What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 49 added, 89 removed, 245 unchanged (36% of the section changed)

3 unchanged sentences

(In thousands, except share and per share data)

September 30,

Current assets

5 unchanged sentences

Operating lease right-of-use asset

Other non-current assets

Liabilities and stockholders' equity

10 unchanged sentences

Preferred stock, $ .0001 par value per share;

200,000,000 shares authorized and no shares issued or outstanding as of September 30, 2025 and December 31, 2024

200,000,000 shares authorized and no shares issued or outstanding as of March 31, 2026 and December 31, 2025

Common stock, $ .0001 par value per share;

1,000,000,000 shares authorized as of September 30, 2025 and December 31, 2024;

105,761,949 shares and 94,838,466 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

1,000,000,000 shares authorized as of March 31, 2026 and December 31, 2025;

107,481,522 shares and 106,249,579 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

Additional paid-in capital

Accumulated other comprehensive income

Accumulated other comprehensive income (loss)

Accumulated deficit

5 unchanged sentences

(In thousands, except share and per share data)

Three months ended September 30,

Nine months ended September 30,

Three months ended March 31,

Operating expenses

6 unchanged sentences

Other comprehensive income (loss):

Unrealized gain on available-for-sale securities

Unrealized loss on available-for-sale securities, net

Total comprehensive loss

9 unchanged sentences

Balance as of December 31, 2024

Issuance of common stock, net of offering costs

Exercise of stock options

2 unchanged sentences

Balance as of March 31, 2025

Exercise of stock options and vesting of restricted stock

Purchase of common stock under Employee Stock Purchase Plan

Stock-based compensation

Other comprehensive loss

Balance as of June 30, 2024

Exercise of stock options

Stock-based compensation

Other comprehensive income

Balance as of September 30, 2024

Other Comprehensive

2 unchanged sentences

Balance as of December 31, 2025

Exercise of stock options

Stock-based compensation

Other comprehensive loss

Balance as of March 31, 2025

Issuance of common stock, net of offering costs

Exercise of stock options and vesting of restricted stock

Purchase of common stock under Employee Stock Purchase Plan

Stock-based compensation

Other comprehensive loss

Balance as of June 30, 2025

Exercise of stock options and vesting of restricted stock

Stock-based compensation

Other comprehensive income

Balance as of September 30, 2025

Balance as of March 31, 2026

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

2 unchanged sentences

(In thousands)

Nine months ended September 30,

Three months ended March 31,

Cash flows from operating activities

15 unchanged sentences

Purchases of property and equipment

Net cash used in investing activities

Net cash provided by investing activities

Cash flows from financing activities

Proceeds from issuance of common stock, net of offering costs

Exercise of stock options

Payment of deferred offering costs

Proceeds from Employee Stock Purchase Plan

Net cash provided by financing activities

3 unchanged sentences

Supplemental disclosures of non-cash investing and financing activities:

Reduction to right-of-use due to tenant improvement receivable

Property and equipment purchases included in accounts payable

Property and equipment purchases included in accounts payable and accrued other expenses

Deferred offering costs included in accounts payable and accrued other expenses

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

5 unchanged sentences

(the Company) was incorporated as a Delaware corporation in May 2017, and is headquartered in Boulder, Colorado.

The Company is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of innovative treatments for severe muscle diseases for which there is significant unmet medical need.

The Company is a late-stage clinical biopharmaceutical company focused on the discovery, development and commercialization of innovative treatments for severe muscle diseases for which there is significant unmet medical need.

The Company’s lead product candidates are sevasemten and EDG-7500:

sevasemten is an orally administered fast skeletal myosin inhibitor designed to protect against contraction-induced muscle damage in muscular dystrophies currently being studied in multiple Phase 2 trials in Becker muscular dystrophy (Becker) and Duchenne muscular dystrophy (Duchenne), which are being held in the U.S., Israel, and certain countries in Europe and Australasia, and EDG-7500 is a novel, oral, selective, cardiac sarcomere modulator, specifically designed to slow early contraction velocity and address impaired cardiac relaxation associated with hypertrophic cardiomyopathy (HCM) and other diseases of diastolic dysfunction currently being studied in a multipart Phase 2 trial for the potential treatment of obstructive and nonobstructive HCM.

sevasemten is a selective, fast myofiber (type II) myosin small molecule inhibitor designed to address contraction-induced muscle injury currently being studied in multiple Phase 2 trials in Becker muscular dystrophy (Becker) and Duchenne muscular dystrophy (Duchenne), which are being held in the U.S., Israel, and certain countries in Europe and Australasia, and EDG-7500 is a novel, oral, selective, cardiac sarcomere modulator, specifically designed to slow early contraction velocity and address impaired cardiac relaxation associated with hypertrophic cardiomyopathy (HCM) and other diseases of diastolic dysfunction currently being studied in a multipart Phase 2 trial for the potential treatment of obstructive and nonobstructive HCM.

The Company is also developing EDG-15400, currently in a Phase 1 trial of healthy adults with the future disease target of heart failure with preserved ejection fraction (HFpEF), and using its proprietary drug discovery platform to develop a pipeline of precision medicine product candidates that target key muscle proteins and modulators to address a broad array of serious muscle disorders.

1 unchanged sentence

The board of directors of the Company discusses with management macroeconomic and geopolitical developments, including inflation, instability in the banking and financial services sector, tightening of the credit markets, the impact of changes in the U.S.

government administration and policy positions, the U.S.

federal government shutdown, international conflicts, public health pandemics, cybersecurity, sanctions, and changes in tariffs so that the Company can be prepared to react to new developments as they arise.

government administration and policy positions, international conflicts, public health pandemics, cybersecurity, sanctions, and changes in tariffs so that the Company can be prepared to react to new developments as they arise.

The board of directors and the management of the Company are carefully monitoring these developments and the resulting economic impact on its financial condition and results of operations.

Liquidity and Capital Resources

The Company has an accumulated deficit of $ 496.2 million and cash, cash equivalents and marketable securities of $ 563.3 million as of September 30, 2025.

The Company has an accumulated deficit of $ 595.4 million and cash, cash equivalents and marketable securities of $ 499.6 million as of March 31, 2026.

The Company’s ability to fund ongoing operations is highly dependent upon raising additional capital through the issuance of equity securities and issuing debt or other financing vehicles.

On June 16, 2023, the Company entered into a Sales Agreement (Sales Agreement) with BofA Securities, Inc.

(BofA Securities) under which the Company could offer and sell shares of common stock, having aggregate sales proceeds of up to $ 125.0 million from time to time, through an “at the market offering” program (ATM Program) under which BofA Securities acted as sales agent.

Effective January 19, 2024, the Company suspended and terminated the prospectus related to the Company’s common stock issuable pursuant to the terms of the Sales Agreement (the ATM Prospectus).

As of the date of the suspension of the ATM Prospectus, the Company had sold 7,560,068 shares of our common stock at a weighted average price of $ 7.93 per share.

The gross proceeds were $ 59.9 million, and the net proceeds were $ 59.4 million, after deducting underwriting discounts and commissions of $ 0.2 million and offering expenses of $ 0.3 million.

On January 23, 2024, the Company closed an underwritten registered direct offering of 21,818,182 shares of common stock at a public offering price of $ 11.00 per share (January 2024 Offering).

The aggregate gross proceeds from

the January 2024 Offering were $ 240.0 million, and the net proceeds were $ 231.9 million, after deducting underwriting discounts and commissions of $ 7.5 million and offering expenses of $ 0.6 million.

On May 10, 2024, the Company filed an automatic shelf registration statement on Form S-3ASR that allows the Company to undertake various equity and debt offerings.

9 unchanged sentences

The financial statements do not reflect any adjustments relating to the recoverability and reclassification of assets and liabilities that might be necessary if the Company is unable to continue as a going concern.

The Company believes that the $ 563.3 million of cash, cash equivalents and marketable securities on hand as of September 30, 2025 will be sufficient to fund its operations in the normal course of business and meet its liquidity needs through at least the next 12 months from the issuance of these financial statements.

The Company believes that the $ 499.6 million of cash, cash equivalents and marketable securities on hand as of March 31, 2026 will be sufficient to fund its operations in the normal course of business and meet its liquidity needs through at least the next 12 months from the issuance of these financial statements.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed financial statements and related notes to the condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 3, 2025.

The accompanying condensed financial statements and related notes to the condensed financial statements should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2025 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2026.

There have been no material changes to the summary of significant accounting policies as disclosed in that filing.

6 unchanged sentences

Unrealized gains and losses, net of any related tax effects, are excluded from earnings and are included in other comprehensive income (loss) and reported as a separate component of stockholders’ equity until realized.

Interest income, realized gains and losses, and declines in value judged

to be other than temporary, if any, on available-for-sale securities are included in other income.

Interest income, realized gains and losses, and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in other income.

The cost of securities sold is based on the specific-identification method.

3 unchanged sentences

The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

As of September 30, 2025

As of March 31, 2026

Cash equivalents:

20 unchanged sentences

There were no transfers of financial assets between Level 1, Level 2, or Level 3, during the periods presented.

As of September 30, 2025, the remaining contractual maturities of $ 469.2 million of marketable securities were less than one year and $ 47.4 million of marketable securities were between 1 and 2 years .

As of March 31, 2026, the remaining contractual maturities of $ 439.1 million of marketable securities were less than one year and $ 27.5 million of marketable securities were between 1 and 2 years .

The Company periodically reviews its portfolio of debt securities to determine if any investment is impaired due to credit loss or other potential valuation concerns.

For debt securities where the fair value of the investment is less than the amortized cost basis, the Company has assessed at the individual security level for various quantitative factors including, but not limited to, the nature of the investments, changes in credit ratings, interest rate fluctuations, industry analyst reports, and the severity of impairment.

Unrealized losses on marketable securities at September 30, 2025 were primarily

due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities.

Unrealized losses on marketable securities at March 31, 2026 were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities.

Accounting Standards Not Yet Adopted

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.

This ASU is expected to enhance the transparency and decision usefulness of income tax disclosures by requiring public business entities on an annual basis to disclose specific categories in the rate reconciliation, additional information for reconciling items that meet a quantitative threshold, and certain information about income taxes paid.

This ASU is effective beginning with the Company’s 2025 fiscal year annual reporting period, with early adoption permitted.

The Company is currently evaluating the impact that the adoption of this standard will have on its financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40):

In November 2024, the FASB issued Accounting Standards Update (ASU) 2024-03, Income Statement–Reporting Comprehensive Income–Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses .

This ASU is expected to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling, general, and administrative, and research and development).

This ASU is expected to improve the disclosures about a public business entity’s expenses and address

requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development).

This ASU is effective beginning with the Company’s 2027 fiscal year annual reporting period and interim periods thereafter, with early adoption permitted.

The Company is currently evaluating the impact that the adoption of this standard will have on its financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow Scope Improvement s.

This ASU is expected to improve the navigability of the required interim disclosures, clarify when that guidance is applicable, and provide additional guidance on what disclosures should be included in interim reporting periods.

It also adds a principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity.

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

The Company is currently evaluating the impact that the adoption of this standard will have on its interim financial statements.

NOTE 3 PREFERRED STOCK AND COMMON STOCK

The Company is authorized to issue two classes of stock designated as common stock and preferred stock.

As of September 30, 2025, the total number of shares authorized was 1,200,000,000 .

As of March 31, 2026, the total number of shares authorized was 1,200,000,000 .

The total number of shares of common stock authorized was 1,000,000,000 .

11 unchanged sentences

An RSU represents the right to receive one share of common stock upon vesting of the RSU.

The fair value of each RSU is based on the closing price of the Company’s common stock on the date of grant and vest over 2 to 4 years .

The fair value of each RSU is based on the closing price of the Company’s common stock on the date of grant and generally vest over 2 to 4 years .

A total of 5,040,000 shares of the Company’s common stock were initially reserved for issuance pursuant to the 2021 Plan.

The 2021 Plan share reserve increases by the number of shares under the 2017 Plan that are repurchased, forfeited, expired or cancelled after the effective date of the 2021 Plan up to the limit under the 2021 Plan.

percent ( 5 %) of the outstanding shares of its common stock as of the last day of the immediately preceding fiscal year;

The number of shares available for issuance under the 2021 Plan increases annually on the first day of each fiscal year beginning with the Company’s 2022 fiscal year, equal to the least of (1) 5,040,000 shares, (2) five percent ( 5 %) of the outstanding shares of its common stock as of the last day of the immediately preceding fiscal year;

or (3) such other amount as the Company’s board of directors may determine.

As of September 30, 2025, there were 2,593,910 shares available for future issuance under the 2021 Plan.

During the nine months ended September 30, 2025, under the 2021 Plan, the Company issued 3,295,606 stock options with a fair value of $ 35.3 million that vest over a weighted average period of 3.8 years and 844,245 RSUs with a fair value of $ 12.1 million that vest over a weighted average period of 3.9 years.

As of March 31, 2026, there were 7,909,448 shares of common stock available for future issuance under the 2021 Plan.

Inducement Equity Incentive Plan

5 unchanged sentences

The fair value of each RSU is based on the closing price of the Company’s common stock on the date of grant and vests over 4 years .

As of September 30, 2025, there were 1,632,250 shares available for future issuance under the Inducement Plan.

As of March 31, 2026, there were 688,500 shares available for future issuance under the Inducement Plan.

Founder Stock Options

1 unchanged sentence

This grant is separate from the Company’s equity incentive plans discussed above.

As of September 30, 2025, 1,247,365 options were both outstanding and exercisable.

109,415 options were exercised during the nine months ended September 30, 2025.

As of March 31, 2026, 1,147,365 options were both outstanding and exercisable.

2021 Employee Stock Purchase Plan

3 unchanged sentences

or (3) such other amount as the Company’s board of directors may determine.

As of September 30, 2025, the Company has reserved for issuance 2,927,132 shares of common stock pursuant to the 2021 ESPP.

As of March 31, 2026, there were 3,908,630 shares of common stock available for future issuance under the 2021 ESPP.

The 2021 ESPP provides for two offering periods of approximately twelve months’ duration, with purchase periods commencing on the first trading day on or after May 15 and November 15 and terminating on the last trading day on or before November 15 of the same year and May 15 of the following year, respectively.

1 unchanged sentence

2021 ESPP participants will purchase shares of common stock at a price per share equal to 85 % of the lesser of (1) the fair market value per share of the common stock on the first trading day of the offering period or (2) the fair market value of the common stock on the purchase date.

Total stock-based compensation expense related to all equity plans, including Founder Stock Options was allocated as follows (in thousands):

Three months ended September 30,

Nine months ended September 30,

Total stock-based compensation expense related to all equity plans was allocated as follows (in thousands):

Three months ended March 31,

Research and development

4 unchanged sentences

From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business.

The Company was not subject to any material legal proceedings during the three and nine months ended September 30, 2025 and no material legal proceedings are currently pending or threatened.

The Company was not subject to any material legal proceedings during the three months ended March 31, 2026 and no material legal proceedings are currently pending or threatened.

Indemnification Agreements

3 unchanged sentences

To date, the Company has not incurred any material costs as a result of such indemnifications.

The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations in its financial statements as of September 30, 2025.

The Company is not aware of any claims under indemnification arrangements, and it has not accrued any liabilities related to such obligations in its financial statements as of March 31, 2026.

NOTE 6 NET LOSS PER SHARE

6 unchanged sentences

The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share data):

Three months ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Weighted-average shares outstanding used in computing net loss per share, basic and diluted

1 unchanged sentence

The following weighted average outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive:

Three months ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Options to purchase common stock

2 unchanged sentences

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

As of September 30,

As of March 31,

As of December 31,

3 unchanged sentences

Furniture and fixtures

Construction in process

Property and equipment, at cost

1 unchanged sentence

Property and equipment, net

Depreciation expense was $ 0.5 million and $ 1.6 million for three and nine months ended September 30, 2025, respectively, and $ 0.5 million and $ 1.5 million three and nine months ended September 30, 2024, respectively.

Depreciation expense was $ 0.5 million for each of the three months ended March 31, 2026 and 2025.

NOTE 8 ACCRUED OTHER EXPENSES

Accrued other expenses consisted of the following amounts (in thousands):

As of September 30,

As of March 31,

As of December 31,

3 unchanged sentences

NOTE 9 SEGMENT REPORTING

There have been no changes in the Company’s assessment of the basis of segmentation or in the basis of measurement of segment profit or loss since the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 3, 2025.

Three months ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Operating expenses:

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