What changed in this filing

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Item 1. Financial Statements

2025-08-06 compared with 2025-05-14 · 110 added, 79 removed, 288 unchanged (40% 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)

9 unchanged sentences

Operating lease right-of-use-assets 4,456 4,832

Restricted cash 29,000 —

Other assets 368 368

5 unchanged sentences

Deferred revenue 17,456 —

Current portion of long-term debt 42,056 —

Total current liabilities 34,836 45,248

6 unchanged sentences

5,000,000 shares authorized;

Series A Convertible preferred stock;

2,304,147 shares issued and none outstanding at March 31, 2025 and December 31, 2024

2,304,147 Series A Convertible Preferred shares issued and none outstanding

Common stock, $ 0.001 par value;

3 unchanged sentences

Accumulated deficit ( 1,989,285 ) ( 1,967,242 )

Accumulated other comprehensive income 25 119

Accumulated other comprehensive (loss) income ( 14 ) 119

Treasury stock, at cost, 2,381,939 and 1,528,008 shares, respectively

4 unchanged sentences

Lexicon Pharmaceuticals, Inc.

Condensed Consolidated Statements of Comprehensive Loss

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands, except per share amounts)

Three Months Ended March 31,

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

2025 2024 2025 2024

Net product revenue $ 1,322 $ 1,617 $ 2,584 $ 2,710

Licensing revenue 27,544 — 27,544 —

Royalties and other revenue — 30 — 67

7 unchanged sentences

Total operating expenses 25,130 57,001 52,071 103,464

Loss from operations ( 25,679 ) ( 45,333 )

Income (loss) from operations 3,736 ( 55,354 ) ( 21,943 ) ( 100,687 )

Interest and other expense ( 2,318 ) ( 2,211 ) ( 4,153 ) ( 7,159 )

Interest income and other, net 2,219 1,884

Net loss $ ( 25,295 ) $ ( 48,397 )

Net loss per common share, basic and diluted $ ( 0.07 ) $ ( 0.20 )

Weighted average common shares outstanding, basic and diluted 362,073 245,390

Other comprehensive loss:

Interest income and other 1,834 4,136 4,053 6,020

Net income (loss) $ 3,252 $ ( 53,429 ) $ ( 22,043 ) $ ( 101,826 )

Net income (loss) per common share, basic $ 0.01 $ ( 0.17 ) $ ( 0.06 ) $ ( 0.37 )

Net income (loss) per common share, diluted $ 0.01 $ ( 0.17 ) $ ( 0.06 ) $ ( 0.37 )

Weighted average common shares outstanding, basic 363,294 310,836 362,687 278,113

Weighted average common shares outstanding, diluted 363,570 310,836 362,687 278,113

Other comprehensive income (loss):

Unrealized loss on investments ( 39 ) ( 143 ) ( 133 ) ( 224 )

Comprehensive loss $ ( 25,389 ) $ ( 48,478 )

Comprehensive income (loss) $ 3,213 $ ( 53,572 ) $ ( 22,176 ) $ ( 102,050 )

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

12 unchanged sentences

Balance at March 31, 2024 247,765 $ 248 2,304 $ 23 $ 2,108,497 $ ( 1,815,236 ) $ ( 50 ) $ ( 4,615 ) $ 288,867

Stock-based compensation — — — — 4,859 — — — 4,859

Fees related to preferred stock — — — — ( 175 ) — — — ( 175 )

Issuance of common stock under Equity Incentive Plans 48 — — — 1 — — — 1

Conversion of preferred stock to common stock 115,207 115 ( 2,304 ) ( 23 ) ( 92 ) — — — —

Net loss — — — — — ( 53,429 ) — — ( 53,429 )

Unrealized loss on investments — — — — — — ( 143 ) — ( 143 )

Balance at June 30, 2024 363,020 $ 363 — $ — $ 2,113,090 $ ( 1,868,665 ) $ ( 193 ) $ ( 4,615 ) $ 239,980

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

7 unchanged sentences

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

Stock-based compensation — — — — 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.

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

14 unchanged sentences

Cash flows from investing activities:

Purchases of property and equipment — ( 250 )

Purchases of investments ( 90,943 ) ( 260,297 )

5 unchanged sentences

Payments for tax withholding on share-based compensation vesting ( 572 ) ( 1,730 )

Repayment of debt borrowings ( 45,000 ) —

Other debt financing fees — ( 400 )

Net cash (used in) provided by financing activities ( 45,572 ) 239,369

Net (decrease) increase in cash and cash equivalents ( 3,768 ) 74,029

Cash and cash equivalents at beginning of period 66,656 22,465

Cash and cash equivalents at end of period $ 62,888 $ 96,494

Net (decrease) increase in cash, cash equivalents and restricted cash ( 16,292 ) 13,152

Cash, cash equivalents, and restricted cash at beginning of period 66,656 22,465

Cash, cash equivalents, and restricted cash at end of period $ 50,364 $ 35,617

Supplemental disclosure of cash flow information:

2 unchanged sentences

Accrued financing costs $ — $ 910

Conversion of preferred stock to common stock — 115

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

10 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, 2025 are not necessarily indicative of the results that may be expected for the year ended December 31, 2025.

Operating results for the three and six month period ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ended December 31, 2025.

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, 2024, as filed with the SEC.

7 unchanged sentences

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – Improvements to Income Tax Disclosures , which is effective prospectively for annual periods beginning after December 15, 2024.

Early adoption is permitted for both standards.

The Company does not expect this accounting pronouncement to have a material impact on the financial statements.

Cash and Cash Equivalents and Investments

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

As of March 31, 2025

Cash and Cash Equivalents, Restricted Cash and Investments

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

As of June 30, 2025

Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value

1 unchanged sentence

Cash and cash equivalents $ 21,364 $ — $ — $ 21,364

Restricted cash 29,000 — — 29,000

Total cash and cash equivalents and restricted cash $ 50,364 $ — $ — $ 50,364

Securities maturing within one year:

2 unchanged sentences

Total short-term investments $ 117,657 $ 9 $ ( 23 ) $ 117,643

Total cash and cash equivalents and short-term investments $ 194,814 $ 31 $ ( 6 ) $ 194,839

Total cash and cash equivalents, restricted cash and short-term investments $ 168,021 $ 9 $ ( 23 ) $ 168,007

As of December 31, 2024

2 unchanged sentences

Cash and cash equivalents $ 66,656 $ — $ — $ 66,656

Restricted cash — — — —

Total cash and cash equivalents and restricted cash $ 66,656 $ — $ — $ 66,656

Securities maturing within one year:

2 unchanged sentences

Total short-term investments $ 171,183 $ 136 $ ( 18 ) $ 171,301

Total cash and cash equivalents and short-term investments $ 237,839 $ 136 $ ( 18 ) $ 237,957

As of March 31, 2025 and December 31, 2024, Lexicon’s investments in an unrealized loss position had an estimated fair value of $ 57.3 million and $ 12.9 million, respectively.

There were no realized gains or losses during either of the three month periods ended March 31, 2025 and 2024.

Total cash and cash equivalents, restricted cash and short-term investments $ 237,839 $ 136 $ ( 18 ) $ 237,957

As of June 30, 2025 and December 31, 2024, Lexicon’s investments in an unrealized loss position had an estimated fair value of $ 76.4 million and $ 12.9 million, respectively.

There were no realized gains or losses during either of the six month periods ended June 30, 2025 and 2024.

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, 2025

Assets at Fair Value as of June 30, 2025

Level 1 Level 2 Level 3 Total

2 unchanged sentences

Short-term investments 94,846 22,797 — 117,643

Total cash and cash equivalents and short-term investments $ 173,020 $ 21,819 $ — $ 194,839

Restricted cash $ 29,000 $ — $ — $ 29,000

Total cash and cash equivalents, short-term investments and restricted cash $ 145,210 $ 22,797 $ — $ 168,007

Assets at Fair Value as of December 31, 2024

3 unchanged sentences

Short-term investments 127,990 43,311 — 171,301

Total cash and cash equivalents and short-term investments $ 194,646 $ 43,311 $ — $ 237,957

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

Restricted cash — — — $ —

Total cash and cash equivalents, short-term investments and restricted cash $ 194,646 $ 43,311 $ — $ 237,957

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) 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.

Supplemental Financial Information

The following tables show the Company’s additional balance sheet information:

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

Property and Equipment.

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

In Years 2025 2024

(in thousands)

Property and Equipment:

Computers and software 3 - 5

5 unchanged sentences

Net property and equipment $ 2,132 $ 2,484

As of March 31, As of December 31,

(in thousands)

Accrued Liabilities.

As of June 30, As of December 31,

(in thousands)

Accrued research and development services $ 4,257 $ 12,251

3 unchanged sentences

Total accrued liabilities $ 11,481 $ 30,447

As of March 31, 2025 and December 31, 2024, $ 1.1 million and $ 8.8 million of accrued severance is included in accrued compensation and benefits within accrued liabilities on the condensed consolidated balance sheet as noted in the table above.

As of June 30, 2025 and December 31, 2024, $ 0.6 million and $ 8.8 million of accrued severance is included in accrued compensation and benefits within accrued liabilities on the condensed consolidated balance sheet as noted in the table above.

Net Income (Loss) Per Share.

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

Shares associated with warrants, stock options and restricted stock units that could potentially dilute earnings per share in the future are not included in the computation of diluted earnings per share when the company has a net loss because they are antidilutive.

For the three months ended June 30, 2025, approximately 0.3 million share-based awards were included in the calculation of diluted earnings per share.

For the three month period ended June 30, 2024 and six month periods ended June 30, 2025 and June 30, 2024, no share-based awards were included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive due to the net loss in these periods.

Collaborations and Strategic Alliances

Novo Nordisk .

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

In March 2025, the Company entered into an exclusive license agreement (the “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 License Agreement, the Company granted Novo Nordisk an exclusive, worldwide, royalty-bearing right and license under its patent rights and know-how to develop, manufacture and commercialize LX9851.

4 unchanged sentences

The Company identified the obligation to provide clinical supply of LX9851 at an agreed upon transfer price for a specified time period as a separate performance obligation, but allocated none of the $ 45 million upfront payment to the clinical supply obligation as the supply is being offered subject to reasonable and customary contract manufacturing terms at its stand-alone selling price.

As of March 31, 2025, the Company had provided the licensed technology under its patent rights and know-how to develop, manufacture and commercialize LX9851, but had not yet completed any of the IND-enabling activities.

Accordingly, the $ 45 million upfront payment was recorded as accounts receivable and as deferred revenue on the condensed consolidated balance sheet.

The Company will recognize such amount as revenue using the input method over the period the IND-enabling activities are performed.

The Company provided the licensed technology under its patent rights and know-how to develop, manufacture and commercialize LX9851 in March 2025.

During the quarter ended June 30, 2025, the Company recognized $ 27.5 million as licensing revenue on the condensed consolidated statements of comprehensive income (loss) based on partial completion of the IND-enabling activities.

The remaining $ 17.5 million of the $ 45 million upfront payment is recorded as deferred revenue on the condensed consolidated balance sheet.

The Company will recognize the remaining amount as revenue using the input method over the remaining period the IND-enabling activities are performed.

Any future milestone or royalty payments that the Company would be eligible to receive were excluded from the upfront payment, as all milestone or royalty amounts were fully constrained based on the probability of achievement.

9 unchanged sentences

The first two $ 25 million tranches totaling $ 50 million were funded in 2022 and the third $ 50 million tranche was funded in June 2023.

Availability of the fourth $ 25 million tranche expired on April 15, 2025.

Availability of the fourth $ 25 million tranche expired in April 2025.

The fifth $ 25 million tranche is available for draw at Lexicon’s option, subject to Oxford’s consent, at any time prior to the expiration of the interest-only period with a current amortization date of May 1, 2027.

4 unchanged sentences

The floating interest rate is currently 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 tranches and 7.00 % for the third tranche.

As of March 31, 2025, the weighted average interest rate of the Oxford Term Loans was 11.9 %.

As of June 30, 2025, the weighted average interest rate of the Oxford Term Loans was 11.9 %.

In April 2025 the Company repaid $ 45 million (including final payment exit fees) to Oxford on a pro-rata basis across each loan tranche pursuant to the terms of the Seventh Amendment.

2 unchanged sentences

Additionally, Lexicon may prepay the Oxford Term Loans in whole at its option at any time subject to prepayment fees of up to 3 % which decline over the three years following the funding date of each loan tranche.

As of March 31, 2025, the Company reflected the $ 42.1 million of outstanding principal repaid in April 2025 in current maturities of long-term debt and the remaining carrying value of the Oxford Term Loans of $ 58.6 million in long-term debt on the condensed consolidated balance sheet.

The carrying value above reflect an unamortized discount of $ 6.3 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 being amortized into interest and other expense.

As of June 30, 2025, the Company reflected the carrying value of the Oxford Term Loans of $ 56.1 million in long-term debt on the condensed consolidated balance sheet.

The carrying value above reflects an unamortized discount of $ 5.9 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 being amortized into interest and other expense.

Oxford Warrants.

4 unchanged sentences

Among other restrictive provisions and covenants, the loan and security agreement includes a financial covenant which requires us to maintain a minimum balance of unrestricted cash, cash equivalents.

short-term investments, and restricted cash, inclusive of 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.

short-term investments, and restricted cash, inclusive of 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 June 30, 2025, the Company reflected the $ 29 million minimum cash in the blocked account as restricted cash on the condensed consolidated balance sheet.

The Loan Agreement also contains certain customary representations and warranties, affirmative and negative covenants and events of default applicable to Lexicon and its subsidiaries.

In addition to the financial covenant, additional

covenants include those restricting dispositions, fundamental changes to its business, mergers or acquisitions, indebtedness, encumbrances, distributions, investments, transactions with affiliates and subordinated debt.

In addition to the financial covenant, additional covenants include those restricting dispositions, fundamental changes to its business, mergers or acquisitions, indebtedness, encumbrances, distributions, investments, transactions with affiliates and subordinated debt.

If an event of default occurs and is continuing, Oxford may declare all amounts outstanding under the Loan Agreement to be immediately due and payable.

Lexicon’s obligations under the Oxford Term Loans 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 March 31, 2025.

The Company was in compliance with its debt covenants as of June 30, 2025.

Commitments and Contingencies

6 unchanged sentences

Lexicon does not apply this accounting to those leases with terms of twelve months or less.

As of March 31, 2025 and December 31, 2024, the right-of-use assets for the office space leases of $ 4.6 million and $ 4.8 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 approximately $ 4.5 million and $ 4.6 million, respectively, as of March 31, 2025 and December 31, 2024 are included in other long-term liabilities in the condensed consolidated balance sheet.

During each of the three months ended March 31, 2025 and 2024, the Company incurred lease expense of $ 0.4 million.

During each of the three months ended March 31, 2025 and 2024, the Company made cash payments for lease liabilities of $ 0.3 million.

As of March 31, 2025 and December 31, 2024, the weighted-average remaining lease terms were 8.5 years and 8.6 years, respectively, with weighted-average discount rates of 9.7 % for each year.

The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at March 31, 2025:

As of June 30, 2025 and December 31, 2024, the right-of-use assets for the office space leases of $ 4.5 million and $ 4.8 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 approximately $ 4.4 million and $ 4.6 million, respectively, as of June 30, 2025 and December 31, 2024 are included in other long-term liabilities in the condensed consolidated balance sheet.

During each of the three and six months ended June 30, 2025 and 2024, the Company incurred lease expense of $ 0.4 million and $ 0.8 million, respectively.

During each of the six months ended June 30, 2025 and 2024, the Company made cash payments for lease liabilities of $ 0.7 million.

As of June 30, 2025 and December 31, 2024, the weighted-average remaining lease terms were 8.4 years and 8.6 years, respectively, with weighted-average discount rates of 9.7 % for each year.

The following table reconciles the undiscounted cash flows of the operating lease liability to the recorded lease liability at June 30, 2025:

(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, 2025 and 2024 of $ 3.0 million and $ 4.3 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, 2025 and 2024 of $ 3.2 million and $ 4.9 million, respectively, and for the six months ended June 30, 2025 and 2024 of $ 6.2 million and $ 9.2 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 income (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, 2025 and 2024:

The following weighted-average assumptions were used for stock options granted in the six months ended June 30, 2025 and 2024:

Expected Volatility Risk-free Interest Rate Expected Term Dividend

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 — %

Three Months Ended March 31, 2024

Six Months Ended June 30, 2024

Employees 96 % 4.5 % 4 — %

Officers and non-employee directors 104 % 4.2 % 6 — %

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

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

6 unchanged sentences

Forfeited ( 2,388 ) 2.41

Outstanding at March 31, 2025 23,702 2.18

Exercisable at March 31, 2025 7,560 $ 4.18

Outstanding at June 30, 2025 23,285 2.10

Exercisable at June 30, 2025 7,835 $ 4.03

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

5 unchanged sentences

Forfeited ( 1,539 ) 1.39

Outstanding at March 31, 2025 16,525 $ 1.00

Outstanding at June 30, 2025 16,323 $ 0.95

Other Capital Agreements

Convertible Preferred Stock.

In March 2024, Lexicon entered into an agreement with certain accredited investors pursuant to which the Company agreed to sell 2,304,147 shares of its Series A Convertible Preferred Stock, par value $ 0.01 per share, in a private placement at a price of $ 108.50 per share.

The Company received net proceeds of $ 241.3 million, after deducting placement agent fees and offering expenses from the private placement offering.

An affiliate of Invus, L.P.

elected to participate on the same terms as each other purchaser on a pro rata basis and also agreed to vote at the Company’s 2024 annual meeting of stockholders in favor of the approval of an amendment to the Company’s certificate of incorporation increasing the total authorized common shares thereunder from 300,000,000 to 450,000,000 shares (the “New Charter”).

In May 2024, following the approval of the New Charter by the Company’s shareholders, the adoption of the New Charter by the Company’s board of directors, and the filing and acceptance of the New Charter by the Secretary of State of Delaware, each share of preferred stock was converted into 50 shares of common stock at par value, or 115,207,350 shares in the aggregate.

In March 2024, Lexicon entered into an agreement with certain accredited investors pursuant to which the Company agreed to sell 2,304,147 shares of its Series A Convertible Preferred Stock and received net proceeds of $ 241.3 million, after fees and offering expenses.

In May 2024, each share of preferred stock was converted into 50 shares of common stock at par value, or 115,207,350 shares in the aggregate.

Segment Information

4 unchanged sentences

The CEO evaluates single-segment consolidated financial information against budget for purposes of making operating decisions, planning and forecasting for future periods, and deciding the level of investment in the Company’s various operating activities and other capital allocation activities.

The CODM assesses financial performance based on consolidated net income (loss) (as reported on the consolidated statement of comprehensive loss).

The CODM assesses financial performance based on consolidated net income (loss) (as reported on the consolidated statement of comprehensive income (loss)).

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

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

2025 2024 2025 2024

(in thousands) (in thousands)

Net product revenue $ 1,322 $ 1,617 $ 2,584 $ 2,710

Licensing revenue 27,544 — 27,544 —

Royalties and other revenue — 30 — 67

6 unchanged sentences

Other segment expense (1)

3,271 5,050 6,072 9,389

Total operating expenses 25,130 57,001 52,071 103,464

Loss from operations ( 25,679 ) ( 45,333 )

Income (loss) from operations 3,736 ( 55,354 ) ( 21,943 ) ( 100,687 )

Interest and other expense ( 2,318 ) ( 2,211 ) ( 4,153 ) ( 7,159 )

Interest income and other, net 2,219 1,884

Net loss $ ( 25,295 ) $ ( 48,397 )

(1) For the three months ended March 31, 2025 and 2024, other segment expense primarily includes, among other items, stock compensation of $ 1.6 million related to research and development personnel for each period;

$ 0.04 million and $ 0.8 million related to sales and marketing personnel, respectively;

and $ 1.4 million and $ 1.9 million related to general and administrative personnel.

Interest income and other 1,834 4,136 4,053 6,020

Net income (loss) $ 3,252 $ ( 53,429 ) $ ( 22,043 ) $ ( 101,826 )

(1) For the three and six months ended June 30, 2025 and 2024, other segment expense primarily includes, among other items, stock compensation of $ 1.6 million, $ 1.7 million, $ 3.2 million, and $ 3.3 million, respectively, related to research and development personnel;

$ 0.01 million, $ 1.2 million, $ 0.05 million , and $ 2.0 million, respectively, related to sales and marketing personnel;

and $ 1.6 million, $ 2.0 million, $ 3.0 million, and $ 3.9 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