What changed in this filing

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Item 1. Financial Statements

2025-11-05 compared with 2025-08-11 · 139 added, 146 removed, 358 unchanged (44% of the section changed)

4 unchanged sentences

(In thousands, except par value)

September 30,

Current assets:

18 unchanged sentences

300,000 shares authorized;

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

177,572 and 137,820 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively

Additional paid-in-capital

9 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Licensing revenue

4 unchanged sentences

Loss from operations

Interest income

Net loss per share - basic and diluted

1 unchanged sentence

Other comprehensive loss:

Unrealized gain (loss) on marketable securities

Unrealized gain on marketable securities

Comprehensive loss

8 unchanged sentences

Balance at December 31, 2024

Share-based awards, net of tax remittance

Stock-based awards, net of tax remittance

Stock-based compensation

4 unchanged sentences

Balance at June 30, 2025

Common stock and warrants issued, net of costs of $ 8.6 million

Stock-based compensation

Unrealized loss on marketable securities

Balance at September 30, 2025

Balance at December 31, 2023

Common shares issued, net of costs of $ 0.5 million

Share-based awards, net of tax remittance

Common stock issued, net of costs of $ 0.5 million

Stock-based awards, net of tax remittance

Stock-based compensation

4 unchanged sentences

Balance at June 30, 2024

Stock-based compensation

Unrealized gain on marketable securities

Balance at September 30, 2024

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

3 unchanged sentences

(In thousands)

For the Six Months

Ended June 30,

For the Nine Months

Ended September 30,

Cash flows from operating activities:

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Proceeds from sale or maturities of marketable securities

Net cash provided by investing activities

Net cash (used in) provided by investing activities

Cash flows from financing activities:

Proceeds from issuance of common stock

Proceeds from issuance of common stock and warrants

Issuance costs from issuance of common stock

Taxes paid related to net shares settlement of RSUs

Net cash (used in) provided by financing activities

Net cash provided by financing activities

Net change in cash, cash equivalents and restricted cash

6 unchanged sentences

Supplemental disclosure of cash flow information

Unrealized loss on marketable securities

Unrealized gain (loss) on marketable securities

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

5 unchanged sentences

(“Compass” or the “Company”) is a clinical-stage, oncology-focused biopharmaceutical company developing proprietary antibody-based therapeutics to treat multiple human diseases.

Our scientific focus is on the relationship between angiogenesis and the immune system.

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

The Company’s scientific focus is on the relationship between angiogenesis and the immune system.

The 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 biological pathways required for an effective anti-tumor response to cancer.

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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 our proprietary drug candidates as long as their continued development is supported by clinical and nonclinical data.

References to Compass or the Company herein include Compass Therapeutics, Inc.

and its wholly owned subsidiaries.

The Company plans to advance its product candidates through clinical development as both standalone therapies and in combination with its proprietary drug candidates as long as their continued development is supported by clinical and nonclinical data.

The Company is subject to risks and uncertainties common to companies in the biotechnology and pharmaceutical industries.

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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 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.

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 September 30, 2025 and its consolidated results of operations, comprehensive loss and changes in stockholders’ equity for the three and nine months ended September 30, 2025 and 2024 and cash flows for the nine months ended September 30, 2025 and 2024.

Operating results for the three and nine months ended September 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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Accordingly, these condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “Annual Report”).

Since our inception, we have devoted substantially all of our efforts to organizing and staffing our Company, business planning, raising capital, research and development activities, building our intellectual property portfolio and providing general and administrative support for these operations.

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

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.

Since inception, the Company has devoted substantially all of its efforts to organizing and staffing, business planning, raising capital, research and development activities, building its intellectual property portfolio and providing general and administrative support for these operations.

The Company has funded its operations with proceeds from the sale of equity securities and borrowing from debt arrangements.

Through September 30, 2025, the Company has received $ 568 million in gross proceeds from the sale of equity securities.

As of September 30, 2025, we had cash, cash equivalents and marketable securities of $ 220 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 2028.

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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 June 30, 2025 (000's):

September 30, 2025:

Quoted Prices in

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Money market funds (cash equivalents)

Fair Value Measurements as of December 31, 2024 (000's):

December 31, 2024:

Quoted Prices in

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Marketable Securities

The objectives of the Company’s investment policy are to ensure the safety and preservation of invested funds, as well as to maintain liquidity sufficient to meet cash flow requirements.

The Company invests its excess cash in securities issued by financial institutions, commercial companies, and government agencies that management believes to be of high credit quality in order to limit the amount of its credit exposure.

The Company has not realized any net losses from its investments.

Unrealized gains and losses on investments that are available for sale are recognized in accumulated other comprehensive (loss) income, unless an unrealized loss is considered to be other than temporary, in which case the unrealized loss is charged to operations.

The Company periodically reviews its investments for other than temporary declines in fair value below cost basis and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

The Company believes the individual unrealized losses represent temporary declines primarily resulting from interest rate changes.

Realized gains and losses are included in other income in the condensed consolidated statements of operations and comprehensive loss and are determined using the specific identification method with transactions recorded on a trade date basis.

The Company classifies marketable securities that are available for use in current operations as current assets on the condensed consolidated balance sheet.

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

Fair Value Measurements as of June 30, 2025 Using:

September 30, 2025:

Amortized Cost

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Asset-backed securities

Fair Value Measurements as of December 31, 2024 Using:

December 31, 2024:

Amortized Cost

6 unchanged sentences

Asset-backed securities

June 30, 2025

September 30, 2025

December 31, 2024

3 unchanged sentences

Property and equipment consist of the following (in thousands):

September 30,

Leasehold improvements

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Property and equipment, net

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.

Depreciation and amortization expense for each of the nine months ended September 30, 2025 and 2024 was $ 0.3 million and $ 0.5 million respectively.

Accrued Expenses

Accrued expenses consist of the following (in thousands):

September 30,

Project expenses

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Total accrued expenses

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

The Company has evaluated its leases under ASC 842, Leases , and determined that it has one lease that is classified as an operating lease.

The classification of this lease is consistent with the Company’s determination under the previous accounting standard.

When available, the Company will use the rate implicit in the lease to discount lease payments to present value;

however, the Company’s current lease does not provide an implicit rate.

Therefore, the Company used its incremental borrowing rate of 6.25 % to discount the lease payments based on the date of the lease commencement.

The Company has one operating lease for its corporate office and laboratory facility (“Facility”) that was signed in December 2020.

The Company moved into the Facility in January 2021.

The Facility lease has an initial term of four years and five months, beginning on January 1, 2021.

The terms of the Facility lease were modified effective September 27, 2024 through the execution of a new lease.

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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 $ 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.

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 September 30, 2025 of $ 9.8 million.

The remaining lease term of the Facility lease is 5.7 years as of September 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 $ 0.4 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.

Lease costs related to the Facility were $ 0.5 million and $ 0.3 million for the three months ending September 30, 2025 and 2024, respectively and $ 1.3 million and $ 1.0 million for the nine months ending September 30, 2025 and 2024, respectively.

Cash payments related to the Facility were $ 0.2 million and $ 0.3 million for the three months ending September 30, 2025 and 2024, respectively and $ 0.8 million and $ 1.0 million for the nine months ending September 30, 2025 and 2024, respectively.

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

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Eligible employees may make pre-tax or post-tax (Roth) contributions to the 401(k) Plan up to statutory limits.

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 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.

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 September 30, 2025 and 2024.

The Company made matching contributions of $ 0.3 million for each of the nine months ended September 30, 2025 and 2024.

Stock-Based Compensation

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,

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

Three Months Ended September 30,

Nine Months Ended September 30,

Research and development

General and administrative

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.

As of September 30, 2025, the remaining unrecognized stock-based compensation cost from all plans to be recognized in future periods totaled $ 17.5 million.

In September 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.

The 2020 Plan includes automatic annual increases.

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

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

As of September 30, 2025, 5.0 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 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,

Outstanding at September 30, 2025

Vested at September 30, 2025

For the nine months ended September 30, 2025 and 2024, the weighted average grant date fair value for options granted was $ 2.68 and $ 1.13 , respectively.

The intrinsic value for options vested as of September 30, 2025 and 2024, was $ 6.0 million and $ 0.1 million, respectively.

As of September 30, 2025, the total unrecognized compensation cost related to outstanding options was $ 15.5 million, to be recognized over a weighted average period of 1.4 years.

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

Nine Months Ended September 30,

Expected term (in years)

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Forfeited or canceled

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 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 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.

Unvested, September 30, 2025

As of September 30, 2025, the remaining unrecognized compensation cost related to RSUs to be recognized in future periods totaled $ 2.0 million, which is expected to be recognized over a weighted average period of 1.2 years.

Stockholders ’ Equity

2025 Underwritten Offering

On August 12, 2025, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Jefferies LLC, Piper Sandler & Co., and Guggenheim Securities, LLC, as representatives (the “Representatives”) of the underwriters named therein (the “Underwriters”), pursuant to which the Company agreed to issue and sell an aggregate of (a) 33,290,000 shares (the “Firm Shares”) of its common stock, par value $ 0.0001 per share (the “Common Stock”), at a price to the public of $ 3.00 per share, and (b) pre-funded warrants to purchase up to 6,710,000 shares of the Company’s Common Stock (the “Pre-Funded Warrants”), at a price to the public of $ 2.9999 per warrant with an exercise price of $ 0.0001 per share (the “Offering”).

Pursuant to the Underwriting Agreement, the Company granted the underwriters a 30-day option, which the underwriters exercised, to purchase up to an additional 6,000,000 shares of its Common Stock (the “Optional Shares”, and together with the Firm Shares, the “Shares”) at the public offering price, less underwriting discounts and commissions.

The Company received aggregate net proceeds of $ 129.3 million, after deducting underwriting discounts and commissions of $ 8.3 million and other offering costs of $ 0.4 million.

The 2025 Pre-Funded Warrants were determined to be equity classified.

Accordingly, proceeds from the offering were allocated to common stock, the 2025 Pre-Funded Warrants on a relative fair value basis and were recorded in stockholders’ equity.

As of September 30, 2025, all of the 2025 Pre-Funded Warrants remain outstanding.

Basic and Diluted Net Loss Per Share

Basic net loss per share has been computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period.

Diluted net loss per share is calculated by dividing net loss by the weighted-average number of shares of common stock plus potentially dilutive securities outstanding during the period.

Potential shares of common stock exercisable for little or no consideration are included in both basic and diluted weighted-average number of shares of common stock outstanding.

During the three and nine months ended September 30, 2025, basic and diluted weighted-average number of shares outstanding were 168.8 million and 148.5 million shares, respectively, and included pre-funded warrants to purchase 6,710,000 shares of common stock with an exercise price of $ 0.0001 per share.

During the three and nine months ended September 30, 2024, basic and diluted weighted-average number of shares outstanding were 137.6 million and 137.3 million shares, respectively.

The computation of diluted net loss per share for the three and nine months ended September 30, 2025 excluded 18.4 million shares subject to outstanding stock options and restricted stock units because their inclusion would have had an anti-dilutive effect on diluted net loss per share.

The computation of diluted net loss per share for the three and nine months ended September 30, 2024 excluded 17.3 million shares, subject to outstanding stock options and restricted stock because their inclusion would have had an anti-dilutive effect on diluted net loss per share.

The following potentially dilutive securities (in common stock equivalents) have been excluded from the computation of diluted weighted-average shares outstanding for the three and nine months ended September 30, 2025 and 2024, as they would be antidilutive:

Three Months Ended September 30,

Nine Months Ended September 30,

Stock options

Restricted stock units

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 six months of 2025.

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

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

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

Segment Information

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Facility and equipment costs are not allocated to programs.

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

Three Months Ended June 30,

Six Months Ended June 30,

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

Three Months Ended September 30,

Nine Months Ended September 30,

Licensing revenue

Research and development

Stock-based compensation

General and administrative

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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 and six months ended June 30, 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 nine months ended September 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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In addition, we are in the process of IND enabling studies with CTX-10726, a bispecific antibody targeting PD-1 and VEFG-A.

For a more detailed description, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2 024 .

For a more detailed description and developments related to our pipeline, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q for the three months ended March 31, 2025 and June 30, 2025.

Recent Developments

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.

We also announced that the safety profile of tovecimig in this study to date was consistent with prior studies of tovecimig.

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.

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.

Data from tovecimig (DLL4 x VEGF-A bispecific) Phase 2/3 study in patients with Biliary Tract Cancer ( BTC) expected late Q1 2026

Based on a continuing trend of decreased mortality in the ongoing Phase 2/3 COMPANION-002 study of tovecimig in patients with advanced BTC, the analyses of overall survival (OS) and progression-free survival (PFS) are expected in late Q1 2026.

New response in a third indication observed in the fifth and final dosing cohort of the Phase 1 dose-escalation study of CTX-8371 (PD-1 x PD-L1 bispecific).

The fifth and final dosing level in the Phase 1 dose-escalation study of CTX-8371 has been fully enrolled.

A new response was observed in this cohort in a third indication, in addition to previously reported responses in patients with non-small cell lung cancer (NSCLC) and triple-negative breast cancer (TNBC).

No dose-limiting toxicities were observed at any dose level, potentially differentiating the safety profile of CTX-8371 from currently approved checkpoint inhibitors.

We now expect to present full topline data, including data from this fifth cohort, at a medical meeting in the first half of 2026.

We are also planning to initiate cohort expansions in patients with NSCLC and TNBC this quarter, based on the previously disclosed responses.

OPERATING ACTIVITIES

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

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

Through September 30, 2025, we have received $568 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 $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.

Our net losses were $14.3 million and $10.5 million for the three months ended September 30, 2025 and 2024, respectively.

Our net losses were $50.8 million and $34.3 million for the nine months ended September 30, 2025 and 2024, respectively.

We had an accumulated deficit of $415.5 million on September 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 June 30, 2025, we had $101 million in cash, cash equivalents and marketable securities.

As of September 30, 2025, we had $220 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 2028.

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Results of Operations

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

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

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

Three Months Ended September 30,

Operating expenses:

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Loss from operations

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).

Interest income

Research and Development Expenses

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.

Research and development expenses increased by $4.2 million, or 49%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Research and development expenses related to our new pipeline candidate, CTX-10726, was $4.6 million.

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 June 30,

Three Months Ended September 30,

Unallocated research and development expenses

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General and Administrative Expenses

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,

General and administrative expenses decreased by $0.6 million, or 18% for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

The decrease was primarily driven by a reduction of stock-based compensation expense of $1.3 million from the cancellation of employee equity partially offset by an increase in costs related to market research and commercial preparation costs of $0.6 million.

Other income decreased by $0.2 million or 11% for the three months ended September 30, 2025 as compared to the same period in 2024.

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

Comparison of the Nine months ended September 30, 2025 and 2024

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

Nine Months Ended September 30,

Licensing Revenue

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Loss from operations

Interest income

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.

There was no licensing revenue for the nine months ended September 30, 2025.

Licensing revenue was $850 thousand for the nine months ended September 30, 2024.

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

1 unchanged sentence

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.

Research and development expenses increased by $13 million, or 44%, for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.

Manufacturing expenses increased $11.2 million, primarily related to tovecimig and CTX-10726.

In addition, IND-enabling costs related to CTX-10726 were $1.9 million.

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,

Nine Months Ended September 30,

Unallocated research and development expenses

1 unchanged sentence

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.

General and administrative expenses increased $1.0 million, or 8% for the nine months ended September 30, 2025 as compared to the same period in 2024.

This increase primarily came from an increase of $0.6 million of market research and commercial preparation costs.

Other income decreased by $1.6 million or 29% for the nine months ended September 30, 2025 as compared to the same period in 2024.

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

Liquidity and Capital Resources

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

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.

Through September 30, 2025, we have received $568 million in gross proceeds from the sale of equity securities.

As of September 30, 2025, we had cash, cash equivalents and marketable securities of $220 million.

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

Six Months Ended June 30,

Nine Months Ended September 30,

Cash used in operating activities

Cash provided by investing activities

Cash provided by (used in) financing activities

Net change in cash and cash equivalents

Cash provided by (used in) investing activities

Cash provided by financing activities

Net change in cash, cash equivalents and restricted cash

Operating Activities

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).

During the nine months ended September 30, 2025, we used $35.9 million of cash in operating activities, resulting from our net loss of $50.8 million partially offset by the change in operating assets and liabilities of $7.7 million and non-cash charges of $7.2 million (primarily from share-based compensation expense of $6.5 million).

During the nine months ended September 30, 2024, we used $35.7 million of cash in operating activities, resulting from our net loss of $34.3 million minus the change in operating assets and liabilities of $7.7 million, partially offset by non-cash charges of $6.3 million (primarily from share-based compensation expense of $6.3 million).

Investing Activities

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.

During the nine months ended September 30, 2025, $90.0 million of cash was used in investing activities related to the net purchases of marketable securities.

During the nine months ended September 30, 2024, $31.4 million of cash was provided by investing activities, related to the net sale of marketable securities.

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.

During the nine months ended September 30, 2025, $128.5 million of cash was provided by financing activities due to the issuance of common shares.

During the nine months ended September 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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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