10-K 0001193125-26-405328 (2026-09-28) vs 10-K 0001193125-25-220421 (2025-09-26)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 8,426 |
16.8% |
| MD&A | Item 7 | 3,714 |
62.6% |
| Legal Proceedings | Item 3, via Note 9 – Commitments and Contingencies | 470 |
33.6% |
| Accounting Policies | Item 8, Note 2 – Summary of Significant Accounting Policies | 5,210 |
83.2% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 199 words changed in this paragraph; it is 38% similar to last year's version.
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.
Source: Item 7, 10-K 0001193125-26-405328 vs Item 7, 10-K 0001193125-25-220421
Risk Factors 142 words changed in this paragraph; it is 41% similar to last year's version.
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.
Source: Item 1A, 10-K 0001193125-26-405328 vs Item 1A, 10-K 0001193125-25-220421
Accounting Policies 136 words changed in this paragraph; it is 58% similar to last year's version.
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.
Source: Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0001193125-26-405328 vs Item 8, Note 2 – Summary of Significant Accounting Policies, 10-K 0001193125-25-220421
Legal Proceedings 60 words changed in this paragraph; it is 73% similar to last year's version.
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.
Source: Item 3, via Note 9 – Commitments and Contingencies, 10-K 0001193125-26-405328 vs Item 3, via Note 6 – Commitments and Contingencies, 10-K 0001193125-25-220421
Every change, by type
Sentences and paragraphs of LITS's Risk Factors and MD&A, 10-K 2026-09-28 against 10-K 2025-09-26.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
We intend to monitor our assets and income in order to conduct our business activities in a manner such that we do not fall within the definition of “investment company” under the 1940 Act or would qualify under one of the exemptions or exclusions
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedRisk Factors
adequate preventative measures. Further, there has been an increase in such activities due to the increase in work-from-home arrangements. The risk of cyberattacks could also be increased by cyberwarfare in connection with the ongoing Russia-Ukraine and Israel-Hamas conflicts, or other future conflicts, including potential proliferation of malware into systems unrelated to such conflicts. Any future breach of our operations or those of others in the Litecoin industry, including third-party services on which we rely, could materially and adversely affect our financial condition and results of operations.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedRisk Factors
We expect to continue to incur operating and net losses, as we develop and seek development and/or commercial relationships with other partners for our drug candidates. In addition, because we hold LTC as a primary reserve asset, fluctuations in the market price of LTC, including declines below our acquisition costs, may materially affect our financial condition and results of operations and could increase or contribute to our net losses. The market price of LTC has historically been volatile, and we cannot predict future LTC prices or the effect that changes in the value of our LTC holdings may have on our financial results.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedRisk Factors
We may incorporate the use of AI into our business, operations and offerings in ways which present opportunities as well as challenges and risks, particularly as AI can produce hallucinations and AI agents may take undesired actions, if used.AI systems or input data issues could present inaccurate information, privacy, reputational and other issues and liability. A number of jurisdictions have implemented (or will implement) AI-related laws which may adversely effect our business. For example, the EU AI Act, which has extra-territorial effect like the GDPR, imposes penalties up to the greater of: (i) €35 million; or (ii) 7% of an entire group's total annual worldwide turnover.
Read it in 10-K 2026-09-28 at sec.gov ↗
RemovedRisk Factors
Similarly, in November 2022, hackers exploited weaknesses in the security architecture of the FTX Trading digital asset exchange and reportedly stole over $400 million in digital assets from customers. A successful security breach or cyberattack could result in:
Read it in 10-K 2025-09-26 at sec.gov ↗
RemovedRisk Factors
Should we resume development activities in the future, we expect that R&D costs would increase and we would continue to incur expenses and operating and net losses, as we develop and seek development and/or commercial relationships with other partners for such drug candidates.
Read it in 10-K 2025-09-26 at sec.gov ↗
RemovedRisk Factors
Should we resume R&D activities in the future, we expect we would to continue to incur losses for the foreseeable future as we:
Read it in 10-K 2025-09-26 at sec.gov ↗
RemovedRisk Factors
•add operational, financial and management information systems and personnel, including personnel to support our drug development efforts.
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RemovedRisk Factors
Risks Related to Any Future Development and Commercialization of Our Drug and Potential Drug Candidates
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RemovedRisk Factors
Should we resume development of our drug candidate or future drug candidates, if we are unable to successfully complete clinical development, obtain regulatory approvals and commercialize our drug candidate or future drug candidates, or experience significant delays in doing so, our business will be materially harmed.
Read it in 10-K 2025-09-26 at sec.gov ↗
RemovedRisk Factors
In July 2024, we discontinued the clinical programs in our pipeline in connection with our undertaking a comprehensive exploration of strategic alternatives. Should we resume development activities in the future, we cannot be certain that any such drug candidates will be successful in clinical trials or receive regulatory approval. Regulatory authorities may interpret our data differently than we do. We are not permitted to market or promote any of our drug candidates before we receive regulatory approval from the FDA or comparable foreign regulatory authorities; should we resume development activities in the future we may never receive such regulatory approval for voruciclib or any future drug candidates.
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RemovedRisk Factors
● successful enrollment in and completion of, clinical trials, as well as completion of pre-clinical studies;
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RemovedRisk Factors
● favorable efficacy and acceptable safety data from our clinical trials and other studies;
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RemovedRisk Factors
● managing our reliance on sole-source third parties such as our third-party vendors, suppliers and manufacturers;
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RemovedRisk Factors
● the performance by CROs or other third parties and consultants we may retain of their duties to us in a manner that complies with our protocols and applicable laws and that protects the integrity of the resulting data;
Read it in 10-K 2025-09-26 at sec.gov ↗
RemovedRisk Factors
● obtaining and maintaining patent, trade secret and other intellectual property protection and regulatory exclusivity;
Read it in 10-K 2025-09-26 at sec.gov ↗
RewordedRisk Factors
Thus, any access, disclosure or other loss of information, security and other incidents, including our data or systems being breached at our partners or third-party providers, along with violations of privacy privacy, data protection, cybersecurity, operational resilience and AI laws that exist and are increasing around the world, could result in civil or regulatory legal claims or proceedings and liability other legal actions and liability, including fines, under such laws that protect and in relation to the privacy of personal data confidential and proprietary information, disrupt our operations and damage our reputation, as well as general increases in compliance costs, which could adversely affect our business. business, operating results, prospects and financial condition.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
If we fail to comply with the continued listing standards and the Nasdaq Capital Market delists our securities from trading on its exchange, we and our stockholders could face significant negative consequences including: reducing the liquidity and market price of our common stock; reducing the number of investors willing to hold or acquire our common stock, which could negatively impact our ability to raise equity financing; decreasing the amount of news and analyst coverage of us; and limiting
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
As of June 30, 2025, 2026, we had outstanding warrants exercisable to purchase 102,513 3,406,839 shares of common stock at a weighted-average exercise price of $3.90 per share, which are expiring between in October 2027 and July 22, 2030 and 546,348 Pre-Funded Warrants with an exercise price of $6.80 per share, $0.0001, which expire are exercisable until they exercised in October 2027. full.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
Despite our reasonable security and operational resilience measures, our information technology and infrastructure may be vulnerable to cyber-attacks unauthorized use or breached access, material disruptions including further to natural disaster, pandemics, epidemics, terrorism, war and telecommunications, electrical and other infrastructure failures, breaches or subject to other malicious and/or damaging security incidents including due to employee error, third-party malfeasance or other disruptions.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
Moreover, the risks of us engaging in a Litecoin treasury strategy could create complications due to the lack of experience that third parties have with companies engaging in such a strategy, such as increased costs of director and officer liability insurance or the potential inability to obtain such coverage on acceptable terms in the future.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
Additionally, California has the California Consumer Privacy Act (CCPA), and over a dozen other states have enacted consumer privacy laws which creates create individual privacy rights for consumers (as that word is broadly defined in the law) and places place increased privacy and security obligations on entities handling personal data of consumers or households.
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RewordedRisk Factors
In the ordinary course of our business, we collect and our service providers collect, store and otherwise process sensitive data, including intellectual property, our proprietary business information and that of our suppliers, as well as personal data (or other analogous terms such as personally identifiable information information) of clinical trial participants participants, employees and employees. other parties with whom we interact.
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RewordedRisk Factors
While the SEC has not stated a view as to whether Litecoin is or Such statement is not a “security” for purposes of the federal securities laws, binding, so a determination by the SEC or a court of competent jurisdiction that Litecoin is a security could lead to our meeting the definition of “investment company” under the 1940 Act, if the portion of our assets that consists of investments in Litecoin exceeds the 40% limit prescribed in the 1940 Act, which would subject us to significant additional regulatory requirements that could have a material adverse effect on our business and operations and may also require us to change the manner in which we conduct our business.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
We continue to evaluate the legal issues that arise concerning transfer of personal data of residents persons located in or otherwise subject to the laws of the European Economic Area (EEA) EEA member states states, Switzerland or the U.K. UK to the U.S. or other jurisdictions that are not deemed adequate by the European Commission. relevant supervisory authorities.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
We may, in addition to other impacts, experience additional costs associated with increased compliance burdens and we and our customers face the potential for regulators in the EEA EEA, Switzerland or U.K. UK to apply different standards to the transfer of personal data from the EEA/U.K. EEA, Switzerland or UK to the U.S. and other jurisdictions and to block, or require ad hoc verification of measures taken with respect to, certain data flows from the EEA EEA, Switzerland or U.K. UK to the U.S. and other jurisdictions.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
Cyber-attacks and other security incidents are increasing in their frequency, levels of persistence, sophistication and intensity and are being conducted by sophisticated and organized groups and individuals with a wide range of motives and expertise. expertise, including state sponsored actors, organized criminal groups, "hacktivists," insiders, patient groups, disgruntled current or former employees and others.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedRisk Factors
Whenever we decide to resume development of our drug candidate or any future drug candidate, we We may need additional funding and may be unable to raise capital when needed, which would force us to delay, reduce or eliminate our pre-clinical drug development programs.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
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.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
In December 2025, we commenced utilization of our Share Repurchase Program and have repurchased an aggregate of 4,378,525 shares of our Common Stock from the open market (Treasury Shares) at a weighted-average price of $1.12 per share as of June 30, 2026. Treasury Shares repurchased through the Share Repurchase Program are considered held in treasury and returned to the
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
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.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
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.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
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 evaluate expected credit losses each reporting period. As of June 30, 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.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
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, net, a component of other (expense) income, net, in the consolidated statements of operations.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
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 AMA Pre-Funded Warrants and the GD Advisory Warrant issued in settlement of the Asset-based Fee and the Annual Advisory Fee, as defined in Note 17. Related Party Transactions, respectively, we determined the grant date fair value represented the amount of the liabilities settled. We recognize the expense immediately in our 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.
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AddedMD&A
A 10% increase (decrease) in the implied 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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AddedMD&A
A 10% increase (decrease) in our assets under management as of the Fee Reference Date as defined in Note 17. Related Party Transactions, would have resulted in a $0.2 million increase (decrease) in the fair value of the liabilities settled through issuance of the AMA Pre-Funded Warrants and a $0.1 million increase (decrease) in the fair value of liabilities settled through issuance of the GD Advisory Warrant.
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AddedMD&A
Covered Call Options written by us are accounted for in accordance with ASC 815, 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 consolidated statements of operations within other (expense) income, net.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
A 10% increase (decrease) in the implied 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, net, as of June 30, 2026.
Read it in 10-K 2026-09-28 at sec.gov ↗
AddedMD&A
A 10% increase in the forward price as of June 30, 2026 would have resulted in a $0.2 million decrease in the gain on derivative liabilities, net. A 10% decrease in the forward price as of June 30, 2026 would have resulted in a de minimis increase in the gain on derivative liabilities, net.
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RemovedMD&A
Consistent with our intention to preserve cash, David M. Urso, our President and Chief Executive Officer and Richard Ghalie, MD, our Chief Medical Officer, stepped down effective August 1, 2024. Mr. Urso also left the Board at that date. We entered into a consulting agreement with Dr. Ghalie under which he remains available to assist us in strategic efforts or ongoing operations. In addition, we entered into a consulting agreement with Mr. Urso, which was terminated in February 2025. Charles V. Baltic III, the Chairperson of the Board, also stepped down from the Board contemporaneously with the announcement on July 22, 2024. Our Board appointed Justin J. File, our current Chief Financial Officer, to assume the position of Acting Chief Executive Officer and appointed Frederick W. Driscoll as Chairperson of the Board.
Read it in 10-K 2025-09-26 at sec.gov ↗
RemovedMD&A
The evaluation of strategic alternatives concluded with the August 2025 implementation of our 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 Litecoin mining activities, as well as our continued assessment of pre-clinical activities with our drug candidate pipeline, as to which we anticipate conducting further investigational research and development in the next several months.
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RemovedMD&A
On September 24, 2025, as payment of the annual Asset-based Fee under the Asset Management Agreement, we issued to GSR, 546,348 Pre-Funded Warrants with an exercise price of $0.0001 per share. Subject to the limitations on exercise set forth in the warrant agreement, the Pre-Funded Warrants may be exercised at any time until they are exercised in full.
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RemovedMD&A
On October 31, 2023, we announced our entry into a cooperation agreement with Anson Funds Management LP and Cable Car Capital LLC (Cooperation Agreement), which, among other non-financial related 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 (Cooperation Agreement). The total dividend of $11.7 million was paid on
Read it in 10-K 2025-09-26 at sec.gov ↗
RemovedMD&A
December 6, 2023 and was recorded as a reduction of additional paid-in capital in the 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 such Cooperation Agreement.
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RemovedMD&A
At a special meeting of our stockholders held on July 23, 2023, stockholders voted on the agreement and plan of merger (Merger Agreement) entered into in February 2023, by us, Infinity Pharmaceuticals, Inc. (Infinity) and Meadow Merger Sub, Inc., our wholly owned subsidiary (Merger Sub). At such special meeting, the Merger Agreement did not obtain the necessary approval from our stockholders and, accordingly, on July 23, 2023, we sent Infinity a notice terminating the Merger Agreement.
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RemovedMD&A
In accordance with the authoritative guidance for impairment or disposal of long-lived assets Accounting Standards Codification (ASC) Topic 360, Property, Plant and Equipment (ASC 360), we assess potential impairments to our long-lived assets, including property, equipment and right-of-use assets, when there is evidence that events or changes in circumstances indicate that the carrying value may not be recoverable. We recognize an impairment loss when the undiscounted cash flows expected to be generated by an asset (or group of assets) are less than the asset’s carrying value. Any required impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value and would be recorded as a reduction in the carrying value of the related asset and charged to results of operations. Assumptions and estimates used in evaluating our long-lived assets future values and remaining useful lives are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends and internal factors such as changes in our business strategy, internal forecasts and clinical trial results. For example, if we experience a sustained decline in our market capitalization determined to be indicative of a reduction in fair value of our enterprise, we may be required to record future impairment charges for our acquired technology intangible assets with finite lives.
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RemovedMD&A
Impairment charges could materially decrease our future net income and result in lower asset values on our balance sheet. Key assumptions include, but are not limited to, future cash flows, operating margins, capital expenditures, terminal growth rates and discount rates. We also consider our market capitalization as a part of our analysis. During the fiscal year ended June 30, 2024, we recorded long-lived asset impairment charges of $10.9 million. During the fiscal year ended June 30, 2025, we had no similar charge. For additional details regarding our intangible assets and related impairments see Note 3—Balance Sheet Details and Note 9—Leases, to our consolidated financial statements and related notes included elsewhere in this Annual Report.
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RemovedMD&A
We apply the five-step revenue recognition model within the scope of ASC Topic 606, Revenue from Contracts with Customers (ASC 606). Under this model, we: (i) identify the contract, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when, or as, a company satisfies a performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service and is the unit of accounting in ASC 606. A contract’s transaction price is allocated among each distinct performance obligation based on relative standalone selling price and recognized as revenue when, or as, the applicable performance obligation is satisfied.
Read it in 10-K 2025-09-26 at sec.gov ↗
RemovedMD&A
The terms of our arrangements include upfront and license fees, R&D services, milestone and other contingent payments for the achievement of defined objectives and certain pre-clinical, clinical, regulatory and sales-based events, as well as royalties on sales of commercialized products. Agreements with certain upfront payments may require deferral of revenue recognition to a future period until we perform the obligations under these agreements. We use the most likely amount method to estimate variable consideration for event-based milestones and other contingent payments. Given the high degree of uncertainty around the occurrence of such events, the event-based milestones and other contingent payments have been fully constrained until any uncertainty associated with these payments is resolved. Revenue from sales-based milestones and royalty payments is recognized at the later of when or as the sales occur or when the related performance obligation has been satisfied or partially satisfied. We continue to re-evaluate the transaction price in each reporting period as contingencies are resolved and other changes in circumstances occur.
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RemovedMD&A
Revenue recognition is subject to uncertainty due to the variable consideration estimates required to be made. These estimates include the level of effort required to satisfy our obligations under our R&D services arrangements. These amounts are estimated at the inception of the services arrangement and are re-evaluated at each reporting period. To accomplish this, we rely on management’s experience, relevant internal data reports and regulatory approvals. The recorded variable consideration is directly sensitive to the estimated inputs made by management used in the calculation. Changes in estimates are accounted for prospectively.
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RemovedMD&A
In response to the discontinuance of zandelisib development with KKC during the fiscal year ended June 30, 2023, we updated our estimated costs to complete each of the performance obligations, which resulted in a higher progress towards completion based on the ratio of costs incurred to date to the total estimated costs and a corresponding decrease in our deferred revenue. Additionally, we recognized revenue related to non-refundable payments for performance obligations that have not commenced and will no longer be initiated. During fiscal year 2024, in regard to the KKC Commercialization Agreement, all deferred revenue had been recognized and all wind-down activities were completed.
Read it in 10-K 2025-09-26 at sec.gov ↗
RewordedMD&A
Net cash used in operating activities of $9.1 million for the fiscal year ended June 30, 2025, of $20.8 million 2026, consisted of our net loss of $15.9 $71.2 million and $4.9 $1.0 million associated with changes in our operating assets and liabilities used in our operations. operations, offset by $63.1 million in noncash charges associated with changes in fair value of our digital assets, noncash asset management fees associated with our digital assets and share-based compensation.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
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. agreement (the Sales Agreement).
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
Subsequent Events, in On July 2025, 22, 2025 (the Closing Date), we closed on a $100.0 million PIPE and issued an aggregate of (i) 23,216,898 shares (the Shares) of our common stock, Common Stock, at an offering price of $3.42 per share and (ii) pre-funded warrants (the Pre-Funded Warrants (together with the common stock, the Securities)), Warrants), to purchase up to an aggregate of 6,022,869 shares of our common stock (the Pre-Funded Warrant Shares) Common Stock, at an offering price of $3.4199 per Pre-Funded Warrant (collectively, the (the Offering).
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
On The evaluation of strategic alternatives concluded with the August 5, 2025, we announced the 2025 commencement of our primary reserve asset and implementation strategy built on a digital asset infrastructure and long-term capital innovation (a Litecoin Treasury Strategy) Strategy through our acquisition of Litecoin (LTC) LTC tokens, reflecting the full deployment of the net proceeds of the PIPE.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
Research and development costs decreased by $12.6 $3.8 million to $0.1 million for the fiscal year ended June 30, 2026, compared to $3.9 million for the fiscal year ended June 30, 2025, compared to $16.6 million for the fiscal year ended June 30, 2024. 2025.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
General and administrative expenses decreased $9.8 $1.5 million to $12.0 million for the fiscal year ended June 30, 2026, compared to $13.5 million for the fiscal year ended June 30, 2025, compared to $23.3 million for the fiscal year ended June 30, 2024. 2025.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
For additional details regarding these agreements, see the section titled Note 8—Other License Agreements and Note 6—Commitments Commitments and Contingencies to our consolidated financial statements and related notes included elsewhere in this Annual Report;
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
In connection with this evaluation, we discontinued the clinical development of voruciclib, voruciclib in oncology, while we continued to conduct certain nonclinical activities related to our drug candidate assets will continue to be conducted by us. assets.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
In connection with these various agreements As consideration of services provided associated with the PIPE, we issued warrants for the purchase of up to 3,070,177 shares of our common stock Common Stock with a weighted-average exercise price of approximately $4.10 per share.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
Litecoin 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.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
Our approach to oncology pre-clinical drug development has been is to evaluate our drug candidates either as stand-alone or in combinations combination with standard-of-care therapies to overcome known resistance mechanisms and address clear medical needs to provide improved patient benefit.
Read it in 10-K 2026-09-28 at sec.gov ↗
RewordedMD&A
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 (a (the Litecoin Treasury Strategy) through our acquisition of Litecoin (LTC) LTC tokens, reflecting the full deployment of the net proceeds of the PIPE. PIPE (as defined below).
Read it in 10-K 2026-09-28 at sec.gov ↗
