Senseonics Holdings, Inc. 10-K

Item 8. Financial Statements and Supplementary Data ​ SENSEONICS HOLDINGS, INC. AND SUBSIDIARIES Consolidated Financial Statements ​ Table of Contents ​ ​ Report of KPMG LLP , Auditor ID: 185 , Independent Registered Public Accounting Firm ​ ​ ​ 86 Consolidated Balance Sheets as of December 31, 2025 and 2024 88 ​ Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2025 and 2024 89 ​ Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the years ended December 31, 2025 and 2024 90 ​ Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024 91 ​ Notes to Consolidated Financial Statements 92 ​ ​ ​ ​ 85 Report of Independent Registered Public Accounting Firm ​ ​ To the Stockholders and the Board of Directors Senseonics Holdings, Inc.: ​ Opinion on the Consolidated Financial Statements ​ We have audited the accompanying consolidated balance sheets of Senseonics Holdings, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive loss, changes in stockholders’ equity (deficit), and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. ​ Going Concern ​ The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has determined that it may not meet its covenants as early as the third quarter of 2026. Further, the Company will require additional liquidity to continue its operations over the next twelve months. Therefore, the Company concluded that substantial doubt exists about its ability to continue as a going concern for the one-year period following the date the consolidated financial statements are issued. Management’s plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. ​ Basis for Opinion ​ These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (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 consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. ​ Our audits included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. ​ Critical Audit Matters ​ Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that 86 are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters. ​ /s/ KPMG LLP ​ We have served as the Company’s auditor since 2022. ​ Baltimore, Maryland March 2, 2026 ​ 87 ​ ​ Senseonics Holdings, Inc. Consolidated Balance Sheets (in thousands, except for share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2025 ​ 2024 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 40,234 ​ $ 74,597 ​ Restricted cash ​ ​ 315 ​ ​ 315 ​ Short term investments, net ​ ​ 53,796 ​ ​ — ​ Accounts receivable, net ​ ​ 6,807 ​ ​ 1,365 ​ Accounts receivable, net - related parties ​ ​ 5,312 ​ ​ 4,921 ​ Inventory, net ​ ​ 6,703 ​ ​ 4,421 ​ Prepaid expenses and other current assets ​ 4,366 ​ 5,819 ​ Total current assets ​ 117,533 ​ 91,438 ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits and other assets ​ 4,536 ​ 4,926 ​ Property, equipment and intangible assets, net ​ 4,200 ​ 4,074 ​ Total assets ​ $ 126,269 ​ $ 100,438 ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and Stockholders’ Equity (Deficit) ​ ​ ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 4,059 ​ $ 3,205 ​ Accrued expenses and other current liabilities ​ 15,091 ​ 13,636 ​ Accrued expenses and other current liabilities, related parties ​ ​ 5,198 ​ ​ 1,870 ​ Note payable, current portion, net ​ ​ — ​ ​ 20,138 ​ Total current liabilities ​ 24,348 ​ 38,849 ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt and notes payables, net ​ ​ 35,586 ​ ​ 34,703 ​ Non-current operating lease liabilities ​ ​ 5,289 ​ ​ 5,785 ​ Total liabilities ​ 65,223 ​ 79,337 ​ ​ ​ ​ ​ ​ ​ ​ ​ Commitments and contingencies ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Preferred stock and additional paid-in-capital, subject to possible redemption: $ 0.001 par value per share; 0 shares and 12,000 shares issued and outstanding as of December 31, 2025 and December 31, 2024 ​ ​ — ​ ​ 37,656 ​ Total temporary equity ​ ​ — ​ ​ 37,656 ​ ​ ​ ​ ​ ​ ​ ​ ​ Stockholders’ equity (deficit): ​ ​ ​ ​ ​ ​ ​ Common stock, $ 0.001 par value per share; 70,000,000 shares authorized as of December 31, 2025 and December 31, 2024; 41,265,778 shares and 29,767,561 shares issued and outstanding as of December 31, 2025 and December 31, 2024 ​ 41 ​ 30 ​ Additional paid-in capital ​ 1,077,923 ​ 931,289 ​ Accumulated other comprehensive income ​ ​ 69 ​ ​ — ​ Accumulated deficit ​ ( 1,016,987 ) ​ ( 947,874 ) ​ Total stockholders' equity (deficit) ​ 61,046 ​ ( 16,555 ) ​ Total liabilities, temporary equity and stockholders’ equity (deficit) ​ $ 126,269 ​ $ 100,438 ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ 88 Senseonics Holdings, Inc. ​ Consolidated Statements of Operations and Comprehensive Loss (in thousands, except for share and per share data) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended ​ ​ ​ December 31, ​ ​ ​ ​ ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue, net ​ $ 17,084 ​ ​ ​ $ 3,973 ​ ​ Revenue, net - related parties ​ ​ ​ 18,173 ​ ​ 18,499 ​ ​ Total revenue ​ ​ ​ 35,257 ​ ​ 22,472 ​ ​ Cost of sales ​ ​ ​ 19,494 ​ ​ 21,939 ​ ​ Gross profit ​ ​ ​ 15,763 ​ ​ 533 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and development expenses ​ ​ ​ 31,592 ​ ​ 41,144 ​ ​ Selling, general and administrative expenses ​ ​ ​ 52,508 ​ ​ 34,231 ​ ​ Operating loss ​ ​ ​ ( 68,337 ) ​ ​ ( 74,842 ) ​ ​ Other income (expense), net: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income ​ ​ ​ 4,198 ​ ​ 4,502 ​ ​ Interest expense ​ ​ ​ ( 4,951 ) ​ ​ ( 8,437 ) ​ ​ Gain on change in fair value of derivatives ​ ​ ​ — ​ ​ 102 ​ ​ Other expense ( income) ​ ​ ​ ( 23 ) ​ ​ 59 ​ ​ Total other expense, net ​ ​ ​ ( 776 ) ​ ​ ( 3,774 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Loss ​ ​ ​ ( 69,113 ) ​ ​ ( 78,616 ) ​ ​ Other comprehensive income ​ ​ ​ ​ ​ ​ ​ ​ ​ Unrealized gain on marketable securities ​ ​ ​ 69 ​ ​ 11 ​ ​ Total other comprehensive income ​ ​ ​ 69 ​ ​ 11 ​ ​ Total comprehensive loss ​ ​ $ ( 69,044 ) ​ $ ( 78,605 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net loss per common share ​ ​ $ ( 1.66 ) ​ $ ( 2.50 ) ​ ​ Basic weighted-average shares outstanding ​ ​ ​ 41,727,983 ​ ​ 31,486,079 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net loss per common share ​ ​ $ ( 1.66 ) ​ $ ( 2.50 ) ​ ​ Diluted weighted-average shares outstanding ​ ​ ​ 41,727,983 ​ ​ 31,486,079 ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ 89 Senseonics Holdings, Inc. ​ Consolidated Statements of Changes in Stockholders’ Equity (Deficit) ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Series B ​ ​ ​ ​ ​ ​ ​ Additional ​ Accumulated ​ ​ ​ ​ Total Convertible ​ ​ Common Stock ​ Paid-In ​ Other ​ Accumulated ​ Stockholders' ​ ​ Preferred Stock ​ ​ Shares ​ Amount ​ Capital ​ Comprehensive Income (Loss) ​ Deficit ​ Equity (Deficit) Temporary Equity Balance, December 31, 2023 ​ 26,518 ​ $ 27 ​ $ 905,038 $ ( 11 ) ​ $ ( 869,258 ) ​ $ 35,796 ​ $ 37,656 Issuance of common stock, net of issuance costs ​ 2,882 ​ ​ 3 ​ ​ 3,812 ​ ​ — ​ ​ — ​ ​ 3,815 ​ ​ — Issuance of the RD Shares and the PP Warrants, net of issuance costs ​ — ​ ​ — ​ ​ 14,549 ​ ​ — ​ ​ — ​ ​ 14,549 ​ ​ — Issuance of warrants, net of issuance costs ​ — ​ ​ — ​ ​ 149 ​ ​ — ​ ​ — ​ ​ 149 ​ ​ — Issuance of common stock for vested RSUs, ESPP purchases and stock option exercises ​ 483 ​ ​ — ​ ​ 179 ​ ​ — ​ ​ — ​ ​ 179 ​ ​ — Stock-based compensation expense ​ — ​ ​ — ​ ​ 9,225 ​ ​ — ​ ​ — ​ ​ 9,225 ​ ​ — Shares withheld related to net share settlement of equity awards ​ ( 116 ) ​ ​ ​ ​ ​ ( 1,663 ) ​ ​ — ​ ​ — ​ ​ ( 1,663 ) ​ ​ — Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 78,616 ) ​ ​ ( 78,616 ) ​ ​ — Other comprehensive income — ​ ​ — ​ ​ — ​ ​ 11 ​ ​ — ​ ​ 11 ​ ​ — Balance, December 31, 2024 ​ 29,767 ​ ​ 30 ​ ​ 931,289 ​ ​ — ​ ​ ( 947,874 ) ​ ​ ( 16,555 ) ​ ​ 37,656 Conversion of preferred stock ​ 1,518 ​ ​ 2 ​ ​ 37,654 ​ ​ — ​ ​ — ​ ​ 37,656 ​ ​ ( 37,656 ) Issuance of common stock, net of issuance costs 9,521 ​ ​ 9 ​ ​ 100,582 ​ ​ — ​ ​ — ​ ​ 100,591 ​ ​ — Issuance of warrants, net of issuance costs — ​ ​ — ​ ​ ( 163 ) ​ ​ — ​ ​ — ​ ​ ( 163 ) ​ ​ — Issuance of common stock for vested RSUs, ESPP purchases and stock option exercises ​ 656 ​ ​ — ​ ​ 143 ​ ​ — ​ ​ — ​ ​ 143 ​ ​ — Stock-based compensation expense ​ — ​ ​ — ​ ​ 10,153 ​ ​ — ​ ​ — ​ ​ 10,153 ​ ​ — Shares withheld related to net share settlement of equity awards ( 199 ) ​ ​ — ​ ​ ( 1,735 ) ​ ​ — ​ ​ — ​ ​ ( 1,735 ) ​ ​ — Net loss ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 69,113 ) ​ ​ ( 69,113 ) ​ ​ — Other comprehensive income — ​ ​ — ​ ​ — ​ ​ 69 ​ ​ — ​ ​ 69 ​ ​ — Balance, December 31, 2025 41,263 ​ $ 41 ​ $ 1,077,923 $ 69 ​ $ ( 1,016,987 ) ​ $ 61,046 ​ ​ — ​ ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ 90 Senseonics Holdings, Inc. ​ Consolidated Statements of Cash Flows ​ (in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ December 31, ​ ​ 2025 ​ 2024 ​ Cash flows from operating activities ​ ​ ​ ​ ​ ​ ​ ​ Net loss ​ $ ( 69,113 ) ​ $ ( 78,616 ) ​ Adjustments to reconcile net loss to net cash used in operating activities: ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization expense ​ 1,512 ​ ​ 1,475 ​ Non-cash interest expense (debt discount and deferred costs) ​ 1,393 ​ ​ 3,845 ​ Net amortization of premiums and accretion of discounts on marketable securities ​ ​ ( 1,421 ) ​ ​ ( 1,319 ) ​ Gain on change in fair value of derivatives ​ ​ — ​ ​ ( 102 ) ​ Stock-based compensation expense ​ 10,153 ​ ​ 9,225 ​ Provision for inventory obsolescence and losses ​ ​ 694 ​ ​ 3,942 ​ Allowance for credit losses ​ ​ 931 ​ ​ 220 ​ Changes in assets and liabilities: ​ ​ ​ ​ ​ ​ ​ Accounts receivable ​ ​ ( 6,765 ) ​ ​ ( 2,699 ) ​ Prepaid expenses and other current assets ​ 1,453 ​ ​ 1,164 ​ Inventory ​ ​ ( 2,975 ) ​ ​ 696 ​ Deposits and other assets ​ ​ 13 ​ ​ 1,737 ​ Accounts payable ​ 1,218 ​ ​ ( 1,828 ) ​ Accrued expenses and other liabilities ​ ​ 5,207 ​ ​ 2,621 ​ Accrued interest ​ ​ ( 490 ) ​ ​ 86 ​ Payments on lease liabilities ​ ​ ( 939 ) ​ ​ ( 912 ) ​ Net cash used in operating activities ​ ( 59,129 ) ​ ​ ( 60,465 ) ​ Cash flows from investing activities ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ ( 1,116 ) ​ ​ ( 2,239 ) ​ Purchase of marketable securities ​ ​ ( 100,693 ) ​ ​ ( 58,018 ) ​ Proceeds from sale and maturity of marketable securities ​ ​ 48,387 ​ ​ 93,095 ​ Net cash (used in) provided by investing activities ​ ( 53,422 ) ​ 32,838 ​ Cash flows from financing activities ​ ​ ​ ​ ​ ​ ​ Proceeds from at-the-market sales of common stock, net ​ ​ 28,321 ​ ​ 3,815 ​ Proceeds from issuance of common stock in Public Offering, net ​ ​ 52,122 ​ ​ — ​ Proceeds from issuance of common stock in Private Placement, net ​ ​ 20,148 ​ ​ — ​ Proceeds from exercise of stock options, RSUs and ESPP issuances, net ​ ​ 143 ​ ​ 179 ​ Proceeds from issuance of term loan, net ​ ​ — ​ ​ 9,950 ​ Taxes paid related to net share settlement of equity awards ​ ​ ( 1,735 ) ​ ​ ( 1,663 ) ​ Repayment of 2025 Notes ​ ​ ( 20,399 ) ​ ​ — ​ Proceeds from issuance of the RD Shares and the PP Warrants ​ ​ — ​ ​ 14,549 ​ Payment of debt modification costs ​ ​ ( 412 ) ​ ​ — ​ Net cash provided by financing activities ​ 78,188 ​ 26,830 ​ Net decrease in cash and cash equivalents ​ ( 34,363 ) ​ ( 797 ) ​ Cash and cash equivalents and restricted cash, at beginning of period ​ 74,912 ​ ​ 75,709 ​ Cash and cash equivalents and restricted cash, at ending of period ​ $ 40,549 ​ $ 74,912 ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of cash flow information ​ ​ ​ ​ ​ ​ ​ Cash paid during the period for interest ​ $ 4,049 ​ $ 4,506 ​ Supplemental disclosure of non-cash transactions ​ ​ ​ ​ ​ ​ ​ Issuance of common stock converted from preferred shares ​ ​ 30,372 ​ ​ — ​ Property and equipment purchases included in accounts payable and accrued expenses ​ ​ 54 ​ ​ 418 ​ Issuance of warrants for Loan and Security Agreement ​ ​ — ​ ​ 149 ​ Change in exercise price of warrants due to Amended Loan and Security Agreement ​ ​ ( 163 ) ​ ​ — ​ Acquisition of sensor insertion network assets in exchange for accounts receivable ​ ​ — ​ ​ 725 ​ Liabilities for contingent consideration ​ ​ — ​ ​ 50 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The accompanying notes are an integral part of these consolidated financial statements. ​ ​ ​ 91 Senseonics Holdings, Inc. ​ Notes to Consolidated Financial Statements ​ 1. Organization ​ Business ​ Senseonics Holdings, Inc., a Delaware corporation, is a medical technology company focused on the development and manufacturing of long-term, implantable continuous glucose monitoring systems to improve the lives of people with diabetes by enhancing their ability to manage their disease with relative ease and accuracy. ​ Senseonics, Incorporated is a wholly owned subsidiary of Senseonics Holdings, Inc. and was originally incorporated on October 30, 1996 and commenced operations on January 15, 1997. Eon Care Services, LLC and Eon Management Services, LLC are wholly owned subsidiaries of Senseonics, Incorporated formed in April 2024 and July 2024, respectively. Senseonics Holdings, Inc. and its consolidated subsidiaries and affiliated entities, including its consolidated VIEs are hereinafter collectively referred to as the “Company”, unless otherwise indicated or the context otherwise requires. ​ Reverse Stock Split ​ On October 17, 2025, at 4:05 p.m. Eastern Time (the “Effective Time”), the Company effected a 1-for- 20 reverse stock split of the Company’s issued and outstanding shares of common stock (the “Reverse Stock Split”) and a proportionate reduction in the total number of authorized shares of its common stock from 1,400,000,000 shares to 70,000,000 shares, as authorized by the Company’s stockholders at the Company’s 2025 special meeting of stockholders held on September 29, 2025 and approved by the Company’s board of directors on October 3, 2025. As a result of the Reverse Stock Split, every 20 shares of issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value of $ 0.001 per share. No fractional shares were issued as a result of the Reverse Stock Split. Shareholders entitled to a fractional share received a cash payment based on the average closing sales price of the Company’s common stock on The NYSE American for the five trading days immediately preceding the Effective Time. All historical share and per share amounts reflected throughout the financial statements have been adjusted to reflect the Reverse Stock Split. Proportionate adjustments were made to the per share exercise price and the number of shares of common stock that may be purchased upon exercise of outstanding stock options and warrants and the number of shares of common stock reserved for future issuance under the Company’s equity compensation plans. ​ Transfer to Nasdaq Stock Exchange ​ On November 14, 2025, the Company provided written notice to NYSE American of its determination to make a voluntary withdrawal of the Company’s common stock from the NYSE American to the Nasdaq Global Select Market (“Nasdaq”). The Company ended trading on the NYSE American effective after the market closed on November 14, 2025 and began trading on Nasdaq under the existing ticker symbol “SENS” on November 17, 2025. ​ 2. Liquidity, Capital Resources, and Going Concern ​ The Company’s operations are subject to certain risks and uncertainties including, among others, current and potential competitors with greater resources, limited operating history as a commercial-stage company and uncertainty of future profitability. Since inception, the Company has suffered substantial operating losses, principally from expenses associated with the Company’s research and development programs and commercial launch of the Eversense® 365 CGM System (for use up to one-year ) in the United States, the Eversense® E3 (for use up to six months) in Europe and expenses incurred for our legacy product versions. ​ The Company has not generated significant profit from the sale of products and its ability to generate revenue and achieve profitability largely depends on the Company’s ability to successfully expand the commercialization of 92 Eversense, continue the development of its products and product upgrades, and to obtain necessary regulatory approvals or certifications for the sale of those products. These activities including the costs associated with our plans to transition the commercial activities back to the Company (as further described in Note 4) will require significant uses of working capital through 2026 and beyond. The Company generated total net loss of $ 69.1 million for the twelve months ended December 31, 2025 and had an accumulated deficit of $ 1.0 billion at December 31, 2025. To date, the Company has funded its operations principally through the issuance of preferred stock, common stock, warrants, convertible notes and debt. As of December 31, 2025, the Company had unrestricted cash, cash equivalents and marketable securities of $ 94.0 million. ​ The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern. ​ Based on the Company’s current operating plan including expected capital investments required to assume commercialization and distribution responsibilities, existing unrestricted cash, cash equivalents and marketable securities, minimum cash requirements and satisfaction of performance milestones to comply with debt covenants under its Amended Loan and Security Agreement as discussed in Note 13, the Company has determined that it may not meet its debt covenants as early as the third quarter of 2026. Further, the Company will require additional liquidity to continue its operations over the next twelve months. Therefore, the Company has concluded that substantial doubt exists regarding its ability to continue as a going concern for the one-year period following the date these consolidated financial statements are issued. The Company is currently evaluating strategies to obtain the required additional funding for future operations. The Company anticipates that the principal uses of cash in the future will be primarily fund our operations, working capital needs, capital expenditures and other strategic initiatives. The Company’s ability to continue to fund our operations and meet capital needs will depend on the ability to successfully obtain funding from public or private debt and equity financings and other sources of capital. There can be no assurance that additional capital will be available on acceptable terms, or at all. ​ The consolidated financial statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that may be necessary if the Company were unable to continue as a going concern. ​ Actions taken by the Company with regards to liquidity and to manage our cash flows during the years ended December 31, 2025 and 2024, included, but were not limited to the following: ​ On September 8, 2023 (the “Effective Date”), the Company entered into a loan agreement (the “Loan and Security Agreement”) with the several institutions or entities party thereto (collectively, the “Lenders”) and Hercules Capital, Inc., a Maryland corporation (“Hercules”) in its capacity as administrative agent and collateral agent for itself and the Lenders, pursuant to which the Lenders agreed to make available to the Company up to $ 50.0 million in senior secured term loans (the “Term Loan Facility”), consisting of (i) an initial term loan of $ 25.0 million (the “Tranche 1 Loan”), which was funded on the Effective Date and (ii) two additional tranches of term loans in the amounts of up to $ 10.0 million (the “Tranche 2 Loan”) and $ 15.0 million (the “Tranche 3 Loan”), respectively, which will become available to the Company upon the Company’s satisfaction of certain terms and conditions set forth in the Loan and Security Agreement. In December 2023, we met the terms and conditions to draw on the Tranche 2 Loan and the loan was funded on January 2, 2024 in an amount of $ 10.0 million. On September 3, 2025 (the “2025 Effective Date”), the Company amended the Loan and Security Agreement (the “Amended Loan and Security Agreement”) with the Lenders and Hercules. The 2025 Amended Loan and Security Agreement increased the total loan commitment under the facility from $ 50.0 million to $ 100.0 million (collectively, the “2025 Term Loans”) and made certain other modifications to the terms and conditions of the arrangement, as further described in Note 13. The 2025 Term Loans mature on September 3, 2029 (the “Maturity Date”). ​ In August 2025, the Company entered into an at-the-market sales agreement (the “Sales Agreement”) with TD 93 Securities (USA) LLC (“TD Cowen”), under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $ 100.0 million through TD Cowen as its sales agent in an “at the market” offering. TD Cowen will receive commissions up to 3.0 % of the gross proceeds of any common stock sold through TD Cowen under the Sales Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 6, 2025. During the year ended December 31, 2025, the Company received approximately $ 2.4 million proceeds from the sale of 334,330 shares under the Sales Agreement, after deducting sales commissions and offering expenses. ​ On May 15, 2025, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with several underwriters for the sale of 5,000,000 shares of its common stock (the “Public Offering”), at a public offering price of $ 10.00 per share (the “Public Offering Price”). Under the terms of the Underwriting Agreement, the Company also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock at the Public Offering Price, which the underwriters exercised in full. The Company received aggregate gross proceeds from the Public Offering of $ 57.5 million. The Company also entered into a securities purchase agreement with Abbott Laboratories (“Abbott”) pursuant to which the Company agreed to issue and sell 2,026,963 shares of its common stock substantially concurrently with the Public Offering, at the Public Offering Price, to Abbott for an aggregate purchase price of approximately $ 20.3 million in a private placement (the “Private Placement”). The Public Offering and Private Placement closed on May 19, 2025 and May 20, 2025, respectively, and the Company received net proceeds of approximately $ 52.1 million and $ 20.1 million, respectively, after deducting underwriting discount, commissions, and offering expenses. ​ On October 24, 2024, the Company entered into a securities purchase agreement with certain institutional investors to issue and sell (i) in a registered direct offering an aggregate of 2,285,714 shares of the Company’s common stock, $ 0.001 par value per share (the “RD Shares”) and (ii) in a concurrent private placement, warrants to purchase an aggregate of 2,285,714 shares of common stock (the “PP Warrants”). The combined purchase price of each RD Share and accompanying PP Warrant was $ 7.00 per share for total gross proceeds of $ 16.0 million. The RD Shares and the PP Warrants were immediately separable and were issued separately. The PP Warrants have an exercise price of $ 7.00 per share, were non-exercisable for the first six months after issuance and expire five years from the date of initial exercisability. The offering closed on October 28, 2024, and the Company received proceeds of approximately $ 14.8 million after payment of fees to the placement agent, but before payment of any additional expenses incurred by the Company in connection with the transaction. The proceeds were allocated to the RD Shares and PP Warrants based on the relative fair values of the instruments themselves at the time of issuance. ​ In August 2023, the Company entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with Goldman Sachs & Co. LLC (“GS”), under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $ 106.6 million through GS as its sales agent in an “at the market” offering. GS received commissions up to 3.0 % of the gross proceeds of any common stock sold through GS under the Equity Distribution Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 10, 2023. On October 24, 2024, the Company amended the Equity Distribution Agreement with GS to reduce the maximum amount of shares issuable thereunder to $ 55.0 million. From March 2024 through March 2025, the Company received approximately $ 30.8 million in net proceeds from the sale of 2,006,528 shares under the Equity Distribution Agreement, after deducting sales commissions and offering expenses. On May 15, 2025, in connection with the Public Offering and Private Placement, the Equity Distribution Agreement was terminated. ​ On November 9, 2020, the Company entered into an Equity Line Agreement with Energy Capital (the “Equity Line Agreement”), pursuant to which Energy Capital committed to purchase up to an aggregate of $ 12.0 million of shares of our newly designated Series B convertible Preferred Stock (“Series B Preferred Stock”), at our request from time to time during the 24-month term of the Equity Line Agreement. Beginning on January 1, 2022, since there had been no sales of the Series B Preferred Stock pursuant to the Equity Line Agreement, Energy Capital had the right, at its sole discretion to purchase up to $ 12.0 million of Series B Preferred Stock under the Equity Line Agreement at a purchase price of $ 1,000 per share of Series B Preferred Stock initially convertible into common stock, beginning six months after the date of its issuance, at a conversion price of $ 7.90 per share. On November 7, 2022, Energy Capital 94 exercised in full its right to purchase $ 12.0 million of Series B Preferred Stock. In the first quarter of 2025, Energy Capital converted its Series B Preferred Stock in full into 1,518,602 shares of common stock. ​ 3. Summary of Significant Accounting Policies ​ Basis of Presentation ​ The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. ​ The consolidated financial statements reflect the accounts of Senseonics Holdings, Inc. and its consolidated subsidiaries and affiliated entities, including its variable interest entities (“VIEs”) in which the Company is the primary beneficiary. All intercompany balances and transactions are eliminated upon consolidation. ​ In November 2024, Eon Management Services, LLC entered into management services agreements (the “Administrative Agreement”) for an initial fixed term of 10 years with several professional corporations created to support patient access to the Eversense system by contracting nurse practitioners and other healthcare professionals to perform Eversense insertion procedures and other clinical activities. Eon Care Clinicians PC, Eon Care Clinicians of NJ PC, and Eon Care Clinicians of CA PC (collectively referred to as “Eon Care PCs”) are the professional corporations that were established pursuant to the requirements of its respective domestic jurisdiction governing the corporate practice of medicine. ​ In accordance with relevant accounting guidance, the Eon Care PCs have been determined to be VIEs of the Company, as the Company is its primary beneficiary with the ability, through the Administrative Agreement to direct the activities (excluding clinical activities) that most significantly affect the Eon Care PCs financial performance and have the obligation to absorb losses of, or the right to receive benefits from, the Eon Care PCs that could potentially be significant to it. The assets of the consolidated VIEs may only be used to settle obligations of the consolidated VIEs, if any. Our variable interest entities’ assets, liabilities, and results of operations were not material to our consolidated financial results. ​ Use of Estimates ​ The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses during the reporting period. In the accompanying consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, recoverability of long-lived assets and definite-lived intangible assets, deferred taxes and valuation allowances, derivative assets and liabilities, obsolete inventory, warranty obligations, variable consideration related to revenue, allowance for credit losses, depreciable lives of property and equipment, and accruals for clinical study costs, which are accrued based on estimates of work performed under contract. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses. Actual results could differ from those estimates; however, management does not believe that such differences would be material. ​ Cash and Cash Equivalents and Concentration of Credit Risk ​ The Company considers highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. Restricted cash represents cash and cash equivalents that are restricted to withdrawal or use as of the reporting date. The Company’s restricted cash relates to collateral for procurement cards issued by a U.S. commercial bank. Cash, cash equivalents and restricted cash consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 95 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Cash ⁽¹⁾ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 6,610 ​ $ 3,984 ​ Money market funds ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 33,624 ​ ​ 70,613 ​ Restricted cash ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 315 ​ ​ 315 ​ Cash, cash equivalents and restricted cash ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 40,549 ​ $ 74,912 ​ (1) Includes overnight repurchase agreements. ​ Marketable Securities ​ Marketable securities typically consist of commercial paper, corporate debt securities, asset backed securities and government and agency securities. The Company’s investments are classified as available for sale. Such securities are carried at fair value, with any unrealized holding gains or losses reported, net of any tax effects reported, as accumulated other comprehensive income. Realized gains and losses and declines in value judged to be other-than-temporary, if any, are included in consolidated results of operations. A decline in the market value of any available for sale security below cost that is deemed to be other-than-temporary results in a reduction in fair value, which is charged to earnings in that period, and a new cost basis for the security is established. Dividend and interest income is recognized when earned. The cost of securities sold is calculated using the specific identification method. We classify all available-for-sale marketable securities with maturities greater than one year from the balance sheet date as non-current assets. We do not generally intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. ​ Inventory and Obsolescence ​ Inventory is valued at the lower of cost or net realizable value. Cost is determined using the standard cost method that approximates first in, first out. The Company records an adjustment to reduce the value of inventory for items that are potentially obsolete, where standard costs require adjustment to the net realizable value, and are in excess of future demand taking into consideration the product shelf life. The sensor manufacturing process can span several months, involves various contract manufacturers and includes raw components with long lead times, often resulting in significant work-in-progress inventory. However, expiry does not commence until the chemistry is applied to the sensor. The Company is able to isolate pre-chemistry sensor inventory in progress from post-chemistry sensor inventory in progress and finished goods to assess against demand forecasts and customer dating requirements for potential excess or obsolete inventory. The Company’s estimates are based on information known as of the balance sheet date and include factors such as anticipated future usage and sales, potential for external unfavorable conditions such as import holds or quality issues, and planned product upgrades. However, if actual product quality or conditions differ from the Company’s assumptions, additional inventory adjustments that would increase cost of sales could be required. ​ The Company capitalizes inventory costs associated with pre-launch inventory upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized. The determination to capitalize inventory costs is based on the particular facts and circumstances relating to the product. Inventory costs incurred prior to regulatory approval are expensed as research and development expenses. ​ Accounts Receivable ​ The Company grants credit to various customers in the normal course of business. Accounts receivable consist of amounts due from distributors and consignment customers. These receivables are reduced by an expected credit loss at the time revenue is recognized. Uncollectible accounts are written off against the credit loss reserve after appropriate collection efforts have been exhausted and when it is deemed that a balance is uncollectible. At December 31, 2025 and December 31, 2024, the credit loss reserve was $ 1.3 million and $ 0.3 million, respectively. ​ 96 Property and Equipment, net ​ Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which is generally between three to seven years , and is recorded within operating expenses and cost of goods sold in the consolidated statements of operations and comprehensive loss. Upon disposition of the assets, the costs and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations. Repairs and maintenance costs are included as expense in the accompanying statement of operations. ​ Intangibles ​ The Company amortizes intangible assets acquired using the straight-line method over the estimated economic useful life. The useful life is determined after considering the specific facts and circumstances related to the use of the intangible asset such as the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's strategy for use of the asset, and any other factors which could impact the useful life of the asset. ​ Leases ​ The Company evaluates whether contractual arrangements contain leases at the inception of such arrangements. Specific considerations include whether the Company can control the underlying asset and has the right to obtain substantially all of the economic benefits or outputs from the asset. Substantially all of the Company’s leases are long-term operating leases with fixed payment terms. The Company currently does not have financing leases. Right-of-use (“ROU”) operating lease assets represent the Company’s right-to-use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments. Operating lease expense is recognized on a straight-line basis over the lease term and is included in general and administrative expenses on the Company’s consolidated statement of operations and comprehensive loss. Options to extend the leases or terminate the leases early are only included in the lease term when it is reasonably certain that the option will be exercised. ​ The Company recognizes a ROU lease asset and liability as of the lease commencement date at the present value of the lease payments over the lease term. If the discount rate in the lease agreement is not implicit, the Company estimates the incremental borrowing rate based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term. Lease and non-lease components are accounted for as a single component for facility leases. Leases with an initial term of 12 months or less are expensed over the related term. ​ Impairment of Long - Lived Assets ​ Management reviews long-lived assets, including property and equipment, intangible assets, and right-of-use assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of the long-lived asset is measured by a comparison of the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. There were no impairment indicators identified in 2025 or 2024. ​ Product Warranty Obligations ​ The Company provides a warranty of one year on its smart transmitters. Additionally, the Company may also replace Eversense system components that do not function in accordance with the product specifications. Estimated replacement costs are recorded at the time of shipment as a charge to cost of sales in the consolidated statement of 97 operations and are developed by analyzing product performance data and historical replacement experience, including comparing actual return management authorizations to revenue. ​ The following table provides a reconciliation of the change in estimated warranty liabilities for the years ended December 31, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ December 31, ​ ​ ​ 2025 ​ ​ 2024 Balance at beginning of the period ​ $ 406 ​ $ 514 Provision for warranties during the period ​ ​ 408 ​ ​ 311 Settlements made during the period ​ ​ ( 366 ) ​ ​ ( 419 ) Balance at end of the period ​ $ 448 ​ $ 406 ​ ​ Revenue Recognition We generate product revenue from sales of the Eversense system and related components and supplies to Ascensia, through the Commercialization Agreement (amended effective January 1, 2026 in connection with the Master Asset Purchase Agreement), third-party distributors outside the United States and to strategic fulfillment partners in the United States (collectively “Customers”), who then resell the products to health care providers and patients. We are paid for our sales directly to the Customers, regardless of whether or not the Customers resell the products to health care providers and patients. The Company also generates product revenue from sales of the Eversense system and related components and supplies through a consignment model with our network of independent healthcare professionals in the United States and revenue is recognized when the product is consumed by a patient. ​ Revenue from product sales is recognized at a point in time when the Customers obtain control of our product based upon the delivery terms as defined in the contract at an amount that reflects the consideration which we expect to receive in exchange for the product. Contracts with our distributors contain performance obligations, mostly for the supply of goods, and is typically satisfied upon transfer of control of the product. Customer contracts do not include the right to return unless there is a product issue, in which case we may provide replacement product. Product conformity guarantees do not create additional performance obligations and are accounted for as warranty obligations in accordance with guarantee and loss contingency accounting guidance. ​ Under the consignment model, small quantities of inventory are held at healthcare provider locations to ensure availability when a patient is identified. No revenue is recognized upon delivery of our products to the healthcare provider locations, as we retain the ability to control the inventory. Rather, revenue is recognized when the product is consumed by a patient. For the twelve months ended December 31, 2025 and December 31, 2024, the Company derived 41 % and 15 % of total revenue, respectively from consignment sales. ​ Our contracts may contain some form of variable consideration such as prompt-pay discounts, tier-volume price discounts and for the Commercialization Agreement, revenue share. Variable consideration, such as discounts and prompt-pay incentives, are treated as a reduction in revenue and variable considerations, such as revenue share, is treated as an addition in revenue when the product sale is recognized. The amount of variable consideration that is included in the transaction price may be constrained and is included in revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period, when the uncertainty associated with the variable consideration is subsequently resolved. Estimating variable consideration and the related constraint requires the use of management judgment. Depending on the variable consideration, we develop estimates for the expected value based on the terms of the agreements, historical data, geographic mix, reimbursement rates and market conditions. ​ Contract assets consist of unbilled receivables from customers and are recorded at net realizable value and relate to the revenue share variable consideration from the Commercialization Agreement. ​ 98 Cost of Sales ​ The Company uses third-party contract manufacturers to manufacture Eversense and related components and supplies. Cost of sales includes raw materials, contract manufacturing service fees, expected warranty costs, recall costs, product obsolescence, scrap, third-party warehousing, shipping and handling expenses associated with product delivery, and employee-related costs of the internal supply chain and manufacturing team. ​ Research and Development Expenses ​ Research and development expenses consist of expenses incurred in performing research and development activities in developing Eversense, including clinical trials and feasibility studies, and partnerships for strategic initiatives including insulin delivery and new indications. Research and development expenses include compensation and benefits for research and development employees including stock-based compensation, cost of laboratory supplies, clinical trial and related clinical manufacturing expenses, costs related to regulatory operations, fees paid to contract research organizations and other consultants, and other outside expenses. Research and development expenses are expensed as incurred. ​ Selling, General and Administrative Expenses ​ Selling, general and administrative expenses consist primarily of salaries, commissions, and other related costs, including stock-based compensation, for personnel in the Company’s sales and marketing, executive, finance, accounting, business development, information technology, and human resources functions. Other significant costs include information technology, website design and advertising, educational and promotional materials, tradeshow expenses, marketing programs, facility costs, legal fees relating to patent and corporate matters, and fees for accounting and consulting services. ​ Advertising Costs ​ The Company expenses advertising costs as they are incurred. Advertising expenses were $ 11.2 million for the year ended December 31, 2025 and were no t significant for the year ended December 31, 2024. These costs are included in “selling, general and administrative expenses” in the accompanying consolidated statements of operations and comprehensive loss. ​ Stock - Based Compensation ​ The Company accounts for stock-based compensation related to stock option grants and restricted stock units under stock incentive plans, purchases under the employee stock purchase plan, as well as inducement stock grants based on the fair value of those awards at the date of grant. The estimated fair value of stock options on the date of grant is amortized on a straight-line basis over the requisite service period of the individual award, which typically equals the vesting period. Forfeitures are accounted for in the period in which they occur. ​ The Company uses the Black-Scholes-Merton option pricing model (“Black-Scholes Model”) to determine the fair value of stock-option awards. Valuation of stock awards requires management to make assumptions and to apply judgment to determine the fair value of the awards. These assumptions and judgments include estimating the fair value of the Company’s common stock, the risk-free interest rate, future volatility of the Company’s stock price, dividend yields, and the expected life of the stock-option awards. Changes in these assumptions can affect the fair value estimate. ​ The risk-free interest rate assumption is based on observed interest rates for constant maturity U.S. Treasury securities consistent with the expected life of employee stock options. The expected life represents the period of time the stock options are expected to be outstanding and is based on the simplified method. Under the simplified method, the expected life of an option is presumed to be the mid-point between the vesting date and the end of the contractual term. The Company uses the simplified method due to the lack of sufficient historical exercise data to provide a reasonable basis upon which to otherwise estimate the expected life of the stock options. Expected volatility is based on the daily closing prices of the Company as well as the daily closing prices of a peer group of comparable publicly traded 99 companies in similar stages of development. The Company has assumed no dividend yield because it does not expect to pay dividends in the future, which is consistent with its history of not paying dividends. ​ Income Taxes ​ The Company uses the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that are in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The measurement of a deferred tax asset is reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. ​ Management uses a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return, as well as guidance on derecognition, classification, interest and penalties and financial statement reporting disclosures. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. In the ordinary course of business, transactions occur for which the ultimate outcome may be uncertain. Management does not expect the outcome related to accrued uncertain tax provisions to have a material adverse effect on the Company’s financial position, results of operations or cash flows. The Company recognizes interest and penalties accrued on any unrecognized tax positions as a component of income tax expense. ​ The Company is subject to taxation in various jurisdictions in the United States and remains subject to examination by taxing jurisdictions for the year 2005 and all subsequent periods due to the availability of NOL and tax credit carryforwards. In addition, all of the net operating losses and research and development credit carryforwards that may be used in future years are still subject to adjustment. ​ Fair Value of Financial Instruments ​ Under ASC 825, the Company is required to disclose the fair value of financial instruments that are not recognized at fair value in the statement of financial position for which it is practicable to estimate that value. The carrying amounts of cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value because of their short maturities. The Company’s term loan under the Amended Loan and Security Agreement and warrants is recorded at historical cost, net of discounts. The fair value for debt is estimated by a discounted cash flow model using a discount rate equal to the rate currently offered on similar borrowings. ​ Recent Accounting Pronouncements ​ Recently Adopted ​ In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), the objective of which is to enhance the transparency of income tax disclosures by requiring greater disaggregation of information presented and consistent categories in the rate reconciliation. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, or our fiscal year 2025, using either a prospective or retrospective transition method, and early adoption is permitted. We adopted ASU 2023-09 on December 31, 2025 on a retrospective basis and the adoption resulted in enhanced disclosures as included in Note 16, Income Taxes. ​ Not Yet Adopted ​ In November 2024, the FASB issued Accounting Standards Update (“ASU”) No. 2024-03, Disaggregation of Income Statement Expenses (DISE) (“ASU 2024-03”), the objective of which is to provide greater transparency about an entity’s expenses to allow investors to better understand an entity’s performance, assessing its prospects for future cash flows, and comparing its performance both over time and with that of other entities. ASU2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. 100 The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is currently evaluating the impact of the new standard on its financial statements and disclosures. ​ ​ 4. Revenue Recognition ​ Revenues by geographic region ​ The following table sets forth net revenues derived from the Company’s two primary geographical markets, the United States and outside of the United States, based on the geographic location to which the Company delivers the product, for the years ended December 31, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ December 31, 2024 ​ ​ ​ ​ % ​ ​ ​ ​ % ​ (Dollars in thousands) Amount ​ of Total ​ ​ Amount ​ of Total ​ Revenue, net: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ United States $ 27,909 ​ 79.2 % ​ $ 15,278 ​ 68.0 % Outside of the United States ​ 7,348 ​ 20.8 ​ ​ ​ 7,194 ​ 32.0 ​ Total $ 35,257 ​ 100.0 % ​ $ 22,472 ​ 100.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contract Assets ​ Contract assets consist of unbilled receivables from customers and are recorded at net realizable value. Included in accounts receivable, net as of December 31, 2025 and December 31, 2024 are unbilled accounts receivable of $ 2.1 million and less than $ 0.1 million, respectively, which are related to the timing of billings. Included in accounts receivable – related parties, net are unbilled accounts receivable of $ 2.0 million and $ 0.9 million for the periods ended December 31, 2025 and 2024, respectively, which are related to revenue share variable consideration from the Commercialization Agreement. The Company expects to invoice and collect all unbilled accounts receivable within twelve months. ​ Concentration of Revenues and Customers ​ A significant portion of the Company’s revenue is derived from one customer, Ascensia. For the year ended December 31, 2025 and 2024, sales to Ascensia accounted for 53 % and 82 % of total revenue, respectively. ​ A portion of the Company’s revenue is earned via consignment arrangements with healthcare providers. For the years ended December 31, 2025 and 2024, sales under consignment arrangements accounted for 41 % and 15 % of total revenue, respectively. Ascensia earns a commission on sales made through these consignment arrangements for the support provided by their sales reps and commercial organization. Revenues for these corresponding periods represent sales of sensors, transmitters and miscellaneous Eversense System components. ​ Termination and Transition of the Commercialization Agreement ​ On September 3, 2025, the Company and Ascensia entered into a memorandum of understanding related to the transition of commercial operations for Eversense from Ascensia back to the Company. On December 31, 2025, the parties executed a Master Asset Purchase Agreement, pursuant to which the Company acquired certain U.S. commercial assets and assumed certain related liabilities, with the transaction closing on January 1, 2026. In connection with the agreement, the parties entered into an Amended and Restated Collaboration and Commercialization Agreement (the “A&R Commercialization Agreement”), which terminated Ascensia’s rights to market Eversense products in the United States and made Ascensia’s European commercialization rights non-exclusive. ​ Following the U.S. Closing, Ascensia has no further rights to revenues from sales of Eversense products in the United States, and effective January 1, 2026, the Company is entitled to 100 % of revenues from sales in the European 101 Territories, subject to transitional arrangements. As a result of the termination and modification of the arrangement, the Company reassessed its remaining performance obligations and adjusted related contract assets and contract liabilities in accordance with ASC 606. In connection with the termination, the Company accepted the return of certain unsold inventory held by Ascensia, reversed $ 0.4 million of revenue, and recorded the returned inventory at its estimated net realizable value. ​ ​ 5. Net Loss per Share ​ Basic net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. An aggregate of 4,197,554 shares of common stock issuable upon the exercise of the PHC Exchange Warrant Shares and the Purchase Warrant held by PHC are included in the number of outstanding shares used for the computation of basic net loss per share for both years presented. Since the shares are issuable for little or no consideration, sometimes referred to as “penny warrants”, they are considered outstanding in the context of earnings per share, as discussed in ASC 260-10-45-13. ​ Dilutive net loss per share is computed using the weighted average number of common shares outstanding during the period and, when dilutive, potential common share equivalents. Potentially dilutive common shares consist of shares issuable from restricted stock units, stock options, warrants and the Company’s convertible instruments. Potentially dilutive common shares issuable upon vesting of restricted stock units and exercise of stock options and warrants are determined using the average share price for each period under the treasury stock method. Potentially dilutive common shares issuable upon conversion of the Company’s convertible instruments are determined using the if converted method. The if-converted method assumes conversion of convertible securities at the beginning of the reporting period. Interest expense, dividends, and the changes in fair value measurement recognized during the period are added back to the numerator. The denominator includes the common shares issuable upon conversion of convertible securities. ​ In periods of net loss, all potentially dilutive common shares are excluded from the computation of the diluted net loss per share for those periods, as the effect would be anti-dilutive. ​ (Dollars, in thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ 2024 ​ ​ ​ ​ ​ ​ Net loss $ ( 69,113 ) ​ $ ( 78,616 ) Basic weighted average common shares outstanding ​ 41,727,983 ​ ​ 31,486,079 Net loss per share: ​ ​ ​ ​ ​ Basic and diluted $ ( 1.66 ) ​ $ ( 2.50 ) ​ Outstanding anti-dilutive securities not included in the diluted net loss per share calculations were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ 2024 Stock-based awards ​ 2,596,450 ​ ​ 1,816,859 2025 Notes ​ — ​ ​ 790,659 Series B Preferred Stock ​ — ​ ​ 1,518,603 Warrants ​ 2,357,747 ​ ​ 2,357,747 Total anti-dilutive shares outstanding ​ 4,954,197 ​ ​ 6,483,868 ​ ​ ​ ​ ​ ​ ​ 102 ​ 6. Marketable Securities ​ Marketable securities as of December 31, 2025, were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ ​ Gross ​ Gross ​ Estimated ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Market ​ ​ ​ ​ Cost ​ ​ ​ Gains ​ ​ ​ Losses ​ ​ ​ Value Commercial Paper ​ $ 6,396 ​ ​ 3 ​ ​ — ​ ​ 6,399 Corporate debt securities ​ $ 12,452 ​ ​ 18 ​ ​ — ​ ​ 12,470 Government and agency securities ​ $ 34,879 ​ ​ 48 ​ ​ — ​ ​ 34,927 Total ​ $ 53,727 ​ $ 69 ​ $ — ​ $ 53,796 ​ There were no marketable securities held as of December 31, 2024. ​ The following are the scheduled maturities as of December 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net ​ ​ Fair ​ ​ ​ ​ Carrying Amount ​ ​ Value ​ 2026 ​ ​ ​ $ 53,727 ​ ​ 53,796 ​ Total ​ ​ ​ $ 53,727 ​ $ 53,796 ​ ​ ​ The Company periodically reviews its portfolio of debt securities to determine if any investment is impaired due to credit loss or other potential valuation concerns. For debt securities where the fair value of the investment is less than the amortized cost basis , the Company assesses at the individual security level, for various quantitative factors including, but not limited to, the nature of the investments, changes in credit ratings, interest rate fluctuations, industry analyst reports, and the severity of impairment. Unrealized losses on available-for-sale securities at December 31, 2025 were not significant and were primarily due to changes in interest rates and not due to increased credit risk associated with specific securities. The Company does not intend to sell these impaired investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. ​ 7. Inventory, net ​ Inventory, net consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Work-in-process ​ $ 3,631 ​ $ 3,213 Finished goods ​ ​ ​ ​ 2,580 ​ ​ ​ ​ 781 Raw materials ​ 492 ​ 427 Total ​ $ 6,703 ​ $ 4,421 ​ The Company recorded $ 0.7 million and $ 4.3 million in cost of sales for the years ended December 31, 2025 and 2024, respectively, to reduce the value of inventory for items that are potentially obsolete due to expiry, in excess of product demand, or to adjust costs to their net realizable value. Costs incurred in 2024 were primarily write offs of our existing Eversense E3 systems following obtaining FDA 510(k) clearance to sell Eversense 365. In addition, we incurred $ 0.6 million in cost of sales for the year ended December 31, 2024 due to impairment losses on prepayments to suppliers as the result of the transition from Eversense E3 to Eversense 365. ​ 103 The Company capitalizes inventory costs associated with products when future commercialization is considered probable and the future economic benefit is expected to be realized, which is typically when regulatory approval is obtained. As such, the Company began capitalizing costs related to the 365-day product inventory in September 2024 upon successfully obtaining FDA 510(k) clearance. Prior to regulatory approval, the Company expensed all inventory-related costs, including that used for clinical development, to research and development expenses and this has resulted in lower cost of sales as the pre-clearance inventory is sold to customers. The total product costs expensed to research and development expenses prior to the clearance were $ 1.9 million and $ 0.3 million for the years ended December 31, 2024 and 2023, respectively. If we were to have included those costs previously expensed as a component of cost of sales, our cost of sales for the year ended December 31, 2025 would have been $ 0.6 million higher. The previously expensed inventory also reduced our cost of sales for the year ended December 31, 2024 by approximately $ 1.6 million. As of December 31, 2025, this inventory has been consumed and we do not anticipate an impact on cost of sales for the remainder of 2025 resulting from the sale of pre-approval inventory that was expensed as incurred in previous periods. ​ ​ ​ 8. Prepaid expenses and other current assets ​ Prepaid expenses and other current assets consisted of the following as of December 31, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2025 ​ 2024 Contract manufacturing⁽¹⁾ ​ $ 1,949 ​ $ 2,720 Clinical and Preclinical ​ ​ 883 ​ ​ 689 Sales and Marketing ​ ​ 492 ​ ​ 104 Interest receivable ​ 311 ​ — IT and software ​ ​ ​ ​ 310 ​ 228 Insurance ​ ​ 113 ​ ​ 97 Rent and utilities ​ ​ 102 ​ ​ 99 Tax credits receivable (2) ​ ​ — ​ ​ 1,793 Accounting and Audit ​ ​ — ​ ​ 71 Other ​ ​ 206 ​ ​ 18 Total prepaid expenses and other current assets ​ $ 4,366 ​ $ 5,819 ​ ​ ​ ​ ​ (1) Includes deposits to contract manufacturers for manufacturing process (2) Refundable employee retention credits, enacted under the CARES Act. ​ ​ ​ 9. Property, Equipment and Intangible Assets, net ​ Property, equipment and intangible assets, net consisted of the following as of December 31, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2025 ​ 2024 ​ Property and equipment ​ ​ ​ ​ Machinery and laboratory equipment ​ ​ ​ $ 3,904 ​ ​ ​ $ 3,156 ​ Office furniture and equipment ​ 611 ​ 606 ​ Leasehold improvements ​ 2,200 ​ 2,201 ​ Intangible assets ​ ​ ​ ​ ​ ​ Sensor insertion network assets ​ ​ 800 ​ ​ 800 ​ Less: Accumulated depreciation and amortization ​ ( 3,315 ) ​ ( 2,689 ) ​ Property, equipment and intangible assets, net ​ $ 4,200 ​ $ 4,074 ​ ​ Depreciation and amortization expense for the years ended December 31, 2025 and 2024 was $ 0.6 million and $ 0.6 million, respectively. There were no material disposals during 2025. During 2024, the Company disposed of fully depreciated office furniture and equipment in the amount of $ 0.4 million. There was no gain or loss on these disposals. ​ 104 In November 2024, the Company acquired the sensor insertion network assets of NPG to directly contract with healthcare providers under our Eon Care subsidiaries. The purchase price of $ 0.7 million was satisfied in exchange for the settlement of a portion of NPG’s outstanding accounts receivable balance. The total value of the sensor insertion network assets of $ 0.8 million includes the agreed-upon purchase price, the fair value of contingent consideration, and transaction costs. These intangible assets will allow us to further expand patient access to sensor insertion options and enhance convenience. The intangible assets will be amortized over a 5-year period. Over the next five years, the annual amortization expense for these finite life intangible assets will total approximately $ 0.6 million, as follows: less than $ 0.2 million in each of the years 2026-2028 and $ 0.1 million in 2029. ​ ​ 10. Accrued Expenses and Other Current Liabilities ​ Accrued expenses and other current liabilities (including related party amounts) consisted of the following as of December 31, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2025 ​ 2024 Compensation and benefits ​ $ 5,271 ​ $ 5,311 Sales and marketing services ​ ​ 5,028 ​ ​ 1,287 Professional and administration services ​ 3,784 ​ 1,587 Research and development ​ ​ 2,705 ​ ​ 3,416 Contract manufacturing ​ ​ ​ ​ 1,673 ​ ​ ​ ​ 1,813 Operating lease ​ ​ 496 ​ ​ 429 Product warranty and replacement obligations ​ 448 ​ 406 Interest on notes payable ​ ​ 298 ​ ​ 789 Accrued construction and renovations costs ​ ​ 54 ​ ​ 397 Other ​ ​ 532 ​ ​ 71 Total accrued expenses and other current liabilities ​ $ 20,289 ​ $ 15,506 ​ 11. Leases ​ The Company leases approximately 33,000 square feet of research and office space for its corporate headquarters under a non-cancelable operating lease. In May 2023, the Company amended our lease, extending the lease term through 2033, and obtained a tenant improvement allowance of $ 1.3 million. The Company accounted for the amendment as a lease modification and remeasured the ROU asset and lease liability as of the amendment date, which resulted in an increase of $ 2.5 million to the ROU asset, and an increase of $ 3.8 million to the lease liability. The Company has one option to extend the term for an additional period of five years beginning on June 1, 2033. The rent expense is recognized on a straight-line basis through the end of the lease term, excluding option renewals. The difference between the straight-line rent amounts and amounts payable under the lease is recorded as deferred rent. ​ Operating lease expense for the years ended December 31, 2025 and 2024 was $ 0.9 million for each period. ​ The following table summarizes the lease assets and liabilities as of December 31, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, Operating Lease Assets and Liabilities ​ Balance Sheet Classification ​ ​ 2025 ​ ​ 2024 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease ROU assets ​ ​ Deposits and other assets ​ $ 4,460 ​ $ 4,837 Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Current operating lease liabilities ​ ​ Accrued expenses and other current liabilities ​ $ 496 ​ $ 429 Non-current operating lease liabilities ​ ​ Non-current operating lease liabilities ​ ​ 5,289 ​ ​ 5,785 Total operating lease liabilities ​ ​ ​ ​ $ 5,785 ​ $ 6,214 ​ 105 The following table summarizes the maturity of undiscounted payments due under operating lease liabilities and the present value of those liabilities as of December 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ 2026 ​ $ 967 2027 ​ ​ 996 2028 ​ ​ 1,026 2029 ​ ​ 1,057 Thereafter ​ ​ 3,851 Total ​ ​ 7,897 Less: Present value adjustment ​ ​ ( 2,112 ) Present value of lease liabilities ​ $ 5,785 ​ ​ The following table summarizes the weighted-average lease term and weighted-average discount rate as of December 31, 2025 and 2024: ​ ​ ​ ​ ​ ​ ​ Remaining lease term (years) ​ 2025 ​ 2024 ​ Operating leases ​ 7.4 ​ 8.4 ​ Discount rate ​ ​ ​ ​ ​ Operating leases ​ 8.5 % 8.5 % ​ ​ ​ ​ ​ ​ ​ During the years ended December 31, 2025 and 2024, the Company made cash payments of $ 0.9 million for each period included in the measurement of its operating lease liabilities. ​ ​ 12. 401(k) Plan ​ The Company has a defined contribution 401(k) plan available to all full-time employees. Employee contributions are voluntary and are determined on an individual basis subject to the maximum allowable under federal income tax regulations. Participants are fully vested in their contributions. The Company has provided a discretionary match of up to 3 % of the participant’s contributions. Employer match expenses during the years ended December 31, 2025 and 2024 were $ 0.5 million for each period. Administrative expenses for the plan, which are paid by the Company, were not material in 2025 or 2024. ​ ​ 13. Notes Payable ​ Term Loans ​ Loan and Security Agreement ​ On September 8, 2023 (the “Effective Date”), the Company entered into a loan agreement (the “Loan and Security Agreement”) with Hercules Capital, Inc. and its managed fund (collectively, the “Lenders”), pursuant to which the Lenders agreed to make available to Senseonics up to $ 50.0 million in senior secured term loans (the “Term Loan Facility”), consisting of (i) an initial term loan of $ 25.0 million, which was funded on the Effective Date, (ii) $ 10.0 million, which was funded on January 2, 2024 upon meeting certain terms in conditions under the loan agreement, and (iii) $ 15.0 million which has not been drawn. On September 3, 2025 (the “2025 Effective Date”), the Company amended the Loan and Security Agreement (the “Amended Loan and Security Agreement”) with the Lenders and Hercules. The Amended Loan and Security Agreement increased the total loan commitment under the facility from $ 50.0 million to $ 100.0 million (collectively, the “2025 Term Loans”). In the Amended Loan and Security Agreement, the undrawn loans increased from $ 15.0 million to $ 65.0 million divided into three tranches of up to $ 10.0 million (“2025 Tranche 2 Loan”), up to $ 20.0 million (“2025 Tranche 3 Loan”) and up to $ 35.0 million (“2025 Tranche 4 Loan”), respectively, 106 each of which will become available to Senseonics upon Senseonics’ satisfaction of certain terms and conditions set forth in the Amended Loan and Security Agreement. The loans under the Amended Loan and Security Agreement mature on September 3, 2029 (the “Maturity Date”). ​ The loans under the Amended Loan and Security Agreement bear interest at an annual rate equal to the greater of (i) the prime rate as reported in The Wall Street Journal plus 2.40 % and (ii) 9.90 %. Borrowings under the Amended Loan and Security Agreement are repayable in monthly interest-only payments through October 1, 2027. The interest-only period will be extended through October 2, 2028 if the Company satisfies the conditions for the 2025 Tranche 2 Loan, and through the maturity date of the loan if the Company satisfies the conditions for both the 2025 Tranche 2 Loan and 2025 Tranche 3 Loan. After the interest-only payment period, borrowings under the Amended Loan and Security Agreement are repayable in equal monthly payments of principal and accrued interest until the Maturity Date. ​ At the Company’s option, the Company may prepay all or any portion of the outstanding borrowings under the Amended Loan and Security Agreement, subject to a prepayment fee equal to (a) 3.0 % of the principal amount being prepaid if the prepayment occurs within one year of the 2025 Effective Date, 2.0 % of the principal amount being prepaid if the prepayment occurs during the second year following the 2025 Effective Date, and 1.00 % of the principal amount being prepaid if the prepayment occurs more than two years after the 2025 Effective Date and prior to the Maturity Date. In addition, the Company paid $ 425,000 in facility fees upon drawing Tranche 1 Loan and Tranche 2 Loan and additional facility fees of $ 412,500 upon execution of the Amended Loan and Security Agreement. The Company will pay additional facility charges in connection with any borrowing of the 2025 Terms Loans, in the amount of 0.50 % of the 2025 Tranche 2 Loan and 2025 Tranche 3 Loan and 1.00 % of the 2025 Tranche 4 Loan. The Amended Loan and Security Agreement also provides for an end of term fee in an amount equal to 6.45 % of the aggregate principal advances of the 2025 Terms Loans, which fee is due and payable on the earliest to occur of (i) the Maturity Date, (ii) the date the Company prepays the outstanding loans in full, and (iii) the date that the secured obligations become due and payable. The existing end of term fee under the existing Tranche 1 Loan and Tranche 2 Loan remains payable on September 1, 2027 (the original maturity date). The end of term fees are accreted to interest expense over the term of the loans. ​ The Company’s obligations under the Amended Loan and Security Agreement are secured by a first-priority security interest in substantially all of its assets. The Amended Loan and Security Agreement contains a minimum cash covenant that requires the Company to hold unrestricted cash equal to 80 % of the total amounts funded under the Amended Loan and Security Agreement, reduced to 55 % and 35 % subject to achieving certain milestones under the agreement. The Amended Loan and Security Agreement also contains a performance covenant, commencing on January 1, 2026, that requires the Company to achieve certain net product revenue targets on a trailing six-month basis for applicable measuring periods. The performance covenant shall be waived at any time in which either (a) the Company’s market capitalization exceeds $ 550.0 million and the Company maintains unrestricted cash equal to at least 75 % of the total amounts funded, or (b) the Company maintains unrestricted cash equal to at least 100 % of the total amounts funded. ​ In addition, the Amended Loan and Security Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, among other things, restrictions on indebtedness, liens, investments, mergers, corporate changes, dispositions, prepayment of other indebtedness, and dividends and other distributions, subject to certain exceptions. The Amended Loan and Security Agreement also contains events of default including, among other things, payment defaults, breach of covenants, material adverse effect, breach of representations and warranties, cross-default to material indebtedness, bankruptcy-related defaults, judgment defaults, revocation of certain government approvals, and the occurrence of certain adverse events. Following an event of default and any applicable cure period, a default interest rate equal to the then-applicable interest rate plus 4.0 % may be applied to the outstanding amount, and the Lenders will have the right to accelerate all amounts outstanding under the Loan and Security Agreement, in addition to other remedies available to them as secured creditors of the Company. The Company was in compliance with all covenants as of December 31, 2025. ​ In addition, in connection with the issuance of the Tranche 1 Loan, the Company issued warrants to the Lenders (collectively, the “Tranche 1 Warrants”) to acquire an aggregate of 41,619 shares of the Company’s common stock at an exercise price of $ 12.01 per share (the “Tranche 1 Warrant Shares”). For the Tranche 2 Loan the Company issued additional warrants to the Lenders (collectively, the “Tranche 2 Warrants”) to acquire an aggregate of 17,395 shares at an 107 exercise price of $ 11.50 per share (the “Tranche 2 Warrant Shares”). On the 2025 Effective date, the exercise price of all outstanding warrants was reduced to $ 9.09 per share (the “Amended Exercise Price”). The Tranche 1 Warrant Shares and Tranche 2 Warrant Shares may be exercised through the earlier of (i) the seventh anniversary of the initial issuance date and (ii) the consummation of certain acquisition transactions involving the Company, as set forth in the Warrants. The number of Tranche 1 Warrant Shares and Tranche 2 Warrant Shares for which the Tranche 1 Warrants and Tranche 2 Warrants are exercisable, and the associated exercise price are subject to certain customary proportional adjustments for fundamental events, including stock splits and reverse stock splits, as set forth in the Warrants. The proceeds from the Loan and Security Agreement were allocated between the Tranche 1 Loan and the Tranche 1 Warrants based on their respective fair value of $ 25.0 million and $ 0.4 million, and the amount allocated to the Tranche 1 Warrants was recorded in equity resulting in a debt discount to the Tranche 1 Loan. The Company estimated the fair value of the Tranche 2 Warrants as of the grant date to be $ 0.1 million and classified the full amount in equity. As a result of the Amended Exercise Price, the value of all outstanding warrants was reduced by $ 0.2 million. The value of the warrants are amortized as additional interest expense over the term of the Amended Loan and Security Agreement using the effective interest method. ​ In connection with Loan and Security Agreement, the Company incurred $ 1.1 million in debt issuance costs and debt discounts which are netted against the principal balance of the initial term loan and amortized as interest expense over the term of the loan. The Company incurred additional debt discounts of $ 0.2 million under the Amended Loan and Security Agreement. The Company evaluated Amended Loan and Security Agreement in accordance with ASC 470-50, Debt, and determined that the amendment resulted in a debt modification. Therefore, no loss on debt extinguishment was recognized. The unamortized debt issuance costs and debt discounts are amortized over the revised term of the loan using an effective interest rate of 13.10 %. The fair value of the Company’s Loan and Security Agreement was $ 35.7 million as of December 31, 2025. ​ Pursuant to the Amended Loan and Security Agreement, the Company also agreed to issue additional seven year term warrants upon the funding of the 2025 Tranche 2 Loan, 2025 Tranche 3 Loan, and 2025 Tranche 4 Loan which warrants would be exercisable for an aggregate number of shares equal to 2.0 % of the funded loan amount divided by the exercise price equal to the three-day volume-weighted average price at the time of each advance. ​ Convertible Notes ​ 2025 Notes ​ In July 2019, the Company issued $ 82.0 million in aggregate principal amount of senior convertible notes that matured on January 15, 2025 (the “2025 Notes”), unless earlier repurchased or converted. The 2025 Notes were convertible, at the option of the holders, into shares of the Company’s common stock, at an initial conversion rate of 37.88 shares per $ 1,000 principal amount of the 2025 Notes (equivalent to an initial conversion price of approximately $ 26.40 per share). The 2025 Notes also contained an embedded conversion option requiring bifurcation as a separate derivative liability, along with the fundamental change make-whole provision and the cash settled fundamental make-whole shares provision. ​ On April 21, 2020, $ 24.0 million aggregate principal of the Company’s outstanding 2025 Notes held by Highbridge Capital Management, LLC (“Highbridge”) were settled pursuant to an exchange agreement. Between September 3, 2020 and January 27, 2021, $ 6.8 million in aggregate principal of the 2025 Notes were converted into 257,613 shares of common stock. On August 10, 2023, the Company entered into separate, privately negotiated exchange agreements (the “Exchange Agreements”) with a limited number of holders (the “Noteholders”) of the Company’s outstanding 2025 Notes. Under the terms of the Exchange Agreements, the Noteholders agreed to exchange with the Company (the “Exchanges”) up to $ 30.8 million in aggregate principal amount of the 2025 Notes for a combination of $ 7.5 million of cash and newly issued shares of common stock (the “Exchanged Shares”). The number of Exchanged Shares was determined based upon the volume-weighted average price per share of the common stock during a 15-day averaging period commencing on August 11, 2023 and ending August 31, 2023. Based on the volume-weighted average price per share of the common stock during the averaging period, a total of 1.76 million shares of common stock were issued in 108 the Exchanges. The Exchanges were settled on the initial share issuance date of August 14, 2023 and the final settlement date of September 5, 2023. ​ Following the Exchanges, approximately $ 20.4 million aggregate principal amount of the 2025 Notes remained outstanding. On January 15, 2025, the Company repaid the outstanding principal and accrued interest for the 2025 Notes in the full amount of $ 20.9 million. The conversion option expired unexercised. ​ The following carrying amounts are outstanding under the Company’s notes payable as of December 31, 2025 and December 31, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ Principal ($) ​ Debt (Discount) Premium ($) 1 ​ Issuance Costs ($) ​ Carrying Amount ($) Amended Loan and Security Agreement 35,000 ​ 753 ​ ( 167 ) ​ 35,586 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ Principal ($) ​ Debt (Discount) Premium ($) 1 ​ Issuance Costs ($) ​ Carrying Amount ($) 2025 Notes 20,399 ​ ( 256 ) ​ ( 5 ) ​ 20,138 Loan and Security Agreement 35,000 ​ ( 49 ) ​ ( 248 ) ​ 34,703 ​ ​ (1) Includes accretion of end of term fees payable at maturity ​ Interest expense related to the notes payable for the periods presented below is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Twelve Months Ended December 31, 2025 ​ Interest Rate ​ Interest ($) ​ Debt Discount & Fees ($) 1 ​ Issuance Costs ($) ​ Total Interest Expense ($) 2025 Notes 5.25 % ​ 45 ​ 256 ​ 4 ​ 305 Loan and Security Agreement 9.90 % ​ 2,339 ​ 650 ​ 65 ​ 3,054 Amended Loan and Security Agreement 9.90 % ​ 1,174 ​ 401 ​ 17 ​ 1,592 Total ​ ​ 3,558 ​ 1,307 ​ 86 ​ 4,951 ​ (1) Includes accretion of end of term fees payable at maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Twelve Months Ended December 31, 2024 ​ ​ Interest Rate ​ Interest ($) ​ Debt Discount & Fees ($) 1 ​ Issuance Costs ($) ​ Total Interest Expense ($) ​ 2025 Notes 5.25 % ​ 1,071 ​ 2,833 ​ 47 ​ 3,951 ​ Loan and Security Agreement 9.90 % ​ 3,520 ​ 883 ​ 83 ​ 4,486 ​ Total ​ ​ 4,591 ​ 3,716 ​ 130 ​ 8,437 ​ ​ ​ The following are the scheduled maturities of the Company’s notes payable (including end of term fees) as of December 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ 2027 ​ ​ ​ $ 6,622 ​ ​ 2028 ​ ​ 17,829 ​ ​ 2029 ​ ​ 15,239 ​ ​ Total ​ ​ ​ $ 39,690 ​ ​ ​ ​ ​ 14. Stockholders’ Equity (Deficit) ​ In connection with the Company’s acquisition of Senseonics, Incorporated in December 2015 (the “Acquisition”), (1) all outstanding shares of common stock of Senseonics, $ 0.01 par value per share, were exchanged for 97,796 shares of the Company's common stock, $ 0.001 par value per share (reflecting an exchange ratio of 2.0975 ), (2) all outstanding shares of preferred stock were converted into shares of common stock of Senseonics, and exchanged into 109 2,765,084 shares of the Company’s common stock, $ 0.001 par value per share, and (3) all outstanding options and warrants to purchase shares of common stock of Senseonics were exchanged for or replaced with options and warrants to acquire shares of the Company’s common stock using the same exchange ratio. ​ Common Stock ​ At each December 31, 2025 and December 31, 2024, the Company’s authorized capital stock included 70,000,000 shares of common stock, par value $ 0.001 per share. The Company had 41,265,778 and 29,767,561 shares of common stock issued and outstanding at December 31, 2025 and December 31, 2024, respectively. ​ Preferred Stock ​ As of December 31, 2025 and 2024, the Company’s authorized capital stock included 5,000,000 shares of undesignated preferred stock, par value $ 0.001 per share. The Company had 12,000 shares of Series B Preferred Stock outstanding as of December 31, 2024 which was converted in full into 1,518,602 shares of common stock during the first quarter of 2025. As of December 31, 2025, the Company had no shares of preferred stock outstanding. Voting Rights The holders of Series B Preferred Stock generally were entitled to vote with the holders of the shares of common stock on all matters submitted for a vote of holders of shares of common stock (voting together with the holders of shares of common stock as one class) on an as-converted basis and were entitled to a number of votes per share equal to $ 1,000 divided by $ 24.8 , subject to a cap of 29.0 % of total voting power. Dividends The Series B Preferred Stock was not entitled to dividends. Conversion Rights ​ Each share of Series B Preferred Stock was initially convertible into the number of shares of the common stock of the Company, $ 0.001 par value per share, equal to $ 1,000 divided by the conversion price of $ 7.90 per share, subject to customary anti-dilution adjustments, including in the event of any stock split. ​ Public and Registered Direct Offerings ​ On May 15, 2025, the Company entered into the Underwriting Agreement related to the Public Offering with several underwriters for the sale of 5,000,000 shares of its common stock at the Public Offering Price. Under the terms of the Underwriting Agreement, the Company also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock at the Public Offering Price, which the underwriters exercised in full. The Company received aggregate gross proceeds from the Public Offering of $ 57.5 million. The Company also entered into a securities purchase agreement with Abbott pursuant to which the Company agreed to issue and sell 2,026,963 shares of its common stock substantially concurrently with the Public Offering, at the Public Offering Price, to Abbott for an aggregate purchase price of approximately $ 20.3 million in the Private Placement. The Public Offering and Private Placement closed on May 19, 2025 and May 20, 2025, respectively, and the Company received net proceeds of approximately $ 52.1 million and $ 20.1 million, respectively, after deducting underwriting discount, commissions, and offering expenses. ​ On October 24, 2024, the Company completed a registered direct securities offering (the “2024 Registered Direct Offering”) to certain institutional investors in which we issued and sold 2,285,714 shares of common stock at $ 7.00 per share and simultaneously issued warrants (“PP Warrants”) to these investors in a private placement to purchase an aggregate of 2,285,714 shares of common stock at an exercise price of $ 7.00 per share. The PP Warrants were non-exercisable for the first six months after issuance and expire on April 29, 2030. The offering closed on October 28, 2024, 110 and the Company received proceeds of approximately $ 14.8 million after payment of fees to the placement agent, but before payment of any additional expenses incurred by the Company in connection with the transaction. ​ ATM Offerings ​ On August 6, 2025, the Company entered into the Sales Agreement with TD Cowen, under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $ 100.0 million through TD Cowen as its sales agent in an “at the market” offering, or ATM offering. TD Cowen will receive commissions up to 3.0 % of the gross proceeds of any common stock sold through TD Cowen under the Sales Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 6, 2025. During the twelve months ended December 31, 2025, the Company received approximately $ 2.4 million proceeds from the sale of 334,330 shares under the Sales Agreement, after deducting sales commissions and offering expenses. ​ In August 2023, the Company entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with Goldman Sachs & Co. LLC (“GS”), under which the Company could offer and sell, from time to time, at its sole discretion, shares of its common stock having an aggregate offering price of up to $ 106.6 million through GS as its sales agent in an “at the market” offering. GS received commissions up to 3.0 % of the gross proceeds of any common stock sold through GS under the Equity Distribution Agreement. The shares were offered and sold pursuant to an effective shelf registration statement on Form S-3, which was originally filed with the Securities and Exchange Commission on August 10, 2023. On October 24, 2024, the Company amended the Equity Distribution Agreement with GS to reduce the maximum amount of shares issuable thereunder to $ 55.0 million. On May 15, 2025, in connection with the Public Offering and Private Placement, the Equity Distribution Agreement was terminated. At the time of termination of the Equity Distribution Agreement on May 15, 2025, the Company had received approximately $ 30.8 million in net proceeds from the sale of 2,006,528 shares under the Equity Distribution Agreement, after deducting sales commissions and offering expenses. ​ ​ Stock Purchase Warrants ​ The table below summarizes the warrant activity for the year ended December 31, 2025 (in thousands). This table does not include the PHC Exchange Warrant or the PHC Purchase Warrant (described below). Such warrants are pre-funded and excluded from the table due to their nominal exercise price of $ 0.02 per warrant share. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Shares ​ ​ Exercise price (per share) ​ ​ Weighted average exercise price (per share) Outstanding, December 31, 2024 ​ 2,357,747 ​ $ 7.00 to $ 77.20 ​ $ 7.40 Granted ​ — ​ ​ — ​ ​ — Exercised ​ — ​ ​ — ​ ​ — Expired ​ — ​ ​ — ​ ​ — Outstanding and Exercisable, December 31, 2025 ​ 2,357,747 ​ $ 7.00 to $ 77.20 ​ $ 7.40 ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercisable, December 31, 2025 ​ 2,357,747 ​ $ 7.00 to $ 77.20 ​ $ 7.40 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Average Remaining Life, December 31, 2025 (years) ​ 4.32 ​ ​ ​ ​ ​ ​ ​ ​ On June 30, 2016, we entered into a loan agreement with Oxford Finance and Silicon Valley Bank (collectively, the “Lenders”) and issued to the Lenders 10-year stock purchase warrants to purchase an aggregate of 5,830 , 3,152 and 111 4,033 shares of common stock at an exercise price of $ 77.20 , $ 47.60 and $ 37.20 per share, respectively (“Oxford/SVB Warrants”). The Oxford/SVB Warrants expire on June 30, 2026, November 22, 2026 and March 29, 2027, respectively. ​ On March 13, 2023, we issued and sold to PHC a warrant to purchase 771,288 shares of common stock for $ 15.0 million (the “Purchase Warrant”). The Purchase Warrant is a “pre-funded” warrant with a nominal exercise price of $ 0.02 per share (“the Purchase Warrant Shares”). All or any part of the Purchase Warrant is exercisable by PHC at any time and from time to time. ​ In March 2023, we entered into an exchange agreement with PHC, pursuant to which PHC exchanged $ 35.0 million aggregate principal amount of convertible notes due October 31, 2024 (the “PHC Notes”), including all accrued and unpaid interest thereon, for a warrant (the “PHC Exchange Warrant”) to purchase up to 3,426,266 shares of common stock (the “PHC Exchange Warrant Shares”). The PHC Exchange Warrant is a “pre-funded” warrant with a nominal exercise price of $ 0.02 per PHC Exchange Warrant Share. All or any part of the PHC Exchange Warrant is exercisable by PHC at any time and from time to time. ​ On September 8, 2023, we entered into the Loan and Security Agreement with several lenders and issued the Tranche 1 Warrants to acquire an aggregate of 41,619 shares of common stock at an initial exercise price of $ 12.01 per share. The Tranche 1 Warrants may be exercised through the earlier of (i) September 8, 2030 and (ii) the consummation of certain acquisition transactions involving the company, as set forth in the warrant agreement. On September 3, 2025, the Company and the lenders entered into an amendment to reduce the exercise price to $ 9.09 per share. All other terms of the warrants, including the expiration date and number of shares issuable upon exercise, remain unchanged. ​ On January 2, 2024, we issued the Tranche 2 Warrants to acquire an aggregate of 17,395 shares at an initial exercise price of $ 11.50 per share. The Tranche 2 Warrants may be exercised through the earlier of (i) January 2, 2031 and (ii) the consummation of certain acquisition transactions involving the company, as set forth in the warrant agreement. On September 3, 2025, the Company and the lenders entered into an amendment to reduce the exercise price to $ 9.09 per share. All other terms of the warrants, including the expiration date and number of shares issuable upon exercise, remain unchanged. ​ On October 24, 2024, in connection with the 2024 Registered Direct Offering, the Company issued to the investors in the offering the PP Warrants to purchase an aggregate of 2,285,714 shares of common stock at an exercise price of $ 7.00 per share. The PP Warrants were non-exercisable for the first six months after issuance and expire on April 29, 2030. ​ ​ 15. Stock-Based Compensation ​ 2015 Plan ​ In December 2015, the Company adopted the 2015 Equity Incentive Plan (the “2015 Plan”), under which incentive stock options, non-qualified stock options and restricted stock units may be granted to the Company’s employees and certain other persons, such as officers and directors, in accordance with the 2015 Plan provisions. In February 2016, the Company’s Board of Directors adopted, and the Company’s stockholders approved, an Amended and Restated 2015 Equity Incentive Plan (the “Amended and Restated 2015 Plan”), which became effective on February 20, 2016. The Company’s Board of Directors may terminate the Amended and Restated 2015 Plan at any time. Options granted under the Amended and Restated 2015 Plan expire ten years after the date of grant. ​ Pursuant to the Amended and Restated 2015 Plan, the number of shares of the Company’s common stock reserved for issuance automatically increases on January 1 of each year, ending on January 1, 2026, by 3.5 % of the total number of shares of its common stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares as may be determined by its Board of Directors. As of December 31, 2025, 1,539,625 shares remained available for grant under the Amended and Restated 2015 Plan. Effective January 1, 2026, by virtue of the automatic increase described above, the total number of shares remaining available for grant under the Amended and Restated 2015 Plan was increased to 2,983,927 shares. ​ 112 Inducement Plan ​ On May 30, 2019, the Company adopted the Senseonics Holdings, Inc. Inducement Plan (the “Inducement Plan”) pursuant to which the Company reserved 90,000 shares of the Company’s common stock for issuance. The only persons eligible to receive grants of awards under the Inducement Plan are individuals who satisfy the standards for inducement grants in accordance with Nasdaq Listing Rule 5635(c)(4), including individuals who were not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such persons entering into employment with the Company. An “Award” is any right to receive the Company’s common stock pursuant to the Inducement Plan, consisting of non-statutory options, restricted stock unit awards and other equity incentive awards. As of December 31, 2025, 26,875 shares remained available for grant under the Inducement Plan. ​ Commercial Equity Plan ​ On January 30, 2023, the Company adopted the Senseonics Holdings, Inc. 2023 Commercial Equity Plan (the “Commercial Equity Plan”), pursuant to which the Company reserved 500,000 shares of common stock for issuance. Eligible recipients under the plan are non-employees of Senseonics who assist with the commercialization of Eversense. An “Award” is any right to receive the Company’s common stock pursuant to the Commercial Equity Plan, consisting of non-statutory options and restricted stock unit awards. As of December 31, 2025, 315,378 shares remained available for grant under the Commercial Equity Plan. ​ 2016 Employee Stock Purchase Plan ​ In February 2016, the Company adopted the 2016 Employee Stock Purchase Plan (the “2016 ESPP”). The 2016 ESPP became effective on March 17, 2016. The maximum number of shares of common stock that may be issued under the 2016 ESPP was initially 40,000 shares and will automatically increase on January 1 of each year, beginning on January 1, 2017 and ending on and including January 1, 2026, by 1.0 % of the total number of shares of common stock outstanding on December 31 of the preceding calendar year; provided, however, the Board of Directors may act prior to the first day of any calendar year to provide that there will be no January 1 increase in the share reserve for such calendar year or that the increase in the share reserve for such calendar year will be a lesser number of shares of common stock. At December 31, 2025 there were 1,404,389 shares of common stock available for issuance under the 2016 ESPP. Effective January 1, 2026, by virtue of the automatic increase described above, the total number of shares remaining available for issuance under the 2016 ESPP was increased to 1,817,046 shares. ​ The 2016 ESPP permits participants to purchase shares of the Company’s common stock through payroll deductions of up to 15 % of their earnings. Unless otherwise determined by the administrator, the purchase price of the shares will be 85 % of the lower of the fair market value of common stock on the first day of an offering or on the date of purchase. Participants may end their participation at any time. The Company initiated its first 2016 ESPP offering period on August 1, 2019. On January 31, 2025, there were 174,945 shares purchased in connection with the offering period. On July 31, 2025, there were 211,966 shares purchased in connection with the offering period. The 2016 ESPP is considered compensatory for financial reporting purposes. ​ Stock Options ​ The Company recognizes the cost of employee and non-employee services received in exchange for awards of equity instruments, such as stock options, based on the fair value of those awards at the date of grant. The estimated fair value of stock options on the date of grant is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award for those awards with service conditions only. For awards that also contain performance conditions, expense is recognized beginning at the time the performance condition is considered probable of being met over the remaining vesting period. ​ 113 Stock option activity under the plans during the years ended December 31, 2025 and 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Weighted- ​ Average ​ ​ Number of ​ Average ​ Remaining ​ ​ Shares in ​ Exercise ​ Contractual ​ ​ (in thousands) ​ Price ​ Life (in years) Options outstanding as of December 31, 2023 687 ​ $ 42.40 ​ 5.18 ​ Options granted 161 ​ ​ 10.40 ​ ​ ​ Options exercised ( 1 ) ​ ​ 9.40 ​ ​ ​ Options canceled/forfeited ( 133 ) ​ ​ 14.80 ​ ​ ​ Options outstanding as of December 31, 2024 714 ​ ​ 40.20 ​ 4.66 ​ Options granted 863 ​ ​ 9.70 ​ ​ ​ Options exercised — ​ ​ — ​ ​ ​ Options canceled/forfeited ( 63 ) ​ ​ 38.81 ​ ​ ​ Options outstanding as of December 31, 2025 1,514 ​ $ 21.67 ​ 7.32 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Options vested and expected to vest as of December 31, 2025 ​ 1,514 ​ $ 21.67 ​ ​ ​ Options exercisable as of December 31, 2025 ​ 631 ​ $ 41.16 ​ 4.04 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted average grant-date fair value of stock option awards granted in 2025 and 2024 was $ 6.88 and $ 7.80 per share, respectively. ​ There were no options exercised for the year ended December 31, 2025. For the year ended December 31, 2024, 593 options were exercised with an aggregate intrinsic value at the time of exercise of less than $ 0.1 million. ​ The total fair value of options that vested during 2025 and 2024 was approximately $ 1.5 million and $ 0.2 million, respectively. ​ The aggregate intrinsic value of the options currently exercisable at December 31, 2025 was $ 0.00 . The aggregate intrinsic value of stock options outstanding at December 31, 2025 less than $ 0.1 million, which approximated the aggregate intrinsic value of options vested and expected to vest as of December 31, 2025. ​ The weighted average grant date fair value of the unvested stock option awards outstanding at December 31, 2025 and 2024 was $ 6.98 and $ 8.40 per share, respectively. The weighted average grant date fair value of the stock option awards vested, exercised, and forfeited/cancelled for the year ended December 31, 2025 was $ 7.85 , $ 0.00 and $ 9.80 per share, respectively. ​ Fair value is estimated at each grant date under the plans using the Black-Scholes Model with assumptions summarized in the following table: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ ​ 2025 ​ 2024 Expected term of options (in years) ​ ​ ​ 6.5 - 6.5 ​ 6.0 - 6.5 ​ Expected volatility rate 74.93 - 96.21 % 83.37 - 84.99 % Risk-free interest rate 3.84 - 4.45 % 3.54 - 4.45 % Expected dividend yield ​ ​ 0 % ​ ​ 0 % ​ The risk-free interest rate assumption is based upon observed U.S. treasury yields for a period consistent with the expected term of the Company’s employee and non-employee stock options. The expected term is the period of time for which the stock-based options are expected to be outstanding. The expected term is determined using the “simplified method” which is defined as the mid-point between the vesting date and the end of the contractual term. The Company does not pay a dividend, and is not expected to pay a dividend in the foreseeable future. ​ 114 The Company utilizes comparable public companies’ volatility rates as a proxy of its expected volatility for purposes of the Black-Scholes Model. Stock-based compensation expense is recorded monthly and is adjusted periodically for actual forfeitures as they occur. ​ Stock-based compensation expense for employee and non-employee stock options for each of the years ended December 31, 2025 and 2024, is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2025 ​ 2024 Cost of sales ​ $ 47 ​ $ 44 Research and development ​ ​ ​ ​ 309 ​ ​ 230 Selling, general and administrative ​ ​ ​ ​ 1,354 ​ ​ 472 Total stock-based compensation expense related to stock options ​ $ 1,710 ​ $ 746 ​ As of December 31, 2025, there was $ 5.8 million of total unrecognized compensation cost related to non-vested stock option awards, which is expected to be recognized over a weighted average period of 3.21 years. ​ Restricted Stock Units ​ The Company issued a total of 586,383 and 962,142 restricted stock units to employees of the Company during 2025 and 2024, respectively, as incentive compensation. Restricted stock units granted to employees in 2025 and 2024 vest in eight equal installments beginning with an initial accelerated vesting tranche in the month following the grant, followed by seven vesting dates every six months . The Company issued 42,587 and 103,255 restricted stock units to members of the Board of Directors during 2025 and 2024, respectively, under the non-employee director compensation policy. These grants includes an annual grant that vests on the earlier of the first anniversary of the grant date or the next year’s annual meeting of stockholders and grants issued in lieu of compensation that immediately vest upon issuance. New members of the Board of Directors may be granted initial restricted stock units which vest over a three-year period. Restricted stock units activity under the Plans during the years ended December 31, 2025 and 2024, is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted- ​ ​ ​ ​ Weighted- ​ Average ​ ​ Number of ​ Average ​ Remaining ​ ​ Shares in ​ Exercise ​ Contractual ​ ​ (in thousands) ​ Price ​ Life (in years) RSU's outstanding as of December 31, 2023 694 ​ $ 17.80 ​ 2.29 Granted 1,066 ​ ​ 9.02 ​ ​ Vested ( 574 ) ​ ​ 14.82 ​ ​ Forfeited ( 83 ) ​ ​ 12.02 ​ ​ RSU's outstanding as of December 31, 2024 1,103 ​ ​ 11.31 ​ 2.23 Granted 629 ​ ​ 12.38 ​ ​ Vested ( 637 ) ​ ​ 11.98 ​ ​ Forfeited ( 13 ) ​ ​ 10.08 ​ ​ RSU's outstanding as of December 31, 2025 1,082 ​ $ 11.55 ​ 1.90 ​ ​ ​ ​ ​ ​ ​ ​ ​ For the years ended December 31, 2025 and 2024, the weighted average grant date fair value of restricted stock units granted, vested, and forfeited is presented above. The weighted average grant date fair value of restricted stock units outstanding was $ 11.55 per share as of December 31, 2025 and $ 11.31 per share as of December 31, 2024. ​ For the years ended December 31, 2025 and 2024, 637 and 574 , restricted stock units were vested, respectively, with an aggregate intrinsic value at the time of vest of $ 5.6 million and $ 4.3 million, respectively. 115 ​ The total fair value of the restricted stock units that vested during 2025 and 2024 were approximately $ 5.6 million and $ 8.5 million, respectively. ​ The aggregate intrinsic value of the restricted stock units currently outstanding at December 31, 2025 was $ 6.0 million. Employee stock-based compensation expense for restricted stock units granted to employees for the years ended December 31, 2025 and 2024, respectively, is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2025 ​ 2024 Cost of sales ​ $ 223 ​ $ 110 Research and development ​ ​ ​ ​ 2,132 ​ ​ 1,745 Selling, general and administrative ​ 6,088 ​ 6,624 Total stock-based compensation expense related to RSUs ​ $ 8,443 ​ $ 8,479 ​ As of December 31, 2025, there was $ 10.5 million of total unrecognized compensation cost related to non-vested restricted stock units, which is expected to be recognized over a weighted average period of 1.9 years. ​ 16. Income Taxes ​ No provision for U.S. federal or state income taxes has been recorded, and therefore no income taxes were paid, as the Company has incurred net operating losses since inception and provides a full valuation allowance against its net deferred income tax assets. The tax effect of temporary differences that give rise to the net deferred income tax assets (liabilities) at December 31, 2025 and 2024 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, Deferred income tax assets (liabilities) ​ 2025 ​ ​ ​ 2024 Deferred Tax Assets: ​ ​ ​ ​ ​ ​ ​ Net operating loss carryforwards ​ ​ ​ $ 174,442 ​ $ 152,908 ​ Capitalized start-up costs ​ 4,294 ​ ​ 4,999 ​ Research and development credit carryforwards ​ 18,108 ​ ​ 17,057 ​ Research and development expenditures ​ ​ 14,851 ​ ​ 20,490 ​ Stock-based compensation ​ 1,809 ​ ​ 1,501 ​ Other ​ 4,001 ​ ​ 4,146 ​ Gross total deferred tax assets ​ ​ 217,505 ​ ​ 201,101 ​ Valuation allowance ​ ​ ( 216,069 ) ​ ​ ( 199,455 ) ​ Total deferred tax assets ​ $ 1,436 ​ $ 1,646 ​ Deferred tax liabilities: ​ ​ ​ ​ ​ ​ ​ Right of use asset amortization ​ ​ ( 1,436 ) ​ ​ ( 1,601 ) ​ Amortization of debt discount ​ ​ — ​ ​ ( 45 ) ​ Total deferred tax liabilities ​ ​ ( 1,436 ) ​ ​ ( 1,646 ) ​ Net deferred tax assets (liabilities) ​ $ — ​ $ — ​ ​ The net change in valuation allowance for the years ended December 31, 2025 and 2024 was a net increase of $ 16.6 million and $ 19.9 million, respectively. ​ The increase in valuation allowance is primarily due to deferred tax assets generated from net operating losses and tax credits carried forward in 2025. This increase in valuation allowance is based on management's assessment that it is not more likely than not that the Company will realize these deferred tax assets. At December 31, 2025, the Company had gross federal and state NOL carryforwards of $ 791.3 million and $ 134.9 million, respectively and research and experimental credit carryforwards of $ 18.1 million. Research and experimental credit carryforwards will expire in varying amounts between 2026 and 2045. Federal NOL carryforwards in the amount of $ 190.1 million will expire in varying amounts between 2026 and 2037. Federal NOL carryforwards incurred in tax years 2018 and forward have an indefinite carryforward period, although limited to eighty percent of taxable income annually. State NOLs have various expiration dates beginning in 2032. Under the provisions of the Internal Revenue Code, certain substantial changes in the Company’s 116 ownership may result in a limitation on the amount of NOL carryforwards and research and experimental credit carryforwards which can be available in future years. The Company has not yet determined whether such an ownership change has occurred. In order to make this determination, the Company will need to complete a Section 382/383 analysis regarding the limitation of the carryforwards. ​ A reconciliation of the Company’s estimated U.S. federal statutory rate to the Company’s effective income tax rate for the years ended December 31, 2025 and 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ ​ ​ 2025 ​ ​ ​ ​ 2024 ​ ​ ​ Total ​ % ​ ​ Total ​ % ​ Tax at U.S. Federal Statutory rate $ ( 14,514 ) ​ 21.00 % $ ( 16,509 ) ​ 21.00 % State and local income taxes⁽¹⁾ ( 3 ) ​ 0.00 ​ — ​ 0.00 ​ Tax credits ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research credit ​ ( 1,314 ) ​ 1.90 ​ ​ ( 2,164 ) ​ 2.75 ​ Changes in valuation allowances ​ 13,318 ​ ( 19.27 ) ​ ​ 16,042 ​ ( 20.41 ) ​ Nontaxable or nondeductible items ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity based compensation 969 ​ ( 1.40 ) ​ 874 ​ ( 1.11 ) ​ Other ​ 685 ​ ( 0.99 ) ​ ​ 667 ​ ( 0.85 ) ​ Changes in unrecognized tax benefits ​ 263 ​ ( 0.38 ) ​ ​ 433 ​ ( 0.55 ) ​ Other adjustments 592 ​ ( 0.86 ) ​ 657 ​ ( 0.84 ) ​ Income tax expense $ — ​ 0.00 % $ — ​ 0.00 % ​ (1) Although state and local income taxes are a net zero due to the Company's valuation allowance, Maryland made up the majority (greater than 50 percent) of the tax effect in this category for the year ended December 31, 2025 with California making up the majority for the year ended December 31, 2024. ​ Income before income taxes by source for the years ended December 31, 2025 and 2024 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Domestic $ ( 69,113 ) $ ( 78,616 ) Foreign ​ — ​ — Income before income taxes $ ( 69,113 ) $ ( 78,616 ) ​ ​ Deferred income taxes reflect temporary differences in the recognition of revenue and expense for tax reporting and financial statement purposes. Deferred tax assets (liabilities) are adjusted for changes in tax laws or tax rates of the various tax jurisdictions as of the enacted date. ​ A breakdown of the Company’s uncertain tax positions during 2025 and 2024 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Gross unrecognized tax benefit at beginning of year $ 4,264 $ 3,832 Increase from tax positions taken in prior years ​ — ​ — Increase from tax positions in current year ​ 331 ​ 497 Lapse of statute of limitations / expiration ​ ( 68 ) ​ ( 65 ) Gross unrecognized tax benefit at end of year $ 4,527 $ 4,264 ​ If recognized, the entire amount of gross unrecognized tax benefit would favorably affect the effective income tax rate, although, due to the Company’s valuation allowance there would be no net impact. The Company does not expect a significant change in its unrecognized tax positions to occur in the next twelve months. ​ The Company’s U.S. Federal and state income tax returns from 2004 to 2025 remain subject to examination by the tax authorities. The Company’s prior tax years remain open for examination, even though the statute of limitations has expired, due to the net operating losses and credits carried forward for use in prospective years. 117 . ​ 17. Related Party Transactions ​ PHC has a noncontrolling ownership interest in the Company. In addition, PHC previously appointed two members on the Company’s board of directors (which appointment was terminated on January 1, 2026). The Company previously entered into a financing agreement with PHC on August 9, 2020 (the “PHC Notes”). Ascensia, through the ownership interests of its parent company, PHC, is a related party. ​ Revenue from Ascensia for the years ended December 31, 2025 and 2024 was $ 18.2 million and $ 18.5 million, respectively. Ascensia earned commissions of $ 3.7 million and $ 1.2 million on sales made through our consignment channel during the years ended December 31, 2025 and 2024, respectively. ​ The amount due from Ascensia as of December 31, 2025 and 2024, was $ 5.3 million and $ 4.9 million, respectively. The amount due to Ascensia as of December 31, 2025 and 2024 was $ 5.2 million and $ 1.8 million, respectively. We also purchase certain medical supplies from Ascensia for our clinical trials. We paid Ascensia less than $ 0.1 million during each of the twelve months ended December 31, 2025 and 2024 under this arrangement. ​ As discussed in Note 4, on September 3, 2025 the Company and Ascensia signed a MOU related to the transition of commercial operations for Eversense from Ascensia back to the Company. On December 31, 2025, the parties executed a Master Asset Purchase Agreement, pursuant to which the Company acquired certain U.S. commercial assets and assumed certain related liabilities, with the transaction closing on January 1, 2026. In connection with the Master Asset Purchase Agreement, the parties entered into an A&R Commercialization Agreement, which terminated Ascensia’s rights to market Eversense products in the United States and modified Ascensia’s commercialization rights in Europe. The parties are cooperating during a defined transition period to ensure continuity of supply, customer support, and patient access. ​ 18. Fair Value Measurements ​ The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use to price the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: ​ Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. ​ Cash and Cash Equivalents ​ The fair value of money market funds and other investments classified as cash and cash equivalents are based on period-end statements supplied by the various banks and brokers that hold the majority of the funds. ​ 118 The following table represents the fair value hierarchy of the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2025 ​ ​ ​ Total ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and Cash Equivalents ⁽ ¹ ⁾ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ $ 33,624 ​ ​ 33,624 ​ ​ — ​ ​ — ​ Short-Term Investments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial paper ​ $ 6,399 ​ ​ — ​ ​ 6,399 ​ ​ — ​ Corporate debt securities ​ ​ 12,470 ​ ​ — ​ ​ 12,470 ​ ​ — ​ Government and agency securities ​ ​ 34,927 ​ ​ 34,927 ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ ​ Total ​ ​ Level 1 ​ ​ Level 2 ​ ​ Level 3 Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds⁽¹⁾ ​ $ 70,613 ​ ​ 70,613 ​ ​ — ​ ​ — ​ ​ (1) Classified as cash and cash equivalents due to their short-term maturity . ​ The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain financial instruments within the fair value hierarchy. The Company’s policy is to recognize transfers into and out of levels within the fair value hierarchy at the end of the fiscal quarter in which the actual event or change in circumstances that caused the transfer occurs. When a determination is made to classify an asset or liability within Level 3, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. During the years ended December 31, 2025 and 2024, there were no transfers between Level 1, Level 2, or Level 3. ​ ​ 19. Segment Information ​ The Company views its operations and manages its business in one operating segment, which also represents one reportable segment which derives its revenues from diabetes products and services. Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company CODM, its Chief Executive Officer, manages the Company’s operations on a consolidated basis for the purpose of allocating resources. ​ The CODM assesses performance for the segment based on net loss, which is reported in the consolidated statements of operations and comprehensive loss and uses the financial information in deciding on how to invest into the Company. The measure of segment assets reported on the balance sheets is total assets. ​ The table below summarizes the significant expense categories regularly reviewed by the CODM for the years ended December 31, 2025 and December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ 119 ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended ​ ​ December 31, (in thousands) ​ ​ ​ 2025 ​ ​ ​ 2024 Revenue ​ $ 35,257 ​ $ 22,472 Less: ​ ​ ​ ​ ​ ​ Cost of goods sold ​ ​ 19,494 ​ ​ 21,939 Sales and marketing expenses ​ ​ 22,785 ​ ​ 7,268 Research and development expenses ​ 31,592 ​ ​ 41,144 General and administrative expenses ​ 29,723 ​ ​ 26,963 Other segment items (1) ​ 776 ​ ​ 3,774 Net loss ​ $ ( 69,113 ) ​ $ ( 78,616 ) ​ (1) Other segment items include interest income, interest expense, gains on changes in fair value, other income, and other expense as presented in the Company’s consolidated statements of operations and comprehensive loss. ​ 20. Litigation ​ From time to time, the Company is subject to litigation and claims arising in the ordinary course of business. The Company accrues for litigation and claims when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company has evaluated claims in accordance with the accounting guidance for contingencies that it deems both probable and reasonably estimable, and for the periods ended December 31, 2025 and 2024 has no such contingencies. ​ 21. Subsequent Events ​ The Company has evaluated all subsequent events through the filing date of this Form 10-K with the SEC, to ensure that this filing includes appropriate disclosure of events both recognized in the financial statements as of December 31, 2025, and events which occurred subsequently but were not recognized in the financial statements. There were no subsequent events that required recognition or disclosure. ​ ​ 120 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure ​ None. ​