NEPH NEPHROS INC

“As previously disclosed in Part I, Item 4 of our Quarterly Report on Form 10-Q for the period ended June 30, 2025, management identified a material weakness in our internal control over financial reporting related to the recognition of revenue from contracts that included a combination of products sales and service-based deliverables and the application of ASC 606.”

“Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures were not effective as of September 30, 2026, due to the existence of a material weakness in our internal control over financial reporting, as discussed below.”