Maze Therapeutics, Inc. 10-Q

Item 1. Financial Statements (Unaudited) Maze Therapeutics, Inc. Condensed Bal ance Sheets (Unaudited) (In thousands, except share and per share data) June 30, December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 264,541 $ 196,812 Prepaid expenses and other current assets 6,609 4,859 Total current assets 271,150 201,671 Property and equipment, net 6,006 6,668 Restricted cash 1,089 1,088 Operating lease right-of-use asset 21,707 23,250 Other assets 3,567 7,865 Total assets $ 303,519 $ 240,542 Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable $ 3,666 $ 1,939 Accrued expenses and other current liabilities 11,516 14,102 Operating lease liabilities, current 4,718 4,632 Total current liabilities 19,900 20,673 Operating lease liabilities, net of current portion 20,291 21,996 Other liabilities, non-current 1,090 969 Total liabilities 41,281 43,638 Commitments and contingencies (Note 8) Redeemable convertible preferred stock, $ 0.001 par value; no shares authorized, issued and outstanding as of June 30, 2025; 298,205,027 shares authorized and 297,205,041 shares issued and outstanding as of December 31, 2024; aggregate liquidation preference of $ 502,390 as of December 31, 2024 — 508,087 Stockholders’ equity (deficit): Preferred stock, $ 0.001 par value; 10,000,000 and no shares authorized as of June 30, 2025 and December 31, 2024, respectively; no shares issued and outstanding as of June 30, 2025 and December 31, 2024 — — Common stock, $ 0.001 par value; 500,000,000 and 410,000,000 shares authorized as of June 30, 2025 and December 31, 2024, respectively; 43,850,884 and 2,446,864 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively; 10,372 shares subject to repurchase as of June 30, 2025 and December 31, 2024 44 2 Additional paid-in-capital 687,086 47,242 Accumulated deficit ( 424,892 ) ( 358,427 ) Total stockholders’ equity (deficit) 262,238 ( 311,183 ) Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) $ 303,519 $ 240,542 See accompanying notes to these financial statements. 1 Maze Therapeutics, Inc. Condensed Statements of Opera tions and Comprehensive (Loss) Income (Unaudited) (In thousands, except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 License revenue $ — $ 165,000 $ — $ 165,000 Operating expenses: Research and development 28,108 19,546 55,688 41,423 General and administrative 8,366 5,899 16,187 12,036 Total operating expenses 36,474 25,445 71,875 53,459 (Loss) income from operations ( 36,474 ) 139,555 ( 71,875 ) 111,541 Interest and other income, net 2,795 1,011 5,410 1,292 Change in fair value of convertible promissory notes — 216 — ( 4,545 ) (Loss) income before income tax expense ( 33,679 ) 140,782 ( 66,465 ) 108,288 Income tax expense — ( 1,726 ) — ( 1,726 ) Net (loss) income and comprehensive (loss) income $ ( 33,679 ) $ 139,056 $ ( 66,465 ) $ 106,562 Allocation of undistributed earnings to participating securities (see Note 12) — ( 124,912 ) — ( 95,824 ) Net (loss) income attributable to common stockholders, basic (see Note 12) $ ( 33,679 ) $ 14,144 $ ( 66,465 ) $ 10,738 Net (loss) income attributable to common stockholders, diluted (see Note 12) $ ( 33,679 ) $ 13,884 $ ( 66,465 ) $ 10,415 Net (loss) income per share attributable to common stockholders (see Note 12): Basic $ ( 0.77 ) $ 5.92 $ ( 1.83 ) $ 4.54 Diluted $ ( 0.77 ) $ 3.22 $ ( 1.83 ) $ 3.18 Weighted-average shares of common stock outstanding used to compute net (loss) income per share attributable to common stockholders (see Note 12): Basic 43,797,421 2,389,119 36,254,828 2,362,866 Diluted 43,797,421 4,314,359 36,254,828 3,270,120 See accompanying notes to these financial statements. 2 Maze Therapeutics, Inc. Condensed Statement s of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Unaudited) (In thousands, except share data) Redeemable convertible Additional Total preferred stock Common stock paid-in Accumulated stockholders’ Shares Amount Shares Amount capital deficit deficit Balance as of December 31, 2023 203,415,024 $ 383,902 2,385,212 $ 2 $ 21,836 $ ( 395,686 ) $ ( 373,848 ) Exercise of stock options — — 30,083 — 365 — 365 Issuance of restricted stock — — 10 — — — — Vesting of restricted stock and early exercised stock options — — — — 11 — 11 Stock-based compensation expense — — — — 2,310 — 2,310 Net loss and comprehensive loss — — — — — ( 32,494 ) ( 32,494 ) Balance as of March 31, 2024 203,415,024 $ 383,902 2,415,305 $ 2 $ 24,522 $ ( 428,180 ) $ ( 403,656 ) Exercise of stock options — — 8,555 — 79 — 79 Issuance of restricted stock — — 2 — — — — Vesting of restricted stock and early exercised stock options — — — — 6 — 6 Stock-based compensation expense — — — — 2,142 — 2,142 Net income and comprehensive income — — — — — 139,056 139,056 Balance as of June 30, 2024 203,415,024 $ 383,902 2,423,862 $ 2 $ 26,749 $ ( 289,124 ) $ ( 262,373 ) Redeemable convertible Additional Total preferred stock Common stock paid-in Accumulated stockholders’ Shares Amount Shares Amount capital deficit equity (deficit) Balance as of December 31, 2024 297,205,041 $ 508,087 2,446,864 $ 2 $ 47,242 $ ( 358,427 ) $ ( 311,183 ) Issuance of common stock in connection with initial public offering, net of issuance costs of $ 15,402 — — 8,750,000 9 124,589 — 124,598 Conversion of redeemable convertible preferred stock to common stock upon initial public offering ( 297,205,041 ) ( 508,087 ) 32,586,823 33 508,054 — 508,087 Exercise of stock options — — 13,479 — 126 — 126 Stock-based compensation expense — — — — 3,226 — 3,226 Net loss and comprehensive loss — — — — — ( 32,786 ) ( 32,786 ) Balance as of March 31, 2025 — $ — 43,797,166 $ 44 $ 683,237 $ ( 391,213 ) $ 292,068 Issuance of restricted stock — — 2 — — — — Issuance of common stock under the 2025 Employee Stock Purchase Plan — — 53,716 — 612 — 612 Stock-based compensation expense — — — — 3,237 — 3,237 Net loss and comprehensive loss — — — — — ( 33,679 ) ( 33,679 ) Balance as of June 30, 2025 — $ — 43,850,884 $ 44 $ 687,086 $ ( 424,892 ) $ 262,238 See accompanying notes to these financial statements. 3 Maze Therapeutics, Inc. Condensed Statements of C ash Flows (Unaudited) (In thousands) Six Months Ended June 30, 2025 2024 Operating activities Net (loss) income $ ( 66,465 ) $ 106,562 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation 1,333 1,804 Stock-based compensation expense 6,463 4,452 Non-cash lease expense 1,543 1,423 Change in fair value of convertible promissory notes — 4,545 Other items, net 21 147 Changes in operating assets and liabilities: Prepaid expenses and other current assets ( 1,750 ) 618 Other assets 18 ( 341 ) Accounts payable 1,846 144 Accrued expenses and other liabilities ( 957 ) 3,668 Operating lease liabilities ( 1,620 ) ( 1,411 ) Net cash (used in) provided by operating activities ( 59,568 ) 121,611 Investing activities Purchases of property and equipment ( 692 ) ( 439 ) Net cash used in investing activities ( 692 ) ( 439 ) Financing activities Proceeds from initial public offering, net of offering costs paid 127,752 — Proceeds from exercise of stock option awards, net of repurchases 126 444 Proceeds from issuance of common stock under the 2025 Employee Stock Purchase Plan 612 — Proceeds from issuance of convertible promissory notes, net of issuance costs — 24,475 Payment of deferred offering costs — ( 184 ) Payment of success fee derivative ( 500 ) — Net cash provided by financing activities 127,990 24,735 Net increase in cash, cash equivalents, and restricted cash 67,730 145,907 Cash, cash equivalents, and restricted cash at beginning of the period 197,900 30,246 Cash, cash equivalents, and restricted cash at end of the period $ 265,630 $ 176,153 Supplemental disclosure of non-cash investing and financing activities Purchases of property and equipment recorded in accounts payable and accrued expenses $ — $ 32 Vesting of restricted stock and stock options subject to repurchase $ — $ 17 Deferred offering costs recorded in accounts payable and accrued expenses $ — $ 1,253 Reconciliation to cash, cash equivalents and restricted cash: Cash and cash equivalents $ 264,541 $ 175,065 Restricted cash $ 1,089 $ 1,088 Total cash, cash equivalents and restricted cash $ 265,630 $ 176,153 See accompanying notes to these financial statements. 4 Maze Therapeutics, Inc. Notes to Condensed Fi nancial Statements (Unaudited) 1. Organization and principal activities Description of business Maze Therapeutics, Inc., or the Company, is a clinical stage biopharmaceutical company harnessing the power of human genetics and variant functionalization with its Maze Compass platform to develop small molecule precision medicines for the treatment of kidney and metabolic diseases, including obesity. The Company was incorporated in Delaware in August 2017 and is located in South San Francisco, California. Reverse stock split On January 22, 2025, the Company’s board of directors approved a 1-for-9.641 reverse stock split of its issued and outstanding shares of common stock, which was effected on January 24, 2025. Upon the effectiveness of the reverse stock split, (i) all shares of outstanding common stock were adjusted; (ii) the conversion ratio of the convertible preferred stock was adjusted; (iii) the number of shares of common stock for which each outstanding option to purchase common stock is exercisable were adjusted; and (iv) the exercise price of each outstanding option to purchase common stock was adjusted. All of the outstanding common stock share numbers (including shares of common stock subject to the Company’s options and as converted for the outstanding convertible preferred stock), share prices, exercise prices and per share amounts contained in the condensed financial statements have been retroactively adjusted in the condensed financial statements to reflect this reverse stock split for all periods presented. The par value per share and the authorized number of shares of common stock and preferred stock were not adjusted as a result of the reverse stock split. Initial Public Offering In February 2025, the Company completed its initial public offering, pursuant to which it issued and sold an aggregate of 8,750,000 shares of its common stock at an initial public offering price of $ 16.00 per share, resulting in net proceeds of approximately $ 127.8 million, after deducting underwriting discounts, commissions and other offering expenses paid by the Company in 2025. Immediately prior to the closing of the initial public offering, the Company’s outstanding convertible preferred stock automatically converted into 32,586,823 shares of common stock. Following the closing of the initial public offering, no shares of convertible preferred stock were authorized or outstanding. In connection with the completion of the initial public offering on February 3, 2025, the Company’s certificate of incorporation was amended and restated to (i) authorize 500,000,000 shares of common stock, par value $ 0.001 per share and (ii) authorize 10,000,000 shares of undesignated preferred stock, par value $ 0.001 per share, each of which may be issued from time to time by the Company’s board of directors in one or more series. The amended and restated certificate of incorporation eliminated all references to the previously existing series of convertible preferred stock. Liquidity and capital resources The Company has incurred significant losses and negative cash flows from operations since its inception, except for the net income and cash provided by operations during the year ended December 31, 2024, and expects to incur significant and increasing losses as a result of its continued research and development activities. As of June 30, 2025, the Company had an accumulated deficit of $ 424.9 million . Historically, the Company has financed its operations primarily through issuances of its equity, issuances of convertible promissory notes and license agreements. The Company may seek to raise capital through debt financings, equity financings, license agreements, or other sources of financing. There can be no assurance that such financing will be available or will be at terms acceptable to the Company. As of June 30, 2025, the Company had cash and cash equivalents of $ 264.5 million . The Company believes that its cash and cash equivalents as of June 30, 2025 will be sufficient to fund the Company’s operations for at least one year from the issuance date of these unaudited condensed financial statements. 5 2. Summary of significant accounting policies Basis of presentation The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, for interim financial information and the instructions to Form 10-Q and Article 10 of the Securities and Exchange Commission, or SEC, Regulation S-X for interim financial information. These unaudited condensed financial statements and notes should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 31, 2025, or the 2024 10-K. The condensed balance sheet as of December 31, 2024 was derived from the audited annual financial statements as of and for the period then ended. Certain information and footnote disclosures included in the Company’s annual financial statements have been condensed or omitted. The accompanying unaudited condensed financial statements reflect all adjustments that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. All such adjustments are of a normal recurring nature except for the impacts of adopting new accounting standards, if any, discussed below. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. During the six months ended June 30, 2025, there were no significant changes to the Company’s significant accounting policies as described in the Company’s audited financial statements as of and for the year ended December 31, 2024 , as included in the 2024 10-K. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. The Company bases its estimates on historical experience and market-specific or other relevant assumptions that it believes are reasonable under the circumstances. Assets and liabilities reported in the Company’s condensed balance sheet and expenses reported are affected by estimates and assumptions, which are used for, but are not limited to, measuring and recognizing revenue, and determining the fair value of assets and liabilities, including the Company’ s convertible promissory notes, common stock valuation, income tax uncertainties, measurement of stock-based compensation expense, and certain accruals. Actual results could differ from such estimates or assumptions. Segment reporting The Company operates and manages its business as one reportable and operating segment, which is the business of harnessing its understanding of human genetics and variant functionalization to develop small molecule precision medicines. The Company’s chief executive officer , who is the chief operating decision maker, or CODM, reviews financial information on an aggregate basis for allocating resources and evaluating financial performance. The CODM, in alignment with the Company’ s overall corporate strategy and goals, analyzes a variety of data to guide segment resource allocation, including program and portfolio scientific data, probability of regulatory and commercial success, and the competitive environment. The CODM also reviews certain financial results included in the segment (loss) income from operations which is reported on the condensed statements of operations and comprehensive (loss) income as total (loss) income from operations. The measure of segment assets is reported on the condensed balance sheets as total assets. 6 As of June 30, 2025 and December 31, 2024 , all of the Company’s property and equipment was maintained in the United States. No revenue was generated during the three and six months ended June 30, 2025 . The Company generated revenue of $ 165.0 million during the three and six months ended June 30, 2024 . The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2025 and 2024 (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 License revenue $ — $ 165,000 $ — $ 165,000 Research and development expenses Personnel-related costs 10,609 8,168 20,953 16,792 Clinical trial expenses 5,074 2,387 10,750 4,924 Outside research and development services 4,403 3,186 9,324 7,461 Manufacturing expenses 2,562 951 3,749 2,234 Facilities, depreciation and other expenses 5,460 4,854 10,912 10,012 Total research and development expenses 28,108 19,546 55,688 41,423 General and administrative expenses 8,366 5,899 16,187 12,036 Segment operating expenses 36,474 25,445 71,875 53,459 Segment (loss) income from operations ( 36,474 ) 139,555 ( 71,875 ) 111,541 Segment interest and other income, net 2,795 1,011 5,410 1,292 Change in fair value of convertible promissory notes — 216 — ( 4,545 ) Segment (loss) income before income taxes $ ( 33,679 ) $ 140,782 $ ( 66,465 ) $ 108,288 Fair value measurement Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, or an exit price, in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date, and establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. The Company determined the fair value of financial assets and liabilities using the fair value hierarchy that describes three levels of inputs that may be used to measure fair value, as follows: • Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; • Level 2—Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3—Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. For certain financial instruments, including cash and accounts payable, as well as certain accrued liabilities, the recorded amount approximates estimated fair value due to their relatively short maturity period. Cash, cash equivalents and restricted cash The Company considers all highly liquid financial instruments with original maturities of 90 days or less at the date of purchase to be cash equivalents. As of June 30, 2025 and December 31, 2024, cash equivalents consisted of money market funds. Restricted cash is comprised of cash that is restricted as to withdrawal or use under the terms of certain contractual agreements. Restricted cash as of June 30, 2025 and December 31, 2024 included $ 1.1 million as collateral for a letter of credit related to the Company’s headquarters building lease in South San Francisco, California. Restricted cash is classified as a noncurrent asset on the balance sheet. As of June 30, 2025 and December 31, 2024 , restricted cash consisted of money market funds. 7 Deferred offering costs The Company defers offering costs consisting of legal, accounting and other fees and costs directly associated with in-process equity financings until such financings are consummated. After consummation of the equity financing, these costs are classified in stockholders’ equity (deficit) as a reduction of the additional paid-in capital recorded as a result of the financing. If the in-process financing is abandoned, the deferred offering costs are expensed immediately as a charge to operating expenses in the condensed statements of operations and comprehensive (loss) income. As of December 31, 2024 , approximately $ 4.3 million of deferred offering costs related to the Company’s initial public offering were recorded within other assets in the accompanying condensed balance sheets and upon completion of the Company’s initial public offering in February 2025, the deferred offering costs were recorded as a reduction to the additional paid-in capital within stockholders’ equity (deficit) recorded in the accompanying condensed balance sheets as of June 30, 2025 . Revenue recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , or ASC 606. To determine the appropriate amount and timing of revenue to be recognized under this guidance, the Company performs the following steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract; (iii) determines the transaction price, including variable consideration, if any; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when (or as) the entity satisfies a performance obligation. The Company has entered into arrangements involving the license of intellectual property. Analyzing the license arrangements to identify performance obligations requires the use of judgment. In arrangements that include the license of intellectual property and other promised services, the Company first identifies if the licenses are distinct from the other promises in the arrangement. For the license of intellectual property that is distinct, the Company recognizes revenue from consideration allocated to the license when the license is transferred and the customer is able to benefit from the license. If the license is not distinct, the license is combined with other services into a single performance obligation and the Company recognizes revenue when (or as) the performance obligation is satisfied. Factors that are considered in evaluating whether a license is distinct from other promised services include, for example, whether the counterparty can benefit from the license without the promised service on its own or with other readily available resources and whether the promised service is expected to significantly modify or customize the intellectual property. Promised goods and services that are not material in the context of the contract are not considered performance obligations. The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. Non-refundable upfront payments are considered fixed consideration and included in the transaction price. If an arrangement includes development, regulatory or commercial milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. The Company includes the amount of estimated variable consideration, including milestones, in the transaction price to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur. Milestone payments that are not within the Company’s control or the licensee’s control, such as regulatory approvals, are generally not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of the milestones and any related constraint, and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which will affect revenue in the period of adjustment. For arrangements with licenses of intellectual property that include sales-based royalties, including milestone payments based on the level of sales, and if the license is deemed to be the predominant item to which the royalties relate, the Company recognizes royalty revenue and sales-based milestones at the later of (i) when the related sales occur, or (ii) when the performance obligation to which the royalty has been allocated has been satisfied. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s balance sheets. If the related performance obligation is expected to be satisfied within the next twelve months this will be classified in current liabilities. Amounts recognized as revenue prior to receipt are recorded as contract assets in the Company’s balance sheets. If the Company expects to have an unconditional right to receive consideration in the next twelve months, this will be classified in current assets. 8 Convertible promissory notes From December 2023 through April 2024, the Company issued a total of $ 40.7 million aggregate principal amount of convertible promissory notes, which contained automatic conversion features triggered upon a qualified preferred stock financing or a qualified public offering. As permitted under Accounting Standards Codification 825, Financial Instruments , or ASC 825, the Company elected the fair value option for recognition of the convertible promissory notes. In accordance with ASC 825, the Company recorded these convertible promissory notes at fair value and remeasured the convertible promissory notes at fair value each reporting period with changes in fair value recorded in the condensed statements of operations and comprehensive (loss) income. As a result of applying the fair value option, direct costs and fees related to the convertible promissory notes were recognized in earnings as incurred and not deferred. The impact of interest expense on the convertible promissory notes is included within the changes in fair value. The Company recorded a net gain of $ 0.2 million and a net loss of $ 4.5 million in the condensed statements of operations and comprehensive (loss) income for the three and six months ended June 30, 2024 , respectively, reflecting the change in the fair value of the convertible promissory notes. In connection with the private placement of Series D convertible preferred stock the Company completed in November 2024, which was a qualified preferred stock financing pursuant to the terms of the convertible promissory notes, the outstanding convertible promissory notes automatically converted into shares of Series D-1 convertible preferred stock, and no convertible promissory notes were outstanding as of December 31, 2024. Accordingly, no change in fair value of convertible promissory notes was recorded in the condensed statements of operations and comprehensive (loss) income for the three and six months ended June 30, 2025 . Redeemable convertible preferred stock The Company recorded convertible preferred stock at fair value on the dates of issuance, net of issuance costs. Upon the occurrence of certain events that were outside the Company’s control, including a deemed liquidation event, holders of the convertible preferred stock could cause redemption for cash. Therefore, redeemable convertible preferred stock was classified outside of stockholders’ equity (deficit) on the balance sheet as events triggering the redemption were not solely within the Company’s control. The carrying values of the redeemable convertible preferred stock were subject to adjustment to their redemption value if and when it became probable that the preferred stock would become redeemable. Net income (loss) per share Net income (loss) per share attributable to common stockholders is calculated using the two-class method required for companies with participating securities. The Company considered its convertible preferred stock to be participating securities as the holders were entitled to receive noncumulative dividends in the event that a dividend is paid on common stock. Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period less common shares subject to vesting or forfeiture, without consideration for potentially dilutive securities. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares and the number of common shares that would be issued assuming exercise and conversion of all potentially dilutive instruments. In calculating diluted net income (loss) per share, the Company applies the more dilutive of the two-class method or the if-converted method to the redeemable convertible preferred stock, applies the treasury stock method to equity awards, and applies the if-converted method to the convertible promissory notes, if dilutive. Distributed and undistributed earnings are allocated to participating securities based on their participation rights and are subtracted from net income in determining net income attributable to common stockholders for basic and diluted net income per share, only in periods of net income. Because the Company reported a net loss for the three and six months ended June 30, 2025 , and the inclusion of the potentially dilutive securities would be antidilutive, diluted net loss per share is the same as basic net loss per share for the periods presented. New accounting pronouncements—Not yet adopted In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which will require incremental income tax disclosures on an annual basis for all public entities. The amendments require that public business entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items meeting a quantitative threshold. The amendments also require disclosure of income taxes paid to be disaggregated by jurisdiction, and disclosure of income tax expense disaggregated by federal, state, and foreign. ASU 2023-09 is effective for annual reporting beginning with the fiscal year ending December 31, 2025. The Company is currently evaluating the incremental disclosures that will be required in its financial statements. 9 In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures , which will require additional expense disclosures for all public entities. The amendments require that at each interim and annual reporting period, an entity will disclose certain disaggregated expenses included in each relevant expense caption, as well as the total amount of selling expenses and, in annual periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for annual reporting periods beginning with the fiscal year ending December 31, 2027, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the incremental disclosures that will be required in its financial statements. 3. Fair value measurements The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy. See Note 9, Loan and security agreement, for the Company’s methodology of measuring the fair value of the credit line success fee derivative. Fair value measurements (in thousands) Total Level 1 Level 2 Level 3 As of June 30, 2025 Assets Cash equivalents $ 112,316 $ 112,316 $ — $ — Restricted cash 1,089 1,089 — — Total assets measured at fair value $ 113,405 $ 113,405 $ — $ — As of December 31, 2024 Assets Cash equivalents $ 40,777 $ 40,777 $ — $ — Restricted cash 1,088 1,088 — — Total assets measured at fair value $ 41,865 $ 41,865 $ — $ — Liabilities Credit line success fee derivative $ 500 $ — $ — $ 500 Total liabilities measured at fair value $ 500 $ — $ — $ 500 There were no transfers between Level 1, 2, or 3 during the three and six months ended June 30, 2025 and 2024 . 4. Balance sheet components Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: As of June 30, As of December 31, 2025 2024 (in thousands) Accrued compensation expenses $ 5,675 $ 8,083 Accrued research and development expenses 4,948 2,934 Accrued professional expenses 840 2,467 Other accrued expenses and current liabilities 53 618 Total accrued expenses and other current liabilities $ 11,516 $ 14,102 10 5. Capital structure Common stock In February 2025, the Company completed its initial public offering, pursuant to which it issued and sold an aggregate of 8,750,000 shares of its common stock at an initial public offering price of $ 16.00 per share, resulting in net proceeds of approximately $ 127.8 million, after deducting underwriting discounts, commissions and other offering expenses paid by the Company in 2025. In connection with the completion of the initial public offering, the Company’s certificate of incorporation was amended and restated to (i) authorize 500,000,000 shares of common stock, par value $ 0.001 per share and (ii) authorize 10,000,000 shares of undesignated preferred stock, par value $ 0.001 per share, each of which may be issued from time to time by the Company’s board of directors in one or more series. The amended and restated certificate of incorporation eliminated all references to the previously existing series of convertible preferred stock. Common stockholders are entitled to dividends if and when declared by the board of directors of the Company, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. The holder of each share of common stock is entitled to one vote. As of June 30, 2025 and December 31, 2024 , no dividends were declared. Common stock reserved for future issuance, on an as-converted basis, consisted of the following: As of June 30, As of December 31, 2025 2024 Series A redeemable convertible preferred stock — 10,889,434 Series B redeemable convertible preferred stock — 6,971,192 Series C redeemable convertible preferred stock — 4,997,963 Series D redeemable convertible preferred stock — 5,641,987 Series D-1 redeemable convertible preferred stock — 4,086,247 Shares reserved under 2025 Equity Incentive Plan and 2019 Equity Incentive Plan 6,048,074 831,177 Stock options, issued and outstanding 5,347,639 5,278,735 Shares reserved under 2025 Employee Stock Purchase Plan 396,284 — Total 11,791,997 38,696,735 Redeemable convertible preferred stock Immediately prior to the closing of the initial public offering in February 2025, the Company’s outstanding redeemable convertible preferred stock automatically converted into 32,586,823 shares of common stock. No shares of convertible preferred stock were authorized, issued and outstanding at June 30, 2025 . 6. Equity incentive plan and stock-based compensation expense 2025 Equity Incentive Plan The Company’s board of directors and stockholders approved the 2025 Equity Incentive Plan, or 2025 Plan, which became effective on January 29, 2025. The 2025 Plan replaced the 2019 Equity Incentive Plan, or 2019 Plan, and upon its effectiveness, the Company ceased granting awards under the 2019 Plan. The 2025 Plan allows the Company to make equity-based and cash-based incentive awards to its officers, employees, directors and consultants. The Company initially reserved 5,300,000 shares of its common stock under the 2025 Plan plus those shares of common stock previously reserved but unissued under the 2019 Plan. Any outstanding awards granted under the 2019 Plan will remain subject to the terms of the 2019 Plan and applicable award agreements. As of June 30, 2025 , there were an aggregated 5,347,639 options outstanding under the 2019 Plan and 2025 Plan. 2025 Employee Stock Purchase Plan The Company’s board of directors and stockholders approved the 2025 Employee Stock Purchase Plan, or 2025 ESPP, which became effective on January 30, 2025. The number of shares initially available for issuance pursuant to the 2025 ESPP was 450,000 shares. During the three and six months ended June 30, 2025 , 53,716 shares were issued under the 2025 ESPP. 11 Stock-based compensation expense The following table summarizes the components of stock-based compensation expense recognized in the Company’s condensed statements of operations and comprehensive (loss) income during the three and six months ended June 30, 2025 and 2024: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (in thousands) (in thousands) Research and development $ 1,998 $ 1,195 $ 3,856 $ 2,675 General and administrative 1,239 947 2,607 1,777 Total stock-based compensation expense $ 3,237 $ 2,142 $ 6,463 $ 4,452 As of June 30, 2025 , there was $ 24.8 million of total unrecognized compensation cost related to unvested options and restricted stock awards for which the cost is expected to be recognized over a weighted-average period of 2.80 years. As of June 30, 2025 , there was $ 1.6 million unrecognized share-based compensation cost related to the 2025 ESPP, which is expected to be recognized over a weighted-average period of 1.35 years. 7. License agreements Trace License Agreement In March 2024, the Company entered into an exclusive license agreement with Trace Neuroscience, Inc., or Trace, pursuant to which the Company granted an exclusive worldwide license to a discovery research program targeting UNC13A for the treatment of amyotrophic lateral sclerosis, or the Trace License Agreement. As consideration for the licensed rights and the transfer of know-how and materials, the Company received an upfront payment of $ 15.0 million in April 2024. Thereafter, the Company is entitled to potential subsequent payments of up to an aggregate of $ 80.0 million based on development and regulatory milestones and up to an aggregate of $ 250.0 million based on sales milestones. The Company is also entitled to tiered royalties ranging from percentages in the low single-digits to sub-teens on net sales of any licensed product if successfully commercialized. The Company assessed the Trace License Agreement in accordance with ASC 606 and concluded that it was a contract with a customer. The Company determined that there is one performance obligation relating to the license to the UNC13A discovery program, including the underlying know-how and certain related materials, and that the transaction price consisted of the $ 15.0 million non-refundable upfront cash payment. The potential future development and regulatory milestones represent variable consideration and were constrained, as it was concluded that it was not probable that a significant reversal in cumulative revenue recognized will not occur and therefore not included in the transaction price as of June 30, 2025 . Potential sales milestones and royalties on net product sales will be recognized in the same period that the underlying net product sales occur as they were determined to relate to the license. The $ 15.0 million transaction price was recorded as license revenue in the condensed statements of operations and comprehensive (loss) income during the second quarter of 2024, at the point in time when control of the license and related know-how was transferred to Trace. Shionogi License Agreement In March 2024, the Company entered into an exclusive license agreement with Shionogi & Co., Ltd, or Shionogi, pursuant to which the Company granted Shionogi an exclusive, worldwide, sublicensable license to research, develop, manufacture and commercialize MZE001 and certain other small molecule compounds modulating glycogen synthase 1, or the Shionogi License Agreement. As consideration for the licensed rights and the transfer of know-how and materials, the Company received an upfront payment of $ 150.0 million in May 2024 upon the effectiveness of the Shionogi License Agreement. The Shionogi License Agreement also requires that Shionogi pay the Company up to $ 275.0 million in the aggregate in milestone payments upon the completion of certain clinical and regulatory milestones and up to $ 330.0 million in the aggregate in milestone payments if certain sales milestones are achieved. The Shionogi License Agreement also requires that Shionogi pay the Company tiered royalties ranging from percentages in the low double-digits to twenty on net sales of licensed products, subject to certain deductions. 12 The Company assessed the Shionogi License Agreement in accordance with ASC 606 and concluded that it was a contract with a customer. The Company determined that there is one performance obligation relating to the license to the MZE001 program, including the underlying know-how and certain related materials, and that the transaction price consisted of the $ 150.0 million non-refundable upfront cash payment. The potential clinical and regulatory milestones represent variable consideration and were constrained as it was concluded that it was not probable that a significant reversal in cumulative revenue recognized will not occur and therefore not included in the transaction price as of June 30, 2025 . Potential sales milestones and royalties on net product sales will be recognized in the same period that the underlying net product sales occur as they were determined to relate to the license. The $ 150.0 million transaction price was recorded as license revenue in the condensed statements of operations and comprehensive (loss) income during the second quarter of 2024, at the point in time when control of the license and related know-how and materials was transferred to Shionogi. Neurocrine License Agreement In May 2024, the Company entered into an exclusive license agreement with Neurocrine Biosciences, Inc., or Neurocrine, pursuant to which the Company granted Neurocrine an exclusive worldwide license to a discovery research program targeting ATXN2, or the Neurocrine License Agreement. As consideration for the licensed rights and the transfer of know-how and materials, the Company received an upfront payment of $ 2.5 million in June 2024. Thereafter, the Company is entitled to potential subsequent payments of up to an aggregate of $ 24.8 million based on research and development milestones and up to an aggregate of $ 175.0 million based on sales milestones. The Company is also entitled to tiered royalties ranging in the sub-single-digit to low single-digit percentages on net sales of any licensed product if successfully commercialized. The Company assessed the Neurocrine License Agreement in accordance with ASC 606 and concluded that it was a contract with a customer. The Company determined that there is one performance obligation relating to the license to the ATXN2 discovery program, including the underlying know-how and certain related materials, and that the transaction price consisted of the $ 2.5 million upfront cash payment. The potential research and development milestones represent variable consideration and were constrained as it was concluded that it was not probable that a significant reversal in cumulative revenue recognized will not occur and therefore not included in the transaction price as of June 30, 2025 . Potential sales milestones and royalties on net product sales will be recognized in the same period that the underlying net product sales occur as they were determined to relate to the license. The $ 2.5 million transaction price was recorded as license revenue in the condensed statements of operations and comprehensive (loss) income during the third quarter of 2024, at the point in time when control of the license and the related know-how and materials was transferred to Neurocrine. 8. Commitments and contingencies Legal proceedings From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and that such expenditures can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. No contingent liabilities have been recorded as of June 30, 2025 and December 31, 2024. Indemnification In accordance with the Company’s amended and restated certificate of incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving in such capacity. There have been no claims to date, and the Company has a directors and officers liability insurance policy that may enable it to recover a portion of any amounts paid for future claims. 9. Loan and security agreement In March 2025, the Company entered into an amendment to the loan and security agreement dated June 2022, that provides for a one-year extension of the $ 50.0 million revolving line of credit maturity date to June 2026. The revolving line of credit is secured by substantially all of the Company’s assets, except for its intellectual property. The Company has not elected to draw down any funds from this debt facility as of June 30, 2025 . Advances under the revolving line may be prepaid and reborrowed by the Company without penalty. The Company has the option to convert the aggregate principal amount of advances under the line of credit, if any, into a term loan upon maturity of the revolving line of credit. Advances under the line of credit accrue interest at a variable annum rate of the greater of (i) 0.75 % above the prime rate and (ii) 4.50 %. The prime rate is defined as the variable rate of interest, per annum, most recently announced by the bank, as its “prime rate,” whether or not such announced rate is the lowest rate available from the bank. 13 Under the loan and security agreement, the Company was required to pay the bank a success fee of up to $ 2.0 million depending on if the Company closed a sale of substantially all of its assets, consummated a reorganization where the voting stockholders before such transaction held less than 50 % of the voting securities after such transaction, or completed the sale of the Company’s securities in connection with an initial public offering, reverse merger or other similar transaction wherein the Company’s securities were thereafter traded in a public market. This success fee was deemed to be a freestanding derivative instrument that was bifurcated from the line-of-credit instrument and was initially and subsequently measured at fair value each reporting period. The fair value of this success fee derivative was estimated utilizing a probability-weighted cash flow approach, including variables for the timing of the related events and other probability estimates, which were deemed to be Level 3 inputs in the fair value hierarchy. The fair value of this success fee derivative was approximately $ 0.5 million as of December 31, 2024 and was recorded in accrued expenses and other current liabilities on the condensed balance sheets. In February 2025, the Company paid a success fee of $ 0.5 million pursuant to the terms of the loan and security agreement, upon the completion of the Company’s initial public offering. No change in fair value of the derivative was recorded for the three and six months ended June 30, 2025 . The change in fair value of the derivative of approximately $ 0.1 million for the three and six months ended June 30, 2024 was recorded in interest and other income, net in the condensed statements of operations and comprehensive (loss) income. Total issuance costs and the debt discount arising from the success fee amounted to $ 0.3 million and were recorded in other assets, which are amortized as interest expense over the commitment period. The debt discount was fully amortized as of June 30, 2025 . 10. Related party transactions The Company has paid fees to its founders and certain board members in exchange for consulting services. During the three and six months ended June 30, 2025 and 2024 , the Company recorded an immaterial amount of such fees in each of research and development expenses and general and administrative expenses in the condensed statements of operations and comprehensive (loss) income. 11. Income taxes The Company’s provision for income taxes is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any. For the three and six months ended June 30, 2024 , the Company recorded an income tax provision of $ 1.7 million. No income tax provision was recorded for the three and six months ended June 30, 2025. The decrease in income tax expense for the three and six months ended June 30, 2025 as compared to the same periods in 2024 was primarily driven by the recognition of revenue from the Company’s license agreements as discussed in Note 7 on License agreements, resulting in taxable income to the Company. Based on available objective evidence as of June 30, 2025 and December 31, 2024 , the Company believes it is more likely than not that its net deferred tax assets may not be realized. The primary difference between the effective tax rate and the statutory tax rate relates to the Company’s change in valuation allowance against deferred taxes. 14 12. Net (loss) income per share The following table sets forth the computation of basic and diluted net (loss) income per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Basic (loss) income per share: Numerator: Net (loss) income $ ( 33,679 ) $ 139,056 $ ( 66,465 ) $ 106,562 Allocation of undistributed earnings to participating securities — ( 124,912 ) — ( 95,824 ) Net (loss) income attributable to common stockholders, basic $ ( 33,679 ) $ 14,144 $ ( 66,465 ) $ 10,738 Denominator: Weighted-average shares of common stock outstanding 43,807,793 2,419,855 36,265,200 2,404,737 Less: weighted-average shares of common stock subject to repurchase ( 10,372 ) ( 30,736 ) ( 10,372 ) ( 41,871 ) Weighted-average shares of common stock outstanding used in the calculation of (loss) income per share attributable to common stockholders, basic 43,797,421 2,389,119 36,254,828 2,362,866 Net (loss) income per share attributable to common stockholders, basic $ ( 0.77 ) $ 5.92 $ ( 1.83 ) $ 4.54 Diluted (loss) income per share: Numerator: Net (loss) income attributable to common stockholders, basic $ ( 33,679 ) $ 14,144 $ ( 66,465 ) $ 10,738 After tax effect of assumed conversion of convertible notes — ( 260 ) — ( 323 ) Net (loss) income attributable to common stockholders, diluted $ ( 33,679 ) $ 13,884 $ ( 66,465 ) $ 10,415 Denominator: Weighted-average shares of common stock outstanding, basic 43,797,421 2,389,119 36,254,828 2,362,866 Weighted-average dilutive effect of convertible promissory notes — 1,443,821 — 573,195 Weighted-average dilutive effect of equity awards — 481,419 — 334,059 Weighted-average shares of common stock outstanding, diluted 43,797,421 4,314,359 36,254,828 3,270,120 Net (loss) income per share attributable to common stockholders, diluted $ ( 0.77 ) $ 3.22 $ ( 1.83 ) $ 3.18 The potential shares of common stock that were excluded from the computation of diluted net (loss) income per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows: Six Months Ended June 30, 2025 2024 Shares subject to outstanding stock options 5,347,639 2,117,320 Unvested restricted stock subject to repurchase 10,372 15,558 Unvested exercised options subject to repurchase — 13,353 Convertible promissory notes — 868,322 Total 5,358,011 3,014,553 The antidilutive potential common stock table above includes instruments for convertible notes and equity awards that are different tranches and are excluded from the amounts included in the table computing diluted net income (loss) per share. 15