During the three months ended December 31, 2025, management committed to a plan to discontinue or pause, as the case may be, its research and development activities while it seeks to identify a partner with which to execute a strategic merger and/or such other transaction(s), if any, for the benefit of existing shareholders of Neuphoria. As part of the restructuring initiative, the Company terminated its facility leases, wrote off the remaining carrying value of the right-of-use asset, derecognized the associated operating lease liability, and terminated substantially all of its employees. A liability equivalent to the derecognized lease liability has been included in Accrued restructuring expenses (see Notes 6 and 9). The write-offs are included in Restructuring costs in the condensed consolidated statements of operations and other comprehensive income (loss) for the three and six months ended December 31, 2025.

Included in total restructuring costs are the following expenses:


	Three and Six Months Ended December 31, 2025
Employee termination costs	$	1,411,955
Impairment of right-of-use asset		47,608
Other restructuring costs		395,580
Refundable credits on contract terminations		(618,971	)
Total restructuring costs	$	1,236,172

Restructuring reserves included in Accrued expenses and other current liabilities on the condensed consolidated balance sheet are as follows:


	Restructuring Costs
Restructuring liability at September 30, 2025	$	-
Restructuring costs		1,236,172
Restructuring payments		(973,326	)
Restructuring liability at December 31, 2025	$	262,846