Note 10. Subsequent Events

Issuance of Shares to Former CEO

During the fiscal year ended May 31, 2022, the employment of our CEO was terminated. Under the terms of the employment agreement, the Company was obligated to pay severance equal to 18 months of salary. As permitted by the employment agreement, in March 2022, the Board authorized the severance payments to be made through the issuance of shares of common stock. During September and October, the Company issued a total of 80,816 shares of common stock in satisfaction of the severance amounts due during September 2022. The numbers of shares issued were based on the closing price of the common stock on the applicable dates.

In September 2022, the Company appointed to its Scientific Advisory Board (“SAB”): Dr. Jordan Lake to assist with trial design for HIV/NASH and identifying collaborative opportunities, Dr. Stefan Glück to assist with identifying partners, trial design, identifying collaborations, and opportunities in oncology, and Dr. Nueto Ueno to assist with trial design and identifying opportunities for collaboration in oncology. The Company issued 50,000 options for shares of common stock to each SAB member in consideration for their annual service on the SAB.

On September 6, 2022, the Board’s Compensation Committee approved, under the Company’s 2012 Plan, grants of fully vested nonqualified stock options to purchase shares of common stock to three of the Company’s nonemployee directors for their service during the fiscal year ended May 31, 2022, as follows: Tanya Durkee Urbach, 112,500 shares; Lishomwa Ndhlovu, 112,500 shares; and Karen J. Brunke, 37,500 shares. The Compensation Committee also approved, under the 2012 Plan, grants of nonqualified stock options to purchase shares of common stock to the Company’s four nonemployee directors as of September 6, 2022, for service during the fiscal year ending May 31, 2023, as follows; each of Ms. Urbach, Dr. Brunke, and Dr. Ndhlovu, 247,111 shares, of which 25% were fully vested on the grant date and the balance will vest in nine equal monthly installments beginning on October 1, 2022, subject to continuous service (as defined in the 2012 Plan) through the applicable vesting date; and Ryan Dunlap, 185,333 shares, vesting in nine equal monthly installments beginning on October 1, 2022, subject to continuous service through the applicable vesting date. Dr. Ndhlovu was also granted a fully vested nonqualified stock option to purchase 50,000 shares of common stock for

service on the Company’s Scientific Advisory Board beginning in July 2021. All of the stock options have an exercise price of $0.50 per share and a 10-year term.

On September 20, 2022, the Board’s Compensation Committee approved the grant of equity awards under the Company’s 2012 Plan to its President in accordance with the terms of his employment agreement as follows: (i) nonqualified stock options to purchase 1,575,557 shares of common stock at an exercise price of $0.58 per share, with 25% of the options vesting on July 9, 2023, and the balance in 36 equal monthly installments thereafter, subject to continuous service through the applicable vesting date; (ii) RSUs relating to 646,552 shares of common stock vesting in four equal annual installments beginning July 9, 2023, also subject to continuous service through the applicable vesting date; and (iii) PSUs relating to 646,552 shares of common stock, with vesting subject to the attainment of performance goals approved by the Compensation Committee.

Also on September 20, 2022, the Compensation Committee approved the grant of nonqualified stock options under the 2012 Plan to the Company’s CFO to purchase 630,222 shares of common stock at an exercise price of $0.58 per share, with 25% of the options vesting on January 24, 2023, and the balance in 36 equal monthly installments thereafter, subject to continuous service through the applicable vesting date, as additional compensation for his service as interim President from January 24, 2022, through July 9, 2022.