SenesTech, Inc. 10-Q

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with our condensed financial statements and related notes included in this Quarterly Report of Form 10-Q, as well as our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 13, 2026. Forward-Looking Statements The statements contained in this Quarterly Report on Form 10-Q that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained or incorporated herein by reference in this Quarterly Report on Form 10-Q, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “suggests,” “targets,” “contemplates,” “projects,” “predicts,” “may,” “might,” “plan,” “would,” “should,” “could,” “can,” “potential,” “continue,” “objective,” or the negative of those terms, or similar expressions intended to identify forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements regarding: • our commercialization strategy, and its related priorities and anticipated benefits; • the benefits expected from our assessment and implementation services; • the size of the market for our products, and our ability to serve that market; • our belief that ContraPest ® or Evolve ® are novel in the pest control industry; • existing regulations and regulatory developments towards first and second generation anti-coagulant rodenticides in the United States and other jurisdictions; • our belief that Evolve qualifies for exemption from registration as a minimum risk pesticide under Section 25(b) of the United States Environmental Protection Agency’s (the “EPA’s”) Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”); • our ability to meet current and anticipated demand by our internal production capabilities; • the success of non-registered, online product sales advertising rodent reproduction control; • our plan to continue to utilize various forms of stock-based awards to hire, retain and motivate talented employees, consultants and directors; • our expectation that our expenses may continue to increase in connection with our ongoing activities, particularly as we advance our commercialization activities; • our ability to gain market acceptance, commercial viability and profitability of ContraPest, Evolve and any other approved products; • our ability to market our products and establish an effective sales force and marketing infrastructure to generate significant revenue; • the success of our research and development; • the development of our products for multiple indications including application to non-Rodentia mammalian species; • our ability to retain and attract key personnel to develop, operate and grow our business; • our ability to meet our working capital needs; • our expectations regarding our ability to obtain and maintain intellectual property protection for our products and our ability to operate our business without infringing on the intellectual property rights of others; 15 Table of Contents • our estimates or expectations related to our revenue, cash flow, expenses, capital requirements and need for additional financing; and • our future financial performance, including our ability to fund operations. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and situations that are difficult to predict and that may cause our own, or our industry’s, actual results to be materially different from the future results that are expressed or implied by these statements. Accordingly, actual results may differ materially from those anticipated or expressed in such statements as a result of a variety of factors, including those discussed in Item 1A—“Risk Factors” of Part I of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 13, 2026, and those contained from time to time in our other filings with the SEC. A number of factors could cause our actual results to differ materially from those indicated by the forward-looking statements. Such factors include, among others, the following: • the successful commercialization of our products; • market acceptance of our products; • our financial performance, including our ability to fund operations; • our ability to maintain compliance with Nasdaq Capital Market’s continued listing requirements; • regulatory approval and regulation of our products; and • other factors and risks identified from time to time in our filings with the SEC, including this Quarterly Report on Form 10-Q. All forward-looking statements included herein are based on information available to us as of the date hereof and speak only as of such date. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. The forward-looking statements contained in or incorporated by reference into this Quarterly Report on Form 10-Q reflect our views as of the date of this Quarterly Report on Form 10-Q about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results, performance or achievements to differ significantly from those expressed or implied in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, performance or achievements. We are subject to the information requirements of the Exchange Act, and we file or furnish reports, proxy statements and other information with the SEC. Such reports and other information we file with the SEC are available free of charge at www.senestech.com as soon as practicable after such reports are available on the SEC’s website at www.sec.gov. The SEC’s website contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Overview Over the past year, SenesTech has transformed from a research-focused organization into a revenue-driven company with a strategy focused on the commercialization of its proprietary pest management technologies for managing animal pest populations through fertility control. Our current product offerings are focused on rat and mouse population management and consist of Evolve Rat, Evolve Mouse (collectively, “Evolve”), and ContraPest. Our strategy is centered on three priorities: (i) strengthening our e-commerce business to build the Evolve brand, educate the market, and establish credibility for a new category of pest management products; (ii) expanding our direct business-to-business (“B2B”) operations through a professional sales organization focused on targeted vertical markets for both Evolve and ContraPest; and (iii) increasing our market opportunity through strategic partnerships, new products, and value-added services. During the quarter ended June 30, 2026, we continued to make meaningful progress executing this strategy. We completed the transition of our Amazon and Shopify operations to our direct management, improved gross margins, increased the contribution of Evolve to overall revenue, and continued to expand our commercial infrastructure across multiple sales 16 Table of Contents channels. We believe these operational milestones demonstrate continued execution against our commercialization strategy and position the Company for potential future growth. We initially prioritized our e-commerce business by bringing our Amazon and Shopify operations under direct management, providing greater control over pricing, merchandising, customer relationships, and the overall customer experience. We believe these capabilities not only improve margins but also generate valuable customer insights, strengthen brand loyalty, and enhance our ability to drive recurring revenue through subscriptions and repeat purchases. As consumer awareness and adoption continue to grow, we believe our expanding base of customer reviews, subscriptions, and brand recognition will also support broader commercial adoption of our products. Building on this foundation, we are expanding our B2B business with a disciplined, vertical-market sales strategy targeting opportunities across commercial, government, pest management, agribusiness, retail, ecommerce, zoo and sanctuary, and international markets. Our ongoing commercialization investments—including expanding our professional sales organization, developing industry-specific sales materials, and creating value propositions and return-on-investment models—are designed to accelerate customer acquisition, deepen customer relationships, and support revenue growth across multiple end markets. These investments are distinct from one-time transition and leadership-related costs incurred during the year and reflect our long-term commitment to building a scalable commercial organization. In addition to product sales, we are developing assessment and implementation services that leverage proprietary AI technology, field data, and professional expertise to help B2B customers evaluate pest populations, optimize product deployment, and measure treatment effectiveness. We believe these value-added services create incremental revenue opportunities, strengthen customer relationships, and further differentiate SenesTech in the marketplace by expanding our role beyond product sales to become a strategic pest management partner. Management evaluates the progress of our commercialization strategy using several operating and financial indicators that we believe reflect the development of a scalable commercial business. These include growth in Evolve revenue, the mix of revenue generated through our direct-to-consumer channel, gross margin performance, repeat purchases and subscription activity, expansion of customer relationships across targeted commercial and government verticals, and adoption of our products and services by new customers. While these indicators may fluctuate from period to period, management believes that sustained improvement across these measures will lead to increasing market acceptance of our products and demonstrate continued execution of our commercialization strategy. We believe our integrated strategy of building consumer awareness, expanding commercial sales, and offering differentiated products and services positions the Company for sustainable long-term growth. The operational progress achieved during the quarter, combined with our continued commercialization investments, reinforces our confidence that we are executing our strategy as planned while creating opportunities for future revenue growth and margin expansion. 17 Table of Contents Results of Operations The following table summarizes our results of operations for the periods presented (in thousands): Three Months Ended June 30, % Increase (Decrease) Six Months Ended June 30, % Increase (Decrease) 2026 2025 2026 2025 Revenues, net $ 770 $ 625 23 % $ 1,263 $ 1,110 14 % Cost of sales 203 216 (6) % 358 388 (8) % Gross profit 567 409 39 % 905 722 25 % Operating expenses: Research and development 377 427 (12) % 799 845 (5) % Selling, general and administrative 2,052 1,596 29 % 4,087 3,154 30 % Total operating expenses 2,429 2,023 20 % 4,886 3,999 22 % Loss from operations (1,862) (1,614) 15 % (3,981) (3,277) 21 % Interest income (expense), net 30 (2) * 86 (4) * Net loss $ (1,832) $ (1,616) 13 % $ (3,895) $ (3,281) 19 % * Not applicable. Revenues Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Change 2026 2025 Change By product line: Evolve $ 662 86 % $ 520 83 % $ 142 27 % $ 1,079 85 % $ 903 81 % $ 176 19 % ContraPest 108 14 % 105 17 % 3 3 % 184 15 % 207 19 % (23) (11) % $ 770 100 % $ 625 100 % $ 145 23 % $ 1,263 100 % $ 1,110 100 % $ 153 14 % By sales channel: E-commerce $ 511 66 % $ 167 27 % $ 344 206 % $ 689 55 % $ 304 27 % $ 385 127 % B2B 259 34 % 458 73 % (199) (43) % 574 45 % 806 73 % (232) (29) % $ 770 100 % $ 625 100 % $ 145 23 % $ 1,263 100 % $ 1,110 100 % $ 153 14 % Sales, net of sales discounts and promotions, were $770,000 for the second quarter of 2026, compared to $625,000 for the second quarter of 2025. The $145,000 increase was primarily driven by higher sales of our Evolve product offerings, reflecting continued growth in our e-commerce sales channels. Evolve represented approximately 86% of second quarter 2026 revenues, compared to 83% in the second quarter of 2025, reflecting the continued shift in our product mix toward Evolve and, correspondingly, a greater proportion of revenues generated through our e-commerce sales channel. Sales, net of sales discounts and promotions, were $1.3 million for the six months ended June 30, 2026, compared to $1.1 million for the same period of 2025. The $153,000 increase was primarily driven by higher sales volume of Evolve, supported by continued growth in our e-commerce sales channel. Evolve represented approximately 85% of revenues for the six months ended June 30, 2026, compared to 81% in the same period of 2025, reflecting the continued shift in our product mix toward Evolve. The increase in Evolve sales was partially offset by lower ContraPest sales, which primarily occur through our B2B sales channel, resulting in an overall shift in our revenue mix toward e-commerce during the period. B2B sales were also impacted by personnel turnover within our sales and marketing organizations during the first half of 2026. With the transition complete, we expect an increase in B2B sales, including increased ContraPest sales. 18 Table of Contents Cost of Sales Cost of sales consists of costs related to products sold, including scrap and any reserves for obsolescence, as well as shipping costs when charged to the customer. Cost of sales was $203,000, or 26.4% of net sales, for the second quarter of 2026, compared to $216,000, or 34.6%, for the second quarter of 2025. Cost of sales was $358,000, or 28.3% of net sales, for the six months ended June 30, 2026, compared to $388,000, or 35.0%, for the same period of 2025. Gross Profit Gross profit for the second quarter of 2026 was $567,000, representing a margin of 73.6%, compared to $409,000, or 65.4%, in the second quarter of 2025. Gross profit improved primarily as a result of the transition to selling directly on Amazon, which began in February 2026 and was completed during the second quarter. Selling directly allows the Company to realize a higher selling price per unit than under the prior third-party distributor arrangement, and the resulting increase in gross profit more than offsets the marketplace fees, commissions and other operating costs now recorded in selling, general and administrative expenses. Gross profit for the six months ended June 30, 2026 was $905,000, representing a margin of 71.7%, compared to $722,000, or 65.0%, for the same period of 2025. The improvement reflects the same factors affecting the quarterly comparison and demonstrates continued progress in the execution of our commercialization strategy. Research and Development Expenses Research and development expenses consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Change 2026 2025 Change Personnel related (including stock-based compensation) $ 206 $ 219 $ (13) (6) % $ 462 $ 472 $ (10) (2) % Facility-related 105 131 (26) (20) % 206 206 — — % Depreciation 30 29 1 3 % 60 61 (1) (2) % Supplies and maintenance 16 22 (6) (27) % 34 42 (8) (19) % Other 20 26 (6) (23) % 37 64 (27) (42) % Total $ 377 $ 427 $ (50) (12) % $ 799 $ 845 $ (46) (5) % Research and development expenses were $377,000 for the second quarter of 2026, compared to $427,000 for the second quarter of 2025, representing a decrease of $50,000. Research and development expenses were $799,000 for the six months ended June 30, 2026, compared to $845,000 during the same period of 2025, representing a decrease of $46,000. The quarterly decrease was primarily attributable to higher facility-related expenses incurred during the second quarter of 2025 in connection with our April 2025 relocation to a new manufacturing site. During the transition, we incurred costs associated with operating both the former and new facilities concurrently. For the six months ended June 30, 2026, the decrease was primarily due to lower other and personnel-related costs, reflecting the benefits of the Company’s ongoing cost-containment efforts. Facility-related expenses were comparable to the prior year period, as higher facility costs incurred in 2026 were offset by incremental costs incurred in 2025 related to the transition in manufacturing facilities. 19 Table of Contents Selling, General and Administrative Expenses Selling, general and administrative expenses consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Change 2026 2025 Change Personnel related (including stock-based compensation) $ 902 $ 614 $ 288 47 % $ 1,779 $ 1,326 $ 453 34 % Professional fees 777 512 265 52 % 1,600 942 658 70 % Marketing 55 64 (9) (14) % 111 128 (17) (13) % Insurance 52 47 5 11 % 107 97 10 10 % Licensed software 50 45 5 11 % 101 96 5 5 % Retailer and third party fees and commissions 76 — 76 * 76 — 76 * Travel and entertainment 14 32 (18) (56) % 61 94 (33) (35) % Franchise fees 42 146 (104) (71) % 42 146 (104) (71) % Other 84 136 (52) (38) % 210 325 (115) (35) % Total $ 2,052 $ 1,596 $ 456 29 % $ 4,087 $ 3,154 $ 933 30 % * - Not applicable. Selling, general and administrative expenses were $2.1 million for the second quarter of 2026, compared to $1.6 million for the second quarter of 2025, representing an increase of $456,000. The overall increase in selling, general and administrative expenses for the quarter reflects a combination of non-recurring leadership succession costs, strategic investments in sales and marketing initiatives, and transitional and incremental costs associated with bringing the Company’s Amazon business in-house. Leadership succession costs totaling approximately $303,000 are not expected to recur, while the consulting and transition-related costs are expected to moderate as the Company reduces reliance on consultants that supported personnel transitions within the sales and marketing organizations and the completion of strategic initiatives. Personnel-related costs increased primarily due to leadership succession activities and included $273,000 of severance costs, which are not expected to recur. Professional fees increased by $265,000, including $122,000 of higher board compensation resulting from an increase in the number of Board members and changes in director compensation rates, responsibilities, and committee assignments, and $30,000 of executive search expenses associated with leadership succession. Consulting fees also increased approximately $118,000 to support the sales and marketing organizations during personnel transitions and to advance strategic sales and marketing initiatives, including product packaging redesign, marketing strategy development, and the transition to direct sales on Amazon. As the personnel transitions within the sales and marketing organizations and these strategic initiatives have largely been completed, we expect consulting costs to moderate in the coming quarters. We also incurred approximately $76,000 of incremental operating costs associated with bringing third-party marketplace management, including Amazon, in-house. These costs, which were not incurred in the prior-year period, primarily reflect the economics of selling directly on Amazon rather than through a third-party distributor. Selling directly enables the Company to realize a higher selling price and a higher gross profit per unit, which more than offsets the marketplace fees, commissions and other operating costs the Company now bears directly. The transition to direct management of our Amazon business, which began in February 2026 and was completed during the second quarter, provides greater control over pricing, merchandising, customer relationships and the overall customer experience while positioning the Company to sustain healthy margins, strengthen customer engagement, and capture valuable customer insights that support future revenue growth. These increases were partially offset by lower franchise fees and other operating costs resulting from our ongoing cost-containment efforts. 20 Table of Contents Selling, general and administrative expenses were $4.1 million for the six months ended June 30, 2026, compared to $3.2 million for the same period of 2025, representing an increase of $933,000. The overall increase in selling, general and administrative expenses for the six-month period reflects a combination of non-recurring leadership succession costs, legal-related costs, strategic investments in sales and marketing initiatives, and transitional and incremental costs associated with bringing our Amazon business in-house. Leadership succession costs and legal costs related to a specific matter and transition totaling approximately $780,000 are not expected to recur, while the consulting and transition-related costs are expected to moderate as the Company reduces reliance on consultants that supported personnel transitions within the sales and marketing organizations and the completion of strategic initiatives. Personnel-related costs increased primarily due to leadership succession activities and included $503,000 of severance costs, which are not expected to recur. Professional fees increased by $658,000, including $241,000 of higher legal fees driven by the settlement of a specific legal matter and succession and transition activity, $201,000 of higher board compensation resulting from an increase in the number of Board members and changes in director compensation rates, responsibilities, and committee assignments, and $60,000 of executive search expenses associated with leadership succession. Consulting fees also increased approximately $146,000 to support the sales and marketing organizations during personnel transitions and to advance strategic sales and marketing initiatives, including product packaging redesign, marketing strategy development, and the transition to direct sales on Amazon. As the personnel transitions within the sales and marketing organizations and these strategic initiatives have largely been completed, we expect consulting costs to moderate in the coming quarters. We also incurred approximately $76,000 of incremental operating costs associated with bringing third-party marketplace management, including Amazon, in-house, as discussed above. These increases were partially offset by lower franchise fees and other operating costs resulting from our ongoing cost-containment efforts. Interest Income (Expense), Net For the second quarter of 2026, interest income, net was $30,000, consisting of $35,000 in interest income and $5,000 in interest expense. This compares to interest expense, net of $2,000 in the second quarter of 2025, consisting of $6,000 in interest expense and $4,000 in interest income. The increase in interest income in 2026 reflects a higher average balance of cash, cash equivalents and investments compared to the same period in 2025. For the six months ended June 30, 2026, interest income, net was $86,000, consisting of $95,000 in interest income and $9,000 in interest expense. This compares to interest expense, net of $4,000, consisting of $11,000 in interest expense and $7,000 in interest income. The increase in interest income in 2026 reflects a higher average balance of cash, cash equivalents and investments compared to the same period in 2025. Liquidity and Capital Resources Liquidity Since our inception, we have incurred operating losses related to our research and development activities and commercialization efforts, with a net loss of $3.9 million for the six months ended June 30, 2026, and we expect these losses to continue for the near future. Although sales of our product have increased over the last three years —20 % in 2025, 56% in 2024, and 17% in 2023 — we are not yet able to fund operations by product sales alone. We have primarily funded our operations through the sale of equity securities, including common stock and warrants to purchase common stock. Through June 30, 2026, we received net proceeds of $117.2 million primarily from the sales of our equity securities, including warrant exercises, an aggregate of $9.0 million in product sales and an aggregate of $1.7 million from licensing fees. As of June 30, 2026, cash and cash equivalents were $5.1 million, compared to cash and cash equivalents and short-term investments of $8.6 million as of December 31, 2025. Based on our current operating plan, we believe that our cash and cash equivalents as of June 30, 2026, together with current revenues and operating expense levels, will be sufficient to fund our operations through the end of the first quarter 21 Table of Contents of fiscal 2027. This estimate assumes no material changes in working capital requirements. Increased revenues, reduced operating expenses, or additional financing, if obtained, would further extend our cash runway. Our projected cash runway does not assume the receipt of additional capital from equity issuances, debt financings, strategic partnerships, or other external sources. While we have evaluated and continue to evaluate our operating expenses and have focused our resources on the successful commercialization of fertility control products in the United States, additional financing will be needed in order to fund our operating losses before achieving our revenue and margin targets and becoming profitable and generating positive cash flows. We may never achieve profitability or generate positive cash flows, and unless and until we do, we will continue to need to raise capital through equity or debt financing. If revenue growth does not occur at anticipated levels, or if expenses exceed current expectations, we may be required to seek additional financing sooner than currently anticipated. We continue to evaluate various financing alternatives, including equity offerings under our existing ATM program, strategic partnerships, and other capital-raising transactions. There can be no assurance that additional capital will be available on acceptable terms, if at all. If equity or debt financing is not available at adequate levels or on acceptable terms, we may need to delay, limit or terminate our commercialization and development efforts, sell certain assets, or discontinue operations, or we may be required to take other measures that could impair our ability to be successful and operate as a going concern. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest could be diluted and the terms of these securities may include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt financing may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends and may be secured by all or a portion of our assets. If we fail to obtain additional capital as and when required, such failure could have a material impact on our business, results of operations and financial condition. Additional Funding Requirements Our expenses may continue to increase in connection with our ongoing activities, particularly as we focus on marketing and sales of fertility control products. In addition, we will continue to incur costs associated with operating as a public company. In particular, we expect to incur increased expenses as we: • work to maximize market acceptance for, and generate sales of, our products, including by conducting field demonstrations for potential lead customers; • explore strategic partnerships to enable us to penetrate additional target markets and geographical locations; • manage the infrastructure for sales, marketing and distribution of fertility control products and any other product candidates for which we may receive regulatory approval; • seek additional regulatory approvals for fertility control products, including to more fully expand the market and use for fertility control products and, if we believe there is commercial viability, for our other product candidates; • further develop our manufacturing processes to contain costs while being able to scale to meet future demand of fertility control products and any other product candidates for which we receive regulatory approval; • continue product development of fertility control products and advance our research and development activities and, as our operating budget permits, advance the research and development programs for other product candidates; • maintain and protect our intellectual property portfolio; and • add operational, financial and management information systems and personnel, including personnel to support our product development and commercialization efforts and operations as a public company. We will need additional financing to fund these continuing and additional expenses. 22 Table of Contents Capital Resources The following table summarizes our sources and uses of cash for each of the periods presented (in thousands): Six Months Ended June 30, 2026 2025 Cash and cash equivalents, beginning of period $ 7,575 $ 1,307 Net cash provided by (used in): Operating activities (3,638) (2,707) Investing activities 1,000 (83) Financing activities 143 7,538 Increase (decrease) in cash and cash equivalents (2,495) 4,748 Cash and cash equivalents, end of period $ 5,080 $ 6,055 Cash Flows from Operating Activities— Cash flows from operating activities are generally determined by the amount and timing of cash received from customers and payments made to vendors, as well as the nature and amount of non-cash items, including depreciation and amortization and stock-based compensation included in operating results during a given period. During the six months ended June 30, 2026, operating activities used $3.6 million of cash, resulting from our net loss of $3.9 million and net changes in our operating assets and liabilities of $19,000, partially offset by net non-cash charges of $276,000, consisting primarily of stock-based compensation and depreciation and amortization. Our net loss was driven by costs related to our selling, general and administrative activities resulting from our continued efforts to commercialize our products, combined with research and development costs related to our continued efforts on formulations of new products and improvements to existing products. Net cash used by changes in our operating assets and liabilities consisted of increases in accounts receivable of $160,000 and prepaid expenses of $76,000 and a decrease in deferred revenue of $20,000, partially offset by an increase in accounts payable and accrued expenses of $212,000 and decrease in inventory of $25,000. During the six months ended June 30, 2025, operating activities used $2.7 million of cash, resulting from our net loss of $3.3 million, partially offset by non-cash charges of $299,000 and net changes in our operating assets and liabilities of $275,000, consisting primarily of stock-based compensation, depreciation and amortization and operating lease expenses. Our net loss was driven by costs related to our selling, general and administrative activities resulting from our efforts to commercialize our products, combined with costs related to our research and development efforts. Net cash provided by changes in our operating assets and liabilities consisted primarily of a net increase in accounts payable and accrued expenses of $194,000 combined with decreases in prepaid expenses of $139,000 and inventory of $83,000, partially offset by an increase in accounts receivable of $141,000. Cash Flows from Investing Activities— Cash flows used in investing activities consist of held-to-maturity investment transactions and purchases of property and equipment. For the six months ended June 30, 2026, cash provided by investing activities consisted of the maturity of a held-to-maturity investment totaling $1.0 million compared to cash used in investing activities related to property and equipment purchases of $83,000 in the same period of 2025. Cash Flows from Financing Activities— Financing activities provide cash for both day-to-day operations and capital requirements as needed. During the six months ended June 30, 2026, net cash provided by financing activities consisted of net proceeds received from the issuance of common stock under our ATM Facility of $173,000, partially offset by repayments on notes payable of $30,000. During the six months ended June 30, 2025, net cash provided by financing activities consisted of net proceeds received from the exercise of warrants of $4.9 million and from the issuance of common stock under our ATM Facility of $2.7 million, partially offset by the repayment of notes payable of $28,000. Critical Accounting Policies and Estimates There have been no material changes to our critical accounting policies and estimates as previously disclosed in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 13, 2026. 23 Table of Contents Item 3. Quantitative and Qualitative Disclosures about Market Risk Not applicable.