ArriVent BioPharma, Inc. 10-Q

Item 1. Financial Statements ARRIVENT BIOPHARMA, INC. CONDENSED BALANCE SHEETS (in thousands, except share and per share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2025 2024 Assets ​ ​ Current assets: ​ ​ Cash and cash equivalents ​ $ 112,672 ​ $ 74,293 ​ Short-term investments ​ ​ 187,594 ​ ​ 144,570 ​ Prepaid expenses and other current assets ​ 20,952 ​ 8,116 ​ Total current assets ​ 321,218 ​ 226,979 ​ Long-term investments ​ ​ 5,108 ​ ​ 47,683 ​ Right of use assets – operating leases ​ 49 ​ 154 ​ Other assets ​ 180 ​ 126 ​ Total assets ​ $ 326,555 ​ $ 274,942 ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders’ Equity ​ ​ ​ Current liabilities: ​ ​ ​ Accounts payable ​ $ 5,933 ​ $ 3,782 ​ Accrued expenses ​ 15,569 ​ 13,330 ​ Operating lease liabilities ​ 56 ​ 162 ​ Total current liabilities ​ 21,558 ​ 17,274 ​ Operating lease liabilities, net of current amount ​ — ​ 14 ​ Total liabilities ​ 21,558 ​ 17,288 ​ ​ ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies (Note 8) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders’ equity: ​ ​ ​ ​ ​ ​ ​ Preferred stock $ 0.0001 par value, 10,000,000 shares authorized; no shares issued and outstanding ​ — ​ — ​ Common stock $ 0.0001 par value, 200,000,000 shares authorized; 40,852,312 and 33,706,765 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively ​ ​ 4 ​ ​ 3 ​ Additional paid-in capital ​ 673,884 ​ 496,195 ​ Accumulated deficit ​ ( 369,097 ) ​ ( 238,333 ) ​ Accumulated other comprehensive income (loss) ​ ​ 206 ​ ​ ( 211 ) ​ Total stockholders’ equity ​ 304,997 ​ 257,654 ​ Total liabilities and stockholders’ equity ​ $ 326,555 ​ $ 274,942 ​ ​ The accompanying notes are an integral part of the unaudited interim financial statements. ​ 5 Table of Contents ​ ARRIVENT BIOPHARMA, INC. CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2025 2024 2025 2024 ​ Operating expenses: ​ ​ ​ ​ ​ Research and development $ 32,167 $ 20,088 $ 121,176 $ 58,841 ​ General and administrative ​ 6,149 ​ 4,144 ​ 17,535 ​ 11,762 ​ Total operating expenses ​ 38,316 ​ 24,232 ​ 138,711 ​ 70,603 ​ Operating loss ​ ( 38,316 ) ​ ( 24,232 ) ​ ( 138,711 ) ​ ( 70,603 ) ​ Interest and investment income ​ ​ 3,338 ​ 3,668 ​ 7,947 ​ 10,748 ​ Net loss ​ ​ ( 34,978 ) ​ ​ ( 20,564 ) ​ ​ ( 130,764 ) ​ ​ ( 59,855 ) ​ Unrealized gain on marketable securities ​ ​ 226 ​ ​ — ​ ​ 419 ​ ​ — ​ Total other comprehensive gain ​ ​ 226 ​ ​ — ​ ​ 419 ​ ​ — ​ Total comprehensive loss ​ $ ( 34,752 ) ​ $ ( 20,564 ) ​ $ ( 130,345 ) ​ $ ( 59,855 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Share information: ​ ​ ​ ​ ​ Net loss per share attributable to common stockholders, basic and diluted ​ $ ( 0.83 ) ​ $ ( 0.61 ) ​ $ ( 3.54 ) ​ $ ( 1.95 ) ​ Weighted-average shares of common stock outstanding, basic and diluted ​ 41,912,905 ​ 33,581,810 ​ 36,968,978 ​ 30,720,711 ​ ​ The accompanying notes are an integral part of the unaudited interim financial statements. ​ ​ ​ 6 Table of Contents ARRIVENT BIOPHARMA, INC. CONDENSED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (in thousands, except share and per share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ Series A ​ Series B ​ ​ ​ ​ ​ ​ ​ Additional ​ Other ​ ​ ​ ​ ​ ​ ​ ​ convertible preferred stock ​ convertible preferred stock ​ ​ Common stock ​ paid-in ​ Comprehensive ​ Accumulated ​ ​ ​ Shares Amount Shares Amount Shares Amount capital (Loss) deficit Total Balance January 1, 2025 — ​ $ — — ​ $ — ​ ​ 33,706,765 ​ $ 3 ​ $ 496,195 ​ $ ( 211 ) ​ $ ( 238,333 ) ​ $ 257,654 Issuance of common stock, net of issuance costs of $ 858 — ​ — — ​ — ​ 264,458 ​ 1 ​ 6,516 ​ ​ — ​ — ​ 6,517 Exercise of stock options — ​ — — ​ — ​ 69,773 ​ — ​ 293 ​ ​ — ​ — ​ 293 Stock-based compensation expense — ​ — — ​ — ​ — ​ — ​ 2,271 ​ ​ — ​ — ​ 2,271 Unrealized gain on marketable securities ​ — ​ — — ​ — ​ — ​ — ​ — ​ ​ 194 ​ — ​ 194 Net loss — ​ — — ​ — ​ — ​ — ​ — ​ ​ — ​ ( 64,387 ) ​ ( 64,387 ) Balance March 31, 2025 — ​ ​ — — ​ ​ — ​ 34,040,996 ​ ​ 4 ​ ​ 505,275 ​ ​ ( 17 ) ​ ​ ( 302,720 ) ​ ​ 202,542 Issuance of common stock, net of issuance costs of $ 2,395 ​ — ​ ​ — ​ — ​ ​ — ​ ​ 3,428,766 ​ ​ — ​ ​ 75,341 ​ ​ — ​ ​ — ​ ​ 75,341 Exercise of stock options — ​ — — ​ — ​ 20,677 ​ — ​ 76 ​ ​ — ​ — ​ 76 Stock-based compensation expense — ​ — — ​ — ​ — ​ — ​ 3,311 ​ ​ ​ ​ — ​ 3,311 Unrealized loss on marketable securities ​ — ​ — — ​ — ​ — ​ — ​ — ​ ​ ( 1 ) ​ — ​ ( 1 ) Net loss — ​ — — ​ — ​ — ​ — ​ — ​ ​ — ​ ( 31,399 ) ​ ( 31,399 ) Balance, June 30, 2025 — ​ ​ — — ​ ​ — ​ 37,490,439 ​ ​ 4 ​ ​ 584,003 ​ ​ ( 18 ) ​ ​ ( 334,119 ) ​ ​ 249,870 Issuance of common stock, net of issuance costs of $ 5,825 — ​ — — ​ — ​ 3,339,581 ​ — ​ 86,091 ​ ​ ​ ​ — ​ 86,091 Exercise of stock options — ​ — — ​ — ​ 22,292 ​ — ​ 74 ​ ​ ​ ​ — ​ 74 Stock-based compensation expense — ​ — — ​ — ​ — ​ — ​ 3,716 ​ ​ ​ ​ — ​ 3,716 Unrealized gain on marketable securities ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 224 ​ ​ — ​ ​ 224 Net loss — ​ — — ​ — ​ — ​ — ​ — ​ ​ ​ ​ ( 34,978 ) ​ ( 34,978 ) Balance, September 30, 2025 — ​ $ — — ​ $ — ​ 40,852,312 ​ $ 4 ​ $ 673,884 ​ $ 206 ​ $ ( 369,097 ) ​ $ 304,997 ​ The accompanying notes are an integral part of the unaudited interim financial statements. ​ 7 Table of Contents ARRIVENT BIOPHARMA, INC. CONDENSED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (in thousands, except share and per share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series A ​ Series B ​ ​ ​ ​ ​ ​ ​ Additional ​ Accumulated ​ ​ ​ ​ ​ ​ ​ convertible preferred stock ​ convertible preferred stock ​ ​ Common stock ​ paid-in ​ Other Comprehensive ​ Accumulated ​ ​ ​ Shares Amount Shares Amount Shares Amount capital ​ (Loss) deficit Total Balance January 1, 2024 150,000,000 ​ $ 149,865 147,619,034 ​ $ 154,625 ​ 2,745,480 ​ $ — ​ $ 4,652 ​ $ — ​ $ ( 157,845 ) ​ $ ( 153,193 ) Issuance of common stock in initial public offering, net of issuance costs of $ 18,032 — ​ — — ​ — ​ 11,180,555 ​ 1 ​ 183,216 ​ ​ — ​ — ​ 183,217 Conversion of convertible preferred stock into common stock ​ ( 150,000,000 ) ​ ( 149,865 ) ( 147,619,034 ) ​ ( 154,625 ) ​ 19,567,306 ​ 2 ​ 304,488 ​ ​ — ​ — ​ 304,490 Exercise of stock options — ​ — — ​ — ​ 409 ​ — ​ 1 ​ ​ — ​ — ​ 1 Stock-based compensation expense — ​ — — ​ — ​ — ​ — ​ 625 ​ ​ — ​ — ​ 625 Net loss — ​ — — ​ — ​ — ​ — ​ — ​ ​ — ​ ( 17,417 ) ​ ( 17,417 ) Balance March 31, 2024 — ​ ​ — — ​ ​ — ​ 33,493,750 ​ ​ 3 ​ ​ 492,982 ​ ​ — ​ ​ ( 175,262 ) ​ ​ 317,723 Exercise of stock options — ​ — — ​ — ​ 15,340 ​ — ​ 44 ​ ​ — ​ — ​ 44 Stock-based compensation expense — ​ — — ​ — ​ — ​ — ​ 766 ​ ​ — ​ — ​ 766 Net loss — ​ — — ​ — ​ — ​ — ​ — ​ ​ — ​ ( 21,874 ) ​ ( 21,874 ) Balance, June 30, 2024 — ​ ​ — — ​ ​ — ​ 33,509,090 ​ ​ 3 ​ ​ 493,792 ​ ​ — ​ ​ ( 197,136 ) ​ ​ 296,659 Exercise of stock options — ​ — — ​ — ​ 185,265 ​ — ​ 532 ​ ​ — ​ — ​ 532 Stock-based compensation expense — ​ — — ​ — ​ — ​ — ​ 866 ​ ​ — ​ — ​ 866 Net loss — ​ — — ​ — ​ — ​ — ​ — ​ ​ — ​ ( 20,564 ) ​ ( 20,564 ) Balance, September 30, 2024 — ​ $ — — ​ $ — ​ 33,694,355 ​ $ 3 ​ $ 495,190 ​ $ — ​ $ ( 217,700 ) ​ $ 277,493 ​ The accompanying notes are an integral part of the unaudited interim financial statements. ​ ​ ​ 8 Table of Contents ARRIVENT BIOPHARMA, INC. CONDENSED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ September 30, ​ 2025 2024 Cash flows from operating activities: ​ ​ Net loss ​ $ ( 130,764 ) ​ $ ( 59,855 ) Adjustment to reconcile net loss to net cash used in operating activities: ​ ​ ​ Stock-based compensation expense ​ 9,298 ​ 2,256 Changes in operating assets and liabilities: ​ ​ Prepaid expenses and other current assets ​ ( 12,836 ) ​ 36 Other assets ​ — ​ ( 19 ) Accounts payable ​ ​ 2,149 ​ ​ 114 Accrued expenses ​ 2,239 ​ 3,406 Operating lease liabilities ​ ( 16 ) ​ 2 Net cash used in operating activities ​ ( 129,930 ) ​ ( 54,060 ) Cash flows from investing activities: ​ ​ Purchase of short-term and long-term investments ​ ( 121,754 ) ​ — Maturity of short-term and long-term investments ​ ​ 121,725 ​ ​ — Net cash used in investing activities ​ ( 29 ) ​ — Cash flows from financing activities: ​ ​ Proceeds from issuance of common stock, net of issuance costs ​ 167,973 ​ 185,950 Proceeds from the exercise of stock options ​ 418 ​ 576 Payment of deferred financing costs ​ ( 53 ) ​ — Net cash provided by financing activities ​ 168,338 ​ 186,526 ​ ​ ​ ​ ​ ​ ​ Net increase in cash and cash equivalents ​ 38,379 ​ 132,466 Cash and cash equivalents at beginning of the year ​ 74,293 ​ 150,389 Cash and cash equivalents at end of the year ​ $ 112,672 ​ $ 282,855 ​ ​ ​ ​ ​ ​ ​ Supplemental disclosures of non-cash financing and investing activities ​ ​ Deferred offering costs transferred to additional paid-in-capital ​ $ 300 ​ $ 2,733 ​ ​ ​ ​ ​ ​ ​ ​ The accompanying notes are an integral part of the unaudited interim financial statements. ​ ​ 9 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS (1) Background ArriVent BioPharma, Inc., a Delaware corporation (the “Company”), founded on April 14, 2021, is a clinical-stage biopharmaceutical company focused on identifying, licensing and globalizing top biopharma innovations from around the world to deliver important medicines to patients. In June 2021, the Company entered into a license agreement with Shanghai Allist Pharmaceuticals Co. Ltd. (“Allist”) which granted the Company an exclusive license under certain intellectual property owned or controlled by Allist to develop, manufacture and commercialize any product containing firmonertinib or any of its derivatives as an active ingredient, for all uses, in all countries and territories other than greater China, which includes mainland China, Hong Kong, Macau and Taiwan (“Greater China”) (See Note 8). The Company’s lead development candidate, firmonertinib, is a third-generation tyrosine kinase inhibitor currently being evaluated in multiple clinical trials across a range of epidermal growth factor receptor mutations in non-small cell lung cancer, many for which there are limited treatment options. ​ On January 30, 2024, the Company completed the closing of its initial public offering of 9,722,222 shares of common stock at a price of $ 18.00 per share. Additionally, the underwriters exercised their option to purchase an additional 1,458,333 shares of common stock at a price of $ 18.00 per share. The shares of common stock began trading on The Nasdaq Global Market on January 26, 2024, under the symbol “AVBP”. The Company received net proceeds of $ 183.2 million, after deducting underwriting discounts and commissions and other offering expenses. In addition, as a result of the closing of the Company’s initial public offering, the Company’s Series A and Series B convertible preferred stock converted into 19,567,306 shares of common stock in January 2024. ​ ​ (2) Development Stage Risks and Liquidity The Company has incurred losses since inception and has an accumulated deficit of $ 369.1 million as of September 30, 2025. The Company anticipates incurring additional losses until such time, if ever, that it can generate significant sales from its product candidates currently in development. The Company expects that its research and development and general and administrative expenses will continue to increase and, as a result, that it will need additional capital to fund its future operating and capital requirements. There can be no assurance that the Company will be able to raise sufficient additional capital on acceptable terms, if at all. If such additional financing is not available on satisfactory terms, or is not available in sufficient amounts, or if the Company does not have sufficient authorized shares, the Company may be required to delay, limit, or eliminate the development of business opportunities and its ability to achieve its business objectives, its competitiveness, and its business, financial condition, and results of operations will be materially adversely affected. The Company could also be required to seek funds through arrangements with collaborative partners or otherwise at an earlier stage than otherwise would be desirable and it may be required to relinquish rights to some of its technologies or product candidates or otherwise agree to terms unfavorable to it, any of which may have a material adverse effect on the Company's business, operating results and prospects. The Company believes that the aggregate balance of cash and cash equivalents and marketable securities of $ 305.4 million as of September 30, 2025 are sufficient to sustain planned operations through at least twelve months from the issuance date of these financial statements. The Company is subject to those risks associated with any specialty biotechnology company that has substantial expenditures for research and development. There can be no assurance that the Company’s research and development projects will be successful, that products developed will obtain necessary regulatory approval, or that any approved product will be commercially viable. In addition, the Company operates in an environment of rapid technological change and is largely dependent on the services of its employees and consultants. ​ 10 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS In addition, geopolitical tensions, volatility of capital markets, and other adverse macroeconomic events, including those due to inflationary pressures, rising interest rates, bank instability and the ability of the U.S. government to manage federal debt limits, as well as the potential impact of other health crises on the global financial markets may reduce the Company's ability to access capital, which could negatively affect its liquidity and ability to continue as a going concern. ​ (3) Summary of Significant Accounting Policies The summary of significant accounting policies included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on March 3, 2025 (the “Annual Report”) has not materially changed. (a) Interim Financial Statements The accompanying unaudited interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Any references in these notes to applicable guidance are meant to refer to GAAP as found in Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) promulgated by the Financial Accounting Standards Board (“FASB”). In the opinion of the Company, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2025, and its results of operations for the three and nine months ended September 30, 2025 and 2024, and cash flows for the nine months ended September 30, 2025 and 2024. The condensed balance sheet at December 31, 2024, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. ​ (b) Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from such estimates. Estimates and assumptions are periodically reviewed, and the effects of revisions are reflected in the financial statements in the period they are determined to be necessary. Significant areas that require the Company’s estimates include the fair value of the Company’s common stock prior to the completion of the Company’s initial public offering, and accrued research and development expenses. (c) Fair Value Measurements The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. 11 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The Company believes that the carrying amounts of the Company’s financial instruments, principally cash equivalents and accounts payable, approximate fair value due to the short-term nature of those instruments. (d) Net Loss per Share Basic net loss per share of common stock is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during each period. Pre-funded warrants were included in the denominator as the exercise price is negligible and these warrants are fully vested and exercisable. Diluted net loss per share of common stock includes the effect, if any, from the potential exercise or conversion of securities, such as convertible preferred stock and stock options, which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share since when a net loss exists, potentially dilutive securities are not included in the calculation as their impact is anti-dilutive. The Company’s convertible preferred stock entitled the holder to participate in dividends and earnings of the Company, and, if the Company had recognized net income, it would have used the two-class method to calculate earnings per share. The two-class method was not applicable during periods with a net loss, as the holders of the convertible preferred stock had no obligation to fund losses. The following table sets forth the computation of net loss per share, basic and diluted (in thousands, except share and per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, ​ September 30, ​ ​ 2025 2024 2025 2024 Numerator: ​ ​ ​ ​ Net loss $ ( 34,978 ) $ ( 20,564 ) $ ( 130,764 ) $ ( 59,855 ) Denominator: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average shares of common stock outstanding, basic and diluted ​ 41,912,905 ​ 33,581,810 ​ 36,968,978 ​ 30,720,711 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss per share attributable to common stockholders, basic and diluted ​ $ ( 0.83 ) ​ $ ( 0.61 ) ​ $ ( 3.54 ) ​ $ ( 1.95 ) ​ ​ Stock options outstanding have been excluded from the computation of diluted weighted-average shares of common stock outstanding, as they would be anti-dilutive. Stock options outstanding at September 30, 2025 and 2024 were 4,376,335 and 2,527,417 , respectively. (e) Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses . This standard requires the disclosure of more detailed information about the types of expenses in commonly presented expense captions, such as research and development, and general and administrative expenses. This standard will be effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027 and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact that this standard may have on its year-end financial statements. ​ 12 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS (f) Accounting Pronouncements Becoming Effective in 2025 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which requires enhanced income tax disclosures, including specific categories and disaggregation of information in the effective tax rate reconciliation, disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of ASU 2023-09 are effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently in the process of evaluating the impact of this pronouncement on its related disclosures. (g) Reverse Stock Split On January 23, 2024, the Company filed an amendment to its Certificate of Incorporation and effected a 15.21 -for-1 reverse stock split of its issued and outstanding shares of common stock. All common stock share and per-share amounts presented in the financial statements and related notes have been retroactively adjusted to reflect the reverse stock split. ​ (h) License and Collaboration Agreements ​ The Company analyzes its license and collaborative agreements to assess whether they are within the scope of ASC 808, Collaborative Arrangements (“ASC 808”) to determine whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards that are dependent on the commercial success of such activities. To the extent the arrangement is within the scope of ASC 808, the Company assesses whether aspects of the arrangement are within the scope of other accounting literature. If the Company concludes that some or all aspects of the arrangement represent a transaction with a customer, it accounts for those aspects of the arrangement within the scope of ASC 606, Revenue from Contracts with Customers . None of the license and collaboration agreements discussed in Note 8 represent transactions with customers. If the Company concludes that some or all aspects of the arrangement are within the scope of ASC 808 and do not represent a transaction with a customer, it recognizes costs incurred as a component of the related expense in the period incurred. The arrangements may also require the Company to make payments on achievement of certain milestones, including clinical, regulatory, and development milestones. Clinical, regulatory, and development milestones are recognized as research and development expense only when such milestones are deemed probable of being achieved. ​ (i) Comprehensive Loss ​ Comprehensive loss includes net loss and certain changes in stockholders’ deficit that are excluded from net loss, primarily unrealized gains or losses on the Company’s marketable securities. ​ ​ ​ 13 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS (4) Fair Value Measurements The following table presents information about the Company’s financial assets measured at fair value on a recurring basis and indicates the level of the fair value hierarchy utilized to determine such fair values (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2025 ​ Amortized Cost ​ Gross Unrealized Gains ​ Gross Unrealized Losses ​ Fair Value ​ Level 1 Level 2 Level 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds $ 107,671 ​ $ — ​ $ — ​ $ 107,671 ​ $ 107,671 ​ $ — ​ $ — Corporate securities ​ 82,463 ​ ​ 62 ​ ​ ( 3 ) ​ ​ 82,522 ​ ​ 17,318 ​ ​ 65,204 ​ ​ — Government securities ​ 110,031 ​ ​ 149 ​ ​ ( 1 ) ​ ​ 110,179 ​ ​ — ​ ​ 110,179 ​ ​ — Total assets measured at fair value $ 300,165 ​ $ 211 ​ $ ( 4 ) ​ $ 300,372 ​ $ 124,989 ​ $ 175,383 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ Amortized Cost ​ Gross Unrealized Gains ​ Gross Unrealized Losses ​ Fair Value ​ Level 1 Level 2 Level 3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds $ 49,031 ​ $ — ​ $ — ​ $ 49,031 ​ $ 49,031 ​ $ — ​ $ — Corporate securities ​ 114,577 ​ ​ 10 ​ ​ ( 148 ) ​ ​ 114,439 ​ ​ — ​ ​ 114,439 ​ ​ — Government securities ​ 98,150 ​ ​ 18 ​ ​ ( 91 ) ​ ​ 98,077 ​ ​ — ​ ​ 98,077 ​ ​ — Total assets measured at fair value $ 261,758 ​ $ 28 ​ $ ( 239 ) ​ $ 261,547 ​ $ 49,031 ​ $ 212,516 ​ $ — ​ Cash balances were $ 5.0 million at September 30, 2025 and December 31, 2024, respectively. Money market funds are highly liquid investments. The pricing information on the Company’s money market fund is based on quoted prices in active markets. This approach results in a classification of these securities as Level 1 of the fair value hierarchy. ​ The Company’s investment portfolio includes many fixed income securities that do not always trade on a daily basis. As a result, the pricing services used by the Company applied other available information as applicable through processes such as benchmark yields, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. In addition, model processes were used to assess interest rate impact and develop prepayment scenarios. These models take into consideration relevant credit information, perceived market movements, sector news and economic events. The inputs into these models may include benchmark yields, reported trades, broker-dealer quotes, issuer spreads and other relevant data. ​ As of September 30, 2025, $ 274.6 million of our fixed income securities have maturity dates within the next twelve months, and $ 5.1 million have maturities within the next 12 to 24 months. All securities are considered available for sale. ​ 14 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS (5) Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2025 2024 Research and development ​ $ 19,895 ​ $ 7,209 ​ Professional fees ​ 102 ​ 233 ​ Insurance ​ 450 ​ 174 ​ Tax credit receivable ​ 505 ​ 500 ​ ​ ​ $ 20,952 ​ $ 8,116 ​ ​ ​ (6) Accrued Expenses Accrued expenses consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2025 2024 Research and development ​ $ 10,823 ​ $ 8,626 ​ Professional fees ​ 253 ​ 474 ​ Compensation and related expenses ​ 4,388 ​ 4,163 ​ Other accrued expenses ​ 105 ​ 67 ​ ​ ​ $ 15,569 ​ $ 13,330 ​ ​ ​ (7) Stock-based Compensation In June 2021, the Company adopted the 2021 Employee, Director and Consultant Equity Incentive Plan, as amended (the “2021 Plan”), that authorized the Company to grant up to 803,564 shares of common stock via stock-based compensation awards. In 2022, the Company amended the 2021 Plan and increased the total number of shares authorized under the 2021 Plan to 2,748,818 . In January 2024, the Company adopted the 2024 Employee, Director and Consultant Equity Incentive Plan (the “2024 Plan”) that authorized the Company to grant up to 3,900,000 shares of common stock plus any remaining ungranted or forfeited shares from the 2021 Plan. As of September 30, 2025, there were 3,469,404 shares available to be granted under the 2024 Plan. The Company’s stock options vest based on the terms in the awards agreements and generally vest over four years . The Company recorded stock-based compensation expense in the following expense categories in its accompanying statements of operations and comprehensive loss (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2025 2024 2025 2024 Research and development ​ $ 1,611 ​ $ 315 ​ $ 4,091 ​ $ 968 ​ General and administrative ​ 2,105 ​ 550 ​ 5,207 ​ 1,289 ​ ​ ​ $ 3,716 ​ $ 865 ​ $ 9,298 ​ $ 2,257 ​ ​ 15 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS The following is a summary of stock options activity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ average ​ ​ ​ ​ ​ ​ average ​ remaining ​ Aggregate ​ ​ ​ ​ exercise ​ contractual ​ Intrinsic Value ​ Options price term (years) (in thousands) Outstanding as of December 31, 2024 2,531,144 ​ $ 6.77 ​ ​ ​ ​ Granted 2,012,326 ​ 26.20 ​ ​ ​ Exercised ( 113,253 ) ​ 3.94 ​ ​ ​ ​ Forfeited/Expired ​ ( 53,882 ) ​ ​ 16.84 ​ ​ ​ ​ ​ Outstanding as of September 30, 2025 4,376,335 ​ ​ 15.64 ​ 8.30 ​ $ 28,475 Exercisable as of September 30, 2025 1,369,230 ​ ​ 5.32 7.17 ​ ​ 18,144 Vested and expected to vest at September 30, 2025 4,376,335 ​ $ 15.64 ​ 8.30 ​ $ 28,475 ​ The weighted-average grant-date fair value of options granted in the first nine months of 2025 and 2024 were $ 20.98 and $ 8.53 per share, respectively. The fair value was estimated using the Black-Scholes option-pricing model based on the following assumptions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ ​ September 30, ​ ​ 2025 2024 Risk-free interest rate ​ 3.86 % - 4.37 % ​ ​ 3.69 % - 4.66 % ​ Expected term ​ 5.5 - 6.1 years ​ 5.5 - 6.1 years ​ Expected volatility ​ 96.1 % - 98.3 % ​ ​ 93.1 % - 98.6 % ​ Expected dividend yield ​ — ​ — ​ Estimated fair value of the Company's common stock per share (a) ​ $ 18.03 - 27.56 $ 5.85 - 20.79 ​ ​ (a) Subsequent to the Company’s initial public offering on January 24, 2024, the fair value of common stock is based on the closing market price of common stock at the date of grant. ​ Unrecognized compensation cost for awards not vested as of September 30, 2025 was $ 41.7 million and will be expensed over a weighted-average period of 2.80 years. ​ ​ (8) Commitments, Contingencies, and Collaborations The Company entered into various license and collaboration agreements under which it is obligated to make contingent payments as described below. Allist ​ In June 2021, the Company entered into a Global Technology Transfer and License Agreement with Allist (“Allist Agreement”). Pursuant to the Allist Agreement, the Company was granted an exclusive license under certain intellectual property to develop, manufacture and commercialize certain licensed products in the field in the licensed territory. Upon execution of the Allist Agreement, the Company paid Allist a non-refundable cash payment of $ 40.0 million and issued 1,276,250 shares of its common stock. The upfront payment and the fair value of the common stock issued was recorded to research and development expense in 2021. ​ Upon the achievement of certain clinical, regulatory and commercial milestones using the licensed technology, the Company is obligated to make future milestone payments to Allist of up to $ 105.0 million in clinical and 16 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS regulatory milestones and up to $ 655.0 million in commercial milestones. Furthermore, royalties, ranging from high single digit to low mid-teen percentages will be payable to Allist on net sales of licensed products in licensed territories. ​ In connection with the Allist Agreement, in December 2021, the parties also entered into a Joint Clinical Collaboration Agreement (“Clinical Collaboration”) to define the framework under which the parties will cooperate and share costs related to global clinical studies to be conducted jointly by the Company and Allist. During the nine months ended September 30, 2025 and 2024, the Company incurred $ 0.1 million and $ 0.5 million, respectively, in cost reimbursements to Allist under the Clinical Collaboration which have been recorded as research and development expense. During the three months ended September 30, 2024, the Company incurred $ 0.3 million in cost reimbursements to Allist under the Clinical Collaboration which have been recorded as research and development expense. No such payments were made during the three months ended September 30, 2025. The Company also received cost reimbursements from Allist of $ 0.8 and $ 0.4 million for the three months ended September 30, 2025 and 2024, respectively, which have been recorded as a reduction of research and development expenses. For the nine months ended September 30, 2025 and 2024, the Company received cost reimbursements from Allist of $ 1.4 and $ 0.8 million, respectively. Through September 30, 2025, no additional milestones were met or achieved or were probable of achievement. ​ Alphamab ​ In June 2024, the Company entered into a collaboration agreement with Jiangsu Alphamab Biopharmaceuticals Co., Ltd. (“Alphamab”) to discover, develop and commercialize novel antibody drug conjugates (“ADCs”) for the treatment of cancers (“Alphamab Agreement”). ​ Under the Alphamab Agreement, both companies seek to leverage Alphamab’s proprietary linker-payload platform and glycan-conjugation technology to identify novel ADCs for oncology indications. The Alphamab Agreement gives the Company exclusive rights to develop and commercialize ADCs globally, except Greater China, where Alphamab retains the right to develop and commercialize the ADCs. ​ The terms of the Alphamab Agreement include combined upfront and potential milestone payments to Alphamab of up to $ 201.5 million based on the achievement of certain regulatory and development milestones, and up to $ 414.0 million based on the achievement of certain commercial milestones. In addition, Alphamab is entitled to receive tiered sales royalties, ranging from low single digit to mid-single digit percentages, from the Company for net sales of each ADC product. ​ The upfront payment was recorded to research and development expense during the three-month period ended June 30, 2024. During the nine months ended September 30, 2025, the Company paid $ 0.1 million in cost reimbursements to Alphamab under the Alphamab Agreement which have been recorded as research and development expense. Also during the nine months ended September 30, 2025, the Company paid $ 1.2 million upon the approval of a target pair selection, which was likewise included in research and development expense. No milestones have been met or achieved, or are probable of achievement, since the inception of the agreement. ​ Aarvik ​ In December 2021, the Company entered into a Research Collaboration Agreement, as amended, effective June 30, 2023 (the “Aarvik Collaboration Agreement”), with Aarvik Pharmaceuticals, Inc. (“Aarvik”), under which the Company is required to pay Aarvik up to $ 3.1 million on statements of work (“SOWs”) and an initiation fee of $ 0.3 million. After the completion of the SOWs, the Company has an exclusive option to license the Aarvik intellectual property, and the option to acquire certain of Aarvik’s intellectual property, after which it is the Company’s sole 17 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS responsibility to research, develop, manufacture and commercialize any applicable compound and product in the field and territory. In August 2024, the Company paid $ 1.0 million to exercise that option, and as a result is now obligated to pay up to $ 18.0 million per product upon the achievement of certain clinical and regulatory milestone events and up to $ 80.0 million per product in commercial milestones. Additionally, the Company is obligated to pay Aarvik royalties in the mid-single digits based on net sales of licensed products. ​ On August 9, 2024, the Company entered into an amendment and restatement of the Aarvik Collaboration Agreement, as amended on July 2, 2025 (the “Amended and Restated Aarvik Collaboration Agreement”). Under the Amended and Restated Aarvik Collaboration Agreement, Aarvik granted the Company an exclusive option to obtain exclusive rights to certain of Aarvik’s intellectual property for the research, development, manufacture, use, commercialization, or other exploitation of the ADCs related to (i) the two agreed targets to which the compounds being developed under the collaboration bind, and (ii) the acquisition of exclusive rights to certain intellectual property generated during the collaboration. From inception to date, under the Amended and Restated Aarvik Collaboration Agreement, the Company has paid Aarvik a collaboration initiation fee and research fees as provided in the SOWs in an aggregate amount of $ 5.2 million. ​ The Company incurred $ 0.5 million and $ 3.1 million in research and development expenses related to the Aarvik SOWs during the nine months ended September 30, 2025 and 2024, respectively. The Company incurred $ 0.2 million and $ 1.9 million in research and development expenses related to the Aarvik SOWs during the three months ended September 30, 2025 and 2024, respectively. With the exception of the option described above, no milestones have been met or achieved, or are probable of achievement, since the inception of the Aarvik Collaboration Agreement. ​ Lepu ​ On January 21, 2025, the Company entered into an Exclusive License Agreement (the “Lepu Biopharma Agreement”) with Lepu Biopharma Co., Ltd. (“Lepu”), pursuant to which Lepu granted the Company a right to develop and commercialize ARR-217, an antibody drug conjugate for gastrointestinal cancers outside Greater China. ​ Under the Lepu Biopharma Agreement, Lepu granted to the Company: (i) an exclusive, royalty-bearing, sublicensable license under certain intellectual property owned or controlled by Lepu, to develop, manufacture and commercialize any product containing ARR-217 for all uses in all countries and territories other than Greater China (the “ArriVent Territory”); and (ii) a non-exclusive license under certain intellectual property controlled by Lepu to develop, manufacture and commercialize any product containing ARR-217 for use in oncology in the ArriVent Territory. Under the Lepu Biopharma Agreement, the Company paid Lepu a one-time upfront payment of $ 40 million and, during the three months ended June 30, 2025, the Company paid $ 1.0 million to Lepu for the achievement of the first developmental milestone under the Lepu Biopharma Agreement as it became probable of achievement during the second quarter. Lepu is eligible to receive near-term milestone payments totaling another $ 6.0 million in cash. The upfront payment was included in research and development expenses. Finally, Lepu is eligible to receive payments of up to $ 0.3 billion in development and regulatory milestones, and up to $ 0.89 billion in commercial milestones, and tiered royalties in high single-digit to low-teen percentages on net sales in the ArriVent Territory. ​ Other than the milestone payment of $ 1.0 million recorded in the second quarter, and the one-time payment noted above, no milestones have been met or achieved, or are probable of achievement, since the inception of the Lepu Biopharma Agreement. During three and nine months ended September 30, 2025, the Company paid $ 0.5 million and $ 0.7 million, respectively, in research and development expenses related to the Lepu Biopharma Agreement. ​ 18 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS ​ (9) Segment Information Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources in assessing performance. The Company has one reportable and operating segment: life science. The life science segment is engaged in identifying, licensing and globalizing top biopharma innovations from around the world to deliver important medicines to patients. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. ​ The accounting policies of the life science segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the life science segment based on net loss, which is reported on the condensed statement of operations and comprehensive loss. The measure of segment assets is reported on the balance sheet as total assets. All of the Company’s assets are located in the United States. ​ To date, the Company has not generated any product revenue. The Company expects to continue to incur significant expenses and operating losses for the foreseeable future as it advances product candidates through all stages of development and clinical trials and, ultimately, seek regulatory approval. ​ As such, the CODM uses cash forecast models in deciding how to invest into the life science segment. Such cash forecast models are reviewed to assess the entity-wide operating results and performance. Net loss is used to monitor budget versus actual results. Monitoring budgeted versus actual results is used in assessing performance of the segment, establishing cash forecast models and to optimize the distribution of resources across functions, therapeutic areas and research and development programs. ​ The table below summarizes the significant expense categories regularly provided to the CODM for the nine months ended September 30, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, (in thousands) 2025 2024 Operating expenses: ​ ​ ​ ​ ​ ​ Research and development: Firmonertinib (excluding personnel-related and other internal costs): ​ ​ ​ ​ ​ ​ FURTHER ​ $ 7,560 ​ $ 10,444 FURVENT ​ ​ 33,050 ​ ​ 24,259 FAVOUR ​ ​ 332 ​ ​ 133 Other Firmonertinib costs ​ ​ 7,108 ​ ​ 2,455 Total Firmonertinib ​ ​ 48,050 ​ ​ 37,291 Research and development: Early-stage programs ​ ​ 50,947 ​ ​ 8,860 Research and development: Personnel-related and other internal costs ​ ​ 22,178 ​ ​ 12,690 General and administrative: Personnel-related costs ​ ​ 11,018 ​ ​ 6,071 General and administrative: Other costs ​ ​ 6,518 ​ ​ 5,691 Other segment items (a) ​ ​ ( 7,947 ) ​ ​ ( 10,748 ) Net loss ​ $ ( 130,764 ) ​ $ ( 59,855 ) ​ ​ (a) Other segment items consists of interest and investment income. ​ 19 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS (10) Common Stock “At-the-Market” Offering On February 3, 2025, the Company filed an automatic shelf registration statement on Form S-3ASR with the SEC pursuant to which the Company registered for sale an indeterminate amount of any combination of its common stock, preferred stock, debt securities, warrants, rights and/or units from time to time and at prices and on terms that the Company may determine, which is referred to as the “2025 WKSI Shelf”. The 2025 WKSI Shelf includes a prospectus covering up to an aggregate of $ 250.0 million of shares of common stock that the Company is able to issue and sell from time to time, through Jefferies LLC (“Jefferies”), acting as its sales agent, pursuant to the Open Market Sale Agreement SM , dated February 3, 2025 (the “Sales Agreement”), for its “at-the-market” equity program. Under the Sales Agreement, Jefferies may sell shares of the Company’s common stock by any method permitted by law deemed to be an “at-the-market” offering as defined in Rule 415 of the Securities Act of 1933, as amended, subject to the terms of the Sales Agreement. During the nine months ended September 30, 2025, the Company sold 3,973,190 shares of common stock pursuant to the Sales Agreement for total proceeds of $ 87.3 million, net of commissions and other expenses. As of September 30, 2025, the Company has approximately $ 159.2 million remaining for future issuances of common stock pursuant to the Sales Agreement. July Public Offering On July 3, 2025, the Company closed an underwritten public offering in which the Company issued and sold an aggregate of 3,059,615 shares of its common stock, including the exercise in full of the underwriters’ option to purchase 576,923 additional shares of common stock, at a public offering price of $ 19.50 per share, and, in lieu of shares of common stock to certain investors, pre-funded warrants to purchase up to 1,363,469 shares of common stock at a public offering price of $ 19.4999 per pre-funded warrant, which represents the per share public offering price for the shares less the $ 0.0001 per share exercise price for each pre-funded warrant. The pre-funded warrants were recorded as a component of shareholders’ equity within additional paid-in-capital and have no expiration date. As of September 30, 2025, none of the pre-funded warrants have been exercised. The proceeds to the Company, net of underwriting discounts, commissions, and other expenses were $ 80.6 million. ​ The pre-funded warrants are exercisable at any time after their original issuance. A holder of pre-funded warrants may not exercise the pre-funded warrant if the holder, together with its affiliates, would beneficially own more than 4.99 %, or, at the election of such holder upon issuance, 9.99 %, of the number of shares of common stock outstanding or more than 4.99 %, or, at the election of such holder upon issuance, 9.99 %, of the combined voting power of the Company’s securities outstanding immediately after giving effect to such exercise. A holder of pre-funded warrants may increase or decrease this percentage to any other percentage not exceeding 19.99 %, in the case of an increase, upon 61 days ’ prior notice to the Company. As of September 30, 2025, there have been no exercises of pre-funded warrants since their issuance. ​ (11) Debt On May 8, 2025, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) between the Company, as borrower (the “Borrower”) and Silicon Valley Bank, a Division of First-Citizens Bank & Trust Company (the “Bank”), pursuant to which, the Bank agreed to extend up to $ 75.0 million to the Company (the “Term Loan”), consisting of: (i) a first tranche commitment of $ 35.0 million to be drawn at the Company’s option, subject to the satisfaction of certain conditions, (ii) a second tranche commitment of up to $ 15.0 million to be drawn at the Company’s option, subject to the satisfaction of certain conditions, and (iii) at the Company’s option, subject to the satisfaction of 20 Table of Contents ARRIVENT BIOPHARMA, INC. NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS certain conditions, a third tranche commitment of $ 25.0 million. No amounts have been drawn on this Term Loan as of September 30, 2025. ​ The Term Loan matures on March 1, 2030 (or, if the Borrower does not satisfy certain conditions, on March 1, 2029) unless otherwise accelerated following the occurrence and continuation of an event of default pursuant to the terms of the Loan Agreement. Amounts borrowed under the Term Loan bear interest at a variable annual rate equal to the greater of (i) 6.00 %, and (ii) (A) the Prime Rate , minus (B) 0.75 %. The Borrowers may, at their option, prepay the Term Loan subject to a prepayment premium. ​ The Borrower’s obligations are secured by a first priority, perfected lien on substantially all the property and assets of the Borrower, except for intellectual property (other than the security interest in proceeds from any intellectual property) and certain other customary excluded assets as set forth therein. ​ ​ ​ ​ ​ ​ 21 Table of Contents