Edgewise Therapeutics, Inc. 10-Q

Item 1. Financial Statements EDGEWISE THERAPEUTICS, INC. Condensed Balance Sheets (In thousands, except share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of ​ As of ​ ​ March 31, ​ December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Assets ​ (unaudited) ​ ​ Current assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 33,211 ​ ​ ​ $ 61,148 Marketable securities, available for sale ​ 466,351 ​ 468,961 Prepaid expenses and other assets ​ 10,230 ​ 13,276 Total current assets ​ 509,792 ​ 543,385 ​ ​ ​ ​ ​ ​ ​ Property and equipment, net ​ 7,396 ​ 7,831 Operating lease right-of-use asset ​ ​ 1,334 ​ ​ 1,387 ​ ​ ​ ​ ​ ​ ​ Total assets ​ $ 518,522 ​ $ 552,603 ​ ​ ​ ​ ​ ​ ​ Liabilities and stockholders' equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities ​ ​ ​ ​ Accounts payable ​ $ 7,293 ​ $ 6,006 Accrued compensation ​ 5,678 ​ 12,430 Accrued other expenses ​ 8,555 ​ 7,920 Operating lease liability, current portion ​ ​ 1,017 ​ ​ 1,014 Total current liabilities ​ 22,543 ​ 27,370 Operating lease liability, net of current portion ​ ​ 2,776 ​ ​ 2,976 ​ ​ ​ ​ ​ ​ ​ Total liabilities ​ 25,319 ​ 30,346 ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies (see note 5) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders' equity: ​ ​ ​ ​ Preferred stock, $ .0001 par value per share; 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 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 ​ 10 ​ 10 Additional paid-in capital ​ 1,088,829 ​ 1,067,941 Accumulated other comprehensive income (loss) ​ ​ ( 252 ) ​ ​ 677 Accumulated deficit ​ ( 595,384 ) ​ ( 546,371 ) Total stockholders' equity ​ 493,203 ​ 522,257 ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity ​ $ 518,522 ​ $ 552,603 ​ The accompanying notes are an integral part of these condensed financial statements. 6 Table of Contents EDGEWISE THERAPEUTICS, INC. Condensed Statements of Operations and Comprehensive Loss (In thousands, except share and per share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ Operating expenses ​ ​ ​ ​ ​ Research and development ​ $ 42,651 ​ ​ ​ $ 36,757 General and administrative ​ 11,464 ​ 9,202 Total operating expenses ​ 54,115 ​ 45,959 ​ ​ ​ ​ ​ ​ ​ Loss from operations ​ ( 54,115 ) ​ ( 45,959 ) ​ ​ ​ ​ ​ ​ ​ Other income ​ ​ ​ ​ Interest income ​ ​ 5,102 ​ 5,161 Total other income ​ 5,102 ​ 5,161 ​ ​ ​ ​ ​ ​ ​ Net loss ​ ​ ( 49,013 ) ​ ​ ( 40,798 ) ​ ​ ​ ​ ​ ​ ​ Other comprehensive income (loss): ​ ​ ​ ​ ​ ​ Unrealized loss on available-for-sale securities, net ​ ​ ( 929 ) ​ ​ ( 19 ) Total comprehensive loss ​ $ ( 49,942 ) ​ $ ( 40,817 ) ​ ​ ​ ​ ​ ​ ​ Net loss per share, basic and diluted ​ $ ( 0.46 ) ​ $ ( 0.43 ) Weighted-average shares outstanding, basic and diluted ​ 107,116,709 ​ 95,130,053 ​ The accompanying notes are an integral part of these condensed financial statements. ​ ​ 7 Table of Contents ​ EDGEWISE THERAPEUTICS, INC. Condensed Statements of Stockholders’ Equity (In thousands, except share data) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Additional ​ Other Comprehensive ​ Accumulated ​ ​ ​ ​ ​ Shares ​ Amount ​ Paid-In Capital ​ Income (Loss) ​ Deficit ​ Total Balance as of December 31, 2024 94,838,466 ​ $ 9 ​ $ 837,363 ​ $ 420 ​ $ ( 378,576 ) ​ $ 459,216 Exercise of stock options 367,217 ​ — ​ 2,261 ​ ​ — ​ — ​ 2,261 Stock-based compensation — ​ — ​ 9,059 ​ ​ — ​ — ​ 9,059 Other comprehensive loss ​ — ​ — ​ — ​ ​ ( 19 ) ​ — ​ ( 19 ) Net loss ​ — ​ — ​ — ​ ​ — ​ ( 40,798 ) ​ ( 40,798 ) Balance as of March 31, 2025 95,205,683 ​ $ 9 ​ $ 848,683 ​ $ 401 ​ $ ( 419,374 ) ​ $ 429,719 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Additional ​ Other Comprehensive ​ Accumulated ​ ​ ​ ​ ​ Shares ​ Amount ​ Paid-In Capital ​ Income (Loss) ​ Deficit ​ Total Balance as of December 31, 2025 ​ 106,249,579 ​ $ 10 ​ $ 1,067,941 ​ $ 677 ​ $ ( 546,371 ) ​ $ 522,257 Exercise of stock options and vesting of restricted stock 1,231,943 ​ — ​ 12,173 ​ ​ — ​ — ​ 12,173 Stock-based compensation — ​ — ​ 8,715 ​ ​ — ​ — ​ 8,715 Other comprehensive loss — ​ — ​ — ​ ​ ( 929 ) ​ — ​ ( 929 ) Net loss — ​ — ​ — ​ ​ — ​ ( 49,013 ) ​ ( 49,013 ) Balance as of March 31, 2026 107,481,522 ​ $ 10 ​ $ 1,088,829 ​ $ ( 252 ) ​ $ ( 595,384 ) ​ $ 493,203 ​ The accompanying notes are an integral part of these condensed financial statements. ​ 8 Table of Contents EDGEWISE THERAPEUTICS, INC. Condensed Statements of Cash Flows (In thousands) (Unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ ​ 2026 ​ ​ ​ 2025 Cash flows from operating activities ​ ​ ​ ​ ​ Net loss ​ $ ( 49,013 ) ​ ​ ​ $ ( 40,798 ) Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ Depreciation ​ ​ 537 ​ 513 Stock-based compensation ​ 8,715 ​ 9,059 Accretion of discount on marketable securities, net ​ ​ ( 1,013 ) ​ ​ ( 1,923 ) Amortization of right-of-use asset ​ ​ 53 ​ ​ 41 Changes in assets and liabilities: ​ ​ ​ ​ Prepaid expenses and other assets ​ 3,045 ​ ( 1,478 ) Accounts payable ​ 1,446 ​ 2,858 Accrued compensation ​ ( 6,752 ) ​ ( 6,081 ) Accrued other expenses and other liabilities ​ 635 ​ 122 Lease liability ​ ( 196 ) ​ ​ ( 179 ) Net cash used in operating activities ​ ( 42,543 ) ​ ​ ( 37,866 ) ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities ​ ​ ​ ​ ​ Purchases of marketable securities ​ ( 110,152 ) ​ ( 122,180 ) Sales of marketable securities ​ ​ 3,966 ​ ​ 15,000 Maturities of marketable securities ​ ​ 108,879 ​ ​ 151,122 Purchases of property and equipment ​ ( 260 ) ​ ( 44 ) Net cash provided by investing activities ​ 2,433 ​ 43,898 ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities ​ ​ ​ ​ Exercise of stock options ​ 12,173 ​ 2,261 Payment of deferred offering costs ​ ​ — ​ ​ ( 38 ) Net cash provided by financing activities ​ 12,173 ​ 2,223 ​ ​ ​ ​ ​ ​ ​ Net change in cash and cash equivalents ​ ( 27,937 ) ​ 8,255 Cash and cash equivalents at beginning of period ​ 61,148 ​ 41,666 Cash and cash equivalents at end of period ​ $ 33,211 ​ $ 49,921 Supplemental disclosures of non-cash investing and financing activities: ​ ​ ​ ​ Property and equipment purchases included in accounts payable and accrued other expenses ​ $ 41 ​ $ — Deferred offering costs included in accounts payable and accrued other expenses ​ $ — ​ $ 395 ​ The accompanying notes are an integral part of these condensed financial statements. 9 Table of Contents EDGEWISE THERAPEUTICS, INC. Notes to Condensed Financial Statements (Unaudited) NOTE 1 DESCRIPTION OF BUSINESS Organization and Description of Business Edgewise Therapeutics, Inc. (the Company) was incorporated as a Delaware corporation in May 2017, and is headquartered in Boulder, Colorado. 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 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. Risks and Uncertainties 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, 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 $ 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 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. Additionally, on May 10, 2024, the Company filed a prospectus supplement to the shelf registration statement and entered into a sales agreement with Leerink Partners LLC (Leerink Sales Agreement) under which the Company may offer and sell shares of common stock, having aggregate sales proceeds of up to $ 175.0 million from time to time, through an “at the market offering” program (Leerink ATM) under which Leerink Partners LLC will act as sales agent. The Company has not yet offered or sold any shares of common stock related to the Leerink ATM. ​ On April 3, 2025, the Company closed an underwritten registered direct offering of 9,935,419 shares of common stock at a public offering price of $ 20.13 per share (April 2025 Offering). The aggregate gross proceeds from the April 2025 Offering were $ 200.0 million, and the net proceeds were $ 187.1 million, after deducting underwriting discounts and commissions of $ 12.0 million and offering expenses of $ 0.9 million. ​ The Company’s ability to secure capital is dependent upon success in developing its technology and product candidates. The Company cannot provide assurance that additional capital will be available on acceptable terms, if at all. 10 Table of Contents The issuance of additional equity or debt securities will likely result in substantial dilution to the Company’s stockholders. Should additional capital not be available to the Company in the near term, or not be available on acceptable terms, the Company may be unable to realize value from the Company’s assets or discharge liabilities in the normal course of business, which may, among other alternatives, cause the Company to delay, substantially reduce, or discontinue operational activities to conserve cash balances, which could have a material adverse effect on the Company’s ability to achieve its intended business objectives. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. 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 $ 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, 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. These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and include all adjustments consisting of normal recurring adjustments that management believes are necessary for a fair presentation of the periods presented and are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. Marketable Securities, Available for Sale All marketable securities have been classified as “available-for-sale” and are carried at fair value, based upon quoted market prices. The Company considers its available-for-sale portfolio as available for use in current operations. Accordingly, the Company classifies its investments as short-term marketable securities, even though the stated maturity date may be one year or more beyond the current balance sheet date. 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. The cost of securities sold is based on the specific-identification method. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. In accordance with the Company’s investment policy, management invests in money market funds, corporate debt securities, commercial paper, asset-backed securities and government securities. The Company has not experienced any realized losses on its deposits of cash, cash equivalents, and marketable securities since inception. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 11 Table of Contents 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 March 31, 2026 ​ ​ Fair Value ​ Amortized ​ Unrealized ​ Unrealized ​ Fair Market ​ ​ ​ ​ Hierarchy ​ ​ ​ Cost Basis ​ ​ ​ Gains ​ ​ ​ Losses ​ ​ ​ Value Cash equivalents: ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds Level 1 ​ $ 32,999 ​ $ — ​ $ — ​ $ 32,999 Marketable securities, available for sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset-backed securities Level 2 ​ 56,984 ​ ​ 17 ​ ​ ( 24 ) ​ 56,977 Corporate debt securities Level 2 ​ 181,820 ​ ​ 44 ​ ​ ( 221 ) ​ 181,643 Commercial paper Level 2 ​ 20,209 ​ ​ 2 ​ ​ ( 36 ) ​ 20,175 U.S. government treasury and agency securities ​ Level 2 ​ 207,590 ​ ​ 62 ​ ​ ( 96 ) ​ 207,556 Total ​ ​ $ 499,602 ​ $ 125 ​ $ ( 377 ) ​ $ 499,350 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2025 ​ ​ Fair Value ​ Amortized ​ Unrealized ​ Unrealized ​ Fair Market ​ ​ Hierarchy ​ ​ ​ Cost Basis ​ ​ ​ Gains ​ ​ ​ Losses ​ ​ ​ Value Cash equivalents: ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds Level 1 ​ $ 60,965 ​ $ — ​ $ — ​ $ 60,965 Marketable securities, available for sale: ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset-backed securities Level 2 ​ 55,426 ​ 78 ​ — ​ 55,504 Corporate debt securities Level 2 ​ 193,479 ​ 270 ​ ( 5 ) ​ 193,744 Commercial paper ​ Level 2 ​ ​ 10,424 ​ ​ 7 ​ ​ — ​ ​ 10,431 U.S. government treasury and agency securities ​ Level 2 ​ ​ 208,955 ​ ​ 327 ​ ​ — ​ ​ 209,282 Total ​ ​ $ 529,249 ​ $ 682 ​ $ ( 5 ) ​ $ 529,926 ​ The Company’s money market funds are classified as Level 1 because they are valued using quoted market prices. Investments in asset-backed securities, corporate debt securities, commercial paper and U.S. government treasury and agency securities, and supranational and sovereign government securities have been classified as Level 2 as they are valued using quoted prices in less active markets or other directly or indirectly observable inputs. Fair values of asset-backed securities, corporate debt securities, commercial paper, and U.S. government treasury and agency securities were derived based on input of market prices from multiple sources at each reporting period. With regard to commercial paper, all of the securities had high credit ratings and one year or less to maturity; therefore, fair value was derived from accretion of purchase price to face value over the term of maturity or quoted market prices for similar instruments if available. There were no transfers of financial assets between Level 1, Level 2, or Level 3, during the periods presented. 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 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 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 12 Table of Contents 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 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 . The total number of shares of preferred stock authorized was 200,000,000 . All shares of the Company’s capital stock have a par value of $ 0.0001 per share. Common stockholders are entitled to dividends if and when declared by the board of directors of the Company and after any convertible preferred share dividends are fully paid. The holder of each share of common stock is entitled to one vote. NOTE 4 STOCK-BASED COMPENSATION AWARDS Equity Incentive Plans In March 2021, the Company’s board of directors adopted, and its stockholders approved, the Company’s 2021 Equity Incentive Plan (2021 Plan), which became effective in March 2021 in connection with the IPO. Upon adoption of the 2021 Plan, the Company restricted the grant of future equity awards under its 2017 Equity Incentive Plan, as amended and restated (2017 Plan). The 2021 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company’s employees and any of its parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units (RSUs), stock appreciation rights, performance units, and performance shares to its employees, directors, and consultants and its subsidiary corporations’ employees and consultants. The vesting of stock options is stated in each individual grant agreement, which is generally four years . Options granted expire 10 years after the date of grant. 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 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. 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 March 31, 2026, there were 7,909,448 shares of common stock available for future issuance under the 2021 Plan. ​ ​ ​ 13 Table of Contents Inducement Equity Incentive Plan Effective August 10, 2024, the Company’s board of directors adopted the Company’s 2024 Inducement Equity Incentive Plan (Inducement Plan) and, subject to the adjustment provisions of the Inducement Plan, reserved 2,000,000 shares of the Company’s common stock for issuance pursuant to equity awards granted under the Inducement Plan. The Inducement Plan was adopted without stockholder approval pursuant to the applicable The Nasdaq Stock Market LLC’s (Nasdaq) Listing Rules. The Inducement Plan provides for the grant of equity-based awards, including nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, and performance awards, and its terms are substantially similar to the 2021 Plan, including with respect to treatment of equity awards in the event of a “merger” or “change in control” as defined under the Inducement Plan, but with such other terms and conditions intended to comply with the Nasdaq inducement award exception or to comply with the Nasdaq acquisition and merger exception. In accordance with the Nasdaq Listing Rules, awards under the Inducement Plan may only be made to individuals not previously employees or non-employee directors of the Company (or following such individuals’ bona fide period of non-employment with the Company), as an inducement material to the individuals’ entry into employment with the Company, or, to the extent permitted by the Nasdaq Listing Rules, in connection with a merger or acquisition. The vesting of stock options is stated in each individual grant agreement, which is generally four years , and expires 10 years after the date of grant. 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 March 31, 2026, there were 688,500 shares available for future issuance under the Inducement Plan. Founder Stock Options On September 19, 2017, the Company granted one of its founders the option to purchase 1,795,880 shares of the Company’s common stock at an exercise price of $ 0.18 per share which vested monthly over a four-year period and expire 15 years after the date of grant. This grant is separate from the Company’s equity incentive plans discussed above. As of March 31, 2026, 1,147,365 options were both outstanding and exercisable. 2021 Employee Stock Purchase Plan The 2021 Employee Stock Purchase Plan (2021 ESPP) enables eligible employees of the Company to purchase shares of common stock at a discount. A total of 504,000 shares of the Company’s common stock were initially reserved for issuance pursuant to the 2021 ESPP. The number of shares available for issuance under the 2021 ESPP increases annually on the first day of each fiscal year beginning with the Company’s 2022 fiscal year, equal to the least of (1) 1,008,000 shares, (2) one percent ( 1 %) of the outstanding shares of 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 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. Contributions under the 2021 ESPP are limited to 15 % of an employee’s eligible compensation, IRS limitations, and a maximum of 6,000 shares of common stock during each offering period. 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 was allocated as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Research and development $ 5,097 $ 5,867 General and administrative ​ 3,618 ​ 3,192 Total stock-based compensation expense ​ $ 8,715 ​ $ 9,059 ​ ​ 14 Table of Contents NOTE 5 COMMITMENTS AND CONTINGENCIES Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. 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 months ended March 31, 2026 and no material legal proceedings are currently pending or threatened. Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters including, but not limited to, losses arising from breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. 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 March 31, 2026. ​ NOTE 6 NET LOSS PER SHARE Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, common stock options and unvested restricted stock units are considered to be potentially dilutive securities. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss was attributed entirely to common stockholders. As the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. 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 March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Numerator ​ ​ ​ ​ ​ ​ Net loss ​ $ ( 49,013 ) $ ( 40,798 ) Denominator ​ ​ ​ ​ Weighted-average shares outstanding used in computing net loss per share, basic and diluted ​ ​ 107,116,709 ​ ​ 95,130,053 Net loss per share, basic and diluted ​ $ ( 0.46 ) ​ $ ( 0.43 ) ​ 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 March 31, ​ ​ ​ 2026 ​ ​ ​ 2025 Options to purchase common stock ​ ​ 18,676,439 ​ ​ 16,776,912 Unvested restricted stock units ​ ​ 1,228,665 ​ ​ 670,137 Total ​ ​ 19,905,104 ​ ​ 17,447,049 ​ 15 Table of Contents NOTE 7 PROPERTY AND EQUIPMENT Property and equipment consisted of the following amounts (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ As of March 31, ​ As of December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Leasehold improvements ​ $ 9,825 ​ $ 9,646 Laboratory equipment ​ ​ 4,070 ​ ​ 4,070 Computers and software ​ ​ 296 ​ ​ 296 Furniture and fixtures ​ ​ 511 ​ ​ 511 Construction in process ​ ​ — ​ ​ 77 Property and equipment, at cost ​ ​ 14,702 ​ ​ 14,600 Less: accumulated depreciation ​ ​ ( 7,306 ) ​ ​ ( 6,769 ) Property and equipment, net ​ $ 7,396 ​ $ 7,831 ​ ​ 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 March 31, ​ As of December 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Accrued research and development costs ​ $ 7,367 ​ $ 7,161 Accrued other ​ ​ 1,188 ​ ​ 759 Total accrued other expenses ​ $ 8,555 ​ $ 7,920 ​ ​ ​ 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 February 26, 2026. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Operating expenses: ​ ​ ​ ​ ​ Contracted research expense ​ $ 23,942 ​ $ 21,298 Personnel expense ​ ​ 14,725 ​ ​ 10,624 Stock-based compensation expense ​ ​ 8,715 ​ ​ 9,059 Other segment expense (a) ​ ​ 6,196 ​ ​ 4,464 Depreciation ​ ​ 537 ​ ​ 514 Segment net loss ​ ​ ( 54,115 ) ​ ​ ( 45,959 ) ​ ​ ​ ​ ​ ​ ​ Reconciliation of net loss ​ ​ ​ ​ ​ ​ Interest income ​ ​ 5,102 ​ ​ 5,161 Net Loss ​ $ ( 49,013 ) ​ $ ( 40,798 ) a Other segment expense included in Segment net loss includes contracted administrative expenses, intellectual property fees, software costs, occupancy & equipment costs, and other overhead expenses . ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 16 Table of Contents