What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-04 compared with 2026-05-11 · 159 added, 98 removed, 471 unchanged (35% of the section changed)

2 unchanged sentences

(in thousands, except share and per share amounts)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Current assets:

24 unchanged sentences

Preferred stock, $ 0.001 par value per share;

10,000,000 shares authorized, no shares issued or outstanding as of March 31, 2026 and December 31, 2025

10,000,000 shares authorized, no shares issued or outstanding as of June 30, 2026 and December 31, 2025

Common stock, $ 0.001 par value per share;

200,000,000 shares authorized as of March 31, 2026 and December 31, 2025;

24,088,057 and 22,911,575 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

200,000,000 shares authorized as of June 30, 2026 and December 31, 2025;

24,193,101 and 22,911,575 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital

6 unchanged sentences

(in thousands, except share and per share amounts)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Revenue $ 19,941 $ 17,202 $ 37,247 $ 32,700

7 unchanged sentences

Interest expense ( 1,201 ) ( 1,124 ) ( 2,468 ) ( 1,669 )

Loss on extinguishment of debt — ( 295 ) — ( 295 )

Change in fair value of warrant liability ( 426 ) ( 438 ) 456 ( 438 )

14 unchanged sentences

Balances as of December 31, 2025 22,911,575 $ 23 $ 331,708 $ ( 314,282 ) $ 17,449

22,911,575 $ 23 $ 331,708 $ ( 314,282 ) $ 17,449

Issuance of stock from cashless warrant exercises 804,788 1 ( 1 ) — —

5 unchanged sentences

24,088,057 24 332,657 ( 318,249 ) 14,432

Issuance of stock from vested restricted stock units 105,044 — — — —

Stock-based compensation — — 980 — 980

Net loss — — — ( 3,196 ) ( 3,196 )

Balances as of June 30, 2026

24,193,101 $ 24 $ 333,637 $ ( 321,445 ) $ 12,216

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

13 unchanged sentences

Balances as of March 31, 2025 17,950,033 18 304,468 ( 298,083 ) 6,403

Issuance of stock from public offering, net of issuance costs of $ 1,598

3,852,500 4 18,623 — 18,627

Issuance of stock from warrant exercises 107,969 — — — —

Issuance of stock on vesting of restricted stock units 88,129 — — — —

Exercise of stock options 108 — — — —

Stock-based compensation — — 443 — 443

Net loss — — — ( 4,439 ) ( 4,439 )

Balances as of June 30, 2025 21,998,739 $ 22 $ 323,534 $ ( 302,522 ) $ 21,034

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

1 unchanged sentence

(in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

5 unchanged sentences

Change in fair value of warrant liability ( 456 ) 438

Loss on extinguishment of debt — 295

Bad debt expense — 455

Non-cash operating lease expense 513 473

15 unchanged sentences

Cash flows from financing activities:

Proceeds from common stock issued, net of issuance costs — 18,777

Proceeds from common stock issued under Employee Stock Purchase Plan 295 199

1 unchanged sentence

Principal payments on notes payable obligations ( 340 ) ( 265 )

Proceeds from issuance of debt and warrants, net of discounts — 23,672

Payment to extinguish debt — ( 19,705 )

Payment of debt issuance costs — ( 670 )

7 unchanged sentences

Unpaid equipment settled under financing arrangement $ — $ 682

Right-of-use assets obtained in exchange for lease liabilities $ 1,031 $ —

Recognition of warrant liability $ — $ 3,525

Unpaid financing costs included in accounts payable and accrued liabilities $ — $ 350

Costs incurred, but not paid, in connection with capital expenditures $ 110 $ —

5 unchanged sentences

The Company anticipates that it will continue to incur net losses in future periods.

As of March 31, 2026, the Company had cash and cash equivalents of $ 21.5 million and had an accumulated deficit of $ 318.2 million.

As of June 30, 2026, the Company had cash and cash equivalents of $ 24.6 million and had an accumulated deficit of $ 321.4 million.

Since inception, the Company has financed its operations primarily through a combination of equity financings, debt financing arrangements, and revenue from sales of the Company's products.

Based on the Company's current business plan, management believes that its existing capital resources will be sufficient to fund the Company's obligations for at least twelve months following the issuance of these condensed financial statements.

The Company held claims in the first three months ended March 31, 2026, which resulted in increases in its accounts receivable and an accelerated decrease in its cash and cash equivalents in the three months ended March 31, 2026, and a reversal of that trend is expected in the remaining three quarters of the fiscal year ending December 31, 2026.

Consistent with historical practice, the Company held claims in the three months ended March 31, 2026, which resulted in increases in its accounts receivable and an accelerated decrease in its cash and cash equivalents in the three months ended March 31, 2026, and a reversal of that trend occurred during the three months ended June 30, 2026 and is expected to continue in the remaining two quarters of the fiscal year ending December 31, 2026.

To execute its business plans, the Company may need additional funding to support its continuing operations and pursue its growth strategy.

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Basis of Presentation and Use of Estimates

The accompanying unaudited interim condensed balance sheets as of March 31, 2026, condensed statements of operations and stockholders' equity for the three months ended March 31, 2026 and 2025, cash flows for the three months ended March 31, 2026 and 2025 and the related footnote disclosures are unaudited and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC), and with accounting principles generally accepted in the United States (GAAP) applicable to interim financial statements.

The accompanying unaudited interim condensed balance sheets as of June 30, 2026, condensed statements of operations and stockholders' equity for the three and six months ended June 30, 2026 and 2025, cash flows for the six months ended June 30, 2026 and 2025 and the related footnote disclosures are unaudited and have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC), and with accounting principles generally accepted in the United States (GAAP) applicable to interim financial statements.

These unaudited condensed financial statements and related footnote disclosures should be read in conjunction with the Company’s audited financial statements for the fiscal year ended December 31, 2025, included in its Annual Report on Form 10-K filed with the SEC on March 10, 2026 (the 2025 Annual Report).

In management's opinion, the unaudited interim condensed financial statements have been prepared on the same basis as the audited financial statements included in the 2025 Annual Report and include all normal adjustments, necessary for the fair presentation of the Company's financial position as of March 31, 2026 and its results of operations for the periods presented.

The results for the three months ended March 31, 2026 are not necessarily indicative of the results expected for the full fiscal year or any other interim period.

The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.

In management's opinion, the unaudited interim condensed financial statements have been prepared on the same basis as the audited financial statements included in the 2025 Annual Report and include all normal adjustments, necessary for the fair presentation of the Company's financial position as of June 30, 2026 and its results of operations for the periods presented.

The results for the three and six months ended June 30, 2026 are not necessarily indicative of the results expected for the full fiscal year or any other interim period.

The year-end condensed balance sheet data

was derived from audited financial statements, but does not include all disclosures required by GAAP.

Certain reclassifications have been made to prior period amounts to conform to the current presentation.

1 unchanged sentence

Actual results could materially differ from those estimates.

Significant estimates and assumptions made in the accompanying unaudited condensed financial statements include, but are not limited to revenue recognition, the fair value of the warrant liability, the estimated incremental borrowing rate for the determination of the Company's operating and finance lease right-of-use (ROU) assets, and the recoverability of its long-lived assets and net deferred tax assets (and related valuation allowance).

Significant estimates and assumptions made in the accompanying unaudited condensed financial statements include, but are not limited to revenue recognition, stock-based compensation, the fair value of the warrant liability, the estimated incremental borrowing rate for the determination of the Company's operating and finance lease right-of-use (ROU) assets, and the recoverability of its long-lived assets and net deferred tax assets (and related valuation allowance).

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.

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Customer A 25 % 23 % 25 % 23 %

Customer B 17 % 16 % 19 % 17 %

Customer C * * * 10 %

Customer D * 10 % * *

Accounts Receivable, Net

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Customer A 18 % 23 %

1 unchanged sentence

Customer C * 14 %

For the three months ended March 31, 2026 and 2025, approximately 91 % and 92 %, respectively, of the Company's revenue was related to the AVISE ® CTD test.

For the three months ended June 30, 2026 and 2025, approximately 89 % and 91 %, respectively, of the Company's revenue was related to the AVISE ® CTD test.

Revenue related to AVISE® CTD test for the six months ended June 30, 2026 and 2025 was approximately 90 % and 91 %, respectively.

The Company is dependent on key suppliers for certain laboratory materials, consisting primarily of reagents and biomarkers used in our diagnostic tests.

For the three months ended March 31, 2026 and 2025 approximately 98 % and 76 %, respectively, of the Company's diagnostic testing supplies were purchased from two suppliers.

For the three months ended June 30, 2026 and 2025 approximately 93 % and 87 %, respectively, of the Company's diagnostic testing supplies were purchased from two suppliers.

For the six months ended June 30, 2026 and 2025 approximately 96 % and 92 %, respectively, of the Company's diagnostic testing supplies were purchased from two suppliers.

An interruption in the supply of these materials would impact the Company's ability to perform testing services.

1 unchanged sentence

The following table includes the Company's revenues as disaggregated by payor and customer category (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Commercial $ 10,352 $ 8,811 $ 19,828 $ 17,571

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Cash, cash equivalents and restricted cash presented in the accompanying condensed statements of cash flows consist of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 24,588 $ 32,220

13 unchanged sentences

The Company primarily markets its testing products to rheumatologists and their physician assistants in the United States.

The healthcare professionals who order the Company's testing products and to whom test results are reported are generally not responsible for payment for

these products.

The healthcare professionals who order the Company's testing products and to whom test results are reported are generally not responsible for payment for these products.

The parties that pay for these services (each, a payor) consist of commercial payors (healthcare insurers), government payors (primarily Medicare and Medicaid), client payors (hospitals, other laboratories, etc.) and patient self-pay.

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Further adjustments to the allowances, based on actual receipts, are recorded upon settlement.

Included in revenues for the three months ended March 31, 2026 and 2025 were net revenue increases of $ 1.1 million and $ 0.7 million, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods.

Included in revenues for the three months ended June 30, 2026 and 2025 were net revenue increases of $ 1.3 million and $ 0.1 million, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods.

Included in revenues for the six months ended June 30, 2026 and 2025 were net revenue increases of $ 2.1 million and $ 1.0 million, respectively, associated with changes in estimated variable consideration related to performance obligations satisfied in previous periods.

The transaction price is estimated using an expected value method on a portfolio basis.

14 unchanged sentences

The Company received nonrefundable, upfront payments for these services.

The Company had deferred revenue related to these contracts of $ 0.7 million as of each of March 31, 2026 and December 31, 2025.

The Company recognized revenue of $ 0.1 million out of the beginning deferred revenue balance during each of the three months ended March 31, 2026 and 2025.

The Company had deferred revenue related to these contracts of $ 1.5 million and $ 0.7 million as of June 30, 2026 and December 31, 2025, respectively.

The Company recognized revenue of $ 0.4 million and $ 0.2 million out of the beginning deferred revenue balance during the six months ended June 30, 2026 and 2025, respectively.

The Company expects to recognize revenue from unfulfilled performance obligations associated with service contracts within one year or less.

3 unchanged sentences

The Company generally does not perform evaluations of the financial condition of the Company's customers and generally does not require collateral.

The allowance for credit losses was zero as of each of March 31, 2026 and 2025.

The allowance for credit losses was zero as of June 30, 2026 and December 31, 2025.

Adjustments for implicit price concessions attributable to variable consideration, as discussed above, are incorporated into the measurement of the accounts receivable balances and are not part of the allowance for credit losses.

Accounts receivable was $ 15.8 million and $ 10.9 million at March 31, 2026 and December 31, 2025, respectively.

Accounts receivable was $ 12.4 million and $ 10.9 million at June 30, 2026 and December 31, 2025, respectively.

Loan Commitment Fees

2 unchanged sentences

The Company’s loan commitment fee is comprised of an upfront cash payment and a contingent obligation to issue future warrants to Perceptive Credit Holdings IV, LP (Perceptive) in connection with the Credit Agreement and Guaranty, dated April 25, 2025 (Credit Agreement).

The Company recorded $ 0.7 million in prepaid expenses and other current assets on the condensed balance sheets as of March 31, 2026.

The Company recorded $ 0.5 million in prepaid expenses and other current assets on the condensed balance sheets as of June 30, 2026.

As the Company is not reasonably certain it will draw on the future debt tranches, the loan commitment fees are amortized ratably into interest expense over the outstanding draw periods.

During the three months ended March 31, 2026, the Company recognized $ 0.2 million in non-cash interest expense related to the amortization of the loan commitment fees within the Company's condensed statements of operations.

During the three months ended March 31, 2026, the Company recognized a loss of $ 0.4 million within other income (expense), net on the condensed statements of operations as a result of accelerating the amortization of the loan commitment fees asset recorded in connection with the Tranche C Loan (as defined below), which was terminated pursuant to the First Amendment (as defined below).

During the three and six months ended June 30, 2026, the Company recognized $ 0.2 million and $ 0.4 million, respectively, in non-cash interest expense related to the amortization of the loan commitment fees within the Company's condensed statements of operations.

During each of the three and six months ended June 30, 2025, the Company recognized $ 0.2 million in non-cash interest expense related to the amortization of the loan commitment fees within the Company's condensed statements of operations.

During the six months ended June 30, 2026, the Company recognized a loss of $ 0.4 million within other income (expense), net on the condensed statements of operations as a result of accelerating the amortization of the loan commitment fees asset recorded in connection with the Tranche C Loan (as defined below), which was terminated pursuant to the First Amendment (as defined below).

Borrowings—Perceptive Term Loan Facility ” for more information.

14 unchanged sentences

The Company issues new shares of common stock to satisfy the RSUs upon vesting.

The Company grants certain performance-based restricted stock units (PSUs) to its executive officers as part of its long-term incentive plan.

The PSUs vest based on the achievement of both pre-determined market conditions and service conditions over a specified performance period.

The Company issues new shares of common stock to satisfy the PSUs upon vesting and the PSUs are not settleable for cash.

The fair value of the Company's PSUs is determined on the grant date using a Monte Carlo simulation model.

Comprehensive Loss

5 unchanged sentences

The weighted-average number of shares used to compute basic and diluted shares includes shares issuable upon the exercise of pre-funded warrants at a nominal price.

Potentially dilutive common stock equivalents are comprised of warrants for the purchase of common stock, stock options, RSUs outstanding under the Company's 2019 Incentive Award Plan (the 2019 Plan) and shares of the Company's common stock pursuant to the ESPP.

For each of the three months ended March 31, 2026 and 2025, there was no difference in the number of shares used to calculate basic and diluted shares outstanding as the inclusion of the potentially dilutive securities would be anti-dilutive.

Potentially dilutive common stock equivalents are comprised of warrants for the purchase of common stock, stock options, RSUs and PSUs outstanding under the Company's 2019 Incentive Award Plan (the 2019 Plan) and shares of the Company's common stock pursuant to the ESPP.

For each of the three and six months ended June 30, 2026 and 2025, there was no difference in the number of shares used to calculate basic and diluted shares outstanding as the inclusion of the potentially dilutive securities would be anti-dilutive.

Potentially dilutive securities not included in the calculation of diluted net loss per share, because to do so would be anti-dilutive, are as follows (in common stock equivalent shares):

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

Warrants to purchase common stock — 580,339

1 unchanged sentence

Restricted stock units 1,973,952 1,679,624

Performance stock units 800,000 —

Employee stock purchase plan 75,562 54,454

16 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Diagnostic testing supplies $ 4,159 $ 3,296

5 unchanged sentences

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Furniture and fixtures $ 121 $ 121

7 unchanged sentences

Property and equipment, net $ 6,565 $ 6,938

Depreciation and amortization expense for the three months ended March 31, 2026 and 2025 was approximately $ 0.6 million and $ 0.4 million, respectively.

At each of March 31, 2026 and December 31, 2025, the gross book value of assets under finance leases was $ 3.7 million.

Depreciation and amortization expense for the three months ended June 30, 2026 and 2025 was approximately $ 0.6 million and $ 0.5 million, respectively.

Depreciation and amortization expense for the six months ended June 30, 2026 and 2025 was approximately $ 1.2 million and $ 0.9 million, respectively.

At each of June 30, 2026 and December 31, 2025, the gross book value of assets under finance leases was $ 3.7 million.

Accrued and Other Current Liabilities

Accrued and other current liabilities consist of the following (in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Accrued payroll and related expenses $ 4,077 $ 5,411

5 unchanged sentences

The original Credit Agreement provided for three additional tranches of funding:

up to $ 10.0 million (the Tranche B Loan), $ 10.0 million (the Tranche C Loan), and $ 30.0 million (the Tranche D Loan, and collectively with the Tranche A Loan, the Tranche B Loan and the Tranche C Loan, the Term Loans) to be drawn at the Company's option subject to the Company’s satisfaction of certain conditions, including specified revenue milestones.

up to $ 10.0 million (the Tranche B Loan), $ 10.0 million (the Tranche C Loan), and $ 30.0 million

(the Tranche D Loan, and collectively with the Tranche A Loan, the Tranche B Loan and the Tranche C Loan, the Term Loans) to be drawn at the Company's option subject to the Company’s satisfaction of certain conditions, including specified revenue milestones.

On March 6, 2026, the Company and Perceptive entered into a first amendment to the Credit Agreement (First Amendment).

applicable to the Tranche B Borrowing Date (as defined therein), and revised certain financial covenant thresholds.

This amendment, among other changes, terminated the Tranche C Loan, extended the availability of the $ 10.0 million Tranche B Loan to September 30, 2026, increased the trailing twelve-month net revenue milestone applicable to the Tranche B Borrowing Date (as defined therein), and revised certain financial covenant thresholds.

As amended, the Perceptive Term Loan Facility allows the Company to draw up to an aggregate additional principal amount of $ 40.0 million in two tranches, subject to specified milestone and revenue requirements.

1 unchanged sentence

The Perceptive Term Loan Facility matures on April 25, 2030, and includes an interest-only period through maturity, with all outstanding principal and accrued interest due on the maturity date.

The Perceptive Term Loan Facility accrues interest at an annual rate equal to the greater of (i) Term Secured Overnight Financing Rate ( SOFR ) or (ii) 4.75 %, plus a margin of 7.0 % (the Applicable Margin), payable monthly in arrears.

Upon the occurrence and during the continuance of an event of default, the Applicable Margin may be increased by 4.0 % at Perceptive’s election.

3 unchanged sentences

The Credit Agreement also requires that the Company maintain a minimum unrestricted cash balance of $ 3.0 million and achieve specified net revenue levels on a quarterly basis.

As of March 31, 2026, the Company was in compliance with all covenants required under the Credit Agreement.

As of June 30, 2026, the Company was in compliance with all covenants required under the Credit Agreement.

In addition, on April 25, 2025, as consideration for the Credit Agreement, the Company issued to Perceptive a warrant certificate to purchase up to 1,150,000 shares of common stock (the Warrant Certificate), 400,000 of which vested and became exercisable on the date of issuance (Tranche A Warrant Shares), and warrants to purchase up to 750,000 shares of the Company's common stock were subject to vest and would become exercisable if and when the additional debt tranches were drawn by the Company.

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Summary of Significant Accounting Policies."

For the three months ended March 31, 2026, the Company recognized $ 1.1 million of interest expense, including $ 0.1 million of debt discount amortization in connection with the Perceptive Term Loan Facility.

For the three months ended June 30, 2026 and 2025, the Company recognized $ 1.1 million and $ 0.8 million of interest expense, respectively, including $ 0.2 million and $ 0.1 million of debt discount amortization in connection with the Perceptive Term Loan Facility, respectively.

For the six months ended June 30, 2026 and 2025, the Company recognized $ 2.2 million and $ 0.8 million of interest expense, respectively, including $ 0.3 million and

$ 0.1 million for debt discount amortization in connection with the Perceptive Term Loan Facility, respectively.

The effective interest rate was 16.2 % per annum.

As of March 31, 2026, the Perceptive Term Loan Facility had a carrying value of $ 21.8 million, classified within borrowings, non-current, net of discounts and debt issuance costs in the accompanying condensed balance sheets.

As of June 30, 2026, the Perceptive Term Loan Facility had a carrying value of $ 22.0 million, classified within borrowings, non-current, net of discounts and debt issuance costs in the accompanying condensed balance sheets.

2017 Term Loan

In September 2017, the Company executed a term loan agreement (the 2017 Term Loan) with Innovatus, as amended (the Amended Loan Agreement), pursuant to which the Company borrowed $ 25.0 million.

As of March 31, 2025, the 2017 Term Loan was fully drawn with an outstanding principal balance of $ 19.8 million and a carrying

value of $ 19.3 million.

The interest rate on all borrowings under the Amended Loan Agreement was the sum of (a) the greater of 8.0 % or The Wall Street Journal prime rate plus (b) 2.0 %.

Interest on any outstanding term loan advances was due and payable monthly, unless the Company elected to pay paid-in-kind interest.

In addition to the monthly interest payments, a final payment equal to $ 1.0 million was due the earlier of the maturity date or the date the advance is repaid.

Principal balances were required to be repaid in 24 equal installments which began on August 1, 2023.

On April 25, 2025, the Company fully repaid all $ 19.7 million in outstanding indebtedness owed to Innovatus pursuant to its Amended Loan Agreement and terminated the agreement.

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In January 2025, the Company entered into a financing arrangement to procure additional laboratory equipment.

At March 31, 2026, the total liability balance related to the financed equipment was $ 1.1 million, with $ 0.6 million classified within borrowings, current and $ 0.5 million within borrowings, non-current, net of discounts and debt issuance costs in the accompanying condensed balance sheets.

At June 30, 2026, the total liability balance related to the financed equipment was $ 0.9 million, with $ 0.5 million classified within borrowings, current and $ 0.4 million within borrowings, non-current, net of discounts and debt issuance costs in the accompanying condensed balance sheets.

At December 31, 2025, the total liability balance related to the financed equipment was $ 1.2 million, with $ 0.6 million classified within borrowings, current and $ 0.6 million within borrowings, non-current, net of discounts and debt issuance costs in the accompanying condensed balance sheets.

1 unchanged sentence

Future Minimum Payments on the Outstanding Borrowings

As of March 31, 2026, future minimum aggregate payments, including interest, for outstanding borrowings for each of the years ending December 31 were as follows (in thousands):

As of June 30, 2026, future minimum aggregate payments, including interest, for outstanding borrowings for each of the years ending December 31 were as follows (in thousands):

2026 (remaining) $ 1,839

12 unchanged sentences

Pursuant to the Amended Supply Agreement, the Company is provided equipment by the supplier to be used by the Company in connection with the consumable products.

The aggregate minimum annual purchase commitment for the duration

of the Amended Supply Agreement is $ 24.0 million, including a minimum purchase commitment of $ 3.0 million for the year ending December 31, 2025, $ 6.0 million for each of the years ending December 31, 2026 through 2028 and $ 3.0 million for the six month period ending June 30, 2029.

The aggregate minimum annual purchase commitment for the duration of the Amended Supply Agreement is $ 24.0 million, including a minimum purchase commitment of $ 3.0 million for the year ending December 31, 2025, $ 6.0 million for each of the years ending December 31, 2026 through 2028 and $ 3.0 million for the six month period ending June 30, 2029.

The Company accounts for the Amended Supply Agreement as an embedded finance lease for the equipment provided, with the reagents as a non-lease component accounted for separately.

The minimum purchase commitments for the reagents represent in-substance fixed contract consideration and are recorded based on the relative fair value of the equipment of $ 3.1 million as a ROU asset and related lease liability.

As of March 31, 2026, the Company had a finance lease ROU asset of $ 2.6 million and lease liabilities of $ 2.6 million on the Company's balance sheets related to the embedded finance lease.

For the three months ended March 31, 2026, the Company recorded interest expense of $ 0.1 million related to this embedded finance lease on the Company's statements of operations.

As of June 30, 2026, the Company had a finance lease ROU asset of $ 2.5 million and lease liabilities of $ 2.5 million on the Company's balance sheets related to the embedded finance lease.

For the three and six months ended June 30, 2026, the Company recorded interest expense of $ 0.1 million and $ 0.2 million, respectively, related to this embedded finance lease on the Company's statements of operations.

Operating Leases

In June 2026, the Company amended its lease for office and laboratory space in Vista, California to extend the term by an additional 39 months through July 2030.

As a result of the lease modification, the Company remeasured the lease liability and recorded an increase of approximately $ 1.0 million to both operating lease liabilities and operating lease ROU assets on the Company's condensed balance sheets.

Contingencies

8 unchanged sentences

The estimated fair value of the Company's long-term borrowings is determined by Level 2 inputs and based primarily on quoted market prices for the same or similar issues.

As of March 31, 2026, the Perceptive Term Loan Facility had a carrying value of $ 21.8 million and a fair value of $ 22.2 million.

As of June 30, 2026, the Perceptive Term Loan Facility had a carrying value of $ 22.0 million and a fair value of $ 23.3 million.

As of December 31, 2025, the Perceptive Term Loan Facility had a carrying value of $ 21.7 million and a fair value of $ 22.6 million.

The estimated fair value of the Perceptive Term Loan Facility was determined based on a discounted cash flow approach using available market information on discount and borrowing rates with similar terms, maturities, and credit ratings.

The aggregate carrying value of the Company's other long-term borrowings as of March 31, 2026 and December 31, 2025 was $ 1.1 million and $ 1.2 million, respectively, and approximated its fair value.

Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The aggregate carrying value of the Company's other long-term borrowings as of June 30, 2026 and December 31, 2025 was $ 0.9 million and $ 1.2 million, respectively, and approximated its fair value.

market participants on the measurement date.

Techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

5 unchanged sentences

The following table sets forth the Company's financial instruments that were measured at fair value on a recurring basis within the fair value hierarchy (in thousands):

March 31, 2026

June 30, 2026

Total Level 1 Level 2 Level 3

8 unchanged sentences

The assumptions used in the BSM option pricing model to determine the fair value of the warrant liability were as follows:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Fair value of underlying common stock $ 4.65 $ 6.08

6 unchanged sentences

The probability assessment considers both the likelihood of the Company satisfying certain conditions, including specified revenue milestones, which give the Company the option to draw future debt tranches as well as the likelihood that the Company will exercise the right to draw one or more future debt tranches.

The Company assessed these factors at inception and as of March 31, 2026 and applied a weighted-average probability of approximately 50 % as of March 31, 2026 in the measurement of fair value, given current and forecasted capital needs.

The Company assessed these factors at inception and as of June 30, 2026 and applied a weighted-average probability of approximately 50 % as of June 30, 2026 in the measurement of fair value, given current and forecasted capital needs.

Significant increases or decreases in the probability assessment in future periods may increase or decrease the fair value estimate of the warrant liability, respectively.

2 unchanged sentences

In March 2026, the Company entered into the First Amendment which, among other changes, terminated the Tranche C Loan and reduced the number of shares of common stock subject to future vesting pursuant to the Warrant Certificate by 150,000 shares of common stock (the Tranche C Warrant Shares).

The fair value of the Tranche C Warrant Shares was remeasured immediately prior to the First Amendment date and the Company

recognized a $ 0.1 million gain within other income (expense), net on the Company's condensed statements of operations, in connection with the reduction in the shares that may become exercisable pursuant to the Warrant Certificate.

The fair value of the Tranche C Warrant Shares was remeasured immediately prior to the First Amendment date and the Company recognized a $ 0.1 million gain within other income (expense), net on the Company's condensed statements of operations, in connection with the reduction in the shares that may become exercisable pursuant to the Warrant Certificate.

The following table provides a reconciliation of the warrant liability measured at fair value using Level 3 significant unobservable inputs (in thousands):

3 unchanged sentences

Termination of Tranche C Warrant Shares ( 103 )

Balance at March 31, 2026

Balance at June 30, 2026

Stockholders' Equity

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On November 17, 2023, the Company filed a registration statement on Form S-3, as amended (the 2023 Shelf Registration Statement), covering the offering, from time to time, of up to $ 150.0 million of the Company's common stock, preferred stock, debt securities, warrants and units.

The 2023 Shelf Registration Statement became effective on November 29, 2023, and $ 126.2 million remained available for sale as of March 31, 2026.

The 2023 Shelf Registration Statement became effective on November 29, 2023, and $ 126.2 million remained available for sale as of June 30, 2026.

At The Market Sales Agreement

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As of December 31, 2025, the Company has sold 360,554 shares of its common stock under the Amended Sales Agreement at an average price per share of $ 9.82 , for gross proceeds of approximately $ 3.5 million and net proceeds of approximately $ 3.4 million after deducting $ 0.1 million in commissions paid to TD Cowen and other offering expenses payable by the Company.

During the three months ended March 31, 2026, the Company did not sell any shares of its common stock pursuant to the Amended Sales Agreement.

During the six months ended June 30, 2026, the Company did not sell any shares of its common stock pursuant to the Amended Sales Agreement.

2025 Public Offering

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The 2025 Public Offering closed on May 9, 2025.

The net proceeds to the Company from the 2025 Public Offering were approximately $ 18.6 million after deducting $ 1.6 million of the underwriting discounts and commissions and other offering expenses payable by the Company.

Outstanding Warrants

The following equity classified warrants to purchase common stock of the Company were outstanding and exercisable as of March 31, 2026:

Shares Exercise Price Issuance date Expiration date

Common stock warrants 131 $ 1.84 April 1, 2016 April 1, 2026

The net proceeds to the Company from the

2025 Public Offering were approximately $ 18.6 million after deducting $ 1.6 million of the underwriting discounts and commissions and other offering expenses payable by the Company.

As of June 30, 2026, the Company did not have any outstanding equity classified warrants to purchase common stock of the Company.

In connection with the Perceptive Term Loan Facility, the Company may issue warrants for the purchase of up to an additional 600,000 shares of the Company’s common stock if and when the Company satisfies certain conditions and chooses to draw additional debt tranches during the respective draw periods.

The Company issued a total of 804,788 shares of common stock upon the cashless exercise of certain warrants during the three months ended March 31, 2026.

No warrants to purchase common stock of the Company were exercised during the three months ended March 31, 2025.

The Company issued a total of 804,788 shares of common stock upon the cashless exercise of certain warrants during the six months ended June 30, 2026.

The Company did not issue any shares of common stock upon the exercise of warrants during the three months ended June 30, 2026.

The Company issued a total of 107,969 shares of common stock upon the cashless exercise of certain warrants during each of the three and six months ended June 30, 2025.

Stock Option Plan

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In September 2019, the Company's Board of Directors (the Board) adopted, and the Company's stockholders approved, the 2019 Plan.

Under the 2019 Plan, which expires in September 2029, the Company may grant stock options, stock appreciation rights, restricted stock, RSUs and other awards to individuals who are then employees, officers, non-employee directors or consultants of the Company or its subsidiaries.

Under the 2019 Plan, which expires in September 2029, the Company may grant stock options, stock appreciation rights, restricted stock, RSUs, PSUs and other awards to individuals who are then employees, officers, non-employee directors or consultants of the Company or its subsidiaries.

The options generally expire ten years after the date of grant and are exercisable to the extent vested.

Vesting is established by the Board and is generally four years from the date of grant or, for grants to new hires, four years from the date of hire.

As described below, the Board also awards PSUs to executive officers that vest upon the occurrence of performance milestones.

The 2019 Plan contains an "evergreen provision" that allows annual increases in the number of shares available for issuance on the first day of each calendar year through January 1, 2029 in an amount equal to the lesser of:

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Pursuant to the evergreen provision, on January 1, 2026, an additional 916,463 shares of the Company's common stock became available for issuance under the 2019 Plan.

As of March 31, 2026, 2,401,275 shares of the Company's common stock remained available for future awards under the 2019 Plan.

As of June 30, 2026, 1,427,318 shares of the Company's common stock remained available for future awards under the 2019 Plan.

Restricted Stock Units

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Awards canceled ( 97,356 ) $ 3.29

Outstanding, March 31, 2026

Outstanding, June 30, 2026

1,973,952 $ 3.82

As of March 31, 2026, all of the 2,129,706 outstanding RSUs were unvested.

The fair value of RSUs vested in the three months ended March 31, 2026 and 2025 was $ 1.0 million and $ 0.8 million, respectively.

The weighted average grant date fair value per share for RSUs granted during the three months ended March 31, 2026 and 2025 was $ 3.18 and $ 3.71 per RSU, respectively.

As of March 31, 2026, total unrecognized compensation cost related to RSUs was $ 7.2 million, which is expected to be recognized over a remaining weighted-average vesting period of 2.8 years.

As of June 30, 2026, all of the 1,973,952 outstanding RSUs were unvested.

The fair value of RSUs vested in the six months ended June 30, 2026 and 2025 was $ 1.4 million and $ 1.3 million, respectively.

The weighted-average grant date fair value per share for RSUs granted during the six months ended June 30, 2026 and 2025 was $ 3.18 and $ 3.97 per RSU, respectively.

As of June 30, 2026, total unrecognized compensation cost related to RSUs was $ 6.4 million, which is expected to be recognized over a remaining weighted-average vesting period of 2.6 years.

Performance Stock Units

In May 2026, as part of its long-term incentive plan, the Company granted a total of 800,000 PSUs to its executive officers which vest contingent upon the achievement of pre-determined market conditions and service conditions.

The number of shares of common stock to be issued at vesting for these awards is calculated based on the

Company's relative total shareholder return (TSR) percentile rank measured against the Russell 2000 Index during three overlapping measurement windows which occur over a three-year period from the grant date.

Vesting with respect to the TSR percentile rank ranges from zero to 200 percent of the target number of PSUs, with a maximum aggregate of 1,600,000 PSUs that may be earned.

The PSUs cliff-vest at the end of the three-year period, subject to the achievement of both the market and service conditions.

As of June 30, 2026, all 800,000 PSUs remained outstanding and unvested.

The Company determined the grant-date fair value of the PSUs using the Monte Carlo simulation model, which calculates the fair value of each PSU by estimating the probability of satisfying the market conditions stipulated in the awards.

The assumptions used in the Monte Carlo simulation model are as follows:

Grant-date stock price $ 3.47

Risk-free interest rate 3.9 %

Expected volatility 80.0 %

Expected term (in years) 3.0

Expected dividend yield — %

The Company recognizes stock-based compensation expense for the PSUs ratably over the three-year performance period of the awards.

The weighted-average grant date fair value per share of the PSUs granted during the six months ended June 30, 2026 was $ 5.64 per PSU.

As of June 30, 2026, total unrecognized compensation cost related to the PSUs was $ 4.3 million, which is expected to be recognized over a remaining weighted-average vesting period of 2.9 years.

Stock Options

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Forfeited ( 19,000 ) $ 5.37

Outstanding, March 31, 2026

Expired ( 10,033 ) $ 12.81

Outstanding, June 30, 2026

931,506 $ 5.41 7.59 $ 908

Vested and expected to vest, March 31, 2026

Vested and expected to vest, June 30, 2026

931,506 $ 5.41 7.59 $ 908

Options exercisable, March 31, 2026

Options exercisable, June 30, 2026

419,054 $ 7.42 5.07 $ 449

There were 190,000 and 120,070 stock options granted in the three months ended March 31, 2026 and 2025, respectively.

The intrinsic value is calculated as the difference between the fair value of the Company's common

stock and the exercise price of the stock options.

No options were exercised during the three months ended March 31, 2026, and 2025.

As of March 31, 2026, total unrecognized compensation cost related to option awards was $ 0.7 million, which is expected to be recognized over a remaining weighted-average vesting period of 2.9 years.

There were 433,700 and 169,570 stock options granted in the six months ended June 30, 2026 and 2025, respectively.

The weighted-average grant date fair value per share for options granted during the six months ended June 30, 2026 and 2025 was $ 2.69 and $ 3.50 , respectively.

The intrinsic value is calculated as the difference between the fair value of the Company's common stock and the exercise price of the stock options.

No options were exercised during the six months ended June 30, 2026, and the aggregate intrinsic value of options exercised during the six months ended June 30, 2025 was zero .

As of June 30, 2026, total unrecognized compensation cost related to option awards was $ 1.3 million, which is expected to be recognized over a remaining weighted-average vesting period of 2.1 years.

2019 Employee Stock Purchase Plan

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The ESPP permits participants to purchase shares of the Company's common stock through payroll deductions of up to 20.0 % of their eligible compensation.

The number of shares of the Company's common stock available for issuance under the ESPP will be annually increased on the first day of each calendar year during the term of the ESPP through January 1, 2029 in an amount equal to the lesser of (i) 1.0 % of the outstanding capital stock on each December 31st, or (ii) such lesser amount determined by the Board.

lesser of (i) 1.0 % of the outstanding capital stock on each December 31st, or (ii) such lesser amount determined by the Board.

Pursuant to the evergreen provision, on January 1, 2026, an additional 229,115 shares of the Company's common stock became available for issuance under the ESPP.

As of March 31, 2026, 675,900 shares of the Company's common stock remained available for issuance under the ESPP.

During the three months ended March 31, 2026, a total of 96,023 shares of the Company's common stock were issued under the ESPP.

As of June 30, 2026, 675,900 shares of the Company's common stock remained available for issuance under the ESPP.

During the six months ended June 30, 2026, a total of 96,023 shares of the Company's common stock were issued under the ESPP.

Stock-Based Compensation Expense

Total non-cash stock-based compensation expense recorded related to options granted, RSUs granted and stock purchase rights granted under the ESPP in the condensed statements of operations is as follows (in thousands):

Three Months Ended March 31,

Total non-cash stock-based compensation expense recorded related to options granted, RSUs granted, PSUs granted and stock purchase rights granted under the ESPP in the condensed statements of operations is as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Cost of revenue $ 62 $ 60 $ 110 $ 115

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The CODM considers budget/forecast versus actual results on a quarterly basis when making decisions about the allocation of resources.

The measure of segment assets is reported on the balance sheet as total assets and were $ 52.0 million and $ 58.0 million as of March 31, 2026 and December 31, 2025, respectively.

The measure of segment assets is reported on the balance sheet as total assets and were $ 51.9 million and $ 58.0 million as of June 30, 2026 and December 31, 2025, respectively.

Segment revenue and net loss, including significant segment expenses regularly provided to the CODM are as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Revenue $ 19,941 $ 17,202 $ 37,247 $ 32,700

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Depreciation and amortization 235 270 465 529

1,265 1,856 2,880 3,423

Total segment operating expenses 13,939 13,025 27,558 25,513

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Interest expense ( 1,201 ) ( 1,124 ) ( 2,468 ) ( 1,669 )

Loss on extinguishment of debt — ( 295 ) — ( 295 )

Change in fair value of warrant liability ( 426 ) ( 438 ) 456 ( 438 )

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Segment net loss $ ( 3,196 ) $ ( 4,439 ) $ ( 7,163 ) $ ( 8,191 )

1 Other segment items included in Segment net loss include insurance expenses, trade show and conference expenses, fulfillment expenses, board compensation, clinical trial expenses, collaboration expenses and bank fees, among others.

1 Other segment items included in Segment operating expenses include insurance expenses, trade show and conference expenses, fulfillment expenses, board compensation, clinical trial expenses, collaboration expenses and bank fees, among others.

Subsequent Events

In July 2026, the Company entered into a new lease agreement for the approximately 28,000 square feet of office space in Carlsbad, CA that is currently being subleased by the Company through April 2027.

The new lease commences in May 2027 and expires in July 2030, and includes an option to extend the term for an additional three years .

The total minimum operating lease payments under the new lease is approximately $ 1.9 million.

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