What changed in this filing

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Item 1. Financial Statements

2025-08-11 compared with 2025-05-08 · 142 added, 101 removed, 362 unchanged (40% of the section changed)

4 unchanged sentences

(In thousands, except par value)

2025 (unaudited)

2024 (Note 1)

Current assets:

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300,000 shares authorized;

138,282 and 137,820 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively

138,282 and 137,820 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

Additional paid-in-capital

9 unchanged sentences

Three Months Ended

Six Months Ended

Licensing revenue

Operating expenses:

3 unchanged sentences

Loss from operations

Loss before income tax expense

Income tax expense

Net loss per share - basic and diluted

1 unchanged sentence

Other comprehensive loss:

Unrealized loss on marketable securities

Unrealized gain (loss) on marketable securities

Comprehensive loss

12 unchanged sentences

Balance at March 31, 2025

Stock-based compensation

Unrealized loss on marketable securities

Balance at June 30, 2025

Balance at December 31, 2023

Common shares issued, net of issuance costs of $ 0.5 million

Common shares issued, net of costs of $ 0.5 million

Share-based awards, net of tax remittance

2 unchanged sentences

Balance at March 31, 2024

Stock-based compensation

Unrealized loss on marketable securities

Balance at June 30, 2024

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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(In thousands)

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

Cash flows from operating activities:

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Proceeds from sale or maturities of marketable securities

Net cash provided by (used in) investing activities

Net cash provided by investing activities

Cash flows from financing activities:

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Taxes paid related to net shares settlement of RSUs

Net cash provided by (used in) financing activities

Net change in cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash at beginning of period

Cash and cash equivalents and restricted cash at end of period

Net cash (used in) provided by financing activities

Net change in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

Cash, cash equivalents and restricted cash at end of period

Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets

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Our pipeline includes novel product candidates that leverage our understanding of the tumor microenvironment, including both angiogenesis-targeted agents and immune-oncology focused agents.

These product candidates are designed to optimize critical components required for an effective anti-tumor response to cancer.

These include modulation of the microvasculature via angiogenesis-targeted agents;

These product candidates are designed to optimize critical biological pathways required for an effective anti-tumor response to cancer.

These pathways include modulation of the microvasculature via angiogenesis-targeted agents;

induction of a potent immune response via activators on effector cells in the tumor microenvironment;

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In addition, the Company is dependent upon the services of its employees and consultants.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s consolidated financial position as of March 31, 2025 and its consolidated results of operations, comprehensive loss, changes in stockholders’ equity and cash flows for the three months ended March 31, 2025 and 2024.

Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all normal and recurring adjustments (which consist primarily of accruals, estimates and assumptions that impact the financial statements) considered necessary to present fairly the Company’s consolidated financial position as of June 30, 2025 and its consolidated results of operations, comprehensive loss and changes in stockholders’ equity for the three and six months ended June 30, 2025 and 2024 and cash flows for the six months ended June 30, 2025 and 2024.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

The unaudited condensed consolidated financial statements include the accounts of Compass Therapeutics, Inc.

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We have funded our operations with proceeds from the sale of our equity securities and borrowing from debt arrangements.

Through March 31, 2025, we have received $ 430 million in gross proceeds from the sale of equity securities.

As of March 31, 2025, we had cash, cash equivalents and marketable securities of $ 113 million.

Based on our research and development plans, we expect that such cash resources will enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2027.

Through June 30, 2025, we have received $ 430 million in gross proceeds from the sale of equity securities.

As of June 30, 2025, we had cash, cash equivalents and marketable securities of $ 101 million.

Based on our research and development plans, we expect that such cash resources will enable us to fund our operating expenses and capital expenditure requirements into 2027.

Summary of Significant Accounting Policies

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The following tables represent the Company’s financial assets that are measured at fair value on a recurring basis and indicate the level of the fair value hierarchy utilized to determine such fair values (in thousands):

Fair Value Measurements as of March 31, 2025 (000's):

Fair Value Measurements as of June 30, 2025 (000's):

Quoted Prices in

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The following tables summarize marketable securities held (in thousands):

Fair Value Measurements as of March 31, 2025 Using:

Fair Value Measurements as of June 30, 2025 Using:

Amortized Cost

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Asset-backed securities

March 31, 2025

June 30, 2025

December 31, 2024

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Property and equipment, net

Depreciation and amortization expense for each of the three months ended March 31, 2025 and 2024 was $ 0.1 million and $ 0.2 million respectively.

Depreciation and amortization expense for each of the six months ended June 30, 2025 and 2024 was $ 0.2 million and $ 0.3 million respectively.

Accrued Expenses

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Total accrued expenses

Project expenses includes $ 10.4 million of accrued manufacturing expenses and $ 1.0 million of accrued clinical expenses primarily related to tovecimig.

The increase in project expenses is primarily from $ 8.2 million of accrued manufacturing expenses, including $ 3.6 million of minimum contractual obligations related to CTX-10726.

Commitments and Contingencies

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The modified terms extended the non-cancelable lease term through May 2031.

The modified terms also included the right to use an additional 10,724 square feet that is expected to commence and be available for the Company’s use in May 2025.

The modified terms also included the right to use an additional 10,724 square feet that became available for the Company’s use in May 2025.

The classification and incremental borrowing rate for the lease did not change as a result of this lease modification.

Right-of-use assets obtained in exchange for new operating lease liabilities due to the lease modification were $ 6.1 million for a total right-of-use assets as of March 31, 2025 of $ 6.5 million.

The remaining lease term of the Facility lease is 5.6 years as of March 31, 2025.

Right-of-use assets obtained in exchange for new operating lease liabilities due to the lease modification were $ 9.9 million for a total right-of-use assets as of June 30, 2025 of $ 9.8 million.

The remaining lease term of the Facility lease is 4.9 years as of June 30, 2025.

The Company has $ 568 thousand of restricted cash associated with an irrevocable letter of credit required by the landlord to enter into this lease.

Lease costs related to the Facility were $ 0.3 million for the three months ending March 31, 2025 and 2024.

Cash payments related to the Facility were $ 0.3 million for the three months ending March 31, 2025 and 2024.

Lease costs related to the Facility were $ 0.4 million and $ 0.3 million for the three months ending June 30, 2025 and 2024, respectively and $ 0.8 million and $ 0.6 million for the six months ending June 30, 2025 and 2024, respectively.

Cash payments related to the Facility were $ 0.2 million and $ 0.3 million for the three months ending June 30, 2025 and 2024, respectively and $ 0.5 million and $ 0.7 million for the six months ending June 30, 2025 and 2024, respectively.

The table below presents the undiscounted cash flows for the lease term.

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The Company matches employee contributions to the plan up to 6 % of salary.

The Company made matching contributions of $ 0.1 million for each of the three months ended March 31, 2025 and 2024.

The Company made matching contributions of $ 0.1 million for each of the three months ended June 30, 2025 and 2024.

The Company made matching contributions of $ 0.2 million for each of the six months ended June 30, 2025 and 2024.

Stock-Based Compensation

Stock-based compensation expense for the three months ended March 31, 2025 and 2024 was classified in the condensed consolidated statement of operations as follows (in thousands):

Three Months Ended March 31,

Stock-based compensation expense for the three and six months ended June 30, 2025 and 2024 was classified in the condensed consolidated statement of operations as follows (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Research and development

General and administrative

As of March 31, 2025, the remaining unrecognized stock-based compensation cost from all plans to be recognized in future periods totaled $ 27.6 million.

As of June 30, 2025, the remaining unrecognized stock-based compensation cost from all plans to be recognized in future periods totaled $ 24.8 million.

In June 2020, the Company’s board of directors adopted the 2020 Stock Option and Incentive Plan (the “2020 Plan”) and reserved 2.9 million shares of common stock for issuance under this plan.

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The increase on January 1, 2025 was 5.5 million shares.

As of March 31, 2025, 1.9 million shares remain available for grant.

As of June 30, 2025, 1.9 million shares remain available for grant.

The 2020 Plan authorizes the board of directors or a committee of the board to grant incentive stock options, nonqualified stock options, restricted stock awards and restricted stock units ("RSUs") to eligible officers, employees, consultants and directors of the Company.

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Forfeited/canceled

Outstanding at March 31, 2025

Vested at March 31, 2025

For the three months ended March 31, 2025, the weighted average grant date fair value for options granted was $ 2.68 .

The intrinsic value for options vested as of March 31, 2025, was $ 0.4 million.

As of March 31, 2025, the total unrecognized compensation cost related to outstanding options was $ 21.5 million, to be recognized over a weighted average period of 1.6 years.

For the three months ended March 31, 2024, the weighted average grant date fair value for options granted was $ 1.30 .

The intrinsic value for options vested as of March 31, 2024 was $ 0.6 million.

The weighted average assumptions used in the Black-Scholes pricing model to determine the fair value of stock options granted during the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

Outstanding at June 30, 2025

Vested at June 30, 2025

For the six months ended June 30, 2025, the weighted average grant date fair value for options granted was $ 2.68 .

The intrinsic value for options vested as of June 30, 2025, was $ 2.1 million.

As of June 30, 2025, the total unrecognized compensation cost related to outstanding options was $ 19.5 million, to be recognized over a weighted average period of 1.5 years.

For the six months ended June 30, 2024, the weighted average grant date fair value for options granted was $ 1.82 .

The options had no intrinsic value as of June 30, 2024.

As of June 30, 2024, the total unrecognized compensation cost related to outstanding options was $ 11.4 million, to be recognized over a weighted average period of 1.5 years.

The weighted average assumptions used in the Black-Scholes pricing model to determine the fair value of stock options granted during the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended June 30,

Expected term (in years)

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Forfeited or canceled

Unvested, March 31, 2025

Unvested, June 30, 2025

The weighted average price per share is the weighted grant price based on the closing market price of each of the stock grants.

The weighted average fair value is the weighted average share price times the number of shares.

As of March 31, 2025, the remaining unrecognized compensation cost related to RSUs to be recognized in future periods totaled $ 6.2 million, which is expected to be recognized over a weighted average period of 1.7 years.

As of June 30, 2025, the remaining unrecognized compensation cost related to RSUs to be recognized in future periods totaled $ 5.3 million, which is expected to be recognized over a weighted average period of 1.4 years.

Related Parties and Related-Party Transactions

There were no material related party transactions during the three months ended March 31, 2025 and 2024.

Other income consists exclusively of interest income of $ 1.3 million and $ 2.0 million for the three months ended March 31, 2025 and 2024, respectively.

There were no material related party transactions during the six months ended June 30, 2025 and 2024.

Other income consists exclusively of interest income of $ 1.2 million and $ 2.0 million for the three months ended June 30, 2025 and 2024, respectively.

Interest income was $ 2.5 million and $ 4.0 million for the six months ended June 30, 2025 and 2024, respectively.

License, Research and Collaboration Agreements

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The agreement includes provisions for payment of royalties at rates ranging in the single digits as a percentage of future net sales within a specified term from the first commercial sale for certain antibodies, including our product candidate, CTX-471.

There were no milestone payments made during the first quarter of 2025.

As of March 31, 2025, future potential milestone payments in connection with this agreement amounted to $ 2.0 million.

There were no milestone payments made during the first six months of 2025.

As of June 30, 2025, future potential milestone payments in connection with this agreement amounted to $ 2.0 million.

Segment Information

Segment reporting is prepared on the same basis that our chief executive officer, who is our CODM, manages the business, makes operating decisions and assesses performance.

Segment reporting is prepared on the same basis that our chief executive officer, who is our Chief Operating Decision Maker (CODM), manages the business, makes operating decisions and assesses performance.

The Company operates in one segment.

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Research and development expenses are summarized by program in the table below:

Three-Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Licensing revenue

Research and development

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The following discussion of the financial condition and results of operations of Compass Therapeutics, Inc.

should be read in conjunction with the financial statements and the notes to those statements included in this Quarterly Report on Form 10-Q for the three months ended March 31, 2025.

should be read in conjunction with the financial statements and the notes to those statements included in this Quarterly Report on Form 10-Q for the three and six months ended June 30, 2025.

Some of the information contained in this discussion and analysis, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risk, uncertainties and assumptions.

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Our pipeline of novel product candidates is designed to target multiple critical biological pathways required for an effective anti-tumor response.

These include modulation of the microvasculature via angiogenesis-targeted agents, induction of a potent immune response via activators on effector cells in the tumor microenvironment, and alleviation of immunosuppressive mechanisms used by tumors to evade immune surveillance.

These pathways include modulation of the microvasculature via angiogenesis-targeted agents, induction of a potent immune response via activators on effector cells in the tumor microenvironment, and alleviation of immunosuppressive mechanisms used by tumors to evade immune surveillance.

We plan to advance our product candidates through clinical development as both standalone therapies and in combination with proprietary pipeline antibodies based on supportive clinical and nonclinical data.

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Recent Developments

Tovecimig Meets Primary Endpoint in Phase 2/3 Study in the Second Line Setting for Patients with BTC

On April 1, 2025, we announced that tovecimig in combination with paclitaxel achieved a 17.1% overall response rate (“ORR”), including one complete response, compared to a 5.3% ORR for paclitaxel alone, in patients with biliary tract cancer (“BTC”) treated in the second-line setting.

The difference in ORR between the two treatment arms, the primary endpoint of the study, was statistically significant (p=0.031), and all responses were assessed by blinded independent central radiology (BICR) review.

Tovecimig (DLL4 x VEGF-A bispecific) Phase 2/3 study in patients with BTC shows decreasing rate of OS events

In the ongoing Phase 2/3 study of tovecimig in patients with advanced biliary tract cancer, fewer deaths have been observed than originally modeled, which we believe may suggest that tovecimig could be affecting overall survival (“OS”) in the patient population.

The pre-specified number of pooled OS events (80%) required to trigger the analyses of the secondary endpoints, including OS and progression-free survival (PFS), has not yet been met and the Company now expects these analyses to occur in Q1 2026.

We previously announced in April 2025 that the study met its primary endpoint, with tovecimig in combination with paclitaxel achieving a 17.1% overall response rate (“ORR”), including one complete response and three additional patients with 100% reduction in target tumor burden, compared to a 5.3% ORR for paclitaxel alone (p=0.031).

The study also showed differences between treatment arms for other efficacy measures, including progressive disease (“PD”) rates of 16.2% in patients on tovecimig in combination with paclitaxel versus 42.1% in patients on paclitaxel alone.

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An independent Data Monitoring Committee (DMC) reviewed safety data at four separate (pre-specified) DMC meetings and, after each meeting, recommended continuation of the study without modification.

The pre-specified number of events required to trigger the analyses of the secondary endpoints, including progression free survival (“PFS”), overall survival (“OS”) and duration of response (“DoR”), have not yet been met and we expect to report these endpoints in the fourth quarter of 2025.

First Patient Dosed in IST of Tovecimig in the First-Line Setting for Patients with BTC

On April 21, 2025, we announced that the first patient had been dosed in an Investigator Sponsored Trial (“IST”) to evaluate tovecimig for the first time in the front-line setting for patients with BTC.

The IST is being conducted at The University of Texas MD Anderson Cancer Center.

Tovecimig is being added to a standard first-line regimen of gemcitabine, cisplatin, and durvalumab in an estimated 50 patients with unresectable or metastatic BTC.

The study will have a standard safety run-in phase in 12 patients followed by an expansion phase in which 38 additional patients will be treated.

The primary objectives in the study are to assess 6-month progression-free survival, to assess the tolerability and safety of this combination, and to determine the maximum tolerated dose of tovecimig in this combination.

Secondary objectives include ORR, DoR, PFS and OS.

For more information on the IST, please see study identifier:

NCT06548412 on www.clinicaltrials.gov.

CTX-8371 (PD-1 x PD-L1 bispecific) Phase 1 data supports cohort expansion in patients with NSCLC and triple negative breast cancer

We are planning to initiate cohort expansions in patients with non-small cell lung cancer (“NSCLC”) and triple-negative breast cancer.

This cohort expansion is based on two deep responses observed in the CTX-8371 Phase 1 dose-escalation study, with one of five patients with NSCLC achieving complete resolution of all measurable target tumor lesions, and one of three patients with TNBC achieving over 90% reduction in target tumor lesions.

We expect to initiate this part of the study in the fourth quarter of 2025, with data reported in 2026.

We are currently enrolling the fifth and final dose level in the dose-escalation study with no dose-limiting toxicities observed to date.

Detailed results are expected to be presented at a medical meeting in the fourth quarter of 2025.

CTX-10726 (PD-1 x VEGF-A bispecific) demonstrates superiority to ivonescimab in preclinical studies

CTX-10726 demonstrated superiority in both PD-1 potency and anti-tumor response compared to ivonescimab in mouse models compared to ivonescimab.

We plan to submit an IND for CTX-10726 in the fourth quarter of 2025 and expect to announce clinical data in 2026.

CTX-10726 was discovered in-house and utilizes the VEGF-A component from tovecimig and the PD-1 component of CTX-8371, which are both currently in clinical trials.

By using existing components, we have been able to leverage our current expertise with CMC processes, creating manufacturing yields at commercial scale early in the process.

OPERATING ACTIVITIES

We have funded our operations primarily with proceeds from the sale of our equity securities.

Through March 31, 2025, we have received $430 million in gross proceeds from the sale of equity securities.

Through June 30, 2025, we have received $430 million in gross proceeds from the sale of equity securities.

We have incurred significant operating losses since inception and have not generated any revenue from the sale of products and we do not expect to generate any revenue from the sale of products in the near future, if at all.

Our ability to generate product revenue sufficient to achieve profitability will depend heavily on the successful development and eventual commercialization of our treatments and any future product candidates.

Our net losses were $16.6 million and $10.8 million for the three months ended March 31, 2025 and 2024, respectively.

We had an accumulated deficit of $381.3 million on March 31, 2025.

Our net losses were $19.9 million and $13.1 million for the three months ended June 30, 2025 and 2024, respectively.

Our net losses were $36.5 million and $23.9 million for the six months ended June 30, 2025 and 2024, respectively.

We had an accumulated deficit of $401.2 million on June 30, 2025.

We expect to continue to incur significant expenses for at least the next several years as we advance through clinical development, develop additional product candidates and seek regulatory approval of any product candidates that complete clinical development.

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Until such time as we can generate significant revenue from product sales, if ever, we expect to finance our operations through equity and debt financings, or other capital sources, which may include collaborations with other companies or other strategic transactions.

As of March 31, 2025, we had $113 million in cash, cash equivalents and marketable securities.

We expect that such cash resources will enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2027.

As of June 30, 2025, we had $101 million in cash, cash equivalents and marketable securities.

We expect that such cash resources will enable us to fund our operating expenses and capital expenditure requirements into 2027.

We may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms, or at all.

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employee-related expenses including salaries, related benefits and equity-based compensation expense for employees engaged in research and development functions;

other research and development expenses including pre-clinical study costs and expenses incurred under agreements with organizations that support our platform program development;

other research and development expenses including preclinical study costs and expenses incurred under agreements with organizations that support our platform program development;

costs related to compliance with quality and regulatory requirements;

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General and administrative expenses consist primarily of salaries and related costs for personnel in executive, finance, business development and administrative functions.

General and administrative expenses also include legal fees relating to patent and corporate matters, professional fees for accounting, auditing, tax, insurance, administrative travel expenses and other operating costs.

We anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support our business operations.

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Results of Operations

Comparison of the Three months ended March 31, 2025 and 2024

The following table summarizes our results of operations for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31,

Comparison of the Three Months Ended June 30, 2025 and 2024

The following table summarizes our results of operations for the three months ended June 30, 2025 and 2024 (in thousands):

Three Months Ended June 30,

Licensing Revenue

Operating expenses:

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Loss from operations

Loss before income tax expense

Income tax expense

Licensing Revenue

There was no licensing revenue for the three months ended June 30, 2025.

Licensing revenue was $850 thousand for the three months ended June 30, 2024.

The licensing revenue consisted of a $1 million milestone payment from Elpiscience for completing a Phase 1 trial in China.

This license revenue is reported net of a 15% sublicense royalty due ABL Bio (see footnote 11 of the financial statements in this Quarterly Report on Form 10-Q for further information on this sublicense agreement).

Research and Development Expenses

Research and development expenses increased by $3.5 million, or 37%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

The increase primarily came from $2.0 million more in manufacturing expenses related to tovecimig and $1.3 million related to our new program CTX-10726.

Research and development expenses increased by $5.2 million, or 47%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Manufacturing expenses increased $5.7 million, primarily related to tovecimig and CTX-10726.

We track outsourced development, personnel costs and other research and development costs of specific programs.

Research and development expenses are summarized by program in the table below (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Unallocated research and development expenses

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General and Administrative Expenses

General and administrative expenses increased by $1.7 million or 51% for the three months ended March 31, 2025 as compared to the same period in 2024.

The increase was primarily from $1.0 more of stock compensation expense and higher bonus expense.

Other income decreased by $0.7 million or 33% for the three months ended March 31, 2025 as compared to the same period in 2024.

Other income consisted exclusively of interest income.

Income Tax Expense

During the three months ended March 31, 2025 and 2024, we recognized no income tax expense.

General and administrative expenses were $4.7 million for the three months ended June 30, 2025 and 2024.

Other income decreased by $0.8 million or 40% for the three months ended June 30, 2025 as compared to the same period in 2024.

Other income consisted exclusively of interest income, which decreased based on a lower cash and marketable securities balance.

Comparison of the Six Months Ended June 30, 2025 and 2024

The following table summarizes our results of operations for the six months ended June 30, 2025 and 2024 (in thousands):

Six Months Ended June 30,

Licensing Revenue

Operating expenses:

Research and development

General and administrative

Total operating expenses

Loss from operations

Licensing Revenue

There was no licensing revenue for the six months ended June 30, 2025.

Licensing revenue was $850 thousand for the six months ended June 30, 2024.

The licensing revenue consisted of a $1 million milestone payment from Elpiscience for completing a Phase 1 trial in China.

Research and Development Expenses

Research and development expenses increased by $8.8 million, or 42%, for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Manufacturing expenses increased $8.2 million, primarily related to tovecimig and CTX-10726.

We track outsourced development, personnel costs and other research and development costs of specific programs.

Research and development expenses are summarized by program in the table below (in thousands):

Six Months Ended June 30,

Unallocated research and development expenses

Total research and development expenses

General and Administrative Expenses

General and administrative expenses increased $1.6 million, or 20% for the six months ended June 30, 2025 as compared to the same period in 2024.

This increase primarily came from an increase of $1.6 million of share-based compensation expense.

Other income decreased by $1.4 million or 36% for the six months ended June 30, 2025 as compared to the same period in 2024.

Other income consisted exclusively of interest income which decreased based on a lower cash and marketable securities balance.

Liquidity and Capital Resources

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We have funded our operations primarily with proceeds from the sale of our equity securities.

Through March 31, 2025, we have received $430 million in gross proceeds from the sale of equity securities.

As of March 31, 2025, we had cash, cash equivalents and marketable securities of $113 million.

Through June 30, 2025, we have received $430 million in gross proceeds from the sale of equity securities.

As of June 30, 2025, we had cash, cash equivalents and marketable securities of $101 million.

The following table shows a summary of our cash flows for the periods indicated (in thousands):

Three Months Ended March 31,

Six Months Ended June 30,

Cash used in operating activities

Cash provided by (used in) investing activities

Cash provided by investing activities

Cash provided by (used in) financing activities

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Operating Activities

During the three months ended March 31, 2025, we used $13.2 million of cash in operating activities, resulting from our net loss of $16.6 million partially offset by the change in operating assets and liabilities of $0.5 million and non-cash charges of $2.9 million (primarily from share-based compensation expense of $2.5 million).

During the three months ended March 31, 2024, we used $13.9 million of cash in operating activities, resulting from our net loss of $10.8 million plus the change in operating assets and liabilities of $5.2 million, partially offset by non-cash charges of $2.1 million (primarily from share-based compensation expense of $2.0 million).

During the six months ended June 30, 2025, we used $25.0 million of cash in operating activities, resulting from our net loss of $36.5 million partially offset by the change in operating assets and liabilities of $5.5 million and non-cash charges of $5.9 million (primarily from share-based compensation expense of $5.3 million).

During the six months ended June 30, 2024, we used $24.6 million of cash in operating activities, resulting from our net loss of $23.9 million minus the change in operating assets and liabilities of $4.7 million, partially offset by non-cash charges of $3.9 million (primarily from share-based compensation expense of $4.1 million).

Investing Activities

During the three months ended March 31, 2025, $11.6 million of cash was provided by investing activities related to the net sale of marketable securities.

During the three months ended March 31, 2024, $4.1 million of cash was used in investing activities related to the net sale of marketable securities.

During the six months ended June 30, 2025, $5.2 million of cash was provided by investing activities related to the net sale of marketable securities.

During the six months ended June 30, 2024, $2.4 million of cash was provided by investing activities, related to the net sale of marketable securities.

Financing Activities

During the three months ended March 31, 2025, $0.8 million of cash was used in financing activities due to taxes paid by the company for settlement of RSU shares.

During the three months ended March 31, 2024, $17.4 million of cash was provided by financing activities.

During the six months ended June 30, 2025, $0.8 million of cash was used in financing activities due to taxes paid by the company for settlement of RSU shares.

During the six months ended June 30, 2024, $17.4 million of cash was provided by financing activities.

This primarily included $17.6 million of net cash from sale of common stock under an ATM Agreement, after issuance costs.

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the cost of establishing sales, marketing and distribution capabilities for any product candidates for which we may receive regulatory approval and that we determine to commercialize.

We believe that our existing cash, cash equivalents and marketable securities as of filing of this Quarterly Report on Form 10-Q will enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2027.

We have based this estimate on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect.

Our current plans, which may change based on clinical or pre-clinical results, include studies for tovecimig, CTX-471, and CTX-8371 and IND enabling studies for CTX-10726.

Our current plans, which may change based on clinical or preclinical results, include studies for tovecimig, CTX-471, and CTX-8371 and IND enabling studies for CTX-10726.

We expect that we will require additional funding to complete the clinical development of these programs including the payment of developmental milestones, commercializing our product candidates, if we receive regulatory approval, and pursuing in-licenses or acquisitions of other product candidates.

8 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