What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-13 compared with 2025-05-14 · 130 added, 51 removed, 223 unchanged (45% of the section changed)

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Refer to Note 1 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for further discussion of the underlying basis used to prepare the consolidated financial statements.

The operating results presented our historical financial statements prior to the Merger and in connection with the Separation and the Merger may not be indicative of our results following the Merger and Separation.

The operating results presented in our historical financial statements prior to the Merger and in connection with the Separation and the Merger may not be indicative of our results following the Merger and Separation.

Current Clinical Pipeline

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The primary endpoint for this Phase 2 trial is progression-free survival, or PFS.

Data from the registration-enabling Phase 2 trial in unresectable or metastatic conventional chondrosarcoma is expected during the third quarter of 2025.

This trial completed full enrollment in July 2025.

Data from the registration-enabling Phase 2 trial in unresectable or metastatic conventional chondrosarcoma are expected by late October 2025.

Ewing sarcoma

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Based on this preliminary data, the ongoing Phase 1/2 trial in the Ewing sarcoma cohort was expanded.

Interim data on this cohort are anticipated during the second half of 2025.

Interim data on this cohort will be announced with the chondrosarcoma data, which are anticipated by late October 2025.

Colorectal adenocarcinoma

In January 2025, we announced interim efficacy and safety data from the cohort of the Phase 1 trial evaluating ozekibart (INBRX-109) in combination with FOLFIRI for the treatment of advanced or metastatic, unresectable colorectal adenocarcinoma, or CRC.

Efficacy was assessed in 10 of the 13 patients evaluable as of the cutoff date of

December 2, 2024, who received at least one dose of ozekibart, based on RECIST v1.1 criteria.

In January 2025, we announced interim efficacy and safety data from the cohort of the Phase 1/2 trial evaluating ozekibart (INBRX-109) in combination with FOLFIRI for the treatment of advanced or metastatic, unresectable

colorectal adenocarcinoma, or CRC.

Efficacy was assessed in 10 of the 13 patients evaluable as of the cutoff date of December 2, 2024, who received at least one dose of ozekibart, based on RECIST v1.1 criteria.

We expanded recruitment of this cohort by 50 patients as a result of these preliminary findings in order to validate these findings in a more uniform patient population.

Data on this cohort are anticipated in the third quarter of 2025.

Interim data on this cohort will be announced with the chondrosarcoma data, which are anticipated by late October 2025.

INBRX-106 is a precisely engineered hexavalent sdAb-based therapeutic candidate targeting OX40, designed to be an optimized agonist of this co-stimulatory receptor.

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Primary endpoints for this cohort is objective response rate, or ORR, disease control rate, or DCR, duration of response, or DOR, and safety.

In addition, a new cohort was initiated in NSCLC to evaluate chemotherapy when used in conjunction with the INBRX-106 and Keytruda combination.

In addition, the NSCLC cohort evaluating patients dosed with chemotherapy in conjunction with the INBRX-106 and Keytruda combination is ongoing.

The primary endpoint for this cohort is safety.

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Other Income (Expense)

Gain related to transaction with Acquirer.

Gain related to transaction with Acquirer consists of our gain recorded in connection with the completion of the Merger during the second quarter of 2024.

We do not expect future income or gains in connection with the Merger in future periods.

Interest expense.

Interest expense consists of interest on our 2025 Loan Agreement with Oxford during the three months ended March 31, 2025 and on our former loans with Oxford incurred prior to the Merger in 2024, upon which the outstanding debt was assumed by the Acquirer.

Interest expense consists of interest on our 2025 Loan Agreement with Oxford during the three and six months ended June 30, 2025 and on our former loans with Oxford incurred prior to the Merger in 2024, upon which the outstanding debt was assumed by the Acquirer.

Interest income.

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Results of Operations

Comparison of the Three Months Ended March 31, 2025 and March 31, 2024

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

The following table summarizes our condensed consolidated results of operations for each of the periods indicated (in thousands, except percentages):

THREE MONTHS ENDED

MARCH 31, CHANGE

JUNE 30, CHANGE

2025 2024 ($) (%)

License fee revenue $ 1,300 $ 100 $ 1,200 1,200 %

Total revenue 1,300 100 1,200 1,200 %

Operating expense:

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Other income (expense)

Gain related to transaction with Acquirer — 2,021,498 (2,021,498) 100 %

Interest expense (3,141) (5,361) 2,220 (41) %

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Other income (expense), net (246) 33 (279) (845) %

Total other expense

(410) (4,885) 4,475 (92) %

$ (43,311) $ (78,710) $ 35,399 (45) %

Total other income (expense) (1,263) 2,018,911 (2,020,174) (100) %

Provision for income taxes 2 2 — — %

Net income (loss) $ (28,654) $ 1,858,011 $ (1,886,665) (102) %

License Fee Revenue

License fee revenue during the three months ended June 30, 2025 was $1.3 million and consisted of revenue related to our License and Assignment Agreement with Scithera, Inc., or the Scithera License Agreement, which we recognized following the completion of the transfer of all licenses, related materials, and know-how.

License fee revenue during the three months ended June 30, 2024 was $0.1 million and consisted of revenue related to our Option and License Agreement with Regeneron Pharmaceuticals, Inc., or the 2020 Regeneron Agreement, which we recognized following the grant of a six-month extension of the option term.

Research and Development Expense

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THREE MONTHS ENDED

MARCH 31, CHANGE

JUNE 30, CHANGE

2025 2024 ($) (%)

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Total research and development expenses $ 22,267 $ 67,632 $ (45,365) (67) %

Research and development expenses decreased by $27.0 million from $63.9 million during the three months ended March 31, 2024 to $36.9 million during the three months ended March 31, 2025.

Research and development expenses decreased by $45.3 million from $67.6 million during the three months ended June 30, 2024 to $22.3 million during the three months ended June 30, 2025.

The overall decrease was primarily due to the following factors:

• clinical trial expense decreased by $6.5 million, primarily due to decreased expenses following the spin-off of our INBRX-101 program, which occurred during the second quarter of 2024;

• contract manufacturing expense decreased by $16.7 million, primarily due to decreased expenses following the spin-off of our INBRX-101 program, which occurred during the second quarter of 2024;

• personnel-related expense decreased by $3.9 million, which was primarily related to a decrease in stock compensation expense as a result of fewer stock options outstanding under the 2024 Plan following the

termination of the 2017 Plan in connection with the Merger and a decrease in headcount during the three months ended March 31, 2025.

G&A expenses decreased by $4.0 million from $10.0 million during the three months ended March 31, 2024 to $6.0 million during the three months ended March 31, 2025.

• clinical trial expense decreased by $3.8 million, primarily due to decreased expenses following the spin-off of our INBRX-101 program, which occurred during the second quarter of 2024, as well as decreased expenses in our registration-enabling Phase 2 trial for ozekibart (INBRX-109) for the treatment of unresectable or metastatic conventional chondrosarcoma as the trial approached completion of enrollment;

• contract manufacturing expense decreased by $7.5 million, primarily due to a decrease in expenses in the current period following the purchase of raw materials for our drug substance manufacturing from one of our CDMO partners during the three months ended June 30, 2024;

• personnel-related expense decreased by $30.6 million, which was primarily related to $25.9 million in stock option expense recognized during the three months ended June 30, 2024 upon the acceleration of outstanding options in connection with the close of the Merger, in addition to a decrease in headcount during the three months ended June 30, 2025;

• other research and development expenses decreased by $3.4 million, which was primarily attributable to a decrease in certain non-recurring sponsored research and preclinical activities, as well as a decrease in purchases of lab supplies and travel expenses related to the decrease in headcount during the three months ended June 30, 2025.

G&A expenses decreased by $86.9 million from $93.4 million during the three months ended June 30, 2024 to $6.4 million during the three months ended June 30, 2025.

The overall decrease was primarily due to the following factors:

• personnel-related expenses decreased by $1.2 million, which was primarily related to a decrease in stock compensation expense as a result of less stock options outstanding under the 2024 Plan following the termination of the 2017 Plan in connection with the Merger;

• professional services-related expenses related to legal services, which decreased by $0.9 million, primarily attributable to the conclusion of legal proceedings and a decrease in general corporate expenses;

• a decrease in expenses related to the Merger of $0.6 million incurred during three months ended March 31, 2024.

• a decrease in expenses related to the Merger of $67.5 million, which consisted of legal, advisory, consulting services performed in connection to the transaction and SEC filing fees in connection with filings related to the transaction during the three months ended June 30, 2024;

• personnel-related expenses decreased by $16.8 million, which was primarily related to $15.2 million in stock option expense recognized during the three months ended June 30, 2024 upon the acceleration of outstanding options in connection with the close of the Merger;

• professional services-related expenses related to legal services, which decreased by $1.2 million, primarily attributable to the conclusion of legal proceedings.

Other Income (Expense)

Gain related to transaction with Acquirer.

During the three months ended June 30, 2024, we earned $2.0 billion of other income, consisting of gains recorded in connection with the completion of the Merger.

We recorded a gain of $1.7 billion related to Merger consideration for our outstanding common stock, warrants, and stock options, in addition to $211.3 million related to the extinguishment of our Amended 2020 Loan Agreement assumed by the Acquirer.

In addition to the Acquirer assuming our outstanding debt, the Acquirer assumed outstanding assets and liabilities related to INBRX-101 upon the transaction, resulting in a gain of $14.5 million.

The Acquirer also reimbursed us for or paid on our behalf $68.0 million of transaction costs related to the Merger, resulting in a gain.

We did not earn income or gains in connection with the Merger during the three months ended June 30, 2025 and do not expect to in future periods.

Interest expense.

Interest expense was $8.1 million during the three months ended March 31, 2024, all of which related to interest incurred and the amortization of debt discounts related to the Amended 2020 Loan Agreement, under which we had $200.0 million in outstanding principal during the period.

Interest expense was $2.7 million during the three months ended March 31, 2025, all of which related to interest incurred and the amortization of debt discounts related to the 2025 Loan Agreement, under which we had $100.0 million in outstanding principal during the period.

Interest expense was $5.4 million during the three months ended June 30, 2024, all of which related to interest incurred and the amortization of debt discounts related to the Amended 2020 Loan Agreement, under which we had $200.0 million in outstanding principal during the period prior to its extinguishment upon the Merger.

Interest expense was $3.1 million during the three months ended June 30, 2025, all of which related to interest incurred and the amortization of debt discounts related to the 2025 Loan Agreement, under which we had $100.0 million in outstanding principal during the period.

Interest income.

During the three months ended March 31, 2025 and March 31, 2024, we earned $2.3 million and $3.3 million of interest income related to interest earned on our sweep and money market account balances, respectively.

During the three months ended June 30, 2025 and June 30, 2024, we earned $2.1 million and $2.7 million of interest income related to interest earned on our sweep and money market account balances, respectively.

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

The following table summarizes our condensed consolidated results of operations for each of the periods indicated (in thousands, except percentages):

SIX MONTHS ENDED

JUNE 30, CHANGE

2025 2024 ($) (%)

License fee revenue $ 1,300 $ 100 $ 1,200 1,200 %

Total revenue 1,300 100 1,200 1,200 %

Operating expense:

Research and development 59,144 131,483 (72,339) (55) %

General and administrative 12,446 103,340 (90,894) (88) %

Total operating expense 71,590 234,823 (163,233) (70) %

Loss from operations (70,290) (234,723) 164,433 (70) %

Other income (expense)

Gain related to transaction with Acquirer — 2,021,498 (2,021,498) 100 %

Interest expense (5,830) (13,491) 7,661 (57) %

Interest income 4,453 6,045 (1,592) (26) %

Other expense, net

(296) (26) (270) 1038 %

Total other income (expense)

(1,673) 2,014,026 (2,015,699) (100) %

Provision for income taxes 2 2 — — %

Net income (loss)

$ (71,965) $ 1,779,301 $ (1,851,266) (104) %

License Fee Revenue

License fee revenue during the six months ended June 30, 2025 was $1.3 million and consisted of revenue related to the Scithera License Agreement which we recognized following the completion of the transfer of all licenses, related materials, and know-how.

License fee revenue during the six months ended June 30, 2024 was $0.1 million and consisted of revenue related to the 2020 Regeneron Agreement which we recognized following the grant of a six-month extension of the option term.

Research and Development Expense

The following table sets forth the primary external and internal research and development expenses (in thousands, except percentages):

SIX MONTHS ENDED

JUNE 30, CHANGE

2025 2024 ($) (%)

External expenses:

Clinical trials $ 17,347 $ 27,648 $ (10,301) (37) %

Contract manufacturing 12,378 36,494 $ (24,116) (66) %

Other external research and development 4,594 6,602 (2,008) (30) %

Internal expenses:

Personnel 17,963 52,444 (34,481) (66) %

Equipment, depreciation, and facility 5,146 4,617 529 11 %

Other internal research and development 1,716 3,678 (1,962) (53) %

Total research and development expenses $ 59,144 $ 131,483 $ (72,339) (55) %

Research and development expenses decreased by $72.3 million from $131.5 million during the six months ended June 30, 2024 to $59.1 million during the six months ended June 30, 2025.

The overall decrease was primarily due to the following factors:

• clinical trial expense decreased by $10.3 million, primarily due to decreased expenses following the spin-off of our INBRX-101 program, which occurred during the second quarter of 2024, and the termination of our INBRX-105 program during 2024, in addition to decreased expenses in our registration-enabling Phase 2 trial for ozekibart (INBRX-109) for the treatment of unresectable or metastatic conventional chondrosarcoma as the trial approached completion of enrollment;

• contract manufacturing expense decreased by $24.1 million primarily due to a decrease in expenses in the current period following the purchase of raw materials for our drug substance manufacturing from one of our CDMO partners during the six months ended June 30, 2024, as well as decreased expenses following the spin-off of our INBRX-101 program, which occurred during the second quarter of 2024;

• personnel-related expense decreased by $34.5 million, which was primarily related to $25.9 million in stock option expense recognized during the six months ended June 30, 2024 upon the acceleration of outstanding options in connection with the close of the Merger, in addition to a decrease in headcount during the six months ended June 30, 2025;

• other research and development expenses decreased by $4.0 million, which was primarily attributable to a decrease in certain non-recurring sponsored research and preclinical activities, as well as a decrease in purchases of lab supplies and travel expenses related to the decrease in headcount during the six months ended June 30, 2025.

G&A expenses decreased by $90.9 million from $103.3 million during the six months ended June 30, 2024 to $12.4 million during the six months ended June 30, 2025.

The overall decrease during the six months ended June 30, 2025, was primarily due to the following factors:

• expenses related to the Merger of $68.1 million, consisting of legal, advisory, and consulting services performed in connection to the transaction, and SEC filing fees in connection with filings related to the transaction during the six months ended June 30, 2024;

• personnel-related expenses decreased by $18.1 million, which was primarily related to $15.2 million in stock option expense recognized during the six months ended June 30, 2024 upon the acceleration of outstanding options in connection with the close of the Merger;

• professional services-related expenses related to legal services, which decreased by $2.0 million, primarily attributable to the conclusion of legal proceedings.

Other Income (Expense)

Gain related to transaction with Acquirer.

During the six months ended June 30, 2024, we earned $2.0 billion of other income, consisting of gains recorded in connection with the completion of the Merger.

In addition to the Acquirer assuming our outstanding debt, the Acquirer assumed outstanding assets and liabilities related to INBRX-101 upon the transaction, resulting in a gain of $14.5 million.

The Acquirer also reimbursed us for or paid on our behalf $68.0 million of transaction costs related to the Merger, resulting in a gain.

We did not earn income or gains in connection with the Merger during the six months ended June 30, 2025 and do not expect to in future periods.

Interest expense.

Interest expense was $13.5 million during the six months ended June 30, 2024, all of which related to interest incurred and the amortization of debt discounts related to the Amended 2020 Loan Agreement, under which we had $200.0 million in outstanding principal during the period prior to its extinguishment upon the Merger.

Interest expense was $5.8 million during the six months ended June 30, 2025, all of which related to interest incurred and the amortization of debt discounts related to the 2025 Loan Agreement, under which we had $100.0 million in outstanding principal during the period.

Interest income.

During the six months ended June 30, 2025 and June 30, 2024, we earned $4.5 million and $6.0 million, respectively, of interest income related to interest earned on our sweep and money market account balances.

Liquidity, Capital Resources and Financial Condition

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As of the date of this Quarterly Report, sources of capital raised to fund our operations have been comprised of the sale of equity securities, borrowings under our prior loan and security agreements, payments received from commercial partners for licensing rights to our therapeutic candidates under development, grants, and proceeds from the sale and issuance of convertible promissory notes.

In January 2025, we entered into the 2025 Loan Agreement with Oxford, upon which we received gross proceeds of $100.0 million.

In January 2025, we entered into the 2025 Loan Agreement, upon which we received gross proceeds of $100.0 million.

The 2025 Loan Agreement provides for up to an additional $50.0 million to be funded upon our request and at Oxford’s sole discretion.

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Our net income or losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our clinical trials and our expenditures on other research and development activities, as well as the timing of other corporate transactions.

During the three months ended March 31, 2025 our net loss was $43.3 million.

As of March 31, 2025, we had an accumulated deficit of $149.4 million and cash and cash equivalents of $216.5 million.

During the six months ended June 30, 2025 our net loss was $72.0 million.

As of June 30, 2025, we had an accumulated deficit of $178.1 million and cash and cash equivalents of $186.6 million.

Based upon our current operating plans, we believe that our existing cash and cash equivalents will be sufficient to fund our operations for at least the next 12 months from the date of filing of this Quarterly Report.

Our forecast of the period through which our financial resources will be adequate to support our operations is a forward-looking

statement that involves risks and uncertainties, and actual results could vary materially.

Our forecast of the period through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially.

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

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As a result, we will incur significant pre-commercialization expenses in preparation for launch, the outcome of which is uncertain.

Additionally, if approved, we will incur significant commercialization expenses related to product sales, marketing, manufacturing, and distribution.

We also expect additional general and administrative expenses as we hire additional personnel and incur increased accounting, audit, legal, regulatory and compliance, investor and public relations expense to support our continued expansion.

Additionally, if approved and if we choose to commercialize, we would incur significant commercialization expenses related to product sales, marketing, manufacturing, and distribution.

Until such time we, if ever, can generate substantial product revenue, we expect to finance our cash needs through equity offerings, debt financings or other capital sources, including strategic licensing and collaborations, strategic transactions, or other similar arrangements and transactions, and from time to time, we engage in discussions with potential acquirers regarding the disposition of one or more of our therapeutic candidates.

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Our lease for our laboratory and office space expires in 2028, with an option to extend for an additional three years.

As of March 31, 2025, we had future minimum rental payments under these leases of $9.3 million, of which $2.7 million and $6.6 million are current and non-current, respectively.

As of June 30, 2025, we had future minimum rental payments under these leases of $8.7 million, of which $2.8 million and $5.9 million are current and non-current, respectively.

For more information regarding these lease agreements, refer to Note 8 to the unaudited condensed consolidated financial statements.

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These contracts are generally cancellable, with notice, at our option.

We have recorded accrued expenses of approximately $28.2 million in our condensed consolidated balance sheets for expenditures incurred by CROs and CDMOs as of March 31, 2025.

We have recorded accrued expenses of approximately $22.3 million in our condensed consolidated balance sheets for expenditures incurred by CROs and CDMOs as of June 30, 2025.

While these contracts are generally cancellable, some may contain specific activities that involve one or more noncancellable commitments.

Depending on the timing and reasoning of the exit, certain termination penalties may apply and can range from the cost of work performed to date up to twelve months of future committed manufacturing costs.

As of March 31, 2025, the noncancellable portion of these contracts totaled in aggregate, excluding amounts recorded in accounts payable and accrued expenses as of this date, approximately $3.3 million.

As of June 30, 2025, the noncancellable portion of these contracts totaled in aggregate, excluding amounts recorded in accounts payable and accrued expenses as of this date, approximately $4.0 million.

The noncancellable purchase commitments relate to future contract manufacturing of drug supply for one of our therapeutic candidates.

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The following table sets forth a summary of the net cash flow activity for each of the periods indicated (in thousands):

THREE MONTHS ENDED MARCH 31,

SIX MONTHS ENDED JUNE 30,

Net cash used in operating activities $ (65,848) $ (120,408)

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Operating Activities

Net cash used in operating activities was $35.9 million during the three months ended March 31, 2025 and consisted primarily of a net loss of $43.3 million, adjusted for non-cash items, including accretion on our debt discount and the non-cash portion of interest expense related to our debt of $0.5 million, stock-based compensation expense of $2.5 million, depreciation and amortization of $0.7 million and non-cash lease expense of $0.4 million.

Changes in operating assets and liabilities also contributed to the cash used in operating activities, including the decrease in operating lease liability of $0.2 million as a result of lease payments made throughout the period and the decrease in accounts payable of $0.4 million.

These uses of cash were offset by a decrease in accounts receivables and receivables from related parties of $0.2 million upon the collection of balances during the period, a decrease in prepaid expenses and other current assets of $0.7 million and an increase in accrued expenses of $2.9 million due to the timing of payments to our CRO and CDMO partners during the period.

Net cash used in operating activities was $63.1 million during the three months ended March 31, 2024 and consisted primarily of a net loss of $78.7 million, adjusted for non-cash items including accretion on our debt discount and the non-cash portion of interest expense related to our debt of $1.2 million, stock-based compensation expense of $6.4 million, depreciation and amortization of $0.4 million and non-cash lease expense of $0.5 million.

Changes in operating assets and liabilities also contributed to the cash used in operating activities, primarily related to an increase in prepaid expenses and other current assets of $2.4 million and an increase in other non-current assets of $1.4 million due to prepayments and additional deposits we made to our CRO partners during the quarter.

Additionally, receivables increased by $0.6 million as related to interest income earned in our interest-bearing bank accounts, while the operating lease liability decreased by $0.5 million as a result of lease payments made throughout the period.

These uses of cash were offset by increases in accrued expenses and other current liabilities of $8.0 million and an increase in accounts payable of $4.1 million due to the timing of payments to our CRO and CDMO partners during the period.

Net cash used in operating activities was $65.8 million during the six months ended June 30, 2025 and consisted primarily of a net loss of $72.0 million, adjusted for non-cash items, including accretion on our debt discount and the non-cash portion of interest expense related to our debt of $1.2 million, stock-based compensation expense of $5.2 million, depreciation and amortization of $1.3 million and non-cash lease expense of $0.9 million.

Changes in operating assets and liabilities also contributed to the cash used in operating activities, including the decrease in operating lease liability of $0.5 million as a result of lease payments made throughout the period, an increase in accounts receivables and other receivables of $0.6 million, and decreases in accounts payable of $1.0 million and accrued expenses of $1.4 million due to the timing of payments to our CRO and CDMO partners during the period.

These uses of cash were offset in part by a decrease in prepaid expenses and other current assets of $1.0 million.

Net cash used in operating activities was $120.4 million during the six months ended June 30, 2024 and consisted primarily of a net income of $1.8 billion, adjusted for non-cash items.

Non-cash adjustments primarily relate to gains recorded upon the Merger of $2.0 billion.

Other non-cash adjustments include accretion on our debt discount and the non-cash portion of interest expense related to our debt of $2.1 million, stock-based compensation expense of $52.6 million, depreciation and amortization of $0.8 million and non-cash lease expense of $0.9 million.

Changes in operating assets and liabilities also contributed to the cash used in operating activities, primarily related to an increase in prepaid expenses and other current assets of $3.4 million, excluding those related to INBRX-101 transferred to the Acquirer in the Merger, and an increase in other non-current assets of $3.6 million due to prepayments and additional deposits we made to our CRO partners during the period.

Additionally, receivables increased by $0.6 million as related to revenue and other income earned under the Transition Services Agreement, while the operating lease liability decreased by $1.0 million as a result of lease payments made throughout the period.

These uses of cash were offset by increases in accrued expenses and other current liabilities of $29.9 million and an increase in accounts payable of $21.5 million due to the timing of payments to our CRO and CDMO partners during the period, each of which excludes the liabilities related to INBRX-101 which were assumed by the Acquirer in the Merger.

Investing Activities

Net cash used in investing activities was $21,000 and $1.1 million during the three months ended March 31, 2025 and March 31, 2024, respectively, and was related to capital purchases of software and laboratory equipment.

Net cash used in investing activities was $21,000 and $2.3 million during the six months ended June 30, 2025 and June 30, 2024, respectively, and was related to capital purchases of software and laboratory equipment.

Financing Activities

Net cash provided by financing activities was $99.8 million during the three months ended March 31, 2025, which consisted of net proceeds from the 2025 Loan Agreement which we entered into in January 2025.

Net cash provided by financing activities was $38.7 million during the three months ended March 31, 2024, which consisted of proceeds from the exercise of stock options.

Net cash provided by financing activities was $99.8 million during the six months ended June 30, 2025, which consisted of net proceeds from the 2025 Loan Agreement which we entered into in January 2025.

Net cash provided by financing activities was $71.7 million during the six months ended June 30, 2024, which consisted of proceeds from the exercise of stock options.

Critical Accounting Estimates and Policies

Our management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.

The preparation of financial statements requires us to make estimates and judgements that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures.

We base our estimates on historical experience and on various other assumptions that we believe

to be reasonable under the circumstances.

The preparation of financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses and

related disclosures.

We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances.

Changes in estimates are reflected in reported results for the period in which they become known.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis