Appili Therapeutics Reports Financial and Operational Results for Second Quarter of Fiscal Year 2027

(OTC:APLIF) Appili Therapeutics Inc. announced its financial and operational results for the second quarter of fiscal year 2027, ending September 30, 2026. The company is repositioning as a National Security Healthcare company focused on acquiring and advancing medical technologies for military personnel, national resilience, and critical healthcare needs. Dr. Don Cilla, President and CEO, stated that Appili will pursue this strategy with disciplined capital allocation, leveraging partnerships and non-dilutive funding. For ATI-1801, a topical formulation of paromomycin for cutaneous leishmaniasis, the FDA has provided positive feedback on the scientific bridging strategy, resulting in a clearly defined registration pathway to support an NDA submission. ATI-1801 is potentially eligible for a Priority Review Voucher (PRV) upon FDA approval, which could occur as early as the fourth quarter of 2029, subject to securing requisite funding. Recent PRV transactions have reached US$200 million. LIKMEZ (ATI-1501), Appili's metronidazole oral suspension commercialized by Saptalis Pharmaceuticals, has shown sales growth since its re-launch in May 2025. Additional patents for LIKMEZ were published in April 2025 in the U.S. and Mexico, with protection extending through 2039. All amounts owing under the Bloom Burton Loan, with accrued and unpaid interest, are due December 31, 2026. On October 31, 2026, Appili and Long Zone Holdings extended repayment of outstanding obligations to November 30, 2026, and the lender waived the TSX listing requirement conditional on continued NEX listing as of November 30, 2026. A conditional waiver fee of $18,000 is payable upon completion of a $350,000 financing. For the six months ending September 30, 2026, Appili reported a net and comprehensive loss of $3.5 million ($0.03 per share), an increase of $1.3 million compared to a net loss of $2.2 million ($0.02 per share) for the same period in 2025. The higher loss was due to a $0.5 million reduction in government assistance, a $0.3 million increase in financing costs, a $0.4 million decrease in foreign exchange gains, and a $0.5 million increase in administrative expenses, partially offset by a $0.4 million decrease in research and development expenses. As of September 30, 2026, the cash balance was $0.4 million, up from $0.04 million as of March 31, 2026. Bloom Burton & Co. made $1.2 million of non-interest bearing, unsecured cash advances to Appili in the six months ended September 30, 2026. Bloom Burton is a related party, and these advances are considered a related party transaction under MI 61-101, with Appili relying on exemptions from formal valuation and minority shareholder approval. As of September 30, 2026, Appili had 132,366,120 issued and outstanding Common Shares, 12,895,281 stock options, and 41,368,000 warrants outstanding. Subsequent to September 30, 2026, the Chief Development Officer stepped down and three employees were laid off.