AN2 Therapeutics, Inc. 10-K

Item 7A . Quantitative and Qualitative Disclosures About Market Risk. Interest Rate Sensitivity We are exposed to market risk related to changes in interest rates. We had cash, cash equivalents and investments of $60.0 million as of December 31, 2025, which consisted primarily of money market funds and marketable securities, largely composed of investment grade, short and long-term fixed income securities and government securities. The primary objective of our investment activities is to preserve capital to fund our operations. We also seek to maximize income from our investments without assuming significant risk. To achieve our objectives, we maintain a portfolio of cash, cash equivalents, and investments in accordance with our Board-approved investment policy. Our investments are subject to interest rate risk and could fall in value if market interest rates increase. A hypothetical 10% relative change in interest rates during any of the periods presented would not have had a material impact on our financial statements. We do not believe that inflation, interest rate changes or exchange rate fluctuations had a significant impact on our results of operations for any periods presented herein. 80 Foreign Currency Risk A small portion of our expenses are denominated in foreign currencies. Future fluctuations in the value of the U.S. Dollar may affect the price we pay for services performed outside the U.S. We were not exposed to material foreign currency risk during the year ended December 31, 2025. Effects of Inflation Inflation generally affects us by increasing our cost of labor and operating costs including clinical trial, non-clinical study and manufacturing costs. We believe that inflation has not had a material effect on our financial statements included elsewhere in this Annual Report on Form 10-K. Item 8 . Financial Statements and Supplementary Data. The financial statements and related financial statement schedules required to be filed are listed in Part IV, Item 15 of this Annual Report on Form 10-K. Item 9 . Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. None.