What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-13 compared with 2026-05-14 · 182 added, 81 removed, 361 unchanged (42% of the section changed)

29 unchanged sentences

500,000,000 shares authorized;

5,336,350 and 3,199,228 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

7,100,000 and 3,199,228 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

11 unchanged sentences

(in thousands, except share and per share data)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

$ — $ — $ — $ —

Operating expenses:

Research and development

5,450 3,600 10,828 7,036

General and administrative

2,103 2,091 4,591 4,568

Depreciation and amortization

Total operating expenses

7,561 5,720 15,435 11,663

Loss from operations

( 7,561 ) ( 5,720 ) ( 15,435 ) ( 11,663 )

Other income (loss):

Gain from change in fair value of warrant liability

Gain (loss) from change in fair value of warrant liability

( 7 ) ( 560 ) 10,763 ( 560 )

Transaction costs allocated to warrant liabilities

( 2 ) ( 1,207 ) ( 695 ) ( 1,207 )

Loss on issuance of warrant liabilities

— ( 10,352 ) ( 15,158 ) ( 10,352 )

Other income, net

Interest income, net

Interest income (expense), net

( 78 ) 26 ( 43 ) 56

$ ( 7,635 ) $ ( 17,809 ) $ ( 20,480 ) $ ( 23,713 )

Warrant deemed dividend

( 329 ) — ( 2,094 ) —

Net loss available to common stockholders

$ ( 7,964 ) $ ( 17,809 ) $ ( 22,574 ) $ ( 23,713 )

Net loss per common share - basic and diluted

$ ( 1.40 ) $ ( 28.68 ) $ ( 4.60 ) $ ( 47.61 )

Weighted average common shares outstanding, basic and diluted

5,680,717 621,056 4,906,899 498,087

$ ( 7,635 ) $ ( 17,809 ) $ ( 20,480 ) $ ( 23,713 )

Other comprehensive income (loss):

Foreign currency translation

( 12 ) — ( 74 ) 3

Comprehensive loss

$ ( 7,647 ) $ ( 17,809 ) $ ( 20,554 ) $ ( 23,710 )

See accompanying notes to 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:

$ ( 20,480 ) $ ( 23,713 )

Adjustments to reconcile net loss to net cash used in operating activities:

2 unchanged sentences

Change in fair value of warrant liability

( 10,763 ) 560

Loss on issuance of warrant liabilities

15,158 10,352

Operating lease, net

2 unchanged sentences

Prepaid expenses and other assets

( 653 ) ( 1,503 )

Accounts payable

1 unchanged sentence

Net cash used in operating activities

( 12,768 ) ( 10,146 )

Cash flows from investing activities:

3 unchanged sentences

Proceeds from exercise of warrants

Proceeds from issuance of common stock under at-the-market equity program, net of transaction costs

Net cash provided by financing activities

11,225 13,422

Effect of exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

( 1,616 ) 3,279

Cash and cash equivalents - beginning of period

Cash and cash equivalents - end of period

$ 7,262 $ 7,557

Non-cash investing and financing activities:

1 unchanged sentence

Reclassification of warrant liabilities to equity upon contractual reset of exercise price

Deemed dividend in connection with warrant amendment

Deemed dividends in connection with warrant amendments

Offering costs included in accounts payable and accrued liabilities

4 unchanged sentences

(in thousands, except for shares)

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

Common stock - shares

3 unchanged sentences

Accumulated Other Comprehensive Income (Loss)

Stockholders' Equity

Total Stockholders' Equity

Balance, December 31, 2025

3,199,228 $ 3 $ 220,997 $ ( 206,004 ) $ 10 $ 15,006

Warrant inducement and exercise of common stock warrants

2,122,652 2 — — — 2

Issuance of common stock in connection with Consulting Agreements

6,409 — — — — —

Issuance of common stock under at-the-market equity program, net of transaction costs

3,785 — 18 — — 18

Warrants exercised

2,279 — 9 — — 9

Common stock issued upon vesting of restricted stock units (net of taxes)

1,997 — — — — —

Reclassification of warrant liabilities to equity upon contractual reset of exercise price

— — 12,675 — — 12,675

Warrant deemed dividend

— — 1,765 — — 1,765

Deemed dividend in connection with warrant amendment

— — ( 1,765 ) — — ( 1,765 )

Stock-based compensation

— — 380 — — 380

Consolidated net loss

— — — ( 12,845 ) — ( 12,845 )

Cumulative translation adjustment

— — — — ( 62 ) ( 62 )

Balance, March 31, 2026

Three Months Ended March 31, 2025

5,336,350 $ 5 $ 234,079 $ ( 218,849 ) $ ( 52 ) $ 15,183

Warrants exercised

1,396,500 2 2,807 — — 2,809

Issuance of common stock under at-the-market equity program, net of transaction costs

354,757 — 806 — — 806

Issuance of common stock in connection with Consulting Agreements

12,393 — — — — —

Warrant deemed dividends

— — 329 — — 329

Deemed dividend in connection with warrant amendments

— — ( 329 ) — — ( 329 )

Stock-based compensation

— — 436 — — 436

Consolidated net loss

— — — ( 7,635 ) — ( 7,635 )

Cumulative translation adjustment

— — — — ( 12 ) ( 12 )

Balance, June 30, 2026

7,100,000 $ 7 $ 238,128 $ ( 226,484 ) $ ( 64 ) $ 11,587

Six Months Ended June 30, 2025

Common stock - shares

3 unchanged sentences

Accumulated Other Comprehensive Income (Loss)

Stockholders' Equity

Total Stockholders' Equity

Balance, December 31, 2024

135,155 $ — $ 183,693 $ ( 172,444 ) $ ( 41 ) $ 11,208

Warrant inducement and exercise of repriced common stock warrants at $ 1.00 per share

233,143 1 5 — — 6

Warrants exercised

150,801 — 4 — — 4

Issued for cash - sale of common stock, pre-funded and common warrants

46,000 — 1 — — 1

Stock-based compensation

— — 485 — — 485

Consolidated net loss

— — — ( 5,904 ) — ( 5,904 )

Equity warrants issued

— — 7,988 — — 7,988

Cumulative translation adjustment

Balance, March 31, 2025

565,099 $ 1 $ 192,176 $ ( 178,348 ) $ ( 38 ) $ 13,791

Common stock issued upon vesting of restricted stock units (net of taxes)

Warrants exercised

244,319 6 — — — 6

Issued for cash - sale of common stock, pre-funded and common warrants

398,881 10 — — — 10

Stock-based compensation

— — 417 — — 417

Consolidated net loss

— — — ( 17,809 ) — ( 17,809 )

Cumulative translation adjustment

Balance, June 30, 2025

1,208,299 $ 17 $ 192,593 $ ( 196,157 ) $ ( 38 ) $ ( 3,585 )

See accompanying notes to these condensed consolidated financial statements.

4 unchanged sentences

MBI is a clinical-stage pharmaceutical company, organized as a Delaware corporation in July 2015.

MBI is a late-stage pharmaceutical development company currently conducting a pivotal Phase 2B/3 trial evaluating Annamycin, also known by its non-proprietary name "naxtarubicin", in combination with cytarabine for the treatment of subjects with relapsed/refractory (R/R) acute myeloid leukemia (AML).

MBI is a late-stage pharmaceutical development company currently conducting a pivotal Phase 2/3 trial evaluating Annamycin, also known by its non-proprietary name "naxtarubicin", in combination with cytarabine for the treatment of subjects with relapsed/refractory (R/R) acute myeloid leukemia (AML).

The Company has two additional portfolios of technologies for hard-to-treat cancers and viruses with clinical and preclinical research funded primarily by investigators at academic institutions.

6 unchanged sentences

Since MBI’s inception, its drugs have completed, are in planning, are currently in, or have been permitted to proceed in, eighteen clinical trials.

Annamycin, in a unique multilamellar lipid formulation, is the Company’s lead molecule, has completed several clinical trials in AML and soft tissue sarcoma and in March 2025 began treating subjects in its Phase 2B/3 clinical trial for the treatment of R/R AML.

The latter is the main focus the Company’s management and resources.

Annamycin was in two concluded Phase 1B/2 clinical trials for treating Soft Tissue Sarcoma metastasized to the lungs (STS lung metastases, STS lung mets, or Advanced STS), with one physician-sponsored.

The latter is the main focus of the Company’s management and resources.

Annamycin was in two concluded Phase 1B/2 clinical trials for treating soft tissue sarcoma metastasized to the lungs (STS lung metastases, STS lung mets, or Advanced STS), one of which was physician-sponsored.

The Company announced in 2025 a physician-sponsored trial for Annamycin for the treatment of pancreatic cancer intended to begin in the second half of 2026.

Additionally, there is another phase 1B/2 clinical trial that is physician sponsored which is investigating using WP1066 in combination with radiation for the treatment of glioblastoma, a form of brain cancer and there is another pediatric brain tumor trial also in the planning states for late 2026.

Additionally, there is another Phase 1B/2 clinical trial that is physician sponsored which is investigating using WP1066 in combination with radiation for the treatment of glioblastoma, a form of brain cancer.

There is another pediatric brain tumor trial also in the planning stages for late 2026.

The physician-sponsored trials utilize primarily external funds, such as grant funds, which are not presented in these financial statements.

5 unchanged sentences

As part of this agreement, ALI issued to the Company a 10 % equity interest in ALI.

On May 23, 2025, the Company received a letter from Nasdaq Stock Market LLC notifying the Company that it was not in compliance with Nasdaq Listing Rule 5550 (b)( 1 ) (the “Equity Rule”), which requires a minimum of $2.5 million in stockholders’ equity.

The letter also noted that the Company did not meet the alternative compliance standards of market value of listed securities or net income from continuing operations under the Equity Rule.

The notification had no immediate effect on the listing of the Company’s common stock on the Nasdaq Capital Market, and the Company was provided 45 calendar days to submit a plan to regain compliance.

The Company’s compliance plan was subsequently accepted, and the Nasdaq staff granted an extension of up to 180 calendar days, through November 19, 2025, to demonstrate compliance.

On June 27, 2025, the Company received an additional deficiency letter from the staff of Nasdaq indicating that, for the previous 30 consecutive business days, the closing bid price of the Company’s common stock had been below the minimum $ 1.00 per share requirement for continued listing on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550 (a)( 2 ) (the “Bid Price Rule”).

On November 20, 2025, the Company received a delisting determination letter from Nasdaq stating that the Company had not regained compliance with the Equity Rule within the permitted timeframe.

The Company subsequently requested a hearing before a Nasdaq hearing panel (the “Panel”) to appeal the delisting determination.

On December 15, 2025, the Company received a letter from Nasdaq confirming that the Company had regained compliance with the Bid Price Rule because the closing bid price of the Company’s common stock was $ 1.00 per share or greater for the 10 consecutive business days from December 1, 2025 through December 12, 2025.

Accordingly, this matter was closed.

On January 6, 2026, Nasdaq informed the Panel that the Company had regained compliance with the Equity Rule and that the Company was in compliance with all applicable continued listing standards.

As a result, the hearing before the Panel was cancelled.

Basis of presentation, principles of consolidation, and significant accounting policies and liquidity

21 unchanged sentences

Other expenses included in the Company’s net loss include change in fair value of warrant liabilities, other income (expense), interest income, net, and any additional non-operating expenses that are reported on the Consolidated Statements of Operations and Comprehensive Loss.

Significant Accounting Policies - The Company's significant accounting policies are described in Note 2, Basis of Presentation, principles of consolidation and significant accounting policies, to the consolidated financial statements included in the Company's Annual Report on Form 10 -K for the year ended December 31, 2025 .

There have been no material changes to the significant accounting policies during the three months ended March 31, 2026 , except as discussed further below under Changes in Accounting Policy.

Significant Accounting Policies - The Company's significant accounting policies are described in Note 2, Basis of Presentation, principles of consolidation and significant accounting policies and liquidity, to the consolidated financial statements included in the Company's Annual Report on Form 10 -K for the year ended December 31, 2025 .

There have been no material changes to the significant accounting policies during the three and six months ended June 30, 2026 , except as discussed further below under Changes in Accounting Policy.

Use of Estimates - The preparation of these condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.

9 unchanged sentences

The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary financing to continue operations and the attainment of profitable operations.

As of March 31, 2026 , the Company had an accumulated defici t of $ 218.8 million since inception and had not yet generated any revenues from operations.

Additionally, management anticipates that its cash on hand of $ 10.3 million a s of March 31, 2026 , is not sufficient to fund its planned operations for a period of at least one year from when these condensed consolidated financial statements are issued.

As of June 30, 2026 , the Company had an accumulated defici t of $ 226.5 million since inception and had not yet generated any revenues from operations.

Additionally, management anticipates that its cash on hand of $ 7.3 million a s of June 30, 2026 , is not sufficient to fund its planned operations for a period of at least one year from when these condensed consolidated financial statements are issued.

These factors raise substantial doubt regarding the Company's ability to continue as a going concern.

7 unchanged sentences

The Company’s management does not believe the Company is exposed to significant credit risk at this time due to the financial condition of the financial institution where its cash is held.

Intangible Assets – Intangible assets with finite lives are amortized using the straight-line method over their estimated period of benefit.

Acquired intangible assets identified as in-process research and development (IPR&D) assets, are considered indefinite lived until the completion or abandonment of the associated research and development efforts.

Intangible Assets – Acquired intangible assets identified as in-process research and development (IPR&D) assets, are considered indefinite lived until the completion or abandonment of the associated research and development efforts.

If the associated research and development effort is abandoned, the related IPR&D assets will be written-off and the Company will record a noncash impairment loss on its statements of operations.

4 unchanged sentences

Prepaid Expenses and Other Current Assets - Prepaid expenses and other current assets consist of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

Prepaid insurance

$ 1,035 $ 512

Vendor prepayments and deposits

2 unchanged sentences

Total prepaid expenses and other current assets

$ 1,461 $ 808

Other Non-Current Assets - The Company provided a cash deposit on the MB- 108 trial that is expected to be held as a prepayment until the end of the study in 2029.

9 unchanged sentences

The Company’s financial assets and liabilities recorded at fair value on a recurring basis include the fair value of warrant liability discussed in Note 4.

The following table provides the financial liabilities reported at fair value and measured on a recurring basis at March 31, 2026 and December 31, 2025 (table in thousands):

Fair value of warrant liability as of March 31, 2026:

The following table provides the financial liabilities reported at fair value and measured on a recurring basis at June 30, 2026 and December 31, 2025 (table in thousands):

Fair value of warrant liability as of June 30, 2026:

$ 40 $ — $ — $ 40

1 unchanged sentence

$ 44 $ — $ — $ 44

The table below of Level 3 liabilities (table in thousands) begins with the valuation as of the beginning of the first quarter and then is adjusted for changes in fair value that occurred during the first quarter.

The table below of Level 3 liabilities (table in thousands) begins with the valuation as of the beginning of the second quarter and then is adjusted for changes in fair value that occurred during the second quarter.

The ending balance of the Level 3 financial instrument presented above represents the Company's best estimates and may not be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments.

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Warrant Liability Long-Term

Balance, March 31, 2026

Change in fair value - net

Balance, June 30, 2026

The table below of Level 3 liabilities (table in thousands) begins with the valuation as of December 31, 2025 and then is adjusted for changes in fair value that occurred during the six months ended June 30, 2026 .

Six Months Ended June 30, 2026

Warrant Liability Long-Term

Balance, December 31, 2025

3 unchanged sentences

Change in fair value - net

Balance, March 31, 2026

Balance, June 30, 2026

Loss Per Common Share - Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during the period.

2 unchanged sentences

In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

For the three months ended March 31, 2026 and 2025 , approximately 10.0 million and 0.6 m illion, respectively, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their anti-dilutive effect.

Subsequent Events - The Company’s management reviewed all material events through the date of these unaudited condensed consolidated financial statements.

For the three months ended June 30, 2026 and 2025 , approximately 12.7 million and 1.0 m illion, respectively, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their anti-dilutive effect.

For the six months ended June 30, 2026 and 2025, approximately 11.3 million and 0.7 million, respectively, of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their anti-dilutive effect.

Subsequent Events - The Company’s management reviewed all material events through the date of these unaudited condensed consolidated financial statements were issued.

Subsequent Events included in these unaudited condensed financial statements.

8 unchanged sentences

Early adoption is allowed.

Currently, the Company is assessing.

the potential impact of this guidance on its condensed consolidated financial statement disclosures.

Currently, the Company is assessing the potential impact of this guidance on its condensed consolidated financial statement disclosures.

In November 2024 and January 2025, FASB issued ASU 2024 - 03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40 ):

9 unchanged sentences

The changes in fair value during each previous reporting period were recognized as a gain (loss) from change in fair value of warrant liability in the Company's condensed consolidated statement of operations.

The Company has changed its policy and warrants that contain this certain contingent settlement provision will now be accounted as equity under ASC 815 - 40 - 15 - 7C through 15 - 7F and ASC 505.

The Company has changed its policy and warrants that contain this certain contingent settlement provision will be accounted as equity under ASC 815 - 40 - 15 - 7C through 15 - 7F and ASC 505.

The Company concluded that accounting for its warrants as equity instruments is preferable under ASC 250, as equity classification better reflects the economic substance of the arrangement and enhances the clarity and consistency of the Company's financial reporting.

8 unchanged sentences

Three Months Ended

March 31, 2025

Six Months Ended

June 30, 2025

Under Old Policy

Under New Policy

Under Old Policy

Under New Policy

Condensed Consolidated Statement of Operations

13 unchanged sentences

Accrued expenses and other current liabilities consist of the following components (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

8 unchanged sentences

Warrant and Stock Issuances

During June of 2026, Series H warrants were exercised for the issuance of 1,396,500 shares at $ 2.01 per share for proceeds of approximately $ 2.8 million.

On February 19, 2026, the Company entered into warrant inducement agreements with certain holders of our existing equity-classified Series E and Series F warrants.

1 unchanged sentence

In consideration for such exercises, the Company issued new Series H warrants to purchase up to 6,367,956 shares of common stock.

The Series H warrants have a five -year term and an exercise price of $ 2.3976 per share.

The Series H warrants have a five -year term and had an initial exercise price of $ 2.3976 per share.

The warrants contain customary anti-dilution adjustments and beneficial ownership limitations and became exercisable upon stockholder approval in April 2026.

1 unchanged sentence

In addition, the exercise price of the Company’s outstanding Series F warrants was adjusted to $ 2.75 per share, and the exercise price of the Company’s outstanding Series G warrants was adjusted to $ 2.3976 per share.

The Company recorded a deemed dividend of $ 1.8 million resulting from the downward adjustment to the exercise price of certain warrants and the increase in the number of shares underlying certain outstanding warrants, in each case triggered by the anti-dilution provisions contained in the original warrant agreements.

The deemed dividend was recorded within additional paid-in capital and recognized as a reduction to income available to common stockholders.

The Company uses the Monte Carlo simulation model to reflect the impact of the down round feature to the warrants and also uses a Black-Scholes option pricing model (BSM) to determine the fair value of its liability warrants at the at each reporting date, the date of issue and any other measurement date during the quarter.

During the six months ended June 30, 2026, the Company recorded deemed dividends resulting from the downward adjustment to the exercise price of certain warrants and the increase in the number of shares underlying certain outstanding warrants, in each case triggered by the anti-dilution provisions contained in the original warrant agreements.

The deemed dividends were recorded to additional paid-in capital and recognized as a reduction to income available to common stockholders.

The Company uses the Monte Carlo simulation model to reflect the impact of the down round feature to the warrants and also uses a Black-Scholes option pricing model (BSM) to determine the fair value of its liability warrants at each reporting date, the date of issue and any other measurement date during the quarter.

The risk-free interest rate assumption is based upon observed interest rates on zero coupon US Treasury bonds linearly interpolated to obtain a maturity period commensurate with the term of the warrants.

2 unchanged sentences

The assumptions used in determining the fair value of the Company's outstanding liability classified warrants are as follows:

March 31, 2026

June 30, 2026

December 31, 2025

3 unchanged sentences

Dividend yield

A summary of the Company's liability classified warrant activity during the three months ended March 31, 2026 and related information follows:

A summary of the Company's liability classified warrant activity during the six months ended June 30, 2026 and related information follows:

Number of Shares

13 unchanged sentences

( 6,367,956 ) $ 2.40 $ 2.40 $ 2.40 5.2

Balance at March 31, 2026

Balance at June 30, 2026

15,550 $ 3.00 $ 3.00 $ 3.00 4.1

Exercisable at March 31, 2026

Exercisable at June 30, 2026

15,550 $ 3.00 $ 3.00 $ 3.00 4.1

For a summary of the changes in fair value and the impact of changes in accounting policy associated with the Company's warrant liability for the three months ended March 31, 2026 , see Note 2 - Basis of presentation, principles of consolidation and significant accounting policies.

For a summary of the changes in fair value and the impact of changes in accounting policy associated with the Company's warrant liability for the six months ended June 30, 2026 , see Note 2 - Basis of presentation, principles of consolidation and significant accounting policies and liquidity.

Equity Classified Warrants

A summary of the Company's equity classified warrant activity during the three months ended March 31, 2026 and related information follows:

Number of Shares Range of Warrant Exercise

A summary of the Company's equity classified warrant activity during the six months ended June 30, 2026 and related information follows:

Number of Shares

Range of Warrant Exercise

Under Warrant

2 unchanged sentences

7,588,026 $ 2.75 $ 1,361.25

Granted and/or reclassed from liability warrants

115,000 $ 2.48 $ 2.64

2 unchanged sentences

( 3,519,152 ) $ 2.01 $ 3.90

Balance at March 31, 2026

Reclassed from liability warrants

6,367,956 $ 2.40 $ 3.00

Exercisable at March 31, 2026

Expired warrants

( 191 ) $ 1,361.25 $ 1,361.25

Balance at June 30, 2026

11,144,724 $ 2.01 $ 1,155.00

Exercisable at June 30, 2026

10,982,056 $ 2.01 $ 1,155.00

At Market Issuance Sales Agreement (ATM)

5 unchanged sentences

During the first quarter of 2026, the Company sold 3,785 s hares of common stock pursuant to the 2025 ATM Agreement for gross proceeds of approximately $ 18,000 .

During May of 2026, the Company sold an additional 354,757 shares of common stock pursuant to the 2025 ATM Agreement for net proceeds of approximately $ 0.8 million.

The lowest price of the shares sold was $ 2.01 and reset the exercise price of Series G and Series H warrants from $ 2.40 to $ 2.01 per share.

During May 2026, the Company sold an additional 354,757 shares of common stock pursuant to the 2025 ATM Agreement for net proceeds of approximately $ 0.8 million.

The lowest price of the shares sold was $ 2.01 .

As a result and due to provisions in certain warrants, deemed dividends of $ 0.3 million were recorded as a reduction to income available to common stockholders.

Stock-Based Compensation

Stock-based compensation expense for the three months ended March 31, 2026 and 2025 , respectively, is as follows (table in thousands):

Three Months Ended March 31,

Stock-based compensation expense for the three and six months ended June 30, 2026 and 2025 , respectively, is as follows (table in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

General and administrative

$ 256 $ 300 $ 503 $ 665

Research and development

180 117 313 237

Total stock-based compensation expense

The Company recorded stock compensation expense for the equity classified warrants relating to non-employee consulting agreements o f $ 39,000 a nd $ 28,000 for the three months ended March 31, 2026 and 2025 , respectively, which are included in the table above.

As of March 31, 2026 and 2025 , there were $ 330,000 and $ 319,000 in unrecognized stock compensation expense, respectively, related to the Company's equity classified warrants.

As of March 31, 2026 , there wer e 14,105 shar es remaining to be issued under the Company's equity compensation plan.

On May 6, 2026, the Company entered into a consulting agreement with an entity to provide clinical services pursuant to which it issued the consultant a five -year warrant to purchase 100,000 shares of common stock at an exercise price of $ 2.48 vesting in twelve equal installments over a one -year period.

$ 436 $ 417 $ 816 $ 902

The Company recorded stock compensation expense for the equity classified warrants relating to non-employee consulting agreements o f $ 47,000 a nd $ 29,000 for the three months ended June 30, 2026 and 2025 , and $ 86,000 and $ 56,000 for the six months ended June 30, 2026 and 2025, respectively, which are included in the table above.

As of June 30, 2026 and 2025 , there were $ 305,000 and $ 319,000 in unrecognized stock compensation expense, respectively, related to the Company's equity classified warrants.

As of June 30, 2026 , there wer e 14,105 shar es remaining to be issued under the Company's equity compensation plan.

Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.

The Company does not expect to pay any significant federal, state, or foreign income taxes in 2026 as a result of the losses recorded during the three months ended March 31, 2026 and the additional losses expected for the remainder of 2026 and cumulative net operating loss carryforwards.

The Company does not expect to pay any significant federal, state, or foreign income taxes in 2026 as a result of the losses recorded during the three and six months ended June 30, 2026 and the additional losses expected for the remainder of 2026 and cumulative net operating loss carryforwards.

Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all of the benefits of deferred tax assets will not be realized.

As a result, as of March 31, 2026 and December 31, 2025 , the Company maintained a full valuation allowance for all deferred tax assets.

The Company recorded no income tax provision for the three months ended March 31, 2026 and 2025 , respectively.

The effective tax rate for the three months ended March 31, 2026 and 2025 is nil .

As a result, as of June 30, 2026 and December 31, 2025 , the Company maintained a full valuation allowance for all deferred tax assets.

The Company recorded no income tax provision for the three and six months ended June 30, 2026 and 2025 , respectively.

The effective tax rate for the six months ended June 30, 2026 and 2025 is nil .

The income tax rates vary from the federal and state statutory rates primarily due to the change in fair value of the stock warrants, Internal Revenue Code Section 162 (m) limitations and ISO activity, as well as the valuation allowances on the Company’s deferred tax assets.

4 unchanged sentences

Commitments and Contingencies

In addition to the commitments and contingencies described elsewhere in these notes, see below for a discussion of the Company's commitments and contingencies as of March 31, 2026 .

In addition to the commitments and contingencies described elsewhere in these notes, see below for a discussion of the Company's commitments and contingencies as of June 30, 2026 .

Lease Obligations Payable

The following summarizes quantitative information about the Company's operating leases for the three months ended March 31, 2026 and 2025 , respectively (table in thousands):

Three Months Ended March 31,

The following summarizes quantitative information about the Company's operating leases for the three and six months ended June 30, 2026 and 2025 , respectively (table in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Operating lease cost

$ 37 $ 38 $ 75 $ 75

Variable lease cost

$ 44 $ 45 $ 89 $ 89

Th e Company executed an amendment to extend the corporate office lease until August 31, 2029, with an option to renew.

2 unchanged sentences

The Company has an extended lab lease until September 30, 2027, with no further right or option to renew.

The Company recorded approximately $ 12,000 in sublease income for the three months ended March 31, 2026 and 2025 .

The Company recorded approximately $ 12,000 in sublease income for the three months ended June 30, 2026 and 2025 , and $ 37,000 for the six months ended June 30, 2026 and 2025 .

Sublease income is recorded as other income, net on the Company's condensed consolidated statement of operations and comprehensive loss.

Operating cash flows from operating leases w as $ 41,000 and $ 39,000 for the three months ended March 31, 2026 and 2025 , respectively.

MD Anderson - Total expenses related to the Company's license agreements with MD Anderson w ere $ 32,000 and $ 50,000 for the three months ended March 31, 2026 and 2025 , respectively .

Operating cash flows from operating leases w as $ 41,000 and $ 39,000 for the three months ended June 30, 2026 and 2025 , respectively, and $ 81,000 and $ 79,000 for the six months ended June 30, 2026 and 2025 , respectively.

MD Anderson - Total expenses related to the Company's license agreements with MD Anderson w ere $ 33,000 for both the three months ended June 30, 2026 and 2025 , and $ 65,000 and $ 83,000 for the six months ended June 30, 2026 and 2025 , respectively.

In October 2025, the Company entered into two separate options to license certain intellectual property related to WP1122 and a new formulation on WP1066.

Such licenses are tied to continue support of sponsored research at MD Anderson discussed below.

Sponsored Research Agreements - The expenses recognized under the agreements were $ 212,000 and $ 211,000 for the three months ended March 31, 2026 and 2025 , respectively .

Such licenses are tied to continued support of sponsored research at MD Anderson discussed below.

Sponsored Research Agreements - The expenses recognized under the agreements were $ 212,000 and $ 51,000 for the three months ended June 30, 2026 and 2025 , respectively, and $ 424,000 and $ 313,000 for the six months ended June 30, 2026 and 2025 , respectively.

The Company entered into a research agreement with MD Anderson until 2027.

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Subsequent Events

Other than the subsequent events discussed elsewhere in these notes, no other subsequent events were noted as occurring after March 31, 2026.

On August 3, 2026, the Company completed a public offering of (i) 12,376,667 shares of common stock, or pre-funded warrants in lieu thereof, and (ii) Series I Warrants to purchase up to 37,130,001 shares of common stock.

The combined public offering price was $ 0.75 per share of common stock (or pre-funded warrant in lieu thereof) and accompanying warrant.

Each pre-funded warrant is exercisable into one share of common stock at an exercise price of $ 0.001 per share and expires when exercised in full.

The Series I Warrants are exercisable into one share of common stock at an exercise price of $ 0.75 per share and expire on the five -year anniversary of the closing date.

The Series I Warrants contain anti-dilution provisions that reduce the exercise price (subject to a floor price of $ 0.21 ) in the event the Company issues common stock or common stock equivalents at a price below the then-current exercise price, other than in connection with certain exempt issuances.

In connection with the offering, the Company agreed not to issue any shares of common stock or securities convertible into common stock for 45 days after the closing date, subject to certain exceptions, and agreed not to effect any variable rate transaction for 180 days after the closing date.

The Company received gross proceeds of approximately $ 9.3 million in the offering, before deducting placement agent fees and other offering expenses.

The Company paid total placement agent fees and other offering expenses of approximately $ 0.8 million.

Due to the pricing of the offering, and certain provisions, the exercise price of the Company’s outstanding Series G warrants was adjusted to $ 1.326 per share, and the exercise price of the Company’s outstanding Series H warrants was adjusted to $ 0.962 per share.

The Company issued 11,088,334 common shares, and prefunded warrants for 1,288,333 shares, which were exercised shortly after the offering.

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