What changed in this filing

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Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 107 added, 87 removed, 282 unchanged (41% of the section changed)

3 unchanged sentences

(In thousands, except par value and share amounts)

As of March 31, As of December 31,

As of June 30, As of December 31,

Assets (unaudited)

25 unchanged sentences

5,000,000 shares authorized

2,712,582 and 2,304,147 shares issued at March 31, 2026 and December 31, 2025, respectively;

408,435 outstanding at March 31, 2026 and none outstanding at December 31, 2025

2,712,582 and 2,304,147 shares issued at June 30, 2026 and December 31, 2025, respectively;

none outstanding at June 30, 2026 and December 31, 2025

Common stock, $ 0.001 par value;

450,000,000 shares authorized;

900,000,000 shares authorized at June 30, 2026;

446,870,629 and 365,848,216 shares issued, respectively

8 unchanged sentences

Lexicon Pharmaceuticals, Inc.

Condensed Consolidated Statements of Comprehensive Loss

Condensed Consolidated Statements of Comprehensive (Loss) Income

(In thousands, except per share amounts)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net product revenue $ 680 $ 1,322 $ 1,770 $ 2,584

6 unchanged sentences

17,443 15,747 30,199 31,050

Selling, general and administrative, including stock-based compensation of $ 1,709 and $ 1,469

Total operating expenses 22,098 26,941

Loss from operations

Selling, general and administrative, including stock-based compensation of $ 1,952 , $ 1,575 , $ 3,661 , and $ 3,044 respectively

9,750 9,350 18,984 20,958

Total operating expenses 27,232 25,130 49,330 52,071

(Loss) income from operations ( 26,540 ) 3,736 ( 27,536 ) ( 21,943 )

Interest and other expense ( 2,609 ) ( 2,318 ) ( 4,199 ) ( 4,153 )

Interest income and other 1,543 2,219

Net loss $ ( 1,043 ) $ ( 25,295 )

Net loss per common share, basic and diluted $ ( — ) $ ( 0.07 )

Weighted average common shares outstanding, basic and diluted 400,240 362,073

Other comprehensive loss:

Interest and other income 1,723 1,834 3,266 4,053

Loss on early extinguishment of debt ( 4,349 ) — ( 4,349 ) —

Net (loss) income $ ( 31,775 ) $ 3,252 $ ( 32,818 ) $ ( 22,043 )

Net (loss) income per common share, basic $ ( 0.07 ) $ 0.01 $ ( 0.08 ) $ ( 0.06 )

Net (loss) income per common share, diluted $ ( 0.07 ) $ 0.01 $ ( 0.08 ) $ ( 0.06 )

Weighted average common shares outstanding, basic 437,653 363,294 419,050 362,687

Weighted average common shares outstanding, diluted 437,653 363,570 419,050 362,687

Other comprehensive (loss) income:

Unrealized loss on investments ( 74 ) ( 39 ) ( 234 ) ( 133 )

Comprehensive loss $ ( 1,203 ) $ ( 25,389 )

Comprehensive (loss) income $ ( 31,849 ) $ 3,213 $ ( 33,052 ) $ ( 22,176 )

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

11 unchanged sentences

Balance at March 31, 2025 365,560 $ 366 — $ — $ 2,120,365 $ ( 1,992,537 ) $ 25 $ ( 5,187 ) $ 123,032

Stock-based compensation expense — — — — 3,195 — — — 3,195

Issuance of common stock under Equity Incentive Plans 221 — — — — — — — —

Net income — — — — — 3,252 — — 3,252

Unrealized loss on investments — — — — — — ( 39 ) — ( 39 )

Balance at June 30, 2025 365,781 $ 366 — $ — $ 2,123,560 $ ( 1,989,285 ) $ ( 14 ) $ ( 5,187 ) $ 129,440

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

Lexicon Pharmaceuticals, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands)

Common Stock Preferred Stock Additional Accumulated Other

10 unchanged sentences

Balance at March 31, 2026 425,708 $ 426 408 $ 4 $ 2,224,025 $ ( 2,018,626 ) $ ( 130 ) $ ( 2,843 ) $ 202,856

Stock-based compensation expense — — — — 3,336 — — — 3,336

Fees related to issuance of common stock — — — — ( 50 ) — — — ( 50 )

Issuance of common stock under Equity Incentive Plans 741 1 — — 231 — — — 232

Conversion of preferred stock to common stock 20,422 20 ( 408 ) ( 4 ) ( 16 ) —

Net loss — — — — — ( 31,775 ) — — ( 31,775 )

Unrealized loss on investments — — — — — — ( 74 ) — ( 74 )

Balance at June 30, 2026 446,871 $ 447 — $ — $ 2,227,526 $ ( 2,050,401 ) $ ( 204 ) $ ( 2,843 ) $ 174,525

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

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

4 unchanged sentences

Amortization of debt-related costs 1,213 803

Loss on early extinguishment of debt 4,349 —

Accretion of marketable securities purchased at a discount ( 1,292 ) ( 2,540 )

1 unchanged sentence

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable, net ( 9,395 ) 1,026

Decrease in inventories 5 30

Decrease in accounts receivable, net 741 1,290

(Increase) decrease in inventories ( 915 ) 63

(Increase) decrease in prepaid expenses and other current assets ( 128 ) 806

11 unchanged sentences

Payments for tax withholding on share-based compensation vesting ( 2,843 ) ( 572 )

Proceeds from debt borrowings 55,000 —

Repayment of debt borrowings ( 59,261 ) ( 45,000 )

Payment of financing fees ( 2,274 ) —

Net cash provided by (used in) financing activities 88,244 ( 45,572 )

Net increase (decrease) in cash, cash equivalents and restricted cash 3,763 ( 3,768 )

Net decrease in cash, cash equivalents and restricted cash ( 22,402 ) ( 16,292 )

Cash, cash equivalents, and restricted cash at beginning of period 63,326 66,656

2 unchanged sentences

Cash paid for interest $ 2,606 $ 4,888

Supplemental disclosure of non-cash investing and financing activities:

Accrued financing costs $ 313 $ —

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

9 unchanged sentences

In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included.

Operating results for the three month period ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ended December 31, 2026.

Operating results for the three and six month period ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ended December 31, 2026.

For further information, refer to the financial statements and footnotes thereto included in Lexicon’s annual report on Form 10-K for the year ended December 31, 2025, as filed with the SEC.

10 unchanged sentences

The fair value of cash and cash equivalents, restricted cash and investments held are as follows:

As of March 31, 2026

As of June 30, 2026

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value

1 unchanged sentence

Cash and cash equivalents $ 40,925 $ — $ ( 1 ) $ 40,924

Restricted cash 29,000 — — 29,000

Total cash and cash equivalents and restricted cash $ 67,089 $ — $ — $ 67,089

Securities maturing within one year:

2 unchanged sentences

Total short-term investments $ 149,889 $ — $ ( 203 ) $ 149,686

Total cash and cash equivalents, restricted cash and short-term investments $ 199,787 $ 2 $ ( 131 ) $ 199,658

Total cash and cash equivalents and short-term investments $ 190,814 $ — $ ( 204 ) $ 190,610

As of December 31, 2025

9 unchanged sentences

Total cash and cash equivalents, restricted cash and short-term investments $ 125,201 $ 30 $ ( 1 ) $ 125,230

As of March 31, 2026 and December 31, 2025, Lexicon’s investments in an unrealized loss position had an estimated fair value of $ 123.1 million and $ 2.5 million, respectively.

During the three month period ended March 31, 2026, there were less than $ 0.1 million in realized gains and no realized losses.

There were no realized gains or losses during the three month period ended March 31, 2025.

As of June 30, 2026 and December 31, 2025, Lexicon’s investments in an unrealized loss position had an estimated fair value of $ 153.7 million and $ 2.5 million, respectively.

During the six month period ended June 30, 2026, there were less than $ 0.1 million in realized gains and no realized losses.

There were no realized gains or losses during the six month period ended June 30, 2025.

Fair Value Measurements

9 unchanged sentences

There were no transfers between Level 1 and Level 2 during the periods presented.

Assets at Fair Value as of March 31, 2026

Assets at Fair Value as of June 30, 2026

Level 1 Level 2 Level 3 Total

2 unchanged sentences

Short-term investments 116,825 32,861 — 149,686

Restricted cash 29,000 — — 29,000

Total cash and cash equivalents, short-term investments and restricted cash $ 171,968 $ 27,690 $ — $ 199,658

Total cash and cash equivalents and short-term investments $ 157,749 $ 32,861 $ — $ 190,610

Assets at Fair Value as of December 31, 2025

6 unchanged sentences

The carrying amount of prepaid expenses and other assets, accounts payable, and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments.

The fair value of the Oxford Term Loans (see Note 6, Debt Obligations ) is determined under Level 2 in the fair value hierarchy and approximates carrying value as the loans bear interest at a rate that approximates prevailing market rates for instruments with similar characteristics.

The fair value of the Hercules Term Loan is determined under Level 2 in the fair value hierarchy and approximates carrying value as the loan bears interest at a rate that approximates prevailing market rates for instruments with similar characteristics.

See Note 6, Debt Obligations for a further discussion of our debt and related instruments.

Supplemental Financial Information

Property and Equipment.

Estimated Useful Lives As of March 31, As of December 31,

Estimated Useful Lives As of June 30, As of December 31,

In Years 2026 2025

8 unchanged sentences

Accrued Liabilities.

As of March 31, As of December 31,

As of June 30, As of December 31,

(in thousands)

6 unchanged sentences

Net income (loss) per common share is computed using the weighted average number of shares of common stock outstanding.

Potentially dilutive shares associated with warrants, stock options and restricted stock units totaling 8.7 million and 0.3 million for the three months ended March 31, 2026 and 2025, respectively, and our convertible preferred shares further described in Note 9 were not included in the computation of diluted earnings per share because they are antidilutive due to the Company’s net loss in all periods presented.

Potentially dilutive shares associated with warrants, stock options and restricted stock units totaling 10.6 million and 9.8 million for the three and six months ended June 30, 2026, and totaling 0.1 million for the six months ended June 30, 2025, and our convertible preferred shares further described in Note 9 were not included in the computation of diluted earnings per share because they are antidilutive due to the Company’s net loss in the periods presented.

Collaborations and Strategic Alliances

1 unchanged sentence

In March 2025, the Company entered into an exclusive license agreement with Novo Nordisk A/S (“Novo Nordisk”) for the worldwide development, manufacturing and commercialization of LX9851, the Company’s preclinical drug candidate for obesity and associated cardiometabolic disorders.

Under the agreement, the Company received an upfront payment of $ 45 million in April 2025, achieved the first two development milestones of $ 10 million each during the three months ended March 2026 and is eligible to receive (a) up to an aggregate of $ 465 million upon the achievement of additional specified regulatory and commercial launch milestones and (b) up to an aggregate of $ 475 million upon the achievement of specified sales milestones.

Under the agreement, the Company received an upfront payment of $ 45 million in April 2025, achieved the first two development milestones totaling $ 20 million in the first quarter of 2026 and is eligible to receive (a) up to an aggregate of $ 465 million upon the achievement of additional specified regulatory and commercial launch milestones and (b) up to an aggregate of $ 475 million upon the achievement of specified sales milestones.

The Company is also entitled to tiered, escalating royalties ranging from single-digit to low-double-digit percentages of annual net sales of LX9851, subject to customary royalty reduction provisions.

5 unchanged sentences

Debt Obligations

Hercules Term Loans .

On May 4, 2026, the Company and its subsidiaries entered into a loan and security agreement with Hercules Capital, Inc.

and certain of its affiliates (“Hercules”) that provides up to $ 100 million in borrowing capacity (the “Hercules Term Loans”) available in three tranches, each maturing in May 2030.

Monthly interest-only payments are due during an initial 18 -month period, which may be extended to 24 months or 30 months if specified performance milestones are achieved.

The interest-only period will be followed by an amortization period extending through the maturity date.

Hercules Term Loan .

In May 2026, the Company and its subsidiaries entered into a loan and security agreement with Hercules Capital, Inc.

and certain of its affiliates (“Hercules”) that provides up to $ 100 million in borrowing capacity (the “Hercules Term Loan”) available in three tranches, each maturing in May 2030.

The first $ 55 million tranche was funded at closing.

1 unchanged sentence

The third $ 25 million tranche is available for draw at the Company’s option, subject to Hercules’s consent, at any time prior to the expiration of the interest-only payment period.

The Hercules Term Loans bear interest at a floating rate equal to the prime rate plus 3.10 %, but not less than 9.85 %.

The Company may prepay the Hercules Term Loans in whole or in part at its option at any time.

Any prepayment of the Hercules Term Loans is subject to prepayment fees equal to 3.0 % of the outstanding principal being repaid, subject to a

declining scale depending on when prepayment occurs relative to the applicable closing date.

A final payment equal to 6.25 % of the amount funded under the Hercules Term Loans is due upon prepayment or maturity.

The Company’s obligations under the Hercules Term Loans are secured by a first lien security interest in all of the assets of the Company and its subsidiaries.

Financial covenants include (a) a minimum cash covenant beginning on June 1, 2027, which will be extended to January 1, 2028 upon achievement of specified performance milestones and waived at any time the Company meets specified market capitalization requirements and (b) a minimum revenue covenant relating to net sales of its products beginning only at specified times after the Company draws the second or third tranche, which will be waived at any time the Company meets specified minimum cash and/or market capitalization requirements.

In connection with the loan and security agreement, the Company agreed to grant Hercules warrants to purchase a number of shares of its common stock equal to 2 % of the aggregate principal amount of the Hercules Term Loans made and funded under the loan and security agreement at an exercise price of $ 1.59 per share.

A final payment (equal to 6.25 % of the amount funded under the Hercules Term Loan), is due upon prepayment or maturity of the loan.

Additionally, the Company may prepay the Hercules Term Loan in whole or in part at its option at any time.

Any prepayment of the Hercules Term Loan is subject to prepayment fees initially equal to 3.0 % of the outstanding principal being repaid, subject to a declining scale depending on when prepayment occurs relative to the applicable closing date.

In connection with the loan and security agreement, the Company agreed to grant Hercules warrants to purchase a number of shares of its common stock equal to 2 % of the aggregate principal amount of the Hercules Term Loan made and funded under the loan and security agreement at an exercise price of $ 1.59 per share.

Concurrent with the funding of the first tranche, the Company granted Hercules warrants to purchase 691,823 shares of its common stock.

Upon funding of the second and third tranches, the Company will grant Hercules warrants to purchase an additional 251,572 and 314,465 shares of its common stock, respectively.

The warrants are exercisable for a five-year period from the date of issuance and feature a net cashless exercise provision.

The warrants are exercisable for a five-year period from the date of issuance.

The Company used the Black-Scholes model to calculate the fair value of the warrants which are reflected in other long-term liabilities on the consolidated balance sheet and reduced the initial carrying value of long-term debt.

The fair value was recorded using assumptions of stock price volatility, the expected life of the warrants and the fair value of the common stock underlying the warrants, among other assumptions and will be remeasured each reporting period with changes in fair value recorded in the condensed consolidated statement of comprehensive loss within interest and other expense.

Interest, Principal Payments, and Carrying Value of Debt.

Monthly interest-only payments are due during an initial 18 -month period, which may be extended to 24 months or 30 months if specified performance milestones are achieved.

The interest-only period will be followed by an amortization period extending through the maturity date.

The Hercules Term Loan bears interest at a floating rate equal to the prime rate plus 3.10 %, but not less than 9.85 %.

For the quarter ended June 30, 2026, the interest rate of the Hercules Term Loan was 9.85 %.

Payments of $ 3.5 million, $ 21.3 million, $ 21.3 million and $ 12.3 million, including debt principal and the final payment noted above, will be during the fiscal years ended December 31, 2027, December 31, 2028, December 31, 2029 and December 31, 2030, respectively.

As of June 30, 2026, the carrying value of the Hercules Term Loan in long-term debt on the condensed consolidated balance sheet was $ 51.4 million primarily reflecting the unamortized balance of debt issuance costs and discounts totaling $ 3.7 million, which are being amortized into interest and other expense over the life of the loan.

Restrictive Provisions/Covenants.

The Company’s obligations under the Hercules Term Loan are secured by a first lien security interest in all of the assets of the Company and its subsidiaries.

The Company was in compliance with its debt covenants as of June 30, 2026.

Oxford Term Loans.

Concurrent with its execution of the loan and security agreement with Hercules, the Company repaid all amounts due under its loan and security agreement with Oxford Finance LLC and the lenders listed therein (“Oxford”), under which $ 100 million had been funded from inception through March 31, 2026 (the “Oxford Term Loans”).

In April 2025, the Company repaid $ 45 million to Oxford, including pro-rata final payment exit fees equal to 7 % of the amount funded under the Oxford Term Loans.

In December 2025 and February 2026, the Company repaid an additional $ 3 million and $ 5 million to Oxford, respectively, including a pro-rata portion of the final payment exit fees.

Under the Oxford loan and security agreement, the Oxford Term Loans were subject to a floating interest rate based on the sum of (a) the 1-month CME Term Secured Overnight Financing Rate (SOFR), (b) 0.10 %, and (c) 7.90 % for the first and second $ 25 million tranches and 7.00 % for the third $ 50 million tranche.

For the quarter ended March 31, 2026, the weighted average interest rate of the Oxford Term Loans was 11.2 %.

As of March 31, 2026, the Company reflected the carrying value of the Oxford Term Loans of $ 49.7 million in long-term debt on the condensed consolidated balance sheet as a result of its execution of the loan and security agreement with Hercules.

The carrying value above reflects an unamortized discount of $ 4.3 million to the face value of long-term debt related to debt issuance costs, the final payment exit fee, and the warrant fair value described below, which are amortized into interest and other expense.

Under the Oxford loan and security agreement, among other covenants, the Company was subject to a financial covenant requiring it to maintain a minimum balance of unrestricted cash, cash equivalents, short-term investments, and restricted cash, including a required minimum amount of $ 29 million to be maintained in a blocked account, in an amount equal to not less than the greater of (a) fifty percent ( 50 %) of the outstanding principal amount of the Oxford Term Loans and (b) the required minimum amount of $ 29 million.

As of March 31, 2026, the Company reflected the $ 29 million minimum cash in the blocked account as restricted cash on the condensed consolidated balance sheet.

The Company was in compliance with its debt covenants as of March 31, 2026.

Concurrent with its execution of the loan and security agreement with Hercules in May 2026, the Company repaid the remaining $ 54.3 million (including pro-rata final payment exit fees equal to 7 % of the amount funded) under the Oxford Term Loans.

In April 2025, December 2025 and February 2026, the Company repaid $ 45 million, $ 3 million and $ 5 million to Oxford, respectively, including pro-rata final payment exit fees equal to 7 % of the amount funded under the Oxford Term Loans.

In connection with the repayment of the Oxford term loans in May 2026, the Company recorded a loss on early extinguishment of debt of $ 4.3 million and is no longer subject to the $ 29 million minimum restricted cash requirement.

For additional information on the Company’s long-term debt obligations, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

5 unchanged sentences

Lexicon’s operating leases include leases of office space in The Woodlands, Texas and Bridgewater, New Jersey that will expire in January 2031 and January 2034, respectively.

As of March 31, 2026 and December 31, 2025, the right-of-use assets for the office space leases of $ 7.1 million and $ 7.3 million, respectively, are separately included in operating lease right-of-use-assets in the condensed consolidated balance sheet.

Current liabilities relating to the leases are included in accrued

liabilities in the condensed consolidated balance sheet (as further described in Note 4) and long-term operating lease liabilities of $ 6.4 million and $ 6.6 million, respectively, as of March 31, 2026 and December 31, 2025 are included in other long-term liabilities in the condensed consolidated balance sheet.

During the three months ended March 31, 2026 and 2025, the Company incurred lease expense of $ 0.5 million and $ 0.4 million, respectively.

During the three months ended March 31, 2026 and 2025, the Company made cash payments for lease liabilities of $ 0.4 million and $ 0.3 million, respectively.

As of March 31, 2026 and December 31, 2025, the weighted-average remaining lease terms were 6.7 and 7.0 years, respectively, with weighted-average discount rates of 10.5 % for each year.

The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at March 31, 2026:

As of June 30, 2026 and December 31, 2025, the right-of-use assets for the office space leases of $ 6.9 million and $ 7.3 million, respectively, are separately included in operating lease right-of-use-assets in the condensed consolidated balance sheet.

Current liabilities relating to the leases are included in accrued liabilities in the condensed consolidated balance sheet (as further described in Note 4) and long-term operating lease liabilities of

$ 6.2 million and $ 6.6 million, respectively, as of June 30, 2026 and December 31, 2025 are included in other long-term liabilities in the condensed consolidated balance sheet.

During the three months ended June 30, 2026 and 2025, the Company incurred lease expense of $ 0.5 million and $ 0.4 million, respectively.

During the six months ended June 30, 2026 and 2025, the Company incurred lease expense of $ 1.0 million and $ 0.8 million, respectively.

During the six months ended June 30, 2026 and 2025, the Company made cash payments for lease liabilities of $ 0.9 million and $ 0.7 million, respectively.

As of June 30, 2026 and December 31, 2025, the weighted-average remaining lease terms were 6.5 years and 7.0 years, respectively, with weighted-average discount rates of 10.5 % for each year.

The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at June 30, 2026:

(in thousands)

11 unchanged sentences

Compensation expense related to stock options and restricted stock units (“RSUs”) is determined based on the fair value of the award on the date of the grant and is recognized on a straight-line basis over the vesting period in which an employee is required to provide service.

Compensation expense for the three months ended March 31, 2026 and 2025 of $ 3.1 million and $ 3.0 million, respectively, is recorded separately in research and development expense and selling, general, and administrative expense as noted on the Company’s condensed consolidated statements of comprehensive loss.

Compensation expense for the three months ended June 30, 2026 and 2025 of $ 3.3 million and $ 3.2 million, respectively, and for the six months ended June 30, 2026 and 2025 of $ 6.4 million and $ 6.2 million, respectively, is recorded separately in research and development expense and selling, general, and administrative expense as noted on the Company’s condensed consolidated statements of comprehensive loss.

The fair value of stock options is estimated at the date of grant using the Black-Scholes method requiring the input of subjective assumptions.

3 unchanged sentences

Expected volatility is based on the historical volatility in the Company’s stock price.

The following weighted-average assumptions were used for stock options granted in the three months ended March 31, 2026 and 2025:

The following weighted-average assumptions were used for stock options granted in the six months ended June 30, 2026 and 2025:

Expected Volatility Risk-free Interest Rate Expected Term Dividend

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Employees 106 % 4.0 % 4 — %

— % — % — — %

Officers and non-employee directors 104 % 3.8 % 6 — %

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Employees 105 % 3.9 % 4 — %

— % — % — — %

Officers and non-employee directors 115 % 4.3 % 6 — %

(1) For the three months ended March 31, 2026 and 2025, there were no stock options granted to non-officer employees.

The following is a summary of stock option activity under Lexicon’s stock-based compensation plans:

6 unchanged sentences

Forfeited ( 305 ) 1.63

Outstanding at March 31, 2026 25,282 1.80

Exercisable at March 31, 2026 10,239 $ 2.78

Outstanding at June 30, 2026 25,481 1.80

Exercisable at June 30, 2026 11,379 $ 2.59

The following is a summary of restricted stock unit activity under Lexicon’s stock-based compensation plans:

5 unchanged sentences

Forfeited ( 418 ) 0.89

Outstanding at March 31, 2026 16,156 $ 1.06

During the three months ended March 31, 2026, the Company issued treasury shares totaling $ 5.2 million in lieu of issuing additional authorized common shares in order to satisfy the annual vesting of restricted stock units for its employees and officers.

Outstanding at June 30, 2026 15,505 $ 1.09

During the six months ended June 30, 2026, the Company issued treasury shares totaling $ 5.2 million in lieu of issuing additional authorized common shares in order to satisfy the annual vesting of restricted stock units for its employees and officers.

Other Capital Agreements

12 unchanged sentences

The CEO also uses consolidated cash and cash equivalents and short-term investments (which can be found on our Consolidated Balance Sheets) as a measure of segment assets for allocating resources.

Summary of segment net loss, including segment expenses were as follows:

Three Months Ended March 31,

(in thousands)

Summary of segment net (loss) income, including segment expenses were as follows:

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in thousands) (in thousands)

Net product revenue $ 680 $ 1,322 $ 1,770 $ 2,584

8 unchanged sentences

Other segment expense (1)

3,336 3,271 6,414 6,072

Total operating expenses 27,232 25,130 49,330 52,071

Loss from operations ( 996 ) ( 25,679 )

(Loss) income from operations ( 26,540 ) 3,736 ( 27,536 ) ( 21,943 )

Interest and other expense ( 2,609 ) ( 2,318 ) ( 4,199 ) ( 4,153 )

Interest income and other 1,543 2,219

Net loss $ ( 1,043 ) $ ( 25,295 )

(1) For the three months ended March 31, 2026, other segment expense includes stock compensation of (i) $ 1.4 million related to research and development personnel and (ii) $ 1.7 million related to general and administrative personnel.

For the three months ended March 31, 2025, other segment expense primarily includes, among other items, stock compensation of (i) $ 1.6 million related to research and development personnel, (ii) $ 0.04 million related to sales and marketing personnel and (iii) $ 1.4 million related to general and administrative personnel.

Interest and other income 1,723 1,834 3,266 4,053

Loss on early extinguishment of debt ( 4,349 ) — ( 4,349 ) —

Net (loss) income $ ( 31,775 ) $ 3,252 $ ( 32,818 ) $ ( 22,043 )

(1) For the three and six months ended June 30, 2026, other segment expense includes stock compensation of (i) $ 1.4 million and $ 2.8 million, respectively, related to research and development personnel and (ii) $ 2.0 million and $ 3.7 million, respectively, related to general and administrative personnel.

For the three and six months ended June 30, 2025, other segment expense primarily includes, among other items, stock compensation of (i) $ 1.6 million and $ 3.2 million, respectively, related to research and development personnel, (ii) $ 0.01 million and $ 0.05 million, respectively, related to sales and marketing personnel and (iii) $ 1.6 million and $ 3.0 million, respectively, related to general and administrative personnel.

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