Inmune Bio, Inc. 10-Q

Item 1. Financial Statements INMUNE BIO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) June 30, 2026 December 31, 2025 ASSETS CURRENT ASSETS Cash and cash equivalents $ 18,411 $ 24,751 Research and development tax credit receivable 4,413 4,284 Other tax receivable 354 257 Prepaid expenses and other current assets 621 595 TOTAL CURRENT ASSETS 23,799 29,887 Equipment, net 1,262 955 Operating lease – right of use asset 1,247 914 Other assets 537 595 TOTAL ASSETS $ 26,845 $ 32,351 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 5,053 $ 7,768 Accounts payable and accrued liabilities – related parties 25 25 Operating lease, current liabilities 812 623 TOTAL CURRENT LIABILITIES 5,890 8,416 Long-term operating lease liability 593 411 TOTAL LIABILITIES 6,483 8,827 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS’ EQUITY Preferred stock, $ 0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding - - Common stock, $ 0.001 par value, 200,000,000 shares authorized, 27,653,789 and 26,585,258 shares issued and outstanding, respectively 28 27 Additional paid-in capital 237,688 233,271 Subscription receivable ( 814 ) - Accumulated other comprehensive loss ( 823 ) ( 737 ) Accumulated deficit ( 215,717 ) ( 209,037 ) TOTAL STOCKHOLDERS’ EQUITY 20,362 23,524 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 26,845 $ 32,351 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 1 INMUNE BIO INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share and per share amounts) (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 REVENUE $ - $ - $ - $ 50 OPERATING EXPENSES General and administrative 2,279 2,253 4,450 4,569 Research and development ( 803 ) 5,804 2,838 13,443 Impairment of acquired in-process research and development intangible assets - 16,514 - 16,514 Total operating expenses 1,476 24,571 7,288 34,526 LOSS FROM OPERATIONS ( 1,476 ) ( 24,571 ) ( 7,288 ) ( 34,476 ) OTHER INCOME, NET 203 113 608 279 NET LOSS $ ( 1,273 ) $ ( 24,458 ) $ ( 6,680 ) $ ( 34,197 ) Net loss per common share – basic and diluted $ ( 0.05 ) $ ( 1.05 ) $ ( 0.25 ) $ ( 1.49 ) Weighted average common shares outstanding – basic and diluted 26,718,507 23,298,455 26,652,250 22,899,539 COMPREHENSIVE LOSS Net loss $ ( 1,273 ) $ ( 24,458 ) $ ( 6,680 ) $ ( 34,197 ) Other comprehensive loss – foreign currency translation ( 96 ) ( 153 ) ( 86 ) ( 188 ) Total comprehensive loss $ ( 1,369 ) $ ( 24,611 ) $ ( 6,766 ) $ ( 34,385 ) The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 2 INMUNE BIO INC. CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 (In thousands, except share amounts) (Unaudited) Accumulated Additional Other Total Common Stock Paid-In Subscription Comprehensive Accumulated Stockholders’ Shares Amount Capital Receivable Gain (Loss) Deficit Equity Balance as of December 31, 2025 26,585,258 $ 27 $ 233,271 $ - $ ( 737 ) $ ( 209,037 ) $ 23,524 Stock-based compensation - - 1,497 - - - 1,497 Gain on foreign currency translation - - - - 10 - 10 Net loss - - - - - ( 5,407 ) ( 5,407 ) Balance as of March 31, 2026 26,585,258 27 234,768 - ( 727 ) ( 214,444 ) 19,624 Common stock issued for cash 370,417 - 584 - - - 584 Stock-based compensation - - 1,358 - - - 1,358 Exercise of warrants for cash 674,155 1 943 ( 814 ) - - 130 Exercise of stock options for cash 23,959 - 35 - - - 35 Loss on foreign currency translation - - - - ( 96 ) - ( 96 ) Net loss - - - - - ( 1,273 ) ( 1,273 ) Balance as of June 30, 2026 27,653,789 $ 28 $ 237,688 ( 814 ) $ ( 823 ) $ ( 215,717 ) $ 20,362 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 INMUNE BIO INC. CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 (In thousands, except share amounts) (Unaudited) Accumulated Additional Other Total Common Stock Paid-In Comprehensive Accumulated Stockholders’ Shares Amount Capital Loss Deficit Equity Balance as of December 31, 2024 22,280,451 $ 22 $ 195,754 $ ( 575 ) $ ( 163,104 ) $ 32,097 Stock-based compensation - - 2,076 - - 2,076 Sale of common stock for cash 649,860 1 5,272 - - 5,273 Exercise of warrants for cash 100 - 1 - - 1 Loss on foreign currency translation - - - ( 35 ) - ( 35 ) Net loss - - - - ( 9,739 ) ( 9,739 ) Balance as of March 31, 2025 22,930,411 23 203,103 ( 610 ) ( 172,843 ) 29,673 Stock-based compensation - - 1,534 - - 1,534 Sale of common stock for cash 3,654,847 4 22,267 - - 22,271 Loss on foreign currency translation - - - ( 153 ) - ( 153 ) Net loss - - ( 24,458 ) ( 24,458 ) Balance as of June 30, 2025 26,585,258 $ 27 $ 226,904 $ ( 763 ) $ ( 197,301 ) $ 28,867 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 INMUNE BIO INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Six Months Ended June 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 6,680 ) $ ( 34,197 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation 2,855 3,610 Gain on settlement of accounts payable ( 91 ) - Depreciation expense 118 - Impairment of acquired research and development intangible assets - 16,514 Changes in operating assets and liabilities: Research and development tax credit receivable ( 129 ) ( 424 ) Other tax receivable ( 97 ) ( 322 ) Prepaid expenses ( 26 ) ( 174 ) Other assets 58 ( 491 ) Accounts payable and accrued liabilities ( 2,624 ) 1,132 Accounts payable and accrued liabilities – related parties - 159 Deferred liabilities - ( 6 ) Operating lease liabilities 38 - Net cash used in operating activities ( 6,578 ) ( 14,199 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of equipment ( 430 ) ( 706 ) Net cash used in investing activities ( 430 ) ( 706 ) CASH FLOWS FROM FINANCING ACTIVITIES: Sale of common stock for cash 584 27,544 Exercise of warrants for cash 130 1 Exercise of stock options for cash 35 - Net cash provided by financing activities 749 27,545 Impact on cash from foreign currency translation ( 81 ) ( 188 ) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ( 6,340 ) 12,452 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 24,751 20,922 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 18,411 $ 33,374 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: Cash paid for income taxes $ - $ - Cash paid for interest $ - $ - SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES Right of use assets obtained in exchange for lease obligations $ 587 $ - The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 5 INMUNE BIO INC. NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Description of Business INmune Bio Inc. (the “Company” or “INmune Bio”) is a clinical stage biotechnology pharmaceutical company focused on developing and commercializing its product candidates to treat diseases where inflammation and immunology cause a dysfunctional immune system contributing to disease. INmune Bio has three product platforms. The CORDStrom product platform is a pooled, human umbilical cord mesenchymal stem cell product currently being developed to treat recessive dystrophic epidermolysis bullosa (“RDEB”). The DN-TNF product platform utilizes dominant-negative technology to selectively neutralize soluble TNF, a key driver of innate immune dysfunction and mechanistic target of many diseases and was used for its Alzheimer’s clinical trial (“XPro”). The Natural Killer Cell Priming Platform includes INKmune aimed at priming the patient’s NK cells to eliminate minimal residual disease in patients with cancer. Basis of Presentation The accompanying financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of INmune Bio Inc. and its subsidiaries. Intercompany transactions and balances have been eliminated. In the opinion of management, the interim financial information includes all normal recurring adjustments necessary for a fair statement of the results for the interim periods. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 30, 2026. Use of Estimates Preparing financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. Actual results and outcomes may differ from management’s estimates and assumptions. Significant Accounting Policies The Company’s significant accounting policies have not changed during the six months ended June 30, 2026 from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025. Going concern These unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred significant losses and negative cash flows from operations since inception and expects to incur additional losses until such time that it can generate significant revenue from the commercialization of its product candidates. During the six months ended June 30, 2026, the Company incurred a net loss of $ 6.7 million and had net cash flows used in operating activities of $ 6.6 million. Given the Company’s projected operating requirements and its existing cash and cash equivalents, the Company is projecting insufficient liquidity to sustain its operations through one year following the date that the financial statements are issued. These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern. 6 In response to these conditions, management is currently evaluating different strategies to obtain the required funding of future operations. Financing strategies may include, but are not limited to, the public or private sale of equity, debt financings or funds from other capital sources, such as government funding, collaborations, strategic alliances, divestment of non-core assets, or licensing arrangements with third parties. There can be no assurances that the Company will be able to secure additional financing, or if available, that it will be sufficient to meet its needs or on favorable terms. Because management’s plans have not yet been finalized and are not within the Company’s control, the implementation of such plans cannot be considered probable. As a result, the Company has concluded that management’s plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Basic and Diluted Loss per Share Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding due to the Company’s net loss position. At June 30, 2026, the Company had 9,659,882 potentially issuable shares of common stock upon the exercise of stock options and 3,060,706 potentially issuable shares of common stock upon the exercise of warrants. At December 31, 2025, the Company had 9,759,882 potentially issuable shares of common stock upon the exercise of stock options and 3,944,138 potentially issuable shares of common stock upon the exercise of warrants. Segment Information The Company has one primary business activity and operates in one reportable segment. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer who evaluates performance and makes operating decisions about allocating resources based on financial data presented on a consolidated basis. The measures of profitability and the significant segment expenses reviewed by the CODM are consistent with these financial statements and footnotes. Recently issued accounting pronouncements not yet adopted In November 2024, the FASB issued ASU 2024-03 related to the disaggregation of certain income statement expenses. The amendments in this update require public entities to disclose incremental information related to purchases of inventory, team member compensation and depreciation, which will provide investors the ability to better understand entity expenses and make their own judgements about entity performance. The amendments in this update are effective for fiscal years beginning after December 15, 2026. The standard permits adoption on either a prospective or retrospective basis. The Company currently plans to adopt this guidance on a prospective basis for the year ending December 31, 2027. Aside from these disclosure changes, we do not expect the amendments to have a material effect on our financial statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies the guidance in Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The standard permits either prospective or retrospective application. The Company currently plans to adopt ASU 2025-11 on a prospective basis for the year ending December 31, 2028. The Company is currently evaluating the impact of adopting ASU 2025-11 on our financial statements. 7 NOTE 2 – RESEARCH AND DEVELOPMENT ACTIVITY According to Australian tax law, the Company is allowed an R&D tax credit that reduces a company’s tax bill in Australia for expenses incurred in R&D subject to certain requirements. The Company’s Australian subsidiary submits R&D tax credit requests annually for research and development expenses incurred. At June 30, 2026 and December 31, 2025, the Company recorded a research and development tax credit receivable of $ 4,080,000 and $ 3,897,000 , respectively, for R&D expenses incurred in Australia. During the six months ended June 30, 2026, the Company received approximately $ 3.6 million in tax credit reimbursements from Australia. During July 2026, the Company received an additional $ 4.2 million in tax credit reimbursements from Australia. According to UK tax law, the Company is allowed an R&D tax credit that reduces a company’s tax bill in the UK for expenses incurred in R&D subject to certain requirements. At June 30, 2026 and December 31, 2025, the Company had a research and development tax credit receivable of $ 333,000 and $ 387,000 , respectively, for R&D expenses incurred in the UK. During the six months ended June 30, 2026, the Company received approximately $ 0.8 million in tax credit reimbursements from the UK. CORDStrom License Agreement During February 2025, the Company and Great Ormond Street Hospital for Children NHS Foundation Trust (“GOSH”) entered into a license agreement for the exclusive commercial use to clinical trial data associated with a GOSH study investigating the potential of CORDStrom to treat RDEB in pediatric patients (the “MissionEB study”). The Company owns the intellectual property covering CORDStrom, the investigational medicinal product used in the MissionEB study. In addition, the Company owns intellectual property and maintains trade secret protections covering the manufacturing of CORDStrom. With this license to the clinical trial data, the Company intends to prepare applications seeking regulatory approval of CORDStrom for treatment of pediatric RDEB from the FDA, EMA, and MHRA. Terms of the license agreement include a milestone payment of up to £ 6,000,000 (approximately $ 8.0 million as of June 30, 2026) due on the first to occur marketing authorization to be granted by the FDA, EMA or MHRA, which had not occurred as of June 30, 2026. Under the license agreement, the Company was previously obligated to provide CORDStrom for use in the MissionEB clinical study at no cost. During February 2026, the MissionEB study was formally closed, and the Company’s obligation to supply CORDStrom in connection with that study has terminated in accordance with the terms of the license agreement. As a result, the Company has no remaining contractual product supply obligations related to the MissionEB study under the license agreement. Xencor, Inc. License Agreement During October 2017, the Company entered into a license agreement with Xencor, Inc., as amended. Under the agreement, the Company obtained an exclusive, worldwide, royalty-bearing license to develop and commercialize products incorporating Xencor’s XPro protein technology targeting soluble tumor necrosis factor. The Company is obligated to pay a 5 % royalty on net sales of licensed products on a country-by-country and product-by-product basis for the later of the patent term or ten years following first commercial sale. INKmune License Agreement The Company is party to a license agreement with Immune Ventures, LLC (“Immune Ventures”), a related party, under which it obtained exclusive worldwide rights to certain intellectual property. The agreement provides for milestone payments upon the achievement of specified development and regulatory events and a 1 % royalty on future net sales. No sales have occurred under the license. As of June 30, 2026 and December 31, 2025, the Company recorded a $ 25,000 milestone payable to Immune Ventures, which is included in accounts payable and accrued liabilities – related parties. 8 NOTE 3 – FAIR VALUE MEASUREMENTS The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis: (in thousands) Total Quoted Price in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2026: Cash equivalents Money market funds $ 17,311 $ 17,311 $ - $ - Total cash equivalents $ 17,311 $ 17,311 $ - $ - (in thousands) Total Quoted Price in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2025: Cash equivalents Money market funds $ 24,298 $ 24,298 $ - $ - Total cash equivalents $ 24,298 $ 24,298 $ - $ - NOTE 4 – EQUIPMENT, NET Equipment, net consisted of the following (in thousands): June 30, 2026 December 31, 2025 Lab equipment $ 1,473 $ 1,042 Less: Accumulated Depreciation ( 211 ) ( 87 ) Total $ 1,262 $ 955 Depreciation expense was approximately $ 0.1 million for both the three and six months ended June 30, 2026. No depreciation expense was recognized during the corresponding periods in 2025. NOTE 5 – LEASE In September 2021, the Company signed a lease with a third party for office space in Boca Raton, Florida. The lease agreement has a 64 -month term and commenced during the fourth quarter of 2021. During March 2026, the Company exercised its option to renew the term of its office space in Boca Raton, Florida. The option renewal provides for an additional three -year term commencing April 1, 2027. Base rent under the extension will be approximately $ 17,000 per month during the first year, increasing by approximately 3 % annually over the term. As of June 30, 2026, the maturities of our lease liabilities are as follows: (in thousands, except years) 2026 $ 471 2027 632 2028 235 2029 221 2030 56 Total lease payments 1,615 Less: imputed interest ( 210 ) Present value of future lease payments 1,405 Less: operating lease, current liabilities ( 812 ) Long-term operating lease liabilities $ 593 The weighted-average lease term as of June 30, 2026 and December 31, 2025 was 2.5 years and 1.5 years, respectively. As of June 30, 2026 and 2025, the weighted-average discount rate for operating leases was 12.0 %. During the three and six months ended June 30, 2026, the Company recognized $ 206,000 and $ 353,000 , respectively, in operating lease expense. During the three and six months ended June 30, 2025, the Company recognized $ 55,000 and $ 95,000 , respectively, in operating lease expense. 9 NOTE 6 – STOCKHOLDERS’ EQUITY Common Stock – At the Market Offering During August 2024, the Company entered into an amended and restated at-the-market sales agreement with RBC Capital Markets LLC and BTIG (together, the “Sales Agents”) relating to the offer and sale of shares of our common stock. The Company was required to pay the Sales Agents a commission of 3 % of the gross proceeds from the sale of shares. During the six months ended June 30, 2025, the Company issued and sold 1,304,707 shares of common stock at an average price of $ 8.01 per share under the ATM program. The aggregate net proceeds were approximately $ 10.1 million after commission expenses. On December 19, 2025, the Company terminated the amended and restated ATM sales agreement with the Sales Agents. On December 19, 2025, the Company entered into a sales Agreement with A.G.P./Alliance Global Partners (“AGP”), as sales agent, pursuant to which the Company may offer and sell, from time to time, up to $ 65,000,000 of shares of its common stock through AGP in exchange for a 3 % commission on gross proceeds. During the six months ended June 30, 2026, the Company sold 370,417 shares of common stock at an average price of $ 1.63 per share under the ATM program. The aggregate net proceeds were approximately $ 0.6 million after expenses. Subsequent to the quarter ending June 30, 2026, the Company sold 100,000 shares of common stock at an average price of $ 2.09 per share for aggregate net proceeds of approximately $ 0.2 million. Registered Direct Offerings During June 2025, the Company entered into securities purchase agreements with investors whereby the Company sold 3,000,000 shares of the common stock in a registered direct offering in exchange for gross proceeds of $ 18.9 million (net proceeds of approximately $ 17.4 million). Stock options At the Company’s Annual Meeting of Stockholders held on June 16, 2026, the Company’s stockholders approved the Third Amended and Restated 2021 Stock Incentive Plan, which increased the number of shares of common stock authorized for issuance under the plan from 6,500,000 shares to 9,158,525 shares. The plan includes an annual evergreen provision under which the common stock reserved for grant may increase on the first trading day of each calendar year beginning with calendar year 2027 through and including the first trading day of calendar year 2031 by the lesser of (i) 10 % of the Company's common stock outstanding as of December 31 of the immediately preceding calendar year or (ii) such lesser amount as determined by the Board of Directors. As of June 30, 2026, 2,799,234 shares remained available for future grants under the Third Amended and Restated 2021 Stock Incentive Plan. The following table summarizes stock option activity during the six months ended June 30, 2026: (in thousands, except share and per share amounts) Number of Shares Weighted- average Exercise Price Weighted- average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at January 1, 2026 9,759,882 $ 2.63 6.83 $ 545 Options granted - $ - - - Options exercised (23,959 ) $ 1.48 - - Options cancelled ( 76,041 ) $ 1.49 - - Outstanding at June 30, 2026 9,659,882 $ 2.64 6.32 $ 1,104 Exercisable at June 30, 2026 5,681,578 $ 3.18 4.44 $ 560 During the three and six months ended June 30, 2026, the Company recognized stock-based compensation expense of approximately $ 1.4 million and $ 2.9 million, respectively, related to the vesting of stock options. During the three and six months ended June 30, 2025, the Company recognized stock-based compensation expense of approximately $ 1.5 million and $ 3.6 million, respectively, related to the vesting of stock options. As of June 30, 2026, there was approximately $ 7.1 million of total unrecognized compensation cost related to non-vested stock options which is expected to be recognized over a weighted-average period of 2.0 years. 10 Warrants SVB Warrants The Company issued warrants to the Company’s lenders upon obtaining a loan in June 2021. The warrants expire in June 2031 and have an exercise price of $ 14.05 . At June 30, 2026 and December 31, 2025, 45,386 of these warrants are outstanding and the intrinsic value of these warrants is $ 0 . April 2024 Warrants On June 30, 2026, the Company entered into a warrant inducement agreement with certain holders of its April 2024 common stock purchase warrants. Under the agreements, the holders exercised an aggregate of 674,155 warrants, representing 50 % of their holdings, at a reduced exercise price of $ 1.40 per share (original exercise price of $ 1.95 ), resulting in gross proceeds to the Company of approximately $ 0.9 million, of which approximately $ 0.1 million was received on June 30, 2026 and $ 0.8 million was received on July 1, 2026. In consideration for the exercise, the expiration date of the holders' remaining 674,160 April 2024 warrants was extended from June 30, 2026 to December 31, 2027. All other terms of the remaining warrants, including the $ 1.95 exercise price, remained unchanged. The aggregate intrinsic value of these warrants was $ 0 at June 30, 2026. September 2024 Warrants During September 2024, the Company issued 2,341,260 warrants to investors in connection with the sale of common stock. At June 30, 2026 and December 31, 2025, 2,341,160 of these warrants are outstanding and are exercisable for cash at a weighted average price of $ 6.40 per share and expire in March 2030. The intrinsic value of these warrants was $ 0 as of June 30, 2026. Stock-based Compensation by Class of Expense The following summarizes the components of stock-based compensation expense in the consolidated statements of operations for the six months ended June 30, 2026 and 2025 respectively: (in thousands) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 Research and development $ 319 $ 627 $ 667 $ 1,457 General and administrative 1,039 907 2,188 2,153 Total $ 1,358 $ 1,534 $ 2,855 $ 3,610 NOTE 7 – COMMITMENTS Litigation The Company is subject to claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving claims against the Company, individually or in aggregate, will not have a material adverse impact in the Company’s consolidated financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. 11