Financial Analysis

11. Commitments and contingencies Contract commitments The Company enters into contracts in the normal course of business with third-party contract research organizations, contract development and manufacturing organizations and other service providers and vendors. These contracts generally provide for termination on notice and, therefore, are cancellable contracts and not considered contractual obligations and commitments. Contingencies From time to time, the Company may become subject to claims and litigation arising in the ordinary course of business. The Company is not a party to any material legal proceedings, nor is it aware of any material pending or threatened litigation.

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"10. Income taxes Loss before provision for income taxes consisted of the following: Year Ended June 30, (US$000) 2026 2025 United States $ ( 45,335 ) $ ( 37,183 ) International ( 211 ) ( 734 ) Total $ ( 45,546 ) $ ( 37,917 ) The tax effects of significant items comprising the Companys deferred taxes are as follows: June 30, (US$000) 2026 2025 Deferred tax assets: Net operating losses $ 23,500 $ 16,473 Other 129 110 Lease liability 160 178 Fixed assets 5 Share-based compensation 1,302 470 Intangible assets 192 200 Section 174 Capitalization 5,535 8,103 Gross deferred tax assets 30,823 25,534 Less valuation allowance ( 30,142 ) ( 25,044 ) Deferred tax liabilities: Right-of-use assets ( 146 ) ( 181 ) Fixed assets ( 5 ) Prepaid expenses ( 329 ) ( 123 ) Unrealized foreign exchange gains and losses ( 206 ) ( 181 ) Total deferred tax liabilities ( 681 ) ( 490 ) Net deferred taxes $ $ ASC 740 requires that the tax benefit of net operating losses, temporary differences and credit carryforwards be recorded as an asset to the extent that management assesses that realization is ""more likely than not."" Realization of the future tax benefits is dependent on the Company's ability to generate sufficient taxable income within the carryforward period. Because of the Company's recent history of operating losses, management believes that recognition of the deferred tax assets arising from the above-mentioned future tax benefits is currently not likely to be realized and, accordingly, has prov …

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8. Leases The Company has entered into operating leases for offices in Hayward, California and Los Angeles, California. On February 1, 2025, the Company entered into a lease agreement to extend the lease in Hayward through to December 2027. Similarly, on November 14, 2025, the Company entered into a lease agreement to extend the lease in Los Angeles through to January 2028. Both extensions were recognized as a modification to the existing leases. The lease modifications were not accounted for as a separate contract and instead the existing operating lease right-of-use assets and liabilities were remeasured during the period under agreements that expire in 2027 and 2028. Both leases contain options to extend for additional renewal periods. The leases require the Company to pay utilities, insurance, taxes, and other operating expenses. The Companys lease does not contain any residual value guarantees or material restrictive covenants. The tables below show the changes during the year ended June 30, 2026: (US$000) Operating lease right- of-use assets Balance at July 1, 2025 $ 860 Re-measurement during the period 256 Amortization of right of use asset ( 423 ) Operating lease right-of-use asset at June 30, 2026 $ 693 (US$000) Operating lease liabilities Balance at July 1, 2025 $ 849 Re-measurement during the period 256 Principal payments on operating lease liabilities ( 343 ) Operating lease liabilities at June 30, 2026 762 Less: non-current portion ( 266 ) Current portion at June …

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Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures , which requires disclosures about significant segment expenses and additional interim disclosure requirements. The standard also requires a single reportable segment company to provide all disclosures required by Topic 280. The Company adopted ASU 2023-07 during the year ended June 30, 2025. See Note 12 for the segment disclosures as required by Topic 280, as amended by ASU 2023-07. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands the disclosures required for income taxes. This includes the disclosure of specific categories and greater disaggregation within the income tax rate reconciliation as well as disclosure of disaggregated income taxes paid by significant jurisdiction. This ASU is effective for fiscal years beginning after December 15, 2024. The Company adopted the standard on a prospective basis during the year ended June 30, 2026. See Note 10 - Income Taxes for further information. In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06) which amends the guidance in ASC 350-40, IntangiblesGoodwill and OtherInternal-Use Softwa …

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"13. Related party transactions During the years ended June 30, 2026 and 2025, the Company did not enter into any related party transactions other than as set forth below or equity and other compensation, termination, change in control and other arrangements, which are described or incorporated by reference in Part III of this Annual Report on Form 10-K. On September 26, 2024, Montanova Capital, on behalf of itself and each of its related funds, entered into a waiver with the Company, pursuant to which, among other things (i) Montanova Capital waived the 19.99% beneficial ownership limitation set forth in each of the warrants held by the Montanova Funds, and (ii) Montanova Capital and the Company agreed that Montanova Capital will not be permitted to complete an exercise of the warrants held by the Montanova Funds to the extent the beneficial ownership (calculated as provided in the applicable warrants) of Montanova Capital in the Company following such exercise would exceed 49.9%. On March 25, 2025, the Company entered into an Underwriting Agreement with Leerink Partners LLC and TD Securities (USA) LLC, as representatives of the several underwriters named therein, pursuant to which the Company agreed to issue and sell, in an underwritten offering by us (the Underwritten Offering), (i) 1,143,000 at a purchase price to investors of $ 13.00 per share, and (ii) pre-funded warrants to purchase 300,000 shares of Common Stock at an exercise price of $ 0.0001 per share at a purchase …

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12. Segment reporting The Companys operating segments are components of the Company for which separate discrete financial information is available and is evaluated by the Companys chief operating decision maker (CODM), the Chief Executive Officer , in deciding how to allocate resources and assess performance. The Companys CODM views the Companys operations and manages its business as a single reportable segment with a single operating segment, which is the business of discovery and development of therapeutic agents in the treatment of genetic disorders. While the Company has subsidiaries in several geographic regions, there are no standalone operations; rather, all R&D activities are supported by a single corporate team. The determination of a single reportable segment is consistent with the consolidated financial information available and regularly reviewed by the Companys CODM. The Company manages R&D activities and operating expenses on a consolidated basis. The CODM uses net loss in making decisions regarding resource allocation and evaluating financial performance, which is also reported on the consolidated statements of operations and comprehensive loss. The measure of segment assets is reported on the consolidated balance sheets as total assets. The following table represents the format for reporting the results of the Companys reportable segment: (US$000) June 30, Operating Expenses 2026 2025 Research and development $ 23,388 $ 18,332 General and administrativ …

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2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The Companys consolidated financial statements contained in this report have been prepared in accordance with generally accepted accounting principles in the U.S. (GAAP) and pursuant to the rules and regulations of the SEC. Reference is frequently made herein to the Financial Accounting Standards Board (the FASB) Accounting Standards Codification (ASC). This is the source of authoritative GAAP recognized by the FASB to be applied to non-governmental entities. Principles of Consolidation The consolidated financial statements include the Companys accounts and the accounts of its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Use of Estimates The preparation of the Companys consolidated financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the Companys consolidated financial statements and accompanying notes. The most significant estimates and assumptions in the Companys consolidated financial statements relate to accrued research and development expense and the valuation of equity-based instruments issued for other than cash. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results o …

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9. Stockholders equity Preferred Stock On December 6, 2024, the stockholders of the Company approved an amendment (the Amendment) to the Companys Amended and Restated Certificate of Incorporation, as amended, to authorize the issuance of 5,000,000 shares of preferred stock, par value $ 0.0001 . As of June 30, 2026, there were no preferred shares issued and outstanding. Common Stock On December 8, 2021, the stockholders of the Company approved an amendment (the Charter Amendment) to the Companys Amended and Restated Certificate of Incorporation to increase the total number of authorized shares of common stock of the Company from 10,000,000 to 40,000,000 , which became effective on December 17, 2021. On December 7, 2022, the stockholders of the Company approved another amendment to the Companys Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 40,000,000 to 160,000,000 . The Charter Amendment was filed with the Secretary of State of the State of Delaware and became effective December 9, 2022. On July 26, 2023, the Company effected a 1-for-17 reverse stock split (the Reverse Stock Split). On October 11, 2024, the Company entered into the Sales Agreement with the Agent. Pursuant to the terms of the Sales Agreement, the Company may offer and sell shares of the Companys common stock having an aggregate offering amount of up to $ 75 million from time to time through the Agent. The Agent will use its commercially reason …

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14. Subsequent events None.

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