Revenue Performance - Total revenue for the third quarter of 2025 was $23.5 million, a 47% increase compared to $16.0 million in the same period last year[4] - Wholesale revenue reached $13.2 million, representing 56% of total revenue and a 156% increase compared to the third quarter of 2024[5] - MusclePharm's revenue increased by 55% year-over-year, with wholesale revenue up 112%[17][26] - Irwin generated total revenue of $6.8 million from August 9 to September 30, 2025, with a gross margin of 32.2%[21][22] - FitLife Brands reported revenue of $23,485,000 for the three months ended September 30, 2025, a 46.7% increase from $15,977,000 in the same period of 2024[39] Profitability Metrics - Net income for the third quarter of 2025 was $0.9 million, down from $2.1 million in the same quarter of 2024, primarily due to acquisition-related expenses and lower gross margin[9] - Adjusted EBITDA for the quarter was $3.8 million, a 6% increase compared to the third quarter of 2024[10] - Gross profit for the three months ended September 30, 2025, was $8,736,000, compared to $7,001,000 for the same period in 2024, reflecting a gross margin improvement[39] - The company experienced a net income of $921,000 for the three months ended September 30, 2025, down from $2,126,000 in the same period of 2024, indicating a decrease of 56.6%[39] - For Q3 2025, the company reported a net income of $921 million, compared to $2,126 million in Q3 2024, reflecting a decrease of 56.6%[44] Cash Flow and Assets - The company reported a net cash provided by operating activities of $7,195,000 for the nine months ended September 30, 2025, compared to $8,653,000 for the same period in 2024, a decline of 16.8%[41] - Total current assets increased to $37,400,000 as of September 30, 2025, compared to $18,143,000 as of December 31, 2024, representing a growth of 106.5%[37] - The company’s cash and cash equivalents decreased to $3,512,000 as of September 30, 2025, from $4,468,000 as of December 31, 2024, a decline of 21.5%[37] Liabilities and Expenses - Total liabilities rose to $68,092,000 as of September 30, 2025, compared to $22,405,000 as of December 31, 2024, indicating a significant increase of 203.5%[37] - The company's interest expense for Q3 2025 was $580 million, an increase from $326 million in Q3 2024, representing a rise of 77.5%[44] - The provision for income taxes in Q3 2025 was $829 million, compared to $770 million in Q3 2024, showing an increase of 7.7%[44] - Non-cash and non-recurring adjustments included $820 million related to mergers and acquisitions for Q3 2025, significantly higher than $59 million in Q3 2024[44] - The company incurred restructuring costs of $184 million in Q3 2024, with no such costs reported in Q3 2025[44] Future Outlook - The Company anticipates continued promotional efforts for MusclePharm, which may affect gross and contribution margins in the future[18] - The company anticipates greater stability in revenue for the Dr. Tobias brand starting in early 2026, following initial revenue declines that began in February 2025[31] Other Financial Metrics - Adjusted EBITDA for Q3 2025 was $3,792 million, up from $3,588 million in Q3 2024, indicating an increase of 5.7%[44] - For the nine months ended September 30, 2025, net income was $4,686 million, down from $6,914 million in the same period of 2024, a decline of 32.0%[44] - Depreciation and amortization expenses for Q3 2025 were $136 million, compared to $22 million in Q3 2024, marking a substantial increase of 518.2%[44] - The foreign exchange gain for Q3 2025 was $43 million, up from $21 million in Q3 2024, reflecting a growth of 104.8%[44] - The company reported a total EBITDA of $2,405 million for Q3 2025, down from $3,204 million in Q3 2024, a decrease of 25.0%[44]

Financial Performance - The company reported net losses of $45.4 million and $45.1 million for the nine months ended September 30, 2025 and 2024, respectively, and a net loss of $58.2 million for the year ended December 31, 2024[124]. - The net loss for the three months ended September 30, 2025, was $16.3 million, compared to a net loss of $14.0 million for the same period in 2024, indicating a decline of $2.3 million[140]. - For the nine months ended September 30, 2025, collaboration and license revenue increased by $25.5 million to $30.1 million from $4.6 million in the same period in 2024[150]. - Total operating expenses for the nine months ended September 30, 2025, were $60.2 million, compared to $51.6 million for the same period in 2024, reflecting an increase of $8.7 million[149]. - The loss from operations for the nine months ended September 30, 2025, was $30.1 million, a decrease of $16.8 million compared to a loss of $47.0 million for the same period in 2024[149]. Cash and Capital Resources - As of September 30, 2025, the company had an accumulated deficit of $429.1 million[124]. - The company had cash and cash equivalents of $103.8 million as of September 30, 2025, which, along with a $17.5 million development milestone received from Gilead, is expected to fund operations into the first quarter of 2027[125]. - Financing activities provided net cash of $51.9 million for the nine months ended September 30, 2025, compared to $21.0 million for the same period in 2024[166]. - The company anticipates substantial future capital requirements to support ongoing research and development activities, with expected continued operating losses and negative cash flows[168]. - The company filed a universal shelf registration statement to register for sale up to $250.0 million of various securities, effective May 8, 2025[160]. Revenue and Expenses - Collaboration and license revenue increased by $16.8 million from $2.3 million for the three months ended September 30, 2024, to $19.1 million for the three months ended September 30, 2025[141]. - Total revenue for the three months ended September 30, 2025, was $19.1 million, compared to $2.3 million for the same period in 2024, reflecting a significant increase[140]. - Research and development expenses rose by $3.6 million from $10.8 million for the three months ended September 30, 2024, to $14.3 million for the same period in 2025[143]. - General and administrative expenses increased by $0.4 million from $6.3 million for the three months ended September 30, 2024, to $6.7 million for the same period in 2025[143]. - General and administrative expenses increased by $4.0 million from $18.3 million in the nine months ended September 30, 2024, to $22.3 million in the same period of 2025[153]. Clinical Development - The company is advancing vilastobart in a Phase 2 clinical trial for MSS mCRC and anticipates reporting additional data in the first half of 2026[120]. - Efarindodekin alfa's Phase 2 trial for advanced solid tumors was initiated in Q3 2025, achieving a $17.5 million milestone under the agreement with Gilead[120]. - The company is actively seeking a partner to develop vilastobart in combination with PD-(L)1 or PD1-VEGF in MSS mCRC and other tumor types[120]. - The company is currently engaged in clinical trials for vilastobart and efarindodekin alfa, with ongoing preclinical development for future product candidates[175]. Market and Operational Risks - The company faces substantial doubt about its ability to continue as a going concern without securing additional capital or implementing other strategies[177]. - The company is subject to market risks, including volatility from economic conditions and potential impacts on capital access[177]. - The company is focused on the costs and timing of future commercialization activities for product candidates that receive regulatory approval[175]. Accounting and Compliance - The company has not generated any revenue from product sales since inception and does not expect to do so for at least the next several years[128]. - The company has incurred significant operating losses and will need substantial additional capital to support ongoing operations and strategies[125]. - The company recognized no restructuring expenses for the nine months ended September 30, 2025, compared to $0.9 million in the same period of 2024[154]. - There have been no material changes to the company's contractual obligations during the nine months ended September 30, 2025[178]. - The company has not made changes to its critical accounting policies, except for estimates related to the fair value of common stock warrant liabilities[179].

Financial Performance - Cash, cash equivalents, and marketable securities as of September 30, 2025, were $125.5 million[6] - Research and development expenses for the three and nine months ended September 30, 2025, were $9.7 million and $32.3 million, respectively, compared to $12.7 million and $24.2 million for the same periods in 2024[6] - General and administrative expenses for the three and nine months ended September 30, 2025, were $4.6 million and $13.8 million, respectively, compared to $4.2 million and $12.0 million for the same periods in 2024[6] - Net loss for the three and nine months ended September 30, 2025, was $12.9 million and $41.5 million, respectively, compared to $14.6 million and $29.4 million for the same periods in 2024[7] - Total operating expenses for the three and nine months ended September 30, 2025, were $14.3 million and $46.1 million, respectively[14] Clinical Trials and Drug Development - The Phase 1 clinical trial of denifanstat and resmetirom is ongoing, with topline data expected in the first half of 2026[3] - Sagimet plans to submit a New Drug Application (NDA) for denifanstat in China for the treatment of moderate-to-severe acne vulgaris[6] - The company has initiated a Phase 1 clinical trial of its second FASN inhibitor, TVB-3567, for acne indication[2] - Sagimet anticipates starting a Phase 2 clinical trial in moderate to severe acne patients in 2026, subject to regulatory consultation[6] - The company has a total of approximately 40 healthy adult participants enrolled in the Phase 1 PK trial of denifanstat and resmetirom[3]

Development Programs - The company is developing CNTY-813 for Type 1 diabetes, with plans to move into IND-enabling studies by the end of 2025 and anticipate IND submission as early as 2026[140] - CNTY-308, a CD19-targeted CAR-iT cell therapy, is progressing towards clinical studies expected to start in 2026 following successful IND-enabling studies[141] Financial Performance - The company has not generated any revenue from product sales and does not expect to do so in the foreseeable future, relying on future collaborations for revenue[158] - Collaboration revenue for the nine months ended September 30, 2025, was $109.2 million, a significant increase from $2.4 million in 2024[176] - Total operating expenses for the three months ended September 30, 2025, were $36.1 million, slightly higher than $35.6 million in 2024[168] - Research and development expenses decreased to $22.5 million for the three months ended September 30, 2025, from $27.2 million in 2024, a reduction of $4.7 million[170] - General and administrative expenses were $6.8 million for the three months ended September 30, 2025, down from $8.4 million in 2024[171] - Interest income decreased to $1.6 million for the three months ended September 30, 2025, compared to $3.3 million in 2024[173] - The accumulated deficit as of September 30, 2025, was $772.7 million[183] Cash Flow and Financing - As of September 30, 2025, the company had cash and cash equivalents of $55.5 million and investments of $77.2 million[183] - The company anticipates needing to raise additional financing in the future to support ongoing operations and clinical trials[146] - Net cash used in operating activities was $87.8 million for the nine months ended September 30, 2025, compared to $85.9 million for the same period in 2024, reflecting a net income of $9.6 million and non-cash charges of $23.1 million[190] - Net cash provided by investing activities increased significantly to $85.1 million for the nine months ended September 30, 2025, from $16.9 million in the same period of 2024, primarily due to the sale of fixed maturity securities of $121.7 million[192] - Net cash provided by financing activities decreased to $0.1 million for the nine months ended September 30, 2025, down from $75.2 million in 2024, which included $17.8 million from an at-the-market capital raise and $56.6 million from PIPE financing[194] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $2.5 million for the nine months ended September 30, 2025, compared to an increase of $6.1 million in 2024[189] - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash totaling $58.7 million, along with investments of $77.2 million[206] Operational Changes - The company completed a workforce reduction of approximately 51% to focus on key clinical programs[143] - Bristol-Myers Squibb terminated its collaboration agreement effective March 12, 2025, which included a $100 million upfront payment and stock purchase[149] - The company is investing in manufacturing capabilities to improve efficiency and scalability of its iPSC cell therapy products[145] - Future capital requirements will depend on various factors, including the costs of clinical trials and regulatory approvals for current and future product candidates[187] - The company has significant contractual obligations totaling $66.4 million, with $7.99 million due within one year and $14.8 million due in the next one to three years[196] - The company experienced a $120.5 million decrease in net operating assets and liabilities during the nine months ended September 30, 2025, primarily due to a decrease in deferred revenue from the termination of a collaboration agreement[190] Economic Factors - Inflation has not had a material effect on the company's financial statements, although it has increased costs related to labor and laboratory consumables[208] - Future disruptions in financial institutions could adversely affect the company's ability to access cash and cash equivalents[207] - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of reduced reporting requirements[198]

Securities Issuance - The Company is issuing securities to Purchasers under an effective registration statement, with a Per Share Purchase Price of $0.91, subject to adjustments[20] - The Common Stock has a par value of $0.00033 per share, and the securities include Common Stock and Common Warrants[10] - The Company agrees to sell an aggregate of $5,278,000 of Shares and Warrants to Purchasers[39] - Each Purchaser will receive a Common Warrant to purchase up to 100% of their Shares plus Pre-Funded Warrant Shares, with an exercise price of $1.00[41] - The exercise price for Pre-Funded Warrants is set at $0.0001[41] - The Company has reserved a sufficient number of shares of Common Stock to issue Shares and Warrant Shares as per the Agreement[123] Transaction Details - The Closing Date for the transaction is set for the first Trading Day following the execution of the Transaction Documents[9] - The Subscription Amount for each Purchaser will be specified on the signature page of the Agreement, paid in United States dollars[32] - The Agreement includes provisions for Exempt Issuance of securities under specific conditions[17] - The Agreement outlines the definitions and terms relevant to the transaction, including "Material Adverse Effect" and "Indebtedness"[19][18] - The Company must deliver Warrant Shares by 4:00 p.m. on the Closing Date for any Notice(s) of Exercise received by 12:00 p.m. on the same day[39] Compliance and Legal Matters - The Company is subject to compliance with the Securities Act of 1933 and the Securities Exchange Act of 1934[30][16] - The Company’s Board of Directors is involved in approving certain transactions and issuances of securities[6] - The Company has filed all required SEC Reports on time, including financial statements that comply with GAAP and fairly present the financial position of the Company[56] - The Company is in compliance with all applicable environmental laws and has received all necessary permits for its operations[63][64] - The Company has not received any notices regarding non-compliance with the Sarbanes-Oxley Act or related regulations[71] Financial Health - As of the latest audited financial statements, there have been no material adverse events or liabilities incurred by the Company[57] - The Company has not issued any capital stock since its most recent periodic report, except for employee stock options and stock purchase plans[54] - The Company has good and marketable title to all real and personal property material to its business, free of significant liens[65] - The Company has no outstanding debts exceeding $50,000, and is not in default with respect to any indebtedness[80] - The Company has filed all required tax returns and paid all material taxes due, with no claims for unpaid taxes in any material amount[81] Risk Management - The Company is insured against losses and risks in amounts deemed prudent and customary for its business[68] - The Company has maintained compliance with all applicable data privacy laws, including GDPR, over the past three years[93] - The Company has not experienced any security breaches affecting its IT Systems and Data, ensuring compliance with privacy and security laws[90] - The Company has taken necessary actions to ensure compliance with listing and maintenance requirements of the trading market[75] Purchaser Obligations - The obligations of the Company are contingent upon the accuracy of representations and warranties made by Purchasers[42] - The Purchasers' obligations are contingent upon the accuracy of representations and warranties made by the Company[43] - The Purchasers are not acquiring the Securities as a result of any general solicitation or advertisement[107] - Each Purchaser's obligations under the Transaction Documents are independent, and no Purchaser is responsible for the obligations of any other Purchaser[152] Post-Transaction Conditions - The Company is prohibited from issuing any shares of Common Stock or Common Stock Equivalents for 45 days after the Closing Date, with exceptions for specific registration statements[126] - For six months after the Closing Date, the Company cannot enter into Variable Rate Transactions involving the issuance of Common Stock or Common Stock Equivalents[127] - The Company must maintain the eligibility of its Common Stock for electronic transfer through established clearing corporations[125] - The Company will take necessary actions to secure the listing of all Shares and Warrant Shares on any new Trading Market it applies to[124] Indemnification and Remedies - The Company will indemnify Purchasers against losses related to breaches of representations and warranties made by the Company[122] - The Company acknowledges that monetary damages may not be adequate compensation for breaches of obligations under the Transaction Documents, allowing for specific performance as a remedy[150] - If any payments made to Purchasers are later invalidated or required to be refunded, the original obligations will be revived as if the payments had not been made[151] Miscellaneous Provisions - The Company acknowledges that confidentiality obligations will terminate upon the issuance of the press release[116] - The parties have mutually reviewed and revised the Transaction Documents, ensuring that ambiguities are not resolved against the drafting party[156] - The Securities Purchase Agreement has been duly executed by authorized signatories of the Company and Purchasers[159]

Financial Performance - For the third quarter of 2025, Sunrise Realty Trust, Inc. reported GAAP net income of $4.05 million, or $0.30 per basic weighted average common share, and Distributable Earnings of $4.12 million, or $0.31 per basic weighted average common share[1][2]. - The company paid a cash dividend of $0.30 per common share, distributing a total of $4.0 million in dividends, which is slightly lower than the Distributable Earnings of $0.31 per share for the same period[4]. - The reconciliation of GAAP net income to Distributable Earnings showed a total of $4.12 million in Distributable Earnings for the quarter, compared to $1.85 million for the same period in 2024, indicating a significant year-over-year increase[16]. - The basic weighted average shares of common stock outstanding for the quarter were 13,247,030, compared to 6,800,500 shares in the same quarter of the previous year[16]. - The company emphasizes the importance of Distributable Earnings as a non-GAAP financial measure to assess overall performance, which is useful for investors[11][15]. Business Strategy - The CEO highlighted the company's focus on originating loans for transitional real estate assets primarily in the Southern United States, aiming for a consistent and stable dividend while diversifying the portfolio[3]. - The company continues to focus on transitional commercial real estate projects that present opportunities for near-term value creation, particularly in rapidly expanding Southern markets[9][10]. Future Outlook - Forward-looking statements indicate that the company anticipates future growth and strategies, although actual results may differ due to various uncertainties[17]. Regulatory Compliance - The company filed its Quarterly Report on Form 10-Q with the SEC on November 13, 2025, providing detailed financial information for investors[5]. - The company encourages stakeholders to monitor its Investor Relations webpage for important updates and disclosures[6].

Financial Performance - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $93.7 million, down from $122.6 million as of December 31, 2024[8]. - Total revenue for the third quarter of 2025 was $0.5 million, a decrease of $0.8 million compared to $1.3 million in the same period of 2024, primarily due to a decline in license royalty revenues[9]. - The company's net loss for Q3 2025 was $7.7 million, or a loss of $0.04 per share, compared to a net loss of $19.7 million, or a loss of $0.10 per share, in Q3 2024[12]. - The company reported a total operating expense of $9.2 million for Q3 2025, down from $22.8 million in Q3 2024[16]. Research and Development - Research and development expenses decreased to $5.8 million in Q3 2025 from $14.3 million in Q3 2024, reflecting cost-saving measures[10]. - The company is developing two product candidates: imdusiran (AB-729) and an oral PD-L1 inhibitor (AB-101) for cHBV treatment[24]. - Arbutus Biopharma is focused on developing treatments for chronic Hepatitis B virus (cHBV) infection, addressing a significant unmet medical need affecting over 250 million people globally[22]. - Approximately 1.1 million people die annually from complications related to cHBV infection, highlighting the urgency for effective therapies[23]. Clinical Trials and Outcomes - 46% of Phase 2a patients (48 out of 105) achieved functional cure or remained off nucleos(t)ide analogue therapy for at least 48 weeks after treatment with imdusiran[14]. - 94% of long-term follow-up patients from the imdusiran trials have remained off all treatment for over 58 weeks[14]. - 100% of HBV DNA positive patients in Phase 1b achieved HBV DNA levels below quantification after 18 weeks of treatment with imdusiran and nucleos(t)ide analogue therapy[5]. - The company showcased data from its hepatitis B virus programs at AASLD 2025, highlighting beneficial clinical outcomes across all evaluated HBV genotypes[4]. Legal Matters - The company is actively pursuing litigation against Moderna and Pfizer/BioNTech regarding its patented LNP technology, with a jury trial scheduled for March 2026[6]. - Arbutus is involved in ongoing patent litigation against Moderna and Pfizer/BioNTech regarding its patented LNP technology used in COVID-19 vaccines[24]. Risks and Uncertainties - The company has made numerous assumptions regarding the effectiveness and timeliness of clinical trials, which are subject to significant uncertainties[26]. - Known risk factors include potential delays and increased costs in clinical trials, which may affect the development of product candidates[26]. - Arbutus plans to reduce its net cash burn and workforce, which may impact its operating results and investor perceptions[26]. - The company emphasizes the importance of regulatory approvals for its product candidates in the clinical development process[26]. - Arbutus' forward-looking statements are subject to various risks and uncertainties, which could lead to materially different outcomes[27]. - The company disclaims any obligation to update forward-looking statements unless required by law[27].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35776 Grace Therapeutics, Inc. (Exact name of registrant as specified in its charter) State of Delaware 98-1359336 (State o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35776 Grace Therapeutics, Inc. (Exact name of registrant as specified in its charter) State of Delaware 98-1359336 (State o ...

Financial Performance - For the three months ended September 30, 2025, net sales increased by 61% to $5.0 million compared to $3.1 million in the same period in 2024[99]. - Net sales for the nine months ended September 30, 2025, were $11,358,835, a 104% increase compared to $5,556,535 for the same period in 2024[127]. - Net loss for the nine months ended September 30, 2025, was $13,123,627, an 11% increase from a net loss of $11,862,973 for the same period in 2024[135]. Cost and Expenses - Cost of sales increased by 67%, from $4,975,277 for the nine months ended September 30, 2024, to $8,311,718 for the same period in 2025, with a decrease in cost of sales as a percentage of sales from 90% to 73%[131]. - Operating expenses rose by $3,693,990, from $12,036,688 in 2024 to $15,730,678 in 2025, driven by increased sales and marketing expenses[133]. - Research and development expenses decreased by $836,382, from $1,811,911 in 2024 to $975,529 in 2025, due to the release of the AL4 product line[133]. - Sales and marketing expenses increased by $3,330,492, from $1,206,807 in 2024 to $4,537,299 in 2025, primarily for marketing campaigns supporting investor relations and the AL4 product line[133]. Cash Flow and Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $3,761,690, down from $4,883,099 as of December 31, 2024[136]. - Cash decreased from $4,883,099 at December 31, 2024, to $3,761,690 at September 30, 2025, a decrease of $1,121,409 or 23% due to debt repayments[142]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $11,190,182, compared to $7,959,212 in 2024, driven by the shift to hard tonneau cover production[143]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $1,067,257, primarily for a deposit on new manufacturing equipment[147]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $11,136,030, an increase from $6,951,879 in 2024, mainly from net proceeds from offerings[148]. - The company has raised net proceeds of $13,358,414 from public and private offerings during the nine months ended September 30, 2025[138]. - The company has an accumulated deficit of $77,617,726 as of September 30, 2025, compared to $64,476,966 as of December 31, 2024[136]. Production and Operations - The company expanded its distribution network to six national distributors, including two new partnerships in the last quarter[99]. - The U.S. production facilities achieved the highest monthly production volume in the company's history[99]. - The company doubled its R&D footprint with a new lease for a larger facility in Ozark, Missouri, to support upcoming product lines[119]. - Worksport announced a 42% increase in national dealer partnerships over the preceding quarter[119]. - The transition to domestic manufacturing is expected to offset higher international shipping costs and improve supply chain resilience[109]. Market and Environmental Considerations - The Worksport SOLIS and COR products are positioned to capitalize on the rising popularity of electric vehicles, targeting consumers interested in clean energy solutions[98]. - The company is actively researching ways to mitigate the environmental impacts of battery recycling and precious metal demand[104]. - The company is closely monitoring the regulatory environment for electric vehicles, which may impact future sales and operations[100]. Balance Sheet Items - Accounts receivable increased by $472,485 at September 30, 2025, attributed to the development of the business-to-business sales channel[144]. - Inventory increased by $1,645,437 at September 30, 2025, as a result of the maturation of the production process[144]. - Prepaid expenses and deposits increased by $865,634 at September 30, 2025, primarily for future strategic marketing and raw materials deposits[145]. - Accounts payable and accrued liabilities increased by $1,477,537 at September 30, 2025, due to an increase in raw materials order volume[146]. Other Financial Information - The company reported net other expenses of $440,066 for the nine months ended September 30, 2025, compared to $407,543 for the same period in 2024[134]. - The company did not have any material off-balance sheet arrangements that could materially affect its financial condition[149]. - As a "smaller reporting company," the company is not required to provide certain market risk disclosures[150].