What changed in this filing

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Item 1. Financial Statements

2025-04-30 compared with 2024-10-30 · 204 added, 167 removed, 357 unchanged (51% of the section changed)

Financial Statements (unaudited)

Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023

Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2024 and 2023

Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023

Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024

Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2025 and 2024

Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2025 and 2024

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024

Notes to Condensed Consolidated Financial Statements

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(In thousands, except share and per share data)

September 30,

Current assets:

Cash and cash equivalents

Short-term marketable securities

Marketable securities

Prepaid expenses and other current assets

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5,000,000 shares authorized

as of September 30, 2024 and December 31, 2023;

as of March 31, 2025 and December 31, 2024;

no shares issued and

outstanding as of September 30, 2024 and December 31, 2023

outstanding as of March 31, 2025 and December 31, 2024

Common stock, $ 0.001 par value per share;

115,000,000 shares

authorized as of September 30, 2024 and December 31, 2023;

authorized as of March 31, 2025 and December 31, 2024;

64,027,892 and 63,815,065 shares issued and outstanding as of

September 30, 2024 and December 31, 2023, respectively

March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital

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(In thousands, except share and per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Operating expenses:

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Comprehensive loss:

Other comprehensive gain (loss):

Unrealized gain (loss) on marketable securities

Total other comprehensive gain (loss)

Other comprehensive loss:

Unrealized loss on marketable securities

Total other comprehensive loss

Total comprehensive loss

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Balances as of December 31, 2024

Issuance of common stock, net

Vesting of restricted stock units

Exercise of stock options

Stock-based compensation expense

1 unchanged sentence

Balances as of March 31, 2025

Stock-based compensation expense

Exercise of stock options

Unrealized loss on marketable debt securities

Balances as of June 30, 2024

Stock-based compensation expense

Exercise of stock options

Unrealized gain on marketable debt securities

Balances as of September 30, 2024

LARIMAR THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN

STOCKHOLDERS’ EQUITY

(In thousands, except share data)

Comprehensive

1 unchanged sentence

Balances as of December 31, 2023

Stock-based compensation expense

Unrealized gain on marketable securities

Balances as of March 31, 2023

Stock-based compensation expense

Unrealized gain on marketable debt securities

Balances as of June 30, 2023

Stock-based compensation expense

Issuance of common stock, net

Vesting of restricted stock units

Exercise of stock options

Exercise of warrants

Stock-based compensation expense

Unrealized loss on marketable securities

Balances as of September 30, 2023

Balances as of March 31, 2024

The accompanying notes are an integral part of these condensed consolidated financial statements.

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(In thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows from operating activities:

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Proceeds from issuance of equity securities, net of issuance costs

Proceeds from exercise of stock options and warrants

Net cash provided by financing activities

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Supplemental disclosure of non-cash investing and financing activities:

Offering costs included in accrued expense

Leased assets obtained in exchange for new operating lease liabilities

Purchases of property and equipment included in accounts payable and accrued expenses

Offering costs included in accounts payable and accrued expense

The accompanying notes are an integral part of these condensed consolidated financial statements.

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FA is a rare, progressive and fatal disease in which patients are unable to produce sufficient FXN due to a genetic abnormality.

The Company has completed two phase 1 studies of nomlabofusp, a Phase 2 dose exploration study, and initiated an open label extension study (“OLE”) in patients with FA in January, 2024.

This OLE study is ongoing and continues to enroll patients.

In May 2021, after reporting positive top-line data from the Company’s Phase 1 FA program, the U.S.

Food and Drug Administration (“FDA”) placed a clinical hold on the Company’s nomlabofusp clinical program after the Company notified the FDA of mortalities at the highest dose levels of a 26-week non-human primate toxicology study that was designed to support extended dosing of patients with nomlabofusp.

In September 2022, the FDA lifted its full clinical hold on the nomlabofusp program and imposed a partial clinical hold.

In May 2023, the Company announced top-line data from its completed 25 mg cohort of a Phase 2, four-week, dose exploration trial of nomlabofusp in patients with FA and provided a complete response to the FDA in June 2023, which included unblinded safety, pharmacokinetic ("PK"), and pharmacodynamic ("PD") data from the Phase 2 trial’s completed 25 mg cohort.

In June 2023, the Company met with the FDA.

Following that meeting, the Company submitted a complete response to the FDA’s partial clinical hold that included unblinded safety, PK and frataxin data from the Phase 2 trial’s completed 25 mg cohort.

In July 2023, following the FDA’s review of the Company's complete response to the partial clinical hold, the FDA cleared initiation of a second cohort at 50 mg of our four-week, placebo-controlled, Phase 2 dose exploration trial and initiation of an OLE study with daily dosing of 25 mg.

In February 2024, the Company reported positive top-line data and successful completion of their four-week, placebo-controlled Phase 2 dose exploration study of nomlabofusp in participants with FA.

Larimar has completed two Phase 1 clinical trials and a Phase 2 dose exploration trial, and has an ongoing Phase 2 OLE trial in patients with FA and an ongoing run-in study in adolescent patients with FA.

In May 2021, the Company reported positive top-line data from its Phase 1 FA program after completing dosing of the single ascending dose ("SAD") trial in December 2020 and of the multiple ascending dose ("MAD") trial in March 2021.

Data from these trials demonstrated proof-of-concept by showing that daily subcutaneous injections of nomlabofusp for up to 13 days resulted in dose-dependent increases in FXN levels from baseline compared to placebo in all evaluated tissues (buccal cells, skin, and platelets).

There were no serious adverse events associated with either the MAD or SAD trials.

In May 2023, the Company reported preliminary unblinded top-line data from the 25 mg cohort of the Phase 2 four-week, placebo-controlled, dose exploration trial of nomlabofusp in FA patients.

Data from the cohort indicated nomlabofusp was generally well tolerated and showed increases in FXN levels from baseline compared to placebo in all evaluated tissues (skin and buccal cells) at day 14.

In July 2023, the FDA cleared initiation of a second cohort (50 mg) of the four-week, placebo-controlled, Phase 2 dose exploration trial of nomlabofusp in patients with FA and the initiation of the OLE trial with daily dosing of 25 mg.

In February 2024, the Company reported positive top-line data and successful completion of the Phase 2 dose exploration study.

Nomlabofusp was generally well tolerated throughout the four-week treatment periods, had a predictable pharmacokinetic profile and led to dose dependent increases in FXN levels in all evaluated tissues (skin and buccal cells) after daily dosing of 14 days followed by every other day dosing until day 28 in the 25 mg and 50 mg cohorts.

Participants in the 25 mg (n=13) and 50 mg (n=15) cohorts were randomized 2:1 to receive subcutaneous injections of nomlabofusp or placebo.

In May 2024 the FDA removed the partial clinical hold on the development of nomlabofusp.

Patients who completed treatment in the Company's Phase 2 dose exploration study or who previously completed a prior clinical trial of nomlabofusp are eligible to screen and possibly participate in the OLE study.

Current patients in the OLE study either participated in the Phase 2 dose exploration study and/or a previous clinical trial.

In March 2024, the Company dosed the first patient in its OLE trial discussed above, evaluating daily subcutaneous injections of 25 mg of nomlabofusp self-administered or administered by a caregiver.

This study is ongoing with seven sites activated and additional patients are continuing to be enrolled and dosed.

Participants who completed treatment in the Phase 2 dose exploration study, or who previously completed a prior clinical trial of nomlabofusp, are potentially eligible to screen for the OLE study.

Patients who completed treatment in the Phase 2 dose exploration study or who previously completed a prior clinical trial of nomlabofusp are eligible to screen and possibly participate in the OLE study.

In March 2024, Larimar dosed the first patient in the OLE trial, evaluating daily subcutaneous injections of 25 mg of nomlabofusp self-administered or administered by a caregiver.

The OLE study will evaluate the safety and tolerability, pharmacokinetics, and frataxin levels in peripheral tissues as well as other exploratory pharmacodynamic markers (lipid profiles and gene expression data) following long-term subcutaneous administration of nomlabofusp.

In addition, following the completion of enrollment, as well as at least one participant completing one year of dosing, clinical assessments collected during the study will be compared to data from a matched control arm derived from participants in the Friedreich’s Ataxia Clinical Outcome Measures Study ("FACOMS") database.

Dose escalation to the 50 mg dose in the OLE study is currently planned following further characterization of the frataxin PD at the 25 mg dose.

The Company currently expects to provide a nomlabofusp development program update in mid-December 2024 that will include available safety, pharmacokinetic and frataxin data as well as available clinical outcome observations from patients currently receiving the daily 25 mg dose of nomlabofusp for approximately 30 to 180 days in the ongoing OLE study.

An update on enrollment and plans on the OLE study will also be provided.

Separately, the Company has had discussions with the FDA regarding the use of tissue FXN levels as a novel surrogate endpoint.

The FDA acknowledged that frataxin deficiency appears to be critical to the pathogenic mechanism of FA, and that there continues to be an unmet need for treatments for FA patients that address the underlying disease pathophysiology.

The Company intends to pursue an accelerated approval using FXN levels, supportive PD and clinical information, and safety data from the OLE study, along with additional non-clinical pharmacology information needed to support the novel surrogate endpoint approach.

The Company is on track to expand the nomlabofusp clinical program into adolescent (12-17 years old) and pediatric (2-11 years old) patients with FA.

The Company expects to initiate a PK run-in study in adolescents by the end of this year and expects to transition these study participants into the ongoing OLE study after assessment of safety and exposure data in the adolescent cohort.

The run-in-study will enroll 12-15 adolescent patients and 12-15 pediatric patients who will be randomized 2:1 to receive either nomlabofusp or placebo daily.

The Company is also planning the initiation of a global confirmatory/registration study by mid-2025 with potential sites in the U.S., Europe, the U.K., Canada and Australia.

The Biologics License Application ("BLA") filing is targeted in the second half of 2025 to support potential accelerated approval.

On May 30, 2024, the Company announced that the FDA's Center for Drug Evaluation and Research ("CDER") had selected nomlabofusp as one of a few programs for participation in the Support for Clinical Trials Advancing Rare Disease Therapeutics ("START") Pilot Program.

On May 30, 2024, Larimar announced that the FDA's Center for Drug Evaluation and Research ("CDER") had selected nomlabofusp as one of a few programs for participation in the Support for Clinical Trials Advancing Rare Disease Therapeutics ("START") Pilot Program.

The objective of the program is to accelerate the development of drugs for rare diseases that lead to significant disability or death by facilitating frequent advice and regular communication with the FDA staff to expedite the review process of biologics and drugs.

In September 2024, the Company received the Medicines and Healthcare Regulatory Agency ("MHRA") Innovative Licensing and Access Pathway ("ILAP") aimed at potentially accelerating access and reducing the time to market in the United Kingdom.

In September 2024, the Company received access to the Medicines and Healthcare Regulatory Agency ("MHRA”) Innovative Licensing and Access Pathway (“ILAP”) for the treatment of adults and children with FA.

The ILAP is facilitating patient access to novel treatments by accelerating time to market through opportunities for enhanced engagements with UK regulatory authorities and other stakeholders.

Along with the receipt of the ILAP designation, nomlabofusp has already been granted orphan drug designations in the U.S.

and the European Union (the “EU”), and access to the PRIME scheme in the EU.

In December 2024, the Company reported positive initial data from the ongoing OLE study.

This data included safety, FXN levels, clinical, pharmacokinetic data and dose escalation:

• Nomlabofusp was generally well tolerated for up to 260 days in subjects.

The most common adverse events were injection site reactions, with most being mild, brief in duration, and self-limited.

Two participants had serious adverse events (one seizure and one anaphylactic reaction) that resolved within 24 hours and withdrew from the study;

• Long-term 25 mg tissue FXN levels showed positive mean change from baseline of 1.32 pg/μg in buccal cells and 9.28 pg/μg in skin cells at Day 90 and that 25 mg of nomlabofusp increased and maintained tissue FXN levels over time, increasing from a mean level of 15 % of HV at baseline to 30 % in buccal cells and from 16 % to 72 % in skin cells at Day 90;

• Tissue FXN levels appear to reach steady-state levels by Day 30 in buccal cells;

• Early clinical data showed trends toward improvement across a number of clinical outcomes for long-term 25 mg daily nomlabofusp including:

(1) decreased values indicating early trends towards improvement in the Modified Friedreich's Ataxia Rating Scale (mFARS) and the FARS-Activities of Daily Living ("ADL"), Modified Fatigue Impact Scale and 9 hole peg test at 90 days relative to baseline;

• Key pharmacokinetic data showed rapid absorption after subcutaneous administration with exposure appearing to reach steady state in plasma by day 30 with no further accumulation, which is consistent with data from our Phase 1 and Phase 2 studies.

Also in December 2024, Larimar announced that it was increasing the dose in the OLE to 50 mg of nomlabofusp daily for then currently enrolled and all future OLE study participants.

In March 2025, the Company announced that its Safety Monitoring Team has deemed anaphylaxis as an adverse drug reaction likely associated with nomlabofusp and therefore, Larimar expects to see additional reactions.

To reduce the risk of allergic reactions, including anaphylaxis, Larimar amended the OLE protocol to administer premedication for the first month of dosing.

The OLE study is ongoing with seven sites activated and participants continuing to enroll.

Active study participants are currently receiving the 50 mg dose of nomlabofusp.

The Company plans to provide an update on OLE data on at least 30 to 40 study participants, some of whom have been receiving nomlabofusp for more than a year, in September 2025.

In January 2025, the Company initiated dosing of adolescents (12-17 years old) in a pharmacokinetic ("PK") run-in study for pediatric patients with FA.

Study participants in the PK run-in study were randomized 2:1 to receive either nomlabofusp at a weight-base dose expected to match the PK of adults receiving the 50 mg dose, or placebo, daily for seven days.

Dosing of this adolescent PK run-in study was completed in March 2025.

Following assessment of safety and PK data, participants will be eligible to screen for the OLE study.

The data from this cohort is expected to be presented in the nomlabofusp program update in September 2025.

In February 2025, FDA accepted the data supporting the comparability of the lyophilized drug product to the frozen solution and agreed with Larimar’s plans to introduce the lyophilized product into its clinical development program in mid-2025.

The frozen solution is the dosage form currently being used in the OLE.

The lyophilized drug product is the formulation that Larimar intends to commercialize.

In March 2025, the Company announced that FDA stated as part of a START pilot program that it is open to considering the use of FXN concentration as a reasonably likely surrogate endpoint (“RLSE”) and the acceptability of FXN’s concentration as an RLSE to support approval will be a matter of review in a future marketing application.

FDA recommended focusing on assessments of skin FXN concentrations rather than buccal FXN concentrations due to more consistent sampling and less variability.

FDA acknowledged that data the Company recently submitted appear to support a relationship between increased FXN concentrations in skin cells and relevant tissues such as the heart, dorsal root ganglion and skeletal muscle.

FDA also acknowledged that the nonclinical studies the Company submitted were performed at relevant human doses.

FDA also suggested that the Company consider exploring the relationship between increases in FXN in skin and changes in pharmacodynamic (PD) markers such as lipid profiles and/or clinical measures to provide additional support for the use of FXN as an RLSE.

The Company continues to interact with the FDA under the START pilot program, including seeking feedback on the adequacy of the safety data set for a BLA submission seeking accelerated approval targeted for the end of 2025.

Additionally, the Company has obtained feedback from both FDA and EMA on the global Phase 3 study protocol, and the Company is on track to initiate the study by mid-2025 with potential sites in the U.S., E.U., U.K, Canada, and Australia.

The Company is subject to risks and uncertainties common to pre-commercial companies in the biotechnology industry, including, but not limited to, development and commercialization by competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, compliance with governmental regulations, failure to secure regulatory approval for its drug candidates or any other product candidates and the ability to secure additional capital to fund its operations.

Product candidates under development will require extensive non-clinical and clinical testing and regulatory approval prior to commercialization.

These efforts require significant amounts of additional capital, adequate personnel, infrastructure and extensive compliance-reporting capabilities.

These efforts require significant amounts of additional capital, adequate personnel, infrastructure and extensive compliance-reporting

capabilities.

Even if the Company's drug development efforts are successful, it is uncertain when, if ever, it will realize significant revenue from product sales.

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All intercompany balances and transactions have been eliminated.

The accompanying condensed consolidated financial statements have been prepared in conformity with Generally Accepted Accounting Principles ("GAAP").

The accompanying condensed consolidated financial statements have been prepared in conformity with U.S.

Generally Accepted Accounting Principles ("GAAP").

The condensed consolidated balance sheet as of December 31, 2024 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP.

The accompanying unaudited condensed consolidated financial statements as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements.

The accompanying unaudited condensed consolidated financial statements as of March 31, 2025 and for the three months ended March 31, 2025 and 2024, have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.

However, the Company believes that the disclosures are adequate to make the information presented not misleading.

These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 14, 2024 and the Company's Quarterly Reports on Form 10-Q filed with the SEC on May 9, 2024 and August 8, 2024.

In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position as of September 30, 2024, condensed consolidated results of operations for the three and nine months ended September 30, 2024 and condensed consolidated statement of cash flows for the nine months ended September 30, 2024 have been made.

The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2024 .

These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 24, 2025.

In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s condensed consolidated financial position as of March 31, 2025, condensed consolidated results of operations for the three months ended March 31, 2025 and condensed consolidated statement of cash flows for the three months ended March 31, 2025 have been made.

The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2025 .

Liquidity and Capital Resources

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Since its inception, the Company has incurred significant recurring operating losses and negative cash flows from operations.

The Company has incurred net losses of $ 51.8 million and $ 24.0 million for the nine months ended September 30, 2024 and 2023, respectively.

In addition, as of September 30, 2024, the Company had an accumulated deficit of $ 240.3 million .

The Company has incurred net losses of $ 29.3 million and $ 14.7 million for the three months ended March 31, 2025 and 2024, respectively.

In addition, as of March 31, 2025, the Company had an accumulated deficit of $ 298.4 million .

The Company expects to continue to generate operating losses for the foreseeable future.

As of September 30, 2024, the Company had approximately $ 203.7 million of cash, cash equivalents and marketable securities available for use to fund its operations and capital requirements.

As of March 31, 2025, the Company had approximately $ 157.5 million of cash, cash equivalents and marketable securities available for use to fund its operations and capital requirements.

The Company has funded its operations to date primarily with proceeds from sales of common stock and proceeds from the sale of prefunded warrants for the purchase of common stock, the acquisition in 2020 of cash, cash equivalents and marketable securities upon the merger with Zafgen, Inc.

("Zafgen") and, prior to the 2020 merger with Zafgen, capital contributions from Chondrial Holdings, LLC.

In February 2024, the Company completed an underwritten public offering in which the Company issued and sold 19,736,842 shares of its common stock at a public offering price of $ 8.74 per share.

The Company received net proceeds of approximately $ 161.8 million after deducting underwriting discounts, commissions and other offering expenses.

In accordance with Accounting Standards Update (“ASU”) No.

2014-15, "Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern", the Company has evaluated whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that these condensed consolidated financial statements are issued.

As of the issuance date of these condensed consolidated financial statements, the Company expects its cash, cash equivalents and marketable securities will be sufficient to fund its forecasted operating expenses and capital expenditure requirements into 2026.

If the timing of the Company's clinical assumptions are delayed, or if there are other forecasted assumption changes that negatively impact its operating plan, the Company could reduce expenditures in order to further extend cash resources.

If the timing of the Company's clinical assumptions are delayed or if there are other forecasted assumption changes that negatively impact its operating plan, the Company would reduce expenditures in order to further extend cash resources.

The Company has not yet commercialized any products and does not expect to generate revenue from the commercial sale of any products for several years, if at all.

The Company expects that its research and development and general and administrative expenses will continue to increase, that sales and marketing expenses will become significant and, as a result, that it will need additional capital to fund its future operating and capital requirements.

The Company expects that its research and development and general and administrative expenses will continue to increase and, as a result, that it will need additional capital

to fund its future operating and capital requirements.

Unless and until the Company can generate substantial revenue, management continuously evaluates different strategies to obtain the required funding for future operations.

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The Company could also be required to seek funds through arrangements with collaborative partners or otherwise at an earlier stage than otherwise would be desirable and it may be required to relinquish rights to some of its technologies or product candidates or otherwise agree to terms unfavorable to it, any of which may have a material adverse effect on the Company's business, operating results and prospects.

In addition, geopolitical tensions, volatility of capital markets, and other adverse macroeconomic events, including those due to inflationary pressures, rising interest rates, banking instability, monetary policy changes and the ability of the U.S.

government to manage

federal debt limits as well as the potential impact of other health crises on the global financial markets may reduce the Company's ability to access capital, which could negatively affect its liquidity and ability to continue as a going concern.

If the Company is unable to obtain sufficient funding when needed and/or on acceptable terms, the Company may be required to significantly curtail, delay or discontinue one or more of its research and development programs, the manufacture of clinical and commercial supplies, product portfolio expansion, pre commercialization efforts and/or commercial operations, which could adversely affect its business prospects, or the Company may be unable to continue operations.

government to manage federal debt limits as well as the potential impact of other health crises on the global financial markets may reduce the Company's ability to access capital, which could negatively affect its liquidity and ability to continue as a going concern.

If the Company is unable to obtain sufficient funding when needed and/or on acceptable terms, the Company may be required to significantly curtail, delay or discontinue one or more of its research and development programs, the manufacture of clinical and commercial supplies, product portfolio expansion, commercialization efforts and/or commercial operations, which could adversely affect its business prospects, or the Company may be unable to continue operations.

Summary of Significant Accounting Policies

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Costs associated with internal research and development and external research and development services, including drug development, clinical studies and non-clinical studies, are expensed as incurred.

Research and development expenses include costs for salaries, employee benefits, subcontractors, facility-related expenses, depreciation, non-cash stock-based compensation, third-party license fees, laboratory supplies, and external costs of outside vendors engaged to conduct discovery, non-clinical and clinical development activities and clinical trials as well as to manufacture clinical trial materials, and other costs.

Research and development expenses include costs for salaries, employee benefits, subcontractors, facility-related expenses, depreciation, stock-based compensation, third-party license fees, laboratory supplies, and external costs of outside vendors engaged to conduct discovery, non-clinical and clinical development activities and clinical trials as well as to manufacture clinical trial materials, and other costs.

The Company recognizes external research and development costs based on an evaluation of the progress to completion of specific tasks using information provided to the Company by its key service providers.

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The Company accounts for forfeitures as they occur.

The Company classifies stock-based compensation expense in its condensed consolidated statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.

The Company classifies stock-based compensation expense in its consolidated statements of operations and comprehensive loss in the same manner in which the award recipient’s payroll costs are classified or in which the award recipient’s service payments are classified.

Prior to May 28, 2020, the Company had been a private company and lacked company-specific historical and implied volatility information for its common stock.

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Basic net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period.

Prior to August 11, 2023, basic shares outstanding includes the weighted average effect of the Company’s prefunded warrants issued in June 2020, the exercise of which requires little or no consideration for the delivery of shares of common stock.

These prefunded warrants were exercised on August 11, 2023 and the Company received cash proceeds of less than $ 0.1 million.

Accordingly, the 628,403 shares were issued upon the exercise of these warrants and are included in issued and outstanding common stock.

Diluted net loss per share attributable to common stockholders is computed by dividing the diluted net loss attributable to common stockholders by the weighted average number of common shares, including potentially dilutive common stock equivalents assuming the dilutive effect of outstanding stock options, outstanding restricted stock units, and unvested restricted common shares, as determined using the treasury stock method.

For periods in which the Company has reported net losses (all periods since inception), diluted net loss per common share attributable to common stockholders is the same as basic net loss per common share attributable to common stockholders, since dilutive common stock equivalents are not assumed to have been issued if their effect is antidilutive.

The Company excluded 6,990,827 and 5,100,997 common stock equivalents outstanding as of September 30, 2024 and 2023, respectively, from the computation of diluted net loss per share for the three and nine months ended September 30, 2024 and 2023 because they had an anti-dilutive impact due to the net loss incurred for the periods presented.

The Company excluded 9,564,550 and 6,555,145 common stock equivalents outstanding as of March 31, 2025 and 2024, respectively, from the computation of diluted net loss per share for the three months ended March 31, 2025 and 2024 because they had an anti-dilutive impact due to the net loss incurred for the periods presented.

Segment Information

Operating segments are defined as components of an enterprise for which separate discrete information is available for evaluation by the chief operating decision maker, or decision making group, in deciding how to

allocate resources in assessing performance.

The Company is managed on a consolidated basis and has one operating and reportable segment related to the development of clinical and preclinical product candidates for the development of the Company’s proprietary new therapies, primarily nomlabofusp, the Company's life science segment.

The Company’s chief operating decision maker (“CODM”) is the Company's chief executive officer ("CEO").

The accounting policies of the life science segment are the same as those described in the summary of significant accounting policies.

The CODM assesses performance for the Company and its reportable segment based on net loss, which is reported on the consolidated Statements of Operations.

The measure of segment assets is reported on the balance sheet as total consolidated assets.

All long-lived assets are located in the U.S.

To date, the Company has not generated any product revenue.

The Company expects to continue to incur significant expenses and operating losses for the foreseeable future as it advances product candidates through all stages of development and clinical trials and regulatory approval.

The CODM uses consolidated financial information, including consolidated net loss, to evaluate performance, forecast future period financial results, allocate resources for the company by, among other things, comparing budgeted to actual results.

The table below summarizes the significant expense categories regularly provided to the CODM for the three months ended March 31, 2025 and 2024:

For the Three Months Ended March 31,

Operating expenses:

Technical operations

Development (a)

Nomlabofusp support

General and administrative (b)

Total operating expenses

Other income, net

(a) Development expenses include research and development related stock compensation expense of approximately $ 0.9 million for the three months ended March 31, 2025 and 2024, respectively.

(b) General and administrative expenses include general and administrative related stock compensation expense of approximately $ 0.9 million and $ 1.2 million for the three months ended March 31, 2025 and 2024 , respectively.

Recently Issued and Adopted Accounting Pronouncements

From time to time, new accounting guidance is issued by the FASB or other standard setting bodies that is adopted by us as of the effective date or, in some cases where early adoption is permitted, in advance of the effective date.

We have assessed the recently issued guidance that is not yet effective and believe the new guidance will not have a material impact on the condensed consolidated results of operations, cash flows or financial position.

In November 2023, the FASB issued new guidance designed to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses per segment.

The new standard must be adopted on a retrospective basis.

We intend to adopt the new guidance for the fiscal year ending December 31, 2024, and subsequent interim periods.

Given that the accounting standard update affects disclosures exclusively, we do not anticipate that its adoption will have a material impact on our consolidated financial statements.

In December 2023, the FASB issued new guidance designed to improve income tax disclosure requirements primarily through increased disaggregation disclosures within the effective tax rate reconciliation as well as enhanced disclosures on income taxes paid.

The guidance is effective for all fiscal years beginning after December 15, 2024.

The new standard can be adopted on a prospective basis with an option for it to be adopted retrospectively and early adoption is permitted.

We are currently evaluating this guidance to determine its impact on our consolidated financial statements.

We have assessed the recently issued guidance that is not yet effective and believe the new guidance will not have a material impact on the consolidated results of operations, cash flows or financial position.

In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures (“ASU 2023-07”).

ASU 2023-07 requires disclosure of incremental segment information on an annual and interim basis.

The amendments also require companies with a single reportable segment to provide all disclosures required by this amendment and all existing segment disclosures in ASC 280, Segment Reporting.

The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024.

The Company adopted ASU 2023-07 , effective December 31, 2024 , in these consolidated financial statements.

ASU 2023-07 only impacted the disclosures and did not impact the consolidated financial statements.

See Note 2, Segment Information, for disclosures related to the adoption of ASU 2023-07.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU No.

2023-09, “Improvements to Income Tax Disclosures (Topic 740),” which requires entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes as well as additional information about reconciling items if certain

quantitative thresholds are met.

This ASU will require all entities to disclose income taxes paid, net of refunds, disaggregated by federal (national), state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold.

All entities are required to apply the guidance prospectively, with the option to apply it retrospectively.

The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company has determined it will adopt this ASU on January 1, 2025, the adoption of which is not expected to have a material impact on the Company’s consolidated results of operations or cash flows.

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses”, which requires disaggregated disclosures in the notes of the financial statements of certain categories of expenses that are included in expense line items on the face of the income statement.

This ASU is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The Company will evaluate the impact adopting ASU 2024-03 will have on the Company's consolidated financial statements and disclosures.

Fair Value Measurements and Marketable Securities

Fair Value Measurements

The Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 are measured in accordance with the standards of ASC 820, " Fair Value Measurements and Disclosures" , which establishes a three-level valuation hierarchy for measuring fair value and expands financial statement disclosures about fair value measurements.

The Company’s assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 are measured in accordance with the standards of ASC 820, " Fair Value Measurements and Disclosures" , which establishes a three-level valuation hierarchy for measuring fair value and expands financial statement disclosures about fair value measurements.

The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date.

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The Company’s financial instruments consist primarily of cash, cash equivalents, marketable securities, accounts payable and accrued liabilities.

For accounts payable and accrued liabilities, the carrying amounts of these financial instruments as of September 30, 2024 and December 31, 2023 were considered representative of their fair values due to their short term to maturity.

The following tables summarize the Company’s cash equivalents and marketable securities as of September 30, 2024 and December 31, 2023:

For accounts payable and accrued liabilities, the carrying amounts of these financial instruments as of March 31, 2025 and December 31, 2024 were considered representative of their fair values due to their short term to maturity.

The following tables summarize the Company’s cash equivalents and marketable securities as of March 31, 2025 and December 31, 2024:

(in thousands)

September 30, 2024

March 31, 2025

Cash equivalents:

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Government securities

Corporate bonds

Total marketable securities

Total cash equivalents and marketable securities

The accrued interest receivable related to the Company’s investments was $ 0.9 million and $ 0.3 million as of September 30, 2024 and December 31, 2023, respectively, and is included in prepaid expenses and other current assets on the condensed consolidated balance sheet.

The accrued interest receivable related to the Company’s investments was $ 1.1 million as of March 31, 2025 and December 31, 2024, respectively, and is included in prepaid expenses and other current assets on the condensed consolidated balance sheets.

The Company classifies its money market funds and U.S.

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These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs.

As of September 30, 2024 and December 31, 2023, no allowances for credit losses for the Company’s investments were recorded.

During the three and nine months ended September 30, 2024 and 2023 , the Company did no t recognize any impairment losses related to investments.

As of March 31, 2025 and December 31, 2024, the unrealized losses for available-for-sale investments were non-credit related, and the Company does not intend to sell the investments that were in an unrealized loss position, nor will it be required to sell those investments before recovery of their amortized cost basis, which may be maturity.

As of March 31, 2025 and December 31, 2024 , no allowances for credit losses for the Company’s

investments were recorded.

During the three months ended March 31, 2025 and 2024 , the Company did no t recognize any impairment losses related to investments.

As of March 31, 2025 and December 31, 2024, the Company's cash equivalents and marketable securities consisted of a U.S.

government money market fund, U.S.

Treasury Bills and U.S.

government and agency securities, all held in our name in a separate custody account with U.S.

government money market fund has same-day liquidity access and the U.S.

government and agency securities all have maturities of 360 days or less.

Marketable Securities

The following table summarizes the Company's marketable securities as of September 30, 2024 and December 31, 2023.

The following table summarizes the Company's marketable securities as of March 31, 2025 and December 31, 2024:

(in thousands)

September 30, 2024

March 31, 2025

Treasury Bills

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Government securities

Corporate bonds

Total marketable securities

As of March 31, 2025 and December 31, 2024 , the Company held no investments that have been in a continuous loss position for 12 months or longer.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

September 30,

(in thousands)

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Fixed assets, net consisted of the following:

September 30,

(in thousands)

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Accumulated depreciation

Depreciation expense was $ 0.1 million and $ 0.2 million for the three and nine months ended September 30, 2024 , respectively.

Depreciation expense was $ 0.1 million and $ 0.2 million for the three and nine months ended September 30, 2023, respectively.

In addition, for the three and nine months ended September 30, 2024 , there was less than $ 0.1 million of depreciation in each period related to sublet assets recorded as other expense.

For the three and nine months ended September 30, 2023 , there was less than $ 0.1 million and $ 0.1 million, respectively, of depreciation related to sublet assets recorded as other expense.

Depreciation expense was $ 0.1 million for each of the three months ended March 31, 2025 and 2024.

In addition, for the three months ended March 31, 2025 and 2024 , there was less than $ 0.1 million of depreciation related to sublet assets recorded as other expense.

Accrued Expenses

Accrued expenses consisted of the following:

September 30,

(in thousands)

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As partial compensation for these services, the Company issued MTS Health Partners 35,260 shares of common stock.

As of September 30, 2024 , the Company’s Ninth Amended and Restated Certificate of Incorporation, as amended, authorized the Company to issue up to 115,000,000 shares of common stock, par value $ 0.001 per share, of which 63,806,628 shares were issued and outstanding, and up to 5,000,000 shares of undesignated preferred stock, par value $ 0.001 per share, of which no shares were issued or outstanding.

As of March 31, 2025 , the Company’s Ninth Amended and Restated Certificate of Incorporation, as amended, authorized the Company to issue up to 115,000,000 shares of common stock, par value $ 0.001 per share, of which 64,027,892 shares were issued and outstanding, and up to 5,000,000 shares of undesignated preferred stock, par value $ 0.001 per share, of which no shares were issued or outstanding.

The voting, dividend and liquidation rights of the holders of the Company’s common stock are subject to and qualified by the rights, powers and preferences of the holders of the preferred stock.

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In February 2024, the Company completed an underwritten public offering in which the Company issued and sold 19,736,842 shares of its common stock at a public offering price of $ 8.74 per share.

The Company received net proceeds of approximately $ 161.8 million after deducting underwriting discounts, commissions and other offering expenses.

The Company received net

proceeds of approximately $ 161.8 million after deducting underwriting discounts, commissions and other offering expenses.

ATM Agreement

In November 2022, the Company entered into a Sales Agreement (the "2022 ATM Agreement") with Guggenheim Securities, LLC as a sales agent in connection with the establishment of an “at-the-market” offering program under which the Company could sell up to an aggregate of $ 50 million of shares of common stock (the “2022 ATM Shares”) from time to time.

In November 2022, the Company entered into a sales agreement (the "2022 ATM Agreement") with Guggenheim Securities, LLC in connection with the establishment of an “at-the-market” offering program under which the Company could sell up to an aggregate of $ 50.0 million of shares of common stock (the “ATM Shares”) from time to time.

In February 2024, in connection with the underwritten public offering described above, the Company terminated the 2022 ATM Agreement.

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In May 2024, the Company entered into a sales agreement (the "2024 ATM Agreement") with Guggenheim Securities, LLC in connection with the establishment of an “at-the-market” offering program under which the Company could sell up to an aggregate of $ 100 million of shares of common stock (the “ATM Shares”) from time to time.

To date, no sales of common stock have been made under this ATM Agreement.

To date, no sales of common stock have been made under the 2024 ATM Agreement.

2020 Equity Incentive Plan

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However, if any award previously granted under the Prior Plans, expires, terminates, is canceled, or is forfeited for any reason after the approval of the 2020 Plan, the shares subject to that award will be added to the 2020 Plan share pool so that they can be utilized for new grants under the 2020 Plan.

The 2020 Plan provides for the grant of incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock awards, restricted stock unit awards, and cash or other stock-based awards.

restricted stock units, and cash or other stock-based awards.

ISOs may be granted only to the Company’s employees, including the Company’s officers, and the employees of the Company’s affiliates.

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As permitted by the 2020 Plan, the Company added 2,552,603 and 1,756,363 shares available for grant to the 2020 Plan on January 1, 2025 and January 1, 2024, respectively.

As of September 30, 2024 , 779,926 shares of common stock were available for grant under the 2020 Plan.

As of March 31, 2025 , 537,542 shares of common stock were available for grant under the 2020 Plan.

During the twelve months ended December 31, 2024 , options to purchase 1,242 shares issued under the Prior Plans were cancelled and became available for grant under the 2020 Plan.

During the nine months ended September 30, 2024 , options to purchase 1,242 shares issued under the Prior Plans were cancelled and became available for grant under the 2020 Plan.

At September 30, 2024 , 344,683 options under the Prior Plans remained outstanding at prices ranging from $ 11.88 to $ 445.80 , and, if unexercised, will return to the 2020 Plan no later than July 15, 2030.

No such options were cancelled in the three months ended March 31, 2025.

Stock Option Valuation

The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted to employees:

September 30,

The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted to employees during the three months ended March 31, 2025:

Risk-free interest rate

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Stock Options

The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2024 (amounts in millions, except for share, contractual term, and per share data):

The following table summarizes the Company’s stock option activity for the three months ended March 31, 2025 (amounts in millions, except for share, contractual term, and per share data):

Weighted Average

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Options granted

Options exercised

Options forfeited/expired

Outstanding as of September 30, 2024

Exercisable as of September 30, 2024

Vested and expected to vest as of September 30, 2024

(a) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that were "in the money" at September 30, 2024 .

Outstanding as of March 31, 2025

Exercisable as of March 31, 2025

Vested and expected to vest as of March 31, 2025

Option Grants

During the nine months ended September 30, 2024 , the Company granted options to purchase 2,082,377 shares of common stock to employees and directors under the 2020 Plan.

The options have an exercise price equal to the closing stock price as of the grant date.

Of the 2,082,377 options granted, 1,987,377 were granted to employees and vest over four years , with 25 % vesting on the first anniversary of the grant and the remainder vesting in equal monthly installments thereafter.

The remaining 95,000 options were annual grants to the Company's directors and vest one year from the grant date.

The weighted-average grant date fair value of options granted under the 2020 Plan during the nine months ended September 30, 2024 was $ 4.15 .

As of September 30, 2024 , total unrecognized compensation expense related to unvested stock options granted under the 2020 Plan was $ 11.8 million, which is expected to be recognized over a weighted average period of 2.56 years.

Inducement Stock Option Grant

There were no inducement awards granted in the nine months ended September 30, 2024.

As of September 30, 2024 , total unrecognized compensation expense related to unvested inducement options granted was $ 0.8 million, which is expected to be recognized over a weighted average period of 2.53 years.

During the three months ended March 31, 2025 , the Company granted options to purchase 2,130,437 shares of common stock to employees under the 2020 Plan.

The options have an exercise price equal to the closing stock price as of the grant date and vest over four years , with 25 % vesting on the first anniversary of the grant and the remainder vesting in equal monthly installments thereafter.

The weighted-average grant date fair value of options granted under the 2020 Plan during the three months ended March 31, 2025 was $ 2.74 .

As of March 31, 2025 , total unrecognized compensation expense related to unvested stock options granted under the 2020 Plan was $ 15.0 million, which is expected to be recognized over a weighted average period of 2.91 years.

Inducement Stock Option Grants

There were no inducement awards granted in the three months ended March 31, 2025.

As of March 31, 2025 , total unrecognized compensation expense related to unvested inducement options granted was $ 0.6 million, which is expected to be recognized over a weighted average period of 2.04 years.

Restricted Stock Units

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The shares underlying the RSUs are not issued until the RSUs vest.

Activity with respect to the Company's RSUs during the nine months ended September 30, 2024 was as follows (in millions, except share, contractual term, and per share data):

Activity with respect to the Company's RSUs and performance-based RSUs during the three months ended March 31, 2025 was as follows (in millions, except share, contractual term, and per share data):

Weighted Average

5 unchanged sentences

Restricted stock units forfeited

Outstanding as of September 30, 2024

Unvested and expected to vest as of September 30, 2024

Outstanding as of March 31, 2025

Unvested and expected to vest as of March 31, 2025

Restricted Stock Unit Grants

During the nine months ended September 30, 2024 , the Company granted 245,372 shares of RSUs to employees under the 2020 Plan.

The RSUs vest annually over four years and have a weighted-average grant date fair value of $ 4.21 per unit.

As of September 30, 2024 , total unrecognized compensation expense for RSUs was $ 2.6 million, which is expected to be recognized over a weighted-average period of 2.65 years.

During the three months ended March 31, 2025 , the Company granted 344,988 shares of RSUs, which vest annually over four years to employees under the 2020 Plan.

The RSUs have a weighted-average grant date fair value of $ 3.46 per unit.

As of March 31, 2025 , total unrecognized compensation expense for RSUs was $ 3.2 million, which is expected to be recognized over a weighted-average period of 2.76 years.

Performance-Based Restricted Stock Unit Grants

In January 2025, the Company granted performance-based RSUs (the "January 2025 PSU Awards") to each of the executive officers of the Company under the 2020 Plan.

Each award was expressed as a target number of RSUs.

With respect to the January 2025 PSU Awards, the Board established specified regulatory-related performance criteria and a corresponding performance period over which such performance criteria must be achieved, the satisfaction of which are conditions to earning the January 2025 PSU Awards and vesting of the underlying RSUs.

As of March 31, 2025 , January 2025 PSU Awards were outstanding covering 200,000 common stock underlying RSUs.

The grant date fair value of the performance-based RSUs was $ 3.46 per unit based on the grant date closing price per share.

As of March 31, 2025 , the underlying performance criteria of the January 2025 PSU Awards were determined to be not probable of achievement, and no stock-based compensation expense was recognized for the three months ended March 31, 2025.

Stock-Based Compensation

Stock-based compensation expense was classified in the condensed consolidated statements of operations as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Research and development

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The Company is party to an exclusive License Agreement (the “WFUHS License”), dated November 30, 2016, as amended, with Wake Forest University Health Sciences (“WFUHS”) and an exclusive License Agreement (the “IU License”), dated November 30, 2016, as amended, with Indiana University (“IU”).

Such agreements provide for a transferable, worldwide license to certain patent rights regarding technology used by the Company with respect to the development of nomlabofusp.

Such agreements provide for a transferable, worldwide license to certain patent rights regarding technology used by the Company

with respect to the development of nomlabofusp.

Both agreements continue from their effective date through the last to date of expiration of the licensed patents, unless earlier terminated by either party in accordance with their terms.

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The new lease on 3,462 additional square footage commenced on October 1, 2023 and the Company recorded a right of use asset and lease liability of $ 0.3 million as of that date.

The right of use assets and lease liabilities with both these leases are reflected in the financial statements as of September 30, 2024 as are the right of use asset and lease liability of the Company's Boston office space discussed below.

The right of use assets and lease liabilities with both of these leases are reflected in the financial statements for three months ended March 31, 2025 as are the right of use asset and lease liability of the Company's Boston office space discussed below.

Boston Office Lease

In connection with the Company's 2020 merger with Zafgen described in footnote 1, on May 28, 2020, the Company acquired a non-cancellable operating lease for approximately 17,705 square feet of office space (the “Premises”).

In connection with the Company's 2020 merger with Zafgen, on May 28, 2020, the Company acquired a non-cancellable operating lease for approximately 17,705 square feet of office space (the “Premises”).

The lease expires on October 30, 2029 .

As part of the agreement, the Company is required to maintain a letter of credit, which upon signing was $ 1.3 million and was later reduced to $ 0.6 million in October 2024, and is classified as restricted cash within the condensed consolidated financial statements.

As part of the agreement, the Company was initially required to maintain a letter of credit, of $ 1.3 million.

In October of 2024, upon the agreement with the landlord that we had achieved certain clinical development milestones required in the lease, this letter of credit was reduced to $ 0.6 million.

During both periods presented, this cash deposit is classified as restricted cash within the condensed consolidated financial statements.

In addition to the base rent, the Company is also responsible for its share of operating expenses, electricity and real estate taxes, which costs are not included in the determination of the leases’ right-of-use assets or lease liabilities.

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On March 28, 2024, the Company gave the requisite notice and vacated the property in May 2024.

On October 16, 2023, the Company entered into an operating lease for lab space in King of Prussia, Pennsylvania for a period of four years .

On October 16, 2023, the Company entered into an operating lease for alternate lab space in King of Prussia, Pennsylvania for a period of four year s.

Due to required tenant improvements to be completed by the landlord, the Company did not take immediate possession of the leased property.

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Lease Expense

Expense arising from operating leases was $ 0.1 million and $ 0.4 million during the three and nine months ended September 30, 2024 , respectively.

Expense arising from operating leases was $ 0.1 million and $ 0.2 million during the three and nine months ended September 30, 2023, respectively.

For operating leases, the weighted-average remaining lease term for leases at September 30, 2024 and December 31, 2023 was 4.7 and 5.5 years, respectively.

For operating leases, the weighted average discount rate for leases at September 30, 2024 and December 31, 2023 was 11.0 %.

Expense arising from operating leases was $ 0.1 million during each of the three months ended March 31, 2025 and 2024.

For operating leases, the weighted-average remaining lease term for leases at March 31, 2025 and December 31, 2024 was 4.2 and 4.5 years, respectively.

For operating leases, the weighted average discount rate for leases at March 31, 2025 and December 31, 2024 was 11.0 %.

The Company has not entered into any financing leases.

Maturities of lease liabilities due under these lease agreements as of September 30, 2024 are as follows:

Maturities of lease liabilities due under these lease agreements as of March 31, 2025 are as follows:

(in thousands)

Three months ending December 31, 2024

Nine months ending December 31, 2025

Year ended December 31, 2026

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The Company will have access to all study data for use in its regulatory filings, as appropriate.

During the three and nine months ended September 30, 2024, the Com pany incurred less than $ 0.1 million and $ 0.8 million of c osts related to the Track-FA program and will fund future costs going forward.

During the twelve months ended December 31, 2024 , the Company incurred $ 0.9 million of costs related to the Track-FA program and will fund future costs going forward.

One of the Company’s Directors is also a director of FARA.

During the three months ended March 31, 2025 , the Company incurred less than $ 0.1 million of costs related to the Track-FA program.

Additionally, during the twelve months ended December 31, 2024 , the Company sponsored patient and caregiver awareness events held by FARA for a cumulative $ 0.1 million.

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 1. Financial Statements