What changed in this filing

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Item 1. Financial Statements

2025-05-06 compared with 2024-11-14 · 418 added, 590 removed, 191 unchanged (84% of the section changed)

2 unchanged sentences

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

September 30, December 31,

(In thousands, except share and per share amounts)

March 31, December 31,

CURRENT ASSETS

Cash and cash equivalents $ 33,802 $ 48,277

5 unchanged sentences

Restricted cash 3,549 3,538

GeneFab receivable - related party, net of current portion — 1,119

Property and equipment, net 20,533 21,289

Operating lease right-of-use assets 13,407 13,948

GeneFab Economic Share - related party — 1,816

Other long-term assets 88 215

Other non-current assets 76 105

TOTAL ASSETS $ 82,778 $ 97,841

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable $ 1,559 $ 1,454

Finance lease liabilities - related party, current portion 103 97

Early exercise liability, current portion 45 135

GeneFab sublease deferred income - related party 639 989

Accrued expenses and other current liabilities 3,843 6,385

Operating lease liabilities 4,486 4,031

Contingent earnout liability 20 —

Current liabilities of discontinued operations — 243

Operating lease liabilities, current 4,811 4,647

GeneFab sublease deferred income - related party 513 660

Total current liabilities 10,726 13,146

Operating lease liabilities, net of current portion 30,120 33,538

GeneFab Option - related party — 6,331

Other liabilities, net of current portion 2,543 —

Contingent earnout liability, net of current portion — 20

Early exercise liability, net of current portion — 10

Operating lease liabilities, non-current 27,634 28,891

Other non-current liabilities 6,559 5,049

TOTAL LIABILITIES 44,919 47,086

Commitments and contingencies ( Note 1 3 )

September 30, December 31,

Series A redeemable convertible preferred stock, $ 0.0001 par value;

zero and 21,200 shares authorized as of March 31, 2025 and December 31, 2024, respectively;

zero and 21,157 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively;

aggregate liquidation preference of zero and $ 147,647 as of March 31, 2025 and December 31, 2024, respectively

STOCKHOLDERS’ EQUITY

Preferred stock, $ 0.0001 par value;

10,000,000 shares authorized at September 30, 2024 and December 31, 2023;

zero shares issued and outstanding at September 30, 2024 and December 31, 2023

Common stock, $ 0.0001 par value;

500,000,000 shares authorized at September 30, 2024 and December 31, 2023;

4,586,957 and 4,569,900 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

500,000,000 shares authorized as of both March 31, 2025 and December 31, 2024;

26,004,366 and 4,829,035 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital 349,102 322,782

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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 82,778 $ 97,841

All periods presented have been retroactively adjusted to reflect the 1-for-10 reverse stock split effected on July 17, 2024.

Refer to Note 2.

Summary of Significant Accounting Policies, for further information.

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Contract revenue $ — $ 255 $ — $ 1,978

Grant income — 83 — 583

Total revenue — 338 — 2,561

(In thousands, except share and per share amounts)

Three Months Ended March 31,

Operating expenses:

Research and development (including related party cost of $ 3,790 and $ 1,186 for the three months ended September 30, 2024 and 2023, respectively, and $ 11,059 and $ 1,186 for the nine months ended September 30, 2024 and 2023, respectively)

8,655 9,092 26,584 23,028

Research and development (including related party costs of $ 4,070 and $ 3,632 for the three months ended March 31, 2025 and March 31, 2024, respectively)

General and administrative 7,116 7,522

Impairment of long-lived assets 313 25,691 313 25,691

Total operating expenses 16,397 16,301

Loss from operations ( 16,397 ) ( 16,301 )

Other income (expense)

Interest income, net 150 583 718 2,438

Change in fair value of contingent earnout liability — — — 207

Change in fair value of GeneFab Note Receivable - related party ( 17,435 ) 287 ( 17,240 ) 287

Change in fair value of GeneFab Economic Share - related party ( 398 ) ( 123 ) ( 1,816 ) ( 123 )

Change in fair value of GeneFab Option - related party 2,386 5,629 6,331 5,629

Other income:

Interest income 394 331

GeneFab sublease income - related party 1,713 1,461

Other income (expense) ( 11 ) ( 14 ) ( 6 ) ( 26 )

Total other income (expense), net ( 13,651 ) 7,261 ( 7,308 ) 9,311

Net loss from continuing operations ( 28,866 ) ( 36,615 ) ( 52,180 ) ( 64,718 )

Net income from discontinued operations — 21,692 — 12,376

Other income 178 —

Change in fair value of GeneFab Option - related party — 2,314

Change in fair value of GeneFab Economic Share - related party — 55

Change in fair value of GeneFab Note Receivable - related party — 29

Total other income 2,285 4,190

Net loss $ ( 14,112 ) $ ( 12,111 )

Other comprehensive loss

Unrealized loss on investments — — — ( 1 )

Comprehensive loss $ ( 14,112 ) $ ( 12,111 )

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Net loss per share, basic and diluted

Net loss per share from continuing operations, basic and diluted $ ( 6.31 ) $ ( 8.24 ) $ ( 11.41 ) $ ( 14.62 )

Net income per share from discontinued operations, basic and diluted — 4.88 — 2.80

Net loss per share, basic and diluted $ ( 6.31 ) $ ( 3.36 ) $ ( 11.41 ) $ ( 11.82 )

Weighted-average shares outstanding, basic and diluted 4,577,122 4,447,223 4,573,307 4,427,458

All periods presented have been retroactively adjusted to reflect the 1-for-10 reverse stock split effected on July 17, 2024.

Refer to Note 2.

Summary of Significant Accounting Policies, for further information.

Basic and diluted net loss $ ( 14,112 ) $ ( 12,111 )

Basic and diluted net loss per share $ ( 1.41 ) $ ( 2.65 )

Basic and diluted weighted-average number of shares used in computing net loss per share 10,012,908 4,570,744

The accompanying notes are an integral part of these condensed consolidated financial statements.

SENTI BIOSCIENCES, INC.

Condensed Consolidated Statements of Stockholders’ Equity

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity

(In thousands, except share data)

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income Accumulated

Deficit Total

Stockholders’

Shares Amount

Balance as of December 31, 2023

4,569,900 $ 1 $ 311,256 $ — $ ( 244,344 ) $ 66,913

Vesting of early exercise of common stock options 1,266 — 34 — — 34

Stock-based compensation expense — — 1,258 — — 1,258

Net loss — — — — ( 12,111 ) ( 12,111 )

Balance as of March 31, 2024

4,571,166 1 312,548 — ( 256,455 ) 56,094

Redeemable Convertible Preferred Stock

Common Stock Additional Paid-in Capital Accumulated Deficit

Total Stockholders’ Equity

Shares Amount Shares Amount

Balance at December 31, 2023 — $ — 4,569,900 $ 1 $ 311,256 $ ( 244,344 ) $ 66,913

Vesting of early exercise of common stock options — — 1,266 — 34 — 34

Stock-based compensation expense — — ( 776 ) — — ( 776 )

Stock-based compensation — — — — 1,258 — 1,258

Net loss — — — — — ( 12,111 ) ( 12,111 )

Balance as of June 30, 2024

4,572,432 1 311,805 — ( 267,658 ) 44,148

Common Stock Purchase Agreement settled in common stock, net of fees 3,593 — 10 — — 10

Balances at March 31, 2024 — $ — 4,571,166 $ 1 $ 312,548 $ ( 256,455 ) $ 56,094

Balances at December 31, 2024 21,157 $ 25,106 4,829,035 $ 1 $ 322,782 $ ( 297,134 ) $ 25,649

Conversion of Series A redeemable convertible preferred stock to common stock ( 21,157 ) ( 25,106 ) 21,157,000 2 25,104 — 25,106

Issuance of common stock for vesting of restricted stock units — — 17,909 — — — —

Vesting of early exercise of common stock options — — 422 — 12 — 12

Stock-based compensation expense — — 668 — — 668

Net loss — — — — ( 28,866 ) ( 28,866 )

Balance as of September 30, 2024

4,586,957 $ 1 $ 312,517 $ — $ ( 296,524 ) $ 15,994

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income Accumulated

Deficit Total

Stockholders’

Shares Amount

Balance as of December 31, 2022

4,406,137 $ — $ 300,548 $ 1 $ ( 173,286 ) $ 127,263

Vesting of early exercise of common stock options 1,266 — 34 — — 34

Stock-based compensation expense — 3,763 — — 3,763

Unrealized gain on investments — — — 2 — 2

Net loss — — — — ( 18,722 ) ( 18,722 )

Balance as of March 31, 2023

4,407,403 — 304,345 3 ( 192,008 ) 112,340

Vesting of early exercise of common stock options 1,266 — 34 — — 34

Issuance of common stock under Employee Stock Purchase Plan (ESPP) 37,715 — 308 — — 308

Stock-based compensation expense — — 3,434 — — 3,434

Unrealized loss on investments — — — ( 3 ) — ( 3 )

Net loss — — — — ( 18,697 ) ( 18,697 )

Balance as of June 30, 2023

4,446,384 — 308,121 — ( 210,705 ) 97,416

Vesting of early exercise of common stock options 1,266 — 34 — — 34

Stock-based compensation expense — — 409 — — 409

Stock-based compensation — — — — 1,204 — 1,204

Net loss — — — — — ( 14,112 ) ( 14,112 )

Balance as of September 30, 2023

4,447,650 $ — $ 308,564 $ — $ ( 225,628 ) $ 82,936

All periods presented have been retroactively adjusted to reflect the 1-for-10 reverse stock split effected on July 17, 2024.

Refer to Note 2.

Summary of Significant Accounting Policies, for further information.

Balance at March 31, 2025 — $ — 26,004,366 $ 3 $ 349,102 $ ( 311,246 ) $ 37,859

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES

1 unchanged sentence

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

Stock-based compensation 1,204 1,258

Depreciation 926 984

Amortization of operating lease right-of-use assets 1,491 1,386

Accretion of discount on short-term investments — ( 1,069 )

Gain on disposal of business — ( 21,862 )

Change in fair value of contingent earnout liability — ( 207 )

Change in fair value of GeneFab Note Receivable - related party — ( 29 )

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Change in fair value of GeneFab Option - related party — ( 2,314 )

Impairment of long-lived assets 313 25,691

Stock-based compensation expense 1,150 7,606

Loss on sale of property and equipment - related party 107 —

Other non-cash charges, net 98 ( 21 )

Changes in assets and liabilities:

Changes in operating assets and liabilities:

Accounts receivable 32 38

2 unchanged sentences

Prepaid expenses and other assets ( 265 ) 192

Operating lease right-of-use assets 542 477

Accounts payable 357 389

Accrued expenses and other current liabilities ( 1,119 ) ( 2,946 )

GeneFab sublease deferred income - related party ( 350 ) 747

Deferred revenue — ( 799 )

Operating lease liabilities ( 1,093 ) ( 946 )

Other liabilities, net of current portion 113 —

GeneFab sublease deferred income - related party ( 147 ) ( 127 )

Net cash used in operating activities ( 14,050 ) ( 11,682 )

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of short-term investments — ( 17,990 )

Maturities of short-term investments — 60,000

Purchases of property and equipment — ( 15 )

Proceeds from sale of property and equipment 60 —

Net cash provided by investing activities 45 29,976

Net cash used in investing activities — ( 15 )

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from CIRM Grant 1,510 —

Proceeds from issuance of common stock under Common Stock Purchase Agreement 10 308

Principal finance lease payments — ( 85 )

Net cash provided by financing activities 2,440 223

Nine Months Ended September 30,

Payment of issuance costs ( 1,924 ) —

Net cash used in financing activities ( 414 ) —

NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH ( 14,464 ) ( 11,697 )

1 unchanged sentence

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period $ 37,351 $ 27,751

Reconciliation of cash, cash equivalents and restricted cash

Cash and cash equivalents $ 10,479 $ 39,430

Restricted cash 3,561 6,398

Total $ 14,040 $ 45,828

Supplemental disclosures of noncash investing and financing and items

SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:

Purchases of property and equipment in accounts payable and accrued expenses $ 170 $ —

Receivable in prepaid expenses and other current assets $ 52 $ —

Refer to Note 3.

GeneFab Transaction, for details of non-cash items

Unpaid issuance costs $ 605 $ —

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Senti Biosciences, Inc.

and its subsidiaries (the “Company” or “Senti”), is an early clinical stage biotechnology company developing next-generation cell and gene therapies engineered with its gene circuit platform technologies for patients living with incurable diseases.

and its subsidiaries (the “Company” or “Senti”), is a clinical stage biotechnology company developing next-generation cell and gene therapies engineered with its gene circuit platform technologies for patients living with incurable diseases.

Senti’s mission is to create a new generation of smarter therapies that can outsmart complex diseases using novel and unprecedented approaches.

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The Company is headquartered in South San Francisco, California.

On June 8, 2022 (the “Closing Date”), Dynamics Special Purpose Acquisition Corp.

(“Dynamics” or “DYNS”) consummated a merger pursuant to which Explore Merger Sub, Inc.

(“Merger Sub”), a Delaware corporation and wholly owned subsidiary of Dynamics, merged with and into Senti Sub I, Inc., formerly named Senti Biosciences, Inc.

(“Legacy Senti”), with Legacy Senti surviving as a wholly-owned subsidiary of Dynamics (such transactions, the “Merger,” and, collectively with the other transactions described in the merger agreement).

As a result of the Merger, Dynamics was renamed Senti Biosciences, Inc.

On August 7, 2023, the Company completed a transaction with GeneFab, LLC (“GeneFab”), a contract manufacturing and synthetic biology biofoundry focused on next-generation cell and gene therapies.

As part of that transaction, the Company disposed of its non-oncology business and in-house manufacturing services and subleased its manufacturing facility to GeneFab.

Refer to Note 3.

GeneFab Transaction, for further details of the GeneFab transaction, and to Note 14.

Related Parties, for related party discussion.

Liquidity and Going Concern

These consolidated financial statements have been prepared in accordance with U.S.

generally accepted accounting principles (“U.S.

These condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.

GAAP”) assuming the Company will continue as a going concern.

The going concern assumption 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.

The condensed 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.

The Company has devoted substantially all of its efforts to organizing and staffing, business planning, raising capital, and conducting preclinical and clinical studies and has not realized substantial revenues from its planned principal operations.

To date, the Company has raised aggregate gross proceeds of $ 302.5 million from the Merger and a private placement completed concurrently with the Merger (the “PIPE Financing”), the issuance of shares of its common stock, the issuance of shares of redeemable convertible preferred stock, the issuance of convertible notes and, to a lesser extent, through collaboration agreements, government grants and loans.

On August 3, 2024, the Company executed an agreement with California Institute of Regenerative Medicine (the “CIRM Grant Agreement”) for a total grant award of $ 8.0 million.

Under the CIRM Grant Agreement, the Company must achieve certain operational milestones to receive the grant tranches.

Refer to Note 8.

CIRM Grant, for further details of the CIRM Grant Agreement.

At September 30, 2024 and December 31, 2023, the Company had an accumulated deficit of $ 296.5 million and $ 244.3 million , respectively.

The Company’s net losses were $ 52.2 million and $ 52.3 million for the nine months ended September 30, 2024 and 2023, respectively.

Substantially all of the Company’s operating net losses resulted from costs incurred in connection with the Company’s research and development programs and from general and administrative costs associated with the Company’s operations.

As of March 31, 2025, the Company raised aggregate gross proceeds of $ 355.9 million from the merger in 2022, the issuance of shares of common stock, the issuance of shares of redeemable convertible preferred stock, the issuance of convertible notes, and, to a lesser extent, through collaboration agreements and governmental grants and loans.

As of March 31, 2025 and December 31, 2024, the Company had an accumulated deficit of $ 311.2 million and $ 297.1 million , respectively.

The Company’s net losses were $ 14.1 million and $ 12.1 million for the three months ended March 31, 2025 and 2024, respectively.

Substantially all of the Company’s net losses resulted from costs incurred in connection with the Company’s research and development programs and from general and administrative costs associated with the Company’s operations.

The Company expects to incur substantial operating losses and negative cash flows from operations for the foreseeable future as the Company advances its preclinical activities and clinical trials for its product candidates in development.

The Company has concluded that substantial doubt exists that the Company’s cash and cash equivalents of $ 10.5 million as of September 30, 2024 are sufficient for the Company to continue as a going concern for at least one year from the issuance date of these condensed consolidated financial statements.

The Company concluded that substantial doubt continued to exist and that the Company’s cash and cash equivalents of $ 33.8 million as of March 31, 2025, were not sufficient for the Company to continue as a going concern for at least one year from the issuance date of these condensed consolidated financial statements.

Additional funds will be necessary to maintain current operations and to continue research and development activities.

The Company’s

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

continued existence is dependent upon management’s ability to raise capital and ultimately develop profitable op erations.

The Company’s continued existence is dependent upon management’s ability to raise capital and ultimately develop profitable operations.

While management is devoting substantially all of its efforts to developing the Company’s business and raising capital, there can be no assurance that the Company’s efforts will be successful.

Moreover, no assurance can be given that management’s actions will result in profitable operations or the meeting of ongoing liquidity needs.

NASDAQ Bid Price Compliance Notice

On August 7, 2023, the Company received written notice from the Listing Qualifications Department of the Nasdaq Stock Market LLC (the “Listing Qualifications Department”) notifying the Company that, for the last 30 consecutive trading days, the closing bid price of the Company’s common stock had closed below the minimum bid price requirement of $1.00 per share for continued listing on the Nasdaq Global Market.

The Company was provided an initial compliance period of 180 calendar days, or until February 5, 2024, to regain compliance with the minimum bid price requirement.

On January 23, 2024, the Company received written notice from the Listing Qualifications Department granting the Company its request to transfer the listing of its common stock from the Nasdaq Global Market tier to the Nasdaq Capital Market tier.

The transfer of the listing of the Company’s common stock from the Nasdaq Global Market to the Nasdaq Capital Market took effect with the open of business on January 25, 2024.

On February 6, 2024, the Listing Qualifications Department granted the Company’s request for a second 180-calendar day period, or until August 5, 2024, to regain compliance with the $1.00 bid price requirement.

On July 17, 2024, the Company filed a Certificate of Amendment to Second Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware, pursuant to which the Company effected a 1-for-10 reverse stock split (the “Reverse Stock Split”) of Company’s issued and outstanding common stock.

The Reverse Stock Split became effective as of 5:00 p.m.

(Eastern Time) on July 17, 2024, and the Company’s common stock began trading on a split-adjusted basis on the Nasdaq Capital Market at the market open on July 18, 2024.

On August 2, 2024, the Company received notification from Nasdaq that for ten consecutive business days, the closing bid price of the Company’s common stock was at least $1.00 per share, and accordingly, the Company regained compliance with the Bid Price Rule, and that the matter was now closed.

NASDAQ Audit Committee Requirement Notice

On October 22, 2024, the Company received a notice (the “Notice”) from Nasdaq indicating that the Company is no longer compliant with the audit committee requirements as set forth in Nasdaq Listing Rule 5605, the Company has until December 9, 2024 to regain compliance as provided in Nasdaq Listing Rule 5605(c)(4) which defines the cure period.

The Company is evaluating the membership of the audit committee and is exploring options to enable it to regain compliance with the Nasdaq Listing Rule 5605 prior to the expiration of the applicable cure period.

The Notice has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Capital Market.

Moreover, no assurance can be given that management’s actions will result in raising additional financing or profitable operations.

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in conformity with U.S.

GAAP and the rules and regulations of the Securities and Exchange Commission (“SEC”).

Basis of Presentation and Principles of Consolidation

These interim financial statements have been prepared in accordance with U.S.

GAAP for interim financial information and include all adjustments consisting of normal recurring adjustments that the management of Senti Biosciences believes are necessary for a fair presentation of the periods presented and are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period.

Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S.

GAAP as found in the Accounting Standards Codification (“ASC”) and as amended by Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

GAAP as found in the Accounting Standards

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

Codification (“ASC”) and as amended by Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”).

The condensed consolidated financial statements include the accounts of Senti Biosciences, Inc., and its wholly-owned subsidiaries.

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The Company has one business activity and operates in one reportable segment within continuing operations.

All long-lived assets of the Company are maintained in the United States.

The Company determined that the assets sold to GeneFab in August 2023 met the criteria for presentation as a discontinued operation.

As a result, the Company has retrospectively restated its condensed consolidated statements of operations for the three and nine months ended September 30, 2023 to reflect the operating results related to the disposed business in discontinued operations.

The Company has chosen not to segregate the cash flows of the

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

disposed business in the condensed consolidated statements of cash flows.

Supplemental disclosures related to discontinued operations for the statements of cash flows have been provided in Note 3.

GeneFab Transaction .

Unless otherwise specified, the disclosures in these condensed consolidated financial statements refer to continuing operations only.

Reverse Stock Split

On July 17, 2024, the Company effected a 1 for 10 reverse stock split of its common stock (the “Reverse Stock Split”).

The par value per share and the number of authorized shares were not adjusted as a result of the Reverse Stock Split.

The shares of common stock underlying outstanding stock options and other equity instruments were proportionately reduced and the respective exercise prices, if applicable, were proportionately increased in accordance with the terms of the agreements governing such securities.

In addition, the shares available for grants under the Company’s incentive plans were adjusted as a result of the Reverse Stock Split.

All references to common stock, options to purchase common stock, outstanding common stock warrants, common stock share data, per share data, and related information contained in the condensed consolidated financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented.

No fractional shares were issued as a result of the reverse stock split, as fractional shares of Common Stock were rounded down to the nearest whole share.

Refer to Note 7.

Stockholders’ Equity, for additional information related to the reverse stock split.

Unaudited Interim Condensed Consolidated Financial Statements

The accompanying interim condensed consolidated financial statements and the related footnote disclosures are unaudited.

These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2024 and its results of operations for the three months ended September 30, 2024 and 2023, and cash flows for the nine months ended September 30, 2024 and 2023.

The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or any other period.

The December 31, 2023 year-end condensed consolidated balance sheet was derived from audited consolidated financial statements but does not include all disclosures from the audited consolidated financial statements.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S.

GAAP have been condensed or omitted pursuant to such rules and regulations.

Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and the related notes included in the Company’s Form 10-K, filed with the SEC on March 21, 2024, which provides a more complete discussion of the Company’s accounting policies and certain other information.

Other than the policy included below, there have been no material changes to the Company’s significant accounting policies as of and for the three and nine months ended September 30, 2024, as compared to the significant accounting policies described in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2023, included in the Form 10-K filed with SEC on March 21, 2024.

California Institute for Regenerative Medicine Gran t

On August 3, 2024, the Company executed an agreement with the California Institute for Regenerative Medicine (“CIRM”) for a total grant award of $ 8.0 million (“CIRM Grant”) in support of the research project related to the ongoing clinical development of SENTI-202.

As the Company has the option to convert the CIRM Grant to a loan and thus may be required to repay some or all of the amounts awarded by CIRM, the Company accounted for this award as a liability.

Given the uncertainty in amounts due upon repayment, the Company has recorded amounts received without any discount or interest recorded, and upon determination of amounts that would become due, the Company will adjust accordingly.

Refer to Note 8.

CIRM Grant , for further details of the CIRM Grant.

Use of Estimates

The preparation of 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 disclosure of contingent assets and

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of stock-based awards, the accrual for research and development expenses, the valuation of GeneFab Option, the valuation of GeneFab Economic Share, the valuation of the GeneFab Note Receivable, the discount rate used to discount future cash flows for the impairment of long-lived assets, and the determination of the incremental borrowing rate.

GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period.

Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, the valuation of stock-based awards, the accrual for research and development expenses, the valuation of GeneFab Option, the valuation of GeneFab Economic Share, redeemable convertible preferred stock, and the determination of the incremental borrowing rate.

The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate.

1 unchanged sentence

Concentration of Credit Risk

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist of cash, cash equivalents and restricted cash are maintained in checking and money market accounts at multiple financial institutions, which at times, may exceed federally insured limits.

As of September 30, 2024 and 2023, the Company has not experienced any credit losses in such accounts or investments.

As of September 30, 2024 , t he Company has prepaid future manufacturing and research services of $ 3.9 million under an agreement with GeneFab for certain development and manufacturing services agreement which are recorded in GeneFab prepaid expenses - related party in the condensed consolidated balance sheets and $ 1.1 million receivable related to general and administrative services provided under the transition services agreement which are recorded in GeneFab receivable - related party in the condensed consolidated balance sheets .

The prepaid expenses and receivable balances from GeneFab potentially subject the Company to a significant concentration of credit risk if the Company is unable to realize these balances.

Financial instruments that potentially subject the Company to a significant concentration of credit risk consist of cash and cash equivalents are maintained in checking and money market accounts at one financial institution, which at times, may exceed federally insured limits.

As of March 31, 2025 and 2024, the Company has not experienced any credit losses in such accounts or investments.

As of March 31, 2025, the Company had prepaid future manufacturing and research services of $ 6.6 million under an agreement with GeneFab, LLC (“GeneFab”) for certain development and manufacturing services agreement which are recorded in GeneFab prepaid expenses - related party on the condensed consolidated balance sheet.

As of March 31, 2025, the Company also had $ 2.1 million receivable from GeneFab related to both services provided under the transition services agreement and sublease rent payments which are recorded in GeneFab receivable - related party in the condensed consolidated balance sheets.

The prepaid expense and receivable balances from GeneFab potentially subject the Company to a significant concentration of credit risk if the Company is unable to realize these balances.

Refer to Note 3 .

GeneFab Transaction for further details of the GeneFab transaction.

Recent Accounting Standards

In November 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures , which requires an enhanced disclosure of significant segment expenses on an annual and interim basis.

This guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

Upon adoption, the guidance should be applied retrospectively to all prior periods presented in the financial statements.

The Company is currently evaluating the potential impact of adopting this new guidance on its condensed consolidated financial statements and related disclosures.

Unaudited Interim Condensed Consolidated Financial

The accompanying interim condensed consolidated financial statements and the related footnotes are unaudited.

These unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and in management’s opinion, include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2025 and its results of operations for the three months ended March 31, 2025 and 2024, and cash flows for the three months ended March 31, 2025 and 2024.

The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or any other period.

The December 31, 2024 year-end condensed consolidated balance sheet was derived from audited annual financial statements but does not include all disclosures from the annual financial statements.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S.

GAAP have been condensed or omitted pursuant to such rules and regulations.

Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024 and the related notes included in the Company’s Form 10-K, filed with the SEC on March 20, 2025, which provides a more complete discussion of the Company’s accounting policies and certain other information.

There have been no material changes to the Company’s significant accounting policies as of and for the three months ended March 31, 2025, as compared to the significant

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

accounting policies described in the Company’s audited annual consolidated financial statements as of and for the year ended December 31, 2024.

Recently Adopted Accounting Standards

In December 2023, the FASB issued ASU No.

2 unchanged sentences

It also includes certain other amendments to improve the effectiveness of income tax disclosures.

This guidance is effective for annual periods beginning after December 15, 2024.

Early adoption is permitted.

Upon adoption, the guidance can be applied prospectively or retrospectively.

The Company is currently evaluating the potential impact of adopting this new guidance on its condensed consolidated financial statements and related disclosures.

The Company believes that the impact of recently issued accounting standards that are not yet effective will not be material to its financial position or results of operations upon adoption.

The Company adopted the guidance on January 1, 2025, and the adoption did not result in additional disclosures in the notes to our condensed consolidated financial statements.

GeneFab Transaction

On August 7, 2023, the Company entered into a framework agreement (the “GeneFab Framework Agreement”) with GeneFab and Valere Bio, Inc., a Delaware corporation and the parent company of GeneFab, which is wholly owned by Celadon Partners, LLC, pursuant to which the Company, subject to the terms and conditions therein, sold, assigned and transferred its rights, title and interest in certain of the assets and contractual rights, including all of the Company’s equipment at the Company’s facilities in Alameda and certain of the Company’s non-oncology license rights, intellectual property related to the schematics for and design of the Alameda facility, and subleased to GeneFab its premises under a lease agreement for the Alameda facility.

The transaction provided the Company with additional capital in the form of a note receivable and rights to future manufacturing and research activities performed by GeneFab at market rates and reduced longer term operating expenses.

On August 7, 2023, the Company entered into a framework agreement (“the “GeneFab Framework Agreement”) with GeneFab and Valere Bio, Inc., a Delaware corporation and the parent company of GeneFab, which is wholly owned by Celadon Partners, LLC, pursuant to which the Company, subject to the terms and conditions therein, sold, assigned and transferred its rights, title and interest in certain of the assets and contractual rights, including all of the Company’s equipment at the Company’s facilities in Alameda and certain of the Company’s non-oncology license rights, intellectual property related to the schematics for and design of the Alameda facility, and subleased to GeneFab its premises under a lease for the Alameda facility.

The Company and GeneFab also entered into a development and manufacturing services agreement (“DMSA”), pursuant to which GeneFab will provide certain services to the Company using the subleased Alameda facility and acquired equipment.

As part of this transaction, the Company entered into a transition services agreement with GeneFab whereby certain services are to be provided by each party to the other party during a transition period beginning on August 7, 2023.

The DMSA was amended and restated on December 10, 2024 as described below.

GeneFab is a related party and the Company reports transactions with GeneFab under ASC 850.

Refer to Note 12 .

Related Parties for GeneFab related party considerations.

GeneFab prepaid expenses - related party

The Company was entitled to $ 18.9 million in future manufacturing and research activities to be rendered by GeneFab under the services agreement, which are recorded in GeneFab prepaid expenses - related party on the condensed consolidated balance sheets.

As of March 31, 2025, the Company had utilized the full amount of this initial prepaid amount for manufacturing and research activities.

On December 10, 2024, in connection with the private placement described in further detail in Note 6 .

Stockholders’ Equity , the Company and GeneFab entered into an amended and restated DMSA, and agreed to make an additional advance payment of $ 10.0 million to GeneFab.

The Company paid $ 6.0 million in December 2024 and the remaining $ 4.0 million in January 2025, and these prepayments were recorded in GeneFab prepaid expenses - related party on the condensed consolidated balance sheets.

As of March 31, 2025, $ 6.5 million of this prepaid amount is remaining for future manufacturing and research activities.

GeneFab Economic Share

The Company and GeneFab entered into a seller economic share agreement (the “GeneFab Economic Share”), pursuant to which the Company will be entitled to receive ten percent of the realized gains of GeneFab’s parent company arising and resulting from any cash or in-kind distributions from GeneFab in connection with a dividend or sale event, subject to the terms and conditions of the GeneFab Economic Share.

The Company elected to account for the GeneFab Economic Share under the fair value option in ASC 825, and the GeneFab Economic Share was recorded as an asset in GeneFab Economic Share - related party on condensed consolidated balance sheet at its fair value of $ 1.8 million on August 7, 2023.

As of March 31, 2025 and December 31, 2024, the Company determined that the fair value of the GeneFab Economic Share was zero .

Changes in fair value of the GeneFab Economic Share

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

Concurrently with the transaction, the Company and GeneFab entered into a development and manufacturing services agreement (the “GeneFab Services Agreement”), pursuant to which GeneFab will provide certain services to the Company using the subleased Alameda facility and acquired equipment.

The total consideration in connection with the transaction was $ 37.8 million, of which $ 18.9 million was due at closing and was netted against prepayment due to GeneFab for future manufacturing and research activities.

The remaining $ 18.9 million consideration (the “GeneFab Note Receivable”) is subject to satisfaction of certain conditions.

The Company elected to account for the GeneFab Note Receivable under the fair value option and recorded the GeneFab Note Receivable at its fair value of $ 16.6 million at the closing date of the transaction.

The GeneFab Note Receivable is remeasured each reporting period with changes from remeasurement included in other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

Notes to Condensed Consolidated Financial Statements— (Continued)

are reported as a component of other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

Refer to Note 10 .

Fair Value Measurements .

The Company determined that the $ 18.9 million for future manufacturing and research activities, inclusive of the volume discount provided, was executed at market terms and does not result in any impact to the total consideration received from GeneFab for the disposal of the business.

As of September 30, 2024, $ 3.9 million of this initial prepaid amount is remaining for future manufacturing and research activities.

As part of the transaction, the Company subleased the facility in Alameda, California to GeneFab which will support the clinical manufacturing of the Company’s chimeric antigen receptor natural killer (CAR-NK) programs, including SENTI-202.

As a result of sublease event, the Company recognized an impairment of long-lived assets of $ 25.7 million for the nine months ended September 30, 2023 due to the impairment of the Company’s leasehold improvements.

Refer to Note 6.

Operating Leases, for additional information on the sublease.

The Company agreed to grant a license to GeneFab under certain of its intellectual property rights to conduct manufacturing services and to research, develop, manufacture and commercialize products outside of oncology, pursuant to a license agreement (the “Non-Oncology License”).

In connection with the transaction, Philip Lee, Ph.D., former Co-Founder and Chief Technology Officer of the Company, assumed the role of Chief Executive Officer of GeneFab.

Additionally, GeneFab extended offers of employment to 45 of the Company's employees formerly employed in its research and development and manufacturing functions.

All 45 employees accepted the offers of employment and are actively engaged in providing manufacturing and research activities to the Company.

GeneFab was granted an option to purchase up to 1,963,344 shares (i.e., up to $ 20.0 million worth) of the Company’s common stock at a per share purchase price of $ 10.18670 (the “GeneFab Option”).

GeneFab Note Receivable

The total consideration in connection with the transaction was $ 37.8 million, of which $ 18.9 million was received by the Company on August 7, 2023 and such payment was netted against prepayment due to GeneFab for future manufacturing and research activities.

The remaining $ 18.9 million was to be paid to the Company in installments in 2024 and 2025 (the “GeneFab Note Receivable”), subject to satisfaction of certain conditions.

The Company elected to account for the GeneFab Note Receivable under the fair value option, and the GeneFab Note Receivable was recorded as an asset in GeneFab receivable - related party on the condensed consolidated balance sheet at its fair value of $ 16.6 million on August 7, 2023.

The GeneFab Note Receivable was remeasured each reporting period with changes from remeasurement included in other income (expense) on the condensed consolidated statements of operations and comprehensive loss.

On December 10, 2024, in connection with the private placement described in further detail in Note 6 .

Stockholders’ Equity , the Company, GeneFab and Valere Bio, Inc.

entered into an amendment to the GeneFab Framework Agreement, pursuant to which the GeneFab Note Receivable was waived by the parties.

GeneFab Option

GeneFab was granted an option to purchase up to 1,963,344 shares (i.e.

up to $ 20.0 million worth) of the Company’s common stock at a per share purchase price of $ 10.18670 (the “GeneFab Option”).

The GeneFab Option becomes exercisable upon the execution of the license agreement, no later than August 7, 2026.

The GeneFab Option may be exercised in installments of common stock equal to no more than 19.9 % of the Company’s outstanding shares of common stock as of the closing date of the transaction.

The GeneFab Option may be exercised in installments of common stock equal to no more than 19.9 % of the Company’s outstanding shares of common stock as of August 7, 2023.

The purchase of the remaining shares under the GeneFab Option requires approval by the Company’s stockholders.

The Company determined that the GeneFab Option was a derivative as the terms of the instrument contain certain provisions that preclude equity classification in accordance with ASC 815.

As such, the GeneFab Option was recorded as a liability at its fair value of $ 9.6 million at the closing date of the transaction and subsequently remeasured with changes in fair value recorded in other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

Refer to Note 4.

Fair Value Measurements .

As additional consideration for the transaction, the Company and GeneFab entered into a seller economic share agreement (the “GeneFab Economic Share”), pursuant to which the Company will be entitled to receive ten percent of the realized gains of GeneFab’s parent company arising and resulting from any cash or in-kind distributions from GeneFab in connection with a dividend or sale event, subject to the terms and conditions of the GeneFab Economic Share.

The Company elected to account for the GeneFab Economic Share under the fair value option and recorded the GeneFab Economic Share at its fair value of $ 1.8 million at the date of the transaction.

The GeneFab Economic Share is remeasured each reporting period with changes from remeasurement included in other income (expense) in

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

the condensed consolidated statements of operations and comprehensive loss.

As such, the GeneFab Option was recorded as a liability in GeneFab Option - related party on condensed consolidated balance sheet at its fair value of $ 9.6 million on August 7, 2023.

As of March 31, 2025 and December 31, 2024, the Company determined that the fair value of the GeneFab Option was zero .

The GeneFab Option was remeasured each reporting period with changes from remeasurement included in other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

Refer to Note 10 .

Fair Value Measurements .

The Company determined that GeneFab is a variable interest entity (“VIE”) since its total equity at risk is not sufficient to finance its activities without additional subordinated financial support.

Consolidation and Related Party

The Company determined that GeneFab is a variable interest entity since its total equity at risk is not sufficient to finance its activities without additional subordinated financial support.

The Company performed a qualitative analysis to determine if it is the primary beneficiary of GeneFab and determined it does not have the power to direct the significant activities of GeneFab.

As a result, the Company determined it is not the primary beneficiary and therefore does not consolidate GeneFab.

GeneFab is a related party and the Company reports transactions with GeneFab under ASC 850.

Refer to Note 1 2 .

Related Parties for GeneFab related party considerations.

Gain on the Disposal of Business

As the assets and contractual rights transferred to GeneFab were determined to constitute a business as defined in ASC 805, Business Combinations , the Company accounted for the disposal by applying the derecognition guidance in ASC 810, Consolidation , which requires that a gain or loss be recognized for the difference between the carrying value of the assets sold and the fair value of the consideration received (or receivable).

As of August 7, 2023, the total fair value of the consideration was determined to be $ 37.3 million, including the GeneFab prepaid expenses of $ 18.9 million, the estimated fair value of the GeneFab Note Receivable of $ 16.6 million and the estimated fair value of the GeneFab Economic Share of $ 1.8 million.

Out of the total consideration, $ 9.6 million was allocated to the GeneFab Option, representing its estimated fair value as of the closing date.

In connection with the sale, the Company recognized a gain on disposal in the amount of $ 21.9 million in net income from discontinued operations during the year ended December 31, 2023, representing the excess of the fair value of the consideration (net of the portion allocated to the GeneFab Option) over the carrying value of the assets sold of $ 5.5 million.

The gain on disposal was primarily related to the transfer of the non-oncology intellectual property to GeneFab which had no carrying value.

Discontinued Operations

In accordance with ASC 205, Presentation of Financial Statements (“ASC 205”), the Company determined that the sale of the non-oncology business, including the equipment and transfer of in-house manufacturing activities in the Alameda facility, to GeneFab represented a strategic shift that will have a major effect on the Company’s operations and financial results, thus meeting the criteria to be reported as discontinued operations.

Discontinued operations include the cost and depreciation of equipment and related deposits or liabilities, manufacturing personnel-related costs including costs arising as a result of the disposal such as equity award modifications and severance, and the gain from the disposal of the business.

As of September 30, 2024 and December 31, 2023, there were no assets related to the discontinued operations, and the liabilities related to the discontinued operations were zero and $ 0.2 million, respectively.

There were no material operating expenses related to the discontinued operations since August 2023, when the transaction with GeneFab closed.

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

The following table summarizes the condensed operating results of the discontinued operations for the three and nine months ended September 30, 2023 (in thousands):

Three Months Ended September 30, Nine months ended September 30,

Operating expenses:

Research and development $ 1,641 $ 9,975

General and administrative ( 1,478 ) ( 496 )

Total operating expenses 163 9,479

Loss from discontinued operations ( 163 ) ( 9,479 )

Other expense ( 6 ) ( 6 )

Gain on disposal of business 21,861 21,861

Net income from discontinued operations $ 21,692 $ 12,376

The following table summarizes the condensed cash flow information of the discontinued operations for the nine months ended September 30, 2023 (in thousands):

Nine months ended September 30,

Operating activities (noncash adjustments to net income):

Depreciation $ 185

Stock-based compensation ( 2,022 )

Investing activities:

Purchases of property and equipment $ ( 4,079 )

Fair Value Measurements

The following tables summarize the estimated value of cash, cash equivalents and restricted cash (in thousands):

September 30, 2024

Adjusted Cost Estimated Fair Value Cash and cash equivalents Restricted cash

Cash $ 1,834 $ 1,834 $ 1,834 $ —

Money market funds 12,206 12,206 8,645 3,561

Subtotal 12,206 12,206 8,645 3,561

Total $ 14,040 $ 14,040 $ 10,479 $ 3,561

December 31, 2023

Adjusted Cost Estimated Fair Value Cash and cash equivalents Restricted cash

Cash $ 4,205 $ 4,205 $ 4,205 $ —

Money market funds 35,243 35,243 31,721 3,522

Subtotal 35,243 35,243 31,721 3,522

Total $ 39,448 $ 39,448 $ 35,926 $ 3,522

No securities have contractual maturities of longer than one year.

There were no transfers between Levels 1, 2, or 3 for any of the periods presented.

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

GeneFab Note Receivable

The following table presents a summary of the changes in the fair value of the GeneFab Note Receivable (in thousands):

Note Receivable

Fair value as of December 31, 2023

Change in fair value included in other income (expense) ( 17,240 )

Fair value as of September 30, 2024

The fair value of the GeneFab Note Receivable is based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.

The fair value of the GeneFab Note Receivable as of December 31, 2023 was determined by discounting future payments under multiple probability-weighted scenarios using the Company’s cost of borrowing, which was estimated at 12.53 % based on published CCC-rated corporate bond yields.

The Company determined that the fair value of the GeneFab Note Receivable was zero as of September 30, 2024, due to the probability that a suitable license agreement, which is a condition of the Company realizing the GeneFab Note Receivable, would not be signed.

GeneFab Option

The following table presents a summary of the changes in the fair value of the GeneFab Option (in thousands):

GeneFab Option

Fair value as of December 31, 2023

Change in fair value included in other income (expense) 6,331

Fair value as of September 30, 2024

The fair value of the GeneFab Option is based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.

In determining the fair value of the GeneFab Option, the Company used a Black-Scholes option pricing model.

Additionally, the Company determined that the fair value of the GeneFab Option was zero as of September 30, 2024, due to the low probability that a suitable license agreement, which is a condition for exercise of the Option, would be signed.

The significant assumptions utilized in the valuation are described below:

Current stock price $ 6.60

Expected volatility 98.1 %

Risk-free interest rate 4.12 %

Expected term (years) 2.5

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

GeneFab Economic Share

The following table presents a summary of the changes in the fair value of the GeneFab Economic Share (in thousands):

GeneFab Economic Share

Fair value as of December 31, 2023

Change in fair value included in other income (expense) $ ( 1,816 )

Fair value as of September 30, 2024

The fair value of the GeneFab Economic Share is based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy.

In determining the fair value of the GeneFab Economic Share, the Company used the option pricing model, which allocates total estimated enterprise value to various classes of equity using the Backsolve method.

The significant assumptions utilized in the valuation as of December 31, 2023 are described below:

GeneFab equity value $ 35,448

Volatility 65.8 %

Risk free rate 3.93 %

Expected term 4.0

As of September 30, 2024, the Company determined that the fair value of the GeneFab Economic Share was zero due to the low probability of the events triggering the payment underlying the GeneFab Economic Share.

Other Financial Statement information

Prepaid Expenses and Other Current Assets

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

September 30, December 31,

Prepaid expenses (including prepaid rent) $ 1,481 $ 2,546

Prepaid expenses and other current assets consisted of the following:

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

March 31, December 31,

(in thousands) 2025 2024

Prepaid expenses 2,551 1,321

Deposits 73 335

1 unchanged sentence

Property and Equipment, Net

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

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

September 30, December 31,

Property and equipment, net consisted of the following:

March 31, December 31,

(in thousands) 2025 2024

Leasehold improvements $ 22,660 $ 22,660

5 unchanged sentences

Property and equipment, net $ 20,533 $ 21,289

Depreciation totaled $ 0.9 million and $ 1.3 million for the three months ended September 30, 2024 and 2023, respectively and $ 2.9 million and $ 2.6 million for the nine months ended September 30, 2024 and 2023, respectively.

Accrued Expenses and Other Current Liabilities

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

September 30, December 31,

Accrued employee-related expenses $ 1,571 $ 3,555

Accrued professional and service fees other 1,369 2,363

Other accrued expenses 38 9

Accrued expenses and other current liabilities consisted of the following:

March 31, December 31,

(in thousands) 2025 2024

Accruals related to:

Professional and other service fees $ 1,517 $ 2,647

Clinical trials 1,013 763

Employee-related expenses 892 2,542

Other current liabilities 421 433

Total accrued expenses and other current liabilities $ 3,843 $ 6,385

Other Non-current Liabilities

Other non-current liabilities consisted of the following:

March 31, December 31,

(in thousands) 2025 2024

Liabilities associated with CIRM Grant $ 6,410 $ 4,900

Other 149 149

Total other non-current liabilities $ 6,559 $ 5,049

On August 3, 2024, the Company executed an agreement with California Institute for Regenerative Medicine (“CIRM”) for a total grant award of $ 8.0 million (“CIRM Grant”) in support of the research project related to the ongoing clinical development of SENTI-202.

The award is payable to the Company upon achievement of milestones that are primarily based on patient enrollment in the Company’s SENTI-202 clinical trial.

Under the terms of the

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

CIRM Grant, the Company is obligated to co-fund up to $ 4.8 million, pay certain royalties and licensing fees or convert the CIRM Grant to a loan.

As presented in the table above, the Company received an aggregate of $ 6.4 million from the CIRM Grant as of March 31, 2025.

Operating Leases

3 unchanged sentences

The Alameda lease has an initial term of eleven years expiring in 2032, with an option to renew the lease for up to two additional terms of five years .

The exercise of these renewal options is not recognized as part of the ROU assets and lease liabilities, as the Company did not conclude, at the commencement date of the leases, that the exercise of renewal options or termination options was reasonably certain.

The Alameda lease provided for a tenant improvement allowance of up to $ 17.5 million for the costs relating to the design, permitting and construction of the improvements, disbursed by the landlord by December 31, 2023.

The Company was deemed to be the accounting owner of the tenant improvements primarily because the Company is the principal in the construction and design of the assets, is responsible for costs overruns and retains substantially all economic benefits from the leasehold improvements over their economic lives .

Accordingly, the tenant improvement allowance was considered an incentive and was deducted from the initial measurement of the ROU asset and lease liability.

The Company estimated the timing of tenant improvement reimbursements at the lease commencement date and upon receipt of the cash incentives, the Company recognized the cash received as an increase in the lease liability.

A summary of total lease costs and other information for the period relating to the Company’s operating leases is as follows (in thousands):

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

The exercise of these renewal options is not recognized as part of the right-of-use assets and lease liabilities, as the Company did not conclude, at the commencement date of the leases, that the exercise of renewal options or termination options was reasonably certain.

Lease costs are summarized as follows:

Three Months Ended March 31,

(in thousands) 2025 2024

Operating lease cost $ 1,288 $ 1,316

Short-term lease cost 9 8 26 64

Variable lease cost (1)

Short-term lease cost 6 8

Total lease cost $ 1,574 $ 1,592

Nine Months Ended September 30,

Other information:

Operating cash flows net inflows and (outflows) from operating lease $ ( 5,412 ) $ ( 2,449 )

Right-of-use assets obtained in exchange for operating lease obligations (including remeasurement of right-of-use assets and lease liabilities due to changes in the timing of receipt of lease incentives) $ — $ 13

(1) Variable lease costs comprise primarily of common area maintenance charges for the operating leases, which is dependent upon usage.

Supplemental cash flow information related to the leases was as follows:

Three Months Ended March 31,

(in thousands) 2025 2024

Operating cash flows net outflows from operating lease $ ( 1,839 ) $ ( 1,784 )

Weighted-average remaining lease terms and discount rates were as follows:

March 31, 2025

Weighted-average remaining lease term (years) 6.5

Weighted-average discount rate 9.2 %

For the three and nine months ended September 30, 2023, the Company received zero and $ 2.0 million, respectively, of the $ 17.5 million tenant improvement allowance.

As of December 31, 2023, the Company received the full $ 17.5 million tenant improvement allowance.

Maturities of the Company’s lease liabilities as of September 30, 2024, were as follows (in thousands):

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

As of March 31, 2025, maturities of lease liabilities were as follows:

(in thousands)

2025, for the remainder of the year $ 5,639

3 unchanged sentences

Total lease liabilities $ 32,445

Letters of Credit

As of September 30, 2024 the Company held a letter of credit with JPMorgan Chase Bank in the amount of approximately $ 2.8 million related to the Alameda facility and a letter of credit with JPMorgan Chase Bank in the amount of approximately $ 0.5 million related to our HQ facility lease which are recorded as restricted cash in the condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023.

Lessor Accounting

GeneFab Sublease

In connection with the GeneFab transaction, on August 7, 2023, the Company entered into a sublease with GeneFab to sublease the facility included in the Alameda lease, expiring in September 2032.

Total sublease income to be earned from this operating lease, in aggregate, will be approximately $ 44.1 million over the term of the sublease agreement.

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

On June 12, 2024, the Company entered into a sublease with GeneFab for a portion of the Company’s corporate headquarter premises in South San Francisco.

Total sublease income to be earned from this operating lease, in aggregate, will be approximately $ 1.3 million over the term of the sublease agreement.

A summary of total sublease income for the period relating to the Company’s operating leases is as follows (in thousands):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Sublease income - base rent $ 1,314 — $ 3,757 $ —

Sublease income - variable and other 343 — 948 —

Total sublease income $ 1,657 $ — $ 4,705 $ —

The Company records sublease income in other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

Refer to Note 14.

Related Parties, for GeneFab related party considerations.

GeneFab Subleases - Related Party ( Note 12 )

On August 7, 2023, the Company entered into a sublease with GeneFab to sublease the facility included in the Alameda lease, expiring in September 2032.

The facility supports the clinical manufacturing of the Company’s chimeric antigen receptor natural killer (CAR-NK) programs, including SENTI-202.

Total undiscounted payments to be received by the Company over the term of the Alameda lease sublease is approximately $ 44.1 million.

On June 12, 2024, the Company entered into a sublease with GeneFab for a portion of the Company’s HQ lease.

Total undiscounted payments to be received by the Company over the term of the HQ lease sublease is approximately $ 1.3 million.

As of March 31, 2025 and December 31, 2024, the Company had $ 1.5 million and $ 1.0 million receivable from GeneFab related to the sublease rent payments, respectively, which was recorded in GeneFab receivable - related party on the condensed consolidated balance sheets.

BKPBIOTECH and JLSA2 Therapeutics Sublease

On September 23, 2024, the Company entered into a sublease agreement with BKPBIOTECH, Inc.

and JLSA2 Therapeutics, Inc., to sublease a portion of the Company’s corporate headquarter premises in South San Francisco.

and JLSA2 Therapeutics, Inc., to sublease a portion of the Company’s HQ lease.

The sublease commenced on October 7, 2024, and will expire on April 30, 2027.

Total sublease income to be earned from this operating lease, in aggregate, will be approximately $ 1.0 million over the term of the sublease agreement.

Total undiscounted payments to be received by the Company over the term of the HQ lease sublease is approximately $ 1.1 million.

The sublease contains customary events of default, representations, warranties and covenants.

Pursuant to ASC Topic 842, Leases , the Company concluded that the sublease is a separate lease and it qualifies as an operating lease.

As a result of sublease, the Company identified an impairment indicator related to the HQ Lease.

The Company compared the estimated undiscounted cash flows to the carrying value of the asset group, which includes right-of-use assets and leasehold improvements allocable to the sublease.

The Company concluded that the carrying value of the asset group was not recoverable as it exceeded the estimated undiscounted cash flows.

The Company calculated the amount of impairment using a discounted cash flow model to calculate the fair value of the asset group which incorporated the net identifiable cash flows for the term of sublease, including an estimate for cash flows in the residual period, and an estimated borrowing rate of a market participant subtenant.

The impairment charge of $ 0.3 million was recorded as impairment of long-lived assets in the statement of operations and comprehensive loss for the three months ended September 30, 2024.

Maturities of the Company’s sublease payments for the subleases of both Alameda facility and corporate headquarter premises as of September 30, 2024, were as follows (in thousands):

As of March 31, 2025, maturities of the Company’s sublease payments were as follows:

(in thousands)

2025, for the remainder of the year $ 4,047

2 unchanged sentences

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

Notes to Condensed Consolidated Financial Statements— (Continued)

A summary of total sublease income was as follows:

Three Months Ended March 31,

(in thousands) 2025 2024

Sublease income - base rent $ 1,417 $ 1,203

Sublease income - variable 474 258

Total sublease income (1)

$ 1,891 $ 1,461

(1) On the condensed consolidated statement of operations, $ 1.7 million was recorded in GeneFab sublease income - related party and $ 0.2 million was recorded as other income for the three months ended March 31, 2025.

Stockholders’ Equity

As of September 30, 2024 and December 31, 2023, the Company’s certificate of incorporation authorized the Company to issue 500,000,000 shares of common stock at a par value of $ 0.0001 per share.

Each share of common stock is entitled to one vote.

The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Company’s board of directors.

As of September 30, 2024 and December 31, 2023, no dividends have been declared.

Holders of common stock are entitled to one vote per share, and to receive dividends and, upon liquidation or dissolution, are entitled to receive all assets available for distribution to stockholders.

The holders have no preemptive or other subscription rights, and there are no redemption or sinking fund provisions with respect to such shares.

Common stock is subordinate to the redeemable convertible preferred stock with respect to dividend rights and rights upon liquidation, winding up, and dissolution of the Company.

Through March 31, 2025, no cash dividends have been declared or paid.

On July 10, 2024, the Board approved a reverse stock split of the common stock at a ratio of 1-for-10, $ 0.0001 par value.

5 unchanged sentences

Trading of the Company’s common stock on the Nasdaq Capital Market commenced on a split-adjusted basis as of market open on July 18, 2024, under the existing trading symbol “SNTI.”

At September 30, 2024 and December 31, 2023, the Company has reserved shares of its Common Stock for future issuance as follows:

September 30, December 31,

2025 ATM Agreement

On March 20, 2025, the Company entered into a Sales Agreement (the “2025 ATM Agreement”) with Leerink Partners LLC (“Leerink Partners”) with respect to an at-the-market offering program under which the Company may offer and sell, from time to time at its sole discretion, up to a maximum aggregate offering price of $ 17.5 million of its common stock through Leerink Partners as its sales agent.

Under the 2025 ATM Agreement, the Company is not obligated to sell any shares, and either party may suspend or terminate the offering of common stock upon notice to the other party and subject to certain conditions.

Leerink Partners will use commercially reasonable efforts, consistent with its normal trading and sales practices, applicable state and federal law, rules and regulations and the rules of The Nasdaq Global Market, to sell shares from time to time based upon the Company’s instructions, including any price, time or size limits specified by the Company.

The Company pays Leerink Partners a commission of equal to 3.0 % of the gross proceeds of any common stock share sold, reimburse certain fees and disbursements and provide Leerink Partners with customary indemnification and contribution rights.

For the three months ended March 31, 2025, no shares had been issued under the 2025 ATM Agreement.

Common Stock Purchase Agreement

On August 31, 2022, the Company and Chardan Capital Markets LLC (“Chardan”) entered into a Common Stock Purchase Agreement and a Registration Rights Agreement, which was amended and restated on July 16, 2024

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

to update the volume weighted average price purchase mechanics of the equity facility to permit Intraday Volume Weighted Average Price (“VWAP”) Purchases (collectively referred to as the “A&R Purchase Agreement”).

Pursuant to the A&R Purchase Agreement, the Company had the right, in its sole discretion, to sell to Chardan up to the lesser of (i) $ 50.0 million of newly issued shares of the Company’s common stock, and (ii) the Exchange Cap (as defined below) (subject to certain conditions and limitations), from time to time during the 36 -month term of the A&R Purchase Agreement.

As consideration for Chardan’s commitment to purchase shares of common stock at the Company’s direction upon the terms and subject to the conditions set forth in the A&R Purchase Agreement, the Company issued 10,000 shares of its common stock to Chardan and paid a $ 0.4 million document preparation fee, upon execution of the A&R Purchase Agreement.

On March 17, 2025, the Company terminated the A&R Purchase Agreement.

Prior to termination, the Company issued 384,313 shares of common stock to Chardan under the A&R Purchase Agreement, with aggregate net proceeds of $ 3.0 million.

For the three months ended March 31, 2025 and 2024, no shares had been issued under the A&R Purchase Agreement .

Contingent Earnout

Certain individuals may receive up to 200,000 additional shares of the Company’s common stock in the aggregate, in two equal tranches of 100,000 shares of common stock per tranche.

The first and second tranches are issuable if the closing VWAP per share of common stock quoted on the Nasdaq is greater or equal to $ 15.00 and $ 20.00 , respectively over any twenty trading days within any thirty-day trading period.

The first tranche term was a two-year period from June 8, 2022 to June 8, 2024 (the “First Tranche Term”).

The $ 15.00 share price milestone for the first tranche was not satisfied during the First Tranche Term and any such rights to receive the first tranche of additional shares of the Company’s common stock have been cancelled and extinguished.

The second tranche term is a three-year period from June 8, 2022 to June 8, 2025 (the “Second Tranche Term”) and together with the First Tranche Term, the “Tranche Terms”).

If there is a change of control within the applicable Tranche Term that results in a per share price equal to or in excess of the $ 15.00 and $ 20.00 share price milestones not previously met, then the Company shall issue the earnout shares to such individuals.

The Company accounts for the Contingent Earnout under the fair value option and classified as a liability on the Company’s condensed consolidated financial statements.

The Contingent Earnout was remeasured each reporting period with changes from remeasurement included in other income (expense) in the condensed consolidated statements of operations and comprehensive loss.

Refer to Note 10 .

Fair Value Measurements .

Private Placement

The Company’s Board of Directors has the authority to issue $ 0.0001 par value preferred stock in one or more series and to establish from time to time the number of shares to be included in each such series, by adopting a resolution and filing a certification of designations.

Voting powers, designations, powers, preferences and relative, participating, optional, special and other rights shall be stated and expressed in such resolutions.

On December 2, 2024, the Company entered into a securities purchase agreement with certain investors in which the Company agreed to sell, in a private placement (the “Offering”), (i) up to 21,157 shares of Series A redeemable convertible preferred stock, par value $ 0.0001 per share, for an aggregate offering price of $ 47.6 million and (ii) accompanying warrants to purchase up to 31,735,500 shares of common stock, par value $ 0.0001 per share.

Each share of Series A redeemable convertible preferred stock will be issued at $ 2,250.00 per share and, subject to Stockholder Approval (defined below), is convertible into 1,000 shares of common stock.

Each Warrant has an exercise price per share of $ 2.30 .

The Warrants are exercisable at any time on or after the Stockholder Approval and on or prior to the five year anniversary of the original issuance date.

A holder of a Warrant may not exercise the Warrant if the holder, together with its affiliates, would beneficially own more than 4.99 % (or, at the election of the holder, 9.99 %) of the number of shares of the common stock outstanding immediately after giving effect to such exercise.

A holder of a Warrant may increase or decrease this percentage not in excess of 45 % by providing at least 61 days’ prior notice to the Company.

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

On December 9, 2024, the Company closed the initial tranche of the Offering, in which the Company issued 16,713 shares of Series A redeemable convertible preferred stock and Warrants to purchase 25,069,500 shares of common stock for $ 35.2 million, net of issuance costs of $ 2.4 million.

Additionally, an investor had the option to purchase up to an additional 4,444 shares of Series A redeemable convertible preferred stock and Warrants to purchase 6,666,000 shares of common stock at a subsequent closing.

On December 31, 2024, the Company closed the second tranche of the Offering, in which the Company issued 4,444 shares of Series A redeemable convertible preferred stock and Warrants to purchase 6,666,000 shares of common stock for $ 9.9 million, net of issuance costs of $ 0.1 million.

On March 6, 2025, at our special meeting of stockholders, our stockholders approved the issuance of common stock in accordance with Nasdaq Listing Rule 5635 upon (i) conversion of Series A redeemable convertible preferred stock and (ii) the exercise of warrants to purchase shares of common stock.

Subsequently, on March 10, 2025, we converted the outstanding shares of Series A redeemable convertible preferred stock into 21,157,000 shares of common stock, at the conversion price of $ 2.25 per share, subject to the terms and limitations contained in the Certificate of Designation.

The Company had no convertible preferred stock authorized or outstanding as of March 31, 2025.

As of December 31, 2024, the convertible preferred stock was summarized as follows:

December 31, 2024

(In thousands, except share amounts) Shares Authorized Shares Issued and Outstanding

Net Carrying Value

Aggregate Liquidation Preference

Series A 21,200 21,157 $ 25,106 $ 147,647

Total 21,200 21,157 $ 25,106 $ 147,647

The Company had reserved shares of its common stock for future issuance as follows:

March 31, December 31,

Common stock options issued and outstanding 4,655,262 1,333,030

Restricted Stock Units (RSUs) issued and outstanding 56,423 22,528

Performance Stock Units (PSUs) issued and outstanding 106,806 —

Restricted stock units outstanding 1,097,489 56,423

Performance stock units outstanding 94,952 106,806

Common stock shares available for future issuance under equity plans 943,026 270,907

1 unchanged sentence

Contingent earnout common stock 100,000 100,000

Common Stock Purchase Agreement 484,944 484,944

GeneFab Option 1,963,344 1,963,344

1,963,344 1,963,344

Warrants to purchase common stock issued in connection with Series A redeemable convertible preferred stock 31,735,500 31,735,500

Unvested early exercised common stock — 422

Series A redeemable convertible preferred stock — 21,157,000

Total 41,202,198 57,287,763

Preferred Stock

In connection with the close of the Merger, the Company’s Amended and Restated Certificate of Incorporation provides the Company’s board of directors with the authority to issue $ 0.0001 par value preferred stock in one or more series and to establish from time to time the number of shares to be included in each such series, by adopting a resolution and filing a certification of designations.

Voting powers, designations, powers, preferences and relative, participating, optional, special and other rights shall be stated and expressed in such resolutions.

There were 10,000,000 shares designated as preferred stock and none were outstanding as of September 30, 2024 and December 31, 2023.

Common Stock Purchase Agreement

On August 31, 2022, the Company entered into a Common Stock Purchase Agreement and a Registration Rights Agreement, as amended and restated on July 16, 2024 (collectively referred to as the “Purchase Agreement”) with Chardan Capital Markets LLC (“Chardan”).

Pursuant to the Purchase Agreement, the Company has the right, in

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

its sole discretion, to sell to Chardan up to the lesser of (i) $ 50.0 million of newly issued shares of the Company’s common stock, and (ii) the Exchange Cap (as defined below) (subject to certain conditions and limitations), from time to time during the 36-month term of the Purchase Agreement.

Under the applicable NASDAQ rules, the Company may not issue to Chardan under the Purchase Agreement more than 872,704 shares of common stock, which number of shares is equal to 19.99 % of the common shares outstanding immediately prior to the execution of the Purchase Agreement unless certain exceptions are met (the “Exchange Cap”).

The purchase price of the shares of common stock will be determined by reference to the Volume Weighted Average Price (“VWAP”) of the common stock during the applicable purchase date, less a fixed 3 % discount to such VWAP.

However, the total shares to be purchased on any day may not exceed 20 % of the trading volume, and the total purchase price on any day may not exceed $ 3.0 million.

As consideration for Chardan’s commitment to purchase shares of common stock at the Company’s direction upon the terms and subject to the conditions set forth in the Purchase Agreement, upon execution of the Purchase Agreement, the Company issued 10,000 shares of its common stock to Chardan and paid a $ 0.4 million document preparation fee.

On July 16, 2024, the Company amended and restated this Purchase Agreement (hereinafter, the “A&R Purchase Agreement”) with Chardan to update the volume weighted average price purchase mechanics of the equity facility to permit Intraday VWAP Purchases (as defined in the A&R Purchase Agreement).

The Company has issued 143,593 shares of common stock to Chardan under the A&R Purchase Agreement, including 10,000 shares issued to Chardan as consideration for its execution and delivery of the A&R Purchase Agreement, with aggregate net proceeds of $ 1.2 million.

There were no shares issued under the Purchase Agreement during the three and nine months ended September 30, 2023.

The shares issued during the three and nine months ended September 30, 2024 were 3,593 .

Contingent Earnout Equity

Following the closing of the Merger, former holders of Legacy Senti common stock and preferred stock may receive up to 200,000 additional shares of the Company’s common stock in the aggregate, in two equal tranches of 100,000 shares of common stock per tranche.

The first and second tranches are issuable if the closing volume weighted average price (“VWAP”) per share of common stock quoted on the Nasdaq (or the exchange on which the shares of common stock are then listed) is greater or equal to $ 150.00 and $ 200.00 , respectively over any twenty trading days within any thirty-day trading period.

The first tranche term is two years from the closing of the Merger (the “First Tranche Term”) and the second tranche term is three years from the closing of the Merger (the “Second Tranche Term”) and together with the First Tranche Term, the “Tranche Terms”).

If there is a change of control within the applicable Tranche Term-following the closing of the Merger that results in a per share price equal to or in excess of the $ 150.00 and $ 200.00 share price milestones not previously met, then Company shall issue the earnout shares to the holders of Legacy Senti common stock and preferred stock.

The $ 150.00 share price milestone for the first tranche was not satisfied during the First Tranche Term and any such rights to receive the first tranche of additional shares of the Company’s common stock have been cancelled and extinguished.

Contingent earnout is accounted at fair value and classified as a liability in the Company’s condensed consolidated financial statements.

The Company recognized zero and $ 0.2 million gain for the change in fair value of contingent earnout liability for the three and nine months ended September 30, 2023, respectively.

Contingent earnout liability was less than $ 0.1 million at September 30, 2024 and December 31, 2023.

On August 3, 2024, the Company executed an agreement with CIRM for a total grant award of $ 8.0 million in support of the research project related to the ongoing clinical development of SENTI-202.

The award is payable to the Company upon achievement of milestones that are primarily based on patient enrollment in the Company’s SENTI-202 clinical trial.

Under the terms of the CIRM Grant, the Company has certain obligations of co-funding up to $ 4.8 million and is required to provide CIRM timely progress and financial update reports.

Under the terms of the CIRM Grant, the Company is obligated to pay royalties and licensing fees based on 0.1 % of net commercial revenue of CIRM-funded product candidates or CIRM-funded technology for every $ 1.0 million of CIRM funding received.

This payment continues for either 10 years from the first commercial sale of the drug product or until the total royalties paid equal nine times the original CIRM Grant.

As an alternative to revenue sharing, the Company has the option to convert the CIRM Grant to a loan.

In the event the Company exercises its right to convert the CIRM Grant to a loan, the Company would be obligated to repay the loan within 10 business

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

days of making such election.

Repayment amounts vary dependent upon the phase of clinical development of SENTI-202 at the time of the Company’s election, ranging from 80 % to 100 % plus interest at 10 % plus the 90-day Secured Overnight Financing Rate (“SOFR”).

As of September 30, 2024, the Company has received an aggregate of $ 2.4 million which was recorded as other liabilities, net of current portion in the condensed consolidated balance sheets.

The Company’s revenue earned in the three and nine months ended September 30, 2023 consists of amounts received related to research services provided.

The Company earned no revenue in the three and nine months ended September 30, 2024.

Contract Revenue

In April 2021, the Company entered into a research collaboration and license agreement with Spark Therapeutics, Inc.

Under the agreement, the Company will be responsible for a research program, which includes designing, building and testing five cell type specific-synthetic promoters for use in developing certain gene therapies using the Company’s proprietary technology.

The Company received an upfront payment from Spark of $ 3.0 million and Spark is obligated to reimburse the Company for costs and expenses incurred for the research program.

The Company expected to complete the research program over a two-year period.

The Company assessed this agreement in accordance with ASC 606, Revenue Recognition (“ASC 606”) and concluded that the contract counterparty, Spark, is a customer.

The Company identified only one combined performance obligation in the agreement, which is to perform research services, the related joint research plan and committees for the five specified promoters.

The Company determined that the research activities for each of the five promoters are not distinct given there is one single research plan that is performed by the same research team and research results for one promoter may provide insights for other promoters.

Pursuant to the agreement, once the research program is completed and the Company delivers a data package to Spark, Spark has 24 months (the “Evaluation Period”) to determine whether Spark will exercise its options to obtain field-limited, royalty-bearing licenses to develop, manufacture and commercialize promoters corresponding to each of the five specified promoters being researched.

For each licensed promoter option that is exercised, the Company is eligible to receive a license fee, potential research, development and commercial milestone payments and royalties on product sales.

Spark may generally terminate the agreement upon 90 days prior written notice or 180 days prior written notice if the licensed promoter is in clinical trials or is being commercialized at the time of termination.

The Company evaluated Spark’s optional rights to license, develop, manufacture and commercialize each of the promoter profiles to determine whether they provide Spark with any material rights to purchase the promoter licenses at an incremental discount.

The Company’s proprietary technology used to develop the promoters is in the early stages of development, so technological feasibility and probability of developing a product is highly uncertain.

As a result, determining the SSP for the optional rights is subject to significant judgment.

Given the subjectivity associated with determining the SSP for the right to a future license related to unproven technology at contract inception, the Company also evaluated whether the contract consideration associated with the research services represents the SSP for those services.

The Company determined the transaction price, inclusive of the upfront payment and reimbursement of costs and expenses incurred for the research program, is commensurate with SSP for the research being conducted given the specialized nature and reliance on proprietary technology.

Based on the Company’s assessment of the optional consideration and the qualitative factors of feasibility and probability of development combined with the quantitative assessment that research services are priced at their SSP, the Company concluded that the license option does not provide Spark with an incremental discount and therefore does not constitute a material right.

The transaction price associated with the research services in this agreement consists of the fixed upfront amount of $ 3.0 million and variable consideration.

For Spark collaboration agreement, the Company recognized the transaction price as research and development services were provided, using a cost-based input method to measure the progress toward completion of its performance obligation and to calculate the corresponding amount of revenue to recognize each period.

The Company believes that the cost-based input method is the best measure of progress because other measurements would not reflect how the Company transfers the control related to the performance obligation to our customers.

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

In December 2022 and May 2023, the Company amended the research collaboration and license agreement with Spark to allow for an increase in budget and an extension of the research program.

As there were no changes to performance obligations and the services to be provided are not distinct from those already transferred, the transactions were accounted for as a contract modifications.

In July 2023, the Company completed the research program under the research collaboration and license agreement with Spark and the remaining upfront payment was recognized.

In November 2023, the Company entered into a Collaboration and Option Agreement with Celest Therapeutics (Shanghai) Co.

Subject to the terms and conditions of the Agreement, the Company and Celest will enter into a collaboration under which Celest will lead a pilot trial of a candidate product for the SENTI-301A program in mainland China, with certain technical support from the Company.

In addition, the Company agreed to grant an exclusive option to enter a license agreement with Celest to research, develop, manufacture and commercialize SENTI-301A in mainland China, Hong Kong, Macau, and Taiwan.

Outside of these jurisdictions, the Company would retain its rights in the SENTI-301A program.

Pursuant to the Agreement, with the exercise of the option and entering into a license agreement, the Company may become eligible to receive certain option exercise fee and milestone payments, in an aggregate amount of $ 156.0 million, as well as certain tiered royalty payments.

For the three and nine months ended September 30, 2023, the Company recorded revenue, which was previously included in deferred revenue at the beginning of each period, of $ 0.2 million and $ 0.8 million, respectively.

In 2021, the Small Business Innovation Research (“SBIR”) awarded the Company a grant in the amount of $ 2.0 million over two years subject to meeting certain terms and conditions.

The purpose of the grant is to support the further development of SENTI-202 for acute myeloid leukemia towards clinical development.

Grant income was recognized when qualified research and development costs were incurred and the Company obtained reasonable assurance that the terms and conditions of the grant were met.

In August 2023, the Company completed the research and development project which was the subject of the SBIR grant.

For the three and nine months ended September 30, 2023, the Company recorded $ 0.1 million and $ 0.6 million grant income, respectively.

Entity-wide information

During the three months ended September 30, 2023, Customers A and B accounted for 75 % and 25 % of revenue, respectively.

During the nine months ended September 30, 2023, Customers A and B accounted for 77 % and 23 % of revenue, respectively.

All revenues were generated in the United States.

Stock-based Compensation

Equity Incentive Plans

On June 8, 2022, upon closing of the Merger, the Company adopted a 2022 Stock Incentive Plan (the “2022 Plan”).

As of September 30, 2024, the total number of shares of common stock available for issuance under the 2022 Plan is 510,383 .

On August 5, 2022, the Company adopted a 2022 Inducement Equity Plan (the “2022 Inducement Plan”).

As of September 30, 2024, the total number of shares of common stock available for issuance under the 2022 Inducement Plan is 172,312 .

2022 Equity Incentive Plan ( the “2022 EIP”)

On January 1, 2025, the number of shares of common stock reserved for issuance under the 2022 EIP increased by 241,472 shares.

On March 6, 2025, the number of shares of common stock available for issuance under the 2022

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

On June 8, 2022, upon the Merger, the Company adopted a 2022 Employee Stock Purchase Plan (the “ESPP”).

As of September 30, 2024, the total number of shares of common stock available for issuance under the ESPP is 79,387 .

Stock-Based Compensation Expense

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

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Notes to Condensed Consolidated Financial Statements— (Continued)

Plan increased by an additional 4,300,000 shares from the stockholder approval.

As of March 31, 2025, the total number of shares of common stock available for issuance under the 2022 Plan is 521,628 .

2022 Inducement Plan (the “2022 IN”)

On March 7, 2025, the Company’s Board of Directors approved the total number of shares of common stock available for issuance under the 2022 IN increased to 2,500,000 shares.

As of March 31, 2025, the total number of shares of common stock available for issuance under the 2022 Inducement Plan is 2,221,398 .

2022 Employee Stock Purchase Plan (the “2022 ESPP”)

On January 1, 2025, the number of shares of common stock reserved for issuance under the 2022 ESPP increased by 48,294 shares.

As of March 31, 2025, the total number of shares of common stock available for issuance under the ESPP is 127,681 .

Stock-based Compensation

Total stock-based compensation was as follows:

Three Months Ended March 31,

(in thousands) 2025 2024

General and administrative $ 1,019 $ 1,338

Research and development 185 ( 80 )

Total stock-based compensation expense from continuing operations 668 2,487 1,150 9,628

Stock-based compensation expense from discontinued operations — ( 2,078 ) — ( 2,022 )

Total stock-based compensation expense $ 668 $ 409 $ 1,150 $ 7,606

As of September 30, 2024, there was $ 3.5 million of total unrecognized compensation expense related to unvested stock options under all equity plans and restricted stock units, which the Company expects to recognize over the weighted average remaining period of approximately 1.6 years.

The Company’s income tax provision for the three and nine months ended September 30, 2024 and 2023 is zero , respectively.

While the Company is subject to federal and state income taxes in various jurisdictions, due to cumulative losses their current income tax liability is zero and deferred tax assets generated from the Company’s net operating losses have been subject to a full valuation allowance, as the Company believes it is not more likely than not that the benefit will be realized due to the Company’s losses generated to date.

Total stock-based compensation

$ 1,204 $ 1,258

Net Loss Per Share

A reconciliation of net loss available to common stockholders and the number of shares in the calculation of basic and diluted loss per share is as follows:

Three Months Ended September 30, Nine Months Ended September 30,

A reconciliation of net loss available to common stockholders and the number of shares in the calculation of basic and diluted net loss per share is as follows:

Three Months Ended March 31,

(in thousands, except share and per share amounts) 2025 2024

Basic and diluted net loss per share:

Net loss, basic and diluted $ ( 14,112 ) $ ( 12,111 )

Weighted-average shares outstanding, basic and diluted

10,012,908 4,570,744

Net loss from continuing operations $ ( 28,866 ) $ ( 36,615 ) $ ( 52,180 ) $ ( 64,718 )

Net income from discontinued operations — 21,692 — 12,376

Net loss $ ( 28,866 ) $ ( 14,923 ) $ ( 52,180 ) $ ( 52,342 )

Weighted-average shares used in computing net loss per share, basic and diluted 4,577,122 4,447,223 4,573,307 4,427,458

Net loss per share from continuing operations, basic and diluted $ ( 6.31 ) $ ( 8.24 ) $ ( 11.41 ) $ ( 14.62 )

Net income per share from discontinued operations, basic and diluted — 4.88 — 2.80

Net loss per share attributable to common stockholders, basic and diluted $ ( 1.41 ) $ ( 2.65 )

As the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods presented.

The following potential common stock securities were excluded from the

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

The following potential common stock securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (on an as-converted basis):

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Stock options to purchase common stock 921,334 1,191,693 921,334 1,191,693

Unvested early exercised options 1,688 6,752 1,688 6,752

Notes to Condensed Consolidated Financial Statements— (Continued)

computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive (on an as-converted basis):

Three Months Ended March 31,

Common stock options issued and outstanding 4,655,262 1,184,525

Restricted stock units outstanding 1,097,489 97,904

1 unchanged sentence

Contingent earnout common stock 100,000 200,000

GeneFab Option (Note 3) 1,963,344 1,963,344 1,963,344 1,963,344

GeneFab Option 1,963,344 1,963,344

Warrants to purchase common stock issued in connection with Series A redeemable convertible preferred stock 31,735,500 —

Unvested early exercised options — 4,220

Total 39,646,547 3,449,993

Cash, Cash Equivalents and Restricted Cash

The following table is a reconciliation of the cash, cash equivalents and restricted cash:

March 31, December 31,

(in thousands) 2025 2024

Cash and cash equivalents $ 33,802 $ 48,277

Restricted cash (1)

Total $ 37,351 $ 51,815

(1) As of March 31, 2025 and December 31, 2024, restricted cash balance primarily consisted of a letter of credit for the Alameda facility lease of $ 2.9 million, and a letter of credit for the HQ lease of $ 0.5 million.

The following table is a summary of our cash equivalents and restricted cash:

March 31, 2025

(in thousands) Amortized Cost Fair Value

Money market funds 36,736 36,736

Total available-for-sale securities 36,736 36,736

Classified as:

Cash equivalents $ 33,187

Restricted cash 3,549

Total available-for-sale securities $ 36,736

December 31, 2024

(in thousands) Amortized Cost Fair Value

Money market funds $ 39,407 $ 39,407

Total available-for-sale securities $ 39,407 $ 39,407

Classified as:

Cash equivalents $ 35,869

Restricted cash 3,538

Total available-for-sale securities $ 39,407

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

As of March 31, 2025 and December 31, 2024, all of the Company’s cash equivalents and restricted cash were available-for-sale and no allowance for credit loss was recorded.

Fair Value Measurements

The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy.

There were no transfers between Levels 1, 2, or 3 for any of the periods presented.

March 31, 2025

(in thousands) Fair Value Level 1

Money market funds $ 36,736 $ 36,736

Total assets measured at fair value $ 36,736 $ 36,736

December 31, 2024

(in thousands) Fair Value Level 1

Money market funds $ 39,407 $ 39,407

Total assets measured at fair value $ 39,407 $ 39,407

Assets Classified as Level 3

GeneFab Economic Share

The fair value of the GeneFab Economic Share is based on significant unobservable inputs.

In determining the fair value of the GeneFab Economic Share, the Company used the option pricing method, which allocates total estimated enterprise value to various classes of equity using the Backsolve method.

As of March 31, 2025 and December 31, 2024, the Company determined that the fair value of the GeneFab Economic Share was zero due to the low probability of the events triggering the payment underlying the GeneFab Economic Share.

For the three months ended March 31, 2025, there was no change in fair value for the GeneFab Economic Share.

Liabilities Classified as Level 3

GeneFab Option

The fair value of the GeneFab Option is based on significant unobservable inputs.

In determining the fair value of the GeneFab Option, the Company used a Black-Scholes option pricing model.

As of March 31, 2025 and December 31, 2024, the Company determined that the fair value of the GeneFab Option was zero due to the probability that a suitable license agreement, which is a condition of GeneFab obtaining the Option, would not be signed.

For the three months ended March 31, 2025, there was no change in fair value for the GeneFab Option.

Contingent Earnout Liability

The fair value of the Contingent Earnout Liability is based on significant unobservable inputs.

In determining the fair value of the Contingent Earnout Liability, the Company uses a Monte Carlo simulation value model using a distribution of potential outcomes.

The assumptions utilized in the calculation were based on the achievement of certain stock price milestones, including the current Company common stock price, expected volatility, risk-free rate, expected term and expected dividend yield.

As of March 31, 2025 and December 31, 2024, the Company determined that the fair value of the Contingent Earnout Liability was zero due to the low probability of the remaining tranche terms being met.

For the three months ended March 31, 2025, there was no change in fair value for the Contingent Earnout Liability.

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

The Company’s income tax provision was zero for each of the three months ended March 31, 2025 and 2024.

Related Parties

New Enterprise Associates, Inc.

(“NEA”) held 14.5 % and 9.2 % shares of common stock as of March 31, 2025 and December 31, 2024, respectively.

NEA held one of the seven seats on the Company’s Board of Directors as of March 31, 2025 and December 31, 2024.

As part of the private placement in December 2024, NEA is also entitled to designate one additional director to the Company’s Board of Directors.

Celadon Partners, LLC

Celadon Partners LLC (“Celadon”) held 37.6 % and no shares of the Company’s common stock as of March 31, 2025 and December 31, 2024, respectively, and is considered a related party to the Company.

Celadon is the parent company of Valere Bio, of which GeneFab is a wholly-owned subsidiary.

As part of the private placement in December 2024 ( Note 6 ), Donald Tang, a founder and manager of Celadon, was appointed to the Company’s Board of Directors.

Celadon was also assigned the GeneFab Option in 2024.

Additionally, Celadon is entitled to designate two additional directors to the Company’s Board of Directors, and Feng Hsiung was appointed to the Board of Directors as one of these two additional directors in March 2025.

As of March 31, 2025, Celadon held two of the seven seats on the Company’s Board of Directors.

Bayer Healthcare LLC

Bayer, Healthcare, LLC (“Bayer”) held 19.9 % and 12.2 % shares of the Company’s common stock as of March 31, 2025 and December 31, 2024, respectively, and is considered a related party to the Company.

Bayer is the parent company of BlueRock Therapeutics LP (“BlueRock”).

The Company and BlueRock entered a collaboration and option agreement (“BlueRock Agreement”) in May 2021, pursuant to which the Company and BlueRock, on a program-by-collaboration program basis, collaborates in many aspects for certain therapy products.

The Company was responsible for up to $ 10 million in costs and expenses incurred in connection with the research plan and related activities to be conducted over a three-year research term.

The Company completed the initial research plan and related activities in May 2024.

If the Company and BlueRock agree to add new research activities to the research plan, then BlueRock will be obligated to reimburse the Company for the costs and expenses incurred.

As of March 31, 2025, Bayer has not exercised its option for a license.

As a result of the transaction with GeneFab ( Note 3 ), GeneFab supports the Company’s clinical manufacturing of our CAR-NK programs, including SENTI-202.

GeneFab’s Chief Executive Officer, Philip Lee, Ph.D., was the former Co-Founder and Chief Technology Officer of the Company.

The Company determined GeneFab is a related party and the Company reports transactions with GeneFab under ASC 850.

The Company recorded the GeneFab Economic Share as an asset, and the GeneFab Option as a liability on the condensed consolidated balance sheets.

The Company was entitled for future services from GeneFab and certain

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements— (Continued)

advance payment to GeneFab, and such payment was recorded in are recorded in GeneFab prepaid expenses - related party on the condensed consolidated balance sheets.

Refer to No te 3 .

GeneFab Transaction .

The Company and GeneFab entered into a sublease agreements that GeneFab subleased the facility included in the Alameda lease and a portion of the Company’s HQ lease.

Refer to Note 5 .

Operating leases .

The Company incurred certain costs on behalf of GeneFab under a transition services agreement, and such costs were due from GeneFab.

As of March 31, 2025 and December 31, 2024, the Company recorded $ 0.6 million and $ 0.7 million, respectively, in GeneFab receivable - related party on the condensed consolidated balance sheet.

The Company incurred $ 4.1 million and $ 3.6 million of research and development expenses under the services agreement for the three months ended March 31, 2025 and 2024, respectively.

Refer to Note 3 .

GeneFab Transaction .

Commitments and Contingencies

Research and Development Agreements

The Company enters into various agreements in the ordinary course of business, such as those with suppliers, clinical research organizations and contract manufacturing organizations.

These agreements provide for termination at the request of either party, generally with less than one-year notice and are, therefore, cancellable contracts and, if cancelled, are not anticipated to have a material effect on the Company’s condensed consolidated financial condition, results of operations, or cash flows.

The Company’s corporate headquarters and an additional office are located in South San Francisco, California.

The lease has an initial term of eight years expiring in 2027, with an option to renew for an additional eight years unless canceled by either party thereafter.

On June 3, 2021, the Company entered into a lease agreement for a new cGMP facility in Alameda, California to support planned initial clinical trials for its product candidates.

The lease will expire in 2032.

In the ordinary course of business, the Company enters into contractual agreements with third parties that include non-cancelable payment obligations, for which the Company is liable in future periods.

Certain individuals may receive up to 100,000 additional shares of the Company’s common stock in one remaining tranche on or prior to June 8, 2025.

Refer to Note 6 .

Operating Leases , for further details on the leases.

Stockholders’ Equity , for further details of the contingent earnout liability.

Legal Proceedings

The Company is subject to claims and assessments from time to time in the ordinary course of business but does not believe that any such matters, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

The Company was not subject to any material legal proceedings during the nine months ended September 30, 2024 and 2023.

Guarantees and Indemnifications

In the ordinary course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification.

Indemnification

In the ordinary course of business, the Company enters into agreements that may include indemnification provisions.

Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party.

2 unchanged sentences

The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable.

The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions and has never accrued any liabilities related to such obligations in its condensed consolidated financial statements.

The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

permitted by Delaware corporate law.

The Company currently has directors’ and officers’ insurance.

As of September 30, 2024, and December 31, 2023, the Company did not have any material indemnification claims that were probable or reasonably possible, and consequently, has not recorded any related liabilities.

Related Parties

Bayer Healthcare LLC

On May 21, 2021, the Company entered into a collaboration and option agreement (“BlueRock Agreement”) with BlueRock, a wholly-owned subsidiary of Bayer, pursuant to which the Company granted to BlueRock an option (“BlueRock Option”), on a collaboration program-by-collaboration program basis, to obtain an exclusive or non-exclusive license to develop, manufacture and commercialize cell therapy products that contain cells of specified types and which incorporate an option gene circuit from such collaboration program or a closely related derivative gene circuit.

The Company was responsible for up to $ 10 million in costs and expenses incurred in connection with the research plan and related activities to be conducted over a three-year research term as specified in the collaboration and option agreement.

The Company completed the initial research plan and related activities in May 2024.

If the Company and BlueRock agree to add new research activities to the research plan, then BlueRock will be obligated to reimburse the Company for the costs and expenses incurred.

The Company concluded that the BlueRock Agreement is not within the scope of ASC 808, Collaborative Arrangements , because the Company did not receive any consideration and therefore, is not exposed to both significant risks and rewards for the arrangement.

The Company also determined that the agreement is also not currently within the scope of ASC 606 because the BlueRock Agreement does not currently meet the criteria of a contract with a customer, and will not be within the scope of ASC 606 until any consideration is paid.

Potential future milestone payments and royalties are subject to BlueRock’s exercise of the BlueRock Option and execution of a commercial license agreement by both parties.

Under the BlueRock Agreement, the specific financial terms for milestone payments and royalties will be negotiated and agreed to only after the option is exercised.

As of September 30, 2024, Bayer has not exercised its option for a license.

Bayer held 13 % of the outstanding shares of the Company’s common stock as of September 30, 2024 and December 31, 2023.

Accordingly, Bayer is considered a related party.

In January 2023, the Company acquired lab automation equipment purchased from Seer, Inc.

(“Seer”) (NASDAQ:

Omid Farokhzad, a member of the Company’s board of directors is the Chief Executive Officer of Seer.

The consideration of $ 0.2 million, plus interest, will be paid over a two-year period, and title will transfer to the Company upon final payment.

The transaction was classified as a finance lease in accordance with ASC 842.

GeneFab, LLC.

As a result of the transaction with GeneFab (refer to Note 3.

GeneFab Transaction ), whereby Philip Lee, Ph.D., the former Co-Founder and Chief Technology Officer of the Company, assumed the role of Chief Executive Officer of GeneFab, GeneFab is a related party.

In connection with the disposal of the business, the Company received the GeneFab Note Receivable and the GeneFab Economic Share and provided GeneFab with the GeneFab Option.

Refer to Note 4.

Fair Value Measurements.

On June 12, 2024, the Company entered into a sublease agreement with GeneFab for a portion of the Company’s corporate headquarters in South San Francisco.

The Company has also subleased its manufacturing facility in Alameda to GeneFab and recorded total sublease income of $ 4.7 million including variable costs charged for the nine months ended September 30, 2024.

In connection with the services agreement entered into with GeneFab on August 7, 2023, the Company was entitled to $ 18.9 million for future services under the agreement, of which $ 3.9 million remained in GeneFab prepaid expenses - related party as of September 30, 2024.

Additionally, amounts due from GeneFab related to costs incurred by Senti on its behalf were $ 0.9 million as of September 30, 2024 and were recorded in GeneFab receivable - related party on the condensed consolidated balance sheets.

The Company incurred $ 3.8 million and $ 11.1 million

Segment Reporting

The Company views operations and manages the business as one operating and reportable segment, which is the research and development of the Company’s gene circuit platform.

The Company’s Chief Operating Decision Maker (the “CODM”), its Chief Executive Officer, manages and allocates resources on a consolidated basis.

As of March 31, 2025 and December 31, 2024, the Company’s cash and cash equivalents were $ 33.8 million and $ 48.3 million, respectively.

SENTI BIOSCIENCES, INC.

Notes to Condensed Consolidated Financial Statements

of research and development expenses under the services agreement during the three and nine months ended September 30, 2024.

Subsequent Events

On October 21, 2024, the Company notified the Nasdaq Stock Market (“Nasdaq”) that the Company is not in compliance with the audit committee requirement under Nasdaq Listing Rule 5605(c)(2)(A) due to the Company having only two members on its audit committee solely due to a vacancy resulting from Susan Berland’s resignation from the Board effective June 11, 2024.

The Company is evaluating the membership of the audit committee and is working to regain compliance with the Nasdaq Listing Rule 5605 prior to the expiration of the applicable cure period.

The Notice has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Capital Market.

On November 1, 2024, the Company received a $ 2.5 million payment from CIRM in relation to a milestone achieved in August 2024.

Refer to Note 8.

CIRM Grant, for additional details regarding the CIRM grant and related milestone payments.

Notes to Condensed Consolidated Financial Statements— (Continued)

A summary of the segment loss, including significant expenses, was as noted in the table below.

Three Months Ended March 31,

(in thousands) 2025 2024

Operating expenses:

Research and development:

External services and supplies $ 6,197 $ 4,776

Personnel-related expenses, including stock-based compensation 1,744 2,500

Facilities and other 1,116 1,243

General and administrative:

External services and supplies 2,194 1,663

Personnel-related expenses, including stock-based compensation 2,585 3,498

Facilities and other 1,636 1,637

Depreciation and amortization 925 984

Total operating expenses 16,397 16,301

Loss from operations ( 16,397 ) ( 16,301 )

Interest income 394 331

Sublease income 1,891 1,461

Other income, net — 2,398

Net loss $ ( 14,112 ) $ ( 12,111 )

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements