Mr. Don Cilla reports

APPILI THERAPEUTICS ANNOUNCES RECEIPT FROM NIAID OF A NOTICE OF TERMINATION FOR CONVENIENCE ON THE CONTRACT FOR THE VXV-01 PROGRAM

Appili Therapeutics Inc. has received a notice of termination for convenience from the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH), in connection with the company's contract supporting development of the VXV-01 fungal vaccine candidate.

The notice relates to contract No. 75N93025C00033, which was awarded in October, 2025. The five-year contract consists of a base period and 12 option periods, of which a 22-month base period of performance totalling $3.6-million (U.S.) had been awarded. Appili is currently assessing the scope and potential implications of this notice.

The company remains focused on maximizing value from ATI-1801, its priority review voucher (PRV) eligible program targeting cutaneous leishmaniasis. As a late-stage asset with a well-defined development pathway, ATI-1801 represents a key opportunity for both near-term value creation and potential PRV monetization. The company is actively pursuing discussions to support the next stage of development and advance the program toward the clinic.

Appili continues to benefit from its commercial portfolio through royalty revenue generated by Likmez, reinforcing its commitment to building sustainable revenue. The company continues to evaluate strategic collaborations and non-dilutive funding opportunities that leverage its infectious disease expertise.

Update on non-dilutive funding proposals

Appili continues to pursue non-dilutive funding to support its infectious disease and biodefense pipeline. The company has been awarded more than $75-million (U.S.) in cumulative government funding since inception and remains actively engaged in additional non-dilutive funding proposals.

Management believes this focused strategy positions the company to efficiently deploy capital while advancing opportunities capable of generating meaningful long-term shareholder value. Appili remains committed to its mission of developing and commercializing products that address important unmet needs in infectious diseases while maintaining a disciplined approach to capital allocation.

About Appili Therapeutics Inc.

Appili Therapeutics is a biopharmaceutical company that is purposefully built, portfolio driven and people focused to fulfill its mission of solving life-threatening infections. By systematically identifying urgent infections with unmet needs, Appili's goal is to strategically develop a pipeline of novel therapies to prevent deaths and improve lives. The company is currently advancing a diverse range of anti-infectives, including a Food and Drug Administration-approved ready-made suspension of metronidazole for the treatment of antimicrobial resistant infections, a vaccine candidate to prevent tularemia, a serious biological weapon threat, and a topical antiparasitic for the treatment of cutaneous leishmaniasis, a disfiguring disease. Led by a proven management team, Appili is at the centre of the global fight against infection.

We seek Safe Harbor.