What changed in this filing

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Item 1. Financial Statements

2026-08-12 compared with 2026-05-13 · 97 added, 72 removed, 383 unchanged (31% of the section changed)

4 unchanged sentences

Dollars, except share amounts)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Current assets:

2 unchanged sentences

Accounts receivable 369 1,447

License receivable from Genevant 178,741 —

Receivable from Genevant license 179,373 —

Prepaid expenses and other current assets 1,516 1,538

30 unchanged sentences

Dollars, except share and per share amounts)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Collaborations and licenses $ 202 $ 10,213 $ 406 $ 11,529

8 unchanged sentences

Total operating expenses 6,978 9,251 17,196 36,714

Income (loss) from operations 168,908 ( 25,699 )

(Loss) income from operations ( 5,964 ) 1,488 162,944 ( 24,211 )

Interest income 842 1,042 1,657 2,239

2 unchanged sentences

Total other income 821 1,035 1,608 2,208

Net income (loss) $ 169,695 $ ( 24,526 )

Net income (loss) per common share

Net (loss) income $ ( 5,143 ) $ 2,523 $ 164,552 $ ( 22,003 )

Net (loss) income per common share

Basic $ ( 0.03 ) $ 0.01 $ 0.84 $ ( 0.12 )

3 unchanged sentences

Diluted 197,470,724 192,399,733 196,847,687 191,130,631

Comprehensive income (loss)

Comprehensive (loss) income

Unrealized loss on available-for-sale securities $ ( 49 ) $ ( 21 ) $ ( 146 ) $ ( 52 )

Comprehensive income (loss) $ 169,598 $ ( 24,557 )

Comprehensive (loss) income $ ( 5,192 ) $ 2,502 $ 164,406 $ ( 22,055 )

See accompanying notes to the condensed consolidated financial statements.

13 unchanged sentences

Balance March 31, 2026 196,947,757 $ 1,444,494 $ 74,256 $ ( 1,210,378 ) $ ( 48,195 ) $ 260,177

Stock-based compensation expense — — 1,625 — — 1,625

Issuance of common shares pursuant to exercise of options 686,361 3,683 ( 1,560 ) — — 2,123

Unrealized loss on available-for-sale securities — — — — ( 49 ) ( 49 )

Net loss — — — ( 5,143 ) — ( 5,143 )

Balance June 30, 2026 197,634,118 $ 1,448,177 $ 74,321 $ ( 1,215,521 ) $ ( 48,244 ) $ 258,733

See accompanying notes to the condensed consolidated financial statements.

13 unchanged sentences

Balance March 31, 2025 191,481,474 $ 1,416,332 $ 82,089 $ ( 1,371,098 ) $ ( 48,166 ) $ 79,157

Stock-based compensation expense — — 864 — — 864

Issuance of common shares pursuant to exercise of options 160,037 778 ( 325 ) — — 453

Unrealized loss on available-for-sale securities — — — — ( 21 ) ( 21 )

Net income — — — 2,523 — 2,523

Balance June 30, 2025 191,641,511 $ 1,417,110 $ 82,628 $ ( 1,368,575 ) $ ( 48,187 ) $ 82,976

See accompanying notes to the condensed consolidated financial statements.

2 unchanged sentences

(In thousands of U.S.

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

10 unchanged sentences

Accounts receivable 1,078 1,384

License receivable from Genevant ( 178,741 ) —

Receivable from Genevant license ( 179,373 ) —

Prepaid expenses and other assets 20 ( 640 )

5 unchanged sentences

Purchase of investments in marketable securities ( 37,462 ) ( 63,214 )

Proceeds from sale of property and equipment — 9

Disposition of investments in marketable securities 38,000 90,165

17 unchanged sentences

The Company is currently developing imdusiran (AB-729), its proprietary, GalNAc-conjugated, subcutaneously-delivered ribonucleic acid interference (RNAi) therapeutic, and AB-101, its proprietary oral PD-L1 inhibitor, for the treatment of chronic hepatitis B (“cHBV”).

The Company continues to protect and defend its intellectual property, which is the subject of its ongoing lawsuit against Pfizer Inc.

and BioNTech SE (collectively, Pfizer/BioNTech) for their use of the Company’s patented lipid nanoparticle (LNP) technology in their COVID-19 messenger ribonucleic acid interference (mRNA)-LNP vaccines.

The Company continues to protect and defend its intellectual property, which is the subject of its ongoing lawsuits against Pfizer Inc., BioNTech SE, and certain of their affiliates (collectively, “Pfizer/BioNTech”) for their use of the Company’s patented lipid nanoparticle (“LNP”) technology in their COVID-19 messenger ribonucleic acid interference (mRNA)-LNP vaccines and any other products that would infringe the asserted patents.

The court issued a claim construction ruling in September 2025, which construed the disputed claim terms in a manner the Company generally considers to be favorable.

The parties are awaiting further scheduling in the litigation.

In July 2026, the Company, along with its exclusive licensee Genevant Sciences GmbH, filed three international lawsuits seeking to enforce patents protecting the Company’s LNP technology against Pfizer/BioNTech.

On March 3, 2026, the Company, along with Genevant Sciences GmbH and, solely for specified purposes, its parent company Genevant Sciences Ltd.

(collectively, Genevant), entered into a settlement agreement (the Moderna Settlement Agreement) with Moderna Inc.

(collectively, “Genevant,” a related party), entered into a settlement agreement (the “Moderna Settlement Agreement”) with Moderna, Inc.

and ModernaTX, Inc.

(together, “Moderna”) to resolve all patent infringement litigation and patent revocation proceedings involving Moderna and its affiliates pending in the United States and internationally (the “Moderna LNP Litigation”).

Under the terms of the Moderna Settlement Agreement, Moderna will make an aggregate $ 950.0 million noncontingent lump sum payment (the Noncontingent Settlement Payment) to the Company and Genevant on or before July 8, 2026.

Under the terms of the Moderna Settlement Agreement, Moderna made an aggregate $ 950.0 million noncontingent lump sum payment (the “Noncontingent Settlement Payment”) to the Company and Genevant on July 8, 2026.

The Company received $ 178.4 million on July 8, 2026 as its share of the Noncontingent Settlement Payment, which included reimbursement of the Company’s litigation costs.

In addition, Moderna is obligated to pay the Company and Genevant an additional aggregate contingent lump sum payment of $ 1.3 billion (the “Contingent Settlement Payment”) upon a ruling that is favorable to the Company and Genevant in a limited appeal related to 28 U.S.C.

§1498 (§1498) that Moderna filed, as allowed under the Moderna Settlement Agreement (the Moderna §1498 Appeal).

Under the Company’s license with Genevant, it is entitled to receive, after deduction of litigation costs, 20 % of the Noncontingent Settlement Payment.

The Company currently expects to receive an estimated $ 178.7 million of the Noncontingent Settlement Payment, which includes reimbursement of the Company’s litigation costs.

In addition, as of March 31, 2026, the Company owned approximately 16 % of the outstanding common equity of Genevant.

At March 31, 2026, the Company had an aggregate of $ 95.2 million in cash, cash equivalents and investments in marketable securities.

The Company had no outstanding debt as of March 31, 2026.

§1498 that Moderna filed, as allowed under the Moderna Settlement Agreement.

The Company owned approximately 16 % of the outstanding common equity of Genevant as of June 30, 2026, and the Company anticipates the payment of a material dividend from Genevant in the third quarter of calendar year 2026.

At June 30, 2026, the Company had an aggregate of $ 92.6 million in cash, cash equivalents and investments in marketable securities and no outstanding debt.

The Company received $ 178.4 million as its share of the Noncontingent Settlement Payment on July 8, 2026.

The Company believes it has sufficient cash resources to fund its operations for at least the next 12 months.

6 unchanged sentences

These statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2025 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

These unaudited condensed consolidated financial statements include the accounts of Arbutus Biopharma Corporation and its one wholly-owned subsidiary, Arbutus Biopharma, Inc., and reflect, in the opinion of management, all adjustments and reclassifications necessary to fairly present the Company’s financial position as of March 31, 2026 and December 31, 2025, the Company’s results of operations for the three months ended March 31, 2026 and 2025, and the Company’s cash flows for the three months ended March 31, 2026 and 2025.

These unaudited condensed consolidated financial statements include the accounts of Arbutus Biopharma Corporation and its one wholly-owned subsidiary, Arbutus Biopharma, Inc., and reflect, in the opinion of management, all adjustments and reclassifications necessary to fairly present the Company’s financial position as of June 30, 2026 and December 31, 2025, the Company’s results of operations for the three and six months ended June 30, 2026 and 2025, and the Company’s cash flows for the six months ended June 30, 2026 and 2025.

Such adjustments are of a normal recurring nature.

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results for the full year.

The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results for the full year.

These unaudited condensed consolidated financial statements follow the same significant accounting policies as those described in the notes to the audited consolidated financial statements of the Company for the year ended December 31, 2025, except as described below under the section entitled “Recent Accounting Pronouncements.”

3 unchanged sentences

Diluted net income (loss) per share is calculated using the treasury stock method and reflects the effect of all potentially dilutive securities (outstanding stock options and restricted stock units).

The number of weighted average shares used in the calculation of net income per share for the three months ended March 31, 2026 was as follows:

Three Months Ended March 31, 2026

The number of weighted average shares used in the calculation of net income per share for the three months ended June 30, 2025 and the six months ended June 30, 2026 were as follows:

Three Months Ended June 30, 2025 Six Months Ended June 30, 2026

Weighted average shares:

2 unchanged sentences

Diluted shares 192,399,733 196,847,687

Diluted net loss per share does not differ from basic net loss per share for the three months ended March 31, 2025 since the effect of including potential common shares would be anti-dilutive as the Company was in a net loss position.

Diluted net loss per share does not differ from basic net loss per share for the three months ended June 30, 2026 or the six months ended June 30, 2025 since the effect of including potential common shares would be anti-dilutive as the Company was in a net loss position.

Total antidilutive securities that were excluded from the computation of diluted weighted-average shares outstanding were as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Outstanding stock options and restricted stock units 9,137,410 14,045,207 11,285,502 15,417,620

7 unchanged sentences

(i) identify contract(s) with a customer;

(ii) identify the performance

obligations in the contract;

(ii) identify the performance obligations in the contract;

(iii) determine the transaction price;

30 unchanged sentences

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly.

If the asset or liability has a contractual term, the input must be observable for

substantially the full term.

If the asset or liability has a contractual term, the input must be observable for substantially the full term.

An example includes quoted market prices for similar assets or liabilities in active markets.

4 unchanged sentences

To determine the fair value of the contingent consideration (Note 8), the Company uses a probability weighted assessment of the likelihood the milestones would be met and the estimated timing of such payments, and then the potential contingent payments are discounted to their present value using a probability adjusted discount rate that reflects the early stage nature of the development program, the time to complete the program development, and overall biotech indices.

The Company determined the fair value of the contingent consideration was $ 8.6 million as of March 31, 2026 and the increase of $ 0.2 million from December 31, 2025 has been recorded as a component of total operating expenses in the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2026.

The Company determined the fair value of the contingent consideration was $ 8.8 million as of June 30, 2026, and the increase of $ 0.4 million from December 31, 2025 has been recorded as a component of total operating expenses in the condensed consolidated statements of operations and comprehensive income (loss) for the six months ended June 30, 2026.

The assumptions used in the discounted cash flow model are level 3 inputs as defined above.

There were no changes in the assumptions as of March 31, 2026 compared to December 31, 2025.

There were no changes in the assumptions as of June 30, 2026 compared to December 31, 2025.

The Company assessed the sensitivity of the fair value measurement to changes in these unobservable inputs, and determined that changes within a reasonable range would not result in a materially different assessment of fair value.

1 unchanged sentence

Level 1 Level 2 Level 3 Total

As of March 31, 2026 (in thousands)

As of June 30, 2026 (in thousands)

Cash and cash equivalents $ 19,171 $ — $ — $ 19,171

13 unchanged sentences

(in thousands)

Three Months Ended March 31, 2026 $ 8,395 $ 209 $ 8,604

Three Months Ended March 31, 2025 $ 10,225 $ 299 $ 10,524

Six Months Ended June 30, 2026 $ 8,395 $ 422 $ 8,817

Six Months Ended June 30, 2025 $ 10,225 $ 559 $ 10,784

See Note 4 for additional information regarding the fair value of the Company’s investments in marketable securities.

3 unchanged sentences

Gross Unrealized Loss (1)

As of March 31, 2026 (in thousands)

As of June 30, 2026 (in thousands)

Cash equivalents

Money market funds $ 6,914 $ — $ — $ 6,914

US treasury bills $ 1,987 $ — $ — $ 1,987

Total $ 8,901 $ — $ — $ 8,901

15 unchanged sentences

(1) Gross unrealized gain (loss) is pre-tax and is reported in accumulated other comprehensive income (loss).

The contractual term to maturity of the $ 71.5 million of short-term marketable securities held by the Company as of March 31, 2026 is less than one year.

As of March 31, 2026, the Company held no long-term marketable securities.

The contractual term to maturity of the $ 73.5 million of short-term marketable securities held by the Company as of June 30, 2026 is less than one year.

As of June 30, 2026, the Company held no long-term marketable securities.

As of December 31, 2025, the Company’s $ 73.5 million of short-term marketable securities had contractual maturities of less than one year, while the Company held no long-term marketable securities.

At March 31, 2026, the Company had 22 available-for-sale investment debt securities in an unrealized loss position without an allowance for credit losses.

At June 30, 2026, the Company had 32 available-for-sale investment debt securities in an unrealized loss position without an allowance for credit losses.

As of December 31, 2025, there were no available-for-sale investment debt securities in an unrealized loss position without an allowance for credit losses.

3 unchanged sentences

The fair value is expected to recover as the securities approach maturity.

Accrued interest receivable on investments in marketable securities of $0.4 million and $ 0.3 million at March 31, 2026 and December 31, 2025, respectively, is included in prepaid expenses and other current assets.

The Company had no realized gains during either of the three months ended March 31, 2026 or 2025.

Accrued interest receivable on investments in marketable securities of $ 0.4 million and $ 0.3 million at June 30, 2026 and December 31, 2025, respectively, is included in prepaid expenses and other current assets.

The Company had no realized gains during either of the three and six months ended June 30, 2026 or 2025.

See Note 3 for additional information regarding the fair value of the Company’s investments in marketable securities.

9 unchanged sentences

Accordingly, an estimate of the fair value of the securities is based on the original cost less previously recognized equity method losses, less impairments, plus or minus changes resulting from observable price changes in orderly transactions for identical or a similar Genevant securities.

As of March 31, 2026, the carrying value of the Company’s investment in Genevant was zero and the Company owned approximately 16 % of the outstanding common equity of Genevant.

As of June 30, 2026, the carrying value of the Company’s investment in Genevant was zero and the Company owned approximately 16 % of the outstanding common equity of Genevant.

Accounts payable and accrued liabilities

Accounts payable and accrued liabilities were comprised of the following:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in thousands)

7 unchanged sentences

The decision was made to exit the Company’s corporate headquarters in Warminster, Pennsylvania, implement workforce reductions and discontinue in-house scientific research.

The Company recognized $12.9 million of restructuring charges in 2025, of which there was an aggregate of $ 0.2 million in medical benefit costs and lease expenses accrued as of March 31, 2026.

The Company recognized $ 12.9 million of restructuring charges in 2025, of which there was an aggregate of $ 0.2 million in medical benefit costs and lease expenses accrued as of June 30, 2026.

Sale of future royalties

7 unchanged sentences

The discount, as well as $ 1.5 million of transaction costs, will be amortized as interest expense based on the projected balance of the liability as of the beginning of each period.

As of March 31, 2026, the Company estimated an effective annual interest rate of approximately 2.0 %.

As of June 30, 2026, the Company estimated an effective annual interest rate of approximately 1.5 %.

Over the course of the Agreement, the actual interest rate will be affected by the amount and timing of royalty revenue recognized and changes in the timing of forecasted royalty revenue.

2 unchanged sentences

As royalties are remitted to OMERS from Alnylam, the balance of the recognized liability is effectively repaid over the life of the Agreement.

From the inception of the royalty sale through March 31, 2026, an aggregate of $ 26.7 million of royalties have been earned by OMERS.

From the inception of the royalty sale through June 30, 2026, an aggregate of $ 26.9 million of royalties have been earned by OMERS.

There are a number of factors that could materially affect the amount and timing of royalty payments from Alnylam, none of which are within the Company’s control.

During the three months ended March 31, 2026, the Company recognized non-cash royalty revenue of $ 0.2 million and related non-cash interest expense of less than $ 0.1 million.

During the three months ended March 31, 2025, the Company recognized non-cash royalty revenue of $ 0.4 million and related non-cash interest expense of less than $ 0.1 million.

The table below shows the activity related to the net liability for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

During the six months ended June 30, 2026, the Company recognized non-cash royalty revenue of $ 0.4 million and related non-cash interest expense of less than $ 0.1 million.

During the six months ended June 30, 2025, the Company recognized non-cash royalty revenue of $ 1.0 million and related non-cash interest expense of less than $ 0.1 million.

The table below shows the activity related to the net liability for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30,

(in thousands)

13 unchanged sentences

The contingent consideration is a financial liability and is measured at its fair value at each reporting period, with any changes in fair value from the previous reporting period recorded in the condensed consolidated statements of operations and comprehensive income (loss) (see Note 3).

The fair value of the contingent consideration was $ 8.6 million as of March 31, 2026.

The fair value of the contingent consideration was $ 8.8 million as of June 30, 2026.

Collaborations, contracts and licensing agreements

11 unchanged sentences

In June 2025, the Company and Qilu mutually agreed to conclude the strategic partnership and terminated the Qilu License Agreement and related agreements, and the Company now once again holds global rights for imdusiran.

As no obligations remain under the Qilu License Agreement, the Company recognized all previously deferred revenue in the second quarter of 2025.

As no obligations remained under the Qilu License Agreement, the Company recognized the remainder of the $ 9.6 million of deferred revenue during the three months ended June 30, 2025.

Until the conclusion of the strategic partnership with Qilu, the Company reevaluated the transaction price and the total estimated labor hours expected to be incurred to satisfy the performance obligations and adjusted the deferred revenue at the end of each reporting period, which resulted in changes to the amount of collaboration revenue recognized and deferred revenue.

During the three months ended March 31, 2025, the Company recognized $ 0.8 million of revenue based on labor hours expended by the Company on its Manufacturing Obligations and expense of less than $ 0.1 million for amortization of costs associated with obtaining the Qilu License Agreement.

During the six months ended June 30, 2025, the Company recognized $ 0.5 million of revenue based on labor hours expended by the Company on its Manufacturing Obligations.

During the three months ended June 30, 2025, the Company

recognized the $ 0.1 million remaining amortization of costs associated with obtaining the Qilu License Agreement, for a total amortization expense for the six months ended June 30, 2025 of $ 0.2 million.

Barinthus Biotherapeutics plc

3 unchanged sentences

The Company and Barinthus retained full rights to their respective product candidates and split all costs associated with the clinical trial.

The Company received $ 0.3 million of refunds and incurred $ 0.3 million of costs related to the collaboration, net of Barinthus’s 50 % share, during the three months ended March 31, 2026 and 2025, respectively, and reflected those amounts in research and development in the condensed consolidated statements of operations and comprehensive income (loss).

The Company incurred $ 0.1 million of costs and received $ 0.2 million of refunds related to the collaboration, net of Barinthus’s 50 % share, during the three and six months ended June 30, 2026, respectively, and reflected those amounts in research and development in the condensed consolidated statements of operations and comprehensive income (loss).

During the three and six months ended June 30, 2025, the Company incurred expenses of $ 0.3 million and $ 0.6 million, respectively.

Royalty Entitlements

9 unchanged sentences

If this royalty entitlement reverts to the Company, it has the potential to provide an active royalty stream or to be otherwise monetized again in full or in part.

From the inception of the royalty sale through March 31, 2026, an aggregate of $ 26.7 million of royalties have been earned by OMERS.

From the inception of the royalty sale through June 30, 2026, an aggregate of $ 26.9 million of royalties have been earned by OMERS.

The Company also is receiving a second royalty interest of 0.75 % to 1.125 % on global net sales of ONPATTRO, with 0.75 % applying to sales greater than $ 500 million, originating from a settlement agreement and subsequent license agreement with Acuitas.

1 unchanged sentence

Licensing Agreements

As discussed in Note 1, the Company, along with Genevant (a related party), entered into the Moderna Settlement Agreement with Moderna in the first quarter of 2026, whereby Moderna will make an aggregate $ 950.0 million Noncontingent Settlement Payment to the Company and Genevant on or before July 8, 2026.

Under the Company’s license with Genevant, the Company is entitled to receive, after deduction of litigation costs, 20 % of the Noncontingent Settlement Payment.

During the three months ended March 31, 2026, the Company recognized revenue of $ 178.7 million based on its estimate of its portion of the Noncontingent Settlement Payment, which includes reimbursement of the Company’s litigation costs.

As of March 31, 2026, the Company recorded a corresponding receivable of $ 178.7 million related to the estimate of its portion of the Noncontingent Settlement Payment, which is included in current assets.

The Company had no income tax expense during the three months ended March 31, 2026, as it utilized available net operating loss carryforwards to offset the taxable income generated from recognizing the revenue.

No amounts were recognized related to the Contingent Settlement Payment as of March 31, 2026.

As discussed in Note 1, the Company, along with Genevant (a related party), entered into the Moderna Settlement Agreement with Moderna in the first quarter of 2026, whereby Moderna made an aggregate $ 950.0 million Noncontingent Settlement Payment to the Company and Genevant on July 8, 2026.

The Company received $ 178.4 million on July 8, 2026 as its share of the Noncontingent Settlement Payment, which included reimbursement of the Company’s litigation costs.

In March 2025, the Company entered into an agreement (the “RSV Agreement”) with Genevant that provided that the Company would be entitled to any award of damages in, or proceeds from the settlement of, certain patent litigation against Moderna that is specifically allocated to infringing acts related to Moderna’s vaccine for respiratory syncytial virus (“mRESVIA”) and that, in the event there is no such specific allocation to mRESVIA, the Company and Genevant would discuss an appropriate allocation in good faith.

The Moderna Settlement Agreement did not specifically allocate any settlement proceeds to infringing acts related to mRESVIA.

On July 15, 2026, the Company and Genevant entered into a termination agreement (the “RSV Termination Agreement”) to terminate the RSV Agreement.

On July 21, 2026, Genevant paid the Company a termination fee of $ 1.0 million pursuant to the RSV Termination Agreement.

During the six months ended June 30, 2026, the Company recognized revenue of $ 178.4 million for its portion of the Noncontingent Settlement Payment, which included reimbursement of the Company’s litigation costs, as well as a corresponding receivable, which was included in current assets.

The Company had no income tax expense during the three and six months ended June 30, 2026, as it utilized available net operating loss carryforwards to offset the taxable income generated from recognizing the revenue.

As of June 30, 2026, no amounts have been recognized related to the Contingent Settlement Payment.

Revenues are summarized in the following table:

Three Months Ended March 31,

(in thousands)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in thousands) (in thousands)

Revenue from collaborations and licenses

Acuitas Therapeutics, Inc.

$ 202 $ 591 $ 406 $ 1,095

Qilu Pharmaceutical Co., Ltd.

— 9,622 — 10,434

License revenue from Genevant 632 — 179,373 —

1 unchanged sentence

Alnylam Pharmaceuticals, Inc.

180 526 361 974

Total revenue $ 1,014 $ 10,739 $ 180,140 $ 12,503

3 unchanged sentences

Open Market Sale Agreement

Effective March 26, 2025, the Company terminated its Open Market Sale Agreement with Jefferies LLC (Jefferies) dated December 20, 2018, as amended (the Sale Agreement), under which the Company could issue and sell common shares, from time to time.

The Company did not issue any common shares pursuant to the Sale Agreement during the three months ended March 31, 2026 or 2025.

Effective March 26, 2025, the Company terminated its Open Market Sale Agreement with Jefferies LLC dated December 20, 2018, as amended (the Sale Agreement), under which the Company could issue and sell common shares, from time to time.

The Company did not issue any common shares pursuant to the Sale Agreement during the six months ended June 30, 2026 or 2025.

Stock-based compensation

The table below summarizes information about the Company’s stock-based compensation for the three months ended March 31, 2026 and 2025 and the expense recognized in the condensed consolidated statements of operations:

Three Months Ended March 31,

The table below summarizes information about the Company’s stock-based compensation for the three and six months ended June 30, 2026 and 2025 and the expense recognized in the condensed consolidated statements of operations:

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Stock options

4 unchanged sentences

Grant date fair value $ — $ — $ 4.39 $ 3.29

Three Months Ended March 31,

(in thousands)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in thousands) (in thousands)

Stock compensation expense

8 unchanged sentences

The chief operating decision maker uses net income (loss) to monitor budget versus actual results and to evaluate the overall cash burn of the business.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in thousands)

6 unchanged sentences

Other segment expense (1)

234 267 471 590

Interest income 842 1,042 1,657 2,239

6 unchanged sentences

The decision was made to exit the Company’s corporate headquarters in Warminster, Pennsylvania, implement workforce reductions and discontinue in-house scientific research.

The restructuring had resulted in a total workforce after reductions of 18 employees as of March 31, 2026.

As of March 31, 2026, there was less than $ 0.1 million of accrued restructuring costs for medical benefits and a $ 0.2 million accrual of lease-related operating expenses included in accounts payable and accrued liabilities.

The restructuring has resulted in a total workforce after reductions of 16 employees as of June 30, 2026.

As of June 30, 2026, there was a $ 0.2 million accrual for medical benefits and lease-related operating expenses included in accounts payable and accrued liabilities.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements