What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 306 added, 294 removed, 988 unchanged (38% of the section changed)

4 unchanged sentences

(in thousands, except share and per share data)

( unaudited )

March 31, 2026

June 30, 2026

December 31, 2025

1 unchanged sentence

Cash and cash equivalents

$ 36,193 $ 29,635

Marketable securities

65,352 67,893

Accounts receivable

26,329 53,654

Prepaid expenses, current

2 unchanged sentences

Total current assets

142,259 162,686

Lease right-of-use assets, net

1 unchanged sentence

Intangible assets, net

38,957 41,392

Deferred tax assets

Prepaid expenses and other, long-term

$ 192,699 $ 216,302

LIABILITIES AND STOCKHOLDERS’ EQUITY

1 unchanged sentence

Accounts payable

$ 8,166 $ 5,056

Accrued expenses

38,378 50,031

Lease liabilities, current

1 unchanged sentence

Current portion of long-term debt

11,283 22,523

Other liabilities, current

Total current liabilities

59,737 81,253

Lease liabilities, long-term

Total liabilities

64,283 85,962

Commitments and contingencies (Note 12)

2 unchanged sentences

100,000,000 shares authorized;

50,879,204 shares issued and outstanding at March 31, 2026 and 50,408,023 issued and outstanding at December 31, 2025

51,102,687 shares issued and outstanding at June 30, 2026 and 50,408,023 issued and outstanding at December 31, 2025

Additional paid-in capital

1,415,970 1,414,074

Accumulated other comprehensive (loss) income

1 unchanged sentence

( 1,279,339 )

Total stockholders’ equity

( 1,283,775 )

Total stockholders’ equity

Total liabilities and stockholders’ equity

$ 192,699 $ 216,302

See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

3 unchanged sentences

(in thousands, except share and per share data)

( unaudited )

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Product revenue, net

6 unchanged sentences

Total operating costs and expenses

(Loss) income from operations

Income from operations

Other income (expenses):

2 unchanged sentences

Total other income (expenses), net

Net (loss) income before income taxes

Net income before income taxes

Income tax expense

Net (loss) income

Net (loss) income per share of common stock—basic

Net (loss) income per share of common stock—diluted

Net income per share of common stock—basic

Net income per share of common stock—diluted

Weighted-average shares of common stock outstanding—basic

3 unchanged sentences

AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

For the Three Months Ended March 31,

Net (loss) income

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Other comprehensive loss:

Unrealized loss on available-for-sale securities, net of tax of $ 0

Comprehensive (loss) income

Comprehensive income

See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

3 unchanged sentences

(in thousands, except share data)

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

Comprehensive

Balance at March 31, 2026

Stock-based compensation

Shares issued or restricted stock units vested under employee stock plans

Unrealized loss on available-for-sale securities

Balance at June 30, 2026

For the Three Months Ended June 30, 2025

Comprehensive

Balance at March 31, 2025

Stock-based compensation

Shares issued or restricted stock units vested under employee stock plans

Unrealized loss on available-for-sale securities

Balance at June 30, 2025

See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

PUMA BIOTECHNOLOGY, INC.

AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ’ EQUITY

(in thousands, except share data)

For the Six Months Ended June 30, 2026

Comprehensive

Income (Loss)

3 unchanged sentences

Unrealized loss on available-for-sale securities

Balance at March 31, 2026

For the Three Months Ended March 31, 2025

Balance at June 30, 2026

For the Six Months Ended June 30, 2025

Comprehensive

4 unchanged sentences

Unrealized loss on available-for-sale securities

Balance at March 31, 2025

See Accompanying Notes to the Unaudited Condensed Consolidated Financial Statements

Balance at June 30, 2025

PUMA BIOTECHNOLOGY, INC.

2 unchanged sentences

(in thousands)

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Operating activities:

Net (loss) income

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

16 unchanged sentences

Maturity of available-for-sale securities

Net cash provided by investing activities

Net cash provided by (used by) investing activities

Financing activities:

Net proceeds from shares issued under employee stock plans

Payment of debt

4 unchanged sentences

Cash, cash equivalents and restricted cash, end of period

Supplemental disclosures of non-cash investing and financing activities:

Property and equipment purchases in accounts payable

Supplemental disclosure of cash flow information:

18 unchanged sentences

The Company has incurred significant operating losses since its inception.

While the Company has previously reported net income, the Company cannot ensure that it will continue to do so and will need to continue to generate significant revenue to sustain operations and successfully commercialize neratinib.

While the Company has reported net income, the Company cannot ensure that it will continue to do so and will need to continue to generate significant revenue to sustain operations and successfully commercialize neratinib.

In 2017, the Company received U.S.

11 unchanged sentences

The Company paid Takeda an upfront license fee of $ 7.0 million in October 2022, and Takeda is eligible to receive potential future milestone payments of up to $ 287.3 million upon the Company’s achievement of certain regulatory and commercial milestones over the course of the exclusive license agreement, as well as tiered royalty payments for any net sales of alisertib.

As of March 31, 2026 , no milestones had been accrued as the underlying contingencies were not probable.

The Company has reported net loss of approximately $ 3.8 million and cash provided by operations of approximately $ 15.4 million for the three months ended March 31, 2026 .

The Company’s commercialization, research and development or marketing efforts may require funding in addition to the cash and cash equivalents and marketable securities totaling approximately $ 101.5 million at March 31, 2026 .

The Company believes that its existing cash and cash equivalents and marketable securities as of March 31, 2026 and proceeds that are expected to become available to the Company through product sales and sub-license payments are sufficient to satisfy its operating cash needs, including amounts due under the Company’s Note Purchase Agreement with Athyrium Opportunities IV Co-Invest 1 LP (“Athyrium”) (see Note 9—Debt ), for at least one year after th e filing of the Quarterly Report on Form 10 -Q in which these financial statements are included.

As of June 30, 2026 , no milestones had been accrued as the underlying contingencies were not probable.

The Company has reported net income of approximately $ 4.4 million and cash provided by operations of approximately $ 17.0 million for the six months ended June 30, 2026 .

The Company believes that its existing cash and cash equivalents and marketable securities as of June 30, 2026 and proceeds that are expected to become available to the Company through product sales and sub-license payments are sufficient to satisfy its operating cash needs for at least one year after th e filing of the Quarterly Report on Form 10 -Q in w hich these financial statements are included.

The Company continues to remain dependent, in part, on its ability to obtain sufficient funding to sustain operations and continue to successfully commercialize neratinib in the United States.

On May 4, 2026, the Company paid $ 11.5 million to Athyrium Opportunities IV Co-Invest 1 LP ("Athyrium"), consisting of principal, interest and exit fees due under the 2021 Note Purchase Agreement.

This payment was made ahead of the maturity date of July 23, 2026, reduced the principal balance outstanding under the Athyrium Notes to zero and terminated all remaining obligations of the Company under the 2021 Note Purchase Agreement, other than customary continuing indemnification obligations.

While the Company has been successful in raising capital in the past, there can be no assurance that it will be able to do so in the future.

The Company’s ability to obtain funding may be adversely impacted by uncertain market and economic condition s, including th e Company’s success in commercializing neratinib and unfavorable decisions of regulatory authorities or adverse clinical trial results.

The Company’s ability to obtain funding may be adversely impacted by uncertain market and economic conditions, including the Company’s success in commercializing neratinib and unfavorable decisions of regulatory authorities or adverse clinical trial results.

The outcome of these matters cannot be predicted at this time.

Additionally, the terms of the Company’s Note Purchase Agreement place restrictions on the Company’s ability to operate the business and on the Company’s financial flexibility, and the Company may be unable to achieve the revenue necessary to satisfy the minimum revenue and cash balance covenants as specified in the agreement.

Since its inception through March 31, 2026 , the Company’s financing has primarily consisted of proceeds from product, royalty and license revenue, public offerings of its common stock, private equity placements, and various debt instruments.

In the opinion of management, the included disclosures are adequate, and the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair statement of its consolidated financial position as of March 31, 2026 .

Since its inception through June 30, 2026 , the Company’s financing has consisted primarily of proceeds from product, royalty and license revenue, public offerings of its common stock, private equity placements, and various debt instruments.

Such adjustments are of a normal and recurring nature.

The condensed consolidated balance sheet as of December 31, 2025 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the audited annual financial statements.

The condensed consolidated results of operations for the quarter ended March 31, 2026 are not necessarily indicative of the consolidated results of operations that may be expected for the fiscal year ending December 31, 2026 .

The condensed consolidated results of operations for the quarter ended June 30, 2026 are not necessarily indicative of the consolidated results of operations that may be expected for the fiscal year ending December 31, 2026 .

The Company does not believe that tariffs imposed or proposed to be imposed by the United States, particularly with the EU and China, will have a material impact on its product costs or results of operations.

2 unchanged sentences

On April 2, 2026, the U.S.

government issued a proclamation under Section 232 of the Trade Expansion Act of 1962, imposing new tariffs on imported patented pharmaceutical products and associated active pharmaceutical ingredients (APIs).

Any potential impact of the proclamation on the Company is uncertain and under review.

government issued a proclamation under Section 232 of the Trade Expansion Act of 1962, imposing a 100% ad valorem duty, subject to specified exclusions, on the import of patented pharmaceutical products listed in the FDA’s Orange Book or Purple Book, as well as their associated active pharmaceutical ingredients (“APIs”).

A reduced 20% rate is available to companies with onshoring plans approved by the U.S.

Secretary of Commerce, although this reduced rate is scheduled to increase to 100% over a four -year period.

These tariffs become effective on July 31, 2026 for certain large companies and will become effective on September 29, 2026 for all other companies.

The potential impact of the proclamation on the Company, including any indirect effect, remains uncertain and under review.

Note 2 — Significant Accounting Policies:

9 unchanged sentences

The Company's Chief Operating Decision Maker (“CODM”) is its President, Chief Executive Officer and Chairman of the Board, Alan H.

The CODM primarily uses the Company's Consolidated Statement of Operations and related revenues, expenses and net (loss) income in evaluating the performance of the single operating segment and determining how to allocate resources of the Company as a whole, including its sales force and related marketing, research and development programs, including alisertib, and licensing strategy.

Consolidated revenue, expenses and net (loss) income are also used to monitor budget versus actual results.

In addition to the significant expense categories included within consolidated n et (loss) income presented on the Company's Condensed Consolidated Statements of Operations, see below for disaggregated amounts that comprise operating expenses:

For the Three Months Ended March 31,

The CODM primarily uses the Company's Consolidated Statement of Operations and related revenues, expenses, and net income in evaluating the performance of the single operating segment and determining how to allocate resources of the Company as a whole, including its sales force and related marketing, research and development programs, including alisertib, and licensing strategy.

Consolidated revenue, expenses and net income are also used to monitor budget versus actual results.

In addition to the significant expense categories included within consolidated n et income presented on the Company's Condensed Consolidated Statements of Operations, see below for disaggregated amounts that comprise operating expenses:

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Cost of sales

$ 10,424 $ 10,556

General and administrative

Commercialization

10,883 10,190

Research and development:

3 unchanged sentences

Operating costs and expenses

46,746 39,997

Stock-based compensation

Total operating costs and expenses

$ 48,642 $ 42,023

( 1 ) Other research and development expense includes regulatory affairs, pharmacovigilance, quality assurance, chemical manufacturing, and other costs.

5 unchanged sentences

Other significant estimates include those related to the valuation of deferred income taxes, legal and other expense accruals.

Net (Loss) In come per S hare of Common Stock:

Basic net (loss) income per share of common stock is computed by dividing net (loss) income available to common stockholders by the weighted-average number of shares of common stock outstanding during the periods presented, as required by Accounting Standards Codification (“ASC”), ASC 260, Earnings per Share .

For purposes of calculating diluted net (loss) income per share of common stock, the denominator includes both the weighted-average number of shares of common stock outstanding and the number of dilutive common stock equivalents, such as stock options, restricted stock units (“RSUs”) and warrants.

Net In come per S hare of Common Stock:

Basic net income per share of common stock is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the periods presented, as required by Accounting Standards Codification (“ASC”), ASC 260, Earnings per Share .

For purposes of calculating diluted net income per share of common stock, the denominator includes both the weighted-average number of shares of common stock outstanding and the number of dilutive common stock equivalents, such as stock options, restricted stock units (“RSUs”), and warrants.

A common stock equivalent is not included in the denominator when calculating diluted earnings per common share if the effect of such common stock equivalent would be anti-dilutive.

4 unchanged sentences

Diluted EPS excludes the impact of potential common shares related to the Company's stock options in periods in which the option exercise price is greater than the average market price of its common stock for the period.

The following potentially dilutive outstanding common stock equivalents for the respective periods were excluded from diluted net (loss) income per share because of their anti-dilutive effect:

The following potentially dilutive outstanding common stock equivalents for the respective periods were excluded from diluted net income per share because of their anti-dilutive effect:

For the Three Months Ended

For the Six Months Ended

Options outstanding

1,747,461 4,022,555

Warrant outstanding

2,116,250 2,116,250

Unvested restricted stock units

9,342 712,508

3,873,053 6,851,313

The 2,116,250 shares underlying the warrant will not have an impact on the Company's diluted net (loss) income per share until the average market price of its common stock exceeds the exercise price of $ 16 per share (see Note 10—Stockholders’ Equity).

A reconciliation of the numerators and denominators of the basic and diluted net (loss) income per share of common stock computations is as follows (in thousands, except share and per share amounts):

For the Three Months Ended March 31,

Net (loss) income

$ ( 3,753 ) $ 2,974

Weighted average common stock outstanding for basic net (loss) income per share

50,845,130 49,595,697

The 2,116,250 shares underlying the warrant will not have an impact on the Company's diluted net income per share until the average market price of its common stock exceeds the exercise price of $ 16 per share.

The warrant will expire on October 4, 2026.

( see Note 10—Stockholders’ Equity).

A reconciliation of the numerators and denominators of the basic and diluted net income per share of common stock computations is as follows (in thousands, except share and per share amounts):

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Weighted average common stock outstanding for basic net income per share

Net effect of dilutive common stock equivalents

Weighted average common stock outstanding for diluted net (loss) income per share

50,845,130 49,906,341

Net (loss) income per share of common stock

$ ( 0.07 ) $ 0.06

Weighted average common stock outstanding for diluted net income per share

Net income per share of common stock

Revenue Recognition:

8 unchanged sentences

In addition to distribution agreements with these customers, the Company enters into arrangements with healthcare providers and payors that provide for government mandated and/or privately negotiated rebates, chargebacks, and discounts with respect to the purchase of the Company’s products.

The Company recognizes revenue on product sales when the specialty pharmacy or specialty distributor, as applicable, obtains control of the Company’s product, which occurs at a point in time (upon delivery).

The Company recognizes revenue from product sales when the specialty pharmacy or specialty distributor, as applicable, obtains control of the Company’s product, which occurs at a point in time (upon delivery).

Product revenue is recorded net of applicable reserves for variable consideration, including discounts and allowances.

4 unchanged sentences

The Company expenses incremental costs of obtaining a contract when incurred if the expected amortization period of the asset that the Company would have recognized is one year or less.

However, no such costs were incurred during the three months ended March 31, 2026 and 2025 .

However, no such costs were incurred during the six months ended June 30, 2026 and 2025 .

Reserves for Variable Consideration:

6 unchanged sentences

The amount of variable consideration that is included in the transaction price may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized under the contract will not occur in a future period.

The Company’s analyses also contemplated application of the constraint in accordance with the guidance, under which it determined a significant reversal of revenue would not likely occur in a future period for the estimates detailed below as of March 31, 2026 , and, therefore, the transaction price was not reduced further during the quarter ended March 31, 2026 .

The Company’s analyses also contemplated application of the constraint in accordance with the guidance, under which it determined a significant reversal of revenue would not likely occur in a future period for the estimates detailed below as of June 30, 2026 , and, therefore, the transaction price was not reduced further during the quarter ended June 30, 2026 .

Actual amounts of consideration ultimately received may differ from the Company’s estimates.

9 unchanged sentences

The Company currently estimates product returns using its own sales information, including its visibility into the inventory remaining in the distribution channel.

The Company has an insignificant number of returns to date and believes that returns of its products will continue to be minimal.

The Company has had an insignificant number of returns to date and believes that returns of its products will continue to be minimal.

Provider Chargebacks and Discounts:

30 unchanged sentences

License fees under the sub-license agreements include one -time upfront payments when each sub-license agreement was executed and potential additional one -time milestone payments due to the Company upon successful completion of certain performance obligations, such as achieving regulatory approvals or sales target thresholds, and potential double-digit royalties on sales of the licensed product, calculated as a percentage of net sales of the licensed product throughout each sub-licensee’s respective territory.

As of March 31, 2026 , the total potential milestone payments that would be due to the Company upon achievement of all respective performance obligations under the sub-license agreements is approximately $ 579.8 million.

As of June 30, 2026 , the total potential milestone payments that would be due to the Company upon achievement of all respective performance obligations under the sub-license agreements is approximately $ 579.8 million.

A t this time, the Company cannot estimate if or when these milestone-related performance obligations might be achieved.

34 unchanged sentences

Option forfeitures are estimated when the option is granted to reduce the option expense to be recognized over the life of the award.

The estimated forfeiture rate considers historical employee turnover rates stratified into employee pools, actual forfeiture experience and other factors.

The estimated forfeiture rate considers historical employee turnover rates stratified into employee pools, actual forfeiture experience,

and other factors.

The option expense is adjusted upon the actual forfeiture of a stock option grant, and the Company periodically revises the estimated forfeiture rate in subsequent periods if actual forfeitures differ from those estimates.

32 unchanged sentences

ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.

As of March 31, 2026 , the Company’s uncertain tax positions include a reserve for its research and development credits.

As of June 30, 2026 , the Company’s uncertain tax positions include a reserve for its research and development credits.

Financial Instruments:

5 unchanged sentences

Restricted cash represents cash held at financial institutions that is pledged as collateral for stand-by letters of credit for office leas es .

The lease-related letters of credit will lapse at the end of the respective lease terms through 2 026.

At each of the periods ended March 31, 2026 and December 31, 2025 , the Company had restricted cash of approximately $ 2.1 million.

The lease-related letters of credit were terminated, and the related cash collateral was released, during the six months ended June 30, 2026.

At each of the periods ended June 30, 2026 and December 31, 2025 , the Company had restricted cash of approximately $ 0.0 million and $ 2.1 million, respectively.

Investment Securities:

20 unchanged sentences

Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

Following are the major categories of assets measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 , using quoted prices in active markets for identical assets (Level 1 ), significant other observable inputs (Level 2 ), and significant unobservable inputs (Level 3 ) (in thousands):

March 31, 2026

Following are the major categories of assets measured at fair value on a recurring basis as of June 30, 2026 , and December 31, 2025 , using quoted prices in active markets for identical assets (Level 1 ), significant other observable inputs (Level 2 ), and significant unobservable inputs (Level 3 ) (in thousands):

June 30, 2026

Cash Equivalents

$ 86 $ 26,194 $ — $ 26,280

Government Securities

17,274 18,444 — 35,718

Corporate Bonds

— 7,380 — 7,380

Commercial Paper

— 22,254 — 22,254

$ 17,360 $ 74,272 $ — $ 91,632

December 31, 2025

Cash Equivalents

$ 5,060 $ 18,710 $ — $ 23,770

Government Securities

27,903 14,873 — 42,776

Corporate Bonds

— 6,865 — 6,865

Commercial Paper

— 18,252 — 18,252

$ 32,963 $ 58,700 $ — $ 91,663

The Company’s investments in commercial pa per, corporate bonds and U.S.

3 unchanged sentences

The following tables summarize the Company’s cash equivalents and short-term investments (in thousands):

March 31, 2026

June 30, 2026

Cash Equivalents

$ 26,285 $ — $ ( 5 ) $ 26,280

Government Securities

35,730 5 ( 17 ) 35,718

Corporate Bonds

7,387 — ( 7 ) 7,380

Commercial Paper

22,261 — ( 7 ) 22,254

$ 91,663 $ 5 $ ( 36 ) $ 91,632

December 31, 2025

Cash Equivalents

$ 23,772 $ — $ ( 2 ) $ 23,770

Government Securities

42,739 37 — 42,776

Corporate Bonds

6,866 1 ( 2 ) 6,865

Commercial Paper

18,250 3 ( 1 ) 18,252

$ 91,627 $ 41 $ ( 5 ) $ 91,663

Concentration of Risk:

Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash and cash equivalents, marketable securities, and accounts receivable, net.

The Company’s cash and cash equivalents and restricted cash in excess of the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation insured limits at March 31, 2026 were approximately $ 37.5 million.

The Company does not believe it is exposed to any significant credit risk due to the quality nature of the financial instruments in which the money is held.

Th e Company does not believe it is exposed to any significant credit risk due to the quality nature of the financial instruments in which the money is held.

Pursuant to the Company’s internal investment policy, investments must be rated A- 1/P - 1 or better by Standard and Poor’s Rating Service and Moody’s Investors Service at the time of purchase.

23 unchanged sentences

Starter kits, provided to patients prior to insurance approval, are expensed by the Company to selling, general and administrative expense as incurred.

Of the total inventory amounts noted below, approxim ately $ 8.1 million i s located at contract manufacturing organizations in Europe as of March 31, 2026 .

Of the total inventory amounts noted below, approxi mately $ 13.2 m illion i s located at contract manufacturing organizations in Europe as of June 30, 2026 .

The Company’s inventory balances are as follows:

March 31, 2026

June 30, 2026

December 31, 2025

Raw materials

$ 5,998 $ 3,212

Work-in-process

1 unchanged sentence

Total inventories

$ 8,693 $ 5,515

Property and Equipment, Net:

7 unchanged sentences

If the undiscounted cash flows used in the recoverability test are less than the carrying value, the Company would then determine the fair value of the long-lived asset and recognize an impairment loss for the amount in excess of the carrying value.

No impairments were recorded during the three months ended March 31, 2026 and 2025 .

ASC Topic 842, Leases , as adopted in the first quarter of 2019, requires lessees to recognize most leases on the balance sheet with a corresponding right-of-use asset (“ROU asset”).

No impairments were recorded during the three months ended June 30, 2026 and 2025 .

ASC Topic 842, Leases requires lessees to recognize most leases on the balance sheet with a corresponding right-of-use asset (“ROU asset”).

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

17 unchanged sentences

The Company is required to remeasure the lease liability and make an adjustment in the following instances:

• The term of the lease has been modified or there has been a change in the Company’s assessment of a purchase option being exercised, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount

the term of the lease has been modified or there has been a change in the Company’s assessment of a purchase option being exercised, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate;

a lease contract is modified, and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate;

2 unchanged sentences

As the implicit rate on the Company’s leases is not readily determinable, the Company uses its IBR based on the information available at the commencement date in determining the present value of lease payments.

The Company’s average IBR for existing lea ses as of March 31, 2026 is 12.4 % .

The Company’s average IBR for existing lea ses as of June 30, 2026 is 12.4 % .

License Fees and Intangible Assets:

21 unchanged sentences

Accounts receivable, net consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

3 unchanged sentences

Trade accounts receivable consist entirely of amounts owed from the Company’s customers related to product sales.

Royalty revenue receivable represents amounts owed related to royalty revenue recognized based on the Company’s sub-licensees’ sales in their respective territories in the periods ended March 31, 2026 and December 31, 2025 .

For all accounts receivable, the Company recognizes credit losses based on lifetime expected losses to selling, general and administrative expense in the condensed consolidated statements of operations.

In determining estimated credit losses, the Company evaluates its historical loss rates, current economic conditions, and reasonable and supportable forecasts of future economic conditions .

The Company did not record a provision for credit loss (recovery) for the three months ended March 31, 2026 , compared to a provision for credit loss of $ 0.2 million for the three months ended March 31, 2025 .

The Company recorded a recovery to the provision for credit loss of $ 0.0 million and $ 0.3 million for the three months ended June 30, 2026 and 2025, respectively.

The Company recorded a recovery to the provision of credit loss of $0.0 million and $ 0.1 million for six months ended June 30, 2026 and 2025, respectively.

Note 4 — Prepaid Expenses and Other:

Prepaid expenses and other consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

9 unchanged sentences

Concurrent with the execution of the lease, the Company provided the landlord an automatically renewable stand-by letter of credit in the amount of $ 1.0 million.

The stand-by letter of credit is collateralized by a high-yield savings account, which is classified as restricted cash, long-term on the accompanying consolidated balance sheets.

As amended, the Company rents approximately 65,656 square feet.

The term of the lease runs until March 2026.

In July 2025, the Company executed an amendment to its office space in Los Angeles, California to surrender certain suites effect ive March 31, 2026 and e xtend the lease term for the remaining 26,700 rentable square feet for an additional five years and five months through August 31, 2031.

The stand-by letter of credit was collateralized by a high-yield savings account, which was classified as restricted cash, current, until March 31, 2026, when the lease was amended to remove the stand-by letter of credit requirement.

In July 2025, the Company executed an amendment to its office space in Los Angeles, California to surrender certain suites effective March 31, 2026 and extend the lease term for the remaining 26,700 rentable square feet for an additional five years and five months through August 31, 2031.

Base rent escalates annually and is abated from April 2026 through August 2026.

3 unchanged sentences

In June 2012, the Company entered into a long-term lease agreement for office space in South San Francisco, California, which was subsequently amended in May 2014 and July 2015.

As amended, the Company rents approximately 29,470 square feet.

As amended, the Company rented approximately 29,470 square feet.

The term of this lease expired on March 31, 2026.

The Company provided the landlord an automatically renewable stand-by letter of credit in the amount of $ 1.1 million.

The stand-by letter of credit is collateralized by a high-yield savings account, which is classified as restricted cash, current on the accompanying consolidated balance sheets until 60 days after the expiration of the lease.

Total rent expense for the three months ended March 31, 2026 and 2025 was approximately $ 1.1 million and $ 1.2 million, respectively.

The stand-by letter of credit was collateralized by a high-yield savings account, which was classified as restricted cash, current until 60 days after the expiration of the lease.

The 60 -day period lapsed, and the letter of credit was released during the three months ended June 30, 2026.

Total rent expense for the three months ended June 30, 2026 and 2025 was approximately $ 0.3 million and $ 1.0 million, respectively.

Total rent expense for the six months ended June 30, 2026 and 2025 , was approximately $ 1.4 million and $ 2.2 million, respectively.

For purposes of determining straight-line rent expense, the lease term is calculated from the date the Company first takes possession of the facility, including any periods of free rent and any renewal option periods that the Company is reasonably certain of exercising.

The Company’s office leases generally have contractually specified minimum rent and annual rent increases that are included in the measurement of the ROU asset and related lease liability.

The Company’s office leases generally have contractually specified minimum rent and annual rent increases that are included in the measureme nt of the ROU asset and related lease liability.

Additionally, under these lease arrangements, the Company may be required to pay directly, or reimburse the lessors, for real estate taxes, insurance, utilities, maintenance, and other operating costs.

Such amounts are generally variable and therefore not included in the measurement of the ROU asset and related lease liability but are instead recognized as variable lease expense in selling, general and administrative costs in the condensed consolidated statements of operations when they are incurred.

Supplemental cash flow information related to leases for the three months ended March 31, 2026:

Supplemental cash flow information related to leases for the six months ended June 30, 2026:

Operating cash flows used for operating leases (in thousands)

Right-of-use assets obtained in exchange for new operating lease liabilities

Weighted-average remaining lease term (in years)

Weighted average discount rate

Future minimum lease payments as of March 31, 2026 were as follows (in thousands):

Future minimum lease payments as of June 30, 2026 were as follows (in thousands):

Total minimum lease payments

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This sublease expired on March 31, 2026.

The Company rec orded operating sublease income of $ 0.2 million for each of the three months ended March 31, 2026 and 2025 , in other income (expenses) in the co ndensed consolidated statements of operations.

The Company recorded no operating sublease income for the three months ended June 30, 2026 and $ 0.2 million for the three months ended June 30, 2025, and $ 0.2 million and $ 0.3 million for the six months ended June 30, 2026 and 2025 , respectively, in other income (expenses) in the condensed consolidated statements of operations.

Note 6 — Property and Equipment, Net:

Property and equipment, net consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

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Property and equipment, net

For the three months ended March 31, 2026 and 2025 , the Company incurred depreciation expense of $ 0.1 million and $ 0.1 million, respectively.

For the three months ended June 30, 2026 and 2025, the Company incurred nominal depreciation expense for the three months ended June 30, 2026 and $ 0.1 million for the three months ended June 30, 2025.

For the six months ended June 30, 2026 and 2025 , the C ompany incurred depreciation expense of $ 0.1 million and $ 0.2 million, respectively.

Note 7 — Intangible Assets, Net:

Intangible assets, net consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

Acquired and in-licensed rights

$ 102,500 $ 102,500

accumulated amortization

( 63,543 ) ( 61,108 )

Total intangible assets, net

$ 38,957 $ 41,392

For each of the three months ended March 31, 2026 and 2025 , the Company incurred amortization expe nse of $ 2.4 million and $ 2.4 million, respectively.

The estimated remaining useful life of the inta ngible assets as of March 31, 2026 is 4.0 years.

As of March 31, 2026 , estimated future amortization expense related to the Company’s intangible assets is approximately $ 7.3 million for the remainder of 2026 and $ 9.7 million for each year starting 2027 through 2029, and $ 2.4 million for 2030.

For the three months ended June 30, 2026 and 2025 , the Company incurred amortization expe nse of $2.4 million in each period.

For the six months ended June 30, 2026 and 2025, the Company incurred amortization expense of $ 4.9 million in each period.

The estimated remaining useful life of the inta ngible assets as of June 30, 2026 is 3.8 years.

As of June 30, 2026 , estimated future amortization expense related to the Company’s intangible assets is approximately $ 4.9 million for the remainder of 2026 and $ 9.7 million for each year starting 2027 through 2029, and $ 2.4 million for 2030.

Note 8 — Accrued Expenses:

Accrued expenses consisted of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

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Long term debt consisted of the following (in thousands):

March 31, 2026

June 30, 2026

Maturity Date

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The Athyrium Notes were issued for face amount of $ 100.0 million net of an original issue discount of $ 1.5 million.

The Athyrium Notes also require a 2.0 % exit payment to be made on each payment of principal.

The Athyrium Notes also required a 2.0 % exit payment to be made on each payment of principal.

The borrowings under the Athyrium Notes, together with cash on hand, were used to repay the Company’s outstanding indebtedness, including the applicable exit and prepayment fees owed to lenders under its prior credit facility with Oxford.

The Athyrium Notes are secured by substantially all of the Company’s assets.

The Athyrium Notes were secured by substantially all of the Company’s assets.

The Company incurred $ 1.9 million of deferred financing costs with the initial borrowing of the Athyrium Notes.

Interest on the Athyrium Notes is calculated in part based on the Secured Overnight Financing Rate (“SOFR”), which replaced the “London Interbank Offering Rate” as the floating benchmark for interest rate calculations applicable to the Athyrium Notes pursuant to the terms of the Third Amendment to Note Purchase Agreement dated as of September 16, 2022 ( the “Third Amendment”).

Interest on the Athyrium Notes was calculated in part based on the Secured Overnight Financing Rate (“SOFR”), which replaced the “London Interbank Offered Rate” as the floating benchmark for interest rate calculations applicable to the Athyrium Notes pursuant to the terms of the Third Amendment to Note Purchase Agreement dated as of September 16, 2022 ( the “Third Amendment”).

The modification of the Note Purchase Agreement pursuant to the Third Amendment did not meet the requirements of a debt extinguishment under ASC Topic 470 - 50— Debt Modifications and Exchanges and no gain or loss was recognized.

The Company performed a quantitative analysis and determined that the terms of the new debt and original debt instrument were not substantially different.

Accordingly, the Third Amendment is accounted for as a debt modification.

Following the effectiveness of the Third Amendment, the Athyrium Notes bear interest at an annual rate equal to the sum of (a) eight percent ( 8.00 %) plus (b) the lesser of (i) the sum of ( x ) three -month term SOFR for an interest period of three months plus (y) 0.26161 % ( 26.161 basis points) and (ii) three and one -half of one percent ( 3.50 %) per annum.

Interest is payable quarterly on the last business day of March, June, September and December each year.

In the second quarter of 2024, the Company began paying the principal payments required to be made quarterly at 11.11 % of the original face amount.

The remaining balance will be paid at maturity.

Each principal payment also includes a 2.0 % exit payment.

Each quarterly principal payment approximates $ 11.1 million, and each quarterly exit fee payment approximates $ 0.2 million.

As of March 31, 2026 , the effective interest rate for the loan was 12.99 %.

As of March 31, 2026, the Company may prepay the outstanding principal balance of the notes, in whole or in part, without premium or penalty.

The Athyrium Notes include affirmative and negative covenants applicable to the Company.

The affirmative covenants include, among others, covenants requiring the Company to maintain its legal existence and governmental approvals, deliver certain financial reports, maintain insurance coverage, and satisfy certain requirements regarding deposit accounts.

The negative covenants include, among others, restrictions on the Company’s transferring collateral, incurring additional indebtedness, engaging in mergers or acquisitions, paying dividends or making other distributions, making investments, creating liens, selling assets and suffering a change in control, in each case subject to certain exceptions.

The Company is also required to maintain minimum cash balances and achieve certain minimum product revenue targets, measured as of the last day of each fiscal quarter on a trailing year-to-date basis.

As of March 31, 2026 , the Company was in compliance with such covenants.

As of March 31, 2026 , the principal balance outstanding under the Athyrium Notes was $ 11.1 million and exit fees were $ 0.2 million, representing all of the Company’s debt.

The future minimum principal and exit payments under the Athyrium Notes as of March 31, 2026 are as follows (in thousands):

Accordingly, the Third Amendment was accounted for as a debt modification.

Following the effectiveness of the Third Amendment, the Athyrium Notes bore interest at an annual rate equal to the sum of (a) eight percent ( 8.00 %) plus (b) the lesser of (i) the sum of ( x ) three -month term SOFR for an interest period of three months plus (y) 0.26161 % ( 26.161 basis points) and (ii) three and one -half of one percent ( 3.50 %) per annum.

Interest was payable quarterly on the last business day of March, June, September, and December each year.

In the second quarter of 2024, the Company began paying principal payments required to be made quarterly at 11.11 % of the original face amount.

Each principal payment also included a 2.0 % exit payment.

Each quarterly principal payment approximated $ 11.1 million, and each quarterly exit fee payment approximated $ 0.2 million.

Immediately prior to repayment described below, the effective interest rate for the Athyrium Notes was 12.99 %.

On May 4, 2026, the Company paid $ 11.5 million to Athyrium Opportunities IV Co-Invest 1 LP, consisting of principal, interest and exit fees due under the 2021 Note Purchase Agreement.

Debt Issuance Costs and Discounts:

Debt issuance costs and discounts consist of the following (in thousands):

March 31, 2026

June 30, 2026

December 31, 2025

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Amortization of debt issuance costs is expensed using the effective interest method and is included in interest expense in the condensed consolidated statement of operations.

For each of the three months ended March 31, 2026 and 2025, t he Company recorded approximately $ 0.1 million and $ 0.2 million of interest expense, respectively.

The Company recorded nominal amounts of interest expense for the thee months ended June 30, 2026 , and $ 0.1 million of interest expense for the six months ended June 30, 2026 .

For three and six months ended June 30, 2025 , the Company recorded approximately $ 0.1 million and $ 0.3 million of interest expense, respectively.

Note 10 — Stockholders ’ Equity:

Common Stock:

The Company did not issue any shares of common stock upon exercise of stock options during the three months ended March 31, 2026 and 2025 .

The Company issued 471,181 and 509,340 shares of common stock upon vesting of RSUs during the three months ended March 31, 2026 and 2025 , respectively.

The Company issued 0 shares and 55,882 shares of common stock upon exercise of stock options during the six months ended June 30, 2026 and 2025 , respectively.

The Company issued 694,664 and 731,009 shares of common stock upon vesting of RSUs during the six months ended June 30, 2026 and 2025 , respectively.

Authorized Shares:

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Auerbach may exercise the Auerbach Warrant to acquire 2,116,250 shares of the Company’s common stock at $ 16 per share until October 4, 2026.

The Board of Directors is submitting for stockholder approval a second amendment (the “Auerbach Warrant Amendment”) to the Auerbach Warrant, as amended by the first amendment on April 1, 2021.

The Auerbach Warrant Amendment was approved by the Company’s Compensation Committee and Board of Directors on March 13, 2026 and March 20, 2026, respectively, and in each case, is subject to approval by the Company’s stockholders at the Annual Meeting.

On June 11, 2026, the Company held the 2026 Annual Meeting of Stockholders, and the Company’s stockholders did not approve an amendment to the terms of the Auerbach Warrant, to extend its term from October 4, 2026 until October 4, 2028.

Stock Options and Restricted Stock Units:

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Incentive stock options may be granted only to employees, while consultants, employees, officers, and directors are eligible for the grant of nonqualified options under the 2011 Plan.

The maximum term of stock options granted under the 2011 Plan is 10 years and the awards generally vest over a three -year period.

The maximum term of stock options granted under the 2011 Plan is 10 years and the awards generally vest over a two -year period.

The exercise price of incentive stock options granted under the 2011 Plan must be at least equal to the fair value of such shares on the date of grant .

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On June 18, 2024, the stockholders of the Company approved an amendment to the Company ’ s 2011 Plan, increasing the number of authorized shares of the Company’s common stock, par value $ 0.0001 per share, that may become issuable under the 2011 Plan by 3,000,000 shares and extending the period during which incentive stock options may be granted.

As of March 31, 2026 , a total of 17,529,412 shares of the Company’s common stock have been reserved for issuance under the 2011 Plan.

As of June 30, 2026 , a total of 17,529,412 shares of the Company’s common stock have been reserved for issuance under the 2011 Plan.

All of the options awarded by the Company have been “plain vanilla options” as determined by the SEC Staff Accounting Bulletin 107 — Share Based Payment.

As of March 31, 2026 , 5,201,704 shares of the Company’s common stock are issuable upon the exercise of outstanding stock options and vesting of RSUs granted under the 2011 Plan and 2,174,925 shares of the Company’s common stock are available for future issuance under the 2011 Plan.

The fair value of options granted to employees and nonemployees was estimated using the Black-Scholes Option Pricing Method (see Note 2—Significant Accounting Policies) with the following weighted-average assumptions used during the three months ended March 31, 2026 :

As of June 30, 2026 , 5,061,725 shares of the Company’s common stock are issuable upon the exercise of outstanding stock options and vesting of RSUs granted under the 2011 Plan and 2,123,279 shares of the Company’s common stock are available for future issuance under the 2011 Plan.

Dividend yield

Expected volatility

74.1 % 81.5 %

Risk-free interest rate

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Pursuant to the 2017 Plan, the Company may grant stock options and RSUs, as well as other forms of equity-based compensation, to employees as an inducement to join the Company.

The maximum term of stock options granted under the 2017 Plan is 10 years and the awards generally vest over a three -year period.

The maximum term of stock options granted under the 2017 Plan is 10 years and the awards generally vest over a two -year period.

The exercise price of stock options granted und er the 2017 Plan must be at least equal to the fair market value of such shares on the date of grant.

On July 15, 2021, the Board of Directors adopted an amendment to the 2017 Plan to increase the number of shares of the Company ’ s common stock reserved for issuance thereunder by 1,000,000 share s.

As of March 31, 2026 , a total of 397,974 shares of the Company’s common stock are issuable upon the exercise of outstanding stock options and vesting of RSUs granted under the 2017 Plan and 1,282,048 shares of the Company’s common stock are available for future issuance under the 2017 Plan.

On July 15, 2021, the Board of Directors adopted an amendment to the 2017 Plan to increase the number of shares of the Company ’ s common stock reserved for issuance thereunder by 1,000,000 shares.

As of June 30, 2026 , a total of 452,146 shares of the Company’s common stock are issuable upon the exercise of outstanding stock options and vesting of RSUs granted under the 2017 Plan and 1,196,018 shares of the Company’s common stock are available for future issuance under the 2017 Plan.

Stock-based compensation expense was as follows (in thousands):

For the Three Months Ended

For the Six Months Ended

Stock-based compensation:

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Total stock-based compensation expense

$ 1,896 $ 2,026

Activity with respect to options granted under the 2011 Plan and 2017 Plan is summarized as follows:

Stock Option Roll Forward:

Intrinsic Value

(in thousands)

Weighted Average Exercise Price

Weighted Average Remaining Contractual Term (years)

Aggregate Intrinsic Value (in thousands)

Outstanding at December 31, 2025

3,217,289 $ 16.13

Outstanding at March 31, 2026

3,581,625 $ 15.17 5.6 $ 4,193

Vested and expected to vest at March 31, 2026

3,581,625 $ 15.17 5.6 $ 4,193

3,004,142 $ 17.08 4.9 $ 3,424

At March 31, 2026 , total estimated unrecognized employee compensation cost related to non-vested stock options granted prior to that date was approximately $ 1.7 million , which is expected to be recognized over a weighted-average period o f 1.7 years .

At March 31, 2026 , the total estimated unrecognized employee compensation cost related to non-vested RSUs was approximately $ 8.8 million , which is expected to be recognized over a weighted-average period of 1.7 years .

The weighted-average grant date fair value of options granted during the three months ended March 31, 2026 and 2025 was $ 4.37 and $ 1.95 per share, respectively.

The weighted-average grant date fair value of RSUs awarded during the three months ended March 31, 2026 and 2025 was $ 6.79 and $ 3.28 per share, respecti vely.

Outstanding at June 30, 2026

Vested and expected to vest at June 30, 2026

At June 30, 2026 , total estimated unrecognized employee compensation cost related to non-vested stock options granted prior to that date was approximately $ 1.4 million , which is expected to be recognized over a weighted-average period of 1.4 years .

At June 30, 2026 , the total estimated unrecognized employee compensation cost related to non-vested RSUs was approximately $ 9.0 million , which is expected to be recognized over a weighted-average period of 1.5 years .

The weighted-average grant date fair value of options granted during the six months ended June 30, 2026 and 2025 was $ 4.37 and $ 1.95 per share, respectively.

The weighted-average grant date fair value of RSUs awarded during the six months ended June 30, 2026 and 2025 was $ 6.87 and $ 3.31 per share, respecti vely.

Restricted Stock Unit Roll Forward:

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Nonvested shares at December 31, 2025

1,334,973 $ 3.89

1,158,025 $ 6.79

( 3,764 ) $ 3.35

( 471,181 ) $ 4.70

Nonvested shares at March 31, 2026

2,018,053 $ 5.37

Nonvested shares at June 30, 2026

Note 11 — 401 (k) Savings Plan:

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The Company is required to make matching contributions to the 401 (k) plan equal to 100 % of the fi rst 3% of wages deferred by each participating employee and 50 % on the next 2% of wages deferred by each participating employee.

The Company incurred expenses for employer-matching contributions of approximately $ 0.6 million and $ 0.5 million for the three months ended March 31, 2026 and 2025 , respectively.

The Company incurred expenses for employer-matching contributions of approximately $ 1.1 million and $ 1.0 million for the six months ended June 30, 2026 and 2025 , respectively.

Note 12 — Commitments and Contingencies:

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Takeda received an upfront license fee of $ 7.0 million in October 2022 and is eligible to receive potential future milestone payments of up to $ 287.3 million upon the Company’s achievement of certain regulatory and commercial milestones over the course of the exclusive license agreement, as well as tiered royalty payments for any net sales of alisertib.

No milestones were achieved as of March 31, 2026 .

No milestones were achieved as of June 30, 2026 .

Legal Proceedings:

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When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded.

Legal accruals are adjusted as developments warrant.

Legal Malpractice Suit

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The motion was granted on May 16, 2025.

On June 6, 2025, Wyeth filed its reply brief.

Briefing on the appeal is now complete, and the Court has scheduled oral arguments for May 7, 2026.

On June 6, 2025, Wyeth filed its reply brief and oral arguments were held on May 7, 2026.

On July 9, 2026, the Federal Circuit affirmed the judgment of the Delaware District Court, holding the patent claims at issue invalid.

Acebright China Litigation

131 unchanged sentences

The first office action was issued on January 28, 2025 with a response to the first office action filed on July 22, 2025.

Note 13 — Subsequent Event

On May 4, 2026, the Company paid $ 11.5 million to Athyrium Opportunities IV Co-Invest 1 LP, consisting of principal, interest and exit fees due under the 2021 Note Purchase Agreement.

This payment was made ahead of the maturity date of July 23, 2026, reduces the principal balance outstanding under the Athyrium Notes to zero and terminates all remaining obligations of the Company under the 2021 Note Purchase Agreement, other than customary continuing indemnification obligations.

MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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the extended adjuvant treatment of adult patients with early stage HER2-overexpressed/amplified breast cancer following adjuvant trastuzumab-based therapy and for use in combination with capecitabine for the treatment of adult patients with advanced or metastatic HER2-positive breast cancer who have received two or more prior anti-HER2-based regimens in the metastatic setting.

We currently market NERLYNX in the United States using our direct specialty sales force consisting of approximately 35 sales specialists as of December 31, 2025.

We currently market NERLYNX in the United States using our direct specialty sales force consisting of approximate ly 38 sales specialists a s of June 30, 2026.

Our sales specialists are supported by an experienced sales leadership team consisting of regional managers and directors, as well as a commercial team of experienced professionals in marketing, access and reimbursement, managed markets, marketing research, commercial operations and sales force planning and management.

Outside the United States, we seek to enter into exclusive sub-license agreements with third parties to pursue regulatory approval, if necessary, and commercialize NERLYNX, if approved.

As of March 31, 2026, NERLYNX has received approval for the treatment of certain patients with extended adjuvant or metastatic HER2-positive breast cancer in over 60 countries outside the United States.

As of June 30, 2026, NERLYNX has received approval for the treatment of certain patients with extended adjuvant or metastatic HER2-positive breast cancer in over 60 countries outside the United States.

We are currently party to several sub-licenses in various regions outside the United States, including Europe (excluding Ukraine), Australia, Canada, China, Southeast Asia, Israel, South Korea, Russia and various countries and territories in Central America, South America, Africa and the Middle East.

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We recorded in-process research and development expense of $7.0 million during the year ended December 31, 2022 in connection with the upfront payment related to the asset acquisition.

As of March 31, 2026, no milestones had been accrued as the underlying contingencies were not probable.

As of June 30, 2026, no milestones had been accrued as the underlying contingencies were not probable.

Our expenses to date have been related to hiring staff, commencing company-sponsored clinical trials, building out of our corporate infrastructure and, since 2017, the commercial launch of NERLYNX.

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To date, our major sources of working capital have been proceeds from product and license revenue, public and private offerings of our common stock, and proceeds from debt financings.

We intend to satisfy our near-term liquidity requirements through a combination of our existing cash and cash equivalents and marketable securities as of March 31, 2026, and proceeds that we expect to become available to us through product sales, royalties and sub-license milestone payments.

We intend to satisfy our near-term liquidity requirements through a combination of our existing cash and cash equivalents and marketable securities as of June 30, 2026, and proceeds that we expect to become available to us through product sales, royalties, and sub-license milestone payments.

However, this intention is based on assumptions that may prove to be wrong.

Changes may occur that would consume our available capital faster than anticipated, including changes in and progress of our development activities, the impact of commercialization efforts, acquisition of additional drug candidates and changes in regulation.

Some of these developments have had and may continue to have an adverse effect on our revenue and thus could have an adverse effect on our ability to satisfy the minimum revenue and cash balance covenants contained in the Athyrium Notes.

Some of these developments have had and may continue to have an adverse effect on our revenue.

Critical Accounting Policies

As of the date of the filing of this Quarterly Report, we believe there have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2026 from our accounting policies at December 31, 2025, as reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

As of the date of the filing of this Quarterly Report, we believe there have been no material changes to our critical accounting policies and estimates during the six months ended June 30, 2026 from our accounting policies at December 31, 2025, as reported in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Summary of Income and Expenses

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Royalty revenue consists of consideration earned related to product sales made by our sub-licensees in their respective territories pursuant to our sub-license agreements.

Under our sub-license agreement covering China, the royalty rate payable to us is subject to reduction when the market share of generic versions of NERLYNX in China reaches a specified threshold.

We are unable to predict with certainty when this threshold will be reached.

However, we believe it is possible that the threshold could be reached, triggering the royalty rate reduction, in late 2026 or in 2027.

Cost of sales:

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Research and development expenses (“R&D expenses”) include costs associated with services provided by consultants who conduct and perform clinical services on our behalf and contract organizations for the manufacturing of clinical materials.

During the three months ended March 31, 2026 and 2025, our R&D expenses consisted primarily of clinical research organization (“CRO fees”);

During the three and six months ended June 30, 2026 and 2025, our R&D expenses consisted primarily of clinical research organization (“CRO fees”);

fees paid to consultants;

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We do not believe that tariffs imposed or proposed to be imposed by the United States, particularly with the EU and China, will have a material impact on our product costs or results of operations.

However, shifts in trade policies in the United States and other countries have been rapidly evolving and are difficult to

However, shifts in trade policies in the United States and other countries have been rapidly evolving and are difficult to predict.

The ultimate impact of any announced or future tariffs will depend on various factors, including what tariffs are ultimately implemented, the timing of implementation and the amount, scope and nature of such tariffs and potential exclusions from the application of those tariffs.

On April 2, 2026, the U.S.

government issued a proclamation under Section 232 of the Trade Expansion Act of 1962, imposing new tariffs on imported patented pharmaceutical products and APIs.

Any potential impact of the proclamation on the Company is uncertain and under review.

A reduced 20% rate is available to companies with onshoring plans approved by the U.S.

Secretary of Commerce, although this reduced rate is scheduled to increase to 100% over a four-year period.

These tariffs become effective on July 31, 2026 for certain large companies and will become effective on September 29, 2026 for all other companies.

The potential impact of the proclamation on the Company, including any indirect effect, remains uncertain and under review.

Results of Operations

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

Total revenue:

Total revenue for the three months ended March 31, 2026 was approximately $44.8 million, compared to $46.0 million for the three months ended March 31, 2025.

This decrease in total revenue was due to a decrease in product revenue, net of approximately $1.1 million and a slight decrease in royalty revenue.

Total revenue for the three months ended June 30, 2026 was approximately $56.5 million, compared to $52.4 million for the three months ended June 30, 2025.

This increase in total revenue was due to an increase in product revenue, net of approximately $4.4 million, partially offset by a decrease in royalty revenue.

Product revenue, net:

Product revenue, net was approximately $42.0 million for the three months ended March 31, 2026, compared to $43.1 million for the three months ended March 31, 2025.

This decrease in product revenue, net, compared to the three months ended March 31, 2025, was primarily attributable to a greater deduction to gross revenue for variable consideration, primarily related to government chargebacks and payor mix, partially offset by an increase in selling price.

Product revenue, net was approximately $53.6 million for the three months ended June 30, 2026, compared to $49.2 million for the three months ended June 30, 2025.

This increase in product revenue, net, compared to the three months ended June 30, 2025, was primarily attributable to a 12.3% increase in domestic bottles sold and an increase in selling price, partially offset by a greater deduction to gross revenue for variable consideration, primarily related to higher Medicaid related deductions.

Royalty revenue:

Royalty revenue was approximately $2.9 million for each of the three months ended March 31, 2026 and 2025 as sales were relatively consistent to our international partners.

Royalty revenue was approximately $2.9 million and $3.2 million for the three months ended June 30, 2026 and 2025.

The decrease in royalty revenue was due to lower sales by our international partners.

Cost of sales:

Cost of sales was approximately $10.4 million for the three months ended March 31, 2026 , compared to approximately $10.6 million for the three months ended March 31, 2025.

Cost of sales was relatively consistent year-over-year as sales of our product bottles were relatively consistent.

Cost of sales was approximately $12.5 million for the three months ended June 30, 2026 , compared to approximately $12.3 million for the three months ended June 30, 2025.

Cost of sales was slightly higher year-over-year as sales of our product bottles were higher.

Selling, general and administrative expenses:

SG&A expenses were approximately $18.4 million for the three months ended March 31, 2026, compared to approximately $17.6 million for the three months ended March 31, 2025.

SG&A expenses for the three months ended March 31, 2026 and 2025 were as follows:

SG&A expenses were approximately $17.5 million for the three months ended June 30, 2026, compared to approximately $18.0 million for the three months ended June 30, 2025.

SG&A expenses for the three months ended June 30, 2026 and 2025 were as follows:

Selling, general, and administrative expenses

2 unchanged sentences

Payroll and related costs

Provision for credit loss

Provision for credit loss recovery

Professional fees and expenses

2 unchanged sentences

Stock-based compensation

SG& A expenses increased approximately $0.8 million the three months ended March 31, 2026 , compared to the same period in 2025 , primarily attributable to the following:

an increase in payroll and related cost s of $0.9 million due primarily to increases in employee compensation;

an increase in professional fees and expenses of approximately $0.4 million, primarily related to marketing and market access costs.

SG& A expenses decreased approximately $0.5 million for the three months ended June 30, 2026 , compared to the same period in 2025 , primarily attributable to the following:

a decrease in payroll and related costs of approximately $0.2 million, primarily due to the departure of an executive (and related severance costs), partially offset by higher employee payroll costs and higher sales commissions.

a decrease in professional fees and expenses of approximately $0.1 million, primarily related to a $0.9 million reversal of a previously recorded legal accrual related to the AstraZeneca litigation, partially offset by an increase of $0.6 million in marketing and market access costs;

a decrease in facilities and equipment costs of approximately $0.8 million, related to reduced rent as we amended our Los Angeles office lease with less space and terminated our San Francisco office lease as of March 31, 2026.

Partially offset by:

a decrease in credit loss of approximately $0.2 million, primarily related to the payment history of a customer receivable.

a credit loss recovery related to the collection of accounts receivable in 2025 and no such credit loss recovery took place in 2026;

an increase in travel and meetings of $0.2 million due to relatively insignificant fluctuations across multiple expense categories;

an increase in stock-based compensation of approximately $0.2 million, primarily related to our annual employee stock grants, and a higher stock price.

Research and development expenses:

R&D expenses were approxi mately $19.8 million for the three months ended March 31, 2026, compared to approximately $13.9 million for the three months ended March 31, 2025.

R&D expenses for the three months ended March 31, 2026 and 2025 were as follows:

R&D expenses were approxi mately $18.9 million for the three months ended June 30, 2026, compared to approximately $15.5 million for the three months ended June 30, 2025.

R&D expenses for the three months ended June 30, 2026 and 2025 were as follows:

Research and development expenses

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Stock-based compensation

R&D exp enses increased by a pproxim ately $5.9 million for the three m onths ended March 31, 2026, compared to the same period in 2025, primarily attributable to the following:

R&D exp enses increased by a pproxim ately $3.4 million for the three m onths ended June 30, 2026, compared to the same period in 2025, primarily attributable to the following:

an increase in clinical trial expense of approximately $2.2 million, primarily due to increased alisertib study activity;

an increase in internal R&D expense of approximately $0.7 million, primarily due to increased employee compensation.

an increase in internal R&D expense of approximately $1.2 million, primarily due to increased employee compensation, including the hiring of a new executive.

Other income (expenses):

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Interest expense

Other income (expense)

Interest income:

For the three mon ths ended June 30, 2026, we recognized approximately $0.8 million in interest income, compared to approximately $1.0 million of interest income for the three months ended June 30, 2025.

The decrease in interest income was primarily related to a lower cash balance and lower interest rates.

Interest expense:

For the three months ended

March 31, 2026

, we recognized approximately $0.7 million in interest expense, compared to approximately $2.2 million of interest expense for the three m onths ended

March 31, 2025

The decrease in interest expense was primarily related to a lower debt balance as we continue paying down our debt principal.

For the three months ended June 30, 2026, we recognized approximately $0.2 million in interest expense, compared to approximately $1.8 million of interest expense for the three months ended June 30, 2025.

The decrease in interest expense was primarily related to a lower debt balance as we paid down our debt principal in the three months ended June 30, 2026.

Other income:

For the three months ended

March 31, 2026

, we recognized approximately

million in other income, compared to approximately

million of other income for the three months ended

March 31, 2025

The decrease in other income was primarily due to unfavorable exchange rates in Euro-denominated transactions.

For the three months ended June 30, 2026, we recognized approximately $0.0 million in other income, compared to approximately $0.4 million of other income for the three months ended June 30, 2025.

The decrease in other income was primarily due to the termination of subleases as of March 31, 2026 and unfavorable exchange rates in Euro-denominated transactions.

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

Total revenue:

Total revenue for the six months ended June 30, 2026 was approximately $101.3 million, compared to $98.4 million for the six months ended June 30, 2025.

This increase in total revenue was due to an increase in product revenue, net of approximately $3.2 million, partially offset by a $0.4 million decrease in royalty revenue.

Product revenue, net:

Product revenue, net was approximately $95.5 million for the six months ended June 30, 2026, compared to $92.3 million for the six months ended June 30, 2025.

This increase in product revenue, net, compared to the six months ended June 30, 2025, was primarily attributable to a 6.3% increase in bottles sold and an increase in selling price, partially offset by a greater deduction to gross revenue for variable consideration, primarily related to higher Medicaid related deductions.

Royalty revenue:

Royalty revenue was approximately $5.8 million and $6.2 million for the six months ended June 30, 2026 and 2025, respectively.

The decrease of $0.4 million was due to lower sales by our international partners.

Cost of sales:

Cost of sales was approximately $22.9 million for each of the six months ended June 30, 2026 and 2025.

Cost of sales was relatively consistent with slightly higher year-over-year domestic sales, partially offset by lower sales to our international partners.

Selling, general and administrative expenses:

SG&A expenses were approximately $36.0 million for the six months ended June 30, 2026, compared to approximately $35.7 million for the six months ended June 30, 2025.

SG&A expenses for the six months ended June 30, 2026 and 2025 were as follows:

Selling, general, and administrative expenses

For the Six Months Ended

(in thousands)

Payroll and related costs

Provision for credit loss recovery

Professional fees and expenses

Travel and meetings

Facilities and equipment costs

Stock-based compensation

SG& A expenses increased by approximately $0.3 million for the six months ended June 30, 2026 , compared to the same period in 2025 , primarily attributable to the following:

an increase in payroll and related cost s of $0.7 million due primarily to increases in employee compensation;

an increase in professional fees and expenses of approximately $0.3 million, primarily related to an increase of $1.3 million to marketing and market access costs, partially offset by a $0.9 million reversal of a previously recorded legal accrual related to the AstraZeneca litigation.

Partially offset by:

a decrease in facilities and equipment costs of approximately $0.9 million, related to reduced rent as we amended our Los Angeles office lease with less space and terminated our San Francisco office lease as of March 31, 2026.

Research and development expenses:

R&D expenses were approxi mately $38.7 million for the six months ended June 30, 2026, compared to approximately $29.3 million for the six months ended June 30, 2025.

R&D expenses for the six months ended June 30, 2026 and 2025 were as follows:

Research and development expenses

For the Six Months Ended

(in thousands)

Clinical trial expense

Consultant and contractors

Stock-based compensation

R&D exp enses increased by a pproxim ately $9.4 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily attributable to the following:

an increase in clinical trial expense of approximately $7.4 million, primarily due to increased alisertib study activity;

an increase in internal R&D expense of approximately $2.0 million, primarily due to increased employee compensation including the hiring of a new executive;

an increase in stock-based compensation of approximately $0.1 million, primarily due to the hiring of a new executive, our annual employee stock grants and a higher stock price.

Other income (expenses):

Other income (expenses)

For the Six Months Ended

(in thousands)

Interest income

Interest expense

Other income (expense)

Interest income:

For the six months ended June 30, 2026, we recognized approximately $1.8 million in interest income, compared to approximately $2.1 million of interest income for the six months ended June 30, 2025.

Th e decrease in interest income was primarily related to lower cash balances and lower interest rates.

Interest expense:

For the six months ended June 30, 2026, we recognized approximately $0.9 million in interest expense, compared to approximately $4.0 million of interest expense for the six months ended June 30, 2025.

The decrease in interest expense was primarily related to a lower debt balance as we paid down our debt principal in the three months ended June 30, 2026.

Other income:

For the six months ended June 30, 2026, we recognized approximately $0.1 million in other income, compared to approximately $0.8 million of other income for the six months ended June 30, 2025.

The decrease in other income was primarily due to the termination of subleases as of March 31, 2026 and unfavorable exchange rates in Euro-denominated transactions.

Liquidity and Capital Resources

The following table, which summarizes our liquidity and capital resources as of March 31, 2026 and December 31, 2025 and for the three months ended March 31, 2026 and 2025, is intended to supplement the more detailed discussion that follows:

The following table, which summarizes our liquidity and capital resources as of June 30, 2026 and December 31, 2025 and for the six months ended June 30, 2026 and 2025, is intended to supplement the more detailed discussion that follows:

Liquidity and capital resources (in thousands)

March 31, 2026

June 30, 2026

December 31, 2025

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Stockholders’ equity

Three Months Ended

March 31, 2026

March 31, 2025

Six Months Ended

June 30, 2026

June 30, 2025

Cash provided by (used in):

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Operating Activities:

Cash provided by operating activities for the three months ended March 31, 2026 was $15.4 million and consisted of net loss of approximately $3.8 million, adjusted for non-cash items of approximately $4.5 million, which included stock-based compensation of $1.9 million and depreciation and amortization of $2.6 million.

Total changes in cash flows from operations were due to an increase in working capital, primarily related to a decrease in accounts receivable of $27.3 million, primarily due to royalty receipts related to China sales and an increase in accounts payable of $3.1 million, partially offset by decrease in accrued expenses and other of approximately $11.7 million related primarily to the payment of royalties, an increase in inventory of $3.2 million related to a receipt of raw material inventory, a decrease in operating lease assets and liabilities, net, of $0.6 million and a decrease of post-marketing commitment liability of $0.5 million.

Cash provided by operating activities for the three months ended March 31, 2025 was $3.6 million and consisted of net income of approximately $3.0 million, adjusted for non-cash items of approximately $5.0 million, which included stock-based compensation of $2.0 million, depreciation and amortization of $2.8 million and provision for credit loss of $0.2 million.

Total changes in cash flows from operations were due to an increase in working capital, primarily related to a decrease in accrued expenses and other of approximately $9.9 million, a decrease in operating lease assets and liabilities, net, of $0.4 million and a decrease of post-marketing commitment liability of $0.4 million and an increase in prepaid and other expenses of $0.8 million, partially offset by a decrease in accounts receivable of approximately $6.6 million and an increase in acc ounts payable of $0.5 million.

Cash provided by operating activities for the six months ended June 30, 2026 was $17.0 million and consisted of net income of approximately $4.4 million, adjusted for non-cash items of approximately $8.9 million, which included stock-based compensation of $3.8 million and depreciation and amortization of $5.1 million.

Total changes in cash flows from operations were due to an increase in working capital, primarily related to a decrease in accounts receivable of $19.6 million, primarily due to royalty receipts related to China sales, partially offset by an increase in inventory of $7.8 million related to the purchase of raw material inventory, a decrease in accrued expenses and other of approximately $5.0 million related primarily to the payment of royalties and a $0.9 million reversal of a previously recorded legal accrual, a decrease in accounts payable of $2.0 million and a decrease of post-marketing commitment liability of $1.0 million.

Cash provided by operating activities for the six months ended June 30, 2025 was $17.7 million and consisted of net income of approximately $8.8 million, adjusted for non-cash items of approximately $9.1 million, which included stock-based compensation of $3.7 million, depreciation and amortization of $5.6 million and provision for credit loss recovery of $0.1 million.

Total changes in cash flows from operations were due to a slight decrease in working capital, primarily related to a decrease in accrued expenses and other of approximately $5.0 million, a decrease in operating lease assets and liabilities, net, of $0.9 million and a decrease of post-marketing commitment liability of $1.1 million, partially offset by a decrease in prepaid and other expenses of $0.5 million, a decrease in accounts receivable of approximately $6.3 million and a decrease in inventory of $0.1 million.

Investing Activities:

Cash provided by investing activities for the three months ended March 31, 2026 was approximately $2.5 million, compared to net cash provided by investing activities of approximately $1.5 million for the same period in 2025 .

Cash provided by investing activities for the three months ended March 31, 2026 was primarily due to the maturity of available-for-sale securities of approximately $27.3 million, partially offset by the purchase of available-for-sale securities of approximately $24.9 million.

Cash provided by investing activities for the three months ended March 31, 2025 was approximately $1.5 million.

Cash provided by investing activities was primarily due to maturity of available-for-sale securities of approximately $14.1 million, partially offset by the purchase of available-for-sale securities of approximately $12.5 million.

Cash provided by investing activities for the six months ended June 30, 2026 was approximately $10.4 million, compared to net cash used in investing activities of approximately $9.7 million for the same period in 2025.

Cash provided by investing activities for the six months ended June 30, 2026 was primarily due to the maturity of available-for-sale securities of approximately $56.9 million, partially offset by the purchase of available-for-sale securities of approximately $46.4 million.

Financing Activities:

Cash used in financing activities for the three months ended March 31, 2026 and 2025 was approximately $11.3 million, including $11.1 million related to the payment of principal and $0.2 million related to exit fees, on our debt with Athyrium.

Athyrium Note Purchase Agreement:

We issued senior notes for an aggregate principal amount of $100.0 million pursuant to the note purchase agreement dated July 23, 2021 by us, and our subsidiary, and Athyrium, as Administrative Agent, and certain other investor parties (the “Note Purchase Agreement”), with an initial maturity date of July 23, 2026 (the “Athyrium Notes”).

The Athyrium Notes were issued for face amount of $100.0 million, net of an original issue discount of $1.5 million.

The Athyrium Notes also require a 2.0% exit payment to be made on each payment of principal.

The borrowings under the Athyrium Notes, together with cash on hand, were used to repay our outstanding indebtedness, including the applicable exit and prepayment fees owed to lenders under our prior credit facility with Oxford.

The Athyrium Notes are secured by substantially all of our assets.

We incurred $1.9 million of deferred financing costs with the initial borrowing of the Athyrium Notes.

Interest on the Athyrium Notes was calculated in part based on the Secured Overnight Financing Rate (“SOFR”), which replaced the “London Interbank Offering Rate” as the floating benchmark for interest rate calculations applicable to the Athyrium Notes pursuant to the terms of the Third Amendment to the Note Purchase Agreement dated as of September 16, 2022 (the “Third Amendment”).

Following the effectiveness of the Third Amendment, the Athyrium Notes bore interest at an annual rate equal to the sum of (a) eight percent (8.00%) plus (b) the lesser of (i) the sum of (x) three-month term SOFR for an interest period of three months plus (y) 0.26161% (26.161 basis points) and (ii) three and one-half of one percent (3.50%) per annum.

Interest is payable quarterly on the last business day of March, June, September and December each year.

As of March 31, 2026 , the effective interest rate for the loan was 12.99%.

As of March 31, 2026, we may prepay the outstanding principal balance of the notes, in whole or in part, without premium or penalty.

As of March 31, 2026, the principal balance outstanding under the Athyrium Notes was $11.1 million and represented all of our debt.

We were in compliance with all applicable covenants under the Athyrium Notes as of March 31, 2026.

On May 4, 2026, we paid $11.5 million under the Note Purchase Agreement, ahead of the scheduled maturity date of July 23, 2026.

This payment reduced the principal balance outstanding under the Athyrium Notes to zero and terminated all of our remaining obligations under the Note Purchase Agreement, other than customary continuing indemnification obligations.

Cash used in financing activities for the six months ended June 30, 2026 was approximately $22.6 million, including $22.2 million related to the payment of principal and $0.4 million related to exit fees, on our debt with Athyrium.

Our Athyrium Note was paid in full as of June 30, 2026.

Cash used in financing activities for the six months ended June 30, 2025 was approximately $22.5 million, including $22.2 million related to the payment of principal and $0.4 million related to exit fees, on our debt with Athyrium, partially offset by $0.1 million in proceeds from shares issued under employee stock plans.

Current and Future Financing Needs:

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For example, we in-licensed alisertib from Takeda in 2022 and assumed sole responsibility for its global development and commercialization.

These efforts will require funding in addition to the cash and cash equivalents totaling approximately $36.2 million and approximately $65.4 million in marketable securities available at March 31, 2026 .

These efforts will require funding in addition to the cash and cash equivalents totaling approximately $36.5 million and approximately $57.4 million in marketable securities available at June 30, 2026.

While our condensed consolidated financial statements have been prepared on a going concern basis, we may incur significant losses in the future and will need to generate significant revenue to sustain operations and successfully commercialize neratinib and develop alisertib.

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The outcome of these matters cannot be predicted at this time.

We believe that our existing cash and cash equivalents and marketable securities as of March 31, 2026, and proceeds that will become available to us through product sales and sub-license payments are sufficient to satisfy our operating cash and capital needs for at least one year after the filing of this Quarterly Report.

We believe that our existing cash and cash equivalents and marketable securities as of June 30, 2026, and proceeds that will become available to us through product sales and sub-license payments are sufficient to satisfy our operating cash and capital needs for at least one year after the filing of this Quarterly Report.

Non-GAAP Financial Measures

In addition to our operating results, as calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) we use certain non-GAAP financial measures when planning, monitoring, and evaluating our operational performance.

The following table presents our net (loss) income and net (loss) income per share, as calculated in accordance with GAAP, as adjusted to remove the impact of stock-based compensation.

For the three months ended March 31, 2026 , stock-based compensation represented approximately 5.0% of our operating expenses, compared to 6.4% for the same respective period in 2025 , in each case excluding cost of s ales.

The following table presents our net income and net income per share, as calculated in accordance with GAAP, as adjusted to remove the impact of stock-based compensation.

For the three months ended June 30, 2026, stock-based compensation represented approximately 5.4% of our operating expenses, compared to approximately 4.9% for the same period in 2025, in each case excluding cost of sales.

For the six months ended June 30, 2026, stock-based compensation represented approximately 5.2% of our operating expenses, compared to approximately 5.6% for the same period in 2025, in each case excluding cost of sales.

Our management believes that these non-GAAP financial measures are useful to enhance understanding of our financial performance, are more indicative of our operational performance and facilitate a better comparison among fiscal periods.

These non-GAAP financial measures are not, and should not be viewed as, substitutes for GAAP reporting measures.

Reconciliation of GAAP Net (Loss) Income to Non-GAAP Adjusted Net (Loss) Income and

GAAP Net (Loss) Income Per Share to Non-GAAP Adjusted Net (Loss) Income Per Share

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income and

GAAP Net Income Per Share to Non-GAAP Adjusted Net Income Per Share

(in thousands except share and per share data)

For the Three Months Ended March 31,

GAAP net (loss) income

For the Three Months Ended June 30,

For the Six Months Ended June 30,

GAAP net income

Stock-based compensation -

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Research and development (2)

Non-GAAP adjusted net (loss) income

GAAP net (loss) income per share—basic

Non-GAAP adjusted net income

GAAP net income per share—basic

Adjustment to net income (as detailed above)

Non-GAAP adjusted basic net (loss) income per share

GAAP net (loss) income per share—diluted

Adjustment to net (loss) income (as detailed above)

Non-GAAP adjusted diluted net (loss) income per share

Non-GAAP adjusted basic net income per share

GAAP net income per share—diluted

Adjustment to net income (as detailed above)

Non-GAAP adjusted diluted net income per share

(1) To reflect a non-cash charge to operating expense for selling, general, and administrative stock-based compensation.

(2) To reflect a non-cash charge to operating expense for research and development stock-based compensation.

(3) Non-GAAP adjusted basic net (loss) income per share was calculated based on 50,845,130 and 49,595,697 weighted-average shares of common stock outstanding for the three months ended March 31, 2026 and 2025, respectively.

(4) Potentially dilutive common stock equivalents (stock options restricted stock units and warrants) were not included in this non-GAAP adjusted diluted net loss per share for the three months ended March 31, 2026, as these shares would be considered anti-dilutive.

(5) Non-GAAP adjusted diluted net income per share was calculated based on 49,906,341 weighted-average shares of common stock outstanding for the three months ended March 31, 2025.

(3) Non-GAAP adjusted basic net income per share was calculated based on 50,939,946 and 50,892,800 weighted-average shares of common stock outstanding for the three and six months ended June 30, 2026, respectively.

(4) Non-GAAP adjusted basic net income per share was calculated based on 49,700,217 and 49,648,246 weighted-average shares of common stock outstanding for the three and six months ended June 30, 2025, respectively.

(5) Non-GAAP adjusted diluted net income per share was calculated based on 52,596,589 and 52,278,925 weighted-average shares of common stock outstanding for the three and six months ended June 30, 2026, respectively.

(6) Non-GAAP adjusted diluted net income per share was calculated based on 50,144,704 and 50,003,709 weighted-average shares of common stock outstanding for the three and six months ended June 30, 2025, respectively.

Off-Balance Sheet Arrangements

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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