have also demonstrated the anticipated decreases in Mcl-1 protein as reported by Davids et al (Blood Advances. 2025;9(4):820-832) and Alvarado-Valero et al (Blood Neoplasia. 2025;2(3):100108).

The research suggests that voruciclib is potentially an attractive therapeutic agent for treating cancers in combination with venetoclax or other BCL-2 inhibitors and could be potentially used in autoimmune diseases to modulate T-Cells and macrophages.

*Voruciclib: Inhibition of MYC*

Many cancers are associated with over expression of MYC, a transcription factor regulating cell proliferation and growth. CDK9 is a known regulator of MYC transcription and a modulator of MYC protein phosphorylation. Data reported at the American Association for Cancer Research Annual Meeting 2021 in pre-clinical models demonstrated that voruciclib:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Results in a rapid decrease in the phosphorylation of proteins that promote MYC transcription;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Rapidly decreases phosphorylation of MYC protein on Ser62, a site implicated in stabilizing MYC in KRAS mutant cancers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Possesses single agent activity against multiple KRAS mutant cancer cell lines both in vitro and in vivo; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Synergistically inhibits KRAS G12C mutant cancer cell lines in combination with KRAS G12C inhibitors, both in vitro and in vivo.

The research presented suggests that voruciclib could be an attractive therapeutic agent for both hematological cancers, as well as solid tumors, dependent on the activity of MYC.

*Terminated Clinical Programs*

In a Phase 1 clinical trial, we evaluated the dose and schedule of voruciclib in combination with venetoclax, a BCL-2 inhibitor, in patients with R/R AML. The trial initially evaluated dose and schedule of voruciclib as a monotherapy in patients with relapsed and refractory B-cell malignancies and AML after failure of prior standard therapies. The primary objectives of the study were to determine the safety and biologic effective dose of voruciclib monotherapy or voruciclib in combination with venetoclax. Secondary objectives of the study included assessing the preliminary efficacy, pharmacokinetics, pharmacodynamics and biomarkers of voruciclib monotherapy or voruciclib in combination with venetoclax.

As reported by Davids et al. in a 2025 Blood Advance paper, the voruciclib monotherapy dose escalation/expansion stage of the study enrolled a total of 40 patients; the first 16 were dosed daily continuously at 50 and 100 mg and the following 24 patients were dosed on an intermittent schedule (14 consecutive days on therapy in a 28-day cycle) at 100, 150 and 200 mg. Voruciclib at doses up to 200 mg administered on this intermittent schedule was well tolerated with no dose limiting toxicities (DLT) reported. The most common adverse events (≥20% of patients) were diarrhea, nausea, anemia and fatigue. The majority of adverse events were Grade

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1-2; of note, the only Grade 3-4 adverse events were diarrhea (n=1) and anemia (n=5). Pharmacokinetics were dose proportional and a mean half-life of approximately 24 hours supports once daily dosing.

In the 21 patients with AML, one patient achieved a morphologic leukemia-free state and nine patients had disease stabilization, which lasted at least three months in two patients. In the 19 patients with B-cell malignancies, four patients had stable disease with a decrease in tumor size. Correlative studies assessing Mcl-1 and RNA Pol II phosphorylation on Ser2 (RNA Pol II p-S2) demonstrated reduction in expression consistent with the anticipated on-target pharmacodynamic effect of voruciclib.

The next stage of the study evaluated seven voruciclib dose levels from 50 mg every other day to 300 mg daily for 14 consecutive days in a 28-day cycle in combination with standard dose venetoclax in patients with R/R AML and was reported by Avarado-Valero et al. in a 2025 Blood Neoplasia paper. A total of 41 patients were enrolled. These patients were generally heavily pre-treated; the median number of prior therapies was 2 (range 1-7) and 18 (44%) patients had ≥3 prior therapies.

Ten of 32 (31%) patients administered voruciclib at doses ≥ 100 mg in combination with venetoclax 10 (31%) achieved disease control, including three objective responses.

Results from correlative blood biomarker assay studies demonstrated anticipated decreases of Mcl-1, including a greater decrease in Mcl-1 in responding patients. This supports our hypothesis that voruciclib, as an inhibitor or CDK9, regulates Mcl-1 and therefore may address the upregulation of MCL1 associated with venetoclax.

Voruciclib at doses up to 300 mg administered intermittently in combination with venetoclax was well tolerated with no DLT observed. The maximum tolerated dose of voruciclib administered on this schedule with venetoclax has not been established. The most common (≥5% of patients) grade 3 adverse events were myelosuppression associated with AML. Only 1 patient was observed as having a non-hematologic grade 3 drug-related adverse event (diarrhea).

Voruciclib was also previously evaluated in more than 70 patients with solid tumors in multiple Phase 1 studies. The totality of the clinical data, along with data from pre-clinical studies, suggests voruciclib's ability to inhibit its molecular target at a projected dose as low as 150 mg daily.

*Zandelisib: PI3Kδ Inhibitor Overview*

Zandelisib is an oral, once-daily, selective PI3Kδ inhibitor that was being development for the treatment of indolent B-cell lymphomas. In November 2022 we announced the discontinuation of zandelisib development after a meeting with the U.S. Food and Drug Administration (the FDA), in which the FDA recommended modifications to the phase 3 registration study that we deemed not feasible to complete in a time frame that would support further investments. Currently, we are not conducting any clinical trial for zandelisib and are assessing potential out-licensing or sale related opportunities.

**Results of Operations**

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

The following table summarizes certain components of our results of operations (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** |  |  |
|  | **2026** | **2025** | **$ Change** | **% Change** |
| Research and development | $30 | $369 | $(339) | (91.9)% |
| General and administrative | 2735 | 2405 | 330 | 13.7% |
| Change in fair value of digital assets | 18845 |  | 18845 | 100.0% |
| Other (expense) income, net | (2084) | 201 | (2285) | (1136.8)% |

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***Research and Development.*** 

The following is a summary of our research and development expenses to supplement the more detailed discussion below (in thousands).

---

| | | |
|:---|:---|:---|
|  | **For the Three Months Ended March 31,** | **For the Three Months Ended March 31,** |
|  | **2026** | **2025** |
| zandelisib | $4 | $23 |
| voruciclib | 12 | 4 |
| Other | 14 | 342 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total research and development expenses | $30 | $369 |

---

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Research and development costs decreased by approximately $0.3 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This decrease was a result of our exploration of strategic alternatives announced in July 2024, at which time all clinical studies were ceased and we initiated reductions in our workforce. Pre-clinical investigational activities in nononcology disease indications for voruciclib commenced in the second quarter of fiscal year 2026.

***General and Administrative.***

General and administrative expenses increased by $0.3 million to $2.7 million for the three months ended March 31, 2026 compared to $2.4 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, we incurred $0.7 million in noncash asset management and advisory fees and $0.1 million in professional services incurred in connection with our Litecoin Treasury Strategy deployed in the first quarter of fiscal year 2026 along with a $0.3 million increase in noncash share-based compensation expense. These increases were partially offset by $0.8 million less in termination benefits.

***Change in Fair Value of Digital Assets.***

Change in fair value of digital assets represents unrealized losses from the remeasurement of our LTC investments to their fair value, realized losses recognized upon derecognition of LTC digital assets when placing them as collateral with GSR Markets upon writing of Covered Call Options and realized losses on the sale of LTC digital assets. We had no such investments in the comparable prior year period.

***Other (Expense) Income, Net.*** 

Other (expense) income, net, decreased by $2.3 million to a loss of $2.1 million for the three months ended March 31, 2026 compared to income of $0.2 million for the three months ended March 31, 2025, primarily associated with the change in fair value of digital assets receivable, net, reflecting realized and unrealized losses on LTC pledged for Covered Call Options partially offset by a gain on derivative liabilities during the current period with no such similar activity during the comparable prior year period. During the three months ended March 31, 2026 compared to the three months ended March 31, 2025, we received lower interest and dividend income as a result of lower cash balances.

**Results of Operations**

**Comparison of Nine Months Ended March 31, 2026 and 2025**

The following table summarizes certain components of our results of operations (in thousands).

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Nine Months Ended March 31,** | **For the Nine Months Ended March 31,** |  |  |
|  | **2026** | **2025** | **$ Change** | **% Change** |
| Research and development | $86 | $3840 | $(3754) | (97.8)% |
| General and administrative | 9138 | 10737 | (1599) | (14.9)% |
| Change in fair value of digital assets | 45992 |  | 45992 | 100.0% |
| Other (expense) income, net | (2916) | 1320 | (4236) | (320.9)% |

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***Research and Development.*** 

The following is a summary of our research and development expenses to supplement the more detailed discussion below (in thousands).

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended March 31,** | **For the Nine Months Ended March 31,** |
|  | **2026** | **2025** |
| zandelisib | $4 | $(32) |
| voruciclib | 38 | 802 |
| ME-344 |  | 253 |
| Other | 44 | 2817 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total research and development expenses | $86 | $3840 |

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Research and development costs decreased by $3.8 million for the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025. This decrease was a result of our exploration of strategic alternatives announced in July 2024, at which time all clinical studies were ceased and we initiated reductions in our workforce. Pre-clinical investigational activities in nononcology disease indications for voruciclib commenced in the second quarter of fiscal year 2026.

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***General and Administrative.***

General and administrative expenses decreased by $1.6 million to $9.1 million for the nine months ended March 31, 2026, compared to $10.7 million for the nine months ended March 31, 2025. The decrease was primarily due to $4.4 million of lower personnel costs, including $3.5 million in termination benefits, and a $0.4 million net decrease in other general and administrative costs. These decreases were partially offset by increases of $1.8 million in noncash asset management and advisory fees, $0.9 million in noncash share-based compensation expense and $0.6 million in professional services incurred in connection with our Litecoin Treasury Strategy deployed in the first quarter of fiscal year 2026.

***Change in Fair Value of Digital Assets.***

Change in fair value of digital assets represents unrealized losses from the remeasurement of our LTC investments to their fair value, realized losses recognized upon derecognition of LTC digital assets when placing them as collateral with GSR Markets upon writing of Covered Call Options and realized losses on the sale of LTC digital assets. We had no such investments in the comparable prior year period.

***Other (Expense) Income, Net.*** 

Other (expense) income, net, decreased by approximately $4.2 million to a loss of $2.9 million for the nine months ended March 31, 2026 compared to income of $1.3 million for the nine months ended March 31, 2025, primarily associated with the change in fair value of digital assets receivable, net, realized and unrealized losses on LTC pledged for Covered Call Options partially offset by a gain on derivative liabilities during the current period with no such similar activity during the comparable prior year period. During the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, we received lower interest and dividend income as a result of lower cash balances. During the nine months ended March 31, 2025, we recognized a gain on the sale of our ME-344 asset with no similar activity in the current nine-month period.

**Liquidity and Capital Resources**

To date, we have obtained cash and funded our operations primarily through equity financings and license agreements. We have accumulated losses of $462.3 million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future. As of March 31, 2026, we had $7.5 million in cash and cash equivalents and $40.3 million in unrestricted digital assets. Although we intend to retain and hold our digital assets, we could liquidate these assets, or a portion thereof, if needed to fund our operating activities. In connection with our July 2024 announcement regarding the evaluation of our strategic alternatives, we discontinued the clinical development of voruciclib in oncology, while certain related nonclinical research and development activities continued through the end of fiscal year 2025. As part of our continued assessment of future pre-clinical development with our drug candidate pipeline, in the second quarter of fiscal year 2026 we commenced additional investigational research and development activities in nononcology disease indications. We believe that our cash balance, including our digital assets, will be sufficient to meet our obligations and fund operations for at least the next 12 months from the issuance of these condensed consolidated financial statements.

In December 2025, we commenced utilization of our Share Repurchase Program utilizing proceeds from our Covered Call Options to repurchase Shares of our Common Stock. During the nine months ended March 31, 2026, we received proceeds of $0.7 million from our Covered Call Options which were recognized as gains in our statements of operations. These proceeds and proceeds from the sale of our digital assets were used to repurchase 1,629,136 shares of our Common Stock.

*Sources and Uses of Our Cash*

Net cash used in operating activities for the nine months ended March 31, 2026, of $8.0 million consisted of our net loss of $58.1 million and $1.6 million in changes in our operating assets and liabilities used in operations, offset by $51.7 million for noncash items. Net cash used in operating activities for the nine months ended March 31, 2025, of $18.4 million consisted of our net loss of $13.3 million, $5.0 million in our operating assets and liabilities used in operations and $0.1 million in noncash items.

Net cash used in investing activities for the nine months ended March 31, 2026, of $97.3 million consisted of our acquisition of digital assets upon deployment of our Litecoin Treasury Strategy in August 2025, proceeds from sales of our digital assets and written call options on our LTC. Net cash provided by financing activities for the nine months ended March 31, 2025, of $35.2 million consisted of maturities of our short-term investments and proceeds recognized on the disposition of a nonfinancial asset.

Net cash provided by financing activities for the nine months ended March 31, 2026, was $94.8 million associated with the issuance and sale of 23,216,898 shares of Common Stock and Pre-Funded Warrants for the purchase of up to 6,022,869 shares of Common Stock in our PIPE and the issuance, sale of 882,924 shares of Common Stock under our ATM Program. These proceeds were partially offset by cash used to repurchase 1,629,136 shares of our Common Stock at an average cost per share of $1.22. We had no financing activities during the nine months ended March 31, 2025.

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*Capital Resource Requirements* 

As of March 31, 2026, we have the following potential purchase obligations for which the timing and/or likelihood of occurrence is unknown; however, if such claims arise in the future, they could have a material effect on our financial position, results of operations, and cash flows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Under our remaining license agreements, we have payment obligations, which are contingent upon future events such as our achievement of specified development, regulatory and commercial milestones and are required to make royalty payments in connection with the sales of products developed under those agreements. For additional details regarding these agreements, see the section titled [*<u>Note 9. Commitments and Contingencies</u>*](#fn_commandcont) and [*<u>Note 10. License Agreements</u>*](#fn_othlicagree)elsewhere in this Quarterly Report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Obligations under contracts which are cancelable without significant penalty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Purchase orders issued in the ordinary course of business as they represent authorizations to purchase the items rather than binding agreements; and

Our future capital requirements will depend on many factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the scope and nature of our Litecoin Treasury Strategy,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the scope, progress, results and costs of drug discovery, pre-clinical development, laboratory testing and clinical trials for our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs, timing and outcome of regulatory review of our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs of establishing or contracting for sales, marketing and distribution capabilities if we obtain regulatory approvals to market our product candidates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs of securing and producing drug substance and drug product material for use in pre-clinical studies, clinical trials and for use as commercial supply;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs of securing manufacturing arrangements for development activities and commercial production;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the scope, prioritization and number of our research and development programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the extent to which we are obligated to reimburse, or entitled to reimbursement of, clinical trial costs under future collaboration agreements, if any; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the costs of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending intellectual property-related claims.

**Critical Accounting Estimates**

We describe our significant accounting policies in *Note 2. Summary of Significant Accounting Policies* of the notes to the financial statements included in our 2025 Annual Report. We discuss our critical accounting estimates in *Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations* in our 2025 Annual Report. Except as disclosed in [*<u>Note 2. Summary of Significant Accounting Policies</u>*](#fn2_sumsignacct)*,* as it relates to [*<u>Digital Assets,</u>*](#fn_da_policy)[*<u>Digital Assets Receivable, Net</u>*](#dat_rec_net)*,* [*<u>Derivatives - Covered Call Options</u>*](#derivatives_cco)and [*<u>Warrants</u>*](#fn_warr_policy), and the addition of our critical accounting estimate as it relates to *Valuation of Equity Instruments Issued for Exchange for Services and Valuation of Covered Call Options* (described below), there have been no changes in our significant accounting policies or critical accounting estimates since June 30, 2025.

*Valuation of Equity Instruments Issued for Exchange for Services*

Equity instruments issued in exchange for services rendered or to be rendered to us are accounted for in accordance with ASC 718, *Stock Compensation*. Such instruments are evaluated to determine if they should be classified as liability or equity awards. For these awards, we estimate the fair value of the services rendered/to be rendered (i.e., the compensation cost to be recognized) based upon either (i) the grant date fair value of the equity instruments issued as determined using an option pricing model such as the BSM Model or (ii) the fair value of the liabilities incurred/settled. For the Advisory Warrants issued in the PIPE, we estimated the grant date fair value using the valuation inputs as of the grant date. For the GSR Pre-Funded Warrant and the GD Advisory Warrant issued in settlement of the Asset-based Fee and the Annual Advisory Fee, respectively, we determined the grant date fair value represented the amount of the liabilities settled. We recognize the expense immediately in our condensed consolidated financial statements for services rendered at the time of issuance and for services not yet rendered, we recognize an asset and amortize the fair value of the services being rendered over the requisite service period.

A 10% increase (decrease) in the historical volatility utilized to estimate the grant date fair value of the Advisory Warrants would have resulted in an increase (decrease) of $0.7 million ($0.8 million) in the grant date fair value of the Advisory Warrants.

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A 10% increase (decrease) in our assets under management as of the Fee Reference Date would have resulted in a $0.2 million increase (decrease) in the fair value of the liabilities settled through issuance of the GSR Pre-Funded Warrants.

*Valuation of Covered Call Options*

Covered Call Options written by us are accounted for in accordance with ASC 8*15, Derivatives and Hedging.* Such instruments do not qualify for hedge accounting and are considered freestanding financial instruments and were evaluated to be liability instruments. Our Covered Call Options are initially recorded at fair value (the contract amount) and are marked-to-market at each reporting period (if they are still outstanding, using the Black-76 Model, with changes in the fair value of the derivative liability being recognized in the condensed consolidated statements of operations within other income (expense).

A 10% increase (decrease) in the historical volatility of LTC utilized to estimate the fair value of the derivative liabilities - covered call options would have resulted in a *de minimis* increase (decrease) in the gain on derivative liabilities as of March 31, 2026.

A 10% increase (decrease) in the forward price as of March 31, 2026, would have resulted in a *de minimis* increase (decrease) in the gain on derivative liabilities.

**Recent Accounting Pronouncements**

See [*<u>Recent Accounting Pronouncements</u>*](#fn_rcnt_acctg_pro) within [*<u>Note 2. Summary of Significant Accounting Policies</u>*](#fn2_sumsignacct)in the [<u>Notes to Condensed Consolidated Financial Statements</u>](#notes_to_condensed_financial_statements)in this Quarterly Report.

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

As a smaller reporting company, we are not required to provide the information otherwise required by this Item.

**Item 4. Controls and Procedures**

***Evaluation of Disclosure Controls and Procedures***

Disclosure controls and procedures are controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this Quarterly Report, or March 31, 2026, our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on such evaluation, our principal executive officer and principal financial officer have concluded that, as of such date, our disclosure controls and procedures were effective.

***Changes in Internal Control over Financial Reporting***

Under the supervision and with the participation of our management, including our principal executive and principal financial officer, we carried out an evaluation of any potential changes in our internal control over financial reporting during the fiscal quarter ended March 31, 2026. There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the fiscal quarter ended March 31, 2026 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

***Inherent Limitations of Internal Controls***

Our management does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent or detect all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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**PART II OTHER INFORMATION**

**Item 1. Legal Proceedings**

None.

**Item 1A. Risk Factors**

There have been no material changes in our risk factors from those included in our 2025 Annual Report.

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

The following table represents the share repurchase activity for each of the three months in the quarter ended March 31, 2026:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares (or Units) Purchased** <sup>(1)</sup> | **Average Price Paid Per Share (or Unit)** | **Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs** | **Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet be Purchased Under the Plans or Programs** <sup>(2)</sup> |
| January 1 - 31, 2026 | 100050 | $1.47 | 100050 | $24660225 |
| February 1 - 28, 2026 | 489217 | 1.13 | 489217 | 24121550 |
| March 1 - 31, 2026 | 902328 | 1.21 | 902328 | 23063197 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $1491595 | $1.20 | $1491595 |  |

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________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All shares repurchased pursuant to the Share Repurchase Program through open market transactions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) On October 29, 2025, the Board approved the Share Repurchase Program to repurchase shares of our Common Stock up to an aggregate amount of $25.0 million. The Share Repurchase Program may be suspended or terminated by us at any time.

**Item 3. Defaults upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information**

None of our executive officers or directors have adopted, modified or terminated any contract, instruction, or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1 (c) or any "non-Rule 10b5-1 trading arrangement" (as defined in Item 408(c) of Regulation S-K) during the three months ended March 31, 2026.

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**Item 6. Exhibits**

**Exhibit Index**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Incorporated by Reference Herein** | **Incorporated by Reference Herein** | **Incorporated by Reference Herein** | **Incorporated by Reference Herein** |
| **Exhibit**<br>**Number** | **Description** | **Schedule/**<br>**Form** | **File No.** | **Exhibit** | **Filing Date** |
| 3.1 | [<u>Amended and Restated Certificate of Incorporation of Lite Strategy, Inc.</u>](https://www.sec.gov/Archives/edgar/data/1262104/000119312525220421/lits-ex3_1.htm) | 10-K | 001-41827<br>| 3.1 | September 26, 2025 |
| 3.2 | [<u>Sixth Amended and Restated Bylaws of Lite Strategy, Inc. adopted as of December 18, 2023</u>](https://www.sec.gov/Archives/edgar/data/1262104/000095017023072612/meip-ex3_1.htm) | 8-K | 001-41827 | 3.1 | December 22, 2023 |
| 10.1 | [<u>Lite Strategy, Inc. 2026 Stock Omnibus Equity Compensation Plan</u>](https://www.sec.gov/Archives/edgar/data/1262104/000119312526049005/lits-ex10_1.htm) | 8-K | 001-41827 | 10.1 | February 12, 2026 |
| 31.1\* | [<u>Certification of Principal Executive and Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](lits-ex31_1.htm) |  |  |  |  |
| 32.1\*\* | [<u>Certification of Principal Executive Officer and Principal Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C 1350).</u>](lits-ex32_1.htm) |  |  |  |  |
| 101INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |  |  |  |  |
| 104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the XBRL document. |  |  |  |  |
| \*  | Filed herewith | Filed herewith | Filed herewith | Filed herewith | Filed herewith |
| \*\* | Furnished herewith | Furnished herewith | Furnished herewith | Furnished herewith | Furnished herewith |

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Quarterly Report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| |
|:---|
| Lite Strategy, Inc. |
| /s/ Justin J. File |
| Justin J. File<br>Chief Executive Officer, Chief Financial Officer and Secretary<br>|
| Date: May 13, 2026 |

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Justin J. File, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Lite Strategy, Inc.;

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in the Quarterly Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report based on such evaluation; and

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

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

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

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

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| | |
|:---|:---|
| Date: May 13, 2026 | /s/ Justin J. File |
|  | Justin J. File<br>Chief Executive Officer, <br>Chief Financial Officer and Secretary<br>(Principal Executive Officer and Principal Financial Officer) |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION**

The undersigned hereby certifies, for the purposes of Section 1350 of Chapter 63 of Title 18 of the U.S. Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in his capacity as Chief Executive Officer and Chief Financial Officer of Lite Strategy, Inc. (Lite Strategy) that, to his knowledge, this Quarterly Report on Form 10-Q of Lite Strategy for the quarter ended March 31, 2026, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Lite Strategy.

Dated: May 13, 2026

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| |
|:---|
| /s/ Justin J. File |
| Justin J. File |
| Chief Executive Officer, Chief Financial Officer and Secretary<br>(Principal Executive and Principal Financial Officer) |

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These certifications accompanying the report to which they relate, are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Lite Strategy under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent Lite Strategy specifically incorporates it by reference.

A signed original of this written statement required by Section 906 has been provided to Lite Strategy and will be retained by Lite Strategy and furnished to the Securities and Exchange Commission or its staff upon request.

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