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Item 2. Management’s Discussion and Analysis

2026-05-07 compared with 2025-11-06 · 58 added, 98 removed, 159 unchanged (50% of the section changed)

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

should be read in conjunction with the financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q (Quarterly Report), and the audited financial statements and the related notes thereto included in our Annual Report on Form 10-K (Annual Report), filed with the Securities and Exchange Commission, on March 3, 2025.

In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions.

As a result of many factors, including those factors set forth in the “Risk Factors” section of this Quarterly Report, our actual results could differ materially from the results described in or implied by these forward-looking statements.

As a result of many factors, including those factors set forth in the “Risk Factors” section of this Quarterly Report on Form 10-Q, our actual results could differ materially from the results described in or implied by these forward-looking statements.

You should carefully read the “Risk Factors” to gain an understanding of the factors that could cause actual results to differ materially from our forward-looking statements.

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We are advancing multiple clinical-stage programs in muscular dystrophies and severe cardiac diseases, as well as a number of preclinical programs.

Our muscular dystrophy program includes sevasemten, an orally administered fast skeletal myosin inhibitor designed to protect against contraction-induced muscle damage and is currently being studied in multiple Phase 2 clinical trials in Becker muscular dystrophy (Becker) and Duchenne muscular dystrophy (Duchenne), including an ongoing pivotal cohort trial in patients with Becker.

Our muscular dystrophy program includes sevasemten, an orally administered selective, fast myofiber (type II) myosin small molecule inhibitor designed to address contraction-induced muscle injury and is currently being studied in multiple late-stage clinical trials in Becker muscular dystrophy (Becker) and Duchenne muscular dystrophy (Duchenne), including an ongoing pivotal cohort trial in patients with Becker.

Our cardiovascular program includes novel, oral, selective cardiac sarcomere modulators EDG-7500 and EDG-15400.

EDG-7500 is currently being studied in a multipart Phase 2 trial in both obstructive and non-obstructive hypertrophic cardiomyopathy (HCM).

EDG-15400 is currently in a Phase 1 trial of healthy adults with the future disease target of heart failure with preserved ejection fraction (HFpEF).

EDG-7500 is currently being studied in a multipart Phase 2 trial in both obstructive and nonobstructive hypertrophic cardiomyopathy (HCM).

EDG-15400 is currently in a Phase 1 trial of healthy adults with the future disease target of heart failure with preserved ejection fraction (HFpEF) and the Company expects to initiate a Phase 2 trial in HFpEF in the second half of 2026.

We are also continuing to advance our preclinical exploration, including novel cardiometabolic targets.

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changing the lives of patients and families affected by serious muscle diseases.

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

Guided by our holistic drug discovery approach to targeting the muscle as an organ, we have combined our

foundational expertise in muscle biology and small molecule engineering to build our proprietary, muscle focused drug discovery platform.

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

Guided by our holistic drug discovery approach to targeting the muscle as an organ, we have combined our foundational expertise in muscle biology and small molecule engineering to build our proprietary, muscle focused drug discovery platform.

Our platform utilizes custom-built high throughput and translatable systems that measure integrated muscle function in whole organ extracts to identify small molecule precision medicines regulating key proteins in muscle tissue, initially focused on addressing rare neuromuscular and cardiac diseases.

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We have incurred significant losses since the commencement of our operations.

Our net losses were $40.7 million and $117.6 million for the three and nine months ended September 30, 2025, respectively, and $34.1 million and $94.2 million for the three and nine months ended September 30, 2024, respectively, and we expect to continue to incur significant losses for the foreseeable future as we advance our product candidates through preclinical development and clinical trials and seek regulatory approval of our product candidates.

Our net losses were $49.0 million and $40.8 million for the three months ended March 31, 2026 and 2025, respectively, and we expect to continue to incur significant losses for the foreseeable future as we advance our product candidates through preclinical development and clinical trials and seek regulatory approval of our product candidates.

Our net losses may fluctuate significantly from period to period, depending on the timing of and expenditures on our planned research and development activities.

As of September 30, 2025, we had an accumulated deficit of $496.2 million.

As of March 31, 2026, we had an accumulated deficit of $595.4 million.

To date, we have financed our operations primarily through private placements of convertible preferred stock and public offerings of our common stock.

From inception to our initial public offering, private placements provided gross proceeds of $160.7 million, and, as of September 30, 2025, we generated net proceeds from our initial public offering, follow-on public offering, issuance of our common stock under an “at the market offering” program (the ATM Program), and the January 2024 and April 2025 underwritten registered direct offerings of $793.7 million.

We believe that our existing cash and cash equivalents and marketable securities of $563.3 million will enable us to fund our planned operating expenses and capital expenditure requirements through at least the next 12 months.

From inception to our initial public offering, private placements provided gross proceeds of $160.7 million, and, as of March 31, 2026, we generated net proceeds from our initial public offering, follow-on public offering, issuance of our common stock under an “at the market offering” program (the ATM Program), and the January 2024 and April 2025 underwritten registered direct offerings of $793.7 million.

We believe that our existing cash and cash equivalents and

marketable securities of $499.6 million will enable us to fund our planned operating expenses and capital expenditure requirements through at least the next 12 months.

Macroeconomic and Geopolitical Developments

We are monitoring macroeconomic and geopolitical developments, such as inflation, instability in the banking and financial services sector, tightening of the credit markets, 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, and evaluating potential impacts on our operations, clinical development timelines, supply chain continuity and capital markets access.

The extent, severity, and duration of the impacts of these events and conditions on our business, operations and research and development timelines and plans cannot be predicted and will depend on numerous factors.

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Operating expenses

Operating expenses primarily consist of research and development activities and general and administrative functions that support our clinical programs and corporate infrastructure.

Research and development expenses

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The majority of these expenses have been incurred to advance our lead product candidates, sevasemten and EDG-7500.

We expect that significant additional spending will be required to progress these, EDG-15400, and other potential discoveries through the remainder of the clinical development phases.

These expenses will primarily consist of expenses for the administration of clinical trials as well as manufacturing costs for clinical material supply.

We expect that significant additional spending will be required to progress these, EDG-15400, and other potential discoveries through later-stage clinical development phases and potentially registrational activities.

These expenses will

primarily consist of expenses for the administration of clinical trials as well as manufacturing costs for clinical material supply.

We track our direct research and development expenses on a program-by-program basis once a lead compound has been selected and clinical trials have been initiated.

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Product candidates in later stages of clinical development generally have higher development costs than those in earlier stages, primarily due to the increased size and duration of later-stage clinical trials.

We are currently conducting four Phase 2 clinical trials with sevasemten for people with muscular dystrophy (CANYON, LYNX, FOX and DUNE), including a potentially registrational, or pivotal cohort, in individuals with Becker (GRAND CANYON) as part of the CANYON trial, a multipart Phase 2 trial with EDG-7500 for people with HCM (CIRRUS-HCM), and a Phase 1 trial with EDG-15400 of healthy adults with the future disease target of HFpEF.

As a result, we expect that our research and development expenses will increase substantially over the next several years as we advance sevasemten, EDG-7500, EDG-15400, product candidates from our EDG-003 cardiometabolic discovery program through clinical trials and additional product candidates;

We are currently conducting three Phase 2 clinical trials with sevasemten for people with muscular dystrophy (LYNX, FOX, and GRAND CANYON, a potentially registrational, or pivotal cohort, in individuals with Becker as part of the CANYON trial), a multipart Phase 2 trial with EDG-7500 for people with HCM (CIRRUS-HCM), and a Phase 1 trial with EDG-15400 of healthy adults with the future disease target of HFpEF.

As a result, we expect that our research and development expenses will increase substantially over the next several years as we advance sevasemten, EDG-7500, EDG-15400, and candidates from our EDG-003 cardiometabolic discovery program through clinical trials and additional product candidates;

continue to develop our proprietary drug discovery platform;

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Any changes in the outcome of any of these factors could significantly impact the costs and timing associated with the development of our product candidates.

We may also adjust program prioritization or resource allocation based on emerging clinical data, regulatory feedback or capital availability.

General and administrative expenses

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General and administrative expenses also include facilities and other expenses, which include direct or allocated expenses for rent and maintenance of facilities and insurance, not otherwise included in research and development expenses, as well as professional fees for legal, patent, consulting, investor and public relations, accounting and audit services.

We anticipate that our general and administrative expenses will increase in the future as we increase our headcount to support the continued research and development of our programs.

We continue to expand our administrative infrastructure to support the growth of our clinical programs and public company operations.

We anticipate that our general and administrative expenses will increase in the future as we scale our organization to support clinical advancement, regulatory readiness, and future commercial planning activities.

Interest income

Interest income primarily consists of interest income generated from our cash, cash equivalents and marketable securities.

Interest income may fluctuate in future periods based on cash deployment and prevailing market conditions.

Results of Operations

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:

Three months ended September 30,

(in thousands)

Operating expenses:

Research and development

General and administrative

Total operating expenses

Loss from operations

Interest income

Research and development expenses

The following table summarizes our research and development expenses:

Three months ended September 30,

(in thousands)

External research and development expenses:

Sevasemten clinical program

EDG-7500 clinical program

EDG-15400 clinical program

Discovery and preclinical

Internal costs, including personnel related

Total research and development expenses

Research and development expenses were $37.5 million and $32.2 million for the three months ended September 30, 2025 and 2024, respectively.

The increase of $5.3 million was attributed to the following:

● an increase of $0.5 million in sevasemten clinical program expenses, which was primarily related to increased clinical activity in the MESA trial due to the continued rollover of patients from the GRAND CANYON pivotal cohort beginning in April 2025, offset by decreases in the CANYON, ARCH, and DUNE trials due to rollover of substantially all patients from these trials into MESA.

Additional increases in sevasemten clinical program expenses compared to the same period in 2024 were due to fully enrolling the GRAND CANYON pivotal cohort in February 2025;

● an increase in EDG-7500 clinical program expenses of $0.4 million primarily related to continued patient activity for Part B and Part C and site activation and patient enrollment of Part D of our multipart Phase 2 CIRRUS-HCM trial, for which only Part A was active in the comparable period in 2024, which was offset by completion of our Phase 1 trial in 2024 for which there was no comparable activity in 2025;

● an increase in EDG-15400 clinical program expenses of $3.0 million which are now shown separately in the above table due to advancing into a Phase 1 trial in the third quarter of 2025.

These expenses include clinical trial and nonclinical costs, as well as manufacturing costs to support current and future trials;

● a decrease in discovery and preclinical expenses of $1.4 million primarily driven by EDG-15400 costs, now shown separately, which were a significant portion of the discovery and preclinical expenses along with other costs from the EDG-003 program during the comparable period in 2024;

● an increase in internal costs of $2.9 million, primarily related to personnel-related costs, including stock-based compensation, resulting from increased employee headcount to support the growth of our research and development programs.

General and administrative expenses

General and administrative expenses were $9.4 million and $8.2 million for the three months ended September 30, 2025 and 2024, respectively.

The increase of $1.2 million was primarily due to increased personnel-related costs, including stock-based compensation, from increased headcount.

Interest income

Interest income was $6.2 million and $6.3 million for the three months ended September 30, 2025 and 2024, respectively.

The decrease of $0.1 million was primarily due to lower average treasury yields during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, partially offset by higher average securities balances during the three months ended September 30, 2025.

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:

Nine months ended September 30,

Comparison of the three months ended March 31, 2026 and 2025

The following table summarizes our results of operations for the three months ended March 31, 2026 and 2025:

Three months ended March 31,

(in thousands)

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Total operating expenses

Loss from operations

Interest income

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The following table summarizes our research and development expenses:

Nine months ended September 30,

Three months ended March 31,

(in thousands)

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Total research and development expenses

Research and development expenses were $107.8 million and $90.6 million for the nine months ended September 30, 2025 and 2024, respectively.

The increase of $17.2 million was attributed to the following:

● an increase of $2.7 million in sevasemten clinical program expenses, which was primarily related to a net increase in clinical activity in the MESA trial due to rollover of substantially all patients from the

CANYON, ARCH, and DUNE trials, and patients from the GRAND CANYON pivotal cohort beginning in April 2025.

Additional increases in sevasemten clinical program expenses compared to the same period in 2024 were due to fully enrolling the GRAND CANYON pivotal cohort in February 2025;

● a decrease in EDG-7500 clinical program expenses of $1.4 million primarily related to completion of our Phase 1 trial and a drug interaction study in 2024 for which there was no significant comparable activity in 2025, which was offset by continued patient activity for Part B and Part C and site activation and patient enrollment of Part D of our multipart Phase 2 CIRRUS-HCM trial, for which only Part A was active in the comparable period in 2024;

Research and development expenses were $42.7 million and $36.8 million for the three months ended March 31, 2026 and 2025, respectively.

The increase reflects deliberate allocation of capital toward later‑stage clinical programs aligned with near‑ and mid‑term value inflection points, as well as continued investment in internal capabilities required to support clinical execution, and was attributed to the following:

● an increase in EDG-7500 clinical program expenses of $1.6 million primarily related to an increase of $1.1 million from continued patient activity for Part D of our multipart Phase 2 CIRRUS-HCM trial, for which Part B and Part C were enrolling in the comparable period in 2025, and an increase of $0.5 million from pharmacokinetic studies;

● an increase in EDG-15400 clinical program expenses of $3.1 million which are now shown separately in the above table due to advancing into a Phase 1 trial in the third quarter of 2025.

These expenses include clinical trial and nonclinical costs, as well as manufacturing costs to support current and future trials;

● discovery and preclinical expenses were substantially the same between the comparative periods.

This was primarily driven by a decrease in EDG-15400 related costs, now shown separately, which were a significant portion of the discovery and preclinical expenses in the comparable period in 2024, offset by additional nonclinical costs related to our EDG-003 cardiometabolic program;

partially offset by:

● a decrease of $0.9 million in sevasemten clinical program expenses, which was primarily related to a $1.3 million decrease in clinical program expenses in GRAND CANYON compared to the same period in 2025 due to patient rollover to the MESA trial.

This was offset by a $0.4 million increase in clinical program expenses in the MESA trial related to increased clinical activity due to patient rollover from the GRAND CANYON trial from which no patients had transitioned to the MESA trial in the comparable period in 2025;

● a decrease in discovery and preclinical expenses of $0.8 million, which was primarily driven by a decrease in EDG-15400 related costs, now shown separately, which were a significant portion of discovery, preclinical, and nonclinical expenses in the comparable period in 2025.

General and administrative expenses

General and administrative expenses were $27.6 million and $22.7 million for the nine months ended September 30, 2025 and 2024, respectively.

The increase of $4.9 million was primarily due to $4.2 million in increased personnel-related costs, including stock-based compensation, from increased headcount and $0.7 million in increased professional and consulting costs and other administrative costs.

General and administrative expenses increased to $11.5 million for the three months ended March 31, 2026 compared to $9.2 million for the three months ended March 31, 2025.

The increase of $2.3 million was primarily attributable to $1.4 million in increased personnel-related costs, including stock-based compensation, associated with organizational growth, as well as increased professional and consulting costs and other administrative costs supporting public company operations and clinical development activities.

Interest income

Interest income was $17.8 million and $19.1 million for the nine months ended September 30, 2025 and 2024, respectively.

The decrease of $1.3 million was primarily due to lower average treasury yields during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, partially offset by higher average securities balances during the nine months ended September 30, 2025.

Interest income was $5.1 million for the three months ended March 31, 2026 compared to $5.2 million for the three months ended March 31, 2025.

Interest income reflects returns generated from the disciplined investment of our cash, cash equivalents and marketable securities in accordance with our investment policies and may fluctuate in future periods based on prevailing market conditions and the timing of cash deployment.

Liquidity and Capital Resources

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To date, we have financed our operations primarily through private placements of convertible preferred stock and public offerings of our common stock.

From inception to our initial public offering, private placements provided gross proceeds of $160.7 million, and, as of September 30, 2025, we generated net proceeds from our initial public offering, follow-on public offering, issuance of our common stock under the ATM Program, and the January 2024 and April 2025 underwritten registered direct offerings of $793.7 million.

As of September 30, 2025, we had cash, cash equivalents and marketable securities in the amount of $563.3 million.

From inception to our initial public offering, private placements provided gross proceeds of $160.7 million, and, as of March 31, 2026, we generated net proceeds from our initial public offering, follow-on public offering, issuance of our common stock under the ATM Program, and the January 2024 and April 2025 underwritten registered direct offerings of $793.7 million.

As of March 31, 2026, we had cash, cash equivalents and marketable securities in the amount of $499.6 million.

The following table summarizes our sources and uses of cash for each of the periods presented:

Nine months ended September 30,

Three months ended March 31,

(in thousands)

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Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents

Net (decrease) increase in cash and cash equivalents

Operating activities

Cash used in operating activities during the nine months ended September 30, 2025 was $105.2 million primarily driven by our net loss for the period of $117.6 million, and was also impacted by changes in operating assets and liabilities, which increased net working capital by $8.0 million.

Cash used in operating activities was reduced by non-cash charges of $20.4 million relating to stock-based compensation expense of $24.9 million, accretion of discounts, net on marketable securities of $6.2 million, depreciation of $1.6 million, and amortization of right-of-use asset of $0.1 million.

Cash used in operating activities during the nine months ended September 30, 2024 was $82.1 million primarily driven by our net loss for the period of $94.2 million, and was also impacted by changes in operating assets and liabilities which decreased net working capital by $3.4 million.

Cash used in operating activities was reduced by non-cash charges of $8.7 million relating to stock-based compensation expense of $17.0 million, amortization of premium and accretion of discounts, net on marketable securities of $9.9 million, depreciation of $1.5 million and amortization of right-of-use asset of $0.2 million.

Cash used in operating activities during the three months ended March 31, 2026 was $42.5 million primarily driven by our net loss for the period of $49.0 million, and was also impacted by changes in operating assets and liabilities, which increased net working capital by $1.8 million.

Cash used in operating activities was reduced by non-cash charges of $8.3 million relating to stock-based compensation expense of $8.7 million, depreciation of $0.5 million, and amortization of right-of-use asset of $0.1 million, offset by accretion of discounts, net on marketable securities of $1.0 million.

Cash used in operating activities during the three months ended March 31, 2025 was $37.9 million primarily driven by our net loss for the period of $40.8 million, and was also impacted by changes in operating assets and liabilities, which increased net working capital by $4.8 million.

Cash used in operating activities was reduced by non-cash charges of $7.7 million relating to stock-based compensation expense of $9.1 million and depreciation of $0.5 million, offset by accretion of discounts, net on marketable securities of $1.9 million.

Investing activities

Cash used in investing activities during the nine months ended September 30, 2025 amounted to $82.6 million, due to $452.9 million in purchases of marketable securities and $0.2 million for purchases of equipment, which was partially offset by $319.1 million in maturities of marketable securities and $51.5 million in sales of marketable securities.

Cash used in investing activities during the nine months ended September 30, 2024 amounted to $205.6 million, which was due to $413.9 million in purchases of marketable securities and $1.0 million for purchases of equipment, which was partially offset by $196.6 million in maturities of marketable securities and $12.7 million in sales of marketable securities.

Cash provided by investing activities during the three months ended March 31, 2026 amounted to $2.4 million, due to $108.9 million in maturities of marketable securities and $4.0 million in sales of marketable securities, which were partially offset by $110.2 million in purchases of marketable securities and $0.3 million for purchases of equipment.

Cash provided by investing activities during the three months ended March 31, 2025 amounted to $43.9 million, due to $151.1 million in maturities of marketable securities and $15.0 million in sales of marketable securities, which was partially offset by $122.2 million in purchases of marketable securities.

Financing activities

Cash provided by financing activities during the nine months ended September 30, 2025 was $192.1 million, due to cash proceeds of $200.0 million from the April 2025 underwritten registered direct offering, $4.2 million in proceeds from the issuance of common stock upon exercise of stock options, $0.6 million in proceeds from the Company’s 2021 Employee Stock Purchase Plan (2021 ESPP), which was partially offset by $12.6 million for the payment of underwriting discounts and commissions and offering costs .

Cash provided by financing activities during the nine months ended September 30, 2024 was $246.4 million, which was due to cash proceeds of $7.0 million from the ATM Program, $240.0 million from the underwritten registered direct offering, $7.1 million in proceeds from the issuance of common stock upon exercise of stock options, and $0.4 million in proceeds from the employee stock purchase plan, which was partially offset by $7.9 million for the payment of underwriting commissions and offering costs and $0.3 million for the payment of deferred offering costs.

Cash provided by financing activities during the three months ended March 31, 2026 was $12.2 million due to cash proceeds from the issuance of common stock upon exercise of stock options.

Cash provided by financing activities during the three months ended March 31, 2025 was $2.2 million, due to cash proceeds of $2.3 million from the issuance of common stock upon exercise of stock options, which was partially offset by the payment of $38,000 in deferred offering costs.

Funding requirements

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We do not currently have any long-term material capital requirements other than what will be required to fund operations for the foreseeable future and the amounts disclosed on the contractual obligations and commitments section below.

In order to complete the process of obtaining regulatory approval for our product candidates and to build the sales, marketing and distribution infrastructure that we believe will be necessary to commercialize our product candidates, if approved, we will require substantial additional funding.

In order to complete the process of obtaining regulatory approval for our product candidates and to build the

sales, marketing and distribution infrastructure that we believe will be necessary to commercialize our product candidates, if approved, we will require substantial additional funding.

We have based our projections of operating capital requirements on assumptions that may prove to be incorrect and we may use all of our available capital resources sooner than we expect.

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We expect that our existing cash and cash equivalents and marketable securities, will be sufficient to enable us to fund our planned operating expenses and capital expenditure requirements through at least the next 12 months.

Our short-term material cash requirements as of September 30, 2025 are to fund our operations, which consist primarily of research and development expenses related to our programs, and to a lesser extent, general and

administrative expenses.

Our short-term material cash requirements as of March 31, 2026 are to fund our operations, which consist primarily of research and development expenses related to our programs, and to a lesser extent, general and administrative expenses.

We have entered into contracts in the normal course of business with CROs, CDMOs and other third parties for preclinical research studies and testing, clinical trials and manufacturing services.

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Payments due upon cancellation consist only of payments for services provided and expenses incurred, including non-cancelable obligations of our service providers, up to the date of cancellation.

Our long-term cash requirements as of September 30, 2025 includes our lease obligations.

Our long-term cash requirements as of March 31, 2026 includes our lease obligations.

In January 2022, we entered into a lease agreement for approximately 18,614 square feet of office and laboratory space in Boulder, Colorado which includes escalating rent payments and an 8.2 year term, plus our share of operating expenses.

In February 2023, the lease was modified to occupy an additional 9,624 square feet of office space, with aggregate payments of approximately $1.5 million over the initial 7.3 year term, plus our share of operating expenses.

As of September 30, 2025 our total operating lease liability balance is $4.2 million, of which $1.0 million is a current liability.

As of March 31, 2026, our total operating lease liability balance is $3.8 million, of which $1.0 million is a current liability.

Critical Accounting Estimates

Our financial statements are prepared in accordance with generally accepted accounting principles in the United States.

The preparation of our financial statements and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, costs and expenses, and the disclosure of contingent assets and liabilities in our financial statements.

Our financial statements are prepared in accordance with generally accepted accounting principles in the United States and requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, costs, expenses, and the disclosure of contingent assets and liabilities in our financial statements.

We base our estimates on historical experience, known trends and events and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

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Our actual results may differ from these estimates.

Our critical accounting policies are described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 3, 2025 and the notes to the financial statements appearing elsewhere in this Quarterly Report.

During the three and nine months ended September 30, 2025, there were no material changes to our critical accounting estimates from those discussed in our Annual Report on Form 10-K filed on March 3, 2025.

Our critical accounting policies are described in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2026 and the notes to the financial statements appearing elsewhere in this Quarterly Report.

During the three months ended March 31, 2026, there were no material changes to our critical accounting estimates from those discussed in our Annual Report on Form 10-K filed on February 26, 2026.

Recently Issued Accounting Pronouncements

A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2 to our financial statements appearing in this Quarterly Report.

Transition from Emerging Growth Company and Smaller Reporting Company Status

On December 31, 2024, we ceased to be an “emerging growth company,” as defined in the JOBS Act, due to our large accelerated filer status.

Accordingly, we may no longer take advantage of EGC-related reduced reporting requirements that are otherwise applicable to public companies.

For example, we have previously elected to take advantage of the extended transition period for complying with new or revised accounting standards.

EGC status also exempted us from having to provide an auditor attestation of internal control over financial reporting under Sarbanes-Oxley Act Section 404(b).

On December 31, 2024, we also ceased to be a “smaller reporting company,” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (Exchange Act), because the market value of our common stock held by non-affiliates exceeded $700 million as of June 30, 2024.

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 2. Management’s Discussion and Analysis