Appili Therapeutics Reports Financial and Operational Results for First Quarter of Fiscal Year 2027

Appili Therapeutics Inc. (TSX: APLI) (OTC Pink: APLIF) (the "Company" or "Appili"), a biopharmaceutical company focused on drug development for infectious diseases and medical countermeasures, today announced its financial and operational results for the first quarter of its fiscal year 2027, which ended on June 30, 2026. All figures are in Canadian dollars unless otherwise stated. "While ATI-1801 remains the Company's principal near-term regulatory and value-creation opportunity, Appili is expanding its portfolio strategy to build a broader biodefence and health-security company, with an increased emphasis on defence-related medical needs," said Dr. Don Cilla, President and CEO of Appili. Revised Business Strategy The Company was founded to acquire, develop, and commercialize novel therapeutics addressing infectious diseases and biodefense priorities. Our revised strategic focus is driven by the significant unmet medical and public health need for innovative countermeasures against naturally occurring and emerging infectious diseases, antimicrobial resistance, and biological threats, as well as the expanding regulatory, procurement, and non-dilutive funding mechanisms available to support development. These opportunities are increasingly supported by U.S. Government agencies, allied governments, and international organizations seeking resilient biodefense and health security capabilities. TRUQUESTA TM (ATI-1801) - Topical Antiparasitic Program with an Aligned Regulatory Path Following positive feedback from the U.S. Food and Drug Administration ("FDA") on its scientific bridging strategy, TRUQUESTA TM , a topical formulation of paromomycin in development for cutaneous leishmaniasis has a clearly defined registration pathway to support an NDA submission. Appili is actively pursuing non-dilutive funding from global health organizations and government agencies that share the Company's focus on tropical diseases to execute this strategy and complete the remaining development work. Appili's TRUQUESTA TM is potentially eligible to receive a Priority Review Voucher ("PRV") upon FDA approval, which is anticipated as early as the fourth quarter of 2029 subject to securing the requisite funding. Recent PRV transactions have reached US$200 million, representing meaningful non-dilutive value creation LIKMEZ® (ATI-1501), Commercial Momentum Building in U.S. Market Saptalis Pharmaceuticals, Appili's manufacturing and commercialization partner, continues to commercialize LIKMEZ (metronidazole oral suspension, 500 mg/5 mL), the first and only FDA-approved liquid oral formulation of metronidazole. Since the re-launch in May 2025, LIKMEZ has demonstrated sales growth, reflecting clinician and patient demand. In April 2025, additional patents protecting LIKMEZ's composition and preparation methods were published in the U.S. and Mexico, with patent protection extending through 2039. Lender Extensions Pursuant to the terms of such extensions, all amounts owing under the Bloom Burton Loan, together with all accrued and unpaid interest, will be due on September 30, 2026. All amounts owing under the Long Zone Holdings Loan, together with all accrued and unpaid interest, unless Appili completes an equity financing with minimum gross proceeds of at least CAD$350,000 by August 31, 2026, in which case the extension will continue in full force and effect until September 30, 2026. Financial Results The Company prepares its financial statements in accordance with IFRS Accounting Standards as issued by the International Accounting Standard Board and Part I of Chartered Professional Accountants of Canada Handbook-Accounting. All figures are in Canadian dollars unless otherwise stated. For the three months ending December 31, 2025, the Company reported a net and comprehensive loss of $1 million ($0.01 per share), representing an increase of $0.5 million compared to the net loss of $0.5 million ($...