RIGEL PHARMACEUTICALS INC 10-K

Item 8. Financial Statements and Supplementary Data INDEX TO FINANCIAL STATEMENTS Rigel Pharmaceuticals, Inc. Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 99 Balance Sheets 101 Statements of Operations 102 Statements of Comprehensive Income (Loss) 103 Statements of Stockholders’ Equity (Deficit) 101 Statements of Cash Flows 105 Notes to Financial Statements 106 Supplementary Data 135 98 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Rigel Pharmaceuticals, Inc. Opinion on the Financial Statements We have audited the accompanying balance sheets of Rigel Pharmaceuticals, Inc. (the Company) as of December 31, 2025 and 2024, the related statements of operations, comprehensive income (loss), stockholders’ equity (deficit) and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 3, 2026 expressed an unqualified opinion thereon. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates. 99 Table of Contents Product Sales Allowances and Discounts Description of the Matter As described in Note 1 to the financial statements, revenue from product sales is recorded net of adjustments for estimated government-mandated and/or privately-negotiated rebates and chargebacks, distribution fees, estimated product returns, and other deductions. Provisions for these adjustments are recorded in the period in which the related revenue is recorded and are presented either as a reduction of accounts receivable or as an accrued liability in the Company’s balance sheet. As of December 31, 2025, the Company has recorded net liabilities for product sales allowances and discounts of $27.7 million. Auditing product sales allowances and discounts involved evaluation of management’s subjective judgments regarding the reasonableness of estimated payor and channel mix applied to product sales during the period. These estimates are based on available customer and payor data received from specialty pharmacies and distributors and reflect management’s judgments regarding adjustments to historical trends. The Company has a limited history upon which to base such estimates, and changes in the estimated payor and channel mix can have a material effect on the amount of variable consideration recognized. How We Addressed the Matter in Our Audit We tested the Company’s internal controls over the process for estimating and recording product sales allowances and discounts. Our testing included controls over management’s review of significant assumptions, such as payor mix and channel mix, and other inputs, which include product sold, contractual terms and discount rates, used in the estimates. To test the Company's provisions for allowances and discounts, our audit procedures included, among others, evaluating the methodologies and assumptions used and the underlying data used by the Company. We evaluated the assumptions used by management against historical trends, evaluated the change in estimated accruals from prior periods, and assessed the historical accuracy of the Company’s estimates against actual results over material ending accrual balances. We performed substantive analytical procedures on material ending accrual balances by assessing whether the accrued balance is reasonable relative to historical payment lag and sales activity. /s/ Ernst & Young LLP We have served as the Company’s auditor since 1998. San Francisco, California March 3, 2026 100 Table of Contents RIGEL PHARMACEUTICALS, INC. BALANCE SHEETS (In thousands, except share and per share amounts) As of December 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 40,580 $ 56,746 Short-term investments 114,375 20,575 Accounts receivable, net 51,763 41,615 Inventories 11,506 6,002 Prepaid and other current assets 21,942 10,165 Total current assets 240,166 135,103 Intangible assets, net 24,748 27,100 Deferred income tax asset 245,852 — Operating lease right-of-use assets 920 246 Other assets 1,908 1,527 Total assets $ 513,594 $ 163,976 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 7,191 $ 3,339 Accrued compensation 11,914 10,139 Accrued research and development 5,524 4,073 Acquisition related liabilities 5,000 — Revenue reserves and refund liability 27,716 26,440 Loans payable, net, current portion 29,812 7,272 Other current liabilities 11,466 11,751 Lease liabilities, current portion 614 285 Total current liabilities 99,237 63,299 Acquisition-related liabilities — 5,000 Long-term portion of lease liabilities 395 — Long-term portion of loans payable, net 22,482 52,408 Other long-term liabilities — 39,981 Total liabilities 122,114 160,688 Commitments Stockholders’ equity: Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; none issued and outstanding as of December 31, 2025 and 2024 — — Common stock, $ 0.001 par value; 400,000,000 shares authorized; 18,310,934 and 17,710,216 shares issued and outstanding as of December 31, 2025 and 2024, respectively 18 18 Additional paid-in capital 1,414,322 1,393,325 Accumulated other comprehensive income 181 10 Accumulated deficit ( 1,023,041 ) ( 1,390,065 ) Total stockholders’ equity 391,480 3,288 Total liabilities and stockholders’ equity $ 513,594 $ 163,976 See Accompanying Notes to Financial Statements. 101 Table of Contents RIGEL PHARMACEUTICALS, INC. STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended December 31, 2025 2024 2023 Revenues: Product sales, net $ 231,983 $ 144,902 $ 104,294 Contract revenues from collaborations 62,034 34,376 11,488 Government contracts 265 — 1,100 Total revenues 294,282 179,278 116,882 Costs and expenses: Cost of product sales 19,621 18,647 7,110 Research and development 33,295 23,380 24,522 Selling, general and administrative 115,900 113,059 105,741 Total costs and expenses 168,816 155,086 137,373 Income (loss) from operations 125,466 24,192 ( 20,491 ) Interest income 3,681 2,092 2,272 Interest expense ( 7,320 ) ( 7,918 ) ( 6,872 ) Income (loss) before income taxes 121,827 18,366 ( 25,091 ) (Benefit from) provision for income taxes ( 245,197 ) 881 — Net income (loss) $ 367,024 $ 17,485 $ ( 25,091 ) Net income (loss) per share Basic $ 20.40 $ 0.99 $ ( 1.44 ) Diluted $ 19.48 $ 0.99 $ ( 1.44 ) Weighted average shares used in computing net income (loss) per share Basic 17,987 17,579 17,401 Diluted 18,840 17,687 17,401 See Accompanying Notes to Financial Statements. 102 Table of Contents RIGEL PHARMACEUTICALS, INC. STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) Year Ended December 31, 2025 2024 2023 Net income (loss) $ 367,024 $ 17,485 $ ( 25,091 ) Other comprehensive income: Net unrealized gain on short-term investments 171 2 161 Comprehensive income (loss) $ 367,195 $ 17,487 $ ( 24,930 ) See Accompanying Notes to Financial Statements. 103 Table of Contents RIGEL PHARMACEUTICALS, INC. STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (In thousands, except number of shares) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Equity (Deficit) Shares Amount Balance as of January 1, 2023 17,339,816 $ 17 $ 1,368,979 $ ( 153 ) $ ( 1,382,459 ) $ ( 13,616 ) Net loss — — — — ( 25,091 ) ( 25,091 ) Net change in unrealized gain on short-term investments — — — 161 — 161 Issuance of common stock upon exercise of options and participation in Purchase Plan 99,196 — 1,049 — — 1,049 Issuance of common stock upon vesting of restricted stock units (RSUs) 43,501 — — — — — Stock-based compensation expense — — 8,853 — — 8,853 Balance as of December 31, 2023 17,482,513 17 1,378,881 8 ( 1,407,550 ) ( 28,644 ) Net loss — — — — 17,485 17,485 Net change in unrealized gain on short-term investments — — — 2 — 2 Issuance of common stock upon exercise of options and participation in Purchase Plan 158,795 1 1,963 — — 1,964 Issuance of common stock upon vesting of RSUs 68,908 — — — — — Stock-based compensation expense — — 12,481 — — 12,481 Balance as of December 31, 2024 17,710,216 18 1,393,325 10 ( 1,390,065 ) 3,288 Net income — — — — 367,024 367,024 Net change in unrealized gain on short-term investments — — — 171 — 171 Issuance of common stock upon exercise of options, net of shares withheld, and participation in Purchase Plan 457,027 — 8,101 — — 8,101 Issuance of common stock upon vesting of RSUs 143,691 — — — — — Stock-based compensation expense — — 12,896 — — 12,896 Balance as of December 31, 2025 18,310,934 $ 18 $ 1,414,322 $ 181 $ ( 1,023,041 ) $ 391,480 See Accompanying Notes to Financial Statements. 104 Table of Contents RIGEL PHARMACEUTICALS, INC. STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2025 2024 2023 Operating activities Net income (loss) $ 367,024 $ 17,485 $ ( 25,091 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Stock-based compensation expense 12,711 12,393 8,806 (Gain) loss on sale and disposal of fixed assets — ( 79 ) 266 Depreciation and amortization 2,415 2,228 1,238 Deferred income tax benefit ( 245,852 ) — — Release of cost share liability ( 39,981 ) — — Net amortization of discount on short-term investments and term loans ( 1,150 ) ( 709 ) ( 479 ) Changes in assets and liabilities: Accounts receivable, net ( 10,148 ) ( 11,065 ) 9,770 Inventories ( 5,635 ) 764 1,172 Prepaid and other current and non-current assets ( 11,848 ) ( 3,440 ) 2,054 Right-of-use assets ( 674 ) 615 1,069 Accounts payable 3,852 ( 3,803 ) ( 366 ) Accrued compensation 1,775 1,463 ( 190 ) Accrued research and development 1,451 560 ( 4,195 ) Revenue reserves and refund liability 1,276 10,756 3,539 Other current and long-term liabilities ( 285 ) 4,995 ( 2,208 ) Lease liability 724 ( 692 ) ( 1,128 ) Net cash provided by (used in) operating activities 75,655 31,471 ( 5,743 ) Investing activities Maturities of short-term investments 61,129 39,700 41,650 Purchases of short-term investments ( 153,494 ) ( 35,272 ) ( 31,206 ) Capital expenditures — ( 36 ) — Payments for acquisition of intangible assets — ( 360 ) ( 15,000 ) Proceeds from sale of property and equipment — 98 259 Net cash (used in) provided by investing activities ( 92,365 ) 4,130 ( 4,297 ) Financing activities Net proceeds from term loan financing — — 19,950 Principal payments of term loans ( 7,500 ) — — Net proceeds from issuance of common stock from equity plans 8,101 1,964 1,049 Closing purchase price payment related to asset acquisition — ( 10,000 ) — Cost share payments to a collaboration partner — ( 3,605 ) ( 2,632 ) Net cash provided by (used in) financing activities 601 ( 11,641 ) 18,367 Net (decrease) increase in cash, cash equivalents and restricted cash ( 16,109 ) 23,960 8,327 Cash and cash equivalents at beginning of period 56,746 32,786 24,459 Cash, cash equivalents, and restricted cash at end of period $ 40,637 $ 56,746 $ 32,786 Supplemental disclosure of cash flow information Interest paid $ 6,573 $ 7,039 $ 5,848 Income taxes paid 1,063 331 81 Increase in right-of-use assets and lease liability 1,220 — — Acquisition-related liabilities 5,000 5,000 — See Accompanying Notes to Financial Statements. 105 Table of Contents RIGEL PHARMACEUTICALS, INC. NOTES TO FINANCIAL STATEMENTS In this Annual Report on Form 10-K, “Rigel,” “we,” “us” and “our” refer to Rigel Pharmaceuticals, Inc. and “common stock” refers to Rigel’s common stock, par value $0.001 per share. 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business We are a biotechnology company dedicated to developing and providing novel therapies that significantly improve the lives of patients with hematologic disorders and cancer. We focus on products that address signaling pathways that are critical to disease mechanisms. TAVALISSE (fostamatinib disodium hexahydrate) is our first FDA-approved product and is the only approved oral SYK inhibitor for the treatment of adult patients with chronic ITP who have had an insufficient response to a previous treatment. The product is also commercially available in Europe and the UK (as TAVLESSE), and in Japan, Korea, Canada and Israel (as TAVALISSE) for the treatment of chronic ITP in adult patients. REZLIDHIA (olutasidenib) is our second FDA-approved product indicated for the treatment of adult patients with R/R AML with a susceptible IDH1 mutation as detected by an FDA-approved test. W e in-licensed REZLIDHIA from Forma with exclusive, worldwide rights for its development, manufacturing and commercialization, pursuant to a license and transition services agreement entered in July 2022. GAVRETO (pralsetinib) is our third FDA-approved product which we began commercializing in June 2024. GAVRETO is a once daily, small molecule, oral, kinase inhibitor of wild-type RET and oncogenic RET fusions. GAVRETO is approved by the FDA for the treatment of adult patients with metastatic RET fusion-positive NSCLC as detected by an FDA-approved test. GAVRETO is also approved under accelerated approval based on overall response rate and duration response rate, for the treatment of adult and pediatric patients 12 years of age and older with advanced or metastatic RET fusion-positive thyroid cancer who require systemic therapy and who are radioactive iodine-refractory (if radioactive iodine is appropriate). We acquired the rights to research, develop, manufacture and commercialize GAVRETO in the US from Blueprint pursuant to an asset purchase agreement entered in February 2024. Our development pipeline includes R289, our dual IRAK1/4 inhibitor program, which is being advanced in an open-label, Phase 1b study to determine the safety, tolerability and preliminary efficacy of the drug in patients with lower-risk MDS who are relapsed, refractory or resistant to prior therapies. To expand our evaluation of olutasidenib in other disease areas with IDH1 mutations, we have strategic development collaborations with MDACC and with CONNECT. We also have a RIPK1 inhibitor program in clinical development that is being led by our partner Lilly. Basis of Presentation The accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles (US GAAP). Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative US GAAP included in the Accounting Standards Codification (ASC), and Accounting Standards Update (ASU) issued by the Financial Accounting Standards Board (FASB). Reclassifications We previously presented property and equipment and deferred revenue on the face of the balance sheet. Property and equipment, net, has been reclassified and is now reported within other assets, and deferred revenue has been reclassified and is now reported within other current liabilities. Prior period financial information has been reclassified to conform to the current period presentation. Reverse Stock Split We filed with the Secretary of State of the State of Delaware a certificate of amendment to our Amended and Restated Certificate of Incorporation, to effect a 1-for- 10 reverse stock split, effective June 27, 2024. As a result of the 106 Table of Contents reverse stock split, every ten issued and outstanding shares of our common stock were automatically combined into one issued and outstanding share of common stock. Accordingly, an amount equal to the par value of the decreased shares resulting from the reverse stock split was reclassified from common stock to additional paid-in capital on the balance sheet and statement of changes in stockholders’ equity (deficit). No fractional shares were issued in connection with the reverse stock split. Stockholders who otherwise would be entitled to receive fractional shares of common stock were entitled to receive the cash value equal to the fraction to which the stockholder would otherwise be entitled, multiplied by the closing price of the common stock as reported by Nasdaq on the last trading day prior to the effective date of the split. As a result of the reverse stock split, proportionate adjustments were made to the number of shares underlying (and as applicable, the exercise or conversion prices of) our outstanding equity awards and to the number of shares of common stock issuable under our equity incentive plans. The reverse stock split did not change the par value of our common stock, which remains $ 0.001 , or the authorized number of shares of our common stock. All share amounts and per share amounts disclosed in this Annual Report on Form 10-K have been adjusted to reflect the reverse stock split on a retroactive basis for the respective periods presented. Liquidity As of December 31, 2025, we had approximately $ 155.0 million in cash, cash equivalents and short-term investments. Since inception, we have financed our operations primarily through sales of equity securities, debt financing arrangement, contract payments under our collaboration agreements and from product sales. Based on our current operating plan, we believe that our existing cash, cash equivalents, and short-term investments will be sufficient to fund our expenses and capital expenditure requirements through at least the next 12 months from the date of issuance of this Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make certain judgments, estimates and assumptions that could affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Critical accounting estimates and assumptions made by management include those relating to estimates around our product sales allowances and discounts; estimates around accounting for collaboration arrangements; and estimates around research and development accruals. Other accounting estimates also include but not limited to allowance for credit losses, inventory reserves, estimated general accruals, valuation of our stock option awards and probability of achievement of corporate performance-based milestones for our performance-based stock option awards, realizability of deferred tax asset, estimated useful lives of long-lived assets, and any potential impairment loss. We base our estimates and assumptions on historical experience and on various other assumptions we believe to be applicable, and evaluate them on an ongoing basis to ensure they remain reasonable under current conditions. Actual results could differ significantly from those estimates, which could have a material impact on our business, results of operations, and financial condition. Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM), or decision making-group, in deciding how to allocate resources and in assessing performance. Our CODM is our chief executive officer. We view our operations and manage our business as one operating segment. See “Note 15 – Segment Information” for further details. Revenue Recognition We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (ASC 606), when a customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine whether arrangements are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy our performance obligation. We apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception, once the contract is determined to be within the scope of this new guidance, we assess the goods or services promised within each contract and identify, as a performance obligation, and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the 107 Table of Contents transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Product Sales Revenues from product sales are recognized when our customers obtain control of our product, which occurs at a point in time upon delivery. Our specialty distributors resell our products to specialty pharmacy providers, health care providers, hospitals and clinics. In addition to distribution agreements with our specialty distributors, we also have arrangements with certain specialty pharmacy providers, in-office dispensing providers, group purchasing organizations, and government entities that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of our products. Under ASC 606, we are required to estimate the transaction price, including variable consideration that is subject to a constraint, in our contracts with our customers. Variable consideration is included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Revenue from product sales is recorded net of certain variable consideration which includes estimated government-mandated rebates and chargebacks, distribution fees, estimated product returns and other deductions. Provisions for returns and other adjustments are provided for in the period the related revenue is recorded. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from our estimates, we will adjust these estimates, which would affect net product revenue and earnings in the period such variances become known. The following are our significant categories of sales discounts and allowances: Sales Discounts . We provide certain customer a prompt payment discount that is explicitly stated in our contract. The sales discount is recorded as a reduction of revenue in the period the related product revenue is recognized. Product Returns. We offer our specialty distributors a right to return product purchased directly from us, which is principally based upon the product’s expiration date. Product return allowances are estimated and recorded at the time of sale. Government and Private Payor Rebates: We are subject to discount obligations under the state Medicaid programs and Manufacturer Discount Program (MDP). We estimate our Medicaid and MDP rebates based upon a range of possible outcomes that are probability-weighted for the estimated payor mix. We also have rebate program agreements with certain PBMs for certain product, pursuant to which rebates will be paid in accordance with the respective agreements. The rebate reserves are recorded in the same period the related revenue is recognized, resulting in a reduction of product revenue and related liability is recorded as revenue reserves within revenue reserves and refund liability in the balance sheet. Our liability for these rebates consists primarily of estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but remains in the distribution channel inventories at the end of each reporting period. Chargebacks and Discounts: Chargebacks for fees and discounts represent the estimated obligations resulting from contractual commitments to sell products to certain specialty pharmacy providers, in-office dispensing providers, group purchasing organizations, and government entities at prices lower than the list prices charged to our specialty distributors who directly purchase the product from us. These specialty distributors charge us for the difference between what they pay for the product and our contracted selling price to these specialty pharmacy providers, in-office dispensing providers, group purchasing organizations, and government entities. These reserves are established in the same period that the related revenue is recognized, resulting in a reduction of product revenue. Actual chargeback amounts are generally determined at the time of resale to the specialty pharmacy providers, in-office dispensing providers, group purchasing organizations, and government entities by our specialty distributors. The estimated obligations arising from these chargebacks and discounts are recorded as revenue reserves within revenue reserves and refund liability in the balance sheet. Co-Payment Assistance: We offer co-payment assistance to commercially insured patients meeting certain eligibility requirements. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that we expect to receive associated with product that has been recognized as revenue. 108 Table of Contents Contract Revenues from Collaborations In the normal course of business, we conduct research and development programs independently and in connection with our corporate collaborators, pursuant to which we license certain rights to our intellectual property to third parties. The terms of these arrangements typically include payment to us for a combination of one or more of the following: upfront license fees; development, regulatory and commercial milestone payments; product supply services; and royalties on net sales of licensed products. Upfront License Fees: If the license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenues from upfront license fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are bundled with other promises, we determine whether the combined performance obligation is satisfied over time or at a point in time. If the combined performance obligation is satisfied over time, we use judgment in determining the appropriate method of measuring progress for purposes of recognizing revenue from the up-front license fees. We evaluate the measure of progress each reporting period and, if necessary, adjust the measure of performance and related revenue recognition. For arrangements that require us to share in the development costs but to which we do not participate in the co-development work, the portion of the upfront fee attributed to our share in the future development costs is excluded from the transaction price. If such share in the development costs is payable beyond 12 months from the delivery of the corresponding license, a significant financing component is deemed to exist. If a significant financing component is identified, we adjust the transaction price by reducing the upfront fee by the net present value of our share in future development costs over the expected commitment period. Such discounted amount will be reported as a liability in the balance sheet, with a corresponding interest expense being accreted based on a discount rate applied over the expected commitment period. Development, Regulatory or Commercial Milestone Payments: At the inception of each arrangement that includes payments based on the achievement of certain development, regulatory and commercial or launch events, we evaluate whether the milestones are considered probable of being achieved and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within our or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until uncertainty associated with the approvals has been resolved. The transaction price is then allocated to each performance obligation, on a relative standalone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achieving such development and regulatory milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, and recorded as part of contract revenues from collaborations during the period of adjustment. Product Supply Services: Arrangements that include a promise for future supply of drug product for either clinical development or commercial supply at the licensee’s discretion are generally considered as options. We assess if these options provide a material right to the licensee and if so, they are accounted for as separate performance obligations. Sales-based Milestone Payments and Royalties: For arrangements that include sales-based royalties, including milestone payments based on the volume of sales, we determine whether the license is deemed to be the predominant item to which the royalties or sales-based milestones relate to and if such is the case, we recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Government Contracts Prior to issuance of Accounting Standards Update (ASU) 2025-10 , Accounting for Government Grants Received by Business Entities in December 2025 as discussed in more detail under “Recent Accounting Pronouncements” below, there was limited US GAAP accounting guidance for for-profit business entities that receives government assistance. We utilized other accounting standards, and have elected to analogize to International Financial Reporting Standards, specifically International Accounting Standards (IAS) 20, Accounting for Government Grants and Disclosures of Government Assistance. Following IAS 20, we account for government assistance as government contracts revenue within the statement of operations in the period when it is probable that we will receive the award, which is when we comply with the conditions associated with the award. Following the guidance of ASU 2021-10, Disclosures by Business Entities about 109 Table of Contents Government Assistance, we disclose the nature of the transactions and the related accounting policy used, the line items on the balance sheet and income statement that are affected by the transaction and the amounts applicable to each financial statement line item, and the significant terms and conditions of the transactions, including commitment and contingencies. See “Note 4 – Sponsored Research and License Agreements and Government Contracts” for further discussions of government assistance we received. Stock-based Compensation Share-based awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period, which is generally the vesting period of the respective award. We use the straight-line attribution method over the requisite employee service period for the entire award in recognizing stock-based compensation expense. We account for forfeitures as they occur. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model. The model requires management to make a number of assumptions including expected volatility, expected term, risk-free interest rate and expected dividends. We estimate volatility using the historical share price performance over the expected life of the option. We use historical data to determine the applicable expected term for each of the other option groups. The risk-free interest rate is based on US Treasury constant maturity rates with similar terms to the expected term of the options for each option group. The expected dividend yield is 0 % as we have not paid and do not expect to pay dividends in the future. We segregate option awards into the following three homogenous groups for the purpose of determining fair values of options: officers and directors, all other employees, and consultants. We grant performance-based stock options to purchase shares of our common stock which will vest upon the achievement of certain corporate performance-based milestones. We determine the fair values of these performance-based stock options using the Black-Scholes option pricing model at the date of grant. For the portion of the performance-based stock options of which the performance condition is considered probable of achievement, we recognize stock-based compensation expense on the related estimated grant date fair values of such options on a straight-line basis from the date of grant up to the date when we expect the performance condition will be achieved. For the performance conditions that are not considered probable of achievement at the grant date or upon re-evaluation at each reporting date, prior to the event actually occurring, we recognize the related stock-based compensation expense when the event occurs or when we can determine that the performance condition is probable of achievement. In those cases, we recognize the change in estimate at the time we determine the condition is probable of achievement (by recognizing stock-based compensation expense as cumulative catch-up adjustment as if we had estimated at the grant date that the performance condition would have been achieved) and recognize the remaining compensation cost up to the date when we expect the performance condition will be achieved, if any. The fair value of the RSU grant is based on the market price of our common stock on the date of grant. Accounts Receivable Accounts receivable are recorded net of customer allowances for prompt payment discounts and any allowance for doubtful accounts. We monitor the financial performance and creditworthiness of our customers so that we can properly assess and respond to changes in their credit profile. We have not historically experienced credit losses and no amounts were reserved for estimated losses as of the balance sheet dates presented. The following table summarizes the activity of our customer allowances for prompt payment discounts for the periods presented (in thousands): Year Ended December 31, 2025 2024 2023 Balance at the beginning of the year $ 246 $ 180 $ 136 Provision for prompt payment discount 1,470 1,035 686 Reduction in prompt payment discount ( 1,378 ) ( 969 ) ( 642 ) Balance at end of the year $ 338 $ 246 $ 180 110 Table of Contents Concentration of Credit Risk Financial instruments that potentially subject us to a concentration of credit risk are primarily cash, investment in debt securities and accounts receivable. All of our cash and investment in debt securities are maintained with financial institutions that management believes are creditworthy. By policy, we limit the concentration of credit risk by diversifying our investments among a variety of high credit-quality issuers. Due to the short-term nature of these investments, we believe we do not have a material exposure to credit risk arising from our investments. We have not historically experienced any significant credit losses related to these financial instruments and do not believe that we are exposed to any significant credit risk related to these instruments. Concentration of credit risk with respect to our accounts receivable is limited due to our small number of customers. Our accounts receivable consists mostly of outstanding invoices from our sale of our product to our customers. Accounts receivable may also include outstanding invoices from our collaboration partners with respect to the related sponsored research and license agreements and government contracts. As of December 31, 2025, 89 % of our accounts receivable are outstanding invoices to our customers related to product sales in the US, and the remaining 11 % are outstanding invoices from our collaboration partners, mainly Grifols. As of December 31, 2024, 81 % of our accounts receivable are outstanding invoices to our customers related to product sales in the US, and the remaining 19 % are outstanding invoices from our collaboration partners, mainly Dr. Reddy's and Grifols. See “Note 3 - Revenues” for summary of revenues from each of our customers and collaboration partners who individually accounted for 10% or more of the total net product sales and revenues from collaborations. Cash, Cash Equivalents and Short-Term Investments Our investment in debt securities consists of money market funds, US treasury bills, government- sponsored enterprise securities, and corporate bonds and commercial paper. All of our investment in debt securities are available-for-sale and are classified based on their maturities. We consider all highly liquid investments in debt securities with maturity of 90 days or less from the date of purchase to be cash equivalents. All other investments with maturity greater than 90 days from the date of purchase are classified as short-term investments. Unrealized gains (losses) are reported within the statements of stockholders’ equity (deficit) and comprehensive income (loss). The cost of securities sold is based on the specific identification method. We periodically evaluate our available-for-sale marketable debt securities for impairment. When the fair value of a marketable debt security is below its amortized cost, the amortized cost is reduced to its fair value if it is more likely than not that we are required to sell the impaired security before recovery of our amortized cost basis, or we have the intention to sell the security. If neither of these conditions are met, we determine whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recorded in other income (expense), net on the statements of operations. Impairment losses that are not credit-related are included in accumulated other comprehensive income (loss) in stockholders’ equity (deficit). Fair Value of Financial Instruments The carrying amounts of our financial instruments, including cash, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. The carrying value of our loans payable and other long-term debt approximates fair value based on management’s estimation that a current interest rate would not differ materially from the stated rate, or the discount rate applied. The fair value of our cash equivalents and short-term investments measured at fair value on a recurring basis and are categorized based upon the lowest level of significant input to the valuations. Assets and liabilities recorded at fair value in our financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market 111 Table of Contents participants would use in pricing an asset or liability. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows: • Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets at the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. The fair valued assets we hold that are generally included under this Level 1 are money market securities where fair value is based on publicly quoted prices. • Level 2 – Inputs, other than quoted prices included in Level 1, that are either directly or indirectly observable for the asset or liability through correlation with market data at the reporting date and for the duration of the instrument’s anticipated life. The fair valued assets we hold that are generally assessed under Level 2 included government-sponsored enterprise securities, US treasury bills and corporate bonds and commercial paper. We utilize third-party pricing services in developing fair value measurements where fair value is based on valuation methodologies such as models using observable market inputs, including benchmark yields, reported trades, broker/dealer quotes, bids, offers and other reference data. We use quotes from external pricing service providers and other on-line quotation systems to verify the fair value of investments provided by our third-party pricing service providers. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities and which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the reporting date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. We do not have fair valued assets classified under Level 3. Inventories and Cost of Product Sales Inventories are stated at the lower-of-cost or estimated net realizable value. We determine the cost of inventories using the standard cost method, which approximates actual cost, and is valued using the first-in, first-out method. Inventory costs primarily consist of APIs, third-party manufacturing costs and allocated internal overhead costs. We capitalize inventory costs when the product is approved by the FDA, or when based on management’s judgment, future commercialization was considered probable, and the future economic benefits are expected to be realized. Prior to FDA approval of a product, costs to purchase APIs including costs to manufacture a product are charged to research and development expense when incurred. Our physical inventories as of balance sheet dates include inventory quantities where costs have been previously charged to research and development expense since such costs were incurred prior to FDA approval of the product. We provide reserves for potential excess, dated or obsolete inventories based upon assumptions about future demand and market conditions, as well as product shelf life. Inventories that are not expected to be consumed beyond our normal operating cycle are classified as non-current inventories and included within other assets in the balance sheet. Advance payments to our contract manufacturers to manufacture APIs as well as APIs pending final release for commercial usage are classified as prepaid inventory and included within prepaid and other current assets in the balance sheet. Cost of product sales primarily consists of the cost of inventories sold, along with product shipping and handling expenses. It may also include the establishment or reversal of inventory reserves, determined based on management’s estimates of future demand, prevailing market conditions, and product shelf lives. In addition, cost of product sales includes amortization of intangible assets and royalty expenses. Property and Equipment Property and equipment included within other assets are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight‑line method over the estimated useful lives of the assets, which range from three to seven years . Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in statements of operations in the period realized. 112 Table of Contents Intangible Assets Intangible assets are amortized over the estimated useful life of the assets. We perform an impairment review of intangible assets whenever events or changes in business circumstances indicate the carrying amount of such asset may not be fully recoverable. If events or changes in circumstances suggest that the carrying amount of the intangible assets may not be recoverable, we will estimate the future cash flows expected to be generated from its use or eventual disposition. If the expected future undiscounted cash flows are less than the carrying amount of the asset, we will recognize an impairment loss based on the excess of the carrying amount over the fair value of such asset. Research and Development Expenses Research and development expenses include costs incurred to conduct research and development, including scientific personnel wages and associated employee benefits, research and development supplies and equipment, payments to collaborative clinical research partners, consulting fees and other various research and development related costs. We have various contracts with third parties related to our research and development activities, including strategic development collaborations. Costs incurred but not billed to us as of the end of the period are accrued. We make estimates of the amounts incurred in each period based on the information available to us and our knowledge of the nature of the contractual activities generating such costs. Clinical trial contract expenses are accrued based on units of activity. Expenses related to other research and development contracts, such as research contracts, toxicology study contracts and manufacturing contracts are estimated to be incurred generally on a straight-line basis over the duration of the contracts. Raw materials and study materials not related to an approved drug are charged to research and development expenses at the time of purchase. We make accounting estimates in determining the accrual balance in each reporting period. As actual costs become known, we adjust our accruals. Although we do not expect our estimates to be materially different from amounts actually incurred, such estimates for the status and timing of services performed relative to the actual status and timing of services performed may vary and could result in us reporting amounts that are too high or too low in any particular period. Variations in assumptions used to estimate accruals including, but not limited to, the number of patients enrolled, the rate of patient enrollment and the actual services performed may result in adjustments in research and development accruals in future periods. Changes in these estimates that result in material changes to our accruals could materially affect our financial condition and results of operations. Research and development expenses also include milestone payment obligations incurred prior to r egulatory approval of the product, which are accrued when the event requiring payment of the milestone occurs. Advertising Expense Advertising costs are expensed as incurred and are included within selling general and administrative expenses in the statements of operations. Advertising costs for the years ended December 31, 2025, 2024 and 2023 amounted to $ 2.3 million, $ 2.1 million, and $ 3.1 million, respectively. Leases We account for leases in accordance with ASU No. 2016-02 , Leases (Topic 842) . Topic 842 requires a lessee to determine if an arrangement is a lease or contains a lease at contract inception. Right-of-use lease assets represent the right to use the underlying asset for the lease term and the lease liability represents the obligation to make the lease payments arising from the lease. Right-of-use lease assets and lease liability are recognized at the commencement date based on the present value of future minimum lease payments over the term of the lease. The operating right-of-use lease asset may also include initial direct costs and prepaid lease payments less lease incentives. In measuring the present value of the future minimum lease payments, we generally use our incremental borrowing rate as our lease agreement do not provide an implicit borrowing rate and we deemed that our incremental borrowing rate would be the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term of the lease payments in a similar economic environment. If a lease includes options to extend the lease term, we do not assume the option will be exercised in the initial lease term assessment unless there is reasonable certainty that we will renew based on an assessment of economic factors present as of the lease commencement date. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for our operating leases is recognized on a straight-line basis over the lease term, subject to 113 Table of Contents any changes in the lease or expectations regarding the terms. Variable lease costs such as common area costs and property taxes are expensed as incurred. Income Taxes We use the asset and liability method to account for income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period the change is enacted. We evaluate the realizability of our deferred tax assets by assessing whether it is more likely than not that these assets will be recovered through future taxable income. If we determine that it is not more likely than not that some portion or all of the deferred tax assets will be realized, a valuation allowance is established to reduce the carrying amount to the expected realizable value. If sufficient positive evidence becomes available to allow us to reach a conclusion that a portion of the valuation allowance against the deferred tax assets may be reversed, the reversal would result in an income tax benefit for the quarterly and annual fiscal period in which we determine to release such valuation allowance. The assessment requires considerable management judgment and consideration of all available positive and negative evidence, including historical operating results and projections of future taxable income. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Improvements to Income Tax Disclosures , which enhance the annual disclosure requirements regarding the tax rate reconciliation and income taxes paid information. This update is effective for our fiscal year ended December 31, 2025, and may be adopted on a prospective or retrospective basis. Early adoption is permitted. We adopted this new guidance effective for annual income tax disclosures for the year ended December 31, 2025 on a retrospective basis. For further discussion, see “Note 14 – Income Taxes”. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. This guidance enhances expense disclosure requirements for a public business entity’s expenses by mandating detailed information regarding types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) contained in income statement expense categories. This guidance is effective for our annual reporting for the fiscal year ending December 31, 2027, and interim reporting periods starting with the fiscal year ending December 31, 2028, though early adoption is available. This guidance may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements. We are currently evaluating this guidance and assessing the potential impact on our financial statements and disclosures. In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets , introducing a practical expedient for credit loss measurement on accounts receivable and contract assets. This guidance is effective for our annual reporting period for the fiscal year ending December 31, 2026, including interim periods within such reporting period, though early adoption is available. While we continue evaluating adoption timing and impact of this guidance, we do not anticipate significant effects on our financial statements and disclosures. In December 2025, the FASB issued ASU 2025-10 , Accounting for Government Grants Received by Business Entities, which establishes the accounting and presentation for government grants received by a business entity. This guidance is for our annual reporting period for the fiscal year ending December 31, 2029, and related interim periods, though early adoption is available. Organizations may adopt this guidance using modified prospective, modified retrospective, or retrospective approaches. We are currently evaluating this guidance and assessing the potential impact on our financial statements and disclosures. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements to improve the guidance in Topic 270, Interim Reporting. The update provides clarifications aimed at improving interim disclosure requirement consistency and usability, incorporating a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. This guidance is effective for our interim reporting periods for the fiscal year ending December 31, 2028. We are currently evaluating the impact of adoption of this standard on our financial statements and disclosures. 114 Table of Contents Other recently issued accounting guidance not discussed in this Annual Report on Form 10-K are either not applicable or did not have, or are not expected to have, a material impact on us. 2. NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period and the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive securities include stock options, RSUs and shares issuable under our Employee Stock Purchase Plan (Purchase Plan). The dilutive effect of these potentially dilutive securities is reflected in diluted earnings per share using the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted earnings per share (in thousands except per share amounts): Year Ended December 31, 2025 2024 2023 EPS Numerator: Net income (loss) $ 367,024 $ 17,485 $ ( 25,091 ) EPS Denominator—Basic: Weighted-average common shares outstanding 17,987 17,579 17,401 EPS Denominator—Diluted: Weighted-average common shares outstanding 17,987 17,579 17,401 Dilutive effect of stock options, RSUs and shares under Purchase Plan 853 108 — Weighted-average shares outstanding and common stock equivalents 18,840 17,687 17,401 Net income (loss) per share Basic $ 20.40 $ 0.99 $ ( 1.44 ) Diluted $ 19.48 $ 0.99 $ ( 1.44 ) The potential shares of common stock that were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive are as follows (in thousands): Year Ended December 31, 2025 2024 2023 Stock options 1,448 3,391 3,411 RSUs 7 108 186 Total 1,455 3,499 3,597 115 Table of Contents 3 . REVENUES Revenues disaggregated by category were as follows (in thousands): Year Ended December 31, 2025 2024 2023 Product sales: Gross product sales $ 309,961 $ 209,924 $ 147,058 Discounts and allowances ( 77,978 ) ( 65,022 ) ( 42,764 ) Total product sales, net 231,983 144,902 104,294 Revenues from collaborations: Release of cost share liability 39,981 — — License revenue — 14,000 — Milestone revenue 3,000 — 75 Delivery of drug supplies, royalty and others 19,053 20,376 11,413 Total revenues from collaborations 62,034 34,376 11,488 Government contracts 265 — 1,100 Total revenues $ 294,282 $ 179,278 $ 116,882 Revenue from product sales is related to sales of our commercial products to our customers. For detailed discussions of our revenues from collaboration and government contracts, see “Note 4 – Sponsored Research and License Agreements and Government Contracts.” Our product sales revenue is net of chargebacks, discounts and fees, government and other rebates and returns. Of the total discounts and allowances from gross product sales for the years ended December 31, 2025, 2024 and 2023, $ 71.0 million, $ 64.0 million and $ 41.5 million, respectively, was accounted for as additions to revenue reserves and refund liability, and $ 7.0 million, $ 1.0 million and $ 1.3 million, respectively, as reductions in accounts receivable (as it relates to allowance for prompt pay discount) and prepaid and other current assets (as it relates to certain chargebacks and other fees that were prepaid) in the balance sheet. The following tables summarize the activities in chargebacks, discounts and fees, government and other rebates and returns that were accounted for revenue reserves and refund liability, for each of the periods presented (in thousands): Chargebacks, Discounts and Fees Government and Other Rebates Returns Total Balance as of January 1, 2025 $ 13,374 $ 8,343 $ 4,723 $ 26,440 Provision related to current period sales 55,327 19,032 2,530 76,889 Adjustment related to prior period sales ( 758 ) ( 3,084 ) ( 1,696 ) ( 5,538 ) Credit or payments made during the period ( 55,424 ) ( 13,902 ) ( 749 ) ( 70,075 ) Balance as of December 31, 2025 $ 12,519 $ 10,389 $ 4,808 $ 27,716 Chargebacks, Discounts and Fees Government and Other Rebates Returns Total Balance as of January 1, 2024 $ 8,236 $ 3,517 $ 3,931 $ 15,684 Provision related to current period sales 49,071 13,586 1,315 63,972 Credit or payments made during the period ( 43,933 ) ( 8,760 ) ( 523 ) ( 53,216 ) Balance as of December 31, 2024 $ 13,374 $ 8,343 $ 4,723 $ 26,440 116 Table of Contents Adjustment related to prior period sales reflects updates to estimates of variable consideration, including chargebacks, rebates, and returns, resulting from actual claims and other information obtained in the current reporting period. The following table summarizes revenues from each of our customers who individually accounted for 10% or more of the total net product sales and revenues from collaborations: Year Ended December 31, 2025 2024 2023 McKesson Corporation 42 % 45 % 43 % Cencora Inc. 19 % 20 % 21 % Cardinal Health, Inc. * 13 % 25 % Lilly 14 % — % — % Kissei * 11 % * ______________________________ * Denotes less than 10% 4. SPONSORED RESEARCH AND LICENSE AGREEMENTS AND GOVERNMENT CONTRACTS Sponsored Research and License Agreements We conduct research and development programs independently and in connection with our corporate collaborators. We are a party to collaboration agreements with Lilly to develop and commercialize ocadusertib (previously R552), a RIPK1 inhibitor; with Grifols to commercialize fostamatinib for human diseases in all indications, in Grifols territory which includes Europe, the UK, Turkey, the Middle East, North Africa and Russia (including Commonwealth of Independent States); with Kissei to develop and commercialize fostamatinib in Japan, China, Taiwan and Korea and olutasidenib in Japan, Korea and Taiwan; with Medison to commercialize fostamatinib in all indications, in Medison territory which includes Canada and Israel; with Knight to commercialize fostamatinib in all indications, in Knight territory which includes Latin America, consisting of Mexico, Central and South America, and the Caribbean; and with Dr. Reddy’s to commercialize olutasidenib in Dr. Reddy’s territory which includes Latin America, South Africa, India, Australia, New Zealand, and certain countries in the CIS, Southeast Asia region and North Africa. Further, we are also a party to collaboration agreements, but do not have ongoing performance obligations with BerGenBio for the development and commercialization of AXL receptor tyrosine kinase inhibitor, R428 (now referred to as bemcentinib (BGB324)), and with Daiichi to pursue research related to MDM2 inhibitor, DS-3032 (now referred as milademetan). Under the above existing agreements that we entered into in the ordinary course of business, we received or may be entitled to receive upfront cash payments, payments contingent upon specified events achieved by such partners and royalties on any net sales of products sold by such partners under the agreements. As of December 31, 2025, total potential future contingent payments due to us under all existing collaboration agreements was approximately $ 1.1 billion, which amount reflects the impact of Lilly's termination of the CNS disease program effective in November 2025, and assumes that all potential product candidates achieve every payment-triggering milestone under all of our current agreements. Of this amount, approximately $ 179.5 million relates to the achievement of development events, $ 270.6 million relates to the achievement of regulatory events and $ 637.0 million relates to the achievement of certain commercial or launch events. This estimated future contingent amount does not include any estimated royalties that could be due to us if the partners successfully commercialize any of the licensed products. Future events that may trigger payments to us under the agreements are based solely on our partners’ future efforts and achievements of specified development, regulatory and/or commercial events. We account for the milestone payments when such milestones are considered probable of being achieved, and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within our or the licensee’s control, such as regulatory approvals, are not considered probable of being achieved until uncertainty associated with the approvals has been resolved. The transaction price is then allocated to each performance obligation, on a relative standalone selling price basis, for which we recognize revenue as or when the 117 Table of Contents performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achieving such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, and recorded as part of contract revenues from collaborations during the period of adjustment. Global Exclusive License Agreement with Lilly In February 2021, we entered a global exclusive license agreement and strategic collaboration with Lilly, which became effective in March 2021 upon clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and was amended in September 2023 (first amendment), March 2024 (second amendment), and in August 2025 (third amendment) (collectively, Lilly Agreement). The collaboration was to develop and commercialize ocadusertib (previously R552) for the treatment of non-CNS diseases, and additional RIPK1 inhibitors for the treatment of CNS diseases. Pursuant to the terms of the Lilly Agreement, we granted Lilly the exclusive rights to develop and commercialize ocadusertib and related RIPK1 inhibitors in all indications worldwide. The parties’ collaboration is governed through a joint governance committee and appropriate subcommittees. Under the terms of Lilly Agreement, we received a non-refundable and non-creditable upfront cash payment amounting to $ 125.0 million in April 2021. In addition, for non-CNS diseases, we are eligible to receive up to $ 330.0 million in milestone payments upon the achievement of specified development and regulatory milestones and up to $ 100.0 million in sales milestone payments on a product-by-product basis. In addition, depending on the extent of our co-funding of ocadusertib development activities, we would be entitled to receive tiered royalty payments on net sales of non-CNS disease products at percentages ranging from the mid-single digits to high-teens, subject to certain standard reductions and offsets. For CNS diseases, we were eligible to receive up to $ 256.0 million in milestone payments upon the achievement of specified development, regulatory and commercial milestones and up to $ 150.0 million in sales milestone payments on a product-by-product basis. In addition, we were also eligible to receive tiered royalty payments on net sales of CNS disease products up to low-double digits, subject to certain standard reductions and offsets. On October 1, 2025, Lilly notified us of its intent to terminate the CNS disease program under the Lilly Agreement, and such termination became effective on November 30, 2025. As a result, we do not expect to realize any future milestones and royalty payments associated with the CNS disease program. Under the Lilly Agreement, we were responsible for performing and funding initial discovery and identification of CNS disease development candidates. Following candidate selection, Lilly was responsible for performing and funding all future development and commercialization of the CNS disease development candidates. Under the Lilly Agreement, we were responsible for 20 % of development costs for ocadusertib in the US, Europe, and Japan, up to a specified cap. Lilly was responsible for funding the remainder of all development activities for ocadusertib and other non-CNS disease development candidates. Pursuant to the terms of the Lilly Agreement, we had the right to opt-out of co-funding the ocadusertib development activities in the US, Europe and Japan at two different specified times and as a result receive lesser royalties from sales. Prior to us providing our first opt-out notice in September 2023 as discussed below, under the Lilly Agreement, we were required to fund our share of the ocadusertib development activities in the US, Europe, and Japan up to a maximum funding commitment of $ 65.0 million through April 1, 2024. We accounted for this agreement under ASC 606. At the inception of the Lilly Agreement, we determined that the license of non-CNS penetrant IP and the license of CNS penetrant IP represented distinct performance obligations. Given our opt-out rights related to ocadusertib development activities, we concluded at the minimum, we had a commitment to fund the development costs up to $ 65.0 million. We determined that this commitment represented a significant financing component of the contract and accounted for as a reduction of the upfront payment in determining the transaction price. Accordingly, we recorded a liability at its net present value of approximately $ 57.9 million using a 6.4 % discount rate. Interest expense was accreted on such liability over the expected commitment period and adjusted for timing of expected cost share payments. The resulting net transaction price of $ 67.1 million was allocated to each performance obligation based on our best estimate of its relative standalone selling price using the adjusted market assessment approach. The portion of the transaction price allocated to the non-CNS penetrant IP of $ 60.4 million was recognized as revenue in 2021 upon delivery of the non-CNS penetrant IP to Lilly. The portion of the transaction price allocated to the CNS penetrant IP of $ 6.7 million was recognized as revenue from the effective date of the Lilly Agreement through the eventual acceptance by Lilly in June 2022 using the input method. There was no outstanding deferred revenue related to Lilly Agreement as of December 31, 2025 and 2024. In September 2023, we provided our first opt-out notice to Lilly, and concurrently entered into an amendment to the Lilly Agreement. Under the amended agreement, following the exercise of the first opt-out, we had the right to opt back in to co-funding of ocadusertib development activities, upon us providing notice to Lilly within 30 days of certain events as specified in the Lilly Agreement, which would have entitled us to higher royalties. If we had exercised this opt-in right, we 118 Table of Contents would have been required to continue to share in global development costs, subject to cap and duration if the second opt-out right were exercised. Following the exercise of our first opt-out right, our cost share obligation for ocadusertib development activities ended on April 1, 2024. We paid Lilly $ 21.4 million for our share of development costs incurred through April 1, 2024. As of December 31, 2024, the outstanding liability to Lilly reported within other long-term liabilities in the balance sheets amounted to $ 40.0 million. Although our obligation to share in ocadusertib development activities ended on April 1, 2024, we did not release the remaining cost share liability in the periods prior to providing notice that we would not exercise our opt-in right, as we could not conclude that it was probable that a significant reversal of revenue, if recognized, would not occur until the likelihood of us exercising our opt-in right became remote, or the opt-in period lapsed. On April 30, 2025, we notified Lilly of our decision not to exercise our opt-in right following our evaluation of certain events specified in the Lilly Agreement. As a result, we were no longer obligated to share in any future global development costs for ocadusertib development activities. Accordingly, during the year ended December 31, 2025, we released the remaining $ 40.0 million cost share liability and recognized the amount as contract revenues from collaboration. Grifols License Agreement We have a commercialization license agreement with Grifols entered in January 2019 with exclusive rights to commercialize fostamatinib for human diseases, and non-exclusive rights to develop, fostamatinib in Grifols territory. Under the agreement, we received an upfront payment of $ 30.0 million, with the potential for $ 297.5 million in total regulatory and commercial milestones. We are also entitled to receive stepped double-digit royalty payments based on tiered net sales which may reach 30 % of net sales. In January 2020, the EC granted a centralized MA for fostamatinib valid throughout the EU, and in the UK after the departure of the UK from the EU, for the treatment of chronic ITP in adult patients who are refractory to other treatments. With this approval, in February 2020, we received $ 20.0 million non-refundable payment, consisted of a $ 17.5 million payment due upon MAA approval by the EMA of fostamatinib for the first indication and a $ 2.5 million creditable advance royalty payment, based on the terms of our collaboration agreement with Grifols. We accounted for this agreement under ASC 606 and recognized the corresponding revenue in the period we satisfied the performance obligations. As of December 31, 2025 and 2024, there was no outstanding deferred revenue. We have a Commercial Supply Agreement with Grifols entered in October 2020 to supply and sell our drug product priced at a certain markup specified in the agreement, in quantities Grifols shall order from us pursuant to and in accordance with the agreement. For the years ended December 31, 2025, 2024, and 2023, we recognized $ 6.1 million, $ 4.0 million and $ 5.6 million, respectively, of revenue related to delivery of drug supply to Grifols. We recognized royalty revenue from Grifols of $ 7.2 million, $ 5.1 million and $ 3.2 million for the years ended December 31, 2025 , 2024 and 2023 , respectively. Kissei License Agreements We have a collaboration and license agreement with Kissei entered in September 2024 to grant exclusive rights to develop and commercialize olutasidenib in all human diseases in Japan, Korea and Taiwan. Kissei is responsible for performing and funding the development activities for olutasidenib in the Kissei territory and we retained the co-exclusive right to conduct development activities in the Kissei territory solely for the purpose of supporting and obtaining regulatory approval of and commercializing olutasidenib in the world outside the Kissei territory. Under the terms of the agreement, we received a one-time, non-refundable, and non-creditable upfront cash payment of $ 10.0 million, with the potential for up to an additional $ 152.5 million in development, regulatory and commercial milestone payments, and will receive mid twenty to lower thirty pecent, tiered, escalated net sales-based payments for the supply of olutasidenib, subject to certain standard reductions and offsets . Pursuant to the agreement, Kissei is responsible for companion diagnostic development in Japan, for which we will share 50 % of the costs incurred by Kissei, up to $ 3.0 million, which are creditable against future milestones and transfer price payments owed to us . We remain responsible for the manufacture and supply of olutasidenib for all development and commercialization activities under the agreement. Pursuant to the concurrently executed supply agreement, we will supply Kissei with bulk drug product for use under the collaboration and license agreement. We accounted for this agreement following ASC 606 and concluded at the inception of the agreement, the upfront cash payment of $ 10.0 million was the consideration for granting the license right to Kissei, and there are no other material deliverables associated with the upfront payment. Accordingly, we recognized the upfront payment as revenue during the year ended December 31, 2024. 119 Table of Contents Under the license and services agreement with Forma as discussed in “Note 5 – In-Licensing and Acquisition”, Forma is entitled to a certain portion of sublicensing revenue, which include, but are not limited to, upfront payments, milestone payments and royalties, that we receive from a third party sublicensee. Following the collaboration and license agreement with Kissei as discussed above, Forma is entitled to a portion of the sublicensing revenue we receive from Kissei. With the receipt of the upfront payment from Kissei, we recognized a $ 2.3 million sublicense revenue fee payable to Forma during the year ended December 31, 2024, which we recorded within cost of product sales. We also have an exclusive license and supply agreement with Kissei entered in October 2018, amended in November 2022, October 2023, August 2024, September 2024 and October 2024, to develop and commercialize fostamatinib in all current and potential indications in Japan, China, Taiwan and Korea. Kissei is responsible for performing and funding all development activities for fostamatinib in Kissei territories. At the inception of the agreement, we received an upfront cash payment of $ 33.0 million. Further, the agreement provides for up to $ 115.0 million in potential development, regulatory and commercial milestone payments, and will receive mid- to upper twenty percnt, tiered, escalated net sales-based payments for the supply of fostamatinib. Under the agreement, we granted Kissei the license rights to fostamatinib in Kissei territory and are obligated to supply Kissei with drug product for use in clinical trials and pre-commercialization activities. We are also responsible for the manufacture and supply of fostamatinib for all future development and commercialization activities. In April 2022, Kissei announced that an NDA was submitted to Japan’s PMDA for fostamatinib in chronic ITP, which entitled us to receive a $ 5.0 million non-refundable and non-creditable milestone payment. In December 2022, Kissei announced that Japan’s PMDA approved the NDA for fostamatinib in chronic ITP, which entitled us to receive a $ 20.0 million non-refundable and non-creditable milestone payment. In January 2025, Kissei announced the Korean Ministry of Food and Drug Safety approved fostamatinib for the treatment of chronic ITP, which entitled us to receive a $ 3.0 million non-refundable and non-creditable milestone payment. We accounted for this agreement under ASC 606, and recognized the corresponding revenue in the period we satisfied the performance obligations. As of December 31, 2025 and 2024 , the remaining deferred revenue was related to the material right associated with discounted fostamatinib supply, which amounted to $ 1.4 million. Pursuant to our supply agreement with Kissei, during the years ended December 31, 2025 , 2024 and 2023, we recognized $ 4.2 million, $ 10.4 million, and $ 2.2 million, respectively, of revenue related to delivery of drug supplies to Kissei. Medison Commercial and License Agreements We have exclusive commercial and license agreements with Medison entered in October 2019 for the commercialization of fostamatinib for chronic ITP in Medison territory. Pursuant to which, we received a $ 5.0 million upfront payment with respect to the agreement in Canada. We accounted for this agreement under ASC 606 and recognized the revenue in the period we satisfied the performance obligation . There was no outstanding deferred revenue related to Medison commercial and license agreement as of December 31, 2025 and 2024 . During the years ended December 31, 2025, 2024 and 2023 , we recognized $ 1.1 million, $ 0.5 million, and $ 0.5 million, respectively, of revenue from Medison primarily related to the delivery of drug supplies and earned royalties. Knight Commercial License and Supply Agreement We have commercial license and supply agreements with Knight entered in May 2022 for the exclusive commercialization of fostamatinib for approved indications in Knight territory. Pursuant to such commercial license agreement, we received a $ 2.0 million one-time, non-refundable, and non-creditable upfront payment, with potential for up to an additional $ 20.0 million in regulatory and sales-based commercial milestone payments, and will receive twenty - to mid- thirty percent, tiered, escalated net-sales based royalty payments for products sold in the Knight territory. We are also responsible for the exclusive manufacture and supply of fostamatinib for all future development and commercialization activities under the agreement. We accounted for this agreement under ASC 606 and recognized the revenue in the period we satisfied the performance obligation . There was no outstanding deferred revenue as of December 31, 2025 and 2024, and no revenue was recognized during the years ended December 31, 2025, 2024 and 2023 related to commercial and license agreement with Knight. 120 Table of Contents Dr. Reddy’s Commercial License Agreement We have a commercial license agreement with Dr. Reddy’s entered in November 2024, pursuant to which, we granted Dr. Reddy’s an exclusive license to develop and commercialize olutasidenib in Dr. Reddy’s territory. Pursuant to the commercial license agreement, we were entitled to receive a $ 4.0 million one-time, non-refundable and non-creditable upfront payment , which amount, net of applicable foreign withholding taxes was received in February 2025. In addition, we are also entitled to a potential for up to an additional $ 36.0 million in regulatory and sales-based commercial milestone payments, and will receive high teens- to thirty percent, tiered, escalated net-sales based royalty payments for products sold in Dr. Reddy’s territory, subject to certain standard reductions and offsets. Dr. Reddy’s is responsible for performing and funding all development activities necessary to obtain regulatory approval and commercialize olutasidenib in the Dr. Reddy’s territory. We are responsible for the exclusive manufacture and supply of olutasidenib for all future development and commercialization activities under the agreement. We accounted for this agreement following ASC 606 and concluded at the inception of the agreement that the upfront cash payment of $ 4.0 million was the consideration for granting the license right to Dr. Reddy’s, and accordingly recognized the upfront payment as revenue during the year ended December 31, 2024. In August 2025, we entered into a supply agreement with Dr. Reddy’s. During the year ended December 31, 2025, we recognized $ 0.1 million of revenue related to the delivery of drug supplies. Under the license and services agreement with Forma as discussed in “Note 5 – In-Licensing and Acquisition”, Forma is entitled to a certain portion of sublicensing revenue from olutasidenib. During the year ended December 31, 2024, we recorded $ 0.9 million sublicense revenue fee which we recorded within cost of product sales, associated with the upfront payment from Dr. Reddy’s. Government Contracts Government contracts revenue of $ 0.3 million for the year ended December 31, 2025 was related to an award granted to us by BARDA for our evaluation of fostamatinib in mitigating the impact of long-term respiratory distress. No government contracts revenue was recognized during the year ended December 31, 2024 . Government contracts revenue of $ 1.1 million for the year ended December 31, 2023 was primarily related to an award granted to us by the Department of Defense to support our Phase 3 clinical trial to evaluate the safety and efficacy of fostamatinib for the treatment of hospitalized high-risk patients with COVID-19. Strategic Development Collaborations with MD Anderson and CONNECT We have a Strategic Collaboration Agreement with MDACC, a comprehensive cancer research, treatment, and prevention center, entered in December 2023. The collaboration will expand our evaluation of olutasidenib in AML and other hematologic cancers. Under the collaboration, we will provide MDACC the study materials and $ 15.0 million in time-based milestone payments as compensation for services to be provided for the studies, over the five-year collaboration term, unless terminated earlier as provided for in the agreement. Through December 31, 2025, we provided $ 5.3 million funding to MDACC. In January 2024, we announced our collaboration with CONNECT, an international collaborative network of pediatric cancer centers, to conduct a Phase 2 clinical trial to evaluate olutasidenib in glioma. Under the collaboration, we will provide funding up to $ 3.0 million and study material over the four-year collaboration. We account for the funding we provide under the above research collaboration agreements as prepaid research and development in the balance sheet to the extent the payment is made in advance of services being rendered, and recognize such amount as research and development expense within the statements of operations as the collaborative partners render the services under the respective agreement. 121 Table of Contents 5. IN-LICENSING AND ACQUISITION Asset Purchase Agreement with Blueprint We acquired the US rights to research, develop, manufacture and commercialize GAVRETO from Blueprint pursuant to an Asset Purchase Agreement entered in February 2024. The acquired assets from Blueprint include, among other things, applicable intellectual property related to pralsetinib in the US, including patents, copyrights and trademarks, as well as clinical regulatory and commercial data and records. Pursuant to the Asset Purchase Agreement, we agreed to pay a purchase price of $ 15.0 million, of which, $ 10.0 million was payable upon our first commercial sale of GAVRETO and an additional $ 5.0 million is payable on the first anniversary of the closing date of the agreement, subject to certain conditions. Blueprint is also eligible to receive up to $ 97.5 million in future commercial milestone payments and up to $ 5.0 million in future regulatory milestone payments. The potential regulatory milestones include full regulatory approval of pralsetinib (or related compounds) for the treatment of adult RET-fusion positive thyroid cancer, and maintenance of the current regulatory approval of pralsetinib for the treatment of adult RET-fusion positive thyroid cancer during the period beginning on February 22, 2024 and ending on the third anniversary of the first commercial sale of pralsetinib subject to certain conditions. Subject to the terms and conditions of the Asset Purchase Agreement, Blueprint would be entitled to tiered royalty payments on net sales of products containing pralsetinib (or related compounds) ranging from 10 % to 30 %, subject to certain reductions and offsets. We accounted for this transaction as an asset acquisition in accordance with ASC 805 Business Combinations (ASC 805) because substantially all of the fair value of the gross assets acquired is concentrated in a single asset, which is the GAVRETO product rights. The GAVRETO product rights comprised developed technology, customers, trademarks and trade name, and are considered a single asset as they are inextricably linked. The following table summarizes the total purchase consideration in connection with the asset acquisition (in thousands): Closing purchase price $ 15,000 Transaction costs 360 Total purchase consideration $ 15,360 Of the total closing purchase price, $ 10.0 million was paid in July 2024. The remaining $ 5.0 million was outstanding and presented as acquisition-related liabilities in the balance sheet as of December 31, 2025 and 2024. We classify the outstanding acquisition-related liabilities as current or non-current liabilities based on the period the amount is expected to be due as of the balance sheet date. In accordance with the guidance, we classify payments of the closing purchase price under financing activity in the statements of cash flows, considering that payments are not made soon after the acquisition date. Since we acquired a single asset, the total purchase consideration was recorded as intangible assets. The related intangible assets are being amortized on a straight-line basis over the estimated useful life of 12 years, and the related amortization is recorded within cost of product sales. The contingent considerations relating to future commercial and regulatory milestones were not included in the total purchase price consideration, and will be accounted for when the contingency is resolved and the consideration becomes payable. Royalties are recognized within cost of product sales, as revenue from GAVRETO product sales is recognized. Simultaneously and in connection with entering into the Asset Purchase Agreement, we also entered into certain supporting agreements, including a customary transition agreement. We also agreed to purchase certain drug product inventories from Blueprint under a Material Transfer Agreement. License and Transition Services Agreement with Forma We have a license and transition services agreement with Forma entered in July 2022, for an exclusive license to develop, manufacture and commercialize olutasidenib, a proprietary inhibitor of mutated IDH1 (mIDH1), for any uses worldwide, including for the treatment of AML and other malignancies. Pursuant to the terms of the license and transition services agreement, we paid an upfront fee of $ 2.0 million, with the potential to pay up to $ 67.5 million of additional payments upon achievement of specified development and regulatory milestones and up to $ 165.5 million of additional payments upon achievement of certain commercial milestones. In addition, subject to the terms and conditions of the license and transition services agreement, Forma would be entitled to tiered royalty payments on net sales of licensed 122 Table of Contents products at percentages ranging from low-teens to mid-thirties, as well as certain portion of our sublicensing revenue, subject to certain standard reductions and offsets. The transaction was accounted for as an acquisition of asset under ASC 730, Research and Development . In accordance with the guidance, in a transaction accounted for as an asset acquisition, any acquired in-process research and development (IPR&D) that does not have alternative future use is charged to expense at the acquisition date. At the acquisition date, we accounted for the upfront fee of $ 2.0 million as IPR&D and recorded such cost within research and development expenses in the statements of operations in 2022. Under the accounting guidance, we account for contingent cash payments when it is probable that a liability is incurred and the amount can be reasonably estimated. We account for m ilestone payment obligations incurred at development stage and prior to a regulatory approval of an indication associated with the acquired licensed asset as research and development expense when the event requiring payment of the milestone occurs. Milestone payment obligations incurred upon and after a regulatory approval of an indication associated with the acquired licensed asset, and at the commercial stage, are recorded as intangible asset when the event requiring payment of the milestones occurs. Prior to the FDA approval of REZLIDHIA in December 2022, we achieved certain regulatory milestone which entitled Forma to receive a $ 2.5 million milestone payment. Because such milestone payment obligation was incurred prior to a regulatory approval of an indication associated with the acquired licensed asset, we recorded such amount as IPR&D and recorded such cost within research and development expense in 2022. On December 1, 2022, the FDA approved REZLIDHIA capsules for the treatment of adult patients with R/R AML with susceptible IDH1 mutations as detected by an FDA-approved test. Following the FDA approval, we launched REZLIDHIA and made first shipments of the product to our customers in December 2022. With this FDA approval and first commercial sale of the product, Forma was entitled to receive a total of $ 15.0 million in milestone payments. Since such milestone payments were incurred upon and after regulatory approval of the product, we recorded such amount as intangible asset on our balance sheet. The amount recorded as intangible assets are being amortized on a straight-line basis over the estimated useful life of 14 years, and the related amortization is recorded within cost of product sales . Royalties are recognized within cost of product sales, as revenue from REZLIDHIA product sales is recognized. 6. STOCK-BASED COMPENSATION Total stock-based compensation expense related to all of our stock-based awards was as follows (in thousands): Year Ended December 31, 2025 2024 2023 Selling, general and administrative $ 10,592 $ 10,879 $ 6,712 Research and development 2,119 1,514 2,094 Total stock-based compensation expense $ 12,711 $ 12,393 $ 8,806 Equity Incentive Plans We have two active equity plans, our 2018 Equity Incentive Plan (2018 Plan) and the Rigel’s Inducement Plan, as amended (Inducement Plan, and together with 2018 Plan, the Equity Incentive Plans). The 2018 Plan is the successor plan to the 2011 Equity Incentive Plan, the 2000 Equity Incentive Plan, and the 2000 Non-Employee Directors’ Stock Option Plan. The 2018 Plan provides for granting of stock awards to our officers, directors, all other employees and consultants. The Inducement Plan, which is a non-stockholder approved stock plan, is intended mainly to provide an inducement material by granting awards for certain individuals to enter into employment with us. Awards granted under our Equity Incentive Plans expire no later than 10 years from the date of grant. Awards may be granted with different vesting terms from time to time. To date, we granted stock options and RSUs under our Equity Incentive Plans. I n May 2025 , our stockholders approved an amendment to our 2018 Plan, to, among other items, add an additional 700,000 shares to the number of shares of common stock authorized for issuance under our 2018 Plan . During the year ended December 31, 2025, our Board of Directors approved additional 152,868 shares of common stock reserved for issuance under our Inducement Plan. 123 Table of Contents Stock Options and RSUs The following table summarizes stock options and RSUs activity, and shares available for grant under our Equity Incentive Plans for the periods presented: Stock Options RSUs Shares Available For Grant Number of Shares Weighted Average Exercise Price Weighted Intrinsic Value (in thousands) Number of Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2024 1,598,221 3,564,718 $ 23.00 387,282 $ 14.94 Authorized for grant 852,868 Granted ( 1,215,816 ) 674,555 $ 22.18 389,522 $ 23.14 Exercised/Released — ( 466,591 ) $ 20.61 ( 143,691 ) $ 14.92 Cancelled and forfeited 198,789 ( 219,248 ) $ 25.69 ( 25,492 ) $ 17.36 Outstanding as of December 31, 2025 1,434,062 3,553,434 $ 23.00 $ 70,857 607,621 $ 20.10 Vested and expected to vest as of December 31, 2025 3,384,870 $ 22.82 $ 70,052 Exercisable as of December 31, 2025 2,764,752 $ 23.80 $ 52,981 Of the total stock options outstanding as of December 31, 2025, 168,564 shares outstanding are performance-based stock options wherein the achievements of the corresponding corporate-based milestones were not probable. Accordingly, the related grant date fair value for these performance-based stock options of $ 3.2 million has not been recognized as stock-based compensation expense as of December 31, 2025. The aggregate intrinsic values of stock options outstanding, vested and expected to vest, and exercisable represents the difference between the exercise price of the underlying awards and the quoted price of our common stock for the options that were in-the-money as of December 31, 2025. For the years ended December 31, 2025, 2024 and 2023, the aggregate intrinsic values of stock option exercises were approximately $ 5.6 million, $ 0.6 million and $ 0.02 million, respectively, representing the difference between the fair value of our common stock at the date of exercise and the exercise price paid. Stock option grants generally vest over 3 to 4 years, and are exercisable for a period of 10 years. For the years ended December 31, 2025 , 2024 and 2023 , we granted options to purchase 674,555 shares, 717,106 shares and 367,180 shares, respectively, of common stock, with weighted-average grant date fair value of $ 17.09 per share, $ 9.71 per share and $ 12.80 per share, respectively. The following table summarizes the weighted-average assumptions relating to stock options granted during the periods presented: Year Ended December 31, 2025 2024 2023 Risk-free interest rate 4.3 % 4.1 % 3.9 % Expected term (in years) 6.4 6.1 6.8 Dividend yield 0.0 % 0.0 % 0.0 % Expected volatility 88.7 % 87.7 % 84.0 % As of December 31, 2025, there was approximately $ 14.7 million of unrecognized stock-based compensation cost which is expected to be recognized over the remaining weighted-average period of 2.05 years, related to time-based stock options, performance-based stock options wherein achievement of the corresponding corporate-based milestones were considered as probable, and RSUs. 124 Table of Contents Outstanding stock options and stock options exercisable information by range of exercises prices as of December 31, 2025 was as follows: Options Outstanding Options Exercisable Exercise Price Number of Shares Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price $ 9.0 - $ 18.7 1,120,034 7.59 $ 13.82 813,399 $ 13.82 $ 19.6 - $ 21.1 440,680 3.12 $ 20.28 412,356 $ 20.36 $ 21.4 - $ 24.0 607,484 8.21 $ 22.65 276,122 $ 22.83 $ 24.2 - $ 24.2 500,575 4.73 $ 24.20 471,324 $ 24.20 $ 24.4 - $ 35.4 522,208 4.30 $ 31.56 429,098 $ 31.51 $ 35.9 - $ 39.80 180,307 3.65 $ 37.51 180,307 $ 37.51 $ 40.7 - $ 45.0 182,146 2.07 $ 44.90 182,146 $ 44.90 $ 9.0 - $ 45.0 3,553,434 5.77 $ 23.00 2,764,752 $ 23.80 Employee Stock Purchase Plan Our Purchase Plan permits eligible employees to purchase common stock at a discount through payroll deductions during defined offering periods. Our Purchase Plan provides for a 24-month offering period comprised four six-month purchase periods with a look-back option. A look-back option is a provision in our Purchase Plan under which eligible employees can purchase shares of our common stock at a price per share equal to the lesser of 85 % of the fair market value on the first day of the offering period or 85 % of the fair market value on the purchase date. Our Purchase Plan also includes a feature that provides for a new offering period to begin when the fair market value of our common stock on any purchase date during an offering period falls below the fair market value of our common stock on the first day of such offering period. This feature is called a “reset.” Participants are automatically enrolled in the new offering period. Our previous 24-month offering period under our Purchase Plan ended on June 30, 2024, and a new 24-month offering period started on July 1, 2024. The fair value of awards under our Purchase Plan is estimated on the date of our new offering period using the Black-Scholes option pricing model, which is being amortized over the requisite service periods. As of December 31, 2025, there was approximately $ 0.1 million, which is expected to be recognized over the remaining weighted average period of 0.50 years, related to our Purchase Plan. For the years ended December 31, 2025, 2024 and 2023, there were 87,176 shares, 65,409 shares and 94,179 shares, respectively, of common stock purchased under the Purchase Plan, at an average price of $ 7.15 per share, $ 7.06 per share and $ 10.60 per share, respectively. As of December 31, 2025, there were 96,998 shares reserved for future issuance under the Purchase Plan. 7 . INVENTORIES The following table summarizes inventories, net (in thousands): As of December 31, 2025 2024 Raw materials $ 4,514 $ 1,077 Work in process 3,910 1,226 Finished goods 4,712 5,014 Total $ 13,136 $ 7,317 Reported as: Inventories $ 11,506 $ 6,002 Other assets 1,630 1,315 Total $ 13,136 $ 7,317 125 Table of Contents Non-current inventories included within other assets in the balance sheet consist of APIs classified as raw materials which have multi-year shelf life, as well as certain work in process and finished goods inventories that are not expected to be consumed beyond our normal operating cycle. 8. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash, cash equivalents and short-term investments consisted of the following (in thousands): As of December 31, 2025 2024 Cash $ 20,020 $ 20,135 Restricted cash 57 — Money market funds 14,509 16,386 US treasury bills 63,994 7,263 Government-sponsored enterprise securities 20,692 23,177 Corporate bonds and commercial paper 35,740 10,360 $ 155,012 $ 77,321 Reported as: Cash and cash equivalents $ 40,580 $ 56,746 Short-term investments 114,375 20,575 Restricted cash reported within other assets 57 — $ 155,012 $ 77,321 Cash equivalents and short-term investments include the following securities with gross unrealized gains and losses (in thousands): As of December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value US treasury bills $ 63,868 $ 126 $ — $ 63,994 Government-sponsored enterprise securities 20,663 30 ( 1 ) 20,692 Corporate bonds and commercial paper 35,714 28 ( 2 ) 35,740 Total $ 120,245 $ 184 $ ( 3 ) $ 120,426 As of December 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value US treasury bills $ 7,260 $ 3 $ — $ 7,263 Government-sponsored enterprise securities 23,174 3 — 23,177 Corporate bonds and commercial paper 10,356 4 — 10,360 Total $ 40,790 $ 10 $ — $ 40,800 As of December 31, 2025 and 2024, our cash equivalents and short-term investments had a weighted-average time to maturity of approximately 303 days and 69 days, respectively. Our short-term investments are classified as available-for-sale securities. Accordingly, we have classified certain securities as short-term investments on our balance sheets as they are available for use in the current operations. As of December 31, 2025, a total of 9 individual securities have been in an unrealized loss position for 12 months or less, and the losses were determined to be temporary . We regularly review the securities in an unrealized loss position and evaluate the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. W e have not recognized any credit losses on these securities as of December 31, 2025 and 2024. 126 Table of Contents The following table shows the fair value and gross unrealized losses of our investments in individual securities that are in an unrealized loss position, aggregated by investment category (in thousands): As of December 31, 2025 Fair Value Gross Unrealized Losses Government-sponsored enterprise securities $ 2,475 $ ( 1 ) Corporate bonds and commercial paper 5,489 ( 2 ) Total $ 7,964 $ ( 3 ) 9. FAIR VALUE The table below summarizes the fair value of our cash equivalents and short-term investments measured at fair value on a recurring basis, and are categorized based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of December 31, 2025 Level 1 Level 2 Level 3 Total Money market funds $ 14,509 $ — $ — $ 14,509 US treasury bills — 63,994 — 63,994 Government-sponsored enterprise securities — 20,692 — 20,692 Corporate bonds and commercial paper — 35,740 — 35,740 Total $ 14,509 $ 120,426 $ — $ 134,935 Assets at Fair Value as of December 31, 2024 Level 1 Level 2 Level 3 Total Money market funds $ 16,386 $ — $ — $ 16,386 US treasury bills — 7,263 — 7,263 Government-sponsored enterprise securities — 23,177 — 23,177 Corporate bonds and commercial paper — 10,360 — 10,360 Total $ 16,386 $ 40,800 $ — $ 57,186 10. OTHER BALANCE SHEET COMPONENTS Property and equipment Property and equipment included within other assets comprised primarily of computer and other equipment. Following table summarizes the property and equipment for the periods presented (in thousands): As of December 31, 2025 2024 Total cost $ 347 $ 353 Less accumulated depreciation ( 317 ) ( 261 ) Property and equipment, net $ 30 $ 92 Depreciation and amortization expense was $ 0.1 million, $ 0.1 million and $ 0.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. 127 Table of Contents Prepaid and other current assets Prepaid and other current assets for the periods presented consist of the following (in thousands): As of December 31, 2025 2024 Prepaid inventory $ 11,849 $ 3,757 Prepaid research and development costs 4,886 1,885 Others 5,207 4,523 Total prepaid and other current assets $ 21,942 $ 10,165 Intangible assets Intangible assets consist of the following (in thousands): As of December 31, 2025 2024 Intangible assets cost $ 30,360 $ 30,360 Accumulated amortization ( 5,612 ) ( 3,260 ) Intangible assets, net $ 24,748 $ 27,100 See “Note 5 – In-Licensing and Acquisition” for related discussions of capitalized intangible assets. F or the years ended December 31, 2025, 2024 and 2023, amortization expense recorded within cost of sales in the statements of operations were $ 2.4 million, $ 2.1 million and $ 1.1 million, respectively. As of December 31, 2025, the weighted average remaining amortization period of outstanding intangible assets was 10.54 years. The following table presents the estimated future amortization expense of intangible assets (in thousands): For the year ending December 31, 2026 $ 2,351 2027 2,351 2028 2,351 2029 2,351 2030 2,351 Thereafter 12,993 $ 24,748 Other current liabilities Other current liabilities consist of the following (in thousands): As of December 31, 2025 2024 Accrued commercial expenses $ 2,192 $ 3,661 Accrued other expenses 7,919 6,735 Deferred revenue 1,355 1,355 Total other current liabilities $ 11,466 $ 11,751 128 Table of Contents 11. DEBT The following table summarizes loans payable, net (in thousands): As of December 31, 2025 2024 Principal outstanding $ 52,500 $ 60,000 Unamortized debt issuance costs ( 206 ) ( 320 ) Principal outstanding, net of unamortized debt issuance costs $ 52,294 $ 59,680 Reported as: Loans payable, net, current portion $ 29,812 $ 7,272 Long-term portion of loans payable, net 22,482 52,408 $ 52,294 $ 59,680 The outstanding loans payable as of the periods presented was related to our Credit Agreement with MidCap entered on September 27, 2019 (Closing Date) and amended on March 29, 2021 (First Amendment), February 11, 2022 (Second Amendment), July 27, 2022 (Third Amendment), and April 11, 2024 (Fourth Amendment). The Credit Agreement provides for a $ 60.0 million term loan credit facility. Under the amended Credit Agreement, the term loans mature on September 1, 2027, and the interest-only period is through October 1, 2025. The interest rate applicable to the term loans under is the sum of one-month SOFR, plus an adjustment of 0.11448 %, subject to 4.00 % applicable floor, plus applicable margin of 6.50 %. A final payment fee of 4.25 % of principal is due at maturity date of the term loans. Prior to the Fourth Amendment to the Credit Agreement , the term loans would mature on September 1, 2026, and the interest-only period was through October 1, 2024. The term loans bore interest rate equal to the sum of one-month SOFR , plus an adjustment of 0.11448 %, subject to 1.50 % applicable floor, plus applicable margin of 5.65 %, and a final payment fee of 2.50 % of principal due at maturity date. We may make voluntary prepayments, in whole or in part, subject to certain prepayment premiums and additional interest payments. The Credit Agreement also contains certain provisions, such as event of default and change in control provisions, which, if triggered, would require us to make mandatory prepayments on the term loan, which are subject to certain prepayment premiums and additional interest payments. The obligations under the amended Credit Agreement are secured by a perfected security interest in all of our assets including our intellectual property. Interest expense, including amortization of the debt discount and accretion of the final fees related to the Credit Agreement for the years ended December 31, 2025, 2024 and 2023 were $ 7.3 million, $ 7.9 million and $ 6.8 million, respectively. Accrued interest of $ 2.6 million and $ 2.1 million as of December 31, 2025 and 2024, respectively, was included within other current liabilities in the balance sheet. The following table presents the future minimum principal payments of the outstanding loan as of December 31, 2025 (in thousands): For the year ending December 31, 2026 $ 30,000 2027 22,500 Principal amount (Tranches 1, 2, 3 and 4) $ 52,500 The amended Credit Agreement contains certain covenants which, among others, require us to deliver financial reports at designated times of the year and maintain minimum unrestricted cash and trailing net revenues. As of December 31, 2025, we were not in violation of any covenants. 129 Table of Contents 12. COMMITMENTS AND CONTINGENCIES Operating Leases Our current headquarters located in South San Francisco, California was previously subleased from Atara Biotherapeutics, Inc. (Atara) pursuant to a sublease agreement entered in October 2022, which lease commenced in November 2022 and expired in May 2025. In February 2025, we entered into a lease agreement with 611 Gateway, now with Healthpeak following the completion of the property acquisition from 611 Gateway in January 2026, to lease the same office space, which lease term commenced following the expiration of the sublease with Atara and will expire in July 2027. Following our lease agreement with 611 Gateway, i n accordance with ASC 842, Leases , at lease measurement date, we recognized operating lease right-of-use asset and lease liability of approximately $ 1.2 million , which amount represents the present value of the future minimum lease payments over the term of the lease measured using our incremental borrowing rate. The components of our operating lease expense were as follows (in thousands): Year Ended December 31, 2025 2024 2023 Fixed operating lease expense $ 635 $ 663 $ 1,109 Variable operating lease expense 71 112 134 Total operating lease expense $ 706 $ 775 $ 1,243 Cash payments included in the measurement of operating lease liabilities for the year ended December 31, 2025, 2024, 2023 were $ 0.6 million, $ 0.7 million and $ 1.5 million, respectively. As of December 31, 2025 , the weighted average remaining term of the lease was 1.58 years. The following table presents the future lease payments as of December 31, 2025 (in thousands): For year ending December 31, 2026 $ 692 2027 409 Total minimum payments required $ 1,101 Purchase Commitments and Obligations In the ordinary course of business, we enter into agreements with contract manufacturers to manufacture our inventory products. Although the agreements generally provide a termination clause with or without cause, we may still be subjected to payment of cancellation fees. The level of cancellation fees is generally dependent on the timing of the written notice in relation to the commencement of work, with the maximum cancellation fees equal to the full price of the work order. In October 2024, we entered into an agreement with a third-party contract manufacturer to manufacture TAVALISSE that is expected to be delivered starting in 2026 through 2029. As of December 31, 2025, the contractual obligation not included in our financial statements related an agreement that may potentially be subjected to cancellation fees amounted to approximately $ 21.5 million, with approximately $ 7.3 million due in one year and $ 9.7 million due within two to three years. As of December 31, 2025, we have not incurred any cancellation fees under our agreements with contract manufacturers Legal Contingencies From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. We are not presently a party to any material legal proceedings that, if determined adversely us, would have a material adverse effect on us. For more information, see “Part I, Item 3, Legal Proceedings” of this Annual Report on Form 10-K. 130 Table of Contents 13. STOCKHOLDERS’ EQUITY Preferred Stock We are authorized to issue 10,000,000 shares of preferred stock. As of December 31, 2025 and 2024, there were no issued and outstanding shares of preferred stock. Our Board of Directors is authorized to fix or alter the designation, powers, preferences and rights of the shares of each series of preferred shares, and the qualifications, limitations or restrictions of any wholly unissued shares, to establish from time to time the number of shares constituting any such series, and to increase or decrease the number of shares, if any. Common Stock Our Certificate of Incorporation as amended and restated in May 2018, authorizes us to issue 400,000,000 shares of common stock. Open Market Sale Agreement In August 2020, we entered into an Open Market Sale Agreement with Jefferies, as a sole agent, pursuant to which we may sell from time to time, through Jefferies, shares of our common stock in sales deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act, subject to conditions specified in the Open Market Sale Agreement, including maintaining an effective registration statement covering the sale of shares under the Open Market Sale Agreement. We have an active Registration Statement filed with the SEC, which registered, among other securities, a base prospectus which covers the offering, issuance, and sale by us of up to $ 250.0 million in the aggregate of the securities identified from time to time in one or more offerings, which include the $ 100.0 million of shares of our common stock that may be offered, issued and sold under the Open Market Sale Agreement. As of December 31, 2025, no shares had been sold under the Open Market Sale Agreement. 14. INCOME TAXES Income (loss) before income taxes for the years ended December 31, 2025, 2024, and 2023 was entirely attributable to domestic operations. The components of the (benefit from) provision for income taxes included in the statements of operations were as follows (in thousands): Year Ended December 31, 2025 2024 2023 Current: Federal $ — $ — $ — State and local 655 281 — Foreign — 600 — Total current taxes 655 881 — Deferred: Federal ( 233,679 ) — — State and local ( 12,173 ) — — Foreign — — — Total deferred taxes ( 245,852 ) — — (Benefit from) provision for income taxes $ ( 245,197 ) $ 881 $ — The benefit from income taxes for the year ended December 31, 2025 was primarily attributable to the release of a significant portion of the valuation allowance previously recorded against our deferred tax assets. The provision for income tax for the year ended December 31, 2024 was primarily related to a foreign withholding tax and state income taxes. There was no provision for income taxes for the year ended December 31, 2023. We do not expect to owe federal income taxes due to the sufficient NOL carryforwards that were generated prior to the enactment of the TCJA, as well as significant research and development credit carryforwards. 131 Table of Contents In July 2025, the OBBBA was signed into law. The OBBBA includes a broad range of provisions affecting business entities, including the establishment of certain permanent business tax measures. Among other changes, the legislation permits permanent and immediate deduction for domestic research and development expenditures and restoration of favorable tax treatment for certain business provisions. The legislation contains multiple effective dates, with certain provisions effective beginning in 2025 and others phased through 2027. In accordance with ASC 740, Income Taxes , the effects of changes in tax laws are recognized in the period of enactment. Accordingly, we evaluated the provisions of the OBBBA and determined that the most significant impact to us relates to the capitalization requirements for research and experimental expenditures under Section 174. The effects of this provision have been reflected in our income tax provision for the year ended December 31, 2025. The effects of the OBBBA on our financial statements were not material, other than the impact related to Section 174 as described above. A reconciliation of the (benefit from) provision for income taxes to the amount computed by applying the US federal statutory income tax rate to income (loss) before income taxes for the periods presented is as follows (in thousands, except percentages): Year Ended December 31, 2025 2024 2023 Amount % Amount % Amount % Federal statutory tax rate $ 25,593 21.0 % $ 3,907 21.0 % $ ( 5,261 ) ( 21.0 ) % State and local, net of federal income tax effect * ( 11,518 ) ( 9.5 %) 281 1.5 % 15 0.1 % Foreign tax effect (Indian withholding tax) — — % 600 3.2 % — — % Change in valuation allowance ( 265,784 ) ( 218.1 %) ( 5,644 ) ( 30.3 %) ( 3,081 ) ( 12.3 %) Research and development tax credits ( 744 ) ( 0.6 %) 540 2.9 % 6,583 26.3 % Changes in unrecognized tax benefit ( 82 ) — % 46 0.2 % 33 0.1 % Nontaxable or non-deductible items: Stock-based compensation 7,300 5.9 % 1,189 6.4 % 1,323 5.3 % Other 38 — % ( 38 ) ( 0.1 ) % 388 1.5 % Total (benefit from) provision for income taxes/ Effective tax rate $ ( 245,197 ) ( 201.3 %) $ 881 4.8 % $ — — % *State taxes in California made up the majority (greater than 50 percent) of the tax effect in this category. The amount of income taxes paid (net of refunds received) were as follows (in thousands): Year Ended December 31, 2025 2024 2023 Federal $ — $ — $ — State and local Alabama 129 233 15 Kentucky 256 57 * Tennessee * 28 14 New York * * 48 All states representing less than five percent of total 78 13 4 Total state and local 463 331 81 Foreign India 600 — — Total income taxes paid $ 1,063 $ 331 $ 81 _______________________ * Denotes less than 5% of total income taxes paid in the respective periods. 132 Table of Contents Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets are as follows (in thousands): As of December 31, 2025 2024 Deferred tax assets Net operating loss carryforwards $ 216,008 $ 222,744 Orphan drug and research and development credits 63,458 62,314 Capitalized research and development expenses 5,165 19,604 Deferred revenue 334 10,181 Deferred compensation 4,616 11,701 Other, net 3,296 2,751 Deferred tax liabilities Others ( 327 ) ( 61 ) Total net deferred tax assets 292,550 329,234 Less: valuation allowance ( 46,698 ) ( 329,234 ) Deferred tax assets, net of allowance $ 245,852 $ — Historically, we maintained a full valuation allowance on our outstanding deferred tax assets. In the fourth quarter of 2025, based on our evaluation of all available positive and negative evidence, we concluded that it was more-likely-than not that a significant portion of our federal and state deferred tax assets would be realized. Accordingly, we released the valuation allowance against these deferred tax assets, except for $ 46.7 million of deferred tax assets associated to the portion of federal research and development credit carryforwards, California NOL and California research and development credit carryforwards. The assessment of the realizability of deferred tax assets involved considerable management judgment and required evaluation of all available evidence, including cumulative recent financial performance, forecasts of future taxable income, and the reversal of taxable temporary differences. As a result of this assessment, we recognized a deferred income tax benefit of $ 245.9 million during the year ended December 31, 2025 . The valuation allowance decreased by approximately $ 282.5 million and $ 9.4 million for the years ended December 31, 2025 and 2024, respectively. As of December 31, 2025, we had federal NOL carryforwards of approximately $ 919.0 million. Of this amount, approximately $ 779.9 million will expire beginning in 2026, and the remaining federal NOL carryforwards may be carried forward indefinitely, subject to annual limitation of 80% of taxable income. We also had state NOL carryforwards of approximately $ 324.6 million, which begin to expire in 2031. As of December 31, 2025, we had general business credits of approximately $ 45.6 million, consisting primarily of research and development and orphan drug credits, which begin to expire in 2026 if not utilized. In addition, we had state research and development tax credits of approximately $ 32.9 million, which do not expire. In general, under Section 382 of the Internal Revenue Code (Section 382), a corporation that undergoes an ownership change is subject to limitations on its ability to utilize its pre-change NOL carryovers and tax credits. Our NOL carryforwards and tax credits are subject to limitations resulting from ownership changes that occurred in prior periods. We have updated our Section 382 owner shift analysis through December 31, 2025 and concluded that no significant changes in ownership in the periods presented. Future changes in our stock ownership, some of which are outside of our control, could result in an ownership change under Section 382 and result in additional limitations. 133 Table of Contents The following table summarizes the activity related to our gross unrecognized tax benefits (in thousands): Year Ended December 31, 2025 2024 2023 Balance at the beginning of the year $ 8,780 $ 8,672 $ 9,426 Decrease related to prior year tax positions — — ( 843 ) Increase related to current year tax positions 270 108 89 Balance at the end of the year $ 9,050 $ 8,780 $ 8,672 During the years ended December 2025, 2024 and 2023, unrecognized tax benefits increased primarily due to additional research and development and orphan drug credits generated in the respective periods. In 2023, we engaged tax consultant to perform an orphan drug credits study for years 2015 to 2020, which resulted in a $ 4.7 million decrease in unrecognized tax benefits. The reversal of did not affect our effective tax rate, as a full valuation allowance was in place at that time. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2025, we had no accrued interest or penalties. We are subject to federal income tax and various state taxes. Because of NOL and research credit carryovers, substantially all of our tax years remain open to examination. 15. SEGMENT INFORMATION The following table presents segment information for the periods presented (in thousands): Year Ended December 31, 2025 2024 2023 Total Revenues $ 294,282 $ 179,278 $ 116,882 Less: Employee related expenses 75,314 69,807 63,429 Commercial related expenses 25,898 26,996 24,310 Cost of product sales 19,621 18,647 7,110 Consultants and third-party services 15,146 15,532 17,942 Outside clinical trial related expenses 18,307 10,978 9,694 Other segment items 14,530 13,126 14,888 Interest expense, net 3,639 5,826 4,600 (Benefit from) provision for income taxes ( 245,197 ) 881 — Segment income (loss) $ 367,024 $ 17,485 $ ( 25,091 ) There is no reconciling items or adjustments between segment income (loss) presented above and net income (loss) as presented in our statements of operations. The CODM does not review assets in evaluating the segment results and therefore such information is not presented. For details of revenues disaggregated by category, see “Note 3 – Revenues” . Employee related expenses primarily comprised salaries, employee benefits, other employee related expenses and stock-based compensation expense. For details of stock-based compensation expense, see “Note 6 – Stock-Based Compensation.” Other segment items for the periods presented primarily comprised travel related expenses, business insurance, taxes and licenses, and facility related expenses. 134 Table of Contents SUPPLEMENTARY DATA Schedule II - Valuation and Qualifying Accounts All schedules are omitted because they are not applicable, or the required information is shown in the financial statements or notes thereto. Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.