NOTE 3 – INVENTORY

No write-offs were recorded during the three months ended March 31, 2026. During the three months ended March 31, 2025, the Company recorded inventory write-offs of approximately $167 thousand due to abnormal loss, net realizable value adjustments, product expiration, idle facility expenses, freight and handling costs, scrap, and wasted material (spoilage). These charges were recorded in Selling, general, and administrative expenses.

We capitalize inventory costs related to our investigational drug, provided that management determines there is a potential alternative use for the inventory in future research and development projects or other purposes. As of March 31, 2026, and December 31, 2025, our consolidated balance sheet reported approximately $392 thousand clinical trial-related inventory, respectively.