[10-Q] Citius Pharmaceuticals Inc. Common Quarterly Earnings Report

Rhea-AI Filing Summary

Citius Pharmaceuticals reported no revenues for the periods presented while preparing for the commercial launch of LYMPHIR, an FDA-approved immunotherapy the company expects to launch in the fourth quarter of 2025. The company had $6.09 million in cash and cash equivalents and $17.21 million of inventory (finished goods and work‑in‑process) at June 30, 2025, and total assets of $127.68 million. For the nine months ended June 30, 2025 the company recorded a net loss of $30.99 million and used $14.67 million of cash in operating activities. Net loss per share for the nine months was $3.27 on a weighted average of 9.02 million shares.

Liquidity remains a material issue: working capital was negative roughly $27.2 million at June 30, 2025 and management states available cash is expected to fund operations only through September 2025, creating substantial doubt about the company’s ability to continue as a going concern. Significant near‑term obligations include a $28.4 million license payable and an outstanding Milestone balance to Dr. Reddy’s of $22.5 million (partially deferred by agreement). The company raised net financing proceeds of approximately $16.5 million during the period, entered distribution arrangements to support LYMPHIR commercialization, and subsequently regained Nasdaq compliance.

Positive

• FDA approval of LYMPHIR and preparations for a U.S. commercial launch expected in Q4 2025, including distribution agreements with Cardinal Health and Cencora.
• Inventory built to support commercialization: $17.21 million of finished goods and work in process related to LYMPHIR at June 30, 2025.
• Net financing proceeds of approximately $16.51 million during the period, including registered direct offerings and at‑the‑market sales, which extended the cash runway.
• Regained Nasdaq compliance with the minimum bid price requirement (subsequent event noted).

Negative

• Substantial doubt about going concern: management estimates cash resources fund operations only through September 2025.
• Negative working capital of ~ $27.2 million at June 30, 2025, signalling near‑term liquidity pressure.
• Large contractual obligations: license payable of $28.4 million and an outstanding Dr. Reddy’s milestone balance of $22.5 million (partially deferred).
• Significant operating losses: net loss of $30.99 million for the nine months ended June 30, 2025 and continued cash burn.
• High‑cost, short‑term debt: note payable of $1.0 million bearing 15% interest due December 2, 2025, plus other near‑term payment obligations.

Insights

Financial Analyst

TL;DR: FDA approval and launch readiness offset by tight cash runway and material milestone liabilities — mixed near-term outlook.

Citius has moved from development toward commercialization with FDA approval for LYMPHIR and inventory build-up of $17.21M, plus distribution agreements to support a Q4 2025 U.S. launch. However, operating losses of $30.99M YTD and negative working capital of ~$27.2M amplify funding needs. Management estimates cash suffices only through September 2025 absent additional financing. The company generated net financing proceeds (~$16.5M) during the period, which partially extended runway but does not eliminate large license and milestone payables. This is an execution and financing story: commercialization could unlock revenue, but near-term liquidity and milestone timing are the primary value drivers and risks.

Risk Analyst

TL;DR: Significant liquidity and contractual obligations create material going‑concern risk despite commercialization steps.

The filing expressly states substantial doubt about the company’s ability to continue as a going concern. Key risk indicators include negative working capital (~$27.2M), cash of $6.09M and an estimated cash runway to September 2025. Material contractual obligations include a $28.4M license payable, a remaining $22.5M milestone to Dr. Reddy’s (partially deferred by agreement), and minimum manufacturing purchase commitments (~$18.3M). The company also has a short‑term note payable due December 2, 2025 with 15% interest. These factors elevate liquidity and execution risk in the next 3–6 months unless additional capital or alternative arrangements are secured.

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: June 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 001-38174

Citius Pharmaceuticals, Inc.

(Exact name of registrant as specified in its charter)

Nevada		27-3425913
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

11 Commerce Drive, First Floor, Cranford, NJ		07016
(Address of principal executive offices)		(Zip Code)

(908) 967-6677

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common stock, $0.001 par value		CTXR		Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 11, 2025, there were 17,012,191 shares of common stock, $0.001 par value, of the registrant issued and outstanding.

Citius Pharmaceuticals, Inc.

FORM 10-Q

TABLE OF CONTENTS

June 30, 2025

		Page
PART I. FINANCIAL INFORMATION:		1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets at June 30, 2025 and September 30, 2024	1
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended June 30, 2025 and 2024	2
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Nine Months Ended June 30, 2025 and 2024	3
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended June 30, 2025 and 2024	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25
Item 4.	Controls and Procedures	25
PART II. OTHER INFORMATION		26
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	27
	SIGNATURES	29

i

EXPLANATORY NOTE

In this Quarterly Report on Form 10-Q, and unless the context otherwise requires, the “Company,” “we,” “us,” and “our” refer to Citius Pharmaceuticals, Inc. (“Citius Pharma”) and its wholly-owned subsidiary Leonard-Meron Biosciences, Inc., and its majority-owned subsidiaries, Citius Oncology, Inc. (Nasdaq: CTOR) (“Citius Oncology”) and NoveCite, Inc., taken as a whole.

Mino-Lok® is our registered trademark and LYMPHIR^TM is a registered trademark of Citius Oncology. All other trade names, trademarks and service marks appearing in this quarterly report are the property of their respective owners. We have assumed that the reader understands that all such terms are source-indicating. Accordingly, such terms, when first mentioned in this report, appear with the trade name, trademark or service mark notice and then throughout the remainder of this report without trade name, trademark or service mark notices for convenience only and should not be construed as being used in a descriptive or generic sense.

ii

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements.” Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in the forward-looking statements due to numerous factors discussed from time to time in this Report and in other documents which we file with the Securities and Exchange Commission. In addition, such statements could be affected by risks and uncertainties related to:

	●	our independent registered public accounting firm’s report includes an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern;
	●	the Company’s need for substantial additional funds and its ability to raise those funds;
	●	the ability of Citius Oncology to commercialize LYMPHIR, including covering the costs of licensing payments, product manufacturing and other third-party goods and services, which will require raising additional funds;
	●	the ability of the Company to recognize the anticipated benefits of the Merger (as defined herein), which may not be realized fully, if at all, or may take longer to realize than expected;
	●	our ongoing evaluations of strategic alternatives;
	●	the estimated markets for LYMPHIR, Mino-Lok or any of our future product candidates and the acceptance thereof by any market;
	●	the ability of the Company to maintain compliance with the continued listing requirements of the Nasdaq Stock Market LLC (“Nasdaq”);
	●	the ability of the Company to obtain regulatory approval for and successfully commercialize Mino-Lok;
	●	the cost, timing, and results of our pre-clinical and clinical trials for our other product candidates;
	●	our ability to apply for, obtain and maintain required regulatory approvals for our other product candidates;
	●	the commercial feasibility and success of our technology and our product candidates;
	●	our ability to recruit and retain qualified management and technical personnel to carry out our operations;
	●	our ability to procure cGMP commercial-scale supply;
	●	our dependence on third-party suppliers;
	●	our ability to obtain, perform under and maintain financing and strategic agreements and relationships;
	●	the Company’s operating results and financial performance;
	●	the Company’s ability to manage and grow our business and execution of our business and growth strategies;

iii

	●	the competitive environment in the life sciences and biotechnology industry;
	●	failure to maintain, protect and defend the Company’s intellectual property rights;
	●	changes in government laws and regulations, including laws governing intellectual property, and the enforcement thereof affecting the Company’s business;

	●	changes in general economic conditions, global trade conditions, including the level of tariffs imposed by governments, geopolitical risk, including as a result of any unexpected global tariffs, pandemic or international conflict, including in the Middle East and between Russia and Ukraine;
	●	the effect of the transactions on the Company’s business relationships, operating results, and businesses generally;
	●	the volatility in the price of the Company’s securities due to a variety of factors, including the Company’s inability to implement its business plans or meet or exceed our financial projections;
	●	the outcome of any litigation related to or arising out of the Merger, or any adverse developments therein or delays or costs resulting therefrom; and
	●	the other factors discussed in the “Risk Factors” section of our most recent Annual Report on Form 10-K for the fiscal year ended September 30, 2024, filed with the Securities and Exchange Commission on December 27, 2024, as amended on January 27, 2025, and our most recent Quarterly Report on Form 10-Q for the six months ended March 31, 2025, filed with the SEC on May 14, 2025 and elsewhere in this Report.

Any forward-looking statements speak only as of the date on which they are made, and except as may be required under applicable securities laws, we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the filing date of this Report.

iv

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

CITIUS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

		June 30,				September 30,
		2025				2024
ASSETS
Current Assets:
Cash and cash equivalents		$	6,089,126			$	3,251,880
Inventory			17,208,967				8,268,766
Prepaid expenses			1,313,176				2,700,000
Total Current Assets			24,611,269				14,220,646
Operating lease right-of-use asset, net			880,732				246,247
Deposits			38,062				38,062
In-process research and development			92,800,000				92,800,000
Goodwill			9,346,796				9,346,796
Total Other Assets			102,184,858				102,184,858
Total Assets		$	127,676,859			$	116,651,751
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	10,094,042			$	4,927,211
License payable			28,400,000				28,400,000
Accrued expenses			8,523,675				17,027
Accrued compensation			3,710,041				2,229,018
Note payable			1,000,000				-
Operating lease liability			114,694				241,547
Total Current Liabilities			51,842,452				35,814,803
Deferred tax liability			7,506,520				6,713,800
Operating lease liability - noncurrent			766,957				21,318
Total Liabilities			60,115,929				42,549,921
Commitments and Contingencies
Stockholders’ Equity:
Preferred stock - $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding			-				-
Common stock - $0.001 par value; 250,000,000 and 16,000,000 shares authorized; 14,475,029 and 7,247,243 shares issued and outstanding at June 30, 2025 and September 30, 2024, respectively			14,475				7,247
Additional paid-in capital			295,888,916				271,440,421
Accumulated deficit			(230,844,841	)			(201,370,218	)
Total Citius Pharmaceuticals, Inc. Stockholders’ Equity			65,058,550				70,077,450
Non-controlling interest			2,502,380				4,024,380
Total Equity			67,560,930				74,101,830
Total Liabilities and Equity		$	127,676,859			$	116,651,751

See notes to unaudited condensed consolidated financial statements.

Reflects a 1-for-25 reverse stock split effective November 25, 2024.

1

CITIUS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

		Three Months Ended								Nine Months Ended
		June 30,				June 30,				June 30,				June 30,
		2025				2024				2025				2024
Revenues		$	—			$	—			$	—			$	—
Operating Expenses
Research and development			1,621,325				2,763,865				7,514,888				8,991,673
General and administrative			4,447,008				4,808,551				14,626,882				12,755,190
Stock-based compensation – general and administrative			2,719,674				3,061,763				7,946,529				9,198,340
Total Operating Expenses			8,788,007				10,634,179				30,088,299				30,945,203
Operating Loss			(8,788,007	)			(10,634,179	)			(30,088,299	)			(30,945,203	)
Other Income (Expense)
Interest income			20,637				204,843				56,658				640,686
Gain on sale of New Jersey net operating losses			—				—				—				2,387,842
Interest expense			(172,262	)			—				(172,262	)			—
Total Other Income (Expense)			(151,625	)			204,843				(115,604	)			3,028,528
Loss before Income Taxes			(8,939,632	)			(10,429,336	)			(30,203,903	)			(27,916,675	)
Income tax expense			264,240				144,000				792,720				432,000
Net Loss			(9,203,872	)			(10,573,336	)			(30,996,623	)			(28,348,675	)
Deemed dividend on warrant extension			—				321,559				—				321,559
Net loss attributable to non-controlling interest			414,000				—				1,522,000				—
Net loss applicable to common stockholders		$	(8,789,872	)		$	(10,894,895	)		$	(29,474,623	)		$	(28,670,234	)
Net Loss Per Share - Basic and Diluted		$	(0.80	)		$	(1.57	)		$	(3.27	)		$	(4.37	)
Weighted Average Common Shares Outstanding
Basic and diluted			11,006,896				6,954,278				9,020,356				6,557,892

See notes to unaudited condensed consolidated financial statements.

Reflects a 1-for-25 reverse stock split effective November 25, 2024.

2

CITIUS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

		Preferred				Common Stock								Additional Paid-In				Accumulated				Total Citius Pharmaceuticals, Inc. Stockholders’				Non- Controlling				Total
		Stock				Shares				Amount				Capital				Deficit				Equity				Interest				Equity
Balance, September 30, 2024		$	-				7,247,243			$	7,247			$	271,440,421			$	(201,370,218	)		$	70,077,450			$	4,024,380			$	74,101,830
Issuance of common stock, net of costs			-				480,000				480				2,573,571				-				2,574,051				-				2,574,051
Stock-based compensation expense			-				-				-				2,524,824				-				2,524,824				-				2,524,824
Net loss			-				-				-				-				(10,281,246	)			(10,281,246	)			-				(10,281,246	)
Net loss attributable to non-controlling interest			-				-				-				-				513,000				513,000				(513,000	)			-
Balance, December 31, 2024			-				7,727,243				7,727				276,538,816				(211,138,464	)			65,408,079				3,511,380				68,919,459
Issuance of common stock, net of costs			-				1,033,406				1,034				3,464,773				-				3,465,807								3,465,807
Stock-based compensation expense			-				-				-				2,702,031				-				2,702,031				-				2,702,031
Net loss			-				-				-				-				(11,511,505	)			(11,511,505	)			-				(11,511,505	)
Net loss attributable to non-controlling interest			-				-				-				-				595,000				595,000				(595,000	)			-
Balance, March 31, 2025			-				8,760,649				8,761				282,705,620				(222,054,969	)			60,659,412				2,916,380				63,575,792
Issuance of common stock, net of costs of $177,420			-				2,185,249				2,185				3,292,261				-				3,294,446				-				3,294,446
Issuance of common stock and pre-funded warrants in April 2025 registered direct offering, net of costs of $256,116			-				465,000				465				1,743,292				-				1,743,757				-				1,743,757
Issuance of common stock and pre-funded warrants in June 2025 registered direct offering, net of costs of $571,126			-				540,000				540				5,430,296				-				5,430,836				-				5,430,836
Issuance of common stock upon exercise of pre-funded warrants			-				2,524,131				2,524				(2,227	)			-				297				-				297
Sale of Series A preferred stock			100				-				-				100				-				100				-				100
Redemption of Series A preferred stock			(100	)			-				-				(100	)			-				(100	)			-				(100	)
Stock-based compensation expense			-				-				-				2,719,674				-				2,719,674				-				2,719,674
Net loss			-				-				-				-				(9,203,872	)			(9,203,872	)			-				(9,203,872	)
Net loss attributable to non-controlling interest			-				-				-				-				414,000				414,000				(414,000	)			-
Balance, June 30, 2025		$	-				14,475,029			$	14,475			$	295,888,916			$	(230,844,841	)		$	65,058,550			$	2,502,380			$	67,560,930
Balance, September 30, 2023		$	-				6,354,371			$	6,354			$	253,056,133			$	(162,231,379	)		$	90,831,108			$	600,380			$	91,431,488
Issuance of common stock for services			-				4,351				4				76,142				-				76,146				-				76,146
Stock-based compensation expense			-				-				-				3,058,185				-				3,058,185				-				3,058,185
Net loss			-				-				-				-				(9,231,185	)			(9,231,185	)			-				(9,231,185	)
Balance, December 31, 2023			-				6,358,722				6,358				256,190,460				(171,462,564	)			84,734,254				600,380				85,334,634
Issuance of common stock for services			-				5,069				6				98,073				-				98,079				-				98,079
Stock-based compensation expense			-				-				-				3,078,392				-				3,078,392				-				3,078,392
Net loss			-				-				-				-				(8,544,154	)			(8,544,154	)			-				(8,544,154	)
Balance, March 31, 2024			-				6,363,791				6,364				259,366,925				(180,006,718	)			79,366,571				600,380				79,966,951
Issuance of common stock for services			-				6,000				6				109,944				-				109,950				-				109,950
Issuance of common stock in registered direct offering, net of costs of $1,281,051			-				857,143				857				13,718,094				-				13,718,951				-				13,718,951
Issuance of common stock upon cashless exercise of stock options			-				2,082				2				(2	)			-				-				-				-
Stock-based compensation expense			-				-				-				3,061,763				-				3,061,763				-				3,061,763
Net loss			-				-				-				-				(10,573,336	)			(10,573,336	)			-				(10,573,336	)
Balance, June 30, 2024		$	-				7,229,016			$	7,229			$	276,256,724			$	(190,580,054	)		$	85,683,899			$	600,380			$	86,284,279

See notes to unaudited condensed consolidated financial statements.

Reflects a 1-for-25 reverse stock split effective November 25, 2024.

3

CITIUS PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

		2025				2024
Cash Flows From Operating Activities:
Net loss		$	(30,996,623	)		$	(28,348,675	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense			7,946,529				9,198,340
Issuance of common stock for services			—				284,175
Amortization of operating lease right-of-use asset			152,212				154,494
Depreciation			—				1,432
Deferred income tax expense			792,720				432,000
Changes in operating assets and liabilities:
Inventory			(8,940,201	)			—
Prepaid expenses			1,386,824				(2,205,091	)
Accounts payable			5,166,831				(1,263,998	)
Accrued expenses			8,506,648				74,185
Accrued compensation			1,481,023				(454,315	)
Operating lease liability			(167,911	)			(161,234	)
Net Cash Used In Operating Activities			(14,671,948	)			(22,288,687	)
Cash Flows From Financing Activities:
Net proceeds from common stock offerings			16,509,194				13,718,951
Proceeds from sale of Series A preferred stock			100				—
Redemption of Series A preferred stock			(100	)			—
Proceeds from note payable and advance from employee			1,300,000				—
Repayment of advance from employee			(300,000	)			—
Net Cash Provided By Financing Activities			17,509,194				13,718,951
Net Change in Cash and Cash Equivalents			2,837,246				(8,569,736	)
Cash and Cash Equivalents - Beginning of Period			3,251,880				26,480,928
Cash and Cash Equivalents - End of Period		$	6,089,126			$	17,911,192
Supplemental Disclosures of Cash Flow Information and Non-cash Transactions:
Operating lease right-of-use asset and liability recorded		$	786,697			$	—

See notes to unaudited condensed consolidated financial statements.

4

CITIUS PHARMACEUTICALS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED JUNE 30, 2025 AND 2024

(Unaudited)

1. NATURE OF OPERATIONS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Business

Citius Pharmaceuticals, Inc. (“Citius Pharma,” and together with its subsidiaries, the “Company”, “we” or “us”) is a late-stage biopharmaceutical company dedicated to the development and commercialization of first-in-class critical care products with a focus on oncology, anti-infectives in adjunct cancer care, unique prescription products and stem cell therapies.

On March 30, 2016, Citius Pharma acquired Leonard-Meron Biosciences, Inc. (“LMB”) as a wholly-owned subsidiary. We acquired all the outstanding stock of LMB by issuing shares of our common stock. The net assets acquired included identifiable intangible assets of $19,400,000 related to in-process research and development. We recorded goodwill of $9,346,796 for the excess of the purchase price over the net assets acquired.

On September 11, 2020, we formed NoveCite, Inc. (“NoveCite”), a Delaware corporation, of which we own 75% of the issued and outstanding capital stock (see Note 3).

On August 23, 2021, we formed Citius Oncology, Inc. (formerly named Citius Acquisition Corp.) (“Citius Oncology”), as a wholly-owned subsidiary in conjunction with the acquisition of LYMPHIR, which began operations in April 2022. Pursuant to a merger agreement, dated October 23, 2023, with TenX Keane Acquisition, and its wholly owned subsidiary, TenX Merger Sub Inc (“Merger Sub”), on August 12, 2024, Merger Sub merged with and into Citius Oncology, with Citius Oncology surviving as a wholly owned subsidiary of TenX Keane Acquisition. After the merger and recapitalization (the “Merger”), the newly combined publicly traded company is owned 92.3% by Citius Pharma, and is named “Citius Oncology, Inc.” (Nasdaq: CTOR).

Since our inception, we have devoted substantially all our efforts to business planning, research and development, recruiting management and technical staff, and raising capital. We are subject to a number of risks common to companies in the pharmaceutical industry including, but not limited to, the Company’s ability to obtain additional financing, risks related to the development by the Company or its competitors of research and development stage products, regulatory approval and market acceptance of its products, competition from larger companies, dependence on key personnel, dependence on key suppliers and strategic partners and the Company’s compliance with governmental and other regulations.

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Preparation - The accompanying unaudited condensed consolidated financial statements include the operations of Citius Pharmaceuticals, Inc., its wholly-owned subsidiary LMB and its majority-owned subsidiaries NoveCite and Citius Oncology. On August 12, 2024, Citius Oncology, previously a wholly-owned subsidiary, became a 92.3% majority- owned subsidiary.

The operations of NoveCite and Citius Oncology are included in the consolidated results. The portion of equity that is not attributable to the Company, is presented as a non-controlling interest within stockholders’ equity. Unless excluded by shareholder agreements, the portion of net loss attributable to non-controlling interests is included in the statement of operations. All significant inter-company balances and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to fairly state the condensed consolidated financial position of the Company as of June 30, 2025, and the results of its operations and cash flows for the three and nine months ended June 30, 2025 and 2024. The operating results for the three and nine months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending September 30, 2025. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 filed with the Securities and Exchange Commission (“SEC”) on December 27, 2024, as amended on January 27, 2025.

5

Use of Estimates - The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates having relatively higher significance include the accounting for in-process research and development, goodwill, stock-based compensation and income taxes. Actual results could differ from those estimates and changes in estimates may occur.

Basic and Diluted Net Loss per Common Share - Basic and diluted net loss per common share applicable to common stockholders is computed by dividing net loss applicable to common stockholders in each period by the weighted average number of shares of common stock outstanding during such period. For the periods presented, common stock equivalents, consisting of stock options and warrants, were not included in the calculation of the diluted loss per share because they were anti-dilutive.

Recently Issued Accounting Standards

Other than as disclosed in our Form 10-K, we are not aware of any other recently issued accounting standards not yet adopted that may have a material impact on our financial statements.

2. GOING CONCERN UNCERTAINTY AND MANAGEMENT’S PLAN

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company experienced negative cash flows from operations of $14,671,948 for the nine months ended June 30, 2025. The Company had a negative working capital of approximately $27.2 million at June 30, 2025.

The Company estimates that its available cash resources will be sufficient to fund its operations through September 2025 which raises substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the accompanying consolidated financial statements are issued. The Company is currently engaged in capital raising initiatives, as well as separate capital raising initiatives through its 84.3% owned subsidiary Citius Oncology in an effort to extend its cash runway. Citius Oncology also has retained Jefferies LLC as its exclusive financial advisor in evaluating strategic alternatives aimed at maximizing shareholder value.

The Company has generated no operating revenue to date and has principally raised capital through the issuance of debt and equity instruments to finance its operations. However, the Company’s continued operations beyond September 2025, including its development plans for Mino-Lok, Halo-Lido and NoveCite, will depend on its ability to obtain regulatory approval for Mino-Lok and generate substantial revenue from the sale of LYMPHIR and on its ability to raise additional capital through various potential sources, such as equity and/or debt financings, strategic relationships, or out-licensing of its product candidates. However, the Company can provide no assurances on regulatory approval, commercialization, or future sales of LYMPHIR or that financing or strategic relationships will be available on acceptable terms, or at all. If the Company is unable to raise sufficient capital, find strategic partners or generate substantial revenue from the sale of LYMPHIR, there would be a material adverse effect on its business. Further, the Company expects in the future to incur additional expenses as it continues to develop its product candidates, including seeking regulatory approval, and protecting its intellectual property. The accompanying financial statements do not include any adjustments that might result from the outcome of the above uncertainty.

3. PATENT AND TECHNOLOGY LICENSE AGREEMENTS

Patent and Technology License Agreement – Mino-Lok

LMB has a patent and technology license agreement with Novel Anti-Infective Therapeutics, Inc. (“NAT”) to develop and commercialize Mino-Lok® on an exclusive, worldwide sub-licensable basis, as amended. LMB pays an annual maintenance fee each June until commercial sales of a product subject to the license commence. The Company recorded an annual maintenance fee expense of $90,000 in both 2025 and 2024.

6

LMB will also pay annual royalties on net sales of licensed products, with a low double digit royalty rate (within a range of 10% to 15%). In limited circumstances in which the licensed product is not subject to a valid patent claim and a competitor is selling a competing product, the royalty rate is in the low- to mid-single digits (within a range of 2% to 7%). After a commercial sale is obtained, LMB must pay minimum aggregate annual royalties of $100,000 in the first commercial year which is prorated for a less than 12-month period, increasing $25,000 per year to a maximum of $150,000 annually. LMB must also pay NAT up to $1,100,000 upon achieving specified regulatory and sales milestones. Finally, LMB must pay NAT a specified percentage of payments received from any sub-licensees.

Unless earlier terminated by NAT, based on the failure to achieve certain development and commercial milestones, the license agreement remains in effect until the date that all patents licensed under the agreement have expired and all patent applications within the licensed patent rights have been cancelled, withdrawn, or expressly abandoned.

License Agreement with Eterna

On October 6, 2020, our subsidiary, NoveCite, entered into a license agreement with Novellus Therapeutics Limited (“Novellus”), whereby NoveCite acquired an exclusive, worldwide license, with the right to sublicense, develop and commercialize a stem cell therapy based on the Novellus’s patented technology for the treatment of acute pneumonitis of any etiology in which inflammation is a major agent in humans. Upon execution of the license agreement, we, through NoveCite, paid an upfront payment of $5,000,000 to Novellus, which was charged to research and development expense during the year ended September 30, 2021, and issued to Novellus shares of NoveCite’s common stock representing 25% of the outstanding equity. We own the other 75% of NoveCite’s outstanding equity. Pursuant to the terms of the original stock subscription agreement, if NoveCite issued additional equity, subject to certain exceptions, NoveCite had to maintain Novellus’s ownership at 25% by issuing additional shares to Novellus.

In July 2021, Novellus was acquired by Brooklyn ImmunoTherapeutics, Inc. (“Brooklyn”). Pursuant to this transaction, the NoveCite license was assumed by Brooklyn with all original terms and conditions. In connection with that transaction, the stock subscription agreement was amended to assign to Brooklyn all of Novellus’s right, title, and interest in the stock subscription agreement and delete the anti-dilution protection and replace it with a right of first refusal whereby Brooklyn will have the right to purchase all or a portion of the securities that NoveCite intends to sell or in the alternative, at the option of NoveCite, Brooklyn may purchase that amount of the securities proposed to be sold by NoveCite to allow Brooklyn to maintain its then percentage ownership. In October 2022, Brooklyn changed its name to Eterna Therapeutics Inc. (“Eterna”).

Citius Pharma is responsible for the operational activities of NoveCite and bears all costs necessary to operate NoveCite. Citius Pharma’s officers are also the officers of NoveCite and oversee the business strategy and operations of NoveCite. As such, NoveCite is accounted for as a consolidated subsidiary with a noncontrolling interest.

Eterna has no contractual rights in the profits or obligations to share in the losses of NoveCite, and the Company has not allocated any losses to the noncontrolling interest.

Under the license agreement, NoveCite is obligated to pay Eterna up to an aggregate of $51,000,000 in regulatory and developmental milestone payments. NoveCite also must pay a royalty equal to a mid-teens percentage of net sales, commencing upon the first commercial sale of a licensed product. This royalty is subject to downward adjustment on a product-by-product and country-by-country basis to a mid-single digit percentage (within a range of 4% to 8%) of net sales in any country in the event of the expiration of the last valid patent claim or if no valid patent claim exists in that country. The royalty will end on the earlier of (i) date on which a biosimilar product is first marketed, sold, or distributed by Eterna or any third party in the applicable country or (ii) the 10-year anniversary of the date of expiration of the last-to-expire valid patent claim in that country. In the case of a country where no licensed patent ever exists, the royalty will end on the later of (i) the date of expiry of such licensed product’s regulatory exclusivity and (ii) the 10-year anniversary of the date of the first commercial sale of the licensed product in the applicable country. In addition, NoveCite will pay to Eterna an amount equal to a mid-twenties percentage of any sublicensee fees it receives.

Under the terms of the license agreement, in the event that Eterna receives any revenue involving the original cell line included in the licensed technology, then Eterna shall remit to NoveCite 50% of such revenue.

The term of the license agreement continues on a country-by-country and licensed product-by-licensed product basis until the expiration of the last-to-expire royalty term. Either party may terminate the license agreement upon written notice if the other party is in material default. NoveCite may terminate the license agreement at any time without cause upon 90 days prior written notice.

7

Eterna will be responsible for preparing, filing, prosecuting, and maintaining all patent applications and patents included in the licensed patents in the territory, provided however, that if Eterna decides that it is not interested in maintaining a particular licensed patent or in preparing, filing, or prosecuting a licensed patent, NoveCite will have the right, but not the obligation, to assume such responsibilities in the territory at NoveCite’s sole cost and expense.

License Agreement with Eisai

In September 2021, Citius Pharma entered into an asset purchase agreement with Dr. Reddy’s Laboratories SA, a subsidiary of Dr. Reddy’s Laboratories, Ltd. (collectively, “Dr. Reddy’s”) and a license agreement with Eisai Co., Ltd. (“Eisai”) to acquire an exclusive license of E7777 (denileukin diftitox), an oncology immunotherapy for the treatment of CTCL, a rare form of non-Hodgkin lymphoma. We renamed E7777 as I/ONTAK and also obtained the trade name of LYMPHIR for the product. Citius Pharma assigned these agreements to Citius Oncology effective April 1, 2022. The Company received a BLA approval from the FDA for LYMPHIR in August 2024.

Under the terms of these agreements, Citius Pharma acquired Dr. Reddy’s exclusive license for E7777 from Eisai and other related assets owned by Dr. Reddy’s (which are now owned by Citius Oncology). The exclusive license rights, through Citius Oncology, include rights to develop and commercialize E7777 in all markets except for Japan and certain parts of Asia. Additionally, we, through Citius Oncology, retained an option on the right to develop and market the product in India. Eisai retains exclusive development and marketing rights for the agent in Japan, China, Korea, Taiwan, Hong Kong, Macau, Indonesia, Thailand, Malaysia, Brunei, Singapore, India (subject to the India option prior to FDA approval), Pakistan, Sri Lanka, Philippines, Vietnam, Myanmar, Cambodia, Laos, Afghanistan, Bangladesh, Bhutan, Nepal, Mongolia, and Papua New Guinea. Citius Pharma paid Dr. Reddy’s a $40 million upfront payment, which represents the acquisition date fair value of the in-process research and development acquired from Dr. Reddy’s. Dr. Reddy’s is entitled to up to $40 million in development milestone payments related to CTCL approvals in the U.S. and other markets, up to $70 million in development milestones for additional indications, as well as commercial milestone payments and low double-digit tiered royalties on net product sales (within a range of 10% to 15%), and up to $300 million for commercial sales milestones. Citius Oncology also must pay on a fiscal quarter basis tiered royalties equal to low double-digit percentages of net product sales (within a range of 10% to 15%). The royalties will end on the earlier of (i) the 15-year anniversary of the first commercial sale of the latest indication that received regulatory approval in the applicable country and (ii) the date on which a biosimilar product results in the reduction of net sales in the applicable product by 50% in two consecutive quarters, as compared to the four quarters prior to the first commercial sale of the biosimilar product. Citius Oncology will also pay to Dr. Reddy’s an amount equal to a low-thirties percentage of any sublicense upfront consideration or milestone payments (or the like) received by us and the greater of (i) a low-thirties percentage of any sublicensee sales-based royalties or (ii) a mid-single digit percentage of such licensee’s net sales. Citius Pharma is a guarantor of Citius Oncology’s payment obligations under these agreements.

At the time of the FDA approval for LYMPHIR, a $27.5 million milestone payment became payable to Dr. Reddy’s under the terms of the asset purchase agreement for which a balance of $22.5 million was due as of June 30, 2025. Pending further discussions with Dr. Reddy’s, Dr. Reddy’s agreed to a partial deferral without penalty of this milestone payment. On July 10, 2025, Citius Pharma made a payment of $1,000,000 to Dr. Reddy’s against the outstanding milestone approval fee. On July 28, 2025, Citius Oncology made a payment of $1,250,000 to Dr. Reddy’s against the outstanding milestone approval fees. 

Under the license agreement, Eisai was to receive a $5.9 million milestone payment upon FDA approval, which is included in license payable at June 30, 2025, and additional commercial milestone payments related to the achievement of net product sales thresholds and an aggregate of up to $22 million related to the achievement of net product sales thresholds. Citius Oncology was also required to reimburse Eisai for up to $2.65 million of its costs to complete the Phase 3 pivotal clinical trial for LYMPHIR for the CTCL indication and reimburse Eisai for all reasonable costs associated with the preparation of a Biologics License Application (“BLA”) for LYMPHIR. Eisai was responsible for completing the CTCL clinical trial, and chemistry, manufacturing, and controls (“CMC”) activities through the filing of the BLA for LYMPHIR with the FDA. The BLA was approved by the FDA on August 8, 2024. We, through Citius Oncology, will be responsible for development costs associated with potential additional indications.

On March 28, 2025, Citius Oncology and Eisai entered into a letter agreement that amended the license agreement to provide for a payment schedule to Eisai for the milestone payment and certain unpaid invoices. Citius Oncology has agreed to pay Eisai on or before July 15, 2025, an aggregate amount of $2,535,318 and thereafter on the 15^th of each of the next four months to pay Eisai $2,350,000 and make a final payment of $2,197,892 to Eisai on or before December 15, 2025, in each case with interest on each obligation from its original due date through the date of actual payment under the letter agreement at the rate of 2% per annum. During the nine months ended June 30, 2025, Citius Oncology recorded $160,755 in interest expense under the agreement. The parties released each other from any and all claims, losses, damages, costs and expenses that arise from or related to the failure of Citius Oncology to pay the milestone payment or the other incurred costs under the license agreement except for any claims arising out of a breach of the letter agreement. All other terms of the license agreement remain in full force and effect. On July 15, 2025, Citius Pharma made a payment of $1,091,167.12 to Eisai for the outstanding milestone approval fee and accumulated interest associated with the letter agreement. On July 21, 2025, Citius Oncology made a payment to Eisai of $1,616,521.96 for other certain invoices and accumulated interest associated with the letter agreement.

8

The term of the license agreement will continue until (i) March 30, 2026, if there has not been a commercial sale of a licensed product in the territory, or (ii) if there has been a first commercial sale of a licensed product in the territory by March 30, 2026, the 10-year anniversary of the first commercial sale on a country-by-country basis. The term of the license may be extended for additional 10-year periods for all countries in the territory by notifying Eisai and paying an extension fee equal to $10 million. Either party may terminate the license agreement upon written notice if the other party is in material breach of the agreement, subject to cure within the designated time periods. Either party also may terminate the license agreement immediately upon written notice if the other party files for bankruptcy or takes related actions or is unable to pay its debts as they become due. Additionally, either party will have the right to terminate the agreement if the other party directly or indirectly challenges the patentability, enforceability or validity of any licensed patent.

Under the asset purchase agreement with Dr. Reddy’s, we are required to (i) use commercially reasonable efforts to make commercially available products in the CTCL indication, peripheral T-cell lymphoma indication and immuno-oncology indication, (ii) initiate two investigator initiated immuno-oncology trials (both of which have been initiated), (iii) use commercially reasonable efforts to achieve each of the approval milestones, and (iv) complete each specified immuno-oncology investigator trial on or before the four-year anniversary of the effective date of the definitive agreement. Additionally, we are required to commercially launch a product in a territory within six months of receiving regulatory approval for such product in each such jurisdiction.

As part of the definitive agreement with Dr. Reddy’s, Citius Pharmaceuticals acquired method of use patents in which LYMPHIR is administered in combination with the programmed cell death protein 1 (“PD-1”) pathway inhibitor drug class. PD-1 plays a vital role in inhibiting immune responses and promoting self-tolerance through modulating the activity of T-cells, activating apoptosis of antigen-specific T cells and inhibiting apoptosis of regulatory T cells.

The following patents were acquired and subsequently transferred to Citius Oncology, Inc.:

● US Provisional Application No. 63/070,645, which was filed on August 26, 2020, and subsequently published as US 2022/0062390 A1 on March 3, 2022, entitled Methods of Treating Cancer.

● International Patent Application Number: PCT/IB2021/0576733, which was filed with the World Intellectual Property Organization on August 23, 2021, and subsequently published as WO 2022/043863 A1 on March 3, 2022, entitled, Combination for Use in Methods of Treating Cancer.

Upon FDA approval of LYMPHIR in August 2024, Citius Oncology was subject to approval milestone payments totaling $33.4 million. The $33.4 million was recorded as in-process research and development asset and will be subject to amortization over the regulatory exclusivity period commencing upon revenue generation.

4. INVENTORY

Inventory is stated at the lower of actual accumulated costs or net realizable value. Inventory consists of finished goods of $8,962,493, and work in process of $8,246,474 as of June 30, 2025. Inventory consists of finished goods of $6,134,895, and work in process of $2,133,862 as of September 30, 2024. Inventory is all related to the manufacturing of LYMPHIR commercial products expected to be sold commencing in the fourth quarter of 2025. No reserves against inventory were deemed necessary based on an evaluation of the product expiration dating.

5. PREPAID EXPENSES

Prepaid expenses at June 30, 2025 consists of $84,756 of prepaid insurance, $128,420 in prepaid annual service fees for manufacturing support and $1,100,000 of advance payments, made for the preparation of long-lead time drug substance and product costs which will be utilized in research and development activities or in the manufacturing of LYMPHIR for sale. Prepaid expenses at September 30, 2024 consists of $2,700,000 of advance payments, made for the preparation of long-lead time drug substance and product costs which will be utilized in research and development activities or in the manufacturing of LYMPHIR for sale.

9

6. NOTE PAYABLE AND ADVANCE FROM EMPLOYEE

On June 2, 2025, The Company borrowed $1,000,000 from an unrelated lender. The note payable is due in full on December 2, 2025 with interest at 15% compounded monthly. Leonard Mazur (Chairman and Chief Executive Officer of the Company) personally guaranteed repayment of the note. Interest expense for the three and nine months ended June 30, 2025 was $11,507.

On May 28, 2025, an employee provided a $300,000 non-interest-bearing advance to the Company. On June 5, 2025, the Company repaid the employee in full.

7. COMMON STOCK, STOCK OPTIONS AND WARRANTS

Authorized Common Stock and Reverse Stock Split

The Company filed a Certificate of Change with the Secretary of State of the State of Nevada to (i) effect a 1-for-25 reverse stock split of the Company’s issued and outstanding shares of common stock, and (ii) decrease the number of total authorized shares of common stock from 400,000,000 shares to 16,000,000 shares. The reverse stock split was intended for the Company to regain compliance with the minimum bid price requirement of $1.00 per share of common stock for continued listing on the Nasdaq Capital Market. The reverse stock split became effective on November 25, 2024, and the Company’s Common Stock began trading on a reverse stock split-adjusted basis on the Nasdaq Capital Market on November 26, 2024. All share amounts have been retroactively adjusted to reflect the split.

Series A Preferred Stock and Authorized Common Stock

On April 17, 2025, the Company entered into an agreement with Leonard Mazur (Chairman and Chief Executive Officer of the Company), pursuant to which the Company sold one share of Series A Preferred Stock, par value $0.001 per share for $100 to Mr. Mazur. The Series A Preferred Stock was sold in connection with the June 9, 2025 special meeting of the stockholders for the purpose of approving an amendment to the Company’s Articles of Incorporation, as amended, to increase the number of shares of the Company’s authorized common stock from 16,000,000 to 250,000,000. The Company’s stockholders approved the authorized share increase on June 9, 2025.

On April 17, 2025, the Company filed a certificate of designation with the Nevada Secretary of State, designating the powers, rights, privileges and restrictions of the Series A Preferred Stock. The certificate provides that each share of Series A Preferred Stock will have 1,000,000,000 votes and will vote together with the outstanding shares of Common Stock as a single class, exclusively with respect to the authorized share increase proposal and shall not be entitled to vote on any other matter. The Series A Preferred Stock will be voted on the authorized share increase in the same proportion as the aggregate votes cast by holders of common stock “for” and “against” the proposal. The Series A Preferred Stock otherwise has no other voting rights, including in respect of any other proposal. The voting power attributable to the Series A Preferred Stock will be disregarded for purposes of determining whether a quorum is present at the special meeting, and the establishment of a quorum at the special meeting will be determined only with reference to the common stock.

Pursuant to its terms, on June 9, 2025, the outstanding share of Series A Preferred Stock was redeemed automatically for $100 after the Company published the final results of the stockholder vote on the authorized stock increase.

Common Stock Issued for Services

On October 10, 2023, the Company issued 4,351 shares of common stock for media, and public and investor relations services and expensed the $76,146 fair value of the common stock issued.

Common Stock Offerings

On November 15, 2024, the Company entered into an agreement with certain institutional investors for the issuance and sale, in a registered direct offering of 480,000 shares of common stock and warrants to purchase 480,000 shares of common stock. Gross proceeds were $3,000,000 and net proceeds were $2,574,051 after deducting fees and expenses. The shares and warrants were sold at a combined offering price of $6.25. The immediately exercisable warrants have an exercise price of $6.25 per share and expire on November 19, 2029. The estimated fair value of the warrants issued to the investors was approximately $1,575,000.

10

The Company paid the placement agent 7% of the gross proceeds and granted the placement agent immediately exercisable warrants to purchase 33,600 shares of common stock at an exercise price is $7.8125 per share which expire on November 15, 2029. The estimated fair value of the warrants issued to the placement agent was approximately $104,000.

On January 7, 2025, the Company entered into an agreement with certain institutional investors for the issuance and sale, in a registered direct offering of 743,496 shares of common stock and warrants to purchase 743,496 shares of common stock. Gross proceeds were approximately $3,000,000 and net proceeds were $2,657,167 after deducting fees and expenses. The shares and warrants were sold at a combined offering price of $4.035. The immediately exercisable warrants have an exercise price of $3.91 per share and expire on January 8, 2030. The estimated fair value of the warrants issued to the investors was approximately $2,091,000.

The Company paid the placement agent 7% of the gross proceeds and granted the placement agent immediately exercisable warrants, to purchase 52,045 shares of common stock at $5.0438 per share which expire on January 7, 2030. The estimated fair value of the warrants issued to the placement agent was approximately $138,000.

On April 1, 2025, the Company sold 465,000 shares of common stock, and pre-funded warrants to purchase 1,274,131 shares of common stock at an offering price of $1.15 and $1.1499. Gross proceeds were $1,999,873 and net proceeds were $1,743,757 after deducting fees and expenses. The immediately exercisable pre-funded warrants have an exercise price of $0.0001 per share and do not expire. All 1,274,131 of the pre-funded warrants were exercised during the three months ended June 30, 2025.

The Company paid the placement agent 7% of the gross proceeds and granted the placement agent warrants to purchase 121,739 shares of common stock at $1.4375 per share which are exercisable commencing on October 2, 2025 and expire on April 1, 2030. The estimated fair value of the warrants issued to the placement agent was approximately $100,000.

On June 11, 2025, the Company sold 540,000 shares of common stock, and pre-funded warrants to purchase 4,380,000 shares of common stock at offering prices of $1.22 and $1.2199, respectively, along with immediately exercisable two-year warrants to purchase 9,840,000 shares of common stock at $1.00 per share. On the expiration date, any warrants outstanding will be exercised via cashless exercise. Gross proceeds were $6,001,962 and net proceeds of the offering were $5,430,836 after deducting fees and expenses. The pre-funded warrants are exercisable immediately at $0.0001 per share and do not expire. A holder may not exercise, if they would beneficially own in excess of 4.99% of the common stock; provided that upon 61 days’ notice, the holder may increase the beneficial ownership limitation to 9.99%. 1,250,000 of the pre-funded warrants were exercised during the three months ended June 30, 2025. The estimated fair value of the 9,840,000 warrants issued to the investors was approximately $4,867,000.

The Company paid the placement agent a fee of $420,168 and other fees and expenses were $150,958. In addition, the Company granted placement agent warrants to purchase 344,400 shares of common stock at an exercise price equal to $1.525 per share. The warrants are exercisable six months after issuance and expire after five years. On the expiration date, any warrants outstanding will be exercised via cashless exercise. The estimated fair value of the warrants issued to the placement agent was approximately $222,000.

At the Market Offering Agreement

On August 12, 2024, the Company entered into a sales agreement, to sell, from time to time during the term of the agreement the Company’s common shares.

During the three months ended March 31, 2025, the Company sold 289,910 shares for gross proceeds of $839,468. Net proceeds after deducting broker fees and other offering expenses were $808,640.

During the three months ended June 30, 2025, the Company sold 2,185,249 shares for gross proceeds of $3,471,866. Net proceeds after deducting broker fees and other offering expenses were $3,294,446.

Stock Option Plans

Pursuant to our 2014 Stock Incentive Plan, we reserved 34,667 shares of common stock. As of June 30, 2025, there were options to purchase 16,910 shares outstanding, options to purchase 2,318 shares were exercised, options to purchase 15,439 shares expired or were forfeited, and no shares were available for future grants.

11

Pursuant to our 2018 Omnibus Stock Incentive Plan, we reserved 80,000 shares of common stock. As of June 30, 2025, there were options to purchase 67,200 shares outstanding, options to purchase 4,667 shares were exercised, options to purchase 3,733 shares expired or were forfeited, and the remaining 4,400 shares were transferred to the 2020 Omnibus Stock Incentive Plan (“2020 Plan”).

Pursuant to our 2020 Plan, we reserved 124,400 shares of common stock. As of June 30, 2025, there were options to purchase 66,000 shares outstanding, options to purchase 8,800 shares expired or were forfeited and the remaining 49,600 shares were transferred to the 2021 Omnibus Stock Incentive Plan (“2021 Stock Plan”).

Pursuant to our 2021 Stock Plan, we reserved 349,600 shares of common stock. As of June 30, 2025, options to purchase 330,000 shares were outstanding, options to purchase 18,200 shares expired or were forfeited and the remaining 1,400 shares were transferred to the 2023 Omnibus Stock Incentive Plan (“2023 Stock Plan”).

In November 2022, our Board approved the 2023 Stock Plan, subject to stockholder approval, which was received on February 7, 2023. The 2023 Stock Plan reserved 481,400 shares of common stock for issuance. As of June 30, 2025, options to purchase 359,400 shares were outstanding, options to purchase 4,000 shares expired or were forfeited and 118,000 shares remain available for future grants.

The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model. Volatility is estimated using the trading activity of our common stock. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant commensurate with the expected term assumption. The expected term of stock options granted, all of which qualify as “plain vanilla,” is based on the average of the contractual term (generally 10 years) and the vesting period. For non-employee options, the expected term is the contractual term.

A summary of option activity under our stock option plans (excluding the NoveCite and Citius Oncology Stock Plans) is presented below:

		Option Shares				Weighted- Average Exercise Price				Weighted- Average Remaining Contractual Term				Aggregate Intrinsic Value
Outstanding at September 30, 2024			656,084			$	36.41				7.26 years			$	0.00
Granted			185,000				9.50
Exercised			-				-
Forfeited or expired			(1,574	)			242.80
Outstanding at June 30, 2025			839,510			$	30.09				7.15 years			$	0.00
Exercisable at June 30, 2025			512,009			$	39.73				6.13 years			$	0.00

On November 7, 2024, the Board of Directors granted options to purchase 158,000 shares to employees, 25,000 shares to directors and 2,000 shares to a consultant at $9.50 per share. The weighted average grant date fair value of the options granted during the nine months ended June 30, 2025 was estimated at $7.15 per share. These options vest over terms of 12 to 36 months and have a term of 10 years.

At June 30, 2025, unrecognized total compensation cost related to unvested awards under the Citius Pharma stock plans of $2,077,242 is expected to be recognized over a weighted average period of 1.54 years.

NoveCite Stock Plan - Under the NoveCite Stock Plan, adopted November 5, 2020, we reserved 2,000,000 common shares of NoveCite for issuance. The NoveCite Stock Plan provides incentives to employees, directors, and consultants through grants of options, SARs, dividend equivalent rights, restricted stock, restricted stock units, or other rights.

As of June 30, 2025, NoveCite has options outstanding to purchase 1,911,500 common shares of NoveCite, all of which are exercisable, and 88,500 shares available for future grants. All of the options were issued during the year ended September 30, 2021. These options vested over 36 months and have a term of 10 years. The weighted average remaining contractual term of options outstanding under the NoveCite Stock Plan is 5.64 years and the weighted average exercise price is $0.24 per share. At June 30, 2025, there is no unrecognized compensation cost related to these awards.

12

Citius Oncology Stock Plan - Under the 2023 Citius Oncology Omnibus Stock Incentive Plan, adopted on April 29, 2023, Citius Oncology reserved 15,000,000 common shares of Citius Oncology for issuance. On August 2, 2024 Citius Oncology reserved an additional 15,000,000 common shares of Citius Oncology for issuance under the 2024 Citius Oncology Omnibus Stock Incentive Plan. The Citius Oncology stock plans provide incentives to employees, directors, and consultants through grants of options, SARs, dividend equivalent rights, restricted stock, restricted stock units, or other rights.

Volatility is estimated using the trading activity of Citius Pharmaceuticals common stock. until such time as Citius Oncology has sufficient history. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant commensurate with the expected term assumption. The expected term of stock options granted to employees and directors, all of which qualify as “plain vanilla,” is based on the average of the contractual term (generally 10 years) and the vesting period. For non-employee options, the expected term is the contractual term.

A summary of option activity under the Citius Oncology stock plans is presented below:

		Shares				Weighted- Average Exercise Price				Weighted- Average Remaining Contractual Term				Aggregate Intrinsic Value
Outstanding at September 30, 2024			12,750,000			$	2.15				8.78 years			$	0.00
Granted			5,750,000				1.07
Forfeited			(333,333	)			1.74
Outstanding at June 30, 2025			18,166,667			$	1.82				8.43 years			$	46,051,667
Exercisable at June 30, 2025			5,554,167			$	1.99				8.13 years			$	13,098,333

The weighted average grant date fair value of the Citius Oncology options granted during the nine months ended June 30, 2025 was estimated at $0.80 per share. All these options vest over terms of 12 to 36 months and have a term of 10 years.

At June 30, 2025, unrecognized total compensation cost related to unvested awards under the Citius Oncology stock plans of $9,909,073 is expected to be recognized over a weighted average period of 1.41 years.

Stock-based compensation expense for the three months ended June 30, 2025 and 2024 was $2,719,674 (including $2,125,237 for the Citius Oncology stock plans) and $3,061,763 (including $13,858 for the NoveCite plan and $1,957,000 for the Citius Oncology stock plans). Stock-based compensation expense for the nine months ended June 30, 2025 and 2024 was $7,946,529 (including $6,022,287 for the Citius Oncology stock plans) and $9,198,340 (including $47,574 for the NoveCite plan and $5,831,000 for the Citius Oncology stock plans).

Warrants

The Company has reserved 17,623,006 shares of common stock for the exercise of outstanding warrants. The following table summarizes the warrants outstanding at June 30, 2025:

		Exercise price				Number				Expiration Dates
August 2018 Offering Investors		$	28.75				156,863			August 14, 2025
August 2018 Offering Agent			39.84				7,576			August 8, 2025
September 2019 Offering Investors			19.25				111,732			September 27, 2025
September 2019 Offering Underwriter			27.97				7,774			September 27, 2025
February 2020 Exercise Agreement Agent			31.88				5,555			August 19, 2025
May 2020 Offering Investors			25.00				66,824			November 18, 2025
August 2020 Underwriter			32.81				8,079			August 10, 2025
January 2021 Offering Investors			30.78				123,648			July 27, 2026
January 2021 Offering Agent			40.44				14,065			July 27, 2026
February 2021 Offering Investors			42.50				823,211			February 19, 2026
February 2021 Offering Agent			47.03				100,256			February 19, 2026
May 2023 Offering Investors			37.50				500,000			May 8, 2028
May 2023 Offering Agent			37.50				35,000			May 3, 2028
April 2024 Offering Investors			18.75				857,143			October 30, 2029
April 2024 Offering Agent			21.875				60,000			April 25, 2029
November 2024 Offering Investors			6.25				480,000			November 18, 2029
November 2024 Offering Agent			7.8125				33,600			November 15, 2029
January 2025 Offering Investors			3.91				743,496			January 8, 2030
January 2025 Offering Agent			5.0438				52,045			January 7, 2030
April 2025 Offering Agent			1.4375				121,739			April 1, 2030
June 2025 Offering Investor			0.0001				3,130,000			No Expiration
June 2025 Offering Investor			1.000				9,840,000			June 11, 2027
June 2025 Offering Agent			1.525				344,400			June 11, 2027
							17,623,006

13

On April 3, 2024, the Board of Directors approved a one-year extension for warrants to purchase 51,780 shares of common stock with an exercise price of $35.50 per share. The warrants were held by Leonard Mazur, Chief Executive Officer and Chairman of the Board of Directors, and Myron Holubiak, Executive Vice President and Director, and were originally issued in April 2019 in a registered direct offering of common stock. Additionally, 9,605 warrants with an exercise price of $48.28 per share issued in connection with the registered direct offering were extended by one-year. These warrants were held by the registered direct offering placement agent. We recorded a deemed dividend of $321,559 based on the excess of the fair value of the modified warrants over the fair value of the warrants before the modification, the effect of which was an increase in the net loss attributable to common shareholders in the statement of operations for the three and nine months ended June 30, 2024.

At June 30, 2025, the weighted average remaining life of the outstanding warrants is 1.88 years, all warrants are exercisable except for the April 2025 Offering Agent warrants which become exercisable on October 2, 2025, and the aggregate intrinsic value of the warrants outstanding was $10,822,938.

Common Stock Reserved

A summary of common stock reserved for future issuances by the Company excluding all subsidiaries as of June 30, 2025 is as follows:

Stock plan options outstanding			839,510
Stock plan shares available for future grants			118,000
Warrants outstanding			17,623,006
Total			18,580,516

8. GAIN ON SALE OF NEW JERSEY NET OPERATING LOSSES

The Company recognized a gain of $2,387,842 for the nine months ended June 30, 2024, in connection with the sale of certain New Jersey income tax net operating losses to a third party under the New Jersey Technology Business Tax Certificate Transfer Program.

9. COMMITMENTS AND CONTINGENCIES

Operating Lease

Effective July 1, 2019, Citius Pharma entered into a 76-month lease for office space in Cranford, NJ. On February 28, 2025, we extended the lease until February 28, 2030. A right-of-use asset of $786,697 was recognized as a non-cash asset addition on the lease amendment date. We pay our proportionate share of real estate taxes and operating expenses in excess of the base year expenses. These costs are variable lease payments and are not included in the determination of the lease’s right-of-use asset or lease liability.

The Company identified and assessed the following significant assumptions in recognizing its right-of-use assets and corresponding lease liabilities:

● As the Cranford lease does not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the present value of the lease payments.

● Since the Company elected to account for each lease component and its associated non-lease components as a single combined component, all contract consideration was allocated to the combined lease component.

● The expected lease terms include noncancelable lease periods.

14

The elements of lease expense are as follows: 

Lease cost		Nine Months Ended June 30, 2025				Nine Months Ended June 30, 2024
Operating lease cost		$	189,641			$	179,117
Variable lease cost			10,806				3,732
Total lease cost		$	200,447			$	182,849
Other information
Weighted-average remaining lease term - operating leases			4.7 Years				1.3 Years
Weighted-average discount rate - operating leases			8.0	%			8.0	%

Maturities of lease liabilities due under the Company’s non-cancellable leases are as follows: 

Year Ending September 30,		June 30, 2025
2025 (excluding the 9 months ended June 30, 2025)		$	64,381
2026			192,740
2027			232,827
2028			237,686
2029			242,545
2030			102,849
Total lease payments			1,073,028
Less: interest			(191,377	)
Present value of lease liabilities		$	881,651

Leases		Classification		June 30, 2025				September 30, 2024
Assets
Lease asset		Operating		$	880,732			$	246,247
Total lease assets				$	880,732			$	246,247
Liabilities
Current		Operating		$	114,694			$	241,547
Non-current		Operating			766,957				21,318
Total lease liabilities				$	881,651			$	262,865

Interest expense on the lease liability was $21,590 and $24,623 for the nine months ended June 30, 2025 and 2024, respectively.

Commercial Manufacturing Contracts

The Company has entered into an agreement with a contract manufacturing organization for the manufacture and supply of drug substance. The agreement runs through calendar 2026, with an automatic renewal for a subsequent four-year term. Under this agreement, the Company is obligated to purchase minimum annual quantities of batches at a set price per batch, subject to annual increases. Additionally, the Company is required to pay an annual service fee of $250,000. The agreement also includes provisions for potential price increases based on increases in the manufacturer’s operating expenses or industry indices, as well as significant termination fees and obligations. As of June 30, 2025, the total minimum purchase commitment under this agreement was approximately $18.3 million consisting of payments of $11.9 million and $5.4 million for calendar years 2025 and 2026, respectively, and $1.0 million for 2026 pass-throughs and consumable manufacturing components.

15

As of June 30, 2025, the Company also has commercial supply agreements with two other vendors for the completion and packaging of finished drug products. Minimum purchase commitments under these two agreements amount to approximately $4.5 million consisting of purchase commitment obligations of $2.9 million in calendar year 2025 and $1.6 million in 2026.

10. MERGER AGREEMENT

On October 23, 2023, the Company and its then wholly owned subsidiary Citius Oncology entered into an agreement and plan of merger and reorganization (the “Merger Agreement”) with TenX Keane Acquisition, a Cayman Islands exempted company (“TenX”), and TenX Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of TenX (“Merger Sub”).

On August 12, 2024, pursuant to the terms and conditions of the Merger Agreement, Merger Sub merged with and into Citius Oncology, with Citius Oncology surviving as a wholly owned subsidiary of TenX (the “Merger”) which was subsequently renamed Citius Oncology Sub. Prior to closing of the Merger, TenX migrated to and domesticated as a Delaware corporation in accordance with Section 388 of the General Corporation Law of the State of Delaware and the Cayman Islands Companies Act (As Revised) (the “Domestication”). As part of the Domestication, TenX changed its name to “Citius Oncology, Inc.” (Nasdaq: CTOR).

The Merger recapitalization resulted in a 92.3% ownership interest by the Company in Citius Oncology.

11. SUBSEQUENT EVENTS

Nasdaq Listing

On July 8, 2025, we received formal notification that we had regained compliance with the $1.00 per share requirement for continued inclusion on the Nasdaq Stock Market LLC.

From July 1, 2025 through August 9. 2025 and from the registered direct offering of June 11, 2025, 2,450,000 pre-funded warrants were exercised for the issuance of common stock.

16

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations for the three and nine months ended June 30, 2025 and 2024 should be read together with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Report and in conjunction with the audited financial statements of Citius Pharmaceuticals, Inc. included in our Annual Report on Form 10-K for the year ended September 30, 2024, filed with the Securities and Exchange Commission (“SEC”) on December 27, 2024, as amended on January 27, 2025. The following discussion contains “forward-looking statements” that reflect our future plans, estimates, beliefs and expected performance. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements as a result of a number of factors. We caution that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Please see “Cautionary Note Regarding Forward-Looking Statements” on page iii of this Report.

Historical Background

We are a biopharmaceutical company dedicated to the development and commercialization of first-in-class critical care products. On September 12, 2014, we acquired Citius Pharmaceuticals, LLC as a wholly-owned subsidiary. Citius Pharmaceuticals, LLC, was dissolved on December 29, 2023.

On March 30, 2016, we acquired all of the outstanding stock of Leonard-Meron Biosciences, Inc. by issuing shares of our common stock. We acquired identifiable intangible assets of $19,400,000 related to in-process research and development and recorded goodwill of $9,346,796 for the excess of the purchase consideration over the net assets acquired.

On September 11, 2020, we formed NoveCite, Inc., a Delaware corporation, of which we own 75% of the issued and outstanding capital stock.

On August 23, 2021, we formed Citius Acquisition Corp., or SpinCo, as a wholly-owned subsidiary in conjunction with the acquisition of LYMPHIR, but Citius Acquisition did not begin operations until April 2022, when Citius Pharma transferred to it the assets related to LYMPHIR, including the related license agreement with Eisai and the related asset purchase agreement with Dr. Reddy’s Laboratories SA, a subsidiary of Dr. Reddy’s. At this time, Citius Acquisition changed its name to Citius Oncology, Inc. In August 2024, as part of the Merger, the new publicly-traded company and majority-owned subsidiary of Citius Pharma was named Citius Oncology, Inc.

In-process research and development of $19,400,000 represents the value of LMB’s leading drug candidate (Mino-Lok), which is an antibiotic solution used to treat catheter-related bloodstream infections and is expected to be amortized on a straight-line basis over a period of eight years commencing upon revenue generation. Goodwill of $9,346,796 represents the value of LMB’s industry relationships and its assembled workforce. Goodwill will not be amortized but will be tested at least annually for impairment. In-process research and development of $73,400,000 represents the value of our exclusive license for LYMPHIR (denileukin diftitox), a late-stage oncology immunotherapy for the treatment of CTCL, a rare form of non-Hodgkin lymphoma and is expected to be amortized on a straight-line basis over a period of twelve years commencing upon revenue generation in 2025.

Through June 30, 2025, we have devoted substantially all our efforts to product development, raising capital, building infrastructure through strategic alliances and coordinating activities relating to our proprietary products. We have not yet realized any revenues from our operations.

Reverse Stock Split

Effective November 25, 2024, the Company executed a reverse stock split of its common stock, par value $0.001 per share, at a ratio of 1-for-25 (“Reverse Stock Split”). All share amounts have been retroactively adjusted to reflect the split.

17

Patent and Technology License Agreements

Mino-Lok^® – LMB has a patent and technology license agreement with Novel Anti-Infective Therapeutics, Inc. (“NAT”) to develop and commercialize Mino-Lok on an exclusive, worldwide sub-licensable basis, as amended. Since May 2014, LMB has paid an annual maintenance fee, which began at $30,000 and has increased over five years to $90,000, where it will remain until the commencement of commercial sales of a product subject to the license. LMB will also pay annual royalties on net sales of licensed products, with a low double digit royalty rate (within a range of 10% to 15%). In limited circumstances in which the licensed product is not subject to a valid patent claim and a competitor is selling a competing product, the royalty rate is in the low- to mid-single digits (within a range of 2% to 7%). After a commercial sale is obtained, LMB must pay minimum aggregate annual royalties of $100,000 in the first commercial year which is prorated for a less than 12-month period, increasing $25,000 per year to a maximum of $150,000 annually. LMB must also pay NAT up to $1,100,000 upon achieving specified regulatory and sales milestones. Finally, LMB must pay NAT a specified percentage of payments received from any sub-licensees.

NoveCite – On October 6, 2020, our subsidiary NoveCite entered into a license agreement with Novellus Therapeutics Limited, whereby NoveCite acquired an exclusive, worldwide license, with the right to sublicense, to develop and commercialize a stem cell therapy based on Novellus’s patented technology for the treatment of acute pneumonitis of any etiology in which inflammation is a major agent in humans. Upon execution of the license agreement, NoveCite paid an upfront payment of $5,000,000 to Novellus and issued to Novellus shares of Novecite’s common stock representing 25% of NoveCite’s currently outstanding equity. We own the other 75% of NoveCite’s currently outstanding equity.

In July 2021, Novellus was acquired by Brooklyn ImmunoTherapeutics. Pursuant to this transaction, the NoveCite license was assumed by Brooklyn with all original terms and conditions. In October 2021, Brooklyn changed its name to Eterna Therapeutics Inc.

As part of the Novellus and Brooklyn merger transaction, the 25% non-dilutive position per the subscription agreement between Novellus and NoveCite was removed.

Under the license agreement, NoveCite is obligated to pay Eterna up to an aggregate of $51,000,000 in regulatory and developmental milestone payments. NoveCite also must pay a royalty equal to a mid-teens percentage of net sales, commencing upon the first commercial sale of a licensed product. This royalty is subject to downward adjustment on a product-by-product and country-by-country basis to a mid-single digit percentage (within a range of 4% to 8%) of net sales in any country in the event of the expiration of the last valid patent claim or if no valid patent claim exists in that country. The royalty will end on the earlier of (i) date on which a biosimilar product is first marketed, sold, or distributed by Eterna or any third party in the applicable country or (ii) the 10-year anniversary of the date of expiration of the last-to-expire valid patent claim in that country. In the case of a country where no licensed patent ever exists, the royalty will end on the later of (i) the date of expiry of such licensed product’s regulatory exclusivity and (ii) the 10-year anniversary of the date of the first commercial sale of the licensed product in the applicable country. In addition, NoveCite will pay to Eterna an amount equal to a mid-twenties percentage of any sublicensee fees it receives.

Under the terms of the license agreement, in the event that Eterna receives any revenue involving the original cell line included in the licensed technology, then Eterna shall remit to NoveCite 50% of such revenue.

LYMPHIR - In September 2021, Citius Pharma entered into an asset purchase agreement with Dr. Reddy’s and a license agreement with Eisai to acquire an exclusive license of E7777 (denileukin diftitox), an oncology immunotherapy for the treatment of CTCL, a rare form of non-Hodgkin lymphoma. Citius Pharma renamed E7777 as I/ONTAK and also obtained the trade name of LYMPHIR for the product. Citius Pharma assigned these agreements to SpinCo effective April 1, 2022. Denileukin diftitox is referred to in this report as E7777, I/ONTAK or LYMPHIR, depending on the period of time and context that is being discussed.

Under the terms of these agreements, Citius Pharma acquired Dr. Reddy’s exclusive license for E7777 from Eisai and other related assets owned by Dr. Reddy’s (which are now owned by Citius Oncology). The exclusive license rights, through Citius Oncology, include rights to develop and commercialize E7777 in all markets except for Japan and certain parts of Asia. Additionally, we, through Citius Oncology, retained an option on the right to develop and market the product in India. Eisai retains exclusive development and marketing rights for the agent in Japan, China, Korea, Taiwan, Hong Kong, Macau, Indonesia, Thailand, Malaysia, Brunei, Singapore, India (subject to the India option prior to FDA approval), Pakistan, Sri Lanka, Philippines, Vietnam, Myanmar, Cambodia, Laos, Afghanistan, Bangladesh, Bhutan, Nepal, Mongolia, and Papua New Guinea. Citius Pharma paid Dr. Reddy’s a $40 million upfront payment, which represents the acquisition date fair value of the in-process research and development acquired from Dr. Reddy’s. Dr. Reddy’s is entitled to up to $40 million in development milestone payments related to CTCL approvals in the U.S. and other markets, up to $70 million in development milestones for additional indications, as well as commercial milestone payments and low double-digit tiered royalties on net product sales (within a range of 10% to 15%), and up to $300 million for commercial sales milestones. Citius Oncology also must pay on a fiscal quarter basis tiered royalties equal to low double-digit percentages of net product sales (within a range of 10% to 15%). The royalties will end on the earlier of (i) the 15-year anniversary of the first commercial sale of the latest indication that received regulatory approval in the applicable country and (ii) the date on which a biosimilar product results in the reduction of net sales in the applicable product by 50% in two consecutive quarters, as compared to the four quarters prior to the first commercial sale of the biosimilar product. Citius Oncology will also pay to Dr. Reddy’s an amount equal to a low-thirties percentage of any sublicense upfront consideration or milestone payments (or the like) received by us and the greater of (i) a low-thirties percentage of any sublicensee sales-based royalties or (ii) a mid-single digit percentage of such licensee’s net sales. Citius Pharma is a guarantor of Citius Oncology’s payment obligations under these agreements.

18

At the time of the FDA approval for LYMPHIR, a $27.5 million milestone payment became payable to Dr. Reddy’s under the terms of the asset purchase agreement for which a balance of $22.5 million remains due as of June 30, 2025. Pending further discussions with Dr. Reddy’s, Dr. Reddy’s agreed to a partial deferral without penalty of this milestone payment. On July 10, 2025, Citius Pharma made a payment of $1,000,000 to Dr. Reddy’s against the outstanding milestone approval fee. On July 28, 2025, Citius Oncology made a payment of $1,250,000 to Dr. Reddy’s against the outstanding milestone approval fees. 

Under the license agreement, Eisai was to receive a $5.9 million milestone payment upon FDA approval, which is included in license payable at June 30, 2025, and additional commercial milestone payments related to the achievement of net product sales thresholds and an aggregate of up to $22 million related to the achievement of net product sales thresholds. The Company, through Citius Oncology, was also required to reimburse Eisai for up to $2.65 million of its costs to complete the Phase 3 pivotal clinical trial for LYMPHIR for the CTCL indication and reimburse Eisai for all reasonable costs associated with the preparation of the BLA for LYMPHIR. Eisai was responsible for completing the CTCL clinical trial, and CMC activities through the filing of the BLA for LYMPHIR with the FDA. The BLA was approved by the FDA on August 8, 2024. We, through Citius Oncology, are responsible for development costs associated with potential additional indications. 

On March 28, 2025, Citius Oncology and Eisai entered into a letter agreement that amended the license agreement to provide for a payment schedule to Eisai for the milestone payment and certain unpaid invoices. Citius Oncology has agreed to pay Eisai on or before July 15, 2025, an aggregate amount of $2,535,318 and thereafter on the 15^th of each of the next four months to pay Eisai $2,350,000 and make a final payment of $2,197,892 to Eisai on or before December 15, 2025, in each case with interest on each obligation from its original due date through the date of actual payment under the letter agreement at the rate of 2% per annum. During the nine months ended June 30, 2025 Citius Oncology recorded $160,755 in interest expense under the agreement. The parties released each other from any and all claims, losses, damages, costs and expenses that arise from or related to the failure of Citius Oncology to pay the milestone payment or the other incurred costs under the license agreement except for any claims arising out of a breach of the letter agreement. All other terms of the license agreement remain in full force and effect. On July 15, 2025 Citius Pharma made a payment of $1,091,167.12 to Eisai for the outstanding milestone approval fee and accumulated interest associated with the letter agreement. On July 21, 2025, Citius Oncology made a payment to Eisai of $1,616,521.96 for other certain invoices and accumulated interest associated with the letter agreement.

The term of the license agreement will continue until (i) March 30, 2026, if there has not been a commercial sale of a licensed product in the territory, or (ii) if there has been a first commercial sale of a licensed product in the territory by March 30, 2026, the 10-year anniversary of the first commercial sale on a country-by-country basis. The term of the license may be extended for additional 10-year periods for all countries in the territory by notifying Eisai and paying an extension fee equal to $10 million. Either party may terminate the license agreement upon written notice if the other party is in material breach of the agreement, subject to cure within the designated time periods. Either party also may terminate the license agreement immediately upon written notice if the other party files for bankruptcy or takes related actions or is unable to pay its debts as they become due. Additionally, either party will have the right to terminate the agreement if the other party directly or indirectly challenges the patentability, enforceability or validity of any licensed patent. 

Under the purchase agreement with Dr. Reddy’s, we are required to (i) use commercially reasonable efforts to make commercially available products in the CTCL indication, peripheral T-cell lymphoma indication and immuno-oncology indication, (ii) initiate two investigator initiated immuno-oncology trials (both of which have been initiated), (iii) use commercially reasonable efforts to achieve each of the approval milestones, and (iv) complete each specified immuno-oncology investigator trial on or before the four-year anniversary of the effective date of the definitive agreement. Additionally, we are required to commercially launch a product in a territory within six months of receiving regulatory approval for such product in each such jurisdiction. 

19

RESULTS OF OPERATIONS

Three months ended June 30, 2025 compared with the three months ended June 30, 2024

		Three Months Ended June 30, 2025				Three Months Ended June 30, 2024
Revenues		$	-			$	-
Operating expenses:
Research and development			1,621,325				2,763,865
General and administrative			4,447,008				4,808,551
Stock-based compensation expense			2,719,674				3,061,763
Total operating expenses			8,788,007				10,634,179
Operating loss			(8,788,007	)			(10,634,179	)
Interest income			20,637				204,843
Interest expense			(172,262	)			-
Loss before income taxes			(8,939,632	)			(10,429,336	)
Income tax expense			264,240				144,000
Net loss		$	(9,203,872	)		$	(10,573,336	)

Revenues

We did not generate any revenues for the three months ended June 30, 2025 or 2024.

On June 9, 2025, we announced that we entered into a distribution services agreement with Cardinal Health (NYSE: CAH), a leading provider of pharmaceutical and specialty pharmaceutical distribution services in the United States. This agreement is designed to help provide access to LYMPHIR in support of its anticipated U.S. commercial launch.

On June 17, 2025, we announced that preparations for the commercial launch of LYMPHIR™, an FDA-approved immunotherapy for the treatment of adults with relapsed or refractory cutaneous T-cell lymphoma (CTCL), are nearing completion. The Company believes it is now operationally positioned to transition from a development-stage enterprise to a fully integrated commercial organization, with all major launch-enabling activities underway. Final preparations are in process for a U.S. launch of LYMPHIR in the fourth quarter of 2025.

On July 15, 2025, we announced the execution of a distribution services agreement with Cencora (formerly AmerisourceBergen), a global pharmaceutical services company. This agreement marks another significant step forward in the Company’s commercial launch strategy for LYMPHIR.

Research and Development Expenses

For the three months ended June 30, 2025, research and development expenses were $1,621,325 as compared to $2,763,865 during the three months ended June 30, 2024, a decrease of $1,142,540.

Research and development costs for Mino-Lok decreased by $982,327 to $161,731 for the three months ended June 30, 2025 as compared to $1,144,058 for the three months ended June 30, 2024, due primarily to decreased costs since the completion of the Phase 3 trial and subsequent shut down cost. In November 2024, the Company held a Type C meeting with the FDA to discuss the results of the Phase 3 study and to obtain the FDA’s view on development plans for Mino-Lok. The FDA provided clear, constructive, and actionable guidance during the discussion, underscoring a pathway to support a future New Drug Application (NDA) submission for Mino-Lok.

Research and development costs for Halo-Lido decreased by $25,602 to $3,994 for the three months ended June 30, 2025, as compared to $29,596 for the three months ended June 30, 2024 due to lower costs since the completion of the Phase 2 study in April 2023. Citius subsequently met with the FDA for an end of Phase 2 meeting to discuss next steps in the clinical development program.

20

Research and development costs for LYMPHIR were $1,455,600 during the three months ended June 30, 2025, as compared to $1,583,970 for the three months ended June 30, 2024 primarily related to a reduction of the costs of product validation studies.

We expect that research and development expenses will decrease in fiscal 2025 as we continue to focus on the commercialization of LYMPHIR and because we have completed the Phase 3 trial for Mino-Lok.

General and Administrative Expenses

For the three months ended June 30, 2025, general and administrative expenses were $4,447,008 as compared to $4,808,551 during the three months ended June 30, 2024. General and administrative expenses decreased by $361,543 in comparison with the prior period. Overall general and administrative expenses were consistent with the prior period. General and administrative expenses consist primarily of compensation costs, professional fees for legal, regulatory, accounting, and corporate development services, and investor relations expenses.

Stock-based Compensation Expense

For the three months ended June 30, 2025 stock-based compensation expense was $2,719,674 as compared to $3,061,763 for the three months ended June 30, 2024. Stock-based compensation expense includes $2,125,237 for the Citius Oncology plan for the three months ended June 30, 2025 and $1,957,000 for the Citius Oncology plan and $13,858 for the NoveCite Stock plan for the three months ended June 30, 2024. Stock-based compensation expense for the most recently completed quarter decreased by $342,089 in comparison to the prior period primarily due to lower costs for the Citius Pharma stock plans.

Other Income (Expense)

Interest income for the three months ended June 30, 2025 was $20,637 as compared to interest income of $204,843 for the prior period. The decrease is due to lower average investable balances of the remaining proceeds of our equity offerings in money market accounts.

Interest expense of $172,262 for the three months ended June 30, 2025 consists of $160,755 in interest expense under the payment agreement with Eisai and $11,507 in interest expense on the note payable.

Income Taxes

The Company recorded deferred income tax expense of $264,240 and $144,000 for the three months ended June 30, 2025 and 2024, respectively. Deferred income tax expense is related to the amortization for taxable purposes of our in-process research and development asset.

Net Loss

For the three months ended June 30, 2025, we incurred a net loss of $9,203,872, compared to a net loss for the three months ended June 30, 2024 of $10,573,336. The $1,369,464 decrease in the net loss was primarily due to the decreases of $1,142,540 in research and development and $361,543 in general and administrative expenses offset by the decrease in other income (expense) of $356,468.

Nine months ended June 30, 2025 compared with the nine months ended June 30, 2024

		Nine Months Ended June 30, 2025				Nine Months Ended June 30, 2024
Revenues		$	-			$	-
Operating expenses:
Research and development			7,514,888				8,991,673
General and administrative			14,626,882				12,755,190
Stock-based compensation expense			7,946,529				9,198,340
Total operating expenses			30,088,299				30,945,203
Operating loss			(30,088,299	)			(30,945,203	)
Interest income			56,658				640,686
Gain on sale of New Jersey net operating losses			-				2,387,842
Interest expense			(172,262	)			-
Loss before income taxes			(30,203,903	)			(27,916,675	)
Income tax expense			792,720				432,000
Net loss		$	(30,996,623	)		$	(28,348,675	)

21

Revenues

We did not generate any revenues for the nine months ended June 30, 2025 or 2024.

Research and Development Expenses

For the nine months ended June 30, 2025, research and development expenses were $7,514,888 as compared to $8,991,673 during the nine months ended June 30, 2024, a decrease of $1,476,785.

Research and development costs for Mino-Lok decreased by $3,044,652 to $669,317 for the nine months ended June 30, 2025 as compared to $3,673,969 for the nine months ended June 30, 2024, due primarily to decreased costs since the completion of the Phase 3 trial and subsequent shutdown costs. In November 2024, the Company held a Type C meeting with the FDA to discuss the results of the Phase 3 study and to obtain the FDA’s view on development plans for Mino-Lok. The FDA provided clear, constructive, and actionable guidance during the discussion, underscoring a pathway to support a future an NDA submission for Mino-Lok.

Research and development costs for Halo-Lido decreased by $463,448 to $14,690 for the nine months ended June 30, 2025 as compared to $478,138 the nine months ended June 30, 2024 due to lower costs since the completion of the Phase 2 study in April 2023. Citius subsequently met with the FDA for an end of Phase 2 meeting to discuss the next steps in the clinical development program.

Research and development costs for LYMPHIR were $6,824,619 during the nine months ended June 30, 2025 as compared to $4,817,350 for the nine months ended June 30, 2024. The $2,007,269 increase in expenses was primarily due to costs associated with the expense of a drug substance batch needed for the pre-license inspection of the manufacturer.

We expect that research and development expenses will continue to decrease in fiscal 2025 as we continue to focus on the commercialization of LYMPHIR and because we have completed the Phase 3 trial for Mino-Lok.

General and Administrative Expenses

For the nine months ended June 30, 2025, general and administrative expenses were $14,626,882 as compared to $12,755,190 during the nine months ended June 30, 2024. General and administrative expenses increased by $1,871,692 in comparison with the prior period. The primary reason for the increase were higher costs for pre-launch commercial activities associated with LYMPHIR. General and administrative expenses consist primarily of compensation costs, professional fees for legal, regulatory, accounting, and corporate development services, and investor relations expenses.

Stock-based Compensation Expense

For the nine months ended June 30, 2025 stock-based compensation expense was $7,946,529 as compared to $9,198,340 for the nine months ended June 30, 2024. Stock-based compensation expense includes $6,022,287 for the Citius Oncology plan for the nine months ended June 30, 2025 and $5,831,000 for the Citius Oncology plan and $47,574 for the NoveCite Stock plan for the nine months ended June 30, 2024. Stock-based compensation expense for the nine months ended June 30, 2025 decreased by $1,251,811 in comparison to the prior period primarily due to lower costs for the Citius Pharma stock plans.

Other Income (Expense)

Interest income for the nine months ended June 30, 2025 was $56,658 as compared to interest income of $640,686 for the prior period. The decrease is due to lower average investable balances of the remaining proceeds of our equity offerings in money market accounts. Other income for the nine months ended June 30, 2024 included a gain of $2,387,842 recognized in connection with the sale of certain New Jersey income tax net operating losses to a third party under the New Jersey Technology Business Tax Certificate Transfer Program.

Interest expense of $172,262 for the nine months ended June 30, 2025 consists of $160,755 in interest expense under the payment agreement with Eisai and $11,507 in interest expense on the note payable.

22

Income Taxes

The Company recorded deferred income tax expense of $792,720 and $432,000 for the nine months ended June 30, 2025 and 2024, respectively. Deferred income tax expense is related to the amortization for taxable purposes of our in-process research and development asset.

Net Loss

For the nine months ended June 30, 2025, we incurred a net loss of $30,996,623, compared to a net loss for the nine months ended June 30, 2024 of $28,348,675. The $2,647,948 increase in the net loss was primarily due to the increase of $1,871,692 in general and administrative expenses, the decrease in other income (expense) of $3,144,132 partially offset by lower research and development expense of $1,476,785 and lower stock-based compensation expense of $1,251,811.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity and Working Capital

Citius Pharma has incurred operating losses since inception and incurred a net loss of $30,996,623 for the nine months ended June 30, 2025. At June 30, 2025, Citius Pharma had an accumulated deficit of $230,844,841. Citius Pharma’s net cash used in operations during the nine months ended June 30, 2025 was $14,671,948.

The Company had a negative working capital of approximately $27.2 million at June 30, 2025. At June 30, 2025, Citius Pharma had cash and cash equivalents of $6,089,126 available to fund its operations. The Company’s only source of cash flow since inception has been from financing activities. During the nine months ended June 30, 2025, the Company received net proceeds of $16,509,194 from the issuance of equity and $1,000,000 from the issuance of a note payable. Our primary uses of operating cash have been for in-licensing of intellectual property, product development and commercialization activities, employee compensation, consulting fees, legal and accounting fees, insurance, and investor relations expenses.

Until Citius Oncology raises adequate capital through equity financings from outside investors and/or generates revenue from the future sales of LYMPHIR, Citius Pharma plans to continue to fund Citius Oncology. Citius Oncology has retained Jefferies LLC as its exclusive financial advisor in evaluating strategic alternatives aimed at maximizing shareholder value. There is no assurance, however, that Citius Oncology will be successful in raising the needed capital and, if funding is available, that it will be available on terms acceptable to it or that it will find strategic partners or generate substantial revenue from the sale of LYMPHIR.

On July 17, 2025, Citius Oncology completed a public offering of 6,818,182 shares of its common stock and warrants to purchase 6,818,182 shares of its common stock at $1.32 per share. The immediately exercisable five-year warrants have an exercise price of $1.32 per share. Gross proceeds from the offering, before deducting placement agent fees and other estimated offering expenses, were approximately $9.0 million. The net proceeds from the offering were approximately $7.44 million, after deducting placement agent fees and other offering expenses.

We need to obtain substantial additional financing in order to satisfy the outstanding milestone payment obligations for LYMPHIR, for which Citius Pharma is a guarantor of Citius Oncology’s obligations, as well as fund the minimum purchase commitments under the Citius Oncology agreements for the manufacture and supply of LYMPHIR, and cannot be sure that any additional funding will be available on terms favorable to us, or at all. As of June 30, 2025, these outstanding milestone payments and purchase commitments for 2025 include:

● Citius Oncology has agreed to pay Eisai on or before July 15, 2025, an aggregate amount of $2,535,318 and thereafter on the 15^th of each of the next four months $2,350,000 and make a final payment of $2,197,892 to Eisai on or before December 15, 2025, in each case with interest on each obligation from its original due date through the date of actual payment under the letter agreement at the rate of 2% per annum.

23

● At the time of the FDA approval for LYMPHIR, a $27.5 million milestone payment became payable to Dr. Reddy’s under the terms of the asset purchase agreement for which a balance of $22.5 million remains due as of June 30, 2025. Pending further discussions with Dr. Reddy’s, Dr. Reddy’s agreed to a partial deferral without penalty of this milestone payment.

● Citius Oncology has entered into an agreement with a contract manufacturing organization for the manufacture and supply of drug substance. Under this agreement Citius Oncology is obligated to purchase minimum annual quantities of batches at a set price per batch, subject to annual increases. As of June 30, 2025, the total minimum purchase commitment under this agreement was approximately $18.3 million, consisting of payments of $11.9 million and $5.4 million for calendar years 2025 and 2026, and $1.0 million for 2026 pass-throughs and consumable manufacturing components.

● As of June 30, 2025, Citius Oncology also has commercial supply agreements with two other vendors for the completion and packaging of finished drug products. Minimum purchase commitments under these two agreements amount to approximately $4.5 million consisting of purchase commitment obligations of $2.9 million in calendar years 2025 and $1.6 million in 2026.

After giving effect to the July 17, 2025 financing by Citius Oncology, we expect that we will have sufficient funds to continue our operations through September 2025. We will need to raise additional capital in the future to support our operations beyond September 2025. There is no assurance, however, that we will be successful in raising the needed capital or that the proceeds will be received in an amount or in a timely manner to support our operations.

Inflation

Our management believes that inflation has not had a material effect on our results of operations.

Off Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Critical Accounting Policies and Estimates

The preparation of our financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as of the date of the financial statements and the amounts of revenues and expenses recorded during the reporting periods. We base our estimates on historical experience, where applicable, and other assumptions that we believe are reasonable under the circumstances. Actual results may differ from our estimates under different assumptions or conditions.

Our critical accounting policies and use of estimates are discussed in, and should be read in conjunction with, the annual consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024, filed with the SEC on December 27, 2024, as amended on January 27, 2025.

24

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the specified time periods and accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding disclosure.

Our Chief Executive Officer (who is our principal executive officer) and Chief Financial Officer (who is our principal financial officer and principal accounting officer), evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act) as of June 30, 2025. In designing and evaluating disclosure controls and procedures, we recognize that any disclosure controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving the desired control objective. As of June 30, 2025, based on the evaluation of these disclosure controls and procedures, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms.

Changes In Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

25

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

There have been no material changes to the Company’s risk factors as disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2024, filed with the SEC on December 27, 2024, as amended on January 27, 2025, or in the Company’s Quarterly Report on Form 10-Q for the nine months ended June 30, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the quarter ended June 30, 2025, none of our directors or officers adopted or terminated any contract or written plan for the purchase or sale of our securities.

On August 7, 2025, the Board of Directors of the Company approved (i) an extension by one year to August 14, 2026 for warrants to purchase an aggregate of 156,863 shares of common stock with an exercise price of $28.75 per share and (ii) an extension by one year to September 27, 2026 for warrants to purchase an aggregate of 111,732 shares of common stock with an exercise price of $19.25 per share (collectively, the “Investor Warrants”). The Investor Warrants are held by Leonard Mazur, the Company’s Chief Executive Officer and Chairman of the Board of Directors, and Myron Holubiak, the Company’s Executive Vice President and member of the Board of Directors, and were originally issued in August 2018 in a private placement conducted simultaneously with a registered direct offering of shares of common stock (the “2018 Offering”) and in an underwritten offering conducted in September 2019 (the “2019 Offering”), respectively, each managed by H. C. Wainwright & Co., LLC (“Wainwright”). Mr. Mazur and Mr. Holubiak participated in the offerings on the same basis as all other investors. Additionally, 7,577 warrants with an exercise price of $39.8438 per share were issued to Wainwright in connection with the 2018 Offering (the “Placement Agent Warrants) and 7,774 warrants with an exercise price of $27.9719 per share were issued to Wainwright in connection with the 2019 Offering (the “Underwriter Warrants” and together with the Investor Warrants and the Placement Agent Warrants, the “Warrants”) were extended by one year to August 8, 2026 and September 27, 2026, respectively. The Placement Agent Warrants and the Underwriter Warrants are held by certain representatives of Wainwright or their assignees. The terms of the Warrants were previously extended in August 2023 and August 2024 and September 2024, respectively. There are no other Warrants remaining outstanding from the 2018 Offering or the 2019 Offering and if such Warrants are fully exercised, the Company would receive approximately $7.2 million in cash proceeds.

26

Item 6. Exhibits.

3.1		Amended and Restated Articles of Incorporation of Citius Pharmaceuticals, Inc. (incorporated by reference to Exhibit 3.1 to the Form 8-K filed on September 18, 2014).
3.2		Certificate of Amendment to the Amended and Restated Articles of Incorporation of Citius Pharmaceuticals, Inc., effective September 16, 2016 (incorporated by reference to Exhibit 3.1 to the Form 8-K filed on September 21, 2016).
3.3		Certificate of Amendment to the Amended and Restated Articles of Incorporation of Citius Pharmaceuticals, Inc., effective June 9, 2017 (incorporated by reference to Exhibit 3.1 to the Form 8-K filed on June 8, 2017).
3.4		Certificate of Designation of Series A Preferred Stock (incorporated by reference to Exhibit 3.1 to the Form 8-K filed on April 18, 2025).
3.5		Certificate of Amendment to the Articles of Incorporation of Citius Pharmaceuticals, Inc. dated June 9, 2025 (incorporated by reference to Exhibit 3.1 to the Form 8-K filed on June 9, 2025).
3.6		Amended and Restated Bylaws of Citius Pharmaceuticals, Inc. (incorporated by reference to Exhibit 3.1 to the Form 8-K filed on February 9, 2018).
3.7		Amendment to the Amended and Restated Bylaws of Citius Pharmaceuticals, Inc. (incorporated by reference to Exhibit 3.2 to the Form 8-K filed on April 17, 2025).
4.1		Form of Pre-Funded Warrant issued on April 2, 2025 (incorporated by reference to Exhibit 4.1 to the Form 8-K filed on April 2, 2025).
4.2		Form of Placement Agent Warrant issued on April 2, 2025 (incorporated by reference to Exhibit 4.2 to the Form 8-K filed on April 2, 2025).
4.3		Form of Warrant issued on June 11, 2025 (incorporated by reference to Exhibit 4.1 to the Form 8-K filed on June 12, 2025).
4.4		Form of Pre-Funded Warrant issued on June 11, 2025 (incorporated by reference to Exhibit 4.2 to the Form 8-K filed on June 12, 2025).
4.5		Form of Placement Agent Warrant issued on June 11, 2025 (incorporated by reference to Exhibit 4.3 to the Form 8-K filed on June 12, 2025).
10.1		Form of Securities Purchase Agreement, dated as of April 1, 2025, by and among Citius Pharmaceuticals, Inc. and the investor signatory thereto (incorporated by reference to Exhibit 10.1 to the Form 8-K filed on April 2, 2025).
10.2		Subscription and Investment Representation Agreement, dated April 17, 2025, by and between Citius Pharmaceuticals, Inc. and Leonard Mazur (incorporated by reference to Exhibit 10.1 to the Form 8-K filed on April 18, 2025).
10.3		Unsecured Promissory Note issued to PAGODA RESOURCES, INC. dated June 2, 2025 (incorporated by reference to Exhibit 10.1 to the Form 8-K filed on June 3, 2025).
10.4		Form of Securities Purchase Agreement, dated as of June 9, 2025, by and among Citius Pharmaceuticals, Inc. and the investor signatory thereto (incorporated by reference to Exhibit 10.1 to the Form 8-K filed on June 12, 2025).

27

31.1		Certification of the Principal Executive Officer pursuant to Exchange Act Rule 13a-14(a).*
31.2		Certification of the Principal Financial Officer pursuant to Exchange Act Rule 13a-14(a).*
32.1		Certification of the Principal Executive and Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.*
EX-101.INS		Inline XBRL Instance Document*
EX-101.SCH		Inline XBRL Taxonomy Extension Schema Document*
EX-101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document*
EX-101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document*
EX-101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document*
EX-101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document*
EX-104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*

* Filed herewith.

28

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CITIUS PHARMACEUTICALS, INC.
Date: August 12, 2025	By:	/s/ Leonard Mazur
		Leonard Mazur
		Chief Executive Officer (Principal Executive Officer)
Date: August 12, 2025	By:	/s/ Jaime Bartushak
		Jaime Bartushak
		Chief Financial Officer (Principal Financial and Accounting Officer)

29

0001506251 false Q3 --09-30 0001506251 2024-10-01 2025-06-30 0001506251 2025-08-11 0001506251 2025-06-30 0001506251 2024-09-30 0001506251 2025-04-01 2025-06-30 0001506251 2024-04-01 2024-06-30 0001506251 2023-10-01 2024-06-30 0001506251 us-gaap:PreferredStockMember 2024-09-30 0001506251 us-gaap:CommonStockMember 2024-09-30 0001506251 us-gaap:AdditionalPaidInCapitalMember 2024-09-30 0001506251 us-gaap:RetainedEarningsMember 2024-09-30 0001506251 us-gaap:ParentMember 2024-09-30 0001506251 us-gaap:NoncontrollingInterestMember 2024-09-30 0001506251 us-gaap:PreferredStockMember 2024-10-01 2024-12-31 0001506251 us-gaap:CommonStockMember 2024-10-01 2024-12-31 0001506251 us-gaap:AdditionalPaidInCapitalMember 2024-10-01 2024-12-31 0001506251 us-gaap:RetainedEarningsMember 2024-10-01 2024-12-31 0001506251 us-gaap:ParentMember 2024-10-01 2024-12-31 0001506251 us-gaap:NoncontrollingInterestMember 2024-10-01 2024-12-31 0001506251 2024-10-01 2024-12-31 0001506251 us-gaap:PreferredStockMember 2024-12-31 0001506251 us-gaap:CommonStockMember 2024-12-31 0001506251 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001506251 us-gaap:RetainedEarningsMember 2024-12-31 0001506251 us-gaap:ParentMember 2024-12-31 0001506251 us-gaap:NoncontrollingInterestMember 2024-12-31 0001506251 2024-12-31 0001506251 us-gaap:PreferredStockMember 2025-01-01 2025-03-31 0001506251 us-gaap:CommonStockMember 2025-01-01 2025-03-31 0001506251 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0001506251 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0001506251 us-gaap:ParentMember 2025-01-01 2025-03-31 0001506251 us-gaap:NoncontrollingInterestMember 2025-01-01 2025-03-31 0001506251 2025-01-01 2025-03-31 0001506251 us-gaap:PreferredStockMember 2025-03-31 0001506251 us-gaap:CommonStockMember 2025-03-31 0001506251 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0001506251 us-gaap:RetainedEarningsMember 2025-03-31 0001506251 us-gaap:ParentMember 2025-03-31 0001506251 us-gaap:NoncontrollingInterestMember 2025-03-31 0001506251 2025-03-31 0001506251 us-gaap:PreferredStockMember 2025-04-01 2025-06-30 0001506251 us-gaap:CommonStockMember 2025-04-01 2025-06-30 0001506251 us-gaap:AdditionalPaidInCapitalMember 2025-04-01 2025-06-30 0001506251 us-gaap:RetainedEarningsMember 2025-04-01 2025-06-30 0001506251 us-gaap:ParentMember 2025-04-01 2025-06-30 0001506251 us-gaap:NoncontrollingInterestMember 2025-04-01 2025-06-30 0001506251 us-gaap:PreferredStockMember 2025-06-30 0001506251 us-gaap:CommonStockMember 2025-06-30 0001506251 us-gaap:AdditionalPaidInCapitalMember 2025-06-30 0001506251 us-gaap:RetainedEarningsMember 2025-06-30 0001506251 us-gaap:ParentMember 2025-06-30 0001506251 us-gaap:NoncontrollingInterestMember 2025-06-30 0001506251 us-gaap:PreferredStockMember 2023-09-30 0001506251 us-gaap:CommonStockMember 2023-09-30 0001506251 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001506251 us-gaap:RetainedEarningsMember 2023-09-30 0001506251 us-gaap:ParentMember 2023-09-30 0001506251 us-gaap:NoncontrollingInterestMember 2023-09-30 0001506251 2023-09-30 0001506251 us-gaap:PreferredStockMember 2023-10-01 2023-12-31 0001506251 us-gaap:CommonStockMember 2023-10-01 2023-12-31 0001506251 us-gaap:AdditionalPaidInCapitalMember 2023-10-01 2023-12-31 0001506251 us-gaap:RetainedEarningsMember 2023-10-01 2023-12-31 0001506251 us-gaap:ParentMember 2023-10-01 2023-12-31 0001506251 us-gaap:NoncontrollingInterestMember 2023-10-01 2023-12-31 0001506251 2023-10-01 2023-12-31 0001506251 us-gaap:PreferredStockMember 2023-12-31 0001506251 us-gaap:CommonStockMember 2023-12-31 0001506251 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001506251 us-gaap:RetainedEarningsMember 2023-12-31 0001506251 us-gaap:ParentMember 2023-12-31 0001506251 us-gaap:NoncontrollingInterestMember 2023-12-31 0001506251 2023-12-31 0001506251 us-gaap:PreferredStockMember 2024-01-01 2024-03-31 0001506251 us-gaap:CommonStockMember 2024-01-01 2024-03-31 0001506251 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0001506251 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0001506251 us-gaap:ParentMember 2024-01-01 2024-03-31 0001506251 us-gaap:NoncontrollingInterestMember 2024-01-01 2024-03-31 0001506251 2024-01-01 2024-03-31 0001506251 us-gaap:PreferredStockMember 2024-03-31 0001506251 us-gaap:CommonStockMember 2024-03-31 0001506251 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0001506251 us-gaap:RetainedEarningsMember 2024-03-31 0001506251 us-gaap:ParentMember 2024-03-31 0001506251 us-gaap:NoncontrollingInterestMember 2024-03-31 0001506251 2024-03-31 0001506251 us-gaap:PreferredStockMember 2024-04-01 2024-06-30 0001506251 us-gaap:CommonStockMember 2024-04-01 2024-06-30 0001506251 us-gaap:AdditionalPaidInCapitalMember 2024-04-01 2024-06-30 0001506251 us-gaap:RetainedEarningsMember 2024-04-01 2024-06-30 0001506251 us-gaap:ParentMember 2024-04-01 2024-06-30 0001506251 us-gaap:NoncontrollingInterestMember 2024-04-01 2024-06-30 0001506251 us-gaap:PreferredStockMember 2024-06-30 0001506251 us-gaap:CommonStockMember 2024-06-30 0001506251 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0001506251 us-gaap:RetainedEarningsMember 2024-06-30 0001506251 us-gaap:ParentMember 2024-06-30 0001506251 us-gaap:NoncontrollingInterestMember 2024-06-30 0001506251 2024-06-30 0001506251 ctxr:LeonardMeronBiosciencesIncMember 2016-03-30 0001506251 ctxr:DelwareCorporationMember 2020-09-11 0001506251 ctxr:CitiusOncologyIncMember 2024-08-12 0001506251 ctxr:CitiusOncologyMember 2025-06-30 0001506251 srt:MinimumMember 2024-10-01 2025-06-30 0001506251 srt:MaximumMember 2024-10-01 2025-06-30 0001506251 us-gaap:RoyaltyMember srt:MinimumMember 2024-10-01 2025-06-30 0001506251 us-gaap:RoyaltyMember srt:MaximumMember 2024-10-01 2025-06-30 0001506251 ctxr:PatentAndTechnologyLicenseAgreementMinoLokMember 2024-10-01 2025-06-30 0001506251 srt:MaximumMember ctxr:PatentAndTechnologyLicenseAgreementMinoLokMember 2024-10-01 2025-06-30 0001506251 ctxr:NoveCiteMember ctxr:LicenseAgreementEternaMember 2021-09-30 2021-09-30 0001506251 ctxr:NoveCiteMember ctxr:LicenseAgreementEternaMember 2021-09-30 0001506251 ctxr:LicenseAgreementMember ctxr:LicenseAgreementEternaMember 2021-09-30 0001506251 ctxr:LicenseAgreementEternaMember 2025-06-30 0001506251 srt:MinimumMember ctxr:LicenseAgreementEternaMember 2024-10-01 2025-06-30 0001506251 srt:MaximumMember ctxr:LicenseAgreementEternaMember 2024-10-01 2025-06-30 0001506251 ctxr:DrReddysLaboratoriesLtdMember ctxr:LicenseAgreementWithEisaiMember 2024-10-01 2025-06-30 0001506251 ctxr:DrReddysLaboratoriesLtdMember ctxr:CTCLMember 2025-06-30 0001506251 srt:MaximumMember ctxr:LicenseAgreementWithEisaiMember 2025-06-30 0001506251 us-gaap:RoyaltyMember srt:MinimumMember ctxr:LicenseAgreementWithEisaiMember 2024-10-01 2025-06-30 0001506251 us-gaap:RoyaltyMember srt:MaximumMember ctxr:LicenseAgreementWithEisaiMember 2024-10-01 2025-06-30 0001506251 ctxr:LicenseAgreementWithEisaiMember 2024-10-01 2025-06-30 0001506251 ctxr:LYMPHIRMember 2024-10-01 2025-06-30 0001506251 ctxr:DrReddysLaboratoriesLtdMember 2025-06-30 0001506251 ctxr:CitiusPharmaMember us-gaap:SubsequentEventMember 2025-07-10 2025-07-10 0001506251 ctxr:CitiusOncologyMember us-gaap:SubsequentEventMember 2025-07-28 2025-07-28 0001506251 ctxr:CitiusOncologyMember 2025-06-30 0001506251 us-gaap:SubsequentEventMember ctxr:LicenseAgreementWithEisaiMember 2025-07-15 0001506251 us-gaap:SubsequentEventMember 2025-07-15 2025-07-15 0001506251 us-gaap:SubsequentEventMember 2025-07-15 0001506251 ctxr:LicenseAgreementMember us-gaap:SubsequentEventMember 2025-07-15 2025-07-15 0001506251 us-gaap:SubsequentEventMember 2025-07-21 0001506251 ctxr:LicenseAgreementWithEisaiMember 2025-06-30 0001506251 ctxr:FDAMember 2024-08-31 2024-08-31 0001506251 2024-08-31 2024-08-31 0001506251 2025-06-02 0001506251 ctxr:NotePayableMember 2024-10-01 2025-06-30 0001506251 2025-05-28 2025-05-28 0001506251 srt:MaximumMember 2025-06-30 0001506251 srt:MinimumMember 2025-06-30 0001506251 us-gaap:SeriesAPreferredStockMember 2025-04-17 2025-04-17 0001506251 us-gaap:SeriesAPreferredStockMember 2025-04-17 0001506251 ctxr:MrMazurMember us-gaap:SeriesAPreferredStockMember 2025-04-17 0001506251 srt:MinimumMember us-gaap:SeriesAPreferredStockMember 2025-04-17 0001506251 srt:MaximumMember us-gaap:SeriesAPreferredStockMember 2025-04-17 0001506251 us-gaap:SeriesAPreferredStockMember 2025-06-09 0001506251 us-gaap:CommonStockMember 2023-10-10 2023-10-10 0001506251 us-gaap:InvestorMember us-gaap:CommonStockMember 2023-10-10 2023-10-10 0001506251 ctxr:CommonStockOfferingsMember 2024-11-15 2024-11-15 0001506251 us-gaap:InvestorMember ctxr:CommonStockOfferingsMember 2024-11-15 0001506251 ctxr:CommonStockOfferingsMember 2024-11-15 0001506251 us-gaap:WarrantMember 2024-11-15 0001506251 ctxr:CommonStockOfferingsMember 2025-06-30 0001506251 us-gaap:WarrantMember ctxr:CommonStockOfferingsMember 2025-06-30 0001506251 us-gaap:WarrantMember us-gaap:CommonStockMember 2025-06-30 0001506251 ctxr:CommonStockOfferingsMember 2025-01-07 2025-01-07 0001506251 ctxr:CommonStockOfferingsMember 2025-01-07 0001506251 us-gaap:WarrantMember 2025-01-07 0001506251 ctxr:CommonStockOfferingsMember 2024-10-01 2025-06-30 0001506251 us-gaap:WarrantMember 2025-06-30 0001506251 us-gaap:WarrantMember ctxr:CommonStockIssuedForServicesMember 2025-06-30 0001506251 us-gaap:CommonStockMember 2025-04-01 2025-04-01 0001506251 ctxr:PrefundedWarrantsMember ctxr:CommonStockOfferingsMember 2025-04-01 0001506251 us-gaap:CommonStockMember 2025-04-01 0001506251 ctxr:PrefundedWarrantsMember 2025-04-01 0001506251 2025-04-01 2025-04-01 0001506251 ctxr:PrefundedWarrantsMember us-gaap:CommonStockMember 2025-04-01 0001506251 ctxr:PrefundedWarrantsMember 2025-04-01 2025-06-30 0001506251 ctxr:PlacementAgentWarrantsMember us-gaap:CommonStockMember 2025-06-30 0001506251 ctxr:PlacementAgentWarrantsMember 2025-06-30 0001506251 us-gaap:CommonStockMember 2024-10-01 2025-06-30 0001506251 us-gaap:CommonStockMember 2025-06-11 2025-06-11 0001506251 ctxr:PrefundedWarrantsMember 2025-06-11 0001506251 us-gaap:CommonStockMember 2025-06-11 0001506251 ctxr:PrefundedWarrantsMember 2025-01-11 0001506251 2025-01-11 2025-01-11 0001506251 ctxr:PrefundedWarrantsMember us-gaap:CommonStockMember 2025-01-11 0001506251 ctxr:PrefundedWarrantsMember us-gaap:CommonStockMember 2025-04-01 2025-06-30 0001506251 ctxr:PrefundedWarrantsMember 2025-06-11 2025-06-11 0001506251 us-gaap:WarrantMember 2025-06-11 0001506251 ctxr:AtTheMarketOfferingAgreementMember 2025-01-01 2025-03-31 0001506251 ctxr:AtTheMarketOfferingAgreementMember 2025-04-01 2025-06-30 0001506251 ctxr:StockIncentivePlanMember 2025-06-30 0001506251 ctxr:StockIncentivePlanMember 2024-10-01 2025-06-30 0001506251 ctxr:TwoThousandEighteenOmnibusStockIncentivePlanMember 2025-06-30 0001506251 ctxr:TwoThousandEighteenOmnibusStockIncentivePlanMember 2024-10-01 2025-06-30 0001506251 ctxr:TwoThousandAndTwentyOmnibusStockIncentivePlanMember 2025-06-30 0001506251 ctxr:TwoThousandTwentyMember 2025-06-30 0001506251 ctxr:TwoThousandTwentyMember 2024-10-01 2025-06-30 0001506251 ctxr:TwoThousandAndTwentyOneOmnibusStockIncentivePlanMember 2025-06-30 0001506251 ctxr:TwoThousandTwentyOneStockPlanMember 2025-06-30 0001506251 ctxr:TwoThousandTwentyOneStockPlanMember 2024-10-01 2025-06-30 0001506251 ctxr:TwoThousandTwentyThreeOmnibusStockIncentivePlanMember 2025-06-30 0001506251 ctxr:TwoThousandTwentyThreeStockPlanMember 2025-06-30 0001506251 ctxr:TwoThousandTwentyThreeStockPlanMember 2024-10-01 2025-06-30 0001506251 us-gaap:StockOptionMember 2024-10-01 2025-06-30 0001506251 ctxr:EmployeesMember 2024-11-07 2024-11-07 0001506251 ctxr:DirectorsStockPlanMember 2024-11-07 2024-11-07 0001506251 ctxr:ConsultantStockPlanMember 2024-11-07 2024-11-07 0001506251 ctxr:ConsultantStockPlanMember 2024-11-07 0001506251 us-gaap:StockOptionMember 2025-06-30 0001506251 us-gaap:StockOptionMember ctxr:CitiusOncologyPlanMember 2024-10-01 2025-06-30 0001506251 ctxr:NoveCitePlanMember 2020-11-05 0001506251 ctxr:NoveCitePlanMember 2025-06-30 0001506251 ctxr:NoveCitePlanMember 2024-10-01 2025-06-30 0001506251 ctxr:CitiusOncologyPlanMember 2023-04-29 0001506251 ctxr:OmnibusStockIncentivePlan2024Member 2024-08-02 0001506251 ctxr:CitiusOncologyPlanMember 2024-10-01 2025-06-30 0001506251 srt:MinimumMember ctxr:CitiusOncologyPlanMember 2024-10-01 2025-06-30 0001506251 srt:MaximumMember ctxr:CitiusOncologyPlanMember 2024-10-01 2025-06-30 0001506251 ctxr:CitiusOncologyPlanMember 2025-06-30 0001506251 ctxr:CitiusOncologyPlanMember 2025-04-01 2025-06-30 0001506251 ctxr:CitiusOncologyPlanMember 2024-04-01 2024-06-30 0001506251 ctxr:NoveCitePlanMember 2024-04-01 2024-06-30 0001506251 ctxr:NoveCitePlanMember 2025-04-01 2025-06-30 0001506251 ctxr:CitiusOncologyPlanMember 2023-10-01 2024-06-30 0001506251 ctxr:NoveCitePlanMember 2023-10-01 2024-06-30 0001506251 srt:BoardOfDirectorsChairmanMember us-gaap:WarrantMember 2024-04-03 0001506251 srt:BoardOfDirectorsChairmanMember us-gaap:CommonStockMember 2024-04-03 0001506251 us-gaap:WarrantMember 2024-04-03 0001506251 2024-04-03 2024-04-03 0001506251 srt:ScenarioForecastMember 2025-10-02 0001506251 ctxr:StockOptionPlansMember 2024-09-30 0001506251 ctxr:StockOptionPlansMember 2024-09-30 2024-09-30 0001506251 ctxr:StockOptionPlansMember 2024-10-01 2025-06-30 0001506251 ctxr:StockOptionPlansMember 2025-06-30 0001506251 ctxr:StockOptionPlansMember ctxr:CitiusOncologyMember 2024-09-30 0001506251 ctxr:StockOptionPlansMember ctxr:CitiusOncologyMember 2024-09-30 2024-09-30 0001506251 ctxr:StockOptionPlansMember ctxr:CitiusOncologyMember 2024-10-01 2025-06-30 0001506251 ctxr:StockOptionPlansMember ctxr:CitiusOncologyMember 2025-06-30 0001506251 ctxr:August2018OfferingInvestorsMember 2025-06-30 0001506251 ctxr:August2018OfferingAgentMember 2025-06-30 0001506251 ctxr:September2019OfferingInvestorsMember 2025-06-30 0001506251 ctxr:September2019OfferingUnderwriterMember 2025-06-30 0001506251 ctxr:February2020ExerciseAgreementAgentMember 2025-06-30 0001506251 ctxr:May2020OfferingInvestorsMember 2025-06-30 0001506251 ctxr:August2020UnderwriterMember 2025-06-30 0001506251 ctxr:January2021OfferingInvestorsMember 2025-06-30 0001506251 ctxr:January2021OfferingAgentMember 2025-06-30 0001506251 ctxr:February2021OfferingInvestorsMember 2025-06-30 0001506251 ctxr:February2021OfferingAgentMember 2025-06-30 0001506251 ctxr:May2023OfferingInvestorsMember 2025-06-30 0001506251 ctxr:May2023OfferingAgentMember 2025-06-30 0001506251 ctxr:April2024OfferingInvestorsMember 2025-06-30 0001506251 ctxr:April2024OfferingAgentMember 2025-06-30 0001506251 ctxr:November2024OfferingInvestorsMember 2025-06-30 0001506251 ctxr:November2024OfferingAgentMember 2025-06-30 0001506251 ctxr:January2025OfferingInvestorsMember 2025-06-30 0001506251 ctxr:January2025OfferingAgentMember 2025-06-30 0001506251 ctxr:April2025OfferingAgentMember 2025-06-30 0001506251 ctxr:June2025OfferingInvestorMember 2025-06-30 0001506251 ctxr:June2025OfferingInvestorOneMember 2025-06-30 0001506251 ctxr:June2025OfferingAgentMember 2025-06-30 0001506251 ctxr:CommonStockReservedMember 2025-06-30 0001506251 ctxr:CommercialManufacturingContractsMember 2024-10-01 2025-06-30 0001506251 ctxr:CommercialManufacturingContractsMember 2025-06-30 0001506251 ctxr:CitiusOncologyMember 2025-06-30 0001506251 us-gaap:SubsequentEventMember 2025-07-08 0001506251 ctxr:PrefundedWarrantsMember us-gaap:SubsequentEventMember 2025-07-01 2025-07-01 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure

FAQ

What was Citius Pharmaceuticals (CTXR) net loss for the nine months ended June 30, 2025?

The company reported a net loss of $30,996,623 for the nine months ended June 30, 2025.

How much cash and inventory did CTXR hold at June 30, 2025?

At June 30, 2025 Citius held $6,089,126 in cash and cash equivalents and $17,208,967 in inventory (finished goods and work in process).

Does the 10‑Q disclose any going‑concern or runway issues for CTXR?

Yes. The company states it has substantial doubt about its ability to continue as a going concern and estimates available cash will fund operations only through September 2025 without additional financing.

What material milestone or license payables does CTXR have?

Material obligations include a $28.4 million license payable and a remaining $22.5 million milestone balance owed to Dr. Reddy’s as of June 30, 2025 (partially deferred by agreement).

Has CTXR taken steps toward commercializing LYMPHIR?

Yes. The company built inventory for LYMPHIR, entered a distribution services agreement with Cardinal Health, announced readiness for a planned U.S. launch in Q4 2025, and later executed a distribution agreement with Cencora.

How much cash did CTXR raise during the period to extend its runway?

Net proceeds from common stock offerings were approximately $16,509,194 and net cash provided by financing activities totaled $17,509,194 for the nine months ended June 30, 2025.