Financial Performance - Hyperion DeFi generated annual revenue of approximately $1.3 billion, with a daily run-rate of $3-$3.5 million as of October 2025[146]. - For the three months ended September 30, 2025, the company reported revenue of $302,506, which was net staking revenue, with no cost of revenue recorded for this period[184]. - For the nine months ended September 30, 2025, revenue totaled $317,226, compared to $29,243 for the same period in 2024, representing a significant increase[193][194]. - The company had a net loss of $5.5 million for the nine months ended September 30, 2025, compared to a net loss of $29.9 million for the same period in 2024[170]. - The company reported a net loss of $5.5 million for the nine months ended September 30, 2025, compared to a net loss of $29.9 million for the same period in 2024[205]. - Cash and cash equivalents increased to $8.2 million as of September 30, 2025, up from $2.1 million at the end of 2024[203]. - Net cash used in operating activities was approximately $10.7 million for the nine months ended September 30, 2025, compared to $24.0 million in 2024[206]. - Net cash provided by financing activities totaled approximately $82.4 million for the nine months ended September 30, 2025, compared to $16.5 million in 2024[208]. - The company had an accumulated deficit of approximately $200.9 million as of September 30, 2025[205]. - The company has commitments to pay $3.5 million for accounts payable and $0.5 million for non-cancelable operating lease commitments in the next twelve months[209]. Research and Development - Research and development expenses for the three months ended September 30, 2025 totaled $373,854, a decrease of $3.1 million, or 89%, compared to $3.5 million for the same period in 2024[186]. - The company anticipates a decline in research and development expenses after the registration of the Optejet UFD device with the FDA in the coming months[178]. - Research and development expenses decreased by $10.8 million, or 86%, to $1.7 million for the nine months ended September 30, 2025, down from $12.5 million in 2024[195]. Operational Metrics - Daily trading volume on Hyperliquid exceeds $12 billion, with cumulative fees exceeding $700 million since inception[146]. - Cumulative cryptocurrency perpetuals trading volume on Hyperliquid has exceeded $3 trillion since inception[146]. - The Hyperliquid blockchain supports up to 200,000 transactions per second, enabling near-instant trade settlement[142]. - Approximately 99% of Hyperliquid revenues are allocated to the Hyperliquid Assistance Fund, which has cumulatively purchased 34.25 million HYPE tokens valued at $1.45 billion[146]. - The total supply of HYPE is 1 billion, with 31% issued in November 2024 and 38.88% reserved for future community emissions[144]. - As of September 30, 2025, approximately 834,050.16 HYPE were staked directly to the Kinetiq x Hyperion validator[145]. - The Kinetiq x Hyperion validator has over 13 million HYPE delegated as of October 31, 2025, enhancing network stability and security[148]. - The Hyperliquid network implemented HIP-3, allowing users with 500,000 HYPE staked to launch custom on-chain perpetual futures markets[150]. Expenses - General and administrative expenses for the three months ended September 30, 2025 totaled $2.6 million, a decrease of $1.1 million, or 30%, compared to $3.7 million for the same period in 2024[188]. - Selling, general and administrative expenses increased by $1.5 million, or 14%, totaling $12.6 million for the nine months ended September 30, 2025, compared to $11.1 million in 2024[196]. - The company has ceased sales efforts for its ophthalmological products, resulting in limited revenue from such products during the three and nine months ended September 30, 2025[176]. Financing Activities - The company received approximately $50 million in gross proceeds from a private placement, issuing 5,128,205 shares of Series A Convertible Non-Voting Preferred Stock and warrants for up to 30,769,230 shares of common stock at an exercise price of $3.25 per share[160]. - The company entered into an amendment to increase the aggregate offering amount under its at-the-market offering program from $50 million to $100 million[163]. - The company issued warrants to purchase an aggregate of 350,000 shares of common stock at an exercise price of $4.00 per share in connection with the Fourth Amendment to the Loan and Security Agreement[167]. Product Performance - The Optejet UFD demonstrated a 98% success rate in accurate drug delivery upon the first attempt, compared to 50% for traditional eye drops[156]. - Realized gains on HYPE digital tokens were $6.9 million for the nine months ended September 30, 2025, with unrealized gains of $6.4 million[198].

Financial Data and Key Metrics Changes - The company achieved record highs with income from operations of $4.4 million and GAAP net income of $6.6 million, resulting in net income per common share of $0.26 and $0.05 on a basic and diluted basis respectively [18][30][31] - The company started the quarter with $45.5 million invested in HYPE tokens and purchased an additional $20.0 million worth of HYPE, recognizing GAAP accretion of $7.1 million [18][30] - Adjusted EBITDA for the quarter was $8.0 million, reflecting the removal of non-recurring items and stock-based compensation [31][32] Business Line Data and Key Metrics Changes - Revenue from digital assets businesses exceeded $300,000, significantly higher than less than $2,000 in Q3 2024, driven by staking rewards, validator commissions, and the first HOUSE agreement with Credo [19][25] - The company launched its proprietary HYPE Asset Use (HOUSE) platform, generating fee income while allowing clients to unlock unique utility on Hyperliquid [13][14] - The company’s validator received over $3 million tokens delegated from the Hyperliquid Foundation, with a total of 13.2 million HYPE tokens delegated as of October 31, representing 60% month-over-month growth [15][24] Market Data and Key Metrics Changes - Hyperliquid is the leading decentralized perpetuals exchange with over 60% market share as of October 31, 2025, and daily average revenues exceeding $3 million [16][38] - Daily trading volume on Hyperliquid exceeds $12 billion, with cumulative cryptocurrency perpetuals trading volume exceeding $3 trillion since inception [7][16] - Hyperliquid generates annualized revenue of approximately $1.3 billion based on an observed run rate of $3.5 million per day [6][16] Company Strategy and Development Direction - The company is focused on building a strategic HYPE token treasury and expanding its portfolio of DeFi services while developing institutional infrastructure to bridge traditional finance and decentralized finance [4][11][59] - The company aims to create long-term shareholder value through multiple pathways, including direct exposure to HYPE token appreciation and recurring revenue from DeFi services [11][12] - The company is committed to maintaining transparency and accountability while operating at the forefront of financial innovation [28][29] Management's Comments on Operating Environment and Future Outlook - Management believes the macro environment for institutional DeFi adoption is improving, with increasing regulatory clarity and maturing institutional infrastructure [58][59] - The company anticipates continued growth in DeFi-related revenues and expects operating cash flow to turn positive in 2026 [38][40] - Management expressed confidence in the resilience of Hyperliquid's platform during market downturns, highlighting zero downtime during the October 10th liquidation event [42][43] Other Important Information - The company continues to develop its proprietary OptiJet user-filled device and is on track for FDA registration [29][55] - The company has implemented comprehensive risk management frameworks to support its expanded activities in DeFi [28] - The company raised $21.8 million net of expenses via its At the Market Equity Offering Program, demonstrating ongoing fundraising capability [37] Q&A Session Summary Question: How did the crypto liquidation event on October 10th impact your business? - The company reported no operational impact from the event, as it had not taken on leverage positions with HYPE assets, and trading volumes quickly returned to Hyperliquid [42][43] Question: What do you think of recent regulatory developments and their impact on DeFi and your business? - Management views the current regulatory environment as favorable and anticipates continued clarity around crypto and DeFi interactions with existing financial infrastructure [43][44] Question: Are you considering an additional capital raise? - The company is focused on building and scaling its business rather than immediate capital raises, but it remains open to future fundraising opportunities based on market conditions [45][46] Question: Do you see Aster and Lighter as credible threats to Hyperliquid? - Management acknowledges competition but believes Hyperliquid's unique features and innovations position it favorably against new entrants [46][47] Question: Is MNAV a useful metric to you? - The company believes MNAV was relevant in earlier stages of digital asset treasuries but now focuses on a combination of asset value and future cash flows [48][49] Question: What measures do you take to secure your tokens? - The company employs self-custody infrastructure and multi-signature solutions to protect its HYPE assets [50] Question: Why have you not sold the OptiJet? - The company is taking a rational approach to commercialization, focusing on achieving FDA registration before making decisions [55] Question: Are you going to hire more people? - The company aims to remain lean while building a robust revenue-generating business line within DeFi, with future hiring contingent on growth needs [56][57]

Financial Performance (Q3 2025) - Hyperion DeFi's HYPE digital assets totaled $37,954,590[8] - Gross HYPE Holdings reached $77,751,604[8] - Net Asset Value amounted to $74,545,583[8] - The company reported revenue of $302,506 and adjusted revenue of $361,277[8] - Net income was $6,625,582, with $5,830,582 attributable to participating securities[8] - Adjusted EBITDA stood at $7,951,003[8] Hyperliquid (HYPE) Ecosystem - Hyperliquid is ranked as a Top 1 revenue cryptocurrency[10] - Hyperliquid's market cap is approximately $1434 billion, placing it among the top 12 cryptocurrencies[12, 17] - The platform generates an annualized revenue of over $13 billion, with 99% allocated to daily HYPE buybacks[14] - Daily trading volume on Hyperliquid is $12 billion, with daily fees of ~$3 million to Hyperliquid and ~$2 million to applications[17]

Financial Performance - Hyperion DeFi reported a record net income of $6.6 million for Q3 2025, a significant increase from a net loss of $(7.9) million in Q3 2024[4][7]. - Adjusted revenue for Q3 2025 was $361,277, up from $1,625 in Q3 2024, representing a substantial year-over-year growth[4][7]. - Income from operations rose to $4.4 million in Q3 2025, compared to a loss of $(7.3) million in Q3 2024[7]. - Total revenue for the three months ended September 30, 2025, was $302,506, a significant increase from $1,625 in the same period of 2024[28]. - Net income for the three months ended September 30, 2025, was $6,625,582, compared to a net loss of $7,887,853 in the same period of 2024[28]. - The net loss for the nine months ended September 30, 2025, was $5,548,870, a significant improvement compared to a net loss of $29,863,653 for the same period in 2024[39]. - Adjusted EBITDA for the three months ended September 30, 2025, is $7,951,003, derived from Net Income ($6,625,582) adjusted for various non-cash items and unrealized accretion[61]. Revenue Projections - The company anticipates Q4 2025 adjusted revenues between $475,000 and $515,000, indicating a quarter-on-quarter growth of 31% to 43% compared to Q3 2025[11]. Cash Flow and Expenses - The company’s net cash used in operating activities decreased from $(24.0) million for the nine months ended September 30, 2024, to $(10.7) million for the same period in 2025[7]. - Research and development expenses decreased by 89% from $3.5 million in Q3 2024 to $0.4 million in Q3 2025[7]. - Cash flows from operating activities resulted in a net cash used of $10,712,616 for the nine months ended September 30, 2025, compared to $24,010,082 in 2024, indicating improved cash management[39]. Assets and Liabilities - Total assets as of September 30, 2025, were $82,789,907, a substantial increase from $3,667,759 as of December 31, 2024[26]. - Total current liabilities decreased to $4,037,092 as of September 30, 2025, from $16,046,207 as of December 31, 2024[26]. - Stockholders' equity increased to $70,755,032 as of September 30, 2025, compared to a deficit of $13,095,952 as of December 31, 2024[26]. Stock and Financing Activities - The company issued 1,127,100 shares of common stock in a market offering, raising approximately $5.66 million[30]. - The company raised $50,000,000 from the sale of preferred stock and warrants in a private placement during the nine months ended September 30, 2025[39]. - Proceeds from the sale of common stock and warrants in direct offerings amounted to $30,998,213 for the nine months ended September 30, 2025[39]. Token and Digital Assets - The number of HYPE tokens staked at the Kinetiq x Hyperion Validator increased by 60% month-over-month, from 8.2 million as of September 30, 2025, to 13.2 million as of October 31, 2025[4][7]. - The company reported realized gains of $6,942,713 from digital assets for the three months ended September 30, 2025[28]. - The total token count for Gross HYPE Tokens is 1,720,549, with a token price of $45.19 as of September 30, 2025[54]. Non-GAAP Financial Measures - Adjusted Revenue and other non-GAAP financial measures are used by the company to provide a more comprehensive view of its financial performance[43]. - The company emphasizes that Adjusted EBITDA provides additional insights into operating performance, excluding non-cash and unpredictable items[48]. - The company acknowledges material limitations associated with the use of non-GAAP financial measures, which should be considered by investors[49]. - The unrealized staking rewards on HiHYPE are not recognized from a GAAP Revenue perspective, impacting the overall revenue reporting[52].

Core Insights - Hyperliquid is pursuing a SPAC merger with Rorschach I LLC to raise $1 billion, aiming to create a Nasdaq-listed entity that connects decentralized finance (DeFi) with traditional finance (TradFi) [2][3][15] - The funds raised will be allocated for HYPE token buybacks, ecosystem expansion, and strengthening infrastructure [3][7][11] Company Overview - Hyperliquid is recognized as one of the fastest-growing decentralized exchanges (DEXes) and has filed with the U.S. SEC for the SPAC merger [2][4] - The merger will result in Hyperliquid being one of the first decentralized exchanges to have a publicly listed U.S. entity [4][6] Financial Structure - The merger plans to issue up to 160 million shares through a committed equity facility with Chardan Capital Markets [4] - The combined entity will hold approximately 12.6 million HYPE tokens valued at around $470 million and $305 million in cash reserves [5] Strategic Goals - The proceeds from the merger will support token buybacks and ecosystem development, reinforcing Hyperliquid's position as a bridge between institutional finance and decentralized trading [3][5][15] - Hyperliquid Strategies will be established as a digital-asset treasury focused on HYPE, aligning with other public firms integrating crypto assets [7][13] Market Positioning - The SPAC merger is viewed as a significant milestone, indicating institutional markets' readiness to engage with DeFi under a regulated structure [6][12] - If approved, Hyperliquid plans to trade on Nasdaq under the ticker symbol PURR, pending regulatory clearance [6] Expansion Plans - Hyperliquid Labs is expanding its team by hiring engineers for its Singapore base, focusing on high-performance trading infrastructure [8] - The platform aims to enhance its offerings by expanding HyperEVM for DeFi dApp deployment and NFT integrations [10] Token Dynamics - Following the funding announcement, HYPE token experienced an over 8% rally, trading near $38.26 [11] - The project has already invested over $644 million in HYPE buybacks, removing 21.36 million tokens from circulation to stabilize price volatility [11] Future Outlook - The merger could provide Hyperliquid with a regulated market presence, attracting institutional investors seeking compliant exposure to DeFi [12][13] - Analysts suggest that the listing may initiate a new wave of integration between DeFi and TradFi, with tokenized treasuries becoming part of corporate financial strategies [13][14]

Financial Data and Key Metrics Changes - For Q2 2025, the net loss attributable to common stockholders was $8.8 million or $2.5 per share, compared to a net loss of $11.1 million or $16.65 per share for Q2 2024, indicating an improvement in financial performance [23] - Research and development expenses decreased by $3.9 million or 85% to $700,000 in Q2 2025 from $4.6 million in Q2 2024, primarily due to the termination of the CHAPERONE study [24] - General and administrative expenses increased by $3.9 million or 104% to $7.7 million in Q2 2025 from $3.8 million in Q2 2024, driven by higher noncash stock-based compensation and professional fees [24] - Interest expense decreased to $500,000 in Q2 2025 from $700,000 in Q2 2024, reflecting a reduction in outstanding debt [25] - As of June 30, 2025, unrestricted cash and cash equivalents were $7.5 million, up from $2.1 million as of December 31, 2024, indicating improved liquidity [25] Business Line Data and Key Metrics Changes - The company has established a cryptocurrency-based treasury reserve strategy, acquiring over 1.5 million HYPE tokens, which is expected to enhance returns compared to traditional cash reserves [7][8] - The treasury strategy has provided necessary resources for advancing the Gen two Optejet user fill device, which is on track for FDA registration [9] Market Data and Key Metrics Changes - The company is positioned to benefit from the growing adoption of digital currencies and the acceleration of related innovations, as indicated by strong signals from institutional players like BlackRock and JPMorgan [12] - The establishment of a strategic treasury reserve based on the HYPE token differentiates the company from others adopting digital asset treasury strategies [8] Company Strategy and Development Direction - The company is focused on executing a pioneering cryptocurrency treasury reserve strategy that aims to create long-term value for shareholders [26] - There is an emphasis on enhancing operational focus and strategic direction by filling key leadership roles with individuals experienced in digital assets [10] - The company is exploring partnerships within the Hyperliquid ecosystem and other platforms to maximize treasury deployment [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy's potential to generate significant and enduring revenue for shareholders, citing favorable market conditions and regulatory clarity for stablecoins [12] - The company remains committed to completing the FDA registration for the Optejet device and finding a suitable commercialization partner [27] Other Important Information - The company hosted a successful webinar discussing its strategy and the unique aspects of the HYPE token and Hyperliquid platform [9] - The company is actively engaged in initiatives to enhance shareholder value through innovative treasury strategies and ecosystem engagement [26] Q&A Session Summary Question: Why purchase HYPE D shares instead of investing in HYPE directly? - The company provides regulated exposure to the HYPE ecosystem without the need for investors to manage keys or wallets, making it more accessible for public market investors [19] Question: What are the key future catalysts for the company? - Future catalysts include growth in Hyperliquid trading volumes, ecosystem partnerships, and new on-chain primitives that drive demand for hyperliquidity [21]

[Executive Summary and Recent Corporate Developments](index=1&type=section&id=executive-summary-and-recent-corporate-developments) This section outlines Hyperion DeFi's strategic transformation into a DeFi-focused entity, highlighting key achievements and future investment strategies [Overview and Strategic Transformation](index=1&type=section&id=overview-and-strategic-transformation) Hyperion DeFi, formerly Eyenovia, has completed a significant transformation, becoming the first publicly-listed U.S. company to implement DeFi strategies on its treasury, focusing on the HYPE token within the Hyperliquid protocol. The company aims to leverage digital currencies for shareholder value while continuing development of its Optejet UFD - **Hyperion DeFi (formerly Eyenovia, Inc.)** has transformed into a pioneer in leveraging decentralized finance strategies, focusing on the **HYPE token** and **Hyperliquid ecosystem**[1](index=1&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) - The company continues to advance the FDA registration of its **Optejet User Filled Device (UFD)**, anticipated for **September 2025**[1](index=1&type=chunk)[3](index=3&type=chunk) [Key Achievements and Milestones](index=1&type=section&id=key-achievements-and-milestones) Hyperion DeFi successfully closed a $50 million private placement, established a cryptocurrency treasury reserve with over 1.5 million HYPE tokens, appointed a new CIO, launched a co-branded validator with Kinetiq to earn yield, and completed a corporate rebranding - Closed a private placement financing of **$50 million**[4](index=4&type=chunk) - Established a cryptocurrency treasury reserve focused on the **HYPE token**, acquiring more than **1.5 million HYPE** to date[4](index=4&type=chunk) - Appointed cryptocurrency executive **Hyunsu Jung** as Chief Investment Officer and Board member[4](index=4&type=chunk) - Announced a co-branded validator with **Kinetiq**, enabling the Company to earn yield on its **HYPE tokens** and contribute to Hyperliquid blockchain's stability and security[4](index=4&type=chunk) - Implemented a corporate rebranding and name change from **Eyenovia, Inc. to Hyperion DeFi, Inc.**[4](index=4&type=chunk) [Investment Strategy and Future Outlook](index=2&type=section&id=investment-strategy-and-future-outlook) The CIO emphasizes providing investors access to value from staking, DeFi capital deployment, and Hyperliquid growth initiatives. The company plans to deploy additional revenue-generating products, expecting these strategies to benefit Hyperliquid's growth and HYPE token performance - Focus is to provide investors with opportunities in **staking**, **capital deployment in DeFi**, and other unique **Hyperliquid growth initiatives**[5](index=5&type=chunk) - Expects new revenue-generating products and strategies to create powerful tailwinds for **Hyperliquid's continued growth and adoption**, benefiting **HYPE token performance**[5](index=5&type=chunk) [Second Quarter 2025 Financial Performance](index=2&type=section&id=second-quarter-2025-financial-performance) This section details Hyperion DeFi's financial results for Q2 2025, including net loss, operating expenses, and changes in cash and liquidity [Summary of Financial Results](index=2&type=section&id=summary-of-financial-results) For Q2 2025, Hyperion DeFi reported a net loss attributable to common stockholders of $8.8 million, or $2.50 per share, a significant improvement from a net loss of $11.1 million, or $16.65 per share, in Q2 2024 | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (YoY) ($ millions) | | :----- | :------ | :------ | :----------- | | Net Loss Attributable to Common Stockholders | $(8.8) million | $(11.1) million | $(2.3) million decrease | | Net Loss Per Share - Basic and Diluted | $(2.50) | $(16.65) | $(14.15) increase | [Operating Expenses Analysis](index=2&type=section&id=operating-expenses-analysis) Operating expenses showed mixed trends in Q2 2025, with a substantial decrease in R&D expenses offset by a significant increase in G&A expenses [Research and Development Expenses](index=2&type=section&id=research-and-development-expenses) R&D expenses significantly decreased in Q2 2025, primarily due to headcount reductions following the termination of the CHAPERONE study | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (YoY) ($ millions) | | :----- | :------ | :------ | :----------- | | R&D Expenses | $0.7 million | $4.6 million | $(3.9) million (85%) decrease | - The decrease was primarily driven by a reduction in headcount in **Q4 2024** after the termination of the **CHAPERONE study**[7](index=7&type=chunk) [General and Administrative Expenses](index=2&type=section&id=general-and-administrative-expenses) G&A expenses increased in Q2 2025, driven by a one-time stock-based compensation grant and higher professional fees - The increase was due to a **one-time non-cash stock-based compensation inducement grant** to a newly hired executive, and higher professional fees related to strategic options assessment and the **$50 million financing**[8](index=8&type=chunk) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change (YoY) ($ millions) | | :----- | :------ | :------ | :----------- | | G&A Expenses | $7.7 million | $3.8 million | $3.9 million (104%) increase | [Cash and Liquidity](index=2&type=section&id=cash-and-liquidity) Unrestricted cash and cash equivalents significantly increased to $7.5 million as of June 30, 2025, up from $2.1 million at December 31, 2024 | Metric | June 30, 2025 ($ millions) | December 31, 2024 ($ millions) | Change ($ millions) | | :----- | :------------ | :---------------- | :----- | | Unrestricted Cash and Cash Equivalents | $7.5 million | $2.1 million | $5.4 million increase | [Company Profile and Business Segments](index=2&type=section&id=company-profile-and-business-segments) This section describes Hyperion DeFi's dual business model, encompassing its Hyperliquid HYPE token treasury and the development of the Optejet User Filled Device [Hyperion DeFi's Core Business Model](index=2&type=section&id=hyperion-defis-core-business-model) Hyperion DeFi is the first U.S. publicly listed company building a strategic treasury of Hyperliquid's native token, HYPE. It aims to provide shareholders with access to the Hyperliquid ecosystem, benefiting from HYPE's native staking yield and on-chain utility - **Hyperion DeFi** is the **first U.S. publicly listed company** building a **long-term strategic treasury** of **Hyperliquid's native token, HYPE**[10](index=10&type=chunk) - The company focuses on providing shareholders with **simplified access** to the **Hyperliquid ecosystem**, benefiting from **HYPE's native staking yield** and additional revenues from its **on-chain utility**[10](index=10&type=chunk) [Optejet User Filled Device (UFD) Development](index=2&type=section&id=optejet-user-filled-device-ufd-development) The company is also developing its proprietary Optejet UFD, designed for various topical ophthalmic liquids. This device offers ease of use, enhanced safety, and potential for superior compliance, particularly for chronic front-of-the-eye diseases - **Hyperion DeFi** is developing its **proprietary Optejet User Filled Device (UFD)** designed to work with a variety of topical ophthalmic liquids[11](index=11&type=chunk) - The **Optejet UFD** offers **ease of use**, **enhanced safety and tolerability**, and potential for **superior compliance**, especially for chronic front-of-the-eye diseases[11](index=11&type=chunk) [Forward-Looking Statements and Risks](index=2&type=section&id=forward-looking-statements-and-risks) This section provides a cautionary note on forward-looking statements, emphasizing potential material differences in actual results due to various inherent risks [Forward-Looking Statements and Risks Details](index=2&type=section&id=forward-looking-statements-and-risks-details) This section contains forward-looking statements regarding future activities, market opportunities, cryptocurrency treasury strategy viability, clinical trials, and sales growth. It highlights that actual outcomes may differ materially due to various risks, including clinical trial risks, market acceptance, reliance on third parties, intellectual property, regulatory changes, funding needs, and specific cryptocurrency strategy risks detailed in Form 8-K. The company does not undertake to update these statements - All statements, expectations, and assumptions in the press release, except for historical information, are **forward-looking statements**, expressing intentions, beliefs, expectations, strategies, or predictions about future events or conditions[13](index=13&type=chunk) - Actual outcomes and results may differ materially due to numerous factors, including risks of **clinical trials**, **market acceptance**, **reliance on third parties**, **intellectual property risks**, changes in **legal/regulatory environments**, **funding ability**, and risks of the **cryptocurrency strategy** as detailed in **Form 8-K**[13](index=13&type=chunk)[14](index=14&type=chunk) - **Hyperion DeFi** does not undertake any obligation to update any **forward-looking statements**, except as required under applicable securities laws[15](index=15&type=chunk) [Investor Contact Information](index=3&type=section&id=investor-contact-information) This section provides essential contact information for investor relations inquiries [Investor Contact Details](index=3&type=section&id=investor-contact-details) Provides contact details for investor inquiries, specifically Eric Ribner of LifeSci Advisors, LLC - Investor Contact: **Eric Ribner**, **LifeSci Advisors, LLC**, eric@lifesciadvisors.com, **(646) 751-4363**[16](index=16&type=chunk) [Unaudited Condensed Financial Statements](index=4&type=section&id=unaudited-condensed-financial-statements) This section presents the company's unaudited condensed balance sheets and statements of operations for the specified periods [Condensed Balance Sheets](index=4&type=section&id=condensed-balance-sheets) The balance sheet as of June 30, 2025, shows a significant increase in total assets to $55.7 million from $3.7 million at December 31, 2024, primarily driven by the acquisition of $45.5 million in HYPE digital tokens. Total stockholders' equity shifted from a deficiency of $(13.1) million to a positive $37.4 million | Metric | June 30, 2025 ($) | December 31, 2024 ($) | Change ($) | | :-------------------------------- | :------------ | :---------------- | :----- | | Cash and cash equivalents | $7,532,291 | $2,121,463 | +$5,410,828 | | HYPE digital tokens | $45,500,000 | — | +$45,500,000 | | Total Assets | $55,659,636 | $3,667,759 | +$51,991,877 | | Total Current Liabilities | $10,311,094 | $16,046,207 | -$5,735,113 | | Total Liabilities | $18,301,070 | $16,763,711 | +$1,537,359 | | Total Stockholders' Equity (Deficiency) | $37,358,566 | $(13,095,952) | +$50,454,518 | [Condensed Statement of Operations](index=5&type=section&id=condensed-statement-of-operations) For the three months ended June 30, 2025, the company reported no revenue, a net loss of $(8.7) million, and a net loss attributable to common stockholders of $(8.8) million, which is an improvement compared to the net loss of $(11.1) million in the prior year period. The six-month period also showed a reduced net loss | Metric | Three Months Ended June 30, 2025 ($) | Three Months Ended June 30, 2024 ($) | Change (YoY) ($) | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Revenue | $0 | $22,625 | -$22,625 | | Gross Profit (Loss) | $0 | $(467,736) | +$467,736 | | Total Operating Expenses | $8,353,282 | $11,220,608 | -$2,867,326 | | Net Loss | $(8,690,919) | $(11,053,699) | +$2,362,780 | | Net Loss Attributable to Common Stockholders | $(8,788,086) | $(11,053,699) | +$2,265,613 | | Net Loss Per Share - Basic and Diluted | $(2.50) | $(16.65) | +$14.15 | | Metric | Six Months Ended June 30, 2025 ($) | Six Months Ended June 30, 2024 ($) | Change (YoY) ($) | | :-------------------------------- | :----------------------------- | :----------------------------- | :----------- | | Revenue | $14,720 | $27,618 | -$12,898 | | Gross Profit (Loss) | $14,672 | $(665,770) | +$680,442 | | Total Operating Expenses | $11,398,647 | $21,289,398 | -$9,890,751 | | Net Loss | $(12,174,452) | $(21,975,800) | +$9,801,348 | | Net Loss Attributable to Common Stockholders | $(12,271,619) | $(21,975,800) | +$9,704,181 | | Net Loss Per Share - Basic and Diluted | $(4.29) | $(35.26) | +$30.97 |

[Cover Page & Filing Information](index=1&type=section&id=Cover%20Page%20%26%20Filing%20Information) This section provides the basic filing details for the Form 10-Q, including company, filing period, and registrant status - The report is a Form 10-Q for the quarterly period ended June 30, 2025, filed by HYPERION DEFI, INC. (formerly Eyenovia, Inc.)[1](index=1&type=chunk)[2](index=2&type=chunk)[25](index=25&type=chunk) - The registrant is a non-accelerated filer and a smaller reporting company[4](index=4&type=chunk) - As of August 11, 2025, the number of outstanding shares of common stock was **5,694,659**[4](index=4&type=chunk) [Explanatory Note](index=3&type=section&id=EXPLANATORY%20NOTE) This note clarifies that all share and per share amounts have been retroactively adjusted for a reverse stock split - On January 31, 2025, Hyperion DeFi, Inc. effected a **1-for-80 reverse stock split**, retroactively adjusting all share and per share amounts in the financial statements[5](index=5&type=chunk)[29](index=29&type=chunk) [Table of Contents](index=4&type=section&id=TABLE%20OF%20CONTENTS) This section provides an organized listing of all chapters and sections within the report for easy navigation [Part I - Financial Information](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents the company's unaudited condensed financial statements and management's discussion and analysis [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements.) This section presents the unaudited condensed financial statements, including balance sheets, statements of operations, equity, and cash flows, all adjusted for a reverse stock split [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets%20as%20of%20June%2030,%202025%20(Unaudited)%20and%20December%2031,%202024) The balance sheet shows a significant increase in total assets, primarily driven by the acquisition of HYPE digital tokens. Stockholders' equity transitioned from a deficit to a positive balance, reflecting recent financing activities Condensed Balance Sheet Highlights | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Total Assets | $55,659,636 | $3,667,759 | | HYPE digital tokens | $45,500,000 | — | | Total Liabilities | $18,301,070 | $16,763,711 | | Total Stockholders' Equity (Deficiency) | $37,358,566 | $(13,095,952) | - Total Assets increased significantly from **$3.67 million** at December 31, 2024, to **$55.66 million** at June 30, 2025, primarily due to the **$45.5 million** purchase of HYPE digital tokens[10](index=10&type=chunk)[45](index=45&type=chunk) - Stockholders' Equity shifted from a deficit of **$(13.10) million** at December 31, 2024, to a positive **$37.36 million** at June 30, 2025, indicating successful capital raises[10](index=10&type=chunk) [Unaudited Condensed Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) The company reported a net loss for both the three and six months ended June 30, 2025, with a notable decrease in R&D expenses but an increase in SG&A, largely due to non-cash stock-based compensation Condensed Statements of Operations Highlights | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenue | $— | $22,625 | $14,720 | $27,618 | | Gross Profit (Loss) | $— | $(467,736) | $14,672 | $(665,770) | | Research and development | $674,578 | $4,597,173 | $1,347,621 | $9,028,774 | | Selling, general and administrative | $7,678,704 | $3,758,835 | $10,051,026 | $7,396,024 | | Net Loss | $(8,690,919) | $(11,053,699) | $(12,174,452) | $(21,975,800) | | Net Loss Per Share - Basic and Diluted | $(2.50) | $(16.65) | $(4.29) | $(35.26) | - Net loss decreased for both the three-month period (from **$(11.05) million** to **$(8.69) million**) and six-month period (from **$(21.98) million** to **$(12.17) million**) year-over-year[13](index=13&type=chunk) - Research and development expenses significantly decreased by **85%** for the three months and **86%** for the six months ended June 30, 2025, primarily due to layoffs and termination of the CHAPERONE study[13](index=13&type=chunk)[127](index=127&type=chunk)[134](index=134&type=chunk) - Selling, general and administrative expenses increased by **106%** for the three months and **36%** for the six months ended June 30, 2025, largely driven by a **$5.19 million** non-cash stock-based compensation for an inducement grant to a new executive[13](index=13&type=chunk)[46](index=46&type=chunk)[128](index=128&type=chunk)[135](index=135&type=chunk) [Unaudited Condensed Statements of Changes in Stockholders' Equity (Deficiency)](index=7&type=section&id=Unaudited%20Condensed%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20(Deficiency)%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Stockholders' equity transitioned from a deficit to a positive balance, primarily due to significant capital raises through preferred stock and warrant issuances in a private placement, and common stock sales via an 'at-the-market' offering Changes in Stockholders' Equity (Deficiency) Highlights | Metric | January 1, 2025 | June 30, 2025 | | :-------------------------------- | :-------------- | :-------------- | | Total Stockholders' Equity (Deficiency) | $(13,095,952) | $37,358,566 | | Preferred Stock Issued | $— | $544 | | Common Stock Issued | $151 | $485 | | Additional Paid-In Capital | $182,213,889 | $244,841,981 | | Accumulated Deficit | $(195,309,992) | $(207,484,444) | - Total Stockholders' Equity (Deficiency) improved from a deficit of **$(13.10) million** at January 1, 2025, to a positive **$37.36 million** at June 30, 2025[15](index=15&type=chunk) - Additional Paid-In Capital increased by over **$62 million**, largely from the issuance of preferred stock and warrants in a private placement (**$49.37 million**) and common stock in 'at-the-market' offerings (**$8.22 million**)[15](index=15&type=chunk)[16](index=16&type=chunk)[65](index=65&type=chunk)[69](index=69&type=chunk) [Unaudited Condensed Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Cash and cash equivalents significantly increased due to substantial financing activities, primarily from a private placement and 'at-the-market' offerings, which offset cash used in operating and investing activities, including a large purchase of HYPE digital tokens Condensed Statements of Cash Flows Highlights (Six Months Ended June 30) | Cash Flow Activity | 2025 | 2024 | | :-------------------------------- | :-------------- | :-------------- | | Net Cash Used In Operating Activities | $(7,889,797) | $(18,066,228) | | Net Cash Used In Investing Activities | $(45,522,959) | $(159,853) | | Net Cash Provided By Financing Activities | $58,823,584 | $5,677,876 | | Net Increase (Decrease) in Cash and Cash Equivalents | $5,410,828 | $(12,548,205) | | Cash and Cash Equivalents - End of Period | $7,532,291 | $2,300,852 | - Net cash provided by financing activities increased dramatically to **$58.82 million** in H1 2025 from **$5.68 million** in H1 2024, driven by a **$50 million** private placement and **$8.51 million** from 'at-the-market' offerings[20](index=20&type=chunk)[144](index=144&type=chunk) - Net cash used in investing activities surged to **$45.52 million** in H1 2025, primarily due to the **$45.5 million** purchase of HYPE digital tokens[20](index=20&type=chunk)[45](index=45&type=chunk)[143](index=143&type=chunk) - Cash and cash equivalents at the end of the period increased to **$7.53 million** in H1 2025 from **$2.30 million** in H1 2024[20](index=20&type=chunk) [Notes to Unaudited Condensed Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) These notes provide detailed explanations of the company's business, significant accounting policies, financial performance, and capital structure changes, including the new HYPE digital token strategy, liquidity plans, and recent financing activities [Note 1 – Business Organization, Nature of Operations and Basis of Presentation](index=11&type=section&id=Note%201%20%E2%80%93%20Business%20Organization,%20Nature%20of%20Operations%20and%20Basis%20of%20Presentation) Hyperion DeFi, Inc., formerly Eyenovia, Inc., is now building a strategic treasury of HYPE digital tokens to provide shareholders exposure to the Hyperliquid ecosystem, while also continuing development of its Optejet ophthalmic liquid delivery device. The financial statements reflect a 1-for-80 reverse stock split effective January 31, 2025 - Hyperion DeFi, Inc. (formerly Eyenovia, Inc.) is now focused on building a long-term strategic treasury of HYPE digital tokens to provide shareholders with exposure to the Hyperliquid ecosystem[25](index=25&type=chunk)[95](index=95&type=chunk) - The company continues development and registration of its Optejet ophthalmic liquid delivery device[25](index=25&type=chunk)[27](index=27&type=chunk)[95](index=95&type=chunk) - All share and per share amounts presented have been retroactively adjusted for a **1-for-80 reverse stock split** effective January 31, 2025[5](index=5&type=chunk)[29](index=29&type=chunk) [Note 2 – Management's Liquidity Plans](index=12&type=section&id=Note%202%20%E2%80%93%20Management's%20Liquidity%20Plans) The company has a history of recurring net losses and working capital deficits, raising substantial doubt about its ability to continue as a going concern. Management plans to mitigate this through expense reduction, future financings, and potential sales of HYPE digital tokens - As of June 30, 2025, the Company had a working capital deficit of **$923,797** and a net loss of **$12,174,452** for the six months ended June 30, 2025, raising substantial doubt about its going concern ability[32](index=32&type=chunk) - Management's plans to mitigate liquidity concerns include reducing operating expenses upon Optejet UFD registration, raising additional funds through future financings, and potentially selling HYPE digital tokens[33](index=33&type=chunk) [Note 3 – Summary of Significant Accounting Policies](index=12&type=section&id=Note%203%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) The company adopted ASU 2023-08 for digital assets, requiring HYPE digital tokens to be measured at fair value with gains/losses recognized as non-operating income/expense. HYPE tokens are intended as a long-term investment - The Company adopted ASU 2023-08 for digital assets, measuring HYPE digital tokens at fair value and recognizing gains/losses as non-operating income or expense[37](index=37&type=chunk) - HYPE digital tokens are held as a long-term investment[38](index=38&type=chunk) [Note 4 - Net Loss Per Share of Common Stock](index=14&type=section&id=Note%204%20-%20Net%20Loss%20Per%20Share%20of%20Common%20Stock) Net loss per share is calculated using the two-class method, but it has no impact on loss per share as participating securities (Series A Preferred Stock) are not required to absorb losses. Potentially dilutive securities are excluded due to anti-dilutive effects Net Loss Per Share (Basic and Diluted) | Period | Net Loss Attributable to Common Stockholders | Weighted Average Shares Outstanding | Net Loss Per Share | | :--------------------------- | :------------------------------------------- | :---------------------------------- | :------------------- | | 3 Months Ended June 30, 2025 | $(8,788,086) | 3,518,906 | $(2.50) | | 3 Months Ended June 30, 2024 | $(11,053,699) | 664,022 | $(16.65) | | 6 Months Ended June 30, 2025 | $(12,271,619) | 2,857,596 | $(4.29) | | 6 Months Ended June 30, 2024 | $(21,975,800) | 623,303 | $(35.26) | - The two-class method for EPS calculation has no impact on loss per share as preferred stockholders are not required to absorb losses[41](index=41&type=chunk) - As of June 30, 2025, **34,412,515** potentially dilutive shares (warrants, stock options, RSUs) were excluded from diluted EPS calculation due to their anti-dilutive effect[42](index=42&type=chunk) [Note 5 – Prepaid Expenses and Other Current Assets](index=15&type=section&id=Note%205%20%E2%80%93%20Prepaid%20Expenses%20and%20Other%20Current%20Assets) Prepaid expenses and other current assets increased to $967,006 as of June 30, 2025, from $645,736 at December 31, 2024, primarily due to higher prepaid insurance and general and administrative expenses Prepaid Expenses and Other Current Assets | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Prepaid insurance expenses | $532,181 | $148,117 | | Prepaid general and administrative expenses | $152,875 | $61,610 | | Payroll tax receivable | $120,980 | $288,705 | | Total prepaid expenses and other current assets | $967,006 | $645,736 | [Note 6 – HYPE Digital Tokens](index=15&type=section&id=Note%206%20%E2%80%93%20HYPE%20Digital%20Tokens) In June 2025, the company purchased 1,306,452 HYPE digital tokens for $45.5 million, which are recognized at fair value and held as a long-term investment - In June 2025, the Company purchased **1,306,452 HYPE digital tokens** for a total cost of **$45.5 million**[45](index=45&type=chunk) - HYPE digital tokens are recognized at fair value and held as a long-term investment[37](index=37&type=chunk)[38](index=38&type=chunk)[45](index=45&type=chunk) [Note 7 – Accrued Inducement Grant](index=15&type=section&id=Note%207%20%E2%80%93%20Accrued%20Inducement%20Grant) As of June 30, 2025, the company accrued $5.19 million for a fully vested inducement grant of 500,000 common shares to an executive, reflecting the mark-to-market increase in fair value since the contract date - An accrued inducement grant of **$5,190,000** was recorded as of June 30, 2025, for a commitment to issue **500,000 fully vested common shares** to an executive[46](index=46&type=chunk) - The fair value of these shares increased from **$3,485,000** on the contract date (June 17, 2025) to **$5,190,000** by June 30, 2025, due to an increase in common stock price[46](index=46&type=chunk) [Note 8 – Accrued Expenses and Other Current Liabilities](index=15&type=section&id=Note%208%20%E2%80%93%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Accrued expenses and other current liabilities increased to $1.497 million at June 30, 2025, from $1.323 million at December 31, 2024, with new accruals for offering costs, franchise tax, and dividends. The company also terminated a license agreement with Formosa, releasing it from $2.2 million in obligations Accrued Expenses and Other Current Liabilities | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :------------------ | | Accrued licensee reimbursement | $295,711 | $295,711 | | Accrued offering costs | $275,568 | — | | Accrued rework of clinical supply returns | $250,000 | $250,000 | | Accrued professional services | $196,730 | $111,750 | | Accrued dividend | $97,167 | — | | Total accrued expenses and other current liabilities | $1,496,804 | $1,322,674 | - The Company terminated its license agreement with Formosa Pharmaceuticals, Inc. on June 6, 2025, resulting in a release from **$2.2 million** in obligations[48](index=48&type=chunk)[50](index=50&type=chunk) [Note 9 – Notes Payable and Convertible Notes Payable](index=17&type=section&id=Note%209%20%E2%80%93%20Notes%20Payable%20and%20Convertible%20Notes%20Payable) The company restructured its Avenue Loan through multiple amendments in H1 2025. The Fourth Amendment extended maturity to July 2028, reduced interest to 8%, eliminated the conversion option, and resulted in the issuance of warrants to lenders, accounted for as a troubled debt restructuring Notes Payable and Convertible Notes Payable | Category | June 30, 2025 (Net) | December 31, 2024 (Net) | | :-------------------- | :-------------------- | :---------------------- | | Avenue - Note payable | $7,516,735 | $5,212,532 | | Avenue - Convertible note payable | — | $4,736,070 | | Total Net Notes Payable | $7,516,735 | $9,948,602 | - The Fourth Amendment to the Avenue Loan Agreement (June 17, 2025) extended maturity to **July 1, 2028**, reduced the interest rate from **12.0% to 8.0%**, and eliminated the **$10.0 million** conversion option into common stock[60](index=60&type=chunk) - In connection with the Fourth Amendment, the Company issued warrants to lenders to purchase **350,000 shares** of common stock, valued at **$858,270**, which was capitalized as additional debt discount[61](index=61&type=chunk)[62](index=62&type=chunk) - The Fourth Amendment was accounted for as a troubled debt restructuring, establishing a new effective interest rate[62](index=62&type=chunk) [Note 10 – Commitments and Contingencies](index=19&type=section&id=Note%2010%20%E2%80%93%20Commitments%20and%20Contingencies) The company may be involved in legal proceedings in the ordinary course of business, accruing for probable and estimable settlements and expensing legal costs as incurred - The Company records legal costs associated with loss contingencies as incurred and accrues for all probable and estimable settlements[63](index=63&type=chunk) [Note 11 – Stockholders' Equity (Deficiency)](index=19&type=section&id=Note%2011%20%E2%80%93%20Stockholders'%20Equity%20(Deficiency)) Stockholders' equity significantly increased due to a $50 million private placement of Series A Preferred Stock and warrants, and ongoing 'at-the-market' common stock offerings. Stock-based compensation also increased due to an executive inducement grant, and warrant activity included an inducement offer and new issuances - Stockholders approved an amendment to the 2018 Omnibus Stock Incentive Plan, reserving an additional **350,000 shares** of common stock[64](index=64&type=chunk) - The Company received **$2.6 million** and **$8.2 million** in net proceeds from 'at-the-market' common stock offerings for the three and six months ended June 30, 2025, respectively[65](index=65&type=chunk) - Stock-based compensation expense for the six months ended June 30, 2025, was **$5,953,282**, significantly higher than **$1,087,288** in the prior year, primarily due to a **$5.19 million** accrued inducement grant[67](index=67&type=chunk) - On June 17, 2025, the Company closed a private placement, issuing **5,128,205 shares** of Series A Preferred Stock and warrants to purchase **30,769,230 common shares** for **$50 million** gross proceeds[69](index=69&type=chunk) - An inducement offer in Q1 2025 led to the exercise of warrants for **197,118 common shares**, generating **$0.9 million** in net proceeds, and the issuance of additional warrants[75](index=75&type=chunk) [Note 12 - Segment Reporting](index=23&type=section&id=Note%2012%20-%20Segment%20Reporting) The company operates as a single segment (ophthalmic technology) for reporting purposes, with the CEO making operating decisions based on aggregate financial information. Segment assets include cash, digital assets, and other assets - The Company has one operating and reporting segment: ophthalmic technology, focused on the development and commercialization of ophthalmic solutions[80](index=80&type=chunk) Segment Assets (June 30, 2025) | Asset Category | Ophthalmic Technology | Corporate & Other | Total | | :---------------- | :-------------------- | :---------------- | :-------------- | | Cash | $7,532,291 | $— | $7,532,291 | | Digital assets | — | $45,500,000 | $45,500,000 | | All other assets | $2,627,345 | $— | $2,627,345 | | Total Assets | $10,159,636 | $45,500,000 | $55,659,636 | [Note 13 - Subsequent Events](index=27&type=section&id=Note%2013%20-%20Subsequent%20Events) Subsequent to June 30, 2025, the company continued its 'at-the-market' offering, purchased additional HYPE digital tokens, and entered into a separation agreement with its Chief Operating Officer - Subsequent to June 30, 2025, the Company received approximately **$6.6 million** in gross proceeds from the sale of **511,207 common shares** through its 'at-the-market' offering[89](index=89&type=chunk) - The Company purchased approximately **229,320 additional HYPE digital tokens** for **$10.0 million** after June 30, 2025[90](index=90&type=chunk) - On July 1, 2025, the Company entered into a Separation and Release Agreement with its Chief Operating Officer, entitling the COO to **12 months of base salary** and health benefits continuation[91](index=91&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's financial condition, results of operations, strategic shifts, liquidity, and critical accounting estimates [Forward Looking Statements](index=28&type=section&id=Forward%20Looking%20Statements) This section cautions readers that the report contains forward-looking statements subject to risks and uncertainties, including those related to expenses, future revenue, capital requirements, the cryptocurrency treasury strategy, and intellectual property, and advises against undue reliance on these statements - The report contains forward-looking statements regarding expenses, future revenue, capital requirements, the cryptocurrency treasury strategy, and other financial items, which are subject to risks and uncertainties[94](index=94&type=chunk) [Overview](index=28&type=section&id=Overview) Hyperion DeFi, Inc. is transitioning its strategy to build a long-term treasury of HYPE digital tokens to offer shareholders exposure to the Hyperliquid ecosystem, while simultaneously advancing the development and registration of its Optejet ophthalmic liquid delivery device - Hyperion DeFi is the first U.S. publicly listed company building a long-term strategic treasury of HYPE digital tokens to provide shareholders with exposure to the Hyperliquid ecosystem[95](index=95&type=chunk) - The company continues to develop and register its Optejet ophthalmic liquid delivery device[95](index=95&type=chunk) [HYPE Treasury](index=28&type=section&id=HYPE%20Treasury) Hyperion DeFi's HYPE treasury strategy aims to leverage the native token of Hyperliquid, a high-frequency Layer-1 blockchain. HYPE serves multiple purposes, including staking for reduced trading fees, transaction utility on HyperEVM, and collateral in DeFi. The company plans to run a co-branded validator and deploy HYPE into HyperEVM for yield, aiming to accelerate ecosystem growth - HYPE is the native token of Hyperliquid, a decentralized Layer-1 blockchain for high-frequency, transparent trading with **70-millisecond** block times[26](index=26&type=chunk)[96](index=96&type=chunk)[100](index=100&type=chunk) - HYPE's utility includes staking for reduced trading fees, transactions on HyperEVM, and collateral in DeFi applications[100](index=100&type=chunk)[103](index=103&type=chunk) - Hyperliquid's network mechanism allocates approximately **97%** of daily trading fees to autonomously purchase and remove HYPE tokens from circulation[100](index=100&type=chunk) - The Company announced a co-branded Hyperliquid validator, Kinetiq x Hyperion, to directly access HYPE staking yield and support network stability[102](index=102&type=chunk) [The Optejet](index=30&type=section&id=The%20Optejet) The Optejet User Filled Device (UFD) is a proprietary ophthalmic liquid delivery device designed for ease of use, enhanced safety, and superior compliance monitoring, delivering a precise, low-volume spray. The company anticipates registering its second generation based on prior FDA approval experience with MydCombi® - The Optejet UFD is designed for topical ophthalmic liquids, offering ease of use, enhanced safety, and potential for superior compliance monitoring compared to standard eye drops[27](index=27&type=chunk)[105](index=105&type=chunk) - It delivers a precise, low-volume columnar spray (**7-10 microliters**, one-fifth of a typical eye drop) with a **98% first-attempt success rate** in clinical trials[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk) - The company anticipates registering the second generation of the Optejet UFD as a liquid drug delivery device, leveraging experience from the FDA-approved MydCombi®[109](index=109&type=chunk) [Nasdaq Compliance](index=32&type=section&id=Nasdaq%20Compliance) The company received a Nasdaq notice for failing to meet the minimum $2.5 million stockholders' equity requirement. It submitted a compliance plan and believes it has regained compliance with $37.4 million in stockholders' equity as of June 30, 2025 - On April 29, 2025, Nasdaq notified the Company of non-compliance with the **$2.5 million Minimum Equity Requirement**[110](index=110&type=chunk) - The Company submitted a plan to regain compliance and reported **$37.4 million** in total stockholders' equity as of June 30, 2025, which it believes demonstrates compliance[110](index=110&type=chunk) [The Private Placement](index=32&type=section&id=The%20Private%20Placement) On June 20, 2025, the company closed a private placement, raising $50 million in gross proceeds by issuing Series A Preferred Stock and warrants. The net proceeds were used to build a reserve of HYPE tokens, and a registration statement for resale of underlying common stock was filed - On June 20, 2025, the Company received approximately **$50 million** in gross proceeds from a private placement[111](index=111&type=chunk) - The private placement involved the issuance of **5,128,205 shares** of Series A Convertible Non-Voting Preferred Stock and warrants to purchase up to **30,769,230 shares** of common stock[111](index=111&type=chunk) - Net proceeds from the private placement were used to build a reserve of HYPE digital tokens[111](index=111&type=chunk) [Fourth Amendment of the Avenue Loan](index=32&type=section&id=Fourth%20Amendment%20of%20the%20Avenue%20Loan) On June 17, 2025, the company amended its Avenue Loan, extending maturity to July 2028, reducing the interest rate to 8% (half cash, half in kind), eliminating the conversion option, and issuing warrants to lenders. This was accounted for as a troubled debt restructuring - On June 17, 2025, the Fourth Amendment to the Avenue Loan Agreement extended the maturity date to **July 1, 2028**[114](index=114&type=chunk) - The interest rate on the loans was reduced from **12.0% to 8.0%** (payable half in cash and half in kind), and the lenders' option to convert up to **$10.0 million** of loans into common stock was eliminated[114](index=114&type=chunk) - The Company issued warrants to the Lenders to purchase **350,000 shares** of common stock at an exercise price of **$4.00 per share**[114](index=114&type=chunk) [Corporate Information](index=33&type=section&id=Corporate%20Information) The company, formerly Eyenovia, Inc., reincorporated in Delaware in 2014 and changed its name to Hyperion DeFi, Inc. on July 1, 2025. Its principal executive office is in Laguna Hills, CA - The Company was incorporated in Florida on March 12, 2014, reincorporated in Delaware on October 6, 2014, and changed its name to Hyperion DeFi, Inc. on **July 1, 2025**[115](index=115&type=chunk) [Implications of Being a Smaller Reporting Company](index=33&type=section&id=Implications%20of%20Being%20a%20Smaller%20Reporting%20Company) As a 'smaller reporting company,' Hyperion DeFi benefits from scaled disclosures until it exceeds certain market value or revenue thresholds. The company reported net losses of $12.2 million and $22.0 million for the six months ended June 30, 2025 and 2024, respectively, with an accumulated deficit of $207.5 million - The Company is a 'smaller reporting company,' allowing it to take advantage of scaled disclosures[116](index=116&type=chunk) - Net losses were **$12.2 million** and **$22.0 million** for the six months ended June 30, 2025 and 2024, respectively, with an accumulated deficit of approximately **$207.5 million** as of June 30, 2025[117](index=117&type=chunk) [Financial Overview](index=33&type=section&id=Financial%20Overview) This section outlines the company's revenue, cost of revenue, and operating expenses. Revenue from ophthalmological products has ceased. R&D expenses are expected to decline post-Optejet UFD registration, while SG&A expenses are anticipated to decrease in the short term following strategic evaluations and the private placement [Revenue and Cost of Revenue](index=33&type=section&id=Revenue%20and%20Cost%20of%20Revenue) The company has ceased sales efforts for its ophthalmological products, resulting in no revenue from sales in the current period. Cost of sales previously consisted of production costs for these products - The Company has ceased sales efforts for its ophthalmological products and reported no revenue from sales in the current period[118](index=118&type=chunk) [Research and Development Expenses](index=33&type=section&id=Research%20and%20Development%20Expenses) R&D expenses for 2025 primarily consist of internal salaries, benefits, and non-cash stock-based compensation related to the Optejet UFD. These expenses are expected to decline after the device's FDA registration. In 2024, R&D was dominated by contract service expenses for the terminated CHAPERONE study - R&D expenses in 2025 primarily consist of internal salaries, benefits, and non-cash stock-based compensation for the Optejet UFD development[120](index=120&type=chunk) - R&D expenses are anticipated to decline after the Optejet UFD device is registered[120](index=120&type=chunk) - Prior to the termination of the CHAPERONE study in November 2024, R&D expenses were mainly contract service expenses[121](index=121&type=chunk) [Selling, General and Administrative Expenses](index=35&type=section&id=Selling,%20General%20and%20Administrative%20Expenses) SG&A expenses primarily include payroll, legal, insurance, and non-cash stock-based compensation. These expenses are expected to decrease in the short term following the conclusion of strategic option reviews, the private placement, and the establishment of the treasury strategy - SG&A expenses consist primarily of payroll, legal and professional services, insurance, and non-cash stock-based compensation[124](index=124&type=chunk) - SG&A expenses are anticipated to decrease in the short term after the conclusion of strategic option reviews, the private placement, and the establishment of the treasury strategy[124](index=124&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) This section details the financial performance for the three and six months ended June 30, 2025, compared to 2024, highlighting significant changes in revenue, operating expenses (R&D, SG&A), reacquisition of license rights, and other income/expense [Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024](index=35&type=section&id=Three%20Months%20Ended%20June%2030,%202025%20Compared%20with%20Three%20Months%20Ended%20June%2030,%202024) For Q2 2025, the company reported no revenue, a significant decrease in R&D expenses due to layoffs and study termination, and a substantial increase in SG&A expenses driven by a non-cash inducement grant. Other income shifted to a net expense - No revenue or cost of revenue was recorded for the three months ended June 30, 2025, compared to **$22,625** revenue and **$490,361** cost of revenue (including **$0.5 million** inventory write-down) in Q2 2024[125](index=125&type=chunk)[126](index=126&type=chunk) - R&D expenses decreased by **$3.9 million (85%)** to **$0.7 million** in Q2 2025, primarily due to layoffs, impairment of ROU assets, and termination of the CHAPERONE study[127](index=127&type=chunk) - SG&A expenses increased by **$3.9 million (106%)** to **$7.7 million** in Q2 2025, mainly due to a **$5.5 million** non-cash stock-based compensation for an executive inducement grant and increased legal/consulting fees[128](index=128&type=chunk) - Other income (expense) shifted from **$0.6 million** net income in Q2 2024 to **$0.3 million** net expense in Q2 2025, primarily due to interest expense and the absence of a gain from change in fair value of equity consideration[130](index=130&type=chunk) [Six Months Ended June 30, 2025 Compared with Six Months Ended June 30, 2024](index=36&type=section&id=Six%20Months%20Ended%20June%2030,%202025%20Compared%20with%20Six%20Months%20Ended%20June%2030,%202024) For H1 2025, revenue remained minimal, while R&D expenses significantly decreased due to operational restructuring. SG&A expenses increased due to non-cash stock-based compensation and professional fees related to strategic alternatives. Reacquisition of license rights had no cost in 2025, and other income/expense remained a net expense - Revenue for H1 2025 was **$14,720**, with minimal cost of revenue, compared to **$27,618** revenue and **$693,388** cost of revenue (including **$0.7 million** inventory write-down) in H1 2024[131](index=131&type=chunk)[133](index=133&type=chunk) - R&D expenses decreased by **$7.7 million (86%)** to **$1.3 million** in H1 2025, driven by layoffs, termination of the CHAPERONE study, and reduced facilities/depreciation expenses[134](index=134&type=chunk) - SG&A expenses increased by **$2.7 million (36%)** to **$10.1 million** in H1 2025, primarily due to a **$5.7 million** non-cash stock-based compensation for an executive inducement grant and increased professional fees related to strategic alternatives[135](index=135&type=chunk) - Reacquisition of license rights was **$0** in H1 2025, compared to **$4.9 million** in H1 2024 (including **$3.0 million** settled in common stock to Bausch + Lomb)[136](index=136&type=chunk) - Net other expense for H1 2025 was **$0.8 million**, primarily from **$1.1 million** interest expense, partially offset by other income and a gain on debt extinguishment[137](index=137&type=chunk) [Liquidity and Going Concern](index=40&type=section&id=Liquidity%20and%20Going%20Concern) The company has historically relied on equity and debt financing due to negative operating cash flows and recurring net losses. While cash and equity improved significantly by June 30, 2025, a working capital deficit persists. Management plans to address going concern issues through expense reduction, further financing, and potential HYPE token sales Liquidity Metrics | Metric | June 30, 2025 | December 31, 2024 | | :---------------------- | :-------------- | :------------------ | | Cash and Cash Equivalents | $7,532,291 | $2,121,463 | | Working (Deficit) Capital | $(923,797) | $(13,279,008) | | Notes Payable (Gross) | $8,170,886 | $10,740,402 | - The Company has a history of negative cash flows from operations and recurring net losses, with an accumulated deficit of **$207.5 million** as of June 30, 2025[140](index=140&type=chunk)[141](index=141&type=chunk) - Cash and cash equivalents increased to **$7.5 million**, and HYPE digital tokens were valued at **$45.5 million** as of June 30, 2025, significantly improving the financial position compared to December 31, 2024[141](index=141&type=chunk) - Net cash used in operating activities decreased to **$7.9 million** in H1 2025 from **$18.1 million** in H1 2024[142](index=142&type=chunk) - Management's plans to alleviate going concern doubts include reducing operating expenses, raising additional funds, and potentially selling HYPE digital tokens[33](index=33&type=chunk) [Risks and Uncertainties](index=42&type=section&id=Risks%20and%20Uncertainties) The company acknowledges risks from global conflicts (Russia-Ukraine, Middle East, India-Pakistan) which could impact material prices and adversely affect business operations - Global conflicts (Russia-Ukraine, Middle East, India-Pakistan) could lead to increased material prices, adversely affecting the company's business and operations[146](index=146&type=chunk) [Off-Balance Sheet Arrangements](index=42&type=section&id=Off-Balance%20Sheet%20Arrangements) The company has no material off-balance sheet arrangements that would significantly affect its financial condition or results of operations - The Company has no material off-balance sheet arrangements[147](index=147&type=chunk) [Critical Accounting Estimates](index=42&type=section&id=Critical%20Accounting%20Estimates) The company's financial statements rely on management's estimates, particularly for highly uncertain matters, where changes could materially impact financial condition or results. These estimates are evaluated continuously - Critical accounting estimates involve assumptions about highly uncertain matters, and changes in these estimates could materially impact financial condition or results of operations[148](index=148&type=chunk)[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) As a smaller reporting company, Hyperion DeFi, Inc. is not required to provide quantitative and qualitative disclosures about market risk - As a smaller reporting company, Hyperion DeFi, Inc. is exempt from providing quantitative and qualitative disclosures about market risk[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025, due to material weaknesses in accounting for complex, non-routine transactions (equity shares, debt modification) and identifying/recording ROU asset impairments. Despite this, the financial statements are believed to fairly present the financial position - As of June 30, 2025, disclosure controls and procedures were deemed not effective due to material weaknesses[153](index=153&type=chunk) - Material weaknesses include failures to properly design and implement effective controls over accounting for significant and complex non-routine transactions (equity shares, debt modification) and identifying/recording impairments of Right-of-Use (ROU) assets[157](index=157&type=chunk) - Despite material weaknesses, management believes the financial statements fairly present the company's financial position, results of operations, and cash flows[155](index=155&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[156](index=156&type=chunk) [Part II - Other Information](index=44&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part covers legal proceedings, risk factors, equity sales, defaults, and other miscellaneous information [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings.) The company is not currently a party to any material legal proceedings, though it may become involved in ordinary course litigation, which could have adverse impacts regardless of the outcome - The Company is not currently a party to any material legal proceedings[159](index=159&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors.) This section outlines significant risks, particularly those related to the company's new HYPE digital token treasury strategy. Key risks include HYPE price volatility, regulatory uncertainty for digital assets, enhanced regulatory oversight due to the HYPE strategy, potential classification of HYPE as a 'security,' and risks associated with digital asset custody and smart contracts. Delisting from Nasdaq is also a concern - HYPE is a highly volatile asset, and fluctuations in its price may significantly influence the company's financial results and the market price of its listed securities[161](index=161&type=chunk)[162](index=162&type=chunk) - HYPE and other digital assets are subject to significant legal and regulatory uncertainty, with potential for new laws or interpretations that could adversely affect HYPE's price or the company's ability to own/transfer it[163](index=163&type=chunk)[164](index=164&type=chunk)[167](index=167&type=chunk) - The HYPE treasury strategy subjects the company to enhanced regulatory oversight, including potential scrutiny under anti-money laundering, sanctions, and money services regulations[168](index=168&type=chunk)[169](index=169&type=chunk) - There is a risk that HYPE could be classified as a 'security,' which would subject the company to additional regulation (e.g., Investment Company Act) and could materially impact business operations[177](index=177&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk)[184](index=184&type=chunk) - Risks related to the custody of HYPE include loss or destruction of private keys, cyberattacks, smart contract vulnerabilities, and potential treatment as a general unsecured creditor in custodian insolvency[186](index=186&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - The adoption of ASU 2023-08 requires measuring HYPE at fair value, recognizing gains/losses in net income, which will increase volatility in reported earnings and could subject the company to the corporate alternative minimum tax (CAMT)[191](index=191&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) - Delisting from Nasdaq could adversely affect the price and liquidity of common stock, deter broker-dealers, and increase volatility[202](index=202&type=chunk)[204](index=204&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) The company reported no unregistered sales of equity securities and no purchases of equity securities by the issuer or affiliated purchasers during the period - No unregistered sales of equity securities or purchases of equity securities by the issuer and affiliated purchasers were reported[207](index=207&type=chunk)[208](index=208&type=chunk) [Item 3. Defaults Upon Senior Securities](index=59&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) This item is not applicable to the company for the reporting period - This item is not applicable[209](index=209&type=chunk) [Item 4. Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company for the reporting period - This item is not applicable[210](index=210&type=chunk) [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information.) No directors, officers, or the company adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the six months ended June 30, 2025 - No directors, officers, or the Company adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the six months ended June 30, 2025[211](index=211&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, warrant forms, loan agreements, employment agreements, and certifications, indicating whether they are incorporated by reference or filed herewith - The exhibits include various corporate documents such as Certificates of Incorporation, Bylaws, Warrant Forms, Loan and Security Agreements, Securities Purchase Agreement, Registration Rights Agreement, and Executive Employment Agreements[212](index=212&type=chunk) - Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed herewith[213](index=213&type=chunk) [Signatures](index=63&type=section&id=SIGNATURES) This section contains the official signatures, confirming the accuracy and completeness of the report as filed by the company's executive officers - The report is signed by Michael Rowe, Chief Executive Officer (Principal Executive Officer) of HYPERION DEFI, INC. on **August 13, 2025**[218](index=218&type=chunk)[219](index=219&type=chunk)

Summary of Eyenovia (Hyperion DeFi) Conference Call - July 29, 2025 Company Overview - The company transitioned from Eyenovia to Hyperion DeFi, focusing on decentralized finance (DeFi) and innovative financial infrastructure [2][3] - Hyperion DeFi is listed as HypeD on the Nasdaq exchange and aims to leverage its technology to create value within the Hyperliquid ecosystem [10] Strategic Transformation - The transformation was driven by the need to secure capital for the development of the Optejet device amidst challenging conditions in the biopharmaceutical market [4][5] - The company aims to combine the benefits of being a public company with decentralized finance opportunities [5] Financial Performance and Metrics - Hyperion DeFi has purchased over 1,500,000 HYPE tokens at an average price of around $36, with a recent purchase of over 100,000 tokens [10] - Daily revenue from Hyperliquid has increased from $2-3 million to $4-5 million, with 97% of this revenue used for HYPE token buybacks [14][15] - The assistance fund has purchased approximately 27,500,000 HYPE tokens, valued at around $1.2 billion [15] Hyperliquid Ecosystem - Hyperliquid is a layer one blockchain optimized for high-frequency transparent finance, built on an existing revenue-generating product [13] - The platform has generated over $400 million in fees since the beginning of the year, with significant growth in trading volume [16] - Hyperion DeFi's treasury position allows it to participate in the economics of Hyperliquid, aligning its success with the network's growth [19] Future Growth and Opportunities - The company is exploring partnerships and strategies to enhance its treasury and generate additional returns [20][30] - Hyperion DeFi plans to pilot the iHype liquid staking token, which will enable passive staking yields and liquidity [20][28] - The integration of Phantom wallet is expected to drive further user adoption and trading volume on Hyperliquid [30] Investment Proposition - HYPE tokens are not broadly listed on US regulated exchanges, making Hyperion DeFi a vehicle for public market investors to gain exposure to the ecosystem [21] - The company emphasizes a long-term vision, focusing on building relationships and generating revenue through various strategies [52][53] Risk Management - Hyperion DeFi is cautious about capital raising, prioritizing organic growth and strategic accumulation of HYPE tokens [54][73] - The management is focused on maintaining a robust strategy to mitigate risks associated with market volatility [52][70] Conclusion - Hyperion DeFi positions itself as a growth technology company in the decentralized finance space, leveraging its treasury and strategic partnerships to enhance shareholder value [37][38] - The company aims to provide a seamless investment opportunity for those interested in the evolving landscape of decentralized finance [38]

Core Viewpoint - The company is rebranding to Hyperion DeFi, Inc. and will begin trading under the ticker symbol "HYPD" on Nasdaq effective July 3, 2025, reflecting its focus on a cryptocurrency treasury reserve strategy centered around the HYPE token [2][3][4]. Company Overview - Hyperion DeFi, Inc. is the first publicly listed U.S. company to build a strategic treasury of HYPE, the native token of the Hyperliquid protocol [2][6]. - The company aims to provide shareholders with simplified access to the Hyperliquid ecosystem, which is recognized as one of the fastest-growing and highest revenue-generating blockchains globally [6]. Strategic Initiatives - The name change signifies a new vision for the company, emphasizing its potential to become the largest holder of the HYPE token and a leader in cryptocurrency-based treasury assets [4]. - The company has launched the Kinetiq x Hyperion validator, which is now live, and has begun staking its HYPE holdings to generate yield [4][6]. Product Development - Hyperion DeFi is also developing the Optejet User Filled Device (UFD), designed for various topical ophthalmic liquids, which aims to improve treatment compliance and outcomes for patients with chronic eye diseases [7].