What changed in this filing

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Item 1. Financial Statements

2025-11-06 compared with 2025-08-13 · 110 added, 92 removed, 465 unchanged (30% of the section changed)

3 unchanged sentences

(In Thousands, Except Per Share Amounts)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Current assets:

38 unchanged sentences

200,000 shares authorized;

90,254 shares and 81,850 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

90,281 shares and 81,850 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 654,904 629,673

7 unchanged sentences

(In Thousands, Except Per Share Amounts)

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

21 unchanged sentences

(In Thousands)

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Net loss $ ( 19,615 ) $ ( 20,640 ) $ ( 53,575 ) $ ( 54,900 )

Other comprehensive loss:

Unrealized loss on available-for-sale short-term investments, net of tax ( 17 ) ( 7 ) ( 55 ) ( 23 )

Other comprehensive income (loss):

Unrealized gain (loss) on available-for-sale short-term investments, net of tax

15 149 ( 40 ) 126

Comprehensive loss $ ( 19,600 ) $ ( 20,491 ) $ ( 53,615 ) $ ( 54,774 )

6 unchanged sentences

Accumulated Deficit Total Stockholders' Equity

Three Months Ended June 30, 2025 Shares Amount

Balance as of April 1, 2025

Three Months Ended September 30, 2025 Shares Amount

Balance as of July 1, 2025

90,254 $ 9 $ 652,391 $ ( 3 ) $ ( 596,766 ) $ 55,631

Issuance of common stock upon release of stock awards 27 — — — — —

Issuance of common stock under employee stock purchase plan 151 — 317 — — 317

Issuance of common stock in connection with an equity sales agreement, net of issuance costs of $ 826

7,245 1 16,441 — — 16,442

Stock-based compensation — — 2,513 — — 2,513

Net loss — — — — ( 19,615 ) ( 19,615 )

Other comprehensive loss — — — ( 17 ) — ( 17 )

Balance as of June 30, 2025

Other comprehensive income

— — — 15 — 15

Balance as of September 30, 2025

90,281 $ 9 $ 654,904 $ 12 $ ( 616,381 ) $ 38,544

Common Stock Additional

Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity

Three Months Ended June 30, 2024 Shares Amount

Balance as of April 1, 2024

Capital Accumulated Other Comprehensive Income (Loss)

Accumulated Deficit Total Stockholders' Equity

Three Months Ended September 30, 2024 Shares Amount

Balance as of July 1, 2024

70,914 $ 7 $ 593,253 $ ( 23 ) $ ( 531,790 ) $ 61,447

Issuance of common stock upon release of stock awards 22 — — — — —

Issuance of common stock under employee stock purchase plan 124 — 260 — — 260

Issuance of common stock in connection with an equity sales agreement, net of issuance costs of $ 1,584

10,440 1 29,735 — — 29,736

Stock-based compensation — — 2,708 — — 2,708

Net loss — — — — ( 20,640 ) ( 20,640 )

Other comprehensive loss — — — ( 7 ) — ( 7 )

Balance as of June 30, 2024

Other comprehensive income

— — — 149 — 149

Balance as of September 30, 2024

81,376 $ 8 $ 625,696 $ 126 $ ( 552,430 ) $ 73,400

See accompanying notes to the unaudited condensed consolidated financial statements.

3 unchanged sentences

Common Stock Additional

Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders' Equity

Six Months Ended June 30, 2025 Shares Amount

Capital Accumulated Other Comprehensive Income

Accumulated Deficit Total Stockholders' Equity

Nine Months Ended September 30, 2025 Shares Amount

Balance as of January 1, 2025

8 unchanged sentences

Other comprehensive loss — — — ( 40 ) — ( 40 )

Balance as of June 30, 2025

Balance as of September 30, 2025

90,281 $ 9 $ 654,904 $ 12 $ ( 616,381 ) $ 38,544

Common Stock Additional

Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders' Equity

Six Months Ended June 30, 2024 Shares Amount

Capital Accumulated Other Comprehensive Income

Accumulated Deficit Total Stockholders' Equity

Nine Months Ended September 30, 2024 Shares Amount

Balance as of January 1, 2024

4 unchanged sentences

Issuance of common stock under employee stock purchase plan 124 — 260 — — 260

Issuance of common stock in connection with an equity sales agreement, net of issuance costs of $ 1,584

10,440 1 29,735 — — 29,736

Stock-based compensation — — 10,561 — — 10,561

Net loss — — — ( 54,900 ) ( 54,900 )

Other comprehensive loss — — — ( 23 ) — ( 23 )

Balance as of June 30, 2024

Other comprehensive income

— — — 126 — 126

Balance as of September 30, 2024

81,376 $ 8 $ 625,696 $ 126 $ ( 552,430 ) $ 73,400

See accompanying notes to the unaudited condensed consolidated financial statements.

2 unchanged sentences

(In Thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Operating activities:

6 unchanged sentences

Asset impairment and other charges — 165

Impairment of investment in non-marketable securities — 3,910

Non-cash interest expense 929 611

15 unchanged sentences

Proceeds from maturity of short-term investments 63,626 19,000

Proceeds from sale of short-term investments — 1,973

Net cash provided by (used in) investing activities 17,789 ( 54,117 )

16 unchanged sentences

Capital expenditures incurred but not yet paid $ 212 $ 249

Transfer from property and equipment to assets held for sale

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets as of June 30, 2025 and 2024 to the total of the same such amounts shown above in the unaudited condensed consolidated statements of cash flows:

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets as of September 30, 2025 and 2024 to the total of the same such amounts shown above in the unaudited condensed consolidated statements of cash flows:

September 30,

Cash and cash equivalents $ 25,351 $ 37,452

1 unchanged sentence

Total cash, cash equivalents and restricted cash $ 26,898 $ 39,028

This table excludes short-term investments of $ 39.6 million and $ 54.6 million as of June 30, 2025 and 2024, respectively.

Total cash, cash equivalents, and short-term investments as of June 30, 2025 and 2024 were $ 66.3 million and $ 73.2 million, respectively.

This table excludes short-term investments of $ 33.4 million and $ 52.8 million as of September 30, 2025 and 2024, respectively.

Total cash, cash equivalents, and short-term investments as of September 30, 2025 and 2024 were $ 58.7 million and $ 90.3 million, respectively.

See accompanying notes to the unaudited condensed consolidated financial statements.

10 unchanged sentences

The condensed consolidated balance sheet at December 31, 2024 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements.

The significant accounting policies used in preparation of the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2025 and 2024, are consistent with those discussed in Note 2 to the audited consolidated financial statements in the Company’s 2024 Annual Report on Form 10-K.

The significant accounting policies used in preparation of the unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024, are consistent with those discussed in Note 2 to the audited consolidated financial statements in the Company’s 2024 Annual Report on Form 10-K.

There have been no significant changes in our significant accounting policies or critical accounting estimates since December 31, 2024.

The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly our financial position as of June 30, 2025 and results of operations for the interim periods presented.

The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to present fairly our financial position as of September 30, 2025 and results of operations for the interim periods presented.

The interim results are not necessarily indicative of the results for any future interim period or for the entire year.

14 unchanged sentences

2023-09 will become effective in the Company’s Annual Report on Form 10-K for the year ending December 31, 2025 and we are continuing to evaluate whether adoption of this standard will have a material impact on our consolidated financial statements and related disclosures.

Aside from the recently adopted accounting pronouncement described above and recently issued accounting pronouncements not yet adopted and described below, there were no recent accounting pronouncements or changes in accounting pronouncements during the three and six months ended June 30, 2025, that are of significance or potential significance to us.

Aside from the recently adopted accounting pronouncement described above and recently issued accounting pronouncements not yet adopted and described below, there were no recent accounting pronouncements or changes in accounting pronouncements during the three and nine months ended September 30, 2025, that are of significance or potential significance to us.

Recently issued accounting pronouncements not yet adopted

2 unchanged sentences

Disaggregation of Income Statement Expenses.

The amendment in the ASU will require additional disclosures and disaggregation of certain costs and expenses presented on the face of the income statement.

The amendment in the ASU will require additional disclosures and disaggregation of certain costs and expenses presented on the face of the income statement to provide greater transparency into the nature of expense components.

In January 2025, the FASB issued ASU 2025-01, “ Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) - Clarifying the Effective Date ” to clarify the effective date for non-calendar year-end entities.

This guidance is effective for the Company for fiscal years beginning after December 15, 2026.

As clarified, this guidance is effective for public business entities for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027.

Early adoption is permitted.

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Early adoption is prohibited.

We are currently evaluating the effects of the standard on our consolidated financial statements and related disclosures.

We are currently monitoring SEC rulemaking activity and evaluating the potential effects of this standard on our consolidated financial statements and related disclosures.

Revenue Recognition

3 unchanged sentences

Disaggregated information is as follows (in thousands):

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

6 unchanged sentences

The following table presents balances of unbilled receivables, contract assets, and contract liabilities (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Unbilled receivables $ 1,997 $ 3,208

2 unchanged sentences

deferred revenue $ 396 $ 450

We had no asset impairment charges related to financial assets in the three and six months ended June 30, 2025 and 2024.

The increase in unbilled receivables was primarily due to the timing of billings.

We had no asset impairment charges related to financial assets in the three and nine months ended September 30, 2025 and 2024.

The decrease in unbilled receivables was primarily due to the timing of billings.

The decrease in contract assets was primarily due to decreases in product revenue from contracts subject to over time revenue recognition.

The decrease in deferred revenue was primarily due to the timing of recognition of revenue.

As of June 30, 2025, we have $ 3.0 million of short-term unbilled receivables presented as unbilled receivables within current assets and $ 0.3 million of long-term unbilled receivables that is included within the other non-current assets line item in the condensed consolidated balance sheets.

As of September 30, 2025, we have $ 1.6 million of short-term unbilled receivables presented as unbilled receivables within current assets and $ 0.4 million of long-term unbilled receivables that is included within the other non-current assets line item in the condensed consolidated balance sheets.

As of December 31, 2024 , we had $ 2.8 million of short-term unbilled receivables presented as unbilled receivables within current assets and $ 0.5 million of long-term unbilled receivables that is included within the other non-current assets line item in the condensed consolidated balance sheets.

We recognized the following revenues (in thousands):

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

Three Months Ended September 30, Nine Months Ended September 30,

Revenue recognized in the period for:

5 unchanged sentences

Revenue recognized on performance obligations previously completed upon the customer achieving a milestone

4,700 — 4,700 —

Performance obligations satisfied from new activities in the period - contract revenue 8,601 12,687 26,535 37,856

2 unchanged sentences

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting periods.

The estimated revenue does not include contracts with original durations of one year or less, amounts of variable consideration attributable to royalties, or contract renewals that are unexercised as of June 30, 2025.

The balances in the table below a re partially based on judgments involved in estimating future orders from customers subject to the exercise of material rights pursuant to respective contracts as of June 30, 2025 (in thousands):

Remainder of 2025

1 unchanged sentence

Product revenue $ 121 $ 100 $ — $ — $ 221

Research and development revenue 167 8 — — 175

Total revenues $ 288 $ 108 $ — $ — $ 396

N et Loss per S hare

5 unchanged sentences

The following shares were not considered in the computation of diluted net loss per share because their effect was anti-dilutive (in thousands):

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

3 unchanged sentences

Total potentially dilutive securities 13,710 13,355 13,710 13,355

( 1) Included anti-dilutive potential common shares from ESPP of 688,219 and 604,997 for the three and six months ended June 30, 2025 and 2024, respectively.

( 1) Included anti-dilutive potential common shares from ESPP of 688,219 and 604,997 for the three and nine months ended September 30, 2025 and 2024, respectively.

(2) Pertains to the warrants issued in connection with the Innovatus Loan.

8 unchanged sentences

We adjust the carrying value of non-marketable equity securities which have been remeasured during the period and recognize resulting gains or losses as a component of interest and other expense, net in the unaudited condensed consolidated statements of operations.

There was no remeasurement event for our investments in non-marketable equity securities that occurred during the three and six months ended June 30, 2025 and 2024.

We recognized no realized gains or losses during the three and six months ended June 30, 2025 and 2024.

There was no remeasurement event for our investments in non-marketable equity securities that occurred during the three and nine months ended September 30, 2025.

For the three and nine months ended September 30, 2024, we recognized an impairment charge of $ 3.9 million which is presented within interest and other expense, net in the condensed consolidated statements of operations.

This adjustment is related to the write-down of our investment in Molecular Assemblies, Inc.

(“MAI”) to its related fair value as determined based on valuation methods using the latest observed transaction price of MAI’s preferred stock securities to be issued during the fourth quarter of 2024 and adjusted for the rights and obligations of the preferred stock securities the Company holds.

There was no remeasurement event for our other investments in non-marketable equity securities that occurred during the three and nine months ended September 30, 2024.

We recognized no realized gains or losses during the three and nine months ended September 30, 2025 and 2024.

The following table presents the carrying value of our non-marketable equity securities (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

seqWell $ 2,416 $ 2,416

2 unchanged sentences

Fair Value Measurements

The following tables show the Company’s cash, cash equivalents, and short-term investments by significant investment category as of June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025

The following tables show the Company’s cash, cash equivalents, and short-term investments by significant investment category as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025

Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and Cash Equivalents Short-term Investments

22 unchanged sentences

We limit the credit risk associated with our cash equivalents and short-term investments by placing them with banks and institutions we believe are highly credit-worthy and investing in highly-rated investments.

As of June 30, 2025 and December 31, 2024, the contractual maturity of all investments held was less than one year.

During the three and six months ended June 30, 2025 and 2024, we did no t recognize any significant credit losses no r other-than-temporary impairment losses on our short-term investments.

As of September 30, 2025 and December 31, 2024, the contractual maturity of all investments held was less than one year.

During the three and nine months ended September 30, 2025 and 2024, we did no t recognize any significant credit losses no r other-than-temporary impairment losses on our short-term investments.

Balance Sheet Details

Inventories consisted of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Work in process $ 14 $ 29

2 unchanged sentences

Prepaid expenses and other current assets

As of June 30, 2025, prepaid expenses and other current assets consisted of prepaid expenses of $ 3.4 million and other current assets of $ 0.1 million.

As of September 30, 2025, prepaid expenses and other current assets consisted of prepaid expenses of $ 4.8 million and other current assets of $ 0.5 million.

As of December 31, 2024, prepaid expenses and other current assets consisted of prepaid expenses of $ 3.7 million and other current assets of $ 0.5 million.

1 unchanged sentence

Property and equipment, net consisted of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Laboratory equipment $ 38,363 $ 35,949

7 unchanged sentences

Depreciation expense included in both research and development expenses and selling, general and administrative expenses in the unaudited condensed consolidated statements of operations was as follows (in thousands):

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

4 unchanged sentences

Other accrued liabilities consisted of the following (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Accrued professional and outside service fees $ 1,598 $ 3,064

14 unchanged sentences

The first offering period of the ESPP commenced in December 2023.

For the three and six months ended June 30, 2025 and 2024, 151,490 and 123,889 shares of our common stock were purchased under the ESPP, respectively.

As of June 30, 2025, 1,585,353 shares of common stock were available for future issuance under the ESPP.

We recognized $ 0.1 million and $ 0.2 million of stock-based compensation expenses related to the ESPP for the three and six months ended June 30, 2025, respectively, and $ 0.1 million for the three and six months ended June 30, 2024.

As of June 30, 2025, the total unrecognized stock-based compensation expense, net of expected forfeitures, related to the ESPP was $ 1.0 million and is expected to be recognized over the remaining offering period.

During the three months ended September 30, 2025 and 2024, no shares of our common stock were purchased under the ESPP.

For the nine months ended September 30, 2025 and 2024, 151,490 and 123,889 shares of our common stock were purchased under the ESPP, respectively.

As of September 30, 2025, 1,585,353 shares of common stock were available for future issuance under the ESPP.

We recognized $ 0.1 million and $ 0.3 million of stock-based compensation expenses related to the ESPP for the three and nine months ended September 30, 2025, respectively, and $ 0.1 million and $ 0.2 million for the three and nine months ended September 30, 2024, respectively.

As of September 30, 2025, the total unrecognized stock-based compensation expense, net of expected forfeitures, related to the ESPP was $ 0.7 million and is expected to be recognized over the remaining offering period.

Stock-Based Compensation Expense

Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations as follows (in thousands):

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

4 unchanged sentences

The following table presents total stock-based compensation expense by security type included in the unaudited condensed consolidated statements of operations (in thousands):

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

6 unchanged sentences

On June 29, 2024, we entered into an Advisory Services Agreement with a former executive of the Company.

Pursuant to the advisory agreement, the exercise period for the former executive’s vested stock options and performance-based options was also extended.

The modification resulted in a stock-based compensation expense of $ 2.0 million recognized in selling, general and administrative expenses for the three and six months ended June 30, 2024.

As of June 30, 2025, unrecognized stock-based compensation expense, net of expected forfeitures, was $ 11.1 million related to unvested stock options, and $ 6.3 million related to unvested RSUs and RSAs.

Pursuant to the advisory agreement, which expired in August 2025, the exercise period for the former executive’s vested stock options and performance-based options was also extended.

The modification resulted in a stock-based compensation expense of $ 2.0 million recognized in selling, general and administrative expenses during the nine months ended September 30, 2024.

As of September 30, 2025, unrecognized stock-based compensation expense, net of expected forfeitures, was $ 9.7 million related to unvested stock options, and $ 4.5 million related to unvested RSUs and RSAs.

Stock-based compensation expense for these awards will be recognized through 2029.

1 unchanged sentence

Exercise of Options

For the six months ended June 30, 2025 and June 30, 2024, we issued 339,142 and 75,856 shares, respectively, upon option exercises at a weighted-average exercise price of $ 3.09 and $ 1.97 per share, respectively, with net cash proceeds of $ 1.0 million and $ 0.1 million, respectively.

For the nine months ended September 30, 2025 and 2024 , we issued 339,142 and 72,856 shares, respectively, upon option exercises at a weighted-average exercise price of $ 3.09 and $ 1.97 per share, respectively, with net cash proceeds of $ 1.0 million and $ 0.1 million, respectively.

Sales Agreements

6 unchanged sentences

On April 24, 2024, we terminated the EDA.

No shares of our common stock were issued and sold pursuant to the EDA during the three and six months ended June 30, 2024 .

No shares of our common stock were issued and sold pursuant to the EDA during the three and nine months ended September 30, 2024 .

On May 2, 2024, we entered into a Controlled Equity Offering℠ Sales Agreement (the “Cantor Sales Agreement”) with Cantor Fitzgerald & Co., as sales agent (“Cantor”), under which Cantor, at our discretion and at such times that we may determine from time to time, may sell up to a maximum of $ 75.0 million of shares of our common stock.

3 unchanged sentences

In 2024, 10,440,000 shares of our common stock were issued and sold pursuant to the Cantor Sales Agreement, all during the third quarter of 2024, and we received net proceeds of $ 29.7 million after Cantors’ commissions and direct offering expenses.

During the three and six months ended June 30, 2025, 7,244,966 shares of our common stock were issued and sold pursuant to the Cantor Sales Agreement and we received gross proceeds of $ 17.3 million, or $ 16.4 million in net proceeds after the Cantors’ commissions and direct offering expenses of $ 0.8 million.

As of June 30, 2025, $ 26.4 million remained available for sale under the Cantor Sales Agreement.

During the nine months ended September 30, 2025, 7,244,966 shares of our common stock were issued and sold pursuant to the Cantor Sales Agreement, all during the second quarter of 2025, and we received gross proceeds of $ 17.3 million, or $ 16.4 million in net proceeds after the Cantors’ commissions and direct offering expenses of $ 0.8 million.

As of September 30, 2025, $ 26.4 million remained available for sale under the Cantor Sales Agreement.

Commitments and Contingencies

2 unchanged sentences

Lease cost amounts included in the measurement of lease obligations and other information related to non-cancellable operating leases were as follows (in thousands):

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

6 unchanged sentences

Weighted-average discount rate 7.0 %

Six Months Ended June 30,

Nine Months Ended September 30,

Cash paid (in thousands):

Operating cash flows from operating leases $ 3,648 $ 3,542

As of June 30, 2025, our maturity analysis of annual undiscounted cash flows of the non-cancellable operating leases are as follows (in thousands):

As of September 30, 2025, our maturity analysis of annual undiscounted cash flows of the non-cancellable operating leases are as follows (in thousands):

Years Ending December 31, Operating Leases

8 unchanged sentences

Total operating lease liabilities $ 28,892

Other Commitments

We enter into supply and service arrangements in the normal course of business.

Supply arrangements are primarily for fixed-price manufacture and supply.

Service agreements are primarily for the development of manufacturing processes and certain studies.

Commitments under service agreements are subject to cancellation at our discretion which may require payment of certain cancellation fees.

The timing of completion of service arrangements is subject to variability in estimates of the time required to complete the work.

As of June 30, 2025, the future minimum payments that we expect to pay, including potential obligations under services agreements subject to risk of cancellation by us, is nil.

Legal Proceedings

27 unchanged sentences

The discount and issuance costs will be amortized over the life of the Innovatus Loan.

Interest expense for the Innovatus Loan for the three and six months ended June 30, 2025 was $ 1.0 million and $ 1.9 million, respectively, and for the three and six months ended June 30, 2024 was $ 1.0 million and $ 1.5 million, respectively.

Interest expense for the Innovatus Loan for the three and nine months ended September 30, 2025 was $ 1.3 million and $ 3.2 million, respectively, and for the three and nine months ended September 30, 2024 was $ 1.0 million and $ 2.5 million, respectively.

This is inclusive of non-cash amortization of the debt discount, debt issuance costs, payable in-kind interest, and accretion of final payment.

The carrying amount of the Innovatus Loan approximates fair value given the interest rate is based on the current prime rate.

The effective interest rate for the Innovatus Loan was 12.7 % as of June 30, 2025 .

The effective interest rate for the Innovatus Loan was 12.7 % as of September 30, 2025 .

Additionally, in connection with entering into the Innovatus Loan, we entered into a Warrant Agreement with Innovatus on February 13, 2024 and issued to Innovatus a warrant to purchase an aggregate of 424,028 shares of the Company’s common stock at an exercise price of $ 2.83 per share.

3 unchanged sentences

The Company accounts for the amortization of the debt discount and issuance costs utilizing the effective interest method.

Long-term debt consisted of the following at June 30, 2025 (in thousands):

June 30, 2025

Long-term debt consisted of the following at September 30, 2025 (in thousands):

September 30, 2025

Face value of debt $ 40,000

1 unchanged sentence

amortized exit fee 270

unamortized debt issuance cost ( 1,129 )

unamortized debt discount

unamortized debt issuance cost

Total long-term debt $ 39,729

4 unchanged sentences

uncapitalized payment in-kind interest ( 1,179 )

unamortized debt issuance cost ( 1,129 )

unamortized debt discount

unamortized debt issuance cost

Total long-term debt $ 39,729

8 unchanged sentences

Percentage of Total Revenues for the

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

2 unchanged sentences

14 % * 10 % *

40 % 17 % 11 % 10 %

* Percentage was less than 10%

1 unchanged sentence

Percentage of Accounts Receivables as of

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

* Percentage was less than 10%

Identifiable long-lived assets by location was as follows (in thousands):

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

United States $ 40,622 $ 43,098

Subsequent Events

In October 2025, we entered into an enzyme supply assurance agreement with Merck Sharp & Dohme LLC (“Merck”) for enzymes used by Merck for pharmaceutical manufacturing.

Pursuant to the terms of the agreement, we are entitled to receive a one-time non-refundable and non-creditable payment of $ 37.8 million, which is expected to be received during the fourth quarter of 2025.

On November 6, 2025, in alignment with our enhanced strategic focus, we publicly announced that we are implementing a workforce reduction of approximately 24 %.

This measure was implemented in support of the Company’s organizational streamlining to focus on our ECO Synthesis platform.

We expect that the payment of post-employment benefits to impacted employees, as well as the payment of other expenses such as related tax costs, will result in the recognition of an additional expense of approximately $ 3.5 million.

We anticipate this expense will be recognized in the fourth quarter of 2025 and paid primarily during the same period.

We expect the workforce reduction to be substantially completed by January 2026.

These charges that we expect to incur are subject to a number of assumptions, including legal requirements in applicable jurisdictions, and actual expenses may differ materially from the estimates disclosed above.

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