Note 3 - Intangible Assets

9 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

3. Intangible Assets

Acquired license

In April 2020, the Company entered into a license agreement with a pharmaceutical development company to obtain exclusive world-wide rights to know-how, patents and data relating to certain monoclonal antibodies (the Constructs), including sublicensing rights. Unless earlier terminated, the term of the license agreement will remain in effect for 25 years from the date of first commercial sale of licensed products containing the Constructs. Subsequently, the license agreement will automatically renew for five-year periods unless either party terminates the agreement in accordance with its terms.

Under the license agreement, the Company is exclusively responsible, at its expense, for the research, development, manufacture, marketing, distribution and commercialization of the Constructs and licensed products and to obtain all necessary licenses and rights. The Company is required to use commercially reasonable efforts to develop and commercialize the Constructs in accordance with the terms of a development plan established by the parties.

The Company has determined that the license has multiple alternative future uses in research and development projects and sublicensing in other countries or for other disease indications. The value of the acquired license is recorded as an intangible asset with amortization over the estimated useful life of 25 years and evaluation for impairment at the end of each reporting period.

The required upfront license payment of $2.5 million was paid by issuance of Series A-1 Convertible Preferred Shares, which have been fully converted to common shares. The value of the license includes acquisition legal costs. See Note 5 for license commitments.

Intangible assets, net consisted of the following:

	June 30, 2025			September 30, 2024
The Constructs	$	2,529,483		$	2,529,483
Less: accumulated amortization		(526,514	)		(450,635	)
Total intangible assets, net	$	2,002,969		$	2,078,848

Amortization expense amounted to $0.03 million for each of the three months ended June 30, 2025 and June 30, 2024 and $0.08 million for each of the nine months ended June 30, 2025 and June 30, 2024.

Total estimated future amortization of intangible assets for each fiscal year is as follows:

Year Ending
September 30, 2025	$	25,293
September 30, 2026		101,172
September 30, 2027		101,172
September 30, 2028		101,172
September 30, 2029		101,172
Thereafter		1,572,988
	$	2,002,969