NASDAQ: SCNX

Our
fiscal year ends on December 31st. Interim results are presented on a quarterly basis for the quarters ended March 31st, June 30th, and
September 30th, the first quarter, second quarter and third quarter, respectively, with the quarter ending December 31st being referenced
herein as our fourth quarter. “Fiscal 2025” means the Fiscal year ended December 31, 2025, whereas “Fiscal 2024”
means the year ended December 31, 2024.

Unless
the context requires otherwise, references to the “Company,” “we,” “us,” and “our” refer
specifically to Scienture Holdings, Inc., and its consolidated subsidiaries.

Available
Information

We
file annual, quarterly, and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the
public over the Internet at the SEC’s website at http://www.sec.gov and are available for download, free of charge, soon after
such reports are filed with or furnished to the SEC, on the “Investors” page of our website at www.scientureholdings.com.
Copies of documents filed by us with the SEC are also available from us without charge, upon oral or written request to our Secretary,
who can be contacted at the address and telephone number set forth on the cover page of this Annual Report. Our website addresses are
www.scientureholdings.com, www.scienture.com, www.trxadehealth.com and www.rxintegra.com. The information on, or that may be accessed through, our websites is not, and shall not be deemed to be, part of this Annual Report or incorporated by reference into any other filings
we make with the SEC, except as expressly set forth by specific reference in any such filings. All website addresses in this Annual Report
are intended to be inactive textual references only.

Current
Business – Scienture LLC

Overview

Scienture
LLC was originally incorporated in Delaware and commenced operations in 2019. In connection with our acquisition in July 2024, Scienture
LLC became a wholly owned subsidiary of the Company. Scienture’s principal executive offices are located in Commack, New York.

Scienture
LLC is a specialty pharmaceutical company focused on the commercialization and development of products for the treatment of cardiovascular
(“CVS”) and Central Nervous System (“CNS”) diseases. Scienture LLC launched its first commercial product for hypertension and is in the process
of commercializing its second product for the treatment of opioid overdose. Its development pipeline consists of a broad range of novel
product candidates including new potential treatments for migraine, thrombosis, pain and other related disorders.

Scienture
LLC’s Strategy

Scienture
LLC’s mission is to improve the lives of patients suffering from CNS and CVS diseases. Scienture LLC’s vision is to be a
leader in the industry by commercializing and developing new medicines for the treatment of CNS and CVS diseases. Key elements of Scienture
LLC’s strategy to achieve this vision include:

●
Advance
product candidates through clinical studies and toward commercialization. Scienture LLC is in various stages of clinical development
for the product candidates in its pipeline, and it intends to move these programs efficiently toward being commercially available
to patients, subject to approval by the U.S. Food and Drug Administration (the “FDA”). Scienture LLC obtained regulatory
approval of its first product candidate, SCN-102 (ArbliTM) in the first quarter of 2025.

●
Drive
growth and profitability. Using dedicated sales and marketing resources in the U.S., Scienture LLC will seek to drive the revenue
growth of its product candidates approved for marketing by the FDA and will also evaluate and seek additional commercial ready product
opportunities through acquisitions and partnerships to expand its marketed portfolio. Scienture, LLC completed the acquisition of
the commercial ready product asset REZENOPYTM in the first quarter of 2025.

●
Target strategic business development opportunities.
Scienture LLC is exploring a broad range of strategic opportunities. This may include acquiring, in-licensing and entering into
co-promotion partnerships for commercial products to expand its marketed portfolio.

●
Continue
to grow its development pipeline. Scienture LLC will continue to evaluate and seek to develop additional product candidates that
it believes have significant commercial potential through Scienture LLC’s internal research and development efforts and through
co-development partnerships.

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Commercial Product Portfolio

Scienture LLC is committed to
building and leveraging its strong commercial platform and infrastructure to launch its FDA approved product candidates in the U.S. The progress of Scienture LLC’s
products through this process is represented in the table below.

ArbliTM (SCN-102 - Losartan Potassium
Oral Suspension, 10mg/mL)

ArbliTM (SCN-102)
is an oral liquid formulation of losartan potassium in development under the 505(b)(2) pathway, for (i) treatment of hypertension, to
lower blood pressure in adults and children greater than 6 years old, (ii) reduction of the risk of stroke in patients with hypertension
and left ventricular hypertrophy, and (iii) treatment of diabetic nephropathy with an elevated serum creatinine and proteinuria in patients
with type 2 diabetes and a history of hypertension. Currently, there are no FDA-approved liquid formulations of losartan potassium.

ArbliTM (SCN-102)
is the first and only FDA approved oral liquid formulation of losartan on the market. Scienture LLC submitted an Investigational New
Drug (“IND”) application to the FDA in September 2022. Multiple human pharmacokinetics studies were performed, showing close
comparability with the oral solid dosage form. In October 2023, Scienture LLC submitted a New Drug Application (“NDA”) for
losartan potassium oral suspension to the FDA. In December 2023, the FDA accepted the NDA for review and assigned a Prescription Drug
User Fee Act (“PDUFA”) target action date of August 19, 2024. Despite responding during the FDA’s review to information
requests related to chemistry, manufacturing, and controls (“CMC”), pharmacovigilance, clinical, microbiology and labeling,
the FDA issued a Complete Response Letter to Scienture LLC focused on the CMC information submitted. Scienture LLC prepared the requested
information and resubmitted the NDA to the FDA on September 17, 2024. In October 2024, the FDA accepted the resubmitted NDA for review
and assigned a PDUFA target action date of March 17, 2025. On March 13, 2025, the FDA approved the SCN-102 NDA to be launched as ARBLITM
(losartan potassium) Oral Suspension, 10mg/mL. Scienture LLC commercially launched the product in the third quarter of 2025. ArbliTM
(SCN-102) is the first FDA approved oral liquid formulation of losartan on the market.

A
Phase I PK study has shown that SCN-102 has close comparability to the immediate-release tablet as depicted in the data below:

Summary
of Statistical Results for Losartan Potassium Oral Liquid 10 mg/ml (T) versus Losartan Potassium Immediate Release Tablets 100 mg
(R) – For Losartan

Geometric
Means of treatment:

Ratio

Intra-subject

90%

SABE
Result –

SABE

PK
Parameter

N

Test
(T)

Reference
(R)

(%)

%CV

CI
of Ratio

Bound

SWR

Log
Cmax (ng/ml)

44

1317.6955

974.6741

135.19

39.6

122.19
– 149.58

0.070

0.3361

LogAUC0-t
(ng.hr/ml)

44

1590.6271

1581.0602

100.61

13.2

97.25
– 104.08

-0.014

0.1576

LogAUC0-inf
(ng.hr/ml)

44

1615.4717

1605.3052

100.63

13.0

97.34
– 104.03

-0.014

0.1549

Summary
of Statistical Results for Losartan Potassium Oral Liquid 10 mg/ml (T) versus Losartan Potassium Immediate Release Tablets 100 mg
(R) – For Carboxylic Acid Metabolite

Geometric
Means of treatment:

Ratio

Intra-subject

90%

SABE
Result –

SABE

PK
Parameter

N

Test
(T)

Reference
(R)

(%)

%CV

CI
of Ratio

Bound

SWR

Log
Cmax (ng/ml)

44

1160.0978

1056.3253

109.82

25.5

102.91
– 117.20

-0.028

0.2828

LogAUC0-t
(ng.hr/ml)

44

6775.8841

6726.8952

100.73

10.3

98.11
– 103.42

-0.006

0.1099

LogAUC0-inf
(ng.hr/ml)

44

6872.6739

6823.3736

100.72

10.2

98.13
– 103.39

-0.006

0.1071

Specifically,
the Phase I PK study showed that SCN-102 was comparable to immediate release tablets based on the following:

●
The
overall exposure for the Carboxylic Acid metabolite (EXP-3174) meet the confidence interval 80-125% range.

●
The
overall exposure for Losartan were within the 90% confidence interval.

●
The
Cmax for Losartan analyte, a pro-drug, for SCN-102 was slightly higher than the immediate release tablets (122.19 - 149.58%). This
is due to the fact that the SCN-102 (oral liquid) and the reference product are two different dosage forms. SCN-102 is an oral liquid
formulation and therefore it is expected to have an earlier Cmax than the immediate release tablet. Based on the discussion above,
we believe that the impact of this Cmax difference will be minimal.

●
The
data obtained in the study is similar to the PK study data for the immediate release tablet.

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REZENOPYTM
(SCN-110 – Naloxone HCl Nasal Spray, 10mg)

Scienture
LLC entered into an Exclusive Commercial and Supply Agreement (the “Kindeva Agreement”) with Summit Biosciences Inc.,
a wholly-owned subsidiary of Kindeva, on March 4, 2025, pursuant to which Kindeva granted Scienture LLC an exclusive, non-transferrable,
non-sublicensable right and license to commercialize REZENOPYTM (Nalaxone HCI nasal spray 10mg/0.11mL) within the United States
and its territories. Scienture LLC intends to use the exclusive right and license to price, launch, promote, market, distribute, and
educate the public on REZENOPYTM.

In
a pharmacokinetic study in 30 healthy adult subjects, the relative bioavailability of one nasal spray of a 10 mg total dose (0.11
mL of 91 mg/mL naloxone hydrochloride solution) was compared to a single dose of 0.4 mg naloxone hydrochloride intramuscular injection
and a single dose of 2 mg naloxone hydrochloride intravenous injection. The studies showed that REZENOPYTM provided exposures
comparable to the reference treatments, supporting the efficacy of the product. The studies further demonstrated the safety and tolerability
of the product, including testing to evaluate nasal irritation and impact on olfactory ability.

Research
and Development Pipeline

Scienture
LLC is committed to the development of innovative product candidates in the CNS and CVS therapeutic areas. The process by which Scienture
LLC intends to bring its product candidates to market and the anticipated launch dates of its product candidates is depicted in the following
table.

Scienture LLC is
engaged in a variety of research and development efforts including development of a pipeline of novel product candidates for the treatment
of various disease conditions. Scienture LLC has devoted and will continue to devote significant resources to research and development
activities, and expects to incur significant expenses as it continues advancing its product candidates towards FDA approval
and expanding product indications for approved products and its intellectual property portfolio. Scienture LLC’s expectations regarding
its research and development programs are subject to risks, including the risk that Scienture LLC’s financial condition and results
of operations may be materially and adversely affected by delays and failures in the completion of clinical
development of its product candidates, which could increase its costs or delay or limit our ability to generate revenues.

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SCN-104
(Multi-dose Dihydroergotamine Mesylate (“DHE”) injection pen)

The
SCN-104 injection pen is a disposable, multiple fixed dose, single entity combination product comprised of a small molecule drug, SCN-104,
which is administered using a customized injection pen. SCN-104 is a drug product containing DHE as the active ingredient. The mechanism
of action of SCN-104 is mediated through DHE and is exactly the same as that of DHE. DHE is available in the market as a single dose
nasal spray, which has a high degree of variability in clinical outcomes. DHE is also available in the market as single dose ampoules
for injection, however, Scienture LLC believes that the process of dose withdrawal from the ampoule followed by self-injection at the
time of intense need is cumbersome and difficult for the patient.

Scienture
LLC believes that the SCN-104 multi-dose self-injection pen is easy to use and provides enhanced patient convenience. Furthermore, Scienture
LLC believes that the SCN-104 injection pen provides for consistent and accurate delivery of every dose which results in better exposure
compared to the nasal spray formulation. The SCN-104 injection pen is being developed via the 505(b)(2) regulatory pathway. The SCN-104
injection pen is in development for the acute treatment of migraine headaches with or without aura and the acute treatment of cluster
headache episodes.

As
shown in third party studies of DHE, SCN-104’s mechanism of action for its antimigraine effect is due to its potential action as
an agonist at the serotonin 5-HT1D receptors. SCN-104 is intended for subcutaneous administration. SCN-104 is also intended for acute
use and is not intended for chronic administration.

Scienture
LLC has conducted two preclinical studies of SCN-104 and the SCN-104 injection pen: (i) a 30-day repeated dose toxicity study of
dimethyl sulfoxide and caffeine following thrice daily, 3 times per week subcutaneous administration in Sprague-Dawley rats and (ii)
a 30-day repeated dose toxicity study of dimethyl sulfoxide and caffeine following thrice daily, 3 times per week subcutaneous
administration in Göttingen minipigs. The objective of each study was to evaluate the safety and tolerability of the test items
with and without DHE to the subject animals, providing information on important potential toxic effects, target organs, progressive
toxic effects, characterization of a possible dose-response relationship, and an estimate of the No-Observed-Adverse-Effect Level.
Both studies were designed for the qualification of the excipients. The animals treated either with DHE + Dimethyl Sulfoxide
(“DMSO”) + caffeine or DMSO + caffeine formulations did not reveal any changes attributable to treatment at the end of
the treatment/recovery periods. As such, both studies support a conclusion that SCN-102 is considered to have no toxicological
significance across the following attributes – Hematology, Coagulation Parameters, Clinical Chemistry and
Urinalysis.

Scienture
LLC believes the SCN-104 injection pen may offer a significant improvement, in terms of usability and patient acceptability, to the current
standard of care in the market (ampoules for injection). The intended pen delivery system was designed with patients in mind to carry
multiple doses, have a lower volume of injection, and utilize shielded needles to avoid unnecessary exposure.

Scienture
LLC has had initial discussions with the FDA to align on a path forward for this development program. As a result of these discussions,
Scienture LLC learned that its proposed plan for manufacturing NDA registration batches and that the reference product and dose selection
of the reference product that Scienture LLC selected for a comparative regulatory study are acceptable. Scienture LLC also received guidance
from the FDA on nonclinical safety studies and stability testing. The formulation has been scaled up to enable future commercial scale
production and the pen has been optimized for commercial use. As shown below, several pharmacokinetics studies have shown comparability
between SCN-104 and the currently available marketed injection product.

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Scienture
LLC is initiating manufacturing activities and planning to conduct bioequivalence studies. Scienture LLC plans to initiate a Phase 1
single dose study in healthy adults in 2026, following submission of an IND, if the IND is cleared by the FDA.

SCN-106
(Potential Biosimilar)

Scienture
LLC is developing a potential biosimilar, SCN-106, based on Cathflo Activase, a reference product that is a thrombolytic agent that binds
to fibrin in clots and converts entrapped plasminogen to plasmin. SCN-106 is a sterile, purified glycoprotein that is synthesized using
the complementary DNA for natural human tPA obtained from a Chinese hamster ovary cell-line.

Scienture
LLC is working with Anthem Biosciences Pvt, Ltd. (“Anthem”) to develop a biosimilar product that utilizes the same mechanism(s)
of action for the proposed condition of use, and has the same route of administration, dosage form, and strength as the reference product.
In this regard, Scienture LLC entered into a Master Services Agreement with Anthem on October 29, 2024 (the “Anthem Agreement”).
The following is a summary of the Anthem Agreement, which is qualified in its entirety by the full text of the Anthem Agreement, which
is filed as an exhibit to this Annual Report.

Under
the Anthem Agreement, Anthem has agreed to diligently complete the services associated with SCN-106 as included in work orders to be
attached to the Anthem Agreement. In performing these services, Anthem has agreed to strictly comply with the specifications in the
Anthem Agreement, the work order, standard operating procedures approved in writing by Scienture LLC, and relevant professional
standards, and any regulatory authority requirements, including current Good Laboratory Practices (“GLPs”) and current
Good Manufacturing Practices (“GMPs”) promulgated by the FDA, and any other applicable laws, rules, and regulations. In
carrying-out its services, Anthem will only allow those employees and personnel under Anthem’s direct control to perform such
services and will obtain Scienture LLC’s consent prior to delegating or subcontracting any portion of the services. Anthem is
required to provide prompt written reports to Scienture LLC on the status of the services provided by Anthem under the Anthem
Agreement and any work order. Under the Anthem Agreement, Scienture LLC is responsible for paying Anthem the amounts designated on
any attached work order. These amounts are to be paid on the schedule stated on the work order and Anthem is responsible for
invoicing Scienture LLC for such amounts. Undisputed late payments incur interest at the rate of 18% per annum payable until the
date of actual payment.

Any
project or work order in effect under the Anthem Agreement may be terminated by Scienture LLC without cause upon thirty (30) days’
prior notice to Anthem. Anthem may terminate the Anthem Agreement without cause upon thirty (30) days’ prior notice to Scienture
LLC. However, Anthem is responsible for delivering all services and deliverables under the Anthem Agreement then required to be performed
by Anthem under a work order prior to any such termination. Either party may terminate the Anthem Agreement upon the breach of the Anthem
Agreement by the other party if the breach remains uncured for a period of thirty (30) days. In the event that performance by Anthem
or Scienture LLC under the Anthem Agreement is delayed due to an event beyond the control of Anthem or Scienture LLC for a period of
ninety (90) days, then the other party can terminate the Anthem Agreement upon written notice.

With
respect to projects to be performed by Anthem under the Anthem Agreement, any and all materials relating to such projects are the property
of Scienture LLC, and are to be protected as such by Anthem. Furthermore, Anthem has agreed to irrevocably assign to Scienture LLC all
right, title, and interest in and to any “Program Technology” (as defined in the Anthem Agreement) and to make any assignments
necessary to ensure that Scienture LLC has such ownership interest. The Anthem Agreement also contains customary confidentiality obligations,
representations and warranties, indemnification provisions, and anti-assignment provisions. The Anthem Agreement may only be amended
upon the written consent of both parties.

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The
CMC development program is focused on establishing the analytical similarity of SCN-106 to the reference product. Multiple clones of
Chinese hamster ovary (“CHO”) cells have been produced to synthesize lots of SCN-106 which were screened for similarity to the reference product for several key
biochemical quality attributes as well as overall protein yield and finalization of a lead clone.

Scienture
LLC completed a Biosimilar Initial Advisory meeting with the FDA in June 2023 to discuss the CMC, non-clinical, and clinical studies
required for regulatory approval. As a result of this meeting, Scienture LLC learned that its analytical strategy for initiating analytical
similarity studies between SCN-106 and a proposed biosimilar product is acceptable. Scienture LLC also learned that SCN-106 is suitable
for further development and received guidance from the FDA on a comparable clinical study needed to demonstrate biosimilarity of SCN-106
and the reference product.

SCN-107
(Bupivacaine Long-Acting Injection)

SCN-107
is a long-acting injection suspension formulation of a non-opioid analgesic that is indicated for postsurgical local and regional analgesia.
Scienture LLC’s long-acting formulation, SCN-107,
is a novel microsphere-based formulation of bupivacaine that comprises the drug in polymer-based microspheres and is intended to provide
pain management over a period of 5-7 days. The product candidate is designed to potentially provide longer term post-surgical pain relief
compared to the currently available products in the market.

Based
on initial discussions with FDA regarding this program, Scienture LLC believes this product candidate would require at least one Phase
3 clinical trial to support submission of a marketing application.

Scienture
LLC anticipates submitting an IND and, if cleared by the FDA, initiating a Phase 1 single dose study in healthy adults in 2026 to
conduct an initial assessment of safety and tolerability of SCN-107.

Scienture LLC entered into a Feasibility Study and Animal Trial Material Manufacturing Agreement with Innocore Technologies,
B.V. (“Innocore”) on May 26, 2020 (as amended on December 2, 2022, the “Innocore License”), for certain intellectual
property rights associated with SCN-107. Under the Innocore License, Innocore granted Scienture LLC a worldwide exclusive, milestone,
royalty-bearing and sublicensable license to certain patent rights for the research and development of SCN-107 in postsurgical local and
regional analgesia. Pursuant to the Innocore License, Scienture LLC is required to make low single-digit percentage royalty payments based
on annual net sales of licensed products for the first three years of sales on a country-by-country basis, subject to a low single digit
increase as of the fourth year of sales on a country-by-country basis.

Sales
and Marketing

Scienture
LLC intends to market its products through its own sales forces in the U.S. and seek strategic collaborations with other pharmaceutical
companies to commercialize its products outside of the U.S. Scienture LLC is in the process of building a commercial sales and marketing
operation in the U.S., through a partnership with a Contract Sales Organization, to support sales of Scienture
LLC’s products. This sales and marketing organization will include a combination of
field teams, virtual sales representatives and omnichannel marketing to effectively reach health care providers and offer patient education.
Scienture LLC’s promotional efforts are expected to further include developing a market access strategy to obtain commercial and
government payor coverage for its products. In addition, Scienture LLC intends to partner with a third-party logistics provider and have
internal sales operations and analytics teams to provide state-of-the-art distribution capabilities to wholesalers, pharmacies, institutional
buying groups and hospitals. Scienture LLC believes its commercial operations infrastructure, will
enable it to effectively target healthcare providers to support and grow its products subsequent to market entry.

Customers

The
majority of Scienture LLC’s product sales, if its products are approved by the FDA, are expected to be to pharmaceutical wholesalers,
specialty pharmacies, and distributors who, in turn, would sell such products to pharmacies, hospitals, long term care institutions and
other customers, potentially including federal and state entities.

Market
and Competition

Scienture
LLC is engaged in segments of the pharmaceutical industry
that are highly competitive and rapidly changing. Many large pharmaceutical and biotechnology companies, academic institutions, governmental
agencies, and other public and private research organizations are commercializing or pursuing the development of products utilizing the
same molecules or compounds or for the same indications that Scienture LLC is currently pursuing or may target in the future.

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Hypertension

Hypertension
(high blood pressure) is a CVS condition, when the pressure in the blood vessels is too high (140/90 mmHg or higher). According to
the Centers for Disease Control, hypertension, or high blood pressure, affects nearly half of adults in the U.S. (48.1%, or
approximately 119.9 million people). Hypertension is defined as a systolic blood pressure of 140 mmHg or higher, and diastolic blood
pressure of 90 mmHg or higher. Hypertension is a risk factor for stroke and heart disease, which are leading causes of death in the
U.S. Factors that increase the risk of having high blood pressure include: older age, genetics, being overweight or obese, not being
physically active, high-salt diet and drinking too much alcohol. Hypertension is clinically diagnosed if, when blood pressure is
measured on two different days, the systolic blood pressure readings on both days is ≥140 mmHg and/or the diastolic blood
pressure readings on both days is ≥ 90 mmHg.

The
hypertension market has increased with the commercial launch of several branded products in recent years, as well as the launch of generic
versions of branded drugs, such as Prinvil, Lotensin, Cozaar, Cardizem, Apresoline, Nitrostat and Toprol-XL. Treatment options for hypertension
in the U.S. market can be broadly classified across the following product classes, Angiotensin-converting enzyme (“ACE”) inhibitors, Angiotensin
II receptor blockers (“ARBs”), Beta-Blockers, Diuretics and Calcium Channel Blockers.

Scienture
LLC’s product, ArbliTM (Losartan Oral Suspension 10mg/mL), is a ready to use oral suspension of losartan
for increased patient convenience and ease of dosing. Losartan is classified as an ARB for treating hypertension and is one of the highest
prescribed molecules for this indication. Current products in the market containing losartan are available only as oral solids, which
can be further compounded to a liquid formulation. Scienture LLC believes that ArbliTM is the first liquid formulation of
losartan on the market that does not require compounding and has reduced dosing volume and long-term shelf life at room temperature storage.

Opioid
Abuse

The
opioid overdose epidemic remains a significant public health issue and continues to rise exponentially in the U.S. According to the
2024 National Survey on Drug Use and Health, among people aged 12 or older in 2024, 2.7 percent (or 7.8 million people) misused
opioids in the prior year. Additionally, according to the Centers for Disease Control, new
preliminary data predicts that there were 71,542 drug overdose deaths for the 12 months ending in October 2025. The majority of those deaths involved highly potent
synthetic opioids and their analogues. These synthetic opioids are highly powerful, with fentanyl and carfentanil estimated to be up
to 100 and 10,000 times more potent than morphine, respectively. While fentanyl has been available in prescription form as an
analgesic for some time, data indicates that the dramatic rise in drug overdose deaths in recent years can be attributed primarily
to the influx of illicitly manufactured synthetic opioids.

Approved
by the FDA in 1971, naloxone is considered the standard of care and has been shown to be effective in opioid overdose reversals. The
opioid overdose reversal market (specifically for naloxone-based products) includes several branded and generic products across nasal
spray, auto-injector, and injectable formulations. Most growth in recent years has been in intranasal products, such as Narcan 4mg, RiVive
3mg and Kloxxado 8mg, which are needle free and easier for bystanders and community responders to use. Real world studies suggest the
need for multiple naloxone administrations (“MNA”) using these products among bystanders and EMS providers continues to increase. With
the increase of synthetic opioids and the rapid onset of effect, evidence is emerging suggesting the need for increased doses of naloxone
to reverse opioid toxicity.

REZENOPYTM
(Naloxone HCl Nasal Spray, 10mg) is the highest FDA-approved nasal spray dose available in the U.S. market. The product provides maximum
naloxone protection in a single easy-to-use device and caters to the segment of patients who need multiple doses of lower strength for
stabilization in emergency situations. REZENOPYTM provides potential longer duration of opioid receptor block, improves chances
of quicker reversal and possible coverage against multiple abuse agents inclusive of synthetic opioids and combinations, through a single
dose administration of 10mg naloxone hydrochloride. High dose REZENOPY™ improves the chances of reversing potent opioids quickly
and reducing the requirement of MNA.

Migraine

Migraine
is a painful, complex neurological disorder consisting of recurring painful attacks that can significantly impact quality of life. Migraine
headaches are often characterized by throbbing pain, extreme sensitivity to light or sound, and potentially nausea and vomiting. The
World Health Organization categorizes migraine as one of the most disabling medical illnesses worldwide. The American Research Foundation
categorizes migraine as the third most prevalent illness in the world, and nearly 1 in 4 U.S. households includes someone with migraines.
Migraine is estimated to affect over 39 million individuals in the U.S.

Current
products in the market that are available to treat migraine headaches, include CGRP antagonists (calcitonin gene related peptide), which
is a class of products first introduced in 2018 (Nurtec, Ubrelvy), Botox, branded and generic versions of triptans (Imitrex, Maxalt,
Relpax), and ergot alkaloids (Ergotamine and Dihydroergotamine (DHE)).

Scienture
LLC’s product candidate, SCN-104, is supplied in a multi-dose pen-based delivery system for self-injection and increased patient
convenience. The product candidate is in development for the acute treatment of migraine headaches with or without aura and the acute
treatment of cluster headache episodes.

Thrombotically
Occluded Catheter (CVAD) Management

Catheters,
which are a type of a Central Venous Access Device (“CVAD”), are employed to deliver life-sustaining therapies. They can
be used for short-term or long-term infusion of antibiotics, parenteral nutrition, chemotherapy, blood and blood products in patients
with limited peripheral access. More than 7 million CVADs are inserted each year in patients in the United States. Occlusion of catheters
while in use can complicate patient care by interrupting the administration of medications and solutions, delaying or disrupting therapies
and leading to additional procedures such as catheter replacement. Occlusion is the most common noninfectious complication in the long-term
use of CVADs and may occur soon after insertion of a device or develop at any time. About 58% of catheter occlusions are thrombotic,
resulting from the formation of a thrombus within, surrounding, or at the tip of the catheter.

Scienture
LLC’s product candidate, SCN-106, is a thrombolytic agent currently in development. Scienture LLC plans to develop SCN-106 through
the FDA’s 351(k) pathway for biosimilars.

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Postoperative
Pain

Post-surgery
pain, also known as postoperative pain, is pain that a patient experiences after a surgical procedure. Pain can be caused by a number
of factors, including: the type of procedure, the size of the operation, and medications used during surgery. Chronic pain can negatively
impact a patient’s rehabilitation, quality of life, and the results of the procedure.

Current
drug product treatments available in the market for treating postoperative pain include IV and oral opioids, injectable local anesthetics,
and steroidal and non-steroidal analgesics. Marketed products include branded and generic versions of Celebrex, Ketalar, Exparel, Lyrica,
Neurontin and Astromorph.

Scienture
LLC’s product candidate, SCN-107, is a microsphere based long-acting injection of Bupivacaine, a local anesthetic, in development
for postsurgical analgesia. SCN-107 is designed to be a non-opioid treatment regimen with rapid onset of action and analgesia that is
intended to provide coverage over a period of 5-7 days.

Manufacturing

Scienture
LLC currently depends on third-party commercial manufacturing organizations (“CMOs”) for all manufacturing operations, including
the production of raw materials, finished dosage form product, and product packaging for both its planned commercial scale manufacturer
and the products used in its preclinical and clinical research. Scienture LLC does not own or operate manufacturing facilities for the
production of any of its product candidates nor does Scienture LLC have plans to develop its own manufacturing operations in the foreseeable
future to support clinical trials or commercial production. Scienture LLC currently employs internal resources to manage its manufacturing
contractors.

Scienture
LLC is in discussion with CMOs headquartered in North America, Europe and Asia for its pipeline product candidates. These CMOs offer
a comprehensive range of commercial contract manufacturing and packaging services.

If
Scienture LLC fails to produce its products and product candidates in the volumes that Scienture LLC requires on a timely basis, or fails
to comply with stringent regulations applicable to pharmaceutical drug manufacturers, Scienture LLC may face delays in the development
and commercialization of its products and product candidates or be required to withdraw its products from the market for
risks associated with manufacturing and supply of its products and product candidates.

Intellectual
Property

Overview

Scienture
LLC continues to build its intellectual property portfolio to provide protection for its technologies,
products, and product candidates. Scienture LLC seeks patent protection, where appropriate, both in the U.S. and internationally
for products and product candidates.

Scienture
LLC’s intended objective is to protect its innovations and proprietary products by, among other things, filing patent applications
in the U.S. and abroad, including Europe, Canada, and other countries when appropriate. Scienture LLC also relies on trade secrets, know-how,
proprietary knowledge, continuing technological innovation, and in-licensing opportunities to develop and maintain its proprietary position.
Scienture LLC cannot be sure that patents will be granted with respect to its pending patent applications or with respect to any patent
applications filed by it in the future, nor can Scienture LLC be sure that any of its existing patents or any patents that may be granted
to it in the future will be commercially useful in protecting its technology or its products. Scienture LLC cannot be sure that any patents,
if granted, will sustain a legal challenge.

Patent
Portfolio

ArbliTM (SCN-102)

SCN-102
has two orange book listed formulation composition and method of use patents in the U.S. Patent #: 11,890,273, Issue Date: February 6, 2024, titled “LOSARTAN LIQUID FORMULATIONS AND METHODS OF USE”, Expiration
Date: October 7, 2041 and Patent #: 12,156,869, Issue Date: December 03, 2024, titled “LOSARTAN LIQUID FORMULATIONS AND METHODS
OF USE”, Expiration Date: October 7, 2041. A third application is pending (Appl. No. 18/061,819; Filing Date: December 5, 2022;
Expiration: on or after October 7, 2041).

REZENOPYTM (SCN-110)

SCN-110 has an issued orange
book listed formulation composition and method of use patent in the U.S. Patent #: 12,514,854, Issue Date: January 6, 2026, titled “DRUG
PRODUCTS FOR INTRANASAL ADMINISTRATION AND USES THEREOF”, Expiration Date: February 5, 2041. A second application is pending in
the U.S. (18/602,972; Filing Date: March 12, 2024; Expiration Date: February 5, 2041).

SCN-104

SCN-104
has a formulation composition and method of use application pending in the U.S. (Appl. No. 17/757,924; Filing Date: June 23, 2022; Expiration
Date: June 15, 2035).

SCN-106

SCN-106
is a potential biosimilar and considered by Scienture LLC to be part of its product development portfolio, however Scienture LLC is
not pursuing patent protection for this product.

SCN-107

SCN-107
has a formulation composition and method of use application pending in the U.S. (Appl. No. 17/996,995; Filing Date: October 24,
2022; Expiration Date: on or after April 22, 2041). Applications in Canada and Europe are currently pending. As described above,
Scienture LLC licenses certain patent rights from Innocore for the research and development of SCN-107.

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Collaborations
and Licensing Arrangements

Kindeva
Drug Delivery L.P. (“Kindeva”)

Scienture
LLC entered into the Kindeva Agreement on March 4, 2025,
pursuant to which Kindeva granted Scienture LLC an exclusive, non-transferrable, non-sublicensable right and license to commercialize
REZENOPYTM (Nalaxone HCI Nasal spray 10mg/0.11mL) (the “Product”) within the United States and its territories. Scienture
LLC intends to use the exclusive right and license to price, launch, promote, market, distribute, and educate the public on the Product.

Unless
earlier terminated, the term of the Kindeva Agreement will remain in effect for 10 years from the date of first commercial sale of
the Product in the United States and its territories to an unaffiliated third-party. The Kindeva Agreement will automatically renew
for successive 1-year periods unless either party terminates the agreement in accordance with its terms. Either party may terminate
the Kindeva Agreement if (i) the other party materially breaches the Kindeva Agreement and has not cured such breach during a period
of 90 days following notice of the breach, (ii) the Product is withdrawn from the market as a result of any ruling or requirement by
the FDA, a voluntary recall by the FDA is issued, or there are material safety concerns that could significantly impact the
commercial viability of the Product, or (iii) the Product is the subject of a mass tort liability action or is subject to material
health and public safety concerns. Scienture LLC may terminate the Kindeva Agreement upon 120 days prior written notice if Scienture
LLC determines that the Product is compromised by an adverse and material change in the market or other adverse and material
business conditions. The Kindeva Agreement is also terminable by either party upon the occurrence of certain bankruptcy related
events pertaining to the other party.

Pursuant
to the Kindeva Agreement, Scienture LLC is exclusively responsible, at its expense, for the commercializing the Product in the United
States and its territories in a manner that maximizes the net sales of the Product. Scienture LLC has final and sole authority for the
pricing of the Product, but has agreed to not reduce the sale price of the Product for reasons other than the impact of market demand
for the Product, after taking into account all relevant factors.

Pursuant
to the Kindeva Agreement, Kindeva will retain control of all activities associated with manufacturing the Product, and be responsible
for any non-clinical or clinical studies regarding the Product. Kindeva will provide a copy of the NDA for the Product to Scienture LLC
as well as all related information and data necessary for Scienture LLC to commercialize the Product. Once the NDA is transferred to
Scienture LLC, Scienture LLC will be responsible for maintaining the NDA and deal with any regulatory authorities regarding the advertising
and marketing of the Product as well as any adverse drug experience reports for the Product that Scienture LLC directly receives. The
initial supply price for the Product to Scienture LLC is $9.20 per unit. Kindeva may increase that price not more than once each calendar
year after the launch of the Product to account for any increased manufacturing costs.

Under
the Kindeva Agreement, Scienture LLC and Kindeva agreed to form a joint steering committee within 30 days to oversee and coordinate
their respective activities under the Kindeva Agreement with respect to any additional regulatory or development requirements needed
to obtain any regulatory approvals needed for Scienture LLC to fulfill its commercialization responsibilities. The joint steering
committee will be comprised of four members, with 2 members to be appointed by each of Scienture LLC and Kindeva. The joint steering
committee is responsible for establishing timelines for the launch of the Product, overseeing the development and commercialization
of the Product, providing strategic direction and performance criteria, and resolving disputes that might arise under and in
connection with the Kindeva Agreement. The joint steering committee will meet 4 times per year, unless Scienture LLC and Kindeva
agree to a different schedule. The joint steering committee must act by unanimous vote of the members present at a meeting, provided
that at least 1 member from each of Scienture LLC and Kindeva must be present at such meeting, or may otherwise act by a written
consent signed by all members.

In
exchange for the exclusive rights to develop and commercialize the Products, Scienture LLC agreed to pay Kindeva certain milestone payments,
net sales share payments, and NDA cost reimbursements, including:

●
A
one-time commercial milestone payment of between $2.5 million and $10 million based on the achievement of certain pre-defined annual
net sales targets;

●
Milestone
payments totaling $1 million, $200,000 of which was due upon executing the Kindeva Agreement, $300,000 of which is due within 3 months
of executing the Kindeva Agreement, $250,000 of which is due upon delivery of the initial commercial supply of the Product, and $250,000
of which is due 3 months after receipt of such commercial supply;

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●
Profit-sharing
payments representing 10% of the net sales by Scienture LLC of the Product, which will be reduced to 8% of the net sales on the market
entry of a third party generic ANDA for the Product; and

●
Additional
profit-sharing payments representing 5% of the net sales until the total cumulative payments equals Kindeva’s cost of developing
and receiving NDA approval of the Product, which was $12.8 million as of the date of the Kindeva Agreement.

Under
the Kindeva Agreement, Scienture LLC agreed to place minimum order quantities of the Product of 3 batches of 450,000 units per year
beginning in 2027 or, alternatively, pay Kindeva $1.242 million per year unless Scienture LLC elects to terminate the Kindeva
Agreement pursuant to its terms.

Kesin
Pharma Corporation (“Kesin”)

Scienture
LLC entered into exclusive license and commercial agreements on August 28, 2022 and April 24, 2023, with Kesin, a related party, pursuant
to which Scienture LLC granted the exclusive license rights to commercialize SCN-102 and SCN-104, respectively, to Kesin for use in the
United States (together, the “Kesin Agreement”). In consideration of the rights granted, Scienture LLC received
milestone payments and reimbursement of costs actually incurred related to SCN-102 and SCN-104.

On
March 13, 2024, the parties terminated the Kesin Agreement by entering a Confidential Termination Agreement (the “Kesin Termination
Agreement”), and the parties agreed that Scienture LLC would pay Kesin a total gross amount of $1.285 million upon commercialization
of either SCN-102 or SCN-104 via a royalty arrangement. The Kesin Termination Agreement also requires that if the full $1.285 million
has not been repaid within two years of the earlier of (i) commercial launch of a product or (ii) 120 days after FDA approval of a product,
then interest will accrue prospectively at a rate of 8% annually on the unpaid balance.

In
August 2024, Kesin demanded immediate payment of the full amount under the Kesin Termination Agreement, alleging the full amount is payable
in connection with the consummation Scienture LLC’s business combination with the Company. Scienture LLC has disputed that the
amount is payable, and the parties entered into discussions to resolve the issue.

On
March 11, 2025, Kesin filed a complaint against Scienture LLC in the United States District Court for the Eastern District of New York
seeking payment of the disputed $1.285 million. The case was voluntarily dismissed on October 1, 2025. The Company and Kesin entered
into a Settlement Agreement and Release on October 27, 2025, whereby Kesin agreed to unconditionally release and discharge the Company
from all actions related to the complaint in exchange for the Company paying $1.285 million plus 8% interest from March 13, 2025, and
legal fees and costs related to the complaint according to a payment schedule through December 2026.

Government
Regulation

U.S.
Drug Development Process

In
the United States, pharmaceutical products are subject to extensive regulation by the FDA. The Federal Food, Drug, and Cosmetic Act (the
“FDCA”) and other federal and state statutes and regulations, govern, among other things, the research, development, testing,
manufacture, storage, recordkeeping, approval, labeling, promotion and marketing, distribution, post-approval monitoring and reporting,
sampling, and import and export of pharmaceutical products. Scienture LLC, along with third-party contractors, will be required to navigate
the various preclinical, clinical and commercial approval requirements of the governing regulatory authorities of the countries in which
Scienture LLC wishes to conduct studies or seek approval of its product candidates. Failure to comply with applicable United States requirements
may subject a company to a variety of administrative or judicial sanctions, such as FDA refusal to approve pending applications, withdrawal
of an approval, warning or untitled letters, clinical holds, product recalls or withdrawals from the market, product seizures, total
or partial suspension of production or distribution, injunctions, fines, refusals of government contracts, restitution, disgorgement
of profits, civil penalties, and criminal prosecution.

FDA
approval is required before any new unapproved product or a product with certain changes to a previously approved product, including
a new use of a previously approved drug, can be marketed in the United States. The steps required to be completed by the FDA before a
drug may be marketed in the United States generally include the following:

●
completion
of preclinical laboratory tests, animal studies, and formulation studies performed in accordance with the FDA’s Good Laboratory
Practice (“GLP”) regulations;

●
submission
to the FDA of an IND application for human clinical testing, which must become effective before human clinical trials may begin and
must be updated annually or when significant changes are made;

●
approval
by an independent institutional review board (“IRB”) or ethics committee at each clinical site before the clinical trial
is commenced;

●
performance
of adequate and well-controlled human clinical trials in accordance with applicable IND regulations, good clinical practices (“GCPs”)
requirements and other clinical-trial related regulations to establish the safety and efficacy of the proposed drug for each indication;

●
preparation
and submission to the FDA of an NDA or biologics license application (“BLA”), after completion of all pivotal clinical
trials, which includes not only the results of the clinical trials, but also, detailed information on the chemistry, manufacture
and quality controls for the product candidate and proposed labeling;

●
satisfactory
completion of an FDA Advisory Committee review, if applicable;

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●
a
determination by the FDA within 60 days of its receipt of an NDA or BLA to file the application for review;

●
satisfactory
completion of an FDA pre-approval inspection of the manufacturing facility or facilities at which the proposed drug is produced to
assess compliance with current good manufacturing practices (“GMPs”) regulations and of selected clinical trial sites
to assess compliance with GCPs; and

●
FDA
review and approval of the NDA or BLA to permit commercial marketing of the product for particular indications for use in the United
States.

Satisfaction
of FDA pre-market approval requirements typically takes many years and the actual time required may vary substantially based upon the
type, complexity, and novelty of the product or disease.

Preclinical
and Clinical Development

Preclinical
tests include laboratory evaluation of product chemistry, formulation, and toxicity, as well as animal trials to assess the characteristics
and potential safety and efficacy of the product candidate. The conduct of the preclinical tests must comply with federal regulations
and requirements, including GLP. The results of preclinical testing are submitted to the FDA as part of an IND application along with
other information, including information about the product candidate, chemistry, manufacturing and controls, any available human data
or literature to support the use of the product candidate and a proposed clinical trial protocol. Long term preclinical tests, such as
animal tests of reproductive toxicity and carcinogenicity, may continue after the IND is submitted.

An
IND application must become effective before human clinical trials may begin. The IND application automatically becomes effective 30
days after receipt by the FDA, unless the FDA, within the 30-day period, raises safety concerns or questions relating to one or more
proposed clinical trials and places the clinical trial on clinical hold. In such a case, the IND sponsor and the FDA must resolve any
outstanding concerns or questions before the clinical trial can begin. The FDA may also impose clinical holds on a product candidate
at any time before or during clinical trials due to safety concerns, non-compliance or other issues affecting the integrity of the trial.
Accordingly, submission of an IND application may or may not result in the FDA allowing clinical trials to commence and, once begun,
issues may arise that could cause the trial to be suspended or terminated.

Clinical
trials involve the administration of the investigational drug product to human subjects under the supervision of a qualified investigator.
Clinical trials must be conducted: (i) in compliance with federal regulations; (ii) in compliance with GCP, an international standard
meant to protect the rights and health of clinical research participants and to define the roles of clinical trial sponsors, administrators,
and monitors; as well as (iii) under protocols detailing the objectives of the trial, the parameters to be used in monitoring safety,
and the effectiveness criteria to be evaluated. Each protocol involving testing on United States patients and subsequent protocol amendments
must be submitted to the FDA as part of the IND. Furthermore, an independent IRB or ethics committee for each site proposing to conduct
the clinical trial must review and approve the plan for any clinical trial and its informed consent form before the clinical trial begins
at that site, and must monitor the study until completed. An IRB is charged with protecting the welfare and rights of trial participants
and considers such items as whether the risks to individuals participating in the clinical trials are minimized and are reasonable in
relation to anticipated benefits.

Regulatory
authorities, the IRB or the sponsor may suspend a clinical trial at any time on various grounds, including a finding that the subjects
are being exposed to an unacceptable health risk or that the trial is unlikely to meet its stated objects. The FDA may order the temporary,
or permanent, discontinuation of a clinical trial at any time, or impose other sanctions, if it believes that the clinical trial is not
being conducted in accordance with FDA requirements. Further, an IRB may also require the clinical trial at the site to be halted, either
temporarily or permanently, for failure to comply with the IRB’s requirements, or may impose other conditions. Some trials also
include oversight by an independent group of qualified experts organized by the clinical trial sponsor, known as a data safety monitoring
board, which provides authorization for whether or not a study may move forward at designated check points based on access to certain
data from the study and may recommend a clinical trial to be halted if it determines that there is an unacceptable safety risk for subjects
or other grounds, such as futility.

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Clinical
trials to support an NDA or BLA for marketing approval are typically conducted in three sequential phases, but the phases may overlap
or be combined. In Phase 1 clinical trials, the investigational product is typically introduced into a limited population of healthy
human subjects or patients with the target disease or condition. These trials are designed to test the safety, dosage tolerance, pharmacokinetics
and pharmacological actions of the investigational product, to identify side effects associated with increasing doses, and, if possible,
to gain early evidence on effectiveness. Phase 2 clinical trials usually involve administering the investigational product to a limited
patient population with the specified disease or condition to evaluate the preliminarily efficacy, dosage tolerance, and optimum dosage,
and to identify possible adverse effects and safety risks. Phase 3 clinical trials are typically undertaken in a larger number of patients,
typically at geographically dispersed clinical trial sites, to provide substantial evidence of clinical efficacy and to further test
for safety in an expanded and diverse patient population. These clinical trials are intended to permit the FDA to evaluate the overall
benefit-risk relationship of the investigational product and to provide adequate information for the labeling of the product candidate.

In
reviewing an NDA or BLA, the FDA will consider all information submitted in the application, including the results of all clinical trials
conducted. In some cases, the FDA may require, or companies may voluntarily pursue, additional clinical trials after a product is approved
to gain more information about the product. These so-called Phase 4 studies may be made a condition to approval of the NDA or BLA. These
trials are used to gain additional experience from the treatment of patients in the intended therapeutic indication and further document
clinical benefit in the case of drugs approved under accelerated approval regulations. Failure to exhibit due diligence with regard to
conducting Phase 4 clinical trials could result in the withdrawal of approval for products.

Concurrent
with clinical trials, companies may complete additional animal studies and develop additional information about the biological characteristics
of the product candidate, and must finalize a process for manufacturing the product in commercial quantities in accordance with current
GMP requirements. The manufacturing process must be capable of consistently producing quality batches of the product candidate and, among
other things, must develop methods for testing the identity, strength, quality and purity of the final product. Additionally, appropriate
packaging must be selected and tested and stability studies must be conducted to demonstrate that the product candidate does not undergo
unacceptable deterioration over its shelf life.

During
all phases of clinical development, regulatory agencies require extensive monitoring and auditing of all clinical activities, clinical
data, and clinical study investigators. Progress reports detailing the results of the clinical trials, among other information, must
be submitted at least annually to the FDA, and written IND safety reports must be submitted to the FDA and the investigators for serious
and unexpected suspected adverse events, findings from other studies suggesting a significant risk to humans exposed to the product candidate,
findings from animal or in vitro testing that suggest a significant risk for human subjects, and any clinically important increase in
the rate of a serious suspected adverse reaction over that listed in the protocol or investigator brochure.

NDA
and BLA Submission and Review

Assuming
successful completion of the required clinical testing in accordance with all applicable regulatory requirements, an NDA or BLA application
which includes, among other information, the results of product development, preclinical studies and clinical trials is submitted to
the FDA. FDA approval of the application is required before marketing of the product may begin in the United States. The application
must include, among other things, the results of all trials and preclinical testing, and other testing and a compilation of data relating
to the product’s pharmacology, chemistry, manufacture, controls and proposed labeling. The cost of preparing and submitting an
NDA or BLA is substantial.

The
FDA has 60 days from its receipt of an NDA or BLA to either issue a Refuse to File Letter or accept the NDA or BLA for filing, indicating
that it is sufficiently complete to permit substantive review. Once the submission is accepted for filing, the FDA begins an in-depth
review. The FDA has agreed to certain performance goals in the review of NDAs and BLAs. Under applications subject to the performance
goals of the PDUFA, the FDA has a goal of responding to standard review NDAs and BLAs within ten months after it accepts the application
for filing, or, if the application qualifies for priority review, six months after the FDA accepts the application for filing, but this
timeframe can be extended, such as by the submission of major amendments by applicants during the review period. The FDA reviews an application
to determine, among other things, whether the product is safe and effective and the facility in which it is manufactured, processed,
packed or held meets standards designed to assure the product’s continued safety, purity and potency.

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The
FDA may refer applications for novel drug products, or drug products that present difficult questions of safety or efficacy, to an advisory
committee—typically a panel that includes clinicians and other experts—for review, evaluation, and a recommendation as to
whether the application should be approved. The FDA is not bound by the recommendation of an advisory committee, but it generally follows
such recommendations. Before approving an application, the FDA will typically inspect one or more clinical sites to assure compliance
with GCPs. Additionally, the FDA will inspect the facility or the facilities at which the proposed product is manufactured. If the FDA
determines that the application, manufacturing process or manufacturing facilities are not acceptable, it will outline the deficiencies
in the submission and often will request additional testing or information. Notwithstanding the submission of any requested additional
information, the FDA ultimately may decide that the application does not satisfy the regulatory criteria for approval.

After
the FDA evaluates the application and conducts inspections of the manufacturing facilities where the investigational product and/or its
drug substance will be produced, it issues either an approval letter or a Complete Response Letter. An approval letter authorizes commercial
marketing of the drug with approved prescribing information for specific indications. A Complete Response Letter indicates that the review
cycle of the application is complete and the application is not ready for approval. A Complete Response Letter generally outlines the
deficiencies in the submission, except that where the FDA determines that the data supporting the application are inadequate to support
approval, the FDA may issue the Complete Response Letter without first conducting required inspections or reviewing proposed labeling.
In issuing the Complete Response Letter, the FDA may require substantial additional clinical data and/or other significant, expensive,
and time-consuming requirements related to clinical trials, preclinical studies and/or manufacturing. If a Complete Response Letter is
issued, the applicant may either resubmit the NDA or BLA, addressing all of the deficiencies identified in the letter, withdraw the application
or request a hearing. The FDA has committed to reviewing resubmissions of the NDA or BLA addressing such deficiencies in two or six months
depending on the type of information included. Even if such data are submitted, however, the FDA may ultimately decide that the NDA or
BLA does not satisfy the criteria for approval.

If
regulatory approval of a product is granted, such approval will be granted for a particular indication(s) and may include limitations
on the indicated use(s) for which such product may be marketed. Further, the FDA may require that certain contraindications, warnings
or precautions be included in the product labeling or may condition the approval of the application on other changes to the proposed
labeling, development of adequate controls and specifications, or a commitment to conduct post-market testing or clinical trials and
surveillance to monitor the effects of approved products. As a condition of NDA or BLA approval, the FDA may require a risk evaluation
and mitigation strategy (“REMS”) to help ensure that the benefits of the drug outweigh the potential risks. REMS can include
medication guides, communication plans for healthcare professionals, and elements to assure safe use (“ETASU”). ETASU can
include, but are not limited to, special training or certification for prescribing or dispensing, dispensing only under certain circumstances,
special monitoring, and the use of patient registries. The requirement for REMS can materially affect the potential market and profitability
of the product. Moreover, product approval may also be conditioned on substantial post-approval testing, such as Phase 4 post-market
studies, and surveillance to monitor the product’s safety or efficacy, and the FDA may limit further marketing of the product based
on the results of these post-approval studies. Once granted, product approvals may be withdrawn if compliance with regulatory standards
is not maintained or problems are identified following initial marketing.

Changes
to some of the conditions established in an approved application, including changes in indications, labeling, or manufacturing processes
or facilities, require submission and FDA approval of a new NDA or BLA, or NDA or BLA supplement before the change can be implemented.
An NDA or BLA supplement for a new indication typically requires clinical data similar to that in the original application, and the FDA
uses the same procedures and actions in reviewing NDA and BLA supplements as it does in reviewing NDAs and BLAs. As with new NDAs and
BLAs, the review process is often significantly extended by requests for additional information or clarification.

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505(b)(2)
NDA Approval Process

Section
505(b)(2) of the FDCA provides an alternate regulatory pathway for the FDA to approve a new product and permits reliance for such approval
on published literature or an FDA finding of safety and effectiveness for a previously approved drug product. Specifically, section 505(b)(2)
permits the filing of an NDA where one or more of the investigations relied upon by the applicant for approval were not conducted by
or for the applicant and for which the applicant has not obtained a right of reference. Typically, 505(b)(2) applicants must perform
additional trials to support the change from the previously approved drug and to further demonstrate the new product’s safety and
effectiveness. The FDA may then approve the new product candidate for all or some of the labeled indications for which the referenced
product has been approved, as well as for any new indication sought by the section 505(b)(2) applicant.

Regulation
of Combination Products in the United States

Certain
products may be comprised of components, such as drug components and device components, that would normally be regulated under different
types of regulatory authorities, and frequently by different centers at the FDA. These products are known as combination products. Specifically,
under regulations issued by the FDA, a combination product may be:

●
a
product comprised of two or more regulated components that are physically, chemically, or otherwise combined or mixed and produced
as a single entity;

●
two
or more separate products packaged together in a single package or as a unit and comprised of drug and device products, device and
biological products, or biological and drug products;

●
a
drug, or device, or biological product packaged separately that according to its investigational plan or proposed labeling is intended
for use only with an approved individually specified drug, or device, or biological product where both are required to achieve the
intended use, indication, or effect and where upon approval of the proposed product the labeling of the approved product would need
to be changed, e.g., to reflect a change in intended use, dosage form, strength, route of administration, or significant change in
dose; or

●
any
investigational drug, or device, or biological product packaged separately that according to its proposed labeling is for use only
with another individually specified investigational drug, device, or biological product where both are required to achieve the intended
use, indication, or effect.

Under
the FDCA and its implementing regulations, the FDA is charged with assigning a center with primary jurisdiction, or a lead center, for
review of a combination product. The designation of a lead center generally eliminates the need to receive approvals from more than one
FDA component for combination products, although it does not preclude consultations by the lead center with other components of FDA.
The determination of which center will be the lead center is based on the “primary mode of action” of the combination product.
Thus, if the primary mode of action of a drug-device combination product is attributable to the drug product, the FDA center responsible
for premarket review of the drug product would have primary jurisdiction for the combination product. The FDA has also established an
Office of Combination Products to address issues surrounding combination products and provide more certainty to the regulatory review
process. That office serves as a focal point for combination product issues for agency reviewers and industry. It is also responsible
for developing guidance and regulations to clarify the regulation of combination products, and for assignment of the FDA center that
has primary jurisdiction for review of combination products where the jurisdiction is unclear or in dispute.

A
combination product with a drug primary mode of action generally would be reviewed and approved pursuant to the drug approval processes
under the FDCA. In reviewing the NDA application for such a product, however, FDA reviewers in the drug center could consult with their
counterparts in the device center to ensure that the device component of the combination product met applicable requirements regarding
safety, effectiveness, durability and performance. In addition, under FDA regulations, combination products are subject to current GMP
requirements applicable to both drugs and devices, including the Quality System regulations applicable to medical devices.

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Post-Approval
Requirements

Once
an NDA or BLA is approved, a product will be subject to pervasive and continuing regulation by the FDA including, among other things,
requirements relating to current GMPs, quality controls, record-keeping, reporting of adverse experiences, periodic reporting, product
sampling and distribution, and advertising and promotion of the product. For instance, the FDA closely regulates the post-approval marketing
and promotion of drugs, including standards and regulations for direct-to-consumer advertising, off-label promotion, industry-sponsored
scientific and educational activities and promotional activities involving the internet. Drugs may be marketed only for the approved
indications and in accordance with the provisions of the approved labeling. Failure to comply with these requirements can result in adverse
publicity, warning letters, corrective advertising, and potential civil and criminal penalties. Physicians may prescribe legally available
products for uses that are not described in the product’s labeling and that differ from those tested by Scienture LLC and approved
by the FDA. Such off-label uses are common across medical specialties. Physicians may believe that such off-label uses are the best treatment
for many patients in varied circumstances. The FDA does not regulate the practice of medicine by physicians or their choice of treatments.
The FDA does, however, regulate manufacturer’s communications on the subject of off-label use of their products.

In
addition, quality control, drug manufacture, packaging, and labeling procedures must continue to conform to current GMPs after approval.
Drug manufacturers and certain of their subcontractors are required to register their establishments with the FDA and certain state agencies,
and are subject to periodic unannounced inspections by the FDA, and certain state agencies for compliance with current GMPs, which impose
certain organizational, procedural and documentation requirements with respect to manufacturing and quality assurance activities. Changes
to the manufacturing process are strictly regulated, and, depending on the significance of the change, may require prior FDA approval
before being implemented. FDA regulations also require investigation and correction of any deviations from current GMPs and impose reporting
requirements upon Scienture LLC and any third-party manufacturers that Scienture LLC may decide to use. NDA or BLA holders using contract
manufacturers, laboratories or packagers are responsible for the selection and monitoring of qualified firms, and, in certain circumstances,
qualified suppliers to these firms. Drug manufacturers and other parties involved in the drug supply chain for prescription drug products
must also comply with product tracking and tracing requirements and notify the FDA of counterfeit, diverted, stolen and intentionally
adulterated products or products that are otherwise unfit for distribution in the United States. The discovery of violative conditions,
including failure to conform to current GMPs, could result in enforcement actions that interrupt the operation of any such facilities
or the ability to distribute products manufactured, processed or tested by them. Accordingly, manufacturers must continue to expend time,
money, and effort in the areas of production and quality-control to maintain compliance with current GMPs.

The
FDA may withdraw product approvals or request product recalls if a company fails to comply with regulatory standards or is not maintained,
if problems occur following initial marketing, or if previously unrecognized problems are subsequently discovered. Later discovery of
previously unknown problems with a product, including adverse events of unanticipated severity or frequency, or with manufacturing processes,
or failure to comply with regulatory requirements, may result in revisions to the approved labeling to add new safety information; imposition
of post-market studies or clinical trials to assess new safety risks; or imposition of distribution restrictions or other restrictions
under a REMS program. Other potential consequences include, among other things:

●
restrictions
on the marketing or manufacturing of a product, complete withdrawal of the product from the market or product recalls;

●
fines,
warning letters or holds on post-approval clinical trials;

●
refusal
of the FDA to approve pending applications or supplements to approved applications, or suspension or revocation of existing product
approvals;

●
product
seizure or detention, or refusal of the FDA to permit the import or export of products;

●
consent
decrees, corporate integrity agreements, debarment or exclusion from federal healthcare programs;

●
mandated
modification of promotional materials and labeling and the issuance of corrective information;

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●
the
issuance of safety alerts, Dear Healthcare Provider letters, press releases and other communications containing warnings or other
safety information about the product; or

●
injunctions
or the imposition of civil or criminal penalties.

U.S.
Patent Term Restoration

Depending
upon the timing, duration and specifics of the potential FDA approval of Scienture LLC’s product candidates, some of its U.S. patents
may be eligible for limited patent term extension. The Hatch-Waxman Amendments permit a patent restoration term, often referred to as
patent term extension, of up to five years as compensation for patent term lost during product development and the FDA regulatory review
process. However, patent term restoration cannot extend the remaining term of a patent beyond a total of 14 years from the product’s
approval date. The patent term restoration period is generally one-half the time between the effective date of an IND and the submission
date of an NDA plus the time between the submission date of an NDA and the approval of that application. Only one patent applicable to
an approved drug is eligible for the extension and the application for the extension must be submitted prior to the expiration of the
patent. The U.S. Patent and Trademark Office, in consultation with the FDA, reviews and approves or denies the application for any patent
term extension or restoration.

U.S.
Marketing Exclusivity

Market
exclusivity provisions under the FDCA can also delay the submission or the approval of certain marketing applications, including 505(b)(2)
applications. The FDA provides three years of marketing exclusivity for an NDA (including a 505(b)(2) application), or supplement to
an existing NDA, if new clinical investigations, other than bioavailability studies, that were conducted or sponsored by the applicant
are deemed by the FDA to be essential to the approval of the application. Three-year exclusivity is typically awarded to innovative changes
to a previously-approved drug product, such as new indications, dosage forms or strengths. This three-year exclusivity covers only the
modification for which the drug received approval on the basis of the new clinical investigations and does not prohibit the FDA from
approving applications for drugs that do not have the innovative change, such as generic copies of the original, unmodified drug product.
Three-year exclusivity blocks approval of 505(b)(2) applications and Abbreviated New Drug Applications, but will not delay the submission
or approval of a full NDA. However, an applicant submitting a full NDA would be required to conduct or obtain a right of reference to
all of the nonclinical studies and adequate and well-controlled clinical trials necessary to demonstrate safety and effectiveness. Orphan
drug exclusivity, as described above, may offer a seven-year period of marketing exclusivity, except in certain circumstances. Pediatric
exclusivity is another type of regulatory market exclusivity in the United States. Pediatric exclusivity, if granted, adds six months
to existing exclusivity periods, including exclusivity attaching to certain patent certifications. This six-month exclusivity, which
runs from the end of other exclusivity protection and patent terms, may be granted based on the voluntary completion of a pediatric trial
in accordance with an FDA-issued “Written Request” for such a trial, provided that at the time pediatric exclusivity is granted
there is not less than nine months of term remaining.

Biosimilars
and Exclusivity

The
ACA, which was signed into law in March 2010, included a subtitle called the Biologics Price Competition and Innovation Act of 2009 (the
“BPCIA”). The BPCIA established a regulatory scheme authorizing the FDA to approve biosimilars and interchangeable biosimilars.
A biosimilar is a biological product that is highly similar to an existing FDA-licensed “reference product.” The FDA has
issued multiple guidance documents outlining an approach to review and approval of biosimilars. Under the BPCIA, a manufacturer may submit
an application for licensure of a biologic product that is “biosimilar to” or “interchangeable with” a previously
approved biological product or “reference product.” In order for the FDA to approve a biosimilar product, it must find that
there are no clinically meaningful differences between the reference product and proposed biosimilar product in terms of safety, purity
and potency. For the FDA to approve a biosimilar product as interchangeable with a reference product, the agency must find that the biosimilar
product can be expected to produce the same clinical results as the reference product, and (for products administered multiple times)
that the biologic and the reference biologic may be switched after one has been previously administered without increasing safety risks
or risks of diminished efficacy relative to exclusive use of the reference biologic.

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Under
the BPCIA, an application for a biosimilar product may not be submitted to the FDA until four years following the date of approval of
the reference product. The FDA may not approve a biosimilar product until 12 years from the date on which the reference product was approved.
Even if a product is considered to be a reference product eligible for exclusivity, another company could market a competing version
of that product if the FDA approves a full BLA for such product containing the sponsor’s own preclinical data and data from adequate
and well-controlled clinical trials to demonstrate the safety, purity and potency of their product. The BPCIA also created certain exclusivity
periods for biosimilars approved as interchangeable products. Since the passage of the BPCIA, many states have passed laws or amendments
to laws, including laws governing pharmacy practices, which are state regulated, to regulate the use of biosimilars.

Orphan
Drug Designation

Under
the Orphan Drug Act, the FDA may grant orphan drug designation to a drug intended to treat a rare disease or condition—generally
a disease or condition with either a patient population that affects fewer than 200,000 individuals in the United States or a patient
population greater than 200,000 individuals in the United States and there is no reasonable expectation that the cost of developing and
making available the drug will be recovered from sales of the drug in the United States. Orphan drug designation must be requested before
submitting an NDA or BLA. After the FDA grants orphan drug designation, the generic identity of the product and its potential orphan
use are disclosed publicly by the FDA. Orphan drug designation does not convey any advantage in, or shorten the duration of, the regulatory
review and approval process.

The
first applicant to receive FDA approval for a particular active ingredient to treat a particular disease with FDA orphan drug designation
is entitled to a seven-year exclusive marketing period in the United States for that product, for that indication. During the seven-year
exclusivity period, the FDA may not approve any other applications to market the same product for the same disease, except in limited
circumstances, such as a showing of clinical superiority to the product with orphan drug exclusivity or if the FDA finds that the holder
of the orphan drug exclusivity has not shown that it can assure the availability of sufficient quantities of the orphan drug to meet
the needs of the patients with the disease or condition for which the product was designated. Orphan drug exclusivity does not prevent
the FDA from approving a different product for the same disease or condition, or the same product for a different disease or condition.
Among the other benefits of orphan drug designation are tax credits for certain research and a waiver of the NDA or BLA application user
fee.

A
designated orphan drug may not receive orphan drug exclusivity if it is approved for a use that is broader than the indication for which
it received orphan drug designation. In addition, orphan drug exclusive marketing rights in the United States may be lost if the FDA
later determines that the request for designation was materially defective or if the manufacturer is unable to assure sufficient quantities
of the product to meet the needs of patients with the rare disease or condition.

Fast
Track Designation and Breakthrough Therapy Designation

The
FDA is required to facilitate the development, and expedite the review, of drugs that are intended for the treatment of a serious or
life-threatening disease or condition which demonstrate the potential to address unmet medical needs for the condition, and accordingly,
the FDA has established the fast track designation and breakthrough therapy designation programs.

A
product candidate is eligible for fast track designation if it is intended to treat a serious or life-threatening disease or condition
and demonstrates the potential to address unmet medical needs for such disease or condition. Fast track designation applies to the combination
of the product and the specific indication for which it is being studied. Under the fast track program, the sponsor of a drug candidate
may request that the FDA designate the candidate for a specific indication as a fast track product concurrent with, or after, the filing
of the IND for the candidate. The FDA must determine if the product candidate qualifies for fast track designation within 60 days of
receipt of the sponsor’s request. Fast track designation provides increased opportunities for sponsor interactions with the FDA
during preclinical and clinical development, in addition to the potential for rolling review of sections of the applicant’s NDA
or BLA before the application is complete. This rolling review is available if the applicant provides, and the FDA approves, a schedule
for the submission of the remaining information and the applicant pays applicable user fees. However, the FDA’s time period goal
for reviewing an application does not begin until the last section of the application is submitted. Additionally, the fast track designation
may be withdrawn by the FDA if the FDA believes that the designation is no longer supported by data emerging in the clinical trial process.

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Under
the FDA’s breakthrough therapy program, a sponsor may seek FDA designation of its product candidate as a breakthrough therapy if
the product candidate is intended, alone or in combination with one or more other drugs or biologics, to treat a serious or life-threatening
disease or condition and preliminary clinical evidence indicates that it may demonstrate substantial improvement over existing therapies
on one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development. Breakthrough
therapy designation comes with all of the benefits of fast track designation. The FDA may take other actions appropriate to expedite
the development and review of the product candidate, including intensive guidance on an efficient product development program beginning
as early as Phase 1, and FDA organizational commitment to expedited development, including involvement of senior managers and experienced
review staff in a cross-disciplinary review, where appropriate.

Priority
Review

A
product is eligible for priority review if it has the potential to provide a significant improvement in safety or effectiveness in the
treatment, diagnosis or prevention of a serious disease or condition. A priority review means that the goal for the FDA to review an
application is six months, rather than the standard review of ten months under current PDUFA guidelines. Under the current PDUFA agreement,
these six-and ten-month review periods are measured from the “filing” date rather than the receipt date for NDAs for new
molecular entities, which typically adds approximately two months to the timeline for review and decision from the date of submission.
Most products that are eligible for fast track designation are also likely to be considered appropriate to receive a priority review.

Pediatric
Information

Under
the Pediatric Research Equity Act (the “PREA”), NDAs and BLAs, or supplements to NDAs and BLAs, must contain data to assess
the safety and effectiveness of the drug for the claimed indications in all relevant pediatric subpopulations and to support dosing and
administration for each pediatric subpopulation for which the drug is safe and effective. The FDA may grant full or partial waivers,
or deferrals, for submission of data. Unless otherwise required by regulation, PREA does not apply to any drug for an indication for
which orphan designation has been granted.

Disclosure
of Clinical Trial Information

Sponsors
of clinical trials of FDA-regulated products, including drugs and combination products, are required to register and disclose certain
clinical trial information. Information related to the product, patient population, phase of investigation, trial sites and investigators,
and other aspects of the clinical trial is then made public as part of the registration. Sponsors are also obligated to disclose the
results of their clinical trials after completion. Competitors may use this publicly available information to gain knowledge regarding
the progress of development programs. Disclosure of the results of these trials can be delayed until the new product or new indication
being studied has been approved. Failure to timely register a covered clinical study or to submit study results as provided for in the
law can give rise to civil monetary penalties and also prevent the non-compliant party from receiving future grant funds from the federal
government. The Final Rule on ClinicalTrials.gov registration and reporting requirements became effective in 2017, and both the National
Institutes of Health and the FDA have signaled the government’s willingness to begin enforcing those requirements against non-compliant
clinical trial sponsors.

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Other
Regulatory Requirements

Health
Care Laws

Pharmaceutical
companies are subject to additional healthcare regulation and enforcement by the federal government and by authorities in the states
and foreign jurisdictions in which they conduct their business that may constrain the financial arrangements and relationships through
which Scienture LLC researches, as well as sell, market and distribute any products for which Scienture
LLC obtains marketing authorization. Such laws include, without limitation, state and federal anti-kickback, fraud and abuse, false claims,
and transparency laws and regulations related to drug pricing and payments and other transfers of value made to physicians and other
healthcare providers. If Scienture LLC’s operations are found to be in violation of any of
such laws or any other governmental regulations that apply, Scienture LLC may be subject to penalties, including, without limitation,
administrative, civil and criminal penalties, damages, fines, disgorgement, the curtailment or restructuring of operations, integrity
oversight and reporting obligations, exclusion from participation in federal and state healthcare programs and responsible individuals
may be subject to imprisonment. Scienture LLC may be subject to:

●
The
federal Anti-Kickback Statute, which prohibits, among other things, persons or entities from knowingly and willfully soliciting,
receiving, offering or paying any remuneration (including any kickback, bribe or rebate), directly or indirectly, overtly or covertly,
in cash or in kind, to induce, or in return for, the purchase, lease, order, arrangement, or recommendation of any good, facility,
item or service for which payment may be made, in whole or in part, under a federal healthcare program, such as the Medicare and
Medicaid programs. The Medicare program is a national health insurance program that primarily provides health insurance for Americans
aged 65 and older as well as some younger people with disability status as determined by the Social Security Administration and people
with end stage renal disease and amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease). The Medicaid program is a federal
and state health insurance program that helps with medical costs for some people with limited income and resources, and offers benefits
not normally covered by Medicare, including nursing home care and personal care services. A person or entity does not need to have
actual knowledge of the federal Anti-Kickback Statute or specific intent to violate it to have committed a violation. Violations
are subject to civil and criminal fines and penalties for each violation, plus up to three times the remuneration involved, imprisonment,
and exclusion from government healthcare programs. In addition, the government may assert that a claim including items or services
resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the federal
False Claims Act or federal civil monetary penalties;

●
The
federal civil and criminal false claims laws and civil monetary penalty laws, such as the federal False Claims Act, which impose
criminal and civil penalties and authorize civil whistleblower or qui tam actions, against individuals or entities for, among other
things: knowingly presenting, or causing to be presented, to the federal government, claims for payment that are false or fraudulent;
knowingly making, using or causing to be made or used, a false statement of record material to a false or fraudulent claim or obligation
to pay or transmit money or property to the federal government or knowingly concealing or knowingly and improperly avoiding or decreasing
an obligation to pay money to the federal government. Manufacturers can be held liable under the federal False Claims Act even when
they do not submit claims directly to government payors if they are deemed to “cause” the submission of false or fraudulent
claims. The federal False Claims Act also permits a private individual acting as a “whistleblower” to bring actions on
behalf of the federal government alleging violations of the federal False Claims Act and to share in any monetary recovery;

●
The
federal Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), which created new federal criminal statutes
that prohibit a person from knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit
program or obtain, by means of false or fraudulent pretenses, representations or promises, any of the money or property owned by,
or under the custody or control of, any healthcare benefit program, regardless of the payor (e.g., public or private) and knowingly
and willfully falsifying, concealing or covering up by any trick or device a material fact or making any materially false, fictitious,
or fraudulent statements or representations in connection with the delivery of, or payment for, healthcare benefits, items or services
relating to healthcare matters; similar to the federal Anti-Kickback Statute, a person or entity does not need to have actual knowledge
of the statute or specific intent to violate it in order to have committed a violation;

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●

HIPAA,
as amended by the Health Information Technology for Economic and Clinical Health Act of 2009
(“HITECH”) and their respective implementing regulations, including the Final
Omnibus Rule published in January 2013, which impose requirements on certain covered healthcare
providers, health plans, and healthcare clearinghouses as well as their respective business
associates, independent contractors or agents of covered entities, that perform services
for them that involve the creation, maintenance, receipt, use, or disclosure of, individually
identifiable health information relating to the privacy, security and transmission of individually
identifiable health information. Individually identifiable information means information
that is a subset of health information, including demographic information collected from
an individual, and: (1) is created or received by a health care provider, health plan, employer,
or health care clearinghouse; and (2) relates to the past, present, or future physical or
mental health or condition of an individual; the provision of health care to an individual;
or the past, present, or future payment for the provision of health care to an individual;
and (a) that identifies the individual; or (b) with respect to which there is reasonable
basis to believe the information can be used to identify the individual.

HITECH
also created new tiers of civil monetary penalties, amended HIPAA to make civil and criminal penalties directly applicable to business
associates, and gave state attorneys general new authority to file civil actions for damages or injunctions in federal courts to
enforce the federal HIPAA laws and seek attorneys’ fees and costs associated with pursuing federal civil actions. In addition,
there may be additional federal, state and non-U.S. laws which govern the privacy and security of health and other personal
information in certain circumstances, many of which differ from each other in significant ways and may not have the same effect,
thus complicating compliance efforts;

●
The
U.S. federal transparency requirements under the ACA, including the provision commonly referred to as the Physician Payments Sunshine
Act, and its implementing regulations, which requires applicable manufacturers of drugs, devices, biologics and medical supplies
for which payment is available under Medicare, Medicaid or the Children’s Health Insurance Program to report annually to the
Centers for Medicare & Medicaid Services (“CMS”), information related to payments or other transfers of value made
to physicians (defined to include doctors, dentists, optometrists, podiatrists and chiropractors), certain other licensed health
care practitioners and teaching hospitals, as well as ownership and investment interests held by the physicians described above and
their immediate family members;

●
Federal
price reporting laws, which require manufacturers to calculate and report complex pricing metrics to government programs, where such
reported prices may be used in the calculation of reimbursement and/or discounts on approved products; and

●
Federal
consumer protection and unfair competition laws, which broadly regulate marketplace activities and activities that potentially harm
consumers.

Additionally,
Scienture LLC is subject to state and foreign equivalents of each of the healthcare laws and regulations described above, among others,
some of which may be broader in scope and may apply regardless of the payor. Many U.S. states have adopted laws similar to the federal
Anti-Kickback Statute and False Claims Act, and may apply to Scienture LLC’s business practices, including, but not limited to,
research, distribution, sales or marketing arrangements and claims involving healthcare items or services reimbursed by non-governmental
payors, including private insurers. In addition, some states have passed laws that require pharmaceutical companies to comply with the
April 2003 Office of Inspector General Compliance Program Guidance for Pharmaceutical Manufacturers and/or the Pharmaceutical Research
and Manufacturers of America’s Code on Interactions with Healthcare Professionals. Several states also impose other marketing restrictions
or require pharmaceutical companies to make marketing or price disclosures to the state and require the registration of pharmaceutical
sales representatives. There are ambiguities as to what is required to comply with these state requirements and if Scienture LLC fails
to comply with an applicable state law requirement Scienture LLC could be subject to penalties. State and foreign laws, including for
example the European Union General Data Protection Regulation, which became effective in May 2018, also govern the privacy and security
of health information in some circumstances, many of which differ from each other in significant ways and often are not preempted by
HIPAA, thus complicating compliance efforts. There are ambiguities as to what is required to comply with these state requirements and
if Scienture LLC fails to comply with an applicable state law requirement Scienture LLC could be subject to penalties.

The
scope and enforcement of each of these laws is uncertain and subject to rapid change in the current environment of healthcare reform.
Federal and state enforcement bodies have recently increased their scrutiny of interactions between healthcare companies and healthcare
providers, which has led to a number of investigations, prosecutions, convictions and settlements in the healthcare industry.

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Ensuring
that Scienture LLC’s internal operations and future business arrangements with third parties comply with applicable healthcare
laws and regulations will involve substantial costs. It is possible that governmental authorities will conclude that Scienture LLC’s
business practices do not comply with current or future statutes, regulations, agency guidance or case law involving applicable fraud
and abuse or other healthcare laws and regulations. If Scienture LLC’s operations are found to be in violation of any of the laws
described above or any other governmental laws and regulations that may apply to us, Scienture LLC may be subject to significant penalties,
including administrative, civil and criminal penalties, damages, fines, disgorgement, the exclusion from participation in federal and
state healthcare programs, individual imprisonment, reputational harm,  and the curtailment or restructuring of Scienture LLC’s
operations, as well as additional reporting obligations and oversight if Scienture LLC becomes subject to a corporate integrity agreement
or other agreement to resolve allegations of non-compliance with these laws. Further, defending against any such actions can be costly
and time consuming, and may require significant financial and personnel resources. Therefore, even if Scienture LLC is successful in
defending against any such actions that may be brought against it, its business may be impaired. If any of the physicians or other providers
or entities with whom Scienture LLC expects to do business are found to not be in compliance with applicable laws, they may be
subject to criminal, civil or administrative sanctions, including exclusions from government funded healthcare programs and imprisonment.
If any of the above occur, Scienture LLC’s ability to operate its business and its results of operations could be adversely affected.

Healthcare
Reform

Payors,
whether domestic or foreign, or governmental or private, are developing increasingly sophisticated methods of controlling healthcare
costs and those methods are not always specifically adapted for new technologies such as gene therapy and therapies addressing rare diseases
such as those Scienture LLC is developing. In both the United States and certain foreign jurisdictions, there have been a number of legislative
and regulatory changes to the health care system that could impact Scienture LLC’s ability to sell its products profitably. In
particular, in 2010, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of
2010 (collectively, the “ACA”) was enacted, which, among other things, subjected biologic products to potential competition
by lower-cost biosimilars; increased the minimum Medicaid rebates owed by most manufacturers under the Medicaid Drug Rebate Program;
extended the Medicaid Drug Rebate program to utilization of prescriptions of individuals enrolled in Medicaid managed care organizations;
subjected manufacturers to new annual fees and taxes for certain branded prescription drugs; created a Medicare Part D coverage gap discount
program, in which manufacturers must agree to offer 70% point-of-sale discounts off negotiated prices of applicable brand drugs
to eligible beneficiaries during their coverage gap period, as a condition for the manufacturer’s outpatient drugs to be covered
under Medicare Part D; and provided incentives to programs that increase the federal government’s comparative effectiveness research.

In
addition, other legislative and regulatory changes have been proposed and adopted in the United States since the ACA was enacted.

●
The
Budget Control Act of 2011 and subsequent legislation, among other things, created measures for spending reductions by Congress
that include aggregate reductions of Medicare payments to providers of 2% per fiscal year, which remain in effect through 2031. Due
to the Statutory Pay-As-You-Go Act of 2010, estimated budget deficit increases resulting from the American Rescue Plan Act of 2021,
and subsequent legislation, Medicare payments to providers will be further reduced starting in 2025 absent further legislation. The U.S.
American Taxpayer Relief Act of 2012 further reduced Medicare payments to several types of providers and increased the statute
of limitations period for the government to recover overpayments to providers from three to five years.

●
On
April 13, 2017, CMS published a final rule that gives states greater flexibility in setting benchmarks for insurers in the individual
and small group marketplaces, which may have the effect of relaxing the essential health benefits required under the ACA for plans
sold through such marketplaces.

●
On
May 30, 2018, the Right to Try Act, was signed into law. The law, among other things, provides a federal framework for certain patients
to access certain investigational new drug products that have completed a Phase 1 clinical trial and that are undergoing investigation
for FDA approval. Under certain circumstances, eligible patients can seek treatment without enrolling in clinical trials and without
obtaining FDA permission under the FDA expanded access program. There is no obligation for a pharmaceutical manufacturer to make
its drug products available to eligible patients as a result of the Right to Try Act. 

●
On May
23, 2019, CMS published a final rule to allow Medicare Advantage Plans the option of using step therapy for Part B drugs.

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Additionally,
there has been increasing legislative and enforcement interest in the United States with respect to drug pricing practices.  Specifically,
there has been heightened governmental scrutiny over the manner in which manufacturers set prices for their marketed products, which
has resulted in several U.S. Congressional inquiries and proposed and enacted federal and state legislation designed to, among other
things, bring more transparency to drug pricing, reduce the cost of prescription drugs under Medicare, and review the relationship between
pricing and manufacturer patient programs.

In
August 2022, the Inflation Reduction Act of 2022 (the “IRA”), was signed into law. The IRA includes several provisions that
may impact Scienture LLC’s business, depending on how various aspects of the IRA are implemented. Provisions that may impact Scienture
LLC’s business include a $2,000 out-of-pocket cap for Medicare Part D beneficiaries, the imposition of new manufacturer financial
liability on most drugs in Medicare Part D, permitting the U.S. government to negotiate Medicare Part B and Part D pricing for certain
high-cost drugs and biologics without generic or biosimilar competition, requiring companies to pay rebates to Medicare for drug prices
that increase faster than inflation, and delay until January 1, 2032 the implementation of the U.S. Department of Health and Human
Services (“HHS”) rebate rule that would have limited the fees that pharmacy benefit managers can charge. Further, under the
IRA, orphan drugs are exempted from the Medicare drug price negotiation program, but only if they have one orphan designation and for
which the only approved indication is for that disease or condition.  If a product receives multiple orphan designations or has
multiple approved indications, it may not qualify for the orphan drug exemption. The implementation of the IRA is currently subject to
ongoing litigation challenging the constitutionality of the IRA’s Medicare drug price negotiation program. The effects of the IRA
on Scienture LLC’s business and the healthcare industry in general is not yet known.

Former
President Biden issued multiple executive orders that sought to reduce prescription drug costs. In February 2023, HHS also issued
a proposal in response to an October 2022 executive order from former President Biden that includes a proposed prescription drug pricing
model that will test whether targeted Medicare payment adjustments will sufficiently incentivize manufacturers to complete confirmatory
trials for drugs approved through FDA’s accelerated approval pathway. A number of these and other proposed measures may require
authorization through additional legislation to become effective, and the Trump administration may reverse or otherwise change these
measures. However, Congress has indicated that it will continue to seek new legislative measures to control drug costs.

Scienture
LLC expects that additional U.S. federal healthcare reform measures will be adopted in the future, any of which could limit the amounts
that the U.S. Federal Government will pay for healthcare drugs and services, which could result in reduced demand for Scienture LLC’s
drug candidates or additional pricing pressures.

Individual
states in the United States have also become increasingly active in passing legislation and implementing regulations designed to control
pharmaceutical and biological product pricing, including price or patient reimbursement constraints, discounts, restrictions on certain
drug access and marketing cost disclosure and transparency measures, and designed to encourage importation from other countries and bulk
purchasing. Legally mandated price controls on payment amounts by third-party payors or other restrictions could harm Scienture LLC’s
business, financial condition, results of operations and prospects. In addition, regional healthcare authorities and individual hospitals
are increasingly using bidding procedures to determine what pharmaceutical products and which suppliers will be included in their prescription
drug and other healthcare programs. This could reduce the ultimate demand for Scienture LLC’s drugs or put pressure on its drug
pricing, which could negatively affect its business, financial condition, results of operations and prospects.

Pharmaceutical
Coverage, Pricing, and Reimbursement

The
success of Scienture LLC’s product candidates, if approved, depends on the availability of coverage and adequate reimbursement
from third-party payors. Scienture LLC cannot be sure that coverage and reimbursement will be available for, or accurately estimate the
potential revenue from, its product candidates or assure that coverage and reimbursement will be available for any product that it may
develop. Patients who are provided medical treatment for their conditions generally rely on third-party payors to reimburse all or part
of the costs associated with their treatment. Coverage and adequate reimbursement from governmental healthcare programs, such as Medicare
and Medicaid, and commercial payors is critical to new product acceptance.

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Government
authorities and other third-party payors, such as private health insurers and health maintenance organizations, decide which drugs and
treatments they will cover and the amount of reimbursement. Coverage and reimbursement by a third-party payor may depend upon a number
of factors, including the third-party payor’s determination that use of a product is:

●
a
covered benefit under its health plan;

●
safe,
effective and medically necessary;

●
appropriate
for the specific patient;

●
cost-effective;
and

●
neither
experimental nor investigational.

In
the United States, no uniform policy of coverage and reimbursement for products exists among third-party payors. As a result, obtaining
coverage and reimbursement approval of a product from a government or other third-party payor is a time-consuming and costly process
that could require Scienture LLC to provide to each payor supporting scientific, clinical and cost-effectiveness data for the use of
Scienture LLC’s products on a payor-by-payor basis, with no assurance that coverage and adequate reimbursement will be obtained.
In the United States, the principal decisions about reimbursement for new medicines are typically made by CMS. CMS decides whether and
to what extent a new medicine will be covered and reimbursed under Medicare and private payors tend to follow CMS to a substantial degree.
Even if Scienture LLC obtains coverage for a given product, the resulting reimbursement payment rates might not be adequate for Scienture
LLC to achieve or sustain profitability or may require co-payments that patients find unacceptably high. Additionally, third-party payors
may not cover, or provide adequate reimbursement for, long-term follow-up evaluations required following the use of product candidates,
once approved. Patients are unlikely to use Scienture LLC’s product candidates, once approved, unless coverage is provided and
reimbursement is adequate to cover a significant portion of their cost. There is significant uncertainty related to insurance coverage
and reimbursement of newly approved products. It is difficult to predict at this time what third-party payors will decide with respect
to the coverage and reimbursement for Scienture LLC’s product candidates.

Net
prices for drugs may be reduced by mandatory discounts or rebates required by government healthcare programs or private payors and by
any future relaxation of laws that presently restrict imports of drugs from countries where they may be sold at lower prices than in
the United States. Increasingly, third-party payors are requiring that drug companies provide them with predetermined discounts from
list prices and are challenging the prices charged for medical products. Scienture LLC cannot be sure that reimbursement will be available
for any product candidate that it commercializes and, if reimbursement is available, the level of reimbursement. In addition, many pharmaceutical
manufacturers must calculate and report certain price reporting metrics to the government, such as average sales price and best price.
Penalties may apply in some cases when such metrics are not submitted accurately and timely. Further, these prices for drugs may be reduced
by mandatory discounts or rebates required by government healthcare programs. Payment methodologies may be subject to changes in healthcare
legislation and regulatory initiatives.

Scienture
LLC expects that healthcare reform measures that may be adopted in the future may result in more rigorous coverage criteria and in additional
downward pressure on the price that Scienture LLC receives for any approved product. The implementation of cost containment measures
or other healthcare reforms may prevent Scienture LLC from being able to generate revenue, attain profitability, or commercialize Scienture
LLC’s products. Legislative and regulatory proposals have been made to expand post-approval requirements and restrict sales and
promotional activities for pharmaceutical products. Scienture LLC cannot be sure whether additional legislative changes will be enacted,
or whether existing regulations, guidance or interpretations will be changed, or what the impact of such changes on the marketing approvals
or clearances of Scienture LLC’s product candidates, if any, may be.

In
addition, in some foreign countries, the proposed pricing for a drug must be approved before it may be lawfully marketed. The requirements
governing drug pricing vary widely from country to country. For example, the European Union provides options for its Member States to
restrict the range of medicinal products for which their national health insurance systems provide reimbursement and to control the prices
of medicinal products for human use. To obtain reimbursement or pricing approval, some of these countries may require the completion
of clinical trials that compare the cost effectiveness of a particular product candidate to currently available therapies. A Member State
may approve a specific price for the medicinal product or it may instead adopt a system of direct or indirect controls on the profitability
of the company placing the medicinal product on the market. There can be no assurance that any country that has price controls or reimbursement
limitations for pharmaceutical products will allow favorable reimbursement and pricing arrangements for any of Scienture LLC’s
product candidates. Historically, products launched in the European Union do not follow price structures of the United States and generally
prices tend to be significantly lower.

Environmental
Matters

The
Company and Scienture LLC’s operations and those of its third-party manufacturers and suppliers are subject to national, state
and local environmental laws. Scienture LLC has made, and intends to continue to make, expenditures and undertake efforts to comply
with applicable laws. Scienture LLC believes the safety procedures utilized by it for the handling and disposing hazardous materials
comply with the standards prescribed by applicable laws and regulations.

Human
Capital

The
Company’s success begins and ends with its people. The Company’s solid progress to date reflects the talent and hard
work of all of its employees. The Company considers the intellectual capital of its employees to be an essential driver of its
business and key to its future prospects. Attracting, developing, and retaining talented people in technical, marketing, sales,
research, and other positions is crucial to executing its strategy and its ability to compete effectively.

Talent
Acquisition, Retention and Development

The
Company’s key human capital objectives are to attract, retain and develop the highest quality talent. The Company employs
various human resource programs in support of these objectives. The Company’s ability to recruit and retain such talent
depends on a number of factors, including compensation and benefits, talent development and career opportunities, and the work
environment.

The Company attracts and rewards its employees by providing market competitive compensation and benefit packages, including incentives and recognition
plans that extend to all levels in its organization. To that end, Scienture LLC offers a
comprehensive total rewards program aimed at health, home-life, and financial needs of its employees. Scienture LLC’s total rewards
package includes market-competitive pay, broad-based stock grants, bonuses, healthcare benefits, retirement savings plans, paid time
off and family leave, an Employee Assistance Program, and mental health services.

The
Company is committed to the safety, health, and security of its employees. The Company believes a hazard-free environment is
critical for the success of its business. Throughout the Company’s operations, it strives to ensure that all its
employees have access to safe workplaces that allow them to succeed in their jobs. The Company’s experience
and continuing focus on workplace safety has enabled it to preserve business continuity without sacrificing its commitment to
keeping its colleagues and workplace visitors safe.

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Facilities

The Company’s corporate headquarters is located at 20 Austin Blvd, Commack, NY 11725, which is 2,000 square feet of office space with a
lease termination date of July 31, 2026. The Company believes its facilities are sufficient to meet its current needs for the foreseeable
future.

Legal
Proceedings

From
time to time, the Company may be involved in various claims and legal proceedings.

On
March 11, 2025, Kesin filed a complaint against Scienture LLC in the United States District Court for the Eastern District of New York
stemming from exclusive license and commercial agreements that Scienture LLC entered into on August 28, 2022 and April 24, 2023, with
Kesin, a related party, pursuant to which Scienture LLC granted the exclusive license rights to commercialize SCN-102 and SCN-104, respectively
to Kesin for use in the United States of America (together, the “Kesin Agreement”). In consideration of the rights granted,
Scienture LLC received milestone payments and reimbursement of costs actually incurred related to SCN-102 and SCN-104.

On
March 13, 2024, the parties terminated the Kesin Agreement by entering a Confidential Termination Agreement (the “Kesin Termination
Agreement”), and the parties agreed that Scienture LLC would pay Kesin a total gross amount of $1.285 million upon commercialization
of either SCN-102 or SCN-104 via a royalty arrangement. The Kesin Termination Agreement also requires that if the full $1.285 million
has not been repaid within two years of the earlier of (i) commercial launch of a product or (ii) 120 days after FDA approval of a product,
then interest will accrue prospectively at a rate of 8% annually on the unpaid balance.

In
August 2024, Kesin demanded immediate payment of the full amount under the Kesin Termination Agreement, alleging the full amount is
payable in connection with the consummation Scienture LLC’s business combination with the Company. Scienture LLC disputed that
the amount was payable, and the parties entered into discussions to resolve the issue. Nevertheless, Kesin filed its complaint on
March 11, 2025, seeking payment of the disputed $1.285 million. The case was voluntarily dismissed on October 1, 2025. The Company
and Kesin entered into a Settlement Agreement and Release on October 27, 2025, whereby Kesin agreed to unconditionally release and
discharge the Company from all actions related to the complaint in exchange for the Company paying $1.285 million plus 8% interest
from March 13, 2025, and legal fees and costs related to the complaint according to a payment schedule through December
2026.

Employees

Currently,
the Company and Scienture LLC collectively employ approximately four (4) full-time employees and five (5) part-time employees. We
are not a party to any collective bargaining agreements and have not experienced any strikes or work stoppages. We consider our relations
with our employees and consultants to be satisfactory.

Seasonality

Our
business is not directly affected by seasonal fluctuations but is affected indirectly by the fall and winter flu season, to the extent
it leads to an increased demand for certain generic pharmaceuticals.

Subsidiaries

We currently exist as a holding
company directly owning 100% of the equity interests of Scienture LLC. Scienture LLC is a specialty pharmaceutical company focused on
the commercialization and development of products for the treatment of Cardiovascular (CVS) and Central Nervous System (CNS) diseases.
Scienture LLC launched its first commercial product for hypertension and is in the process of commercializing its second product for the
treatment of opioid overdose. Its development pipeline consists of a broad range of novel product candidates including new potential treatments
for migraine, thrombosis, pain and other related disorders.

Dispositions

SOSRx,
LLC

SOSRx,
LLC (“SOSRx”) was formed on February 15, 2022. The Company entered into a relationship with Exchange Health, LLC (“Exchange
Health”), a technology company providing an online platform for manufacturers and suppliers to sell and purchase pharmaceuticals, pursuant to which SOSRx, a Delaware limited liability company, was formed, which was owned 51% by the Company and 49% by Exchange Health. SOSRx did not
generate material revenue and in February 2023 the Company voluntarily withdrew from the joint venture agreement.

Community
Specialty Pharmacy, LLC and Alliance Pharma Solutions, LLC

On
January 20, 2023, the Company entered into Membership Interest Purchase Agreements to sell 100% of the outstanding membership interests
of the Company’s former subsidiaries, Community Specialty Pharmacy, LLC and Alliance Pharma Solutions, LLC (d.b.a DelivMeds). The
Company also agreed to enter into a Master Service Agreement to operate the businesses prior to closing. The transactions contemplated
by the Membership Interest Purchase Agreements closed on August 22, 2023.

Superlatus
Inc.

On
July 14, 2023, the Company entered into an Amended and Restated Agreement and Plan of Merger (the “Superlatus Merger Agreement”)
with Superlatus Inc., a diversified food technology company, and Foods Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary
of the Company (“Merger Sub”).

On
July 31, 2023, the Company completed its acquisition of Superlatus in accordance with the terms and conditions of the Superlatus Merger
Agreement (the “Superlatus Merger”), pursuant to which the Company acquired Superlatus by way of a merger of the Merger Sub
with and into Superlatus, with Superlatus being a wholly owned subsidiary of the Company and the surviving entity in the Superlatus Merger.

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Under
the terms of the Superlatus Merger Agreement, at the closing of the Superlatus Merger (the “Closing”), shareholders of Superlatus
received an aggregate of 136,441 shares of the Company’s common stock and 306,855 shares of the Company’s Series B Preferred
Stock, par value $0.00001 per share (the “Series B Preferred Stock”), convertible into 100 shares of the Company’s
common stock. At Closing, the value of the Company’s common stock was $7.30 per share, resulting in a total value of $225,000,169.

On
October 13, 2023, the Company announced that Superlatus PD Holding Company, Inc., a purported subsidiary of Superlatus, entered into
a supplier agreement with Rainforest Distribution Corp, a New York corporation (“Rainforest”), pursuant to which Superlatus
allegedly appointed Rainforest as its exclusive distributor for Superlatus’ portfolio of consumer packaged goods brands in certain
markets. The Company later learned and announced that neither the Company’s management nor the Company’s Board of Directors
authorized or approved the organization of Superlatus PD Holding Company, Inc. or the entry into the supplier agreement. Instead, the
Company’s management determined that certain representatives of a former subsidiary of the Company likely unilaterally took actions
related to the supplier agreement.

On
January 8, 2024, the Company entered into Amendment No. 1 to the Amended and Restated Agreement and Plan of Merger (the “Superlatus
Amendment”) as not all of the closing conditions of the Superlatus Merger Agreement were met. Under the terms of the Superlatus
Amendment, the merger consideration to the shareholders of Superlatus was adjusted to the aggregate of 136,441 shares of the Company’s
common stock and 15,759 shares of the Company’s Series B Preferred Stock, resulting in a total value of $12,500,089. Additionally,
the shareholders of Superlatus agreed to surrender back to the Company 291,096 shares of the Company’s Series B Preferred Stock.

On
March 5, 2024, the Company entered in a Stock Purchase Agreement (“Superlatus SPA”) with Superlatus Foods Inc. (the “Buyer”).
Pursuant to the Superlatus SPA, the Company sold all of the issued and outstanding stock of Superlatus to the Buyer. A $1.00 purchase
price was delivered to the Company at the closing, which occurred simultaneously with the execution of the Superlatus SPA.
As a result of the transaction Superlatus is no longer a subsidiary of the Company, and the rights and assets of Superlatus together
with various liabilities and obligations that were specific to Superlatus became rights and obligations of the Buyer.

Other
Legacy Subsidiaries

The
Company also previously owned 100% of Softell Inc. (f/k/a Trxade Inc.) (“Softell”), Integra Pharma Solutions, LLC
(“IPS”), Bonum Health, Inc., and Bonum Health, LLC.

Softell
& IPS Entities

On October
4, 2024, the Company and Softell entered into an Assignment and Assumption of Membership
Interests (the “IPS Assignment Agreement”), pursuant to which the Company transferred, and Softell accepted, 100% of the membership
interests of IPS. As a result, IPS became a wholly-owned subsidiary of Softell.

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On April
8, 2025, the Company entered into a Membership Interest Purchase Agreement (the “IPS MIPA”) with Tollo Health, Inc. (“Tollo”),
pursuant to which Tollo agreed to purchase and the Company agreed to sell all of the Company’s membership interests in IPS. Suren
Ajjarapu, the Company’s former Chief Executive Officer, and Prashant Patel, the Company’s former President and Chief Operating
Officer, each have a beneficial interest in Tollo.

On April 8, 2025, the Company
also entered into a Stock Purchase Agreement (the “Softell SPA”) with Tollo, pursuant to which Tollo agreed to purchase and
the Company agreed to sell all issued and outstanding shares of common stock of Softell.

Bonum
Health Entities

On April
8, 2025, the Company also entered into a Stock Purchase Agreement (the “Bonum SPA”)
with Tollo, pursuant to which Tollo agreed to purchase and the Company agreed to sell all issued and outstanding shares of common stock
of Bonum Health, Inc.

In November 2025, the Company
dissolved Bonum Health, LLC.

The
divestitures described above are part of a broader strategic realignment at the Company designed to sharpen operational focus and
unlock long-term value. It is aligned with the Company’s commitment to streamline its core operations, optimize its portfolio,
and accelerate growth in the Branded and Specialty Pharma markets. The Company intends to use the proceeds obtained from the
divestment to facilitate the high-growth commercial and strategic product development activities at its Scienture LLC
subsidiary.

Corporate
and Organizational History

We
were incorporated in Delaware on July 15, 2005, as “Bluebird Exploration Company” (“Bluebird”). Bluebird was
originally formed to engage in the exploitation of mineral properties. In December 2008, Bluebird changed its name to “Xcellink
International, Inc.” (“XCEL”), and subsequently announced that its business plan was being expanded to include the
development and marketing of platform-independent customer-centric payment systems and methodologies. XCEL was unable to raise the funds
necessary to implement its business strategy, and never generated any revenue.

On
November 22, 2013, Trxade Group, Inc., a Nevada corporation (“Trxade Nevada”) and wholly owned subsidiary of Trxade,
Inc., a Florida corporation (“Trxade Florida”), acquired a controlling interest of XCEL common stock pursuant to a
Purchase and Sale Agreement dated November 7, 2013. Trxade Florida was formed in August 2010 under the name PharmaCycle LLC, a
Nevada limited liability company (“PharmaCycle”). PharmaCycle was formed by Prashant Patel, our former President and Chief
Operating Officer. In January 2013,
PharmaCycle converted into a Florida corporation and changed its name to Trxade, Inc. In May 2013, Trxade Florida formed Trxade
Nevada as a wholly owned subsidiary. Subsequently, Trxade Nevada acquired Trxade Florida pursuant to a reverse triangular merger,
resulting in Trxade Florida becoming a wholly-owned subsidiary of Trxade Nevada (the “Nevada-Florida Merger”). Immediately
following the Nevada-Florida Merger, Surendra Ajjarapu, the Company’s former Chief Executive Officer, and Mr. Patel, the Company’s former President and Chief Operating Officer, collectively owned 99% of Trxade Nevada.

On
December 16, 2013, Trxade Nevada and XCEL entered into a definitive merger agreement providing for the merger of Trxade Nevada with
and into XCEL, with XCEL continuing as the surviving corporation (the “XCEL Merger”). The XCEL Merger closed in January
2014. As a result of the XCEL Merger, XCEL acquired Trxade Nevada and Trxade Nevada’s wholly owned subsidiaries, including
IPS. In connection with the XCEL Merger, XCEL changed its name to “Trxade Group, Inc.” and changed its trading
symbol to “TRXD”.

Our common stock was approved for listing on Nasdaq under the symbol “MEDS” on February 13, 2020.

On
June 1, 2021, we changed our corporate name from “Trxade Group, Inc.” to “TRxADE HEALTH, Inc.”

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On
July 25, 2024, the Company entered into and closed an Agreement and Plan of Merger (the “Scienture Merger Agreement”) with
MEDS Merger Sub I, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub I”), MEDS Merger
Sub II, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (“Merger Sub II” and, together
with Merger Sub I, the “Merger Subs”), and Scienture LLC. Pursuant
to the Scienture Merger Agreement, (i) Merger Sub I merged with and into Scienture LLC (the “First Merger”), with Scienture
LLC continuing as the surviving entity and a wholly owned subsidiary of the Company, and (ii) Scienture LLC merged with and into Merger
Sub II (the “Second Merger” and, together with the First Merger and all other related transactions, the “Scienture
Merger”), with Merger Sub II continuing as the surviving entity. In connection with the transactions, the Company changed its name
to “Scienture Holdings, Inc.” and Merger Sub II, as the surviving entity of the Second Merger, changed its name to “Scienture,
LLC”.