What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-14 compared with 2025-08-13 · 89 added, 77 removed, 276 unchanged (38% of the section changed)

26 unchanged sentences

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* Currently being investigated in chondrosarcoma, Ewing sarcoma, colorectal cancer, and certain other solid tumor types.

* Currently being investigated in chondrosarcoma, colorectal cancer, Ewing sarcoma, and certain other solid tumor types.

** Currently being investigated in patients with non-small cell lung cancer, or NSCLC, and head and neck squamous cell carcinoma, or HNSCC.

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In June 2021, based on the initial Phase 1 data results, we initiated a registration-enabling Phase 2 trial for the treatment of unresectable or metastatic conventional chondrosarcoma for which the United States Food and Drug Administration, or FDA, and the European Medicines Agency, or EMA, granted orphan drug designation in November 2021 and August 2022, respectively.

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

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

In November 2023, we announced interim efficacy and safety data from the cohort of the Phase 1/2 trial evaluating ozekibart (INBRX-109) in combination with Irinotecan, or IRI, and Temozolomide, or TMZ, for the treatment of advanced or metastatic, unresectable Ewing sarcoma.

Overall, ozekibart (INBRX-109) in combination with IRI/TMZ was well tolerated from a safety perspective.

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

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

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

This trial completed full enrollment in July 2025 and in October 2025, we announced the study met its primary endpoint of a statistically significant and clinically meaningful median PFS for patients with advanced or metastatic chondrosarcoma treated with ozekibart compared to placebo.

Ozekibart achieved a 52% reduction in the risk of disease progression or death compared to placebo (stratified Hazard Ratio 0.479;

P<0.0001), more than doubling median PFS to 5.52 months versus 2.66 months for placebo.

Importantly, ozekibart is the first investigational therapy to demonstrate a significant PFS benefit in a randomized trial for chondrosarcoma, a disease with no approved systemic options.

The benefit of ozekibart was consistent across all pre-specified subgroups, including patients with isocitrate dehydrogenase, or IDH, -wild-type and IDH-mutant tumors.

Other key secondary endpoints, including disease control rate (54% vs 27.5%), and delay to deterioration in pain and physical function, further supported the clinical benefit observed with ozekibart.

Ozekibart was generally well tolerated, with a manageable safety profile.

The most common treatment-related adverse events were fatigue, constipation, and nausea.

Hepatotoxicity, a known risk for this mechanism of action, occurs during the first treatment cycle and is in patients with underlying hepatic impairment.

One hepatotoxicity-related fatal event occurred early in the study, prior to the implementation of mitigation measures.

Over the course of the ChonDRAgon study, this risk was effectively mitigated by excluding patients with severe liver impairment and by implementing close monitoring during early treatment cycles, allowing for prompt management of liver enzyme elevations.

This approach resulted in a low overall incidence of treatment-related hepatic adverse events, 11.8% compared to 4.5% in the placebo arm, the majority of which were Grade 1 or 2 in severity.

We plan to submit to the FDA a biologics license application in the second quarter of 2026.

Colorectal adenocarcinoma

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.

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

Results demonstrated one complete response, or CR, three partial responses, or PR, and six cases of stable disease, or SD.

Durable disease control lasting ≥180 days was observed in 46.2% of patients, with a median PFS of 7.85 months.

All patients had received at least one prior line of systemic therapy (median:

Notably, the patient achieving a CR had undergone three prior lines of therapy, and two PRs occurred in patients who had failed prior FOLFIRI-based treatments.

Based on the initial results above, we initiated an expansion cohort enrolling 44 patients, as a fourth line of therapy for approximately 70% of patients and as a third line of therapy for approximately 30% of patients.

80% of patients had been previously treated with regimens containing irinotecan.

In October 2025, we announced interim results from this expansion cohort.

Efficacy, based on RECIST v1.1 criteria, was assessed in 26 evaluable patients as of the cutoff date of October 15, 2025, who had at least one post-baseline scan.

The results show a 23% overall response rate, or ORR, and an overall disease control rate of 92%.

Ozekibart, in combination with FOLFIRI, was well tolerated.

The most common treatment-emergent adverse events included anemia, diarrhea, nausea, and fatigue, with the majority being low-grade and consistent with the known safety profile of FOLFIRI.

Ewing sarcoma

Four of the 13 evaluable patients at that time had prior IRI exposure, including two out of the four responses.

ozekibart (INBRX-109) in combination with IRI/TMZ was well tolerated from a safety perspective.

Based on this preliminary data, the ongoing Phase 1/2 trial in the Ewing sarcoma cohort was expanded with an expectation of enrolling up to 50 patients.

In October 2025, we announced interim results from this expansion cohort.

Of the 33 patients recruited to date, more than half were third or fourth line patients.

Among the 25 evaluable patients based on the cutoff date of October 15, 2025, we observed a 64% ORR, and a disease control rate of 92%, with the majority of patients experiencing measurable tumor reduction.

Ozekibart in combination with IRI/TMZ was well tolerated.

The most common adverse events were diarrhea, nausea, anemia, and fatigue, all consistent with the known safety profile of IRI/TMZ.

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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Interest expense.

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 expense consists of interest on our 2025 Loan Agreement with Oxford during the three and nine months ended September 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 June 30, 2025 and June 30, 2024

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

JUNE 30, CHANGE

SEPTEMBER 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 (3,181) — (3,181) 100 %

3 unchanged sentences

Provision for income taxes — — — — %

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.

$ (35,256) $ (43,864) $ 8,608 (20) %

Research and Development Expense

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THREE MONTHS ENDED

JUNE 30, CHANGE

SEPTEMBER 30, CHANGE

2025 2024 ($) (%)

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Total research and development expenses $ 28,535 $ 38,893 $ (10,358) (27) %

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.

Research and development expenses decreased by $10.4 million from $38.9 million during the three months ended September 30, 2024 to $28.5 million during the three months ended September 30, 2025.

The overall decrease was primarily due to the following factors:

• 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.

• clinical trial expense increased by $0.2 million as a result of increased expenses related to our ongoing trials for ozekibart (INBRX-109) and INBRX-106, which were offset in part by decreased expenses following the termination of our INBRX-105 program during 2024;

• contract manufacturing expense decreased by $8.5 million, primarily due to significant expenses incurred for Phase 2 process development and manufacturing activities performed by one of our CDMO partners for our ozekibart (INBRX-109) program during the three months ended September 30, 2024;

• personnel-related expense decreased by $1.2 million due to a decrease in headcount during the three months ended September 30, 2025;

• other research and development expenses decreased by $0.7 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 following the decrease in headcount during the three months ended September 30, 2025.

G&A expenses decreased by $2.6 million from $7.9 million during the three months ended September 30, 2024 to $5.3 million during the three months ended September 30, 2025.

The overall decrease was primarily due to the following factors:

• 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.

• professional services-related expenses related to legal services decreased by $1.9 million, primarily attributable to the conclusion of legal proceedings;

• personnel-related expenses decreased by $0.5 million due to a decrease in headcount during the three months ended September 30, 2025.

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 $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 expense was $3.2 million during the three months ended September 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.

We did not incur any interest during the three months ended September 30, 2024 following the extinguishment of our outstanding debt in connection with the Merger.

Interest income.

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

During the three months ended September 30, 2025 and September 30, 2024, we earned $1.8 million and $2.9 million of interest income related to interest earned on our sweep and money market account balances, respectively.

Comparison of the Nine Months Ended September 30, 2025 and September 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

NINE MONTHS ENDED

SEPTEMBER 30, CHANGE

2025 2024 ($) (%)

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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.

License fee revenue during the nine months ended September 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 nine months ended September 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

NINE MONTHS ENDED

SEPTEMBER 30, CHANGE

2025 2024 ($) (%)

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Total research and development expenses $ 87,679 $ 170,376 $ (82,697) (49) %

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.

Research and development expenses decreased by $82.7 million from $170.4 million during the nine months ended September 30, 2024 to $87.7 million during the nine months ended September 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;

• clinical trial expense decreased by $10.1 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 decreases in 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 ahead of our data readout.

These decreases in expenses were offset in part by increases in our ongoing trials for INBRX-106, in which we opened additional sites and increased enrollment during the period;

• contract manufacturing expense decreased by $32.6 million primarily due to a decrease in expenses in the current period following the purchase of raw materials for our drug substance manufacturing and Phase 2 process development and manufacturing activities with one of our CDMO partners for our ozekibart (INBRX-109) program during the nine months ended September 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 $35.7 million, which was primarily related to $25.9 million in stock option expense recognized during the nine months ended September 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 nine months ended September 30, 2025;

• other research and development expenses decreased by $4.7 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 following the decrease in headcount during the nine months ended September 30, 2025.

G&A expenses decreased by $93.5 million from $111.2 million during the nine months ended September 30, 2024 to $17.7 million during the nine months ended September 30, 2025.

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

• personnel-related expenses decreased by $18.5 million, which was primarily related to $15.2 million in stock option expense recognized during the nine months ended September 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 nine months ended September 30, 2025;

• professional services-related expenses related to legal services, which decreased by $3.9 million, primarily attributable to the conclusion of legal proceedings.

1 unchanged sentence

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.

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

1 unchanged sentence

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.

We did not earn income or gains in connection with the Merger during the nine months ended September 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 expense was $9.0 million during the nine months ended September 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 expense was $13.5 million during the nine months ended September 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 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.

During the nine months ended September 30, 2025 and September 30, 2024, we earned $6.2 million and $8.9 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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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 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.

During the nine months ended September 30, 2025 our net loss was $107.2 million.

As of September 30, 2025, we had an accumulated deficit of $213.4 million and cash and cash equivalents of $153.1 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.

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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 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.

As of September 30, 2025, we had future minimum rental payments under these leases of $8.0 million, of which $2.8 million and $5.2 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 $22.3 million in our condensed consolidated balance sheets for expenditures incurred by CROs and CDMOs as of June 30, 2025.

We have recorded accrued expenses of approximately $20.4 million in our condensed consolidated balance sheets for expenditures incurred by CROs and CDMOs as of September 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 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.

As of September 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 $12.6 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):

SIX MONTHS ENDED JUNE 30,

NINE MONTHS ENDED SEPTEMBER 30,

Net cash used in operating activities $ (99,672) $ (150,689)

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Operating Activities

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.

Net cash used in operating activities was $99.7 million during the nine months ended September 30, 2025 and consisted primarily of a net loss of $107.2 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 $1.8 million, stock-based compensation expense of $8.4 million, depreciation and amortization of $1.9 million, and non-cash lease expense of $1.3 million.

Changes in operating assets and liabilities also contributed to the cash used in operating activities, including the decrease in operating lease liability of $1.1 million as a result of lease payments made throughout the period, an increase in accounts receivables and other receivables of $0.4 million, and decreases in accounts payable of $2.5 million and accrued expenses of $2.9 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.

These uses of cash were offset in part by a decrease in prepaid expenses and other current assets of $1.0 million as a result of the timing of payments to our CRO and CDMO partners during the period.

Net cash used in operating activities was $150.7 million during the nine months ended September 30, 2024 and consisted primarily of a net income of $1.7 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 $55.5 million, depreciation and amortization of $1.6 million and non-cash lease expense of $1.4 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.

Changes in operating assets and liabilities also contributed to the cash used in operating activities, primarily related to an increase in other non-current assets of $3.5 million due to prepayments and additional deposits we made to our CRO partners during the period.

Additionally, the operating lease liability decreased by $1.3 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 $35.9 million and an increase in accounts payable of $21.0 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 $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.

Net cash used in investing activities was $28,000 and $2.6 million during the nine months ended September 30, 2025 and September 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 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.

Net cash provided by financing activities was $100.2 million during the nine months ended September 30, 2025, which consisted primarily of net proceeds of $99.8 million from the 2025 Loan Agreement which we entered into in January 2025, in addition to $0.4 million from the proceeds from the exercise of stock options.

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

Critical Accounting Estimates and Policies

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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