What changed in this filing

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Item 1. Financial Statements

2026-08-10 compared with 2026-05-13 · 113 added, 137 removed, 425 unchanged (37% of the section changed)

30 unchanged sentences

Preferred stock, $ 0.0001 par value;

10,000,000 shares authorized and no shares issued or outstanding as of March 31, 2026 and December 31, 2025

10,000,000 shares authorized and no shares issued or outstanding as of June 30, 2026 and December 31, 2025

Common stock, $ 0.0001 par value;

400,000,000 shares authorized at March 31, 2026 and December 31, 2025;

11,276,500 and 10,740,200 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

400,000,000 shares authorized at June 30, 2026 and December 31, 2025;

11,777,300 and 10,740,200 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

8 unchanged sentences

Three Months Ended

Six Months Ended

Product revenue

23 unchanged sentences

Three Months Ended

Other comprehensive loss:

Unrealized loss on investment securities

Six Months Ended

Other comprehensive income (loss):

Unrealized gain (loss) on investment securities

Foreign currency translation adjustments

Other comprehensive loss

Other comprehensive income (loss)

Total comprehensive loss

13 unchanged sentences

Balance at March 31, 2025

Stock-based compensation expense

Issue common stock, net of issuance costs

Issuance of common stock due to the vesting of restricted stock units, net of shares withheld to cover taxes

Other comprehensive loss

Balance at June 30, 2025

Balance at January 1, 2026

3 unchanged sentences

Balance at March 31, 2026

Stock-based compensation expense

Issue common stock, net of issuance costs

Issuance of common stock due to the vesting of restricted stock units, net of shares withheld to cover taxes

Other comprehensive income

Balance at June 30, 2026

See accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Three Months Ended

Six Months Ended

Operating activities:

4 unchanged sentences

Non-cash lease expense

Gain on lease modification

Gain on lease termination/modification

Stock-based compensation

19 unchanged sentences

Payments on convertible debentures

Net cash provided by financing activities

Net cash provided by (used in) financing activities

Effect of exchange rates on cash and cash equivalents and restricted cash

4 unchanged sentences

Cash and cash equivalents

Money market funds classified as restricted cash and investments

Restricted cash

Total cash and cash equivalents and restricted cash at end of period

Three Months Ended

Six Months Ended

Supplemental disclosure of cash flow information

5 unchanged sentences

Fees paid in common stock

Operating lease liabilities resulting from obtaining right-of-use assets

See accompanying notes to the unaudited condensed consolidated financial statements.

23 unchanged sentences

The Company has experienced recurring net losses from operations, negative cash flows from operating activities, and a significant accumulated deficit since its inception and expects to continue to incur net losses into the foreseeable future.

As of March 31, 2026, the Company had approximately $ 3.4 million in cash and cash equivalents, $ 11.0 million in short-term investments, $ 10.3 million in restricted cash and short-term investments, and working capital of $ 17.7 million .

The amount the Company is required to hold as restricted cash or investments is equal to the lesser of (a) $ 11.0 million and (b) the then outstanding principal balance of the Debentures (as defined in Note 5 (Debt) to our unaudited condensed consolidated financial statements).

As of March 31, 2026, the Company had $ 10.3 million of principal outstanding under the Debentures (see Note 5 (Debt) to our unaudited condensed consolidated financial statements) and an accumulated deficit of $ 727.9 million .

During the three months ended March 31, 2026, the Company used $ 5.7 million of cash in operations.

As of June 30, 2026, the Company had approximately $ 3.7 million in cash and cash equivalents, $ 6.2 million in short-term investments, $ 0.5 million in restricted cash and investments, and working capital of $ 14.8 million .

The $ 0.5 million of restricted cash is included in an Irrevocable Standby Letter of Credit (“Letter of Credit”) set to expire on September 30, 2026.

As of June 30, 2026, the Company had fully redeemed the outstanding principal balance under the Debentures (see Note 5 (Debt) to our unaudited condensed consolidated financial statements).

During the six months ended June 30, 2026, the Company used $ 10.4 million of cash in operations and had an accumulated deficit of $ 735.3 million as of June 30, 2026.

Management expects operating losses and negative cash flows to continue for at least the next year as the Company continues to incur costs related to product development and commercialization efforts.

Management has prepared cash flows forecasts which indicate that based on the Company’s expected operating losses and negative cash flows, there is substantial doubt about the Company’s ability to continue as a going concern within twelve months after the date that the unaudited condensed consolidated financial statements for the three months ended March 31, 2026, are issued.

Management’s ability to continue as a going concern is dependent upon its ability to raise additional funding.

4 unchanged sentences

Significant Accounting Policies

During the three months ended March 31, 2026, there were no material changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 .

During the three and six months ended June 30, 2026, there were no material changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 .

Restructuring Expenses

2 unchanged sentences

As a result of reducing facility costs and discretionary spending unrelated to headcount and combined with the cost savings from the 2023 Workforce Reductions and 2024 Workforce Reductions, such plans were intended to decrease expenses and maintain a streamlined organization to support the Company’s business.

No restructuring charges were incurred during the three months ended March 31, 2026 and 2025.

No restructuring charges were incurred during the three and six months ended June 30, 2026 and 2025 .

Impairment of Long-Lived Assets (including Finite-Lived Intangible Assets)

3 unchanged sentences

Any required impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value, and would be recorded as a reduction in the carrying value of the related asset and a charge to operating expense.

No impairment losses were recorded during the three months ended March 31, 2026 and 2025 .

No impairment losses were recorded during the three and six months ended June 30, 2026 and 2025 .

The Company reviews its inventories for classification purposes.

The value of inventories not expected to be realized in cash, sold or consumed during the next 12 months are classified as non-current within other long-term assets.

As of March 31, 2026, $ 2.4 million of inventories were included in other long-term assets.

As of March 31, 2026, the Company’s excess and obsolete inventory reserve balance was $ 2.9 million .

As of June 30, 2026, $ 1.8 million of inventories were included in other long-term assets.

As of June 30, 2026, the Company’s excess and obsolete inventory reserve balance was $ 2.8 million .

Loss on disposal of property and equipment

Loss on disposal of property and equipment includes the net book value of assets that have been abandoned or retired and consists primarily of our leasehold improvements, furniture, equipment and fixtures that were abandoned and disposed of in the normal course of business.

The Company recorded an immaterial loss on disposal of property and equipment during the three months ended March 31, 2026 and 2025 .

The Company recorded an immaterial loss on disposal of property and equipment during the six months ended June 30, 2026 and a $ 0.3 million loss on disposal of property and equipment during the six months ended June 30, 2025 .

Segment Reporting

Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance.

The Company’s CODM is its Chief Executive Officer .

The Company’s CODM is its Interim Chief Executive Officer .

The Company has determined it has one operating and reportable segment.

15 unchanged sentences

This ASU will improve the navigability of required interim disclosures and clarify when that guidance is applicable, and will require entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

This ASU is effective for interim

periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

This ASU is effective for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company will adopt the standard for the interim periods within the year ending December 31, 2028.

5 unchanged sentences

Entities are required to apply the amendments to ASC 260 retrospectively.

All other amendments may be applied prospectively or retrospectively.

All other amendments may be applied prospectively or

retrospectively.

The Company is currently evaluating the impact of this accounting standard update on the Company’s consolidated financial statements and related disclosures.

3 unchanged sentences

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The provisions of OBBBA did not have a material impact on the Company’s unaudited condensed consolidated financial statements for the three months ended March 31, 2026.

The Company will continue to evaluate the impact of OBBBA on the Company’s consolidated financial statements and related disclosures for the year ending December 31, 2026 .

The provisions of OBBBA did not have a material impact on the Company’s unaudited condensed consolidated financial statements for the three and six months ended June 30, 2026.

The Company will continue to evaluate the impact of OBBBA provisions with future effective dates on the Company’s consolidated financial statements and related disclosures for the year ending December 31, 2026 .

Net Loss Per Share

10 unchanged sentences

Revenue by Source (in thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Total product revenue

2 unchanged sentences

Revenue by Geographic Location (in thousands)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

The tables above provide revenue from contracts with customers by source and geographic region (based on the customer’s billing address) on a disaggregated basis.

2 unchanged sentences

Asia Pacific includes China, Japan, South Korea, Singapore, India and Australia.

For the three months ended March 31, 2026 and 2025 , the United States represented approximately 30 % and 38 % of total revenue, respectively.

For the three months ended March 31, 2026, France represented approximately 11 % of total revenue.

No other countries represented greater than 10% of total revenue during the three months ended March 31, 2026 and 2025.

For the three months ended June 30, 2026 and 2025, the United States represented approximately 23.1 % and 38.9 % of total revenue, respectively.

For the six months ended June 30, 2026 and 2025 , the United States represented approximately 26.1 % and 38.7 % of total revenue, respectively.

For the three and six months ended June 30, 2026, France represented approximately 10.1 % and 10.3 % of total revenue, respectively.

No other countries represented greater than 10% of total revenue during the three and six months ended June 30, 2026 and 2025.

Remaining Performance Obligations

As of March 31, 2026, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied was $ 1.3 million .

As of June 30, 2026, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied was $ 1.3 million .

These remaining performance obligations primarily relate to extended warranty and support and maintenance obligations, as well as obligations related to software under hosting arrangements.

1 unchanged sentence

Warranty revenue is included in service and other revenue.

The Company recognized revenue of $ 0.7 million and $ 0.7 million during the three months ended March 31, 2026 and 2025 , respectively, which was included in the contract liability balance at the end of the year preceding each period.

The Company recognized revenue of $ 0.4 million and $ 0.4 million during the three months ended June 30, 2026 and 2025, respectively, which was included in the contract liability balance at the end of the year preceding each period.

The Company recognized revenue of $ 1.1 million and $ 1.0 million during the six months ended June 30, 2026 and 2025 , respectively, which was included in the contract liability balance at the end of the year preceding each period.

Balance Sheet Account Details

4 unchanged sentences

Total accounts receivable, net

Changes to the allowance for credit losses during the three months ended March 31, 2026 and 2025 were as follows (in thousands):

Changes to the allowance for credit losses during the six months ended June 30, 2026 and 2025 were as follows (in thousands):

Allowance for

2 unchanged sentences

Provision for expected credit loss

Balance as of March 31, 2025

Balance as of June 30, 2025

Balance as of January 1, 2026

Provision for expected credit loss

Balance as of March 31, 2026

Balance as of June 30, 2026

The Company’s analysis included an assessment of aged trade receivables balances and their underlying credit risk characteristics.

16 unchanged sentences

Total property and equipment, net

For the three months ended March 31, 2026 and 2025, the Company recorded depreciation expense of $ 1.0 million and $ 1.1 million , respectively, which includes an allocation to cost of revenue of $ 0.7 million and $ 0.7 million respectively.

For the three months ended June 30, 2026 and 2025, the Company recorded depreciation expense of $ 1.0 million and $ 1.0 million , respectively, which includes an allocation to cost of revenue of $ 0.7 million and $ 0.6 million , respectively.

For the six months ended June 30, 2026 and 2025, the Company recorded depreciation expense of $ 1.9 million and $ 2.1 million , respectively, which includes an allocation to cost of revenue of $ 1.3 million and $ 1.3 million , respectively.

Intangible Assets

Intangible assets that are subject to amortization consisted of the following at March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

Intangible assets that are subject to amortization consisted of the following at June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026

December 31, 2025

2 unchanged sentences

Intangibles, net

Intangible assets not subject to amortization totaled $ 0.1 million at March 31, 2026 and December 31, 2025 and related to the Company’s domain name.

Intangible assets not subject to amortization totaled $ 0.1 million at June 30, 2026 and December 31, 2025 and related to the Company’s domain name.

Accrued Expenses

4 unchanged sentences

Warranty liabilities

Compensation expenses include accrued restructuring costs of $ 0.2 million and $ 0.3 million as of March 31, 2026 and December 31, 2025, respectively .

Compensation expenses include accrued restructuring costs of $ 0.2 million and $ 0.3 million as of June 30, 2026 and December 31, 2025, respectively .

Refer to Note 7 (Commitments and Contingencies).

3 unchanged sentences

• Senior Secured Convertible Debentures in the aggregate principal amount of $ 20.0 million (the “Debentures”), for an aggregate purchase price of $ 18.0 million .

The closing of the JGB Debentures Offering occurred on May 24, 2024.

In connection with the closing of the JGB Debentures Offering, the Company received net proceeds of approximately $ 16.3 million , after payment of placement agent fees, and other offering expenses.

The Debentures have an aggregate face value of $ 20.0 million and were issued with an original issue discount of $ 2.0 million .

The Debentures mature on May 24, 2026, and have an interest rate of 11.0 % per annum payable monthly on the last business day of each calendar month.

During the three months ended March 31, 2026, the Company paid the Holders $ 0.3 million in interest, which is included in the change in fair value within other income (expense), net.

The Company recorded the Debentures at their fair value at issuance of $ 19.9 million , per the fair value option under ASC 825 (refer to Note 8 (Investments and Fair Value Measurements)) and they will be measured on a recurring basis and adjusted through other income and expense, net.

The Shares were recorded at $ 0 in common stock and additional paid in capital, which represents the residual amount after allocation of proceeds to the Debentures at fair value.

During the year ended December 31, 2024, the Company recognized an initial loss on the issuance of the Debentures of $ 1.9 million for the difference between the fair value of the Debentures and proceeds from the transaction, which was recorded in other income (expense) on the unaudited condensed consolidated statement of operations.

The Company incurred debt issuance costs of $ 1.7 million related to the JGB Debentures Offering, which was charged to interest expense and recorded in other income (expense) on the unaudited condensed consolidated statement of operations.

The Holders of the Debentures requested that the Company redeem up to $ 1.0 million per calendar month of its Debentures and may request redemption up to $ 0.5 million per calendar month beginning in January 2025 to July 2025, and up to $ 1.4 million from August 2025 onward.

The table below shows the amount (in thousands) of potential redemptions each year until the maturity of the Debentures as of March 31, 2026.

The Company may redeem the Debentures, subject to certain Equity Conditions (as defined in the Debentures), at any time after August 2025 by paying an amount equal to the entire outstanding principal amount of the Debenture, plus all accrued and unpaid interest, plus the applicable Company Redemption Premium (as defined in the Debentures, the “Premium”) plus any other amounts due and payable under the Debentures.

The Premium is an amount equal to 112 % of the principal amount of the Debenture if the redemption is prior to the first anniversary of the original issue date, or 106 % of the principal amount of the Debenture if the redemption is on or after the first anniversary of the original issue date.

No partial redemptions by the Company are permitted.

At the election of the holder, each Debenture is convertible, in whole or in part, at any time and from time to time at a conversion price of $ 16.20 per share of common stock.

The conversion price is subject to adjustment for stock dividends, stock splits, and certain other corporate events.

Notwithstanding the foregoing, the Company will not effect any conversion under the Debentures to the extent that such conversion would cause the holder’s beneficial ownership of the Company’s common stock to exceed 4.99 % (or 9.99 % at the election of the holder) of the Company’s issued and outstanding common stock.

Under the Debentures, the Company must at all times maintain a cash or restricted investments balance equal to the lesser of (a) $ 11.0 million and (b) the then outstanding principal balance of the Debentures, in a blocked account.

In addition, for as long as any portion of the Debentures remain outstanding, the Company is generally restricted from:

incurring indebtedness;

granting or suffering liens on any of its property or assets;

amending its organizational documents;

repurchasing any of its securities;

paying dividends;

selling, disposing, licensing or leasing its assets other than in the ordinary course;

and other customary restrictive covenants.

The Debentures also set forth certain customary events of default after which the Debentures may be declared immediately due and payable, including certain types of bankruptcy or insolvency events of default involving the Company and its subsidiaries, and in the event of a change of control or fundamental transaction as defined in the Debentures.

As of March 31, 2026, the Company had $ 10.3 million of principal outstanding, including $ 0.5 million of the “Fill-Up Amount” (as defined in the JGB Amendment (as defined below)) that was adjusted to the principal outstanding balance as of December 31, 2024.

The Fill-Up Amount represents the shares issuable to adjust for stock price volatility between the date of the settlement agreement and the effective date of the resale registration statement registering such shares for issuance.

The Fill-Up Amount shall be payable by adding each Holder’s pro rata share of the Fill-Up Amount to its Debenture.

Refer to Note 8 (Investments and Fair Value Measurements), for fair value measurements and additional discussion.

The activity for the three months ended March 31, 2026 was as follows (in thousands):

The Debentures had an aggregate face value of $ 20.0 million and were issued with an original issue discount of $ 2.0 million .

The Debentures matured on May 24, 2026, and had an interest rate of 11.0 % per annum payable monthly on the last business day of each calendar month.

During the six months ended June 30, 2026, the Company paid the Holders $ 0.5 million in interest, which was included in the change in fair value within other income (expense), net.

The outstanding principal balance of $ 10.3 million was redeemed in full shortly after maturity on May 26, 2026 .

The Company recorded the Debentures at their fair value, per the fair value option under ASC 825 (refer to Note 8 (Investments and Fair Value Measurements)) and they were measured on a recurring basis and adjusted through other income and expense, net.

At the election of the holder, each Debenture was convertible, in whole or in part, at any time and from time to time at a conversion price of $ 16.20 per share of common stock, subject to adjustment for stock dividends, stock splits, and certain other corporate events.

As of June 30, 2026, the Debentures have been repaid in full and the principal outstanding balance was zero.

The activity for the six months ended June 30, 2026 was as follows (in thousands):

Principal balance, January 1, 2026

Redemption payments of principal

Debentures principal balance, March 31, 2026

JGB Amendment

On December 31, 2024, the Company entered into an amendment of the Debentures (the “JGB Amendment”) with the Holders thereof.

Pursuant to the JGB Amendment, the parties agreed that (i) no amortization payment would be paid in December 2024;

(ii) the maximum monthly amortization payments due between January 2025 and July 2025 would be reduced from $ 1.0 million per month to $ 0.5 million per month;

(iii) the maximum monthly amortization payments due from August 2025 through repayment in full of the principal aggregate amount would be $ 1.4 million per month;

(iv) the conversion price of the Debentures would be reduced from $ 120.00 to $ 16.20 ;

and (v) the Debentures would become non-callable by the Company until August 2025.

As consideration for the JGB Amendment, the Company issued to the Holders approximately 83,000 shares of its common stock (the “Private Placement Shares”).

The Company accounted for the JGB Amendment as a debt extinguishment and recognized a loss on the extinguishment of the convertible debentures payable of $ 7.3 million , which was recorded in other income (expense) on the consolidated statement of operations as of December 31, 2024.

On January 3, 2025, the Holders had converted $ 0.4 million principal into approximately 22,000 shares of the Company’s common stock, at the conversion price of $ 16.20 per share.

Debentures principal balance, June 30, 2026

On January 3, 2025, the Holders converted $ 0.4 million of principal into approximately 22,000 shares of the Company’s common stock, at the conversion price of $ 16.20 per share.

Other Income (Expense), Net

The following is a summary of the charges included within other income (expense), net on the unaudited condensed consolidated statement of operations (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Other interest expense

6 unchanged sentences

On March 23, 2021, the Company entered into a Sales Agreement with Cowen and Company, LLC (“Cowen”) which provides for the sale, in the Company’s sole discretion, of shares of common stock having an aggregate offering price of up to $ 350.0 million through or to Cowen, acting as sales agent or principal, which was amended on March 9, 2023 to decrease the maximum aggregate offering price to $ 200.0 million for sales made on and after the date of the amendment (the “Cowen ATM”).

The Company agreed to pay Cowen a commission of up to 3.0 % of the aggregate gross proceeds from each sale of shares, reimburse legal fees and disbursements and

provide Cowen with customary indemnification and contribution rights.

The Company agreed to pay Cowen a commission of up to 3.0 % of the aggregate gross proceeds from each sale of shares, reimburse legal fees and disbursements and provide Cowen with customary indemnification and contribution rights.

On February 4, 2025, the Company provided notice of its termination, effective February 14, 2025, of the Cowen ATM.

2 unchanged sentences

Wainwright & Co., LLC (“Wainwright”), pursuant to which the Company may offer and sell, from time to time at its sole discretion, shares of its common stock having an aggregate offering price of up to $ 75.0 million , through or to Wainwright, acting as sales agent or principal.

The Company agreed to pay Wainwright a commission of up to 3.0 % of the aggregate gross proceeds from each sale of shares, reimburse legal fees and disbursements and provide Wainwright with customary indemnification and contribution rights.

During the three months ended March 31, 2026, the Company sold approximately 0.5 million shares of common stock under the ATM Agreement at an average share price of $ 1.32 per share, and received gross proceeds of approximately $ 0.7 million before deducting offering costs of $ 0.03 million .

From April to May 2026, the Company sold approximately 0.2 million shares of common stock under the ATM Agreement at an average share price of $ 1.23 per share, and received gross proceeds of approximately $ 0.3 million before deducting offering costs of $ 0.01 million .

The Company agreed to pay Wainwright a commission of up to 3.0 % of the aggregate gross proceeds from each sale of shares, reimburse

legal fees and disbursements and provide Wainwright with customary indemnification and contribution rights.

During the six months ended June 30, 2026, the Company sold approximately 1.0 million shares of common stock under the ATM Agreement at an average share price of $ 1.28 per share, and received gross proceeds of approximately $ 1.3 million before deducting offering costs of $ 0.05 million .

Stock Warrants

A summary of the Company’s warrant activity during the three months ended March 31, 2026 was as follows:

A summary of the Company’s warrant activity during the six months ended June 30, 2026 was as follows:

Aggregate Intrinsic Value (in thousands)

Outstanding at January 1, 2026

Outstanding at March 31, 2026

Outstanding at June 30, 2026

Stock Options

A summary of the Company’s stock option activity during the three months ended March 31, 2026 was as follows:

A summary of the Company’s stock option activity during the six months ended June 30, 2026 was as follows:

Stock Options

1 unchanged sentence

Outstanding at January 1, 2026

Outstanding and expected to vest at March 31, 2026

Vested and exercisable at March 31, 2026

For the three months ended March 31, 2026, the weighted-average grant date fair value of stock options granted was $ 1.05 per share.

Outstanding and expected to vest at June 30, 2026

Vested and exercisable at June 30, 2026

For the three and six months ended June 30, 2026, the weighted-average grant date fair value of stock options granted was $ 0.90 and $ 1.04 per share, respectively.

Stock-Based Compensation

The Company recognized stock-based compensation expense for the periods presented as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Cost of product revenue

4 unchanged sentences

The weighted-average assumptions used in the Black-Scholes-Merton option pricing model to determine the fair value of the employee stock option grants during the periods presented were as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Risk-free interest rate

3 unchanged sentences

Restricted Stock Units

The following table summarizes RSU activity during the three months ended March 31, 2026:

The following table summarizes RSU activity during the six months ended June 30, 2026:

Weighted- Average

2 unchanged sentences

Outstanding at January 1, 2026

Outstanding at March 31, 2026

The total fair value of the RSUs that vested during the three months ended March 31, 2026 was $ 0.4 million , determined as of the date of vesting.

The weighted average remaining contractual term for the RSUs was 2.0 years as of March 31, 2026.

Outstanding at June 30, 2026

The total fair value of the RSUs that vested during the six months ended June 30, 2026 was $ 0.5 million , determined as of the date of vesting.

The weighted average remaining contractual term for the RSUs was 1.7 years as of June 30, 2026.

Executive Option Grants

4 unchanged sentences

The Company has entered into various operating lease agreements and a finance lease agreement, primarily relating to the Company’s office, laboratory, and manufacturing space.

The future minimum payments under non-cancellable operating and finance leases as of March 31, 2026, are as follows (in thousands):

The future minimum payments under non-cancellable operating and finance leases as of June 30, 2026, are as follows (in thousands):

Operating Leases

8 unchanged sentences

The 2024 Workforce Reductions described in Note 1 (Organization and Basis of Presentation) comprised primarily of severance payments and wages for the 60-day notice period in accordance with the California Worker Adjustment and Retraining Notification (“WARN”) Act.

There were no restructuring charges incurred for the three months ended March 31, 2026 and 2025 .

The following is a summary of the accrued restructuring liability that was recorded in connection with the reductions in force for the three months ended March 31, 2026 and 2025 included within accrued expenses on the unaudited condensed consolidated financial statements (in thousands):

There were no restructuring charges incurred for the three and six months ended June 30, 2026 and 2025 .

The following is a summary of the accrued restructuring liability that was recorded in connection with the reductions in force for the six months ended June 30, 2026 and the year ended December 31, 2025 included within accrued expenses on the unaudited condensed consolidated financial statements (in thousands):

Accrued restructuring as of January 1, 2025

5 unchanged sentences

Cash payments

Accrued restructuring as of March 31, 2026

Accrued restructuring as of June 30, 2026

From time to time, the Company may be subject to potential liabilities under various claims and legal actions that are pending or may be asserted.

4 unchanged sentences

Investments and Fair Value Measurements

The Company holds investment securities that consist of highly liquid, investment grade debt securities.

The Company often holds investment securities that consist of highly liquid, U.S.

treasuries and investment grade debt securities.

The Company determines the fair value of its investment securities based upon one or more valuations reported by its investment accounting and reporting service provider.

1 unchanged sentence

Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curves, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, and broker and dealer quotes, as well as other relevant economic measures.

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 (in thousands):

June 30, 2026

Fair Value Measurement Category

2 unchanged sentences

Money market funds classified as cash equivalents

Money market funds classified as restricted cash and investments

treasuries classified as restricted cash and investments

Convertible debentures payable

The Company’s restricted cash and investments balance of $ 10.3 million as of March 31, 2026 includes $ 1.5 million of money market funds that were recorded as restricted cash and $ 8.8 million of U.S.

treasuries that were recorded as restricted investments.

December 31, 2025

9 unchanged sentences

JGB Convertible Debentures Payable

The fair value of the JGB convertible debentures maturing in 2026, which were issued on May 24, 2024 were estimated using a scenario-based analysis on a quarterly basis.

The fair value of the JGB convertible debentures, which were issued on May 24, 2024, and fully redeemed shortly after maturity on May 26, 2026, were estimated using a scenario-based analysis on a quarterly basis.

The fair value was estimated using a lattice model.

1 unchanged sentence

Convertible Debentures

March 31, 2026

December 31, 2025

5 unchanged sentences

The volatility is based on an analysis of the Company’s historical stock price, the risk-free rate is based on US treasury yields, the equity discount rate is based on term-specific US treasury yields, and the debt discount rate is based on the Company’s credit rating.

Changes in estimated fair value of convertible debentures payable in the three months ended March 31, 2026 and 2025 are as follows (in thousands):

Changes in estimated fair value of convertible debentures payable in the six months ended June 30, 2026 and 2025 are as follows (in thousands):

Convertible Debentures Payable (Level 3 Measurement)

3 unchanged sentences

Cash payments on redemptions

Balance as of March 31, 2025

Balance as of June 30, 2025

Balance as of January 1, 2026

2 unchanged sentences

Cash payments on redemptions

Balance as of March 31, 2026

Balance as of June 30, 2026

Available for Sale Investments

8 unchanged sentences

Moreover, the Company continues to receive payments of interest and principal as they become due, and our expectation is that those payments will continue to be received timely.

Based on this evaluation, as of March 31, 2026 and December 31, 2025 , the Company determined that unrealized losses of the below securities were primarily attributable to changes in interest rates and non-credit related factors.

Based on this evaluation, as of June 30, 2026 and December 31, 2025 , the Company determined that unrealized losses of the below securities were primarily attributable to changes in interest rates and non-credit related factors.

As such, no allowances for credit losses were recorded during these periods.

As of March 31, 2026 and December 31, 2025, the Company held nine and two securities, respectively, which have been in an unrealized loss position for a period of less than 12 months.

As of March 31, 2026 and December 31, 2025 , the Company held no securities which have been in an unrealized loss position for a period of greater than 12 months.

As of June 30, 2026 and December 31, 2025, the Company held two securities, which have been in an immaterial unrealized loss position for a period of less than 12 months.

As of June 30, 2026 and December 31, 2025 , the Company held no securities which have been in an unrealized loss position for a period of greater than 12 months.

Realized gains and losses are calculated using the specific identification method and recorded in other income (expense) in the Company’s unaudited condensed consolidated statements of operations and comprehensive loss.

The Company has the ability, if necessary, to liquidate any of its cash equivalents and marketable securities to meet its liquidity needs in the next 12 months.

During the three months ended March 31, 2026 , the Company did no t sell any of its available for sale securities.

During the six months ended June 30, 2026 , the Company did no t sell any of its available for sale securities.

The Company recognizes losses in other income relating to any sales of its securities.

Amounts are reclassified out of accumulated other comprehensive income into earnings using the specific identification method when sales are realized.

Interest receivable was immaterial as of March 31, 2026 and December 31, 2025.

Interest receivable was immaterial as of June 30, 2026 and December 31, 2025.

Interest receivable is recorded as a component of prepaid expenses and other current assets on the unaudited condensed consolidated balance sheets.

As of March 31, 2026, the following table summarizes the amortized cost and the unrealized gains (losses) of the available for sale securities presented within investments and restricted cash and investments (in thousands):

As of June 30, 2026, the following table summarizes the amortized cost and the unrealized gains (losses) of the available for sale securities presented within investments (in thousands):

Remaining Contractual Maturity (in years)

treasuries classified as short-term investments

treasuries classified as restricted cash and investments

Total maturity less than 1 year

4 unchanged sentences

Total maturity less than 1 year

As of March 31, 2026 , there were no available-for-sale securities listed as investments in an unrealized loss position.

As of March 31, 2026, the following table summarizes available-for-sale securities in an unrealized loss position for the available for sale securities presented within restricted cash and investments (in thousands):

Less Than 12 Months

12 Months or Greater

treasuries classified as restricted cash and investments

As of June 30, 2026, there was an immaterial amount of available-for-sale securities listed as investments in an unrealized loss position for a period of less than 12 months, and none, for a period greater than 12 months.

As of December 31, 2025 , there were no available-for-sale securities listed as investments in an unrealized loss position.

As of December 31, 2025, the following table summarizes available-for-sale securities in an unrealized loss position for the available for sale securities presented within restricted cash and investments (in thousands):

Less Than 12 Months

12 Months or Greater

Corporate Notes/Bonds

As of December 31, 2025, there was an immaterial amount of available-for-sale securities in an unrealized loss position for the available for sale securities presented within restricted cash and investments for a period of less than 12 months, and none, for a period greater than 12 months .

Segment Reporting

The following table presents financial information with respect to the Company’s single operating segment, including significant segment expenses, which are regularly provided to the CODM and included within consolidated operating loss (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Cost of revenue

11 unchanged sentences

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