Lite Strategy LITS

To date, we have obtained cash and funded our operations primarily through equity financings and license agreements. We have accumulated losses of $404.2 $475.3 million since inception and expect to incur operating losses and generate negative cash flows from operations for the foreseeable future. As of June 30, 2025, 2026, we had $18.0 $5.7 million in cash and cash equivalents. On equivalents and $27.3 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 22, 2024, we announced that our Board had determined unanimously to begin 2024 announcement regarding 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. In connection with the exploration of strategic alternatives, we commenced a reduction-in-force on August 1, 2024 and discontinued the clinical development of voruciclib. voruciclib in oncology, while certain related nonclinical research and development activities continued through the end of fiscal year 2025. As a result part of this announcement, our R&D expenses decreased significantly as we discontinued our clinical R&D activities. We are currently assessing the recommencement continued assessment of future pre-clinical development with our drug candidate pipeline, in the second quarter of our two drug candidates. We believe our current cash balance is sufficient to fund operations for at least the next 12 months. fiscal year 2026 we commenced additional investigational research and development activities in nononcologic disease indications.

We are a clinical-stage pharmaceutical company. company that has historically developed novel and differentiated cancer therapies and is currently assessing pre-clinical development programs in nononcologic disease indications. We also hold LTC tokens as a primary reserve asset as part of our broader institutional treasury strategy. As a result, our financial condition and results of operations are also exposed to fluctuations in the market price of LTC. Until recently, July 2024, we had primarily focused our efforts primarily on developing voruciclib, a selective orally administered CDK9 inhibitor and ME-344 (prior to its sale in October 2024), an intravenous small molecule mitochondrial inhibitor targeting the oxidative phosphorylation pathway, with the goal of achieving regulatory approval. In connection with our decision We are currently evaluating voruciclib in nonclinical models to undertake a comprehensive exploration support its development in autoimmune diseases and commenced these activities in the second quarter of strategic alternatives, we have discontinued our clinical programs involving voruciclib and fiscal year 2026. Currently, we are currently not conducting any clinical trial activities for zandelisib and are assessing the recommencement of pre-clinical development of both voruciclib and zandelisib. potential out-licensing or sale related opportunities.

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 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 We adopted ASU 2023-09 prospectively for its annual periods beginning after December 15, 2024, with early period ended June 30, 2026. The adoption permitted. An entity may apply the amendments in of 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 did not have a material impact on our disclosures with no impacts to our consolidated results of operations, cash flows flows, financial condition and financial condition. disclosures.

We have contracted with various consultants and third parties to assist us in pre-clinical R&D research and development and clinical trials work for our leading drug compounds and general and administrative activities. third-party service organizations on an as-needed basis for treasury management. The contracts are terminable at any time but obligate us to reimburse the providers for any time or costs incurred through the date of termination. See the discussion of the sale of ME-344 within Note 13. Disposition of a Non-financial Asset for additional information regarding contracts associated with ME-344 assumed by the Purchaser (as defined in Note 13. Disposition of a Non-Financial Asset ). We also have an employment agreement with our Acting Chief Executive Officer chief executive officer and Chief Financial Officer chief financial officer that provides for severance payments and accelerated vesting for share-based awards if their his employment is terminated under specified circumstances.