What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-04 compared with 2026-05-11 · 98 added, 54 removed, 246 unchanged (38% of the section changed)

27 unchanged sentences

Since launching AVISE® CTD, we have produced an extensive body of peer-reviewed literature supporting the test’s clinical validity and utility, demonstrating the importance of AVISE® CTD in patient care.

Revenue from this product comprised 91% and 92% of our revenue for the three months ended March 31, 2026 and 2025, respectively.

Revenue from this product comprised 90% and 91% of our revenue for the six months ended June 30, 2026 and 2025, respectively.

In addition to providing diagnostic testing, we are leveraging our clinical laboratory to enter into agreements in the normal course of business with leading pharmaceutical companies and contract research organizations for the use of our testing products and/or the de-identified data generated from such tests.

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We believe there is significant potential to enhance existing or develop new testing products with superior clinical utility, on our own or through collaboration with partners.

▪ Myositis Biomarkers .

Myositis specific antibodies (MSA) are a well-defined group of important biomarkers for the diagnosis of idiopathic inflammatory myopathies, and the stratification of patients into clinical phenotypes, according to treatment responses, and disease outcomes.

Despite the advanced research on these markers, significant challenges persist with standardization and availability of validated methods with fast turnaround time.

Our research studies use different technologies for the detection of MSA.

When compared to traditional technologies, we gain a unique understanding about potential avenues for product development in the area of myositis.

We expect to launch our first Myositis offering in 2027.

▪ Lupus Nephritis (LN) Biomarkers .

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Our candidate assay for RA disease activity is in development, with the validation cohort procured for analysis.

▪ Kidney Damage Biomarkers .

We have a multi‑analyte blood‑based panel under development, which sensitively detects kidney damage in early renal disease, outperforming creatinine and estimated glomerular filtration rate.

provisional patent applications were filed in May 2025 for methods of detecting kidney damage using the blood-based panel.

In addition, two abstracts were presented at ACR 2025 on our biomarker panel for early kidney damage comprising uromodulin, myo‑inositol oxygenase, heparanase, and apoptosis‑resistant E3 ubiquitin ligase 1.

Further investment is needed to make this offering commercially viable, and it has been deprioritized at this time, in light of other high‑potential programs within our pipeline.

▪ Myositis Biomarkers .

Despite the advanced research on these markers, significant challenges persist with standardization and availability of validated methods with fast turnaround time.

Our research studies use different technologies for the detection of MSA.

When compared, we gain a unique understanding about potential avenues for product development in the area of myositis.

Factors Affecting Our Performance

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Historically, we have experienced situations where commercial payors proactively reduced the amounts they were willing to reimburse for our tests, and in other situations, commercial payors have determined that the amounts they previously paid were too high and have sought to recover those perceived excess payments by deducting such amounts from payments otherwise being made.

When we contract to serve as a participating provider, reimbursements are made pursuant to a negotiated fee schedule and are limited to only covered indications.

When we contract to serve as a participating provider, reimbursements are made

pursuant to a negotiated fee schedule and are limited to only covered indications.

If we are not able to obtain or maintain coverage and adequate reimbursement from third-party payors, we may not be able to effectively increase our testing volume and revenue as expected.

Additionally, changes in our estimated reimbursements for tests performed in prior periods can positively or negatively impact our revenue in the current period and cause our financial results to fluctuate.

In addition, in connection with our revenue cycle management initiatives, we have in the past and continue to hold claims in the first half of the fiscal year, which typically results in increases in our accounts receivable and an accelerated decrease in our cash in the same period, with the trend subsequently reversed in the second half of the fiscal year as cash is collected on billed tests.

In addition, in connection with our revenue cycle management initiatives, we have in the past held claims in the first quarter of the fiscal year, which resulted in increases in our accounts receivable and an accelerated decrease in our cash in the same period.

The trend subsequently reversed in the three months ended June 30, 2026 as we collected cash on billed tests.

▪ Expanding Adoption of AVISE® CTD.

Since the launch of AVISE ® CTD in 2012 and through March 31, 2026, we have delivered over one million of these tests.

During the three months ended March 31, 2026, the number of AVISE ® CTD tests delivered increased by approximately 10% over the same period in 2025.

Revenue growth for our testing products will depend, in part, on our ability to continue to expand our base of ordering healthcare providers and increase our penetration with existing healthcare providers and on the success of the T-Cell Biomarkers and RA Sub-Profile Biomarkers, which we added to our AVISE ® CTD tests in January 2025.

Since the launch of AVISE ® CTD in 2012 and through June 30, 2026, we have delivered over one million of these tests.

During the three months ended June 30, 2026, the number of AVISE ® CTD tests delivered increased by approximately 11% over the same period in 2025.

▪ Development of Innovative Testing Products .

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Our service is completed upon the delivery of test results to the prescribing rheumatologists which triggers billing for the service.

Our ability to increase our revenue may depend, in part, on the success of the T-Cell Biomarker and RA and PAD4 Sub-Profile Biomarkers enhancements to our AVISE® CTD test, in addition to our ability to further penetrate the market for our current and future testing products and increase our reimbursement and collection rates (ASP) for tests delivered.

Our ability to increase our revenue may depend, in part, on our ability to increase our reimbursement and collection rates (ASP) for tests delivered and further penetrate the market for our current and future testing products.

In April 2022, we were granted a Proprietary Laboratory Analyses code (PLA code) for our protein-based test, AVISE ® Lupus, which is offered standalone or as part of our AVISE ® CTD test.

Noridian Healthcare Solutions (Noridian), our Medicare Administrative Contractor (MAC), has set the current pricing for this PLA code at $840.65 per test.

Noridian Healthcare Solutions (Noridian), our Medicare Administrative Contractor (MAC), has set the current pricing for this PLA code at $840.65 per test (the list price for AVISE ® Lupus is $1,787.22).

CMS will align local MAC pricing with national payment rates for the PLA code on the 2026 Clinical Laboratory Fee Schedule through their annual payment determination process to provide a standardized, nationally determined payment rate.

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We submitted a formal request to Noridian for coverage of our AVISE® Lupus test under the new PLA Code and on September 27, 2022, we received notice that Noridian deemed our application for a Local Coverage Determination (LCD) to be valid, but our application is still pending.

Ultimately receiving a favorable LCD is uncertain and may be time-consuming, resource intensive and require multiple quarterly or annual periods to complete and is subject to risks and uncertainties described in the section entitled " Risk Factors " in our 2025 Annual Report and this Quarterly Report.

Ultimately receiving a favorable LCD is uncertain and may be

time-consuming, resource intensive and require multiple quarterly or annual periods to complete and is subject to risks and uncertainties described in the section entitled " Risk Factors " in our 2025 Annual Report and this Quarterly Report.

Further, on January 20, 2025, President Trump issued an Executive Order entitled Regulatory Freeze Pending Review, which halted all federal level regulatory rules and guidance not yet in effect.

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During the fiscal year ended December 31, 2025, we saw a return to volume growth.

The number of AVISE® CTD tests delivered during the three months ended March 31, 2026 improved by approximately 10% as compared to the number of AVISE® CTD tests delivered during the three months ended March 31, 2025 due to continuing physician demand and adoption, early traction from our new biomarkers, and salesforce expansion.

Additionally, the trailing-twelve-month ASP of our AVISE® CTD tests increased by approximately 6% during the three months ended March 31, 2026 compared to the same period in 2025.

The number of AVISE® CTD tests delivered during the three months ended June 30, 2026 improved by approximately 11% as compared to the number of AVISE® CTD tests delivered during the three months ended June 30, 2025 due to continuing physician demand and adoption, early traction from our new biomarkers, and salesforce expansion.

Additionally, the trailing-twelve-month ASP of our AVISE® CTD tests increased by approximately 4% during the three months ended June 30, 2026 compared to the same period in 2025.

Cost of Revenue

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As a result, our cost of revenue as a percentage of revenue may vary significantly from period to period due to the composition of payors for each period's billings.

Our cost per AVISE® CTD test has increased

year-over-year as a result of costs associated with the addition of the T-Cell Biomarkers and RA Sub-Profile Biomarkers to our AVISE® CTD test.

Our cost per AVISE® CTD test has increased year-over-year as a result of costs associated with the addition of the T-Cell Biomarkers and RA Sub-Profile Biomarkers to our AVISE® CTD test.

Operating Expenses

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Interest expense consists of cash and non-cash interest expense associated with borrowings under the Perceptive Term Loan Facility as well as our other financing arrangements.

Loss on Extinguishment of Debt

Loss on extinguishment of debt consists of the unamortized debt issuance costs and final payment fee due under the terms of the Amended Loan Agreement.

The Amended Loan Agreement was fully repaid and terminated on April 25, 2025.

Change in Fair Value of Warrant Liability

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Results of Operations

Comparison of the Three Months Ended March 31, 2026 and 2025 (in thousands):

Three Months Ended March 31,

Comparison of the Three Months Ended June 30, 2026 and 2025 (in thousands):

Three Months Ended June 30,

2026 2025 Change

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Interest expense (1,201) (1,124) (77)

Loss on extinguishment of debt — (295) 295

Change in fair value of warrant liability (426) (438) 12

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Net loss $ (3,196) $ (4,439) $ 1,243

Revenue increased $1.8 million, or 11.7%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to ASP expansion driven primarily by our new biomarkers, and, to a lesser extent, an increase in test volume.

The number of AVISE ® CTD tests delivered in the three months ended March 31, 2026 increased by approximately 10% compared to the same period in 2025.

In addition, our AVISE ® CTD trailing twelve-month ASP increased by $25 per test to $444 per test in the first quarter of 2026 from $419 per test in the first quarter of 2025.

Revenue increased $2.7 million, or 15.9%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to increases in test volume and expansion of our AVISE® CTD.

The number of AVISE® CTD tests delivered in the three months ended June 30, 2026 increased by approximately 11% compared to the same period in 2025.

Our AVISE® CTD trailing twelve-month ASP increased by 4% or $18 per test to $446 per test in the second quarter of 2026 from $428 per test in the second quarter of 2025.

In addition, our pharma services revenue increased by approximately $0.7 million, to $1.0 million in the second quarter of 2026 from $0.3 million in the second quarter of 2025.

Cost of Revenue

Cost of revenue increased $0.7 million, or 11.4%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

This increase was primarily due to increases of $0.5 million in the cost of materials and supplies, $0.2 million in depreciation and amortization, and $0.2 million in other expenses, partially offset by a decrease of $0.2 million in employee-related expenses (including salaries, benefits and stock-based compensation).

Gross margin as a percentage of revenue increased to 59.0% for the three months ended March 31, 2026 compared to 58.9% for the three months ended March 31, 2025, primarily due to the changes to revenue and cost of revenue described above.

Cost of revenue increased $0.9 million, or 13.5%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

This increase was primarily due to increases of $0.3 million in the cost of materials and supplies, $0.2 million in depreciation and amortization, $0.2 million in employee-related expenses (including salaries, benefits and stock-based compensation), and $0.3 million in other expenses, partially offset by a decrease of $0.1 million in royalty expenses.

Gross margin as a percentage of revenue increased to 61.3% for the three months ended June 30, 2026 compared to 60.4% for the three months ended June 30, 2025, primarily due to the changes to revenue and cost of revenue described above.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $0.9 million, or 7.7%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

This increase was primarily due to an increase of $0.8 million in employee-related expenses (including salaries, benefits, commissions, bonuses and stock-based compensation) and an increase of $0.1 million in outside services.

Selling, general and administrative expenses increased $1.0 million, or 8.4%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

This increase was primarily due to increases of $1.0 million in employee-related expenses (including salaries, benefits, commissions, bonuses and stock-based compensation), $0.3 million in outside services, and $0.2 million in facilities-related expenses, partially offset by a decrease of $0.5 million in other expenses.

We expect that our selling, general and administrative expenses may increase moderately in absolute dollars in the near-term as we expand our sales force and invest in infrastructure to support expected volume and revenue growth, but expect our selling, general and administrative expenses to decrease year-over-year as a percentage of revenue.

Research and Development Expenses

Research and development expenses increased $0.3 million, or 21.0%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

This increase was primarily due to an increase of $0.3 million in employee-related expenses (including salaries, benefits, bonuses and stock-based compensation) and an increase of $0.1 million in clinical trial expenses, partially offset by a decrease of $0.1 million in outside services.

Research and development expenses decreased $0.1 million, or 3.8%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

This decrease was primarily due to decreases of $0.1 million in facilities related expenses, $0.1 million in clinical trial expenses, and $0.1 million in outside services, partially offset by a $0.2 million increase in employee-related expenses (including salaries, benefits, bonuses and stock-based compensation).

We expect that our research and development expenses may increase moderately in absolute dollars in the near-term as we execute on additional pipeline initiatives, but expect our research and development expenses to decrease year-over-year as a percentage of revenue.

Interest Expense

Interest expense increased by $0.7 million, including an increase of $0.3 million in non-cash interest expense, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to the Perceptive Term Loan Facility that we entered into in April 2025 and the embedded finance lease related to a supply agreement, as amended, with one of our suppliers for certain reagents.

Interest expense increased by $0.1 million, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to the Perceptive Term Loan Facility that we entered into in April 2025

and the embedded finance lease related to a supply agreement, as amended, with one of our suppliers for certain reagents.

We expect to continue to incur this interest expense under the Perceptive Term Loan Facility.

Loss on Extinguishment of Debt

Loss on extinguishment of debt decreased by $0.3 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, as a result of our early payoff of all outstanding indebtedness under the Amended Loan Agreement in April 2025.

Comparison of the Six Months Ended June 30, 2026 and 2025 (in thousands):

Six Months Ended June 30,

2026 2025 Change

Revenue $ 37,247 $ 32,700 $ 4,547

Cost of revenue 14,825 13,182 1,643

Gross profit 22,422 19,518 2,904

Operating expenses:

Selling, general and administrative expenses 24,579 22,746 1,833

Research and development expenses 2,979 2,767 212

Total operating expenses 27,558 25,513 2,045

Loss from operations (5,136) (5,995) 859

Interest expense (2,468) (1,669) (799)

Loss on extinguishment of debt — (295) 295

Change in fair value of warrant liability 456 (438) 894

The fair value of the warrant liability increased by $0.9 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to the Credit Agreement executed in April 2025.

Other income (expense), net 21 243 (222)

Interest income decreased $0.3 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to a $0.3 million net loss on debt modification related to the First Amendment executed in March 2026.

Loss before income taxes (7,127) (8,154) 1,027

Income tax expense (36) (37) 1

Net loss $ (7,163) $ (8,191) $ 1,028

Revenue increased $4.5 million, or 13.9%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, due to increases in test volume and expansion of our AVISE® CTD.

The number of AVISE® CTD tests delivered in the six months ended June 30, 2026 increased by approximately 11% compared to the same period in 2025.

Our AVISE® CTD trailing twelve-month ASP increased by 4% or $18 per test to $446 per test in the second quarter of 2026 from $428 per test in the second quarter of 2025.

In addition, our pharma services revenue increased by approximately $0.9 million, to $1.3 million in the six months ended June 30, 2026 from $0.4 million in the six months ended June 30, 2025.

Cost of Revenue

Cost of revenue increased $1.6 million, or 12.5%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

This increase was primarily due to increases of $0.9 million in materials and supplies, $0.4 million in depreciation and amortization, and $0.4 million in other expenses, partially offset by a decrease of $0.1 million in royalty expenses.

Gross margin as a percentage of revenue increased slightly to 60.2% for the six months ended June 30, 2026 compared to 59.7% for the six months ended June 30, 2025, primarily due to the changes to revenue and cost of revenue described above.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $1.8 million, or 8.1%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

This increase was primarily due to increases of $1.8 million in employee-related expenses (including salaries, benefits, commissions, bonuses and stock-based compensation), $0.4 million in outside services and $0.2 million in facilities-related expenses, partially offset by a decrease of $0.6 million in other expenses.

Research and Development Expenses

Research and development expenses increased $0.2 million, or 7.7%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

This increase was primarily due to an increase of $0.4 million in employee-related expenses (including salaries, benefits and stock-based compensation), partially offset by decreases of $0.1 million in facilities-related expenses and $0.1 million in outside services expenses.

Interest Expense

Interest expense increased by $0.8 million, including an increase of $0.3 million in non-cash interest expense, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to the Perceptive Term Loan Facility that we entered into in April 2025.

Loss on Extinguishment of Debt

Loss on extinguishment of debt decreased by $0.3 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, as a result of our early payoff of all outstanding indebtedness under the Amended Loan Agreement in April 2025.

Change in Fair Value of Warrant Liability

The fair value of the warrant liability increased by $0.9 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to the Credit Agreement executed in April 2025.

Other Income (Expense), net

Other income (expense), net decreased by $0.2 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, primarily due to a $0.3 million net loss on debt modification related to the First Amendment executed in March 2026, partially offset by an increase of $0.1 million in interest income.

Liquidity and Capital Resources

We have incurred net losses since our inception.

For the three months ended March 31, 2026 and 2025, we incurred a net loss of $4.0 million and $3.8 million, respectively, and we expect to incur additional losses in future periods.

For the six months ended June 30, 2026 and 2025, we incurred a net loss of $7.2 million and $8.2 million, respectively, and we expect to incur additional losses in future periods.

To date, we have generated only limited revenue, and despite any estimates we may make regarding our ability to become profitable, we may never achieve revenue sufficient to offset our expenses.

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

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

Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to liquidity and capital preservation.

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A total of an additional $40.0 million is available at our option under the Perceptive Term Loan Facility as amended in March 2026 should we attain specified revenue levels and satisfy other conditions.

We held claims in the quarter ended March 31, 2026, which resulted in increases in our accounts receivable and an accelerated decrease in our cash and cash equivalents in the quarter 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, we held claims in the quarter ended March 31, 2026, which resulted in increases in our accounts receivable and an accelerated decrease in our cash and cash

equivalents in the quarter ended March 31, 2026 and a reversal of that trend occurred in the quarter ended June 30, 2026 and is expected to continue in the remaining two quarters of the fiscal year ending December 31, 2026.

Since becoming a public company, our primary sources of capital have been cash inflows from product sales, sales of our common stock and, to a lesser extent, borrowings under term loan facilities.

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The Perceptive Term Loan Facility also requires that we maintain a minimum unrestricted cash balance of $3.0 million and achieve specified net revenue levels on a quarterly basis beginning with the quarter ending June 30, 2025.

In addition, upon the occurrence of an event of default, Perceptive, among other things, can declare all indebtedness due and payable immediately, which would adversely impact our liquidity and reduce the availability of our cash flows to fund working capital needs,

capital expenditures and other general corporate purposes.

As of March 31, 2026, we were in compliance with all covenants of the Perceptive Term Loan Facility.

On November 17, 2023, we filed the Shelf Registration Statement covering the offering, from time to time, of up to $150.0 million shares of our common stock, preferred stock, debt securities, warrants and units, of which $126.2 million remained available for sale at March 31, 2026.

As of June 30, 2026, we were in compliance with all covenants of the Perceptive Term Loan Facility.

On September 15, 2022, we entered into the Amended Sales Agreement with TD Cowen, as sales agent, pursuant to which we may offer and sell, from time to time, shares of common stock having an aggregate offering price of up to $50.0 million.

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As of December 31, 2025, we have sold 360,554 shares of common stock under the Amended Sales Agreement at an average per share price 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 us.

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

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

Funding Requirements

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We expect to continue to incur operating losses in the near term.

In the short-term, we expect increases in cost of revenue as a result of costs associated with the addition of the T-Cell Biomarkers and RA Sub-Profile Biomarkers to our AVISE® CTD test.

In the short-term, we expect increases in cost of revenue as a result of costs associated with the addition of the T-Cell Biomarkers and RA Sub-Profile Biomarkers to our AVISE® CTD test in 2025.

We also anticipate increases in our selling, general and administrative expenses due to increased headcount.

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The following table summarizes our cash flows for the periods indicated:

Three Months Ended March 31,

Six Months Ended June 30,

(in thousands)

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Cash Flows from Operating Activities

Net cash used in operating activities for the three months ended March 31, 2026 was $10.4 million, primarily resulting from (i) our net loss of $4.0 million adjusted for non-cash charges of $1.3 million primarily related to change in fair value of warrant liability, stock-based compensation, depreciation and amortization, non-cash lease expense and non-cash interest and (ii) changes in our net operating assets of $7.8 million primarily related to net increases in accounts receivable and prepaid expenses and other current assets, partially offset by net decreases in accrued and other current liabilities and operating lease liabilities.

Net cash used in operating activities for the three months ended March 31, 2025 was $10.7 million, primarily resulting from (i) our net loss of $3.8 million adjusted for non-cash charges of $1.2 million primarily related to stock-based compensation, depreciation, amortization, non-cash lease expense and non-cash interest, and (ii) changes in our net operating assets of $8.1 million primarily related to net increases in accounts receivable and net decreases in accrued and other current liabilities and operating lease liabilities, partially offset by net increases in accounts payable.

Net cash used in operating activities for the six months ended June 30, 2026 was $6.4 million, primarily resulting from (i) our net loss of $7.2 million adjusted for non-cash charges of $3.9 million primarily related to change in fair value of warrant liability, stock-based compensation, depreciation and amortization, non-cash lease expense and non-cash interest and (ii) changes in our net operating assets of $3.2 million primarily related to net increases in accounts receivable, prepaid expenses and other current assets, and net decreases in accrued and other current liabilities and operating lease liabilities, partially offset by net increases in deferred revenue and accounts payable, and net decreases in other assets.

Net cash used in operating activities for the six months ended June 30, 2025 was $13.6 million, primarily resulting from (i) our net loss of $8.2 million adjusted for non-cash charges of $3.9 million primarily related to stock-based compensation, depreciation, amortization, change in fair value of warrant liability, loss on extinguishment of debt, bad debt expense, non-cash lease expense and non-cash interest and (ii) changes in our net operating assets of $9.2 million primarily related to net increases in accounts receivable and net decreases in accrued and other current liabilities and accounts payable, partially offset by net decreases in prepaid expenses and other current assets.

Cash Flows from Investing Activities

Net cash used in investing activities for the three months ended March 31, 2026 and 2025 was $0.2 million and $0.1 million, respectively, due to net purchases of property and equipment.

Net cash used in investing activities for the six months ended June 30, 2026 and 2025 was $0.8 million and $0.3 million, respectively, due to net purchases of property and equipment.

Cash Flows from Financing Activities

Net cash used in financing activities for the three months ended March 31, 2026 was $0.1 million, primarily resulting from payments on finance lease and notes payable obligations, partially offset by proceeds from ESPP purchases.

Net cash used in financing activities for the three months ended March 31, 2025 was $0.1 million, primarily resulting from payments on finance lease and notes payable obligations, partially offset by proceeds from ESPP purchases.

Net cash used in financing activities for the six months ended June 30, 2026 was $0.4 million, primarily resulting from payments on finance lease and notes payable obligations, partially offset by proceeds from ESPP purchases.

Net cash provided by financing activities for the six months ended June 30, 2025 was $21.9 million, primarily resulting from $23.7 million in proceeds from the issuance of debt and warrants, net of discounts, $18.8 million in proceeds from common stock issued, net of issuance costs and $0.2 million in proceeds from common stock issued under the ESPP, partially offset by a $19.7 million payment to early extinguish debt, $0.7 million in payments of debt issuance costs, $0.3 million in principal payments on notes payable obligations, and $0.1 million in principal payments on finance lease obligations.

Critical Accounting Estimates

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For a description of our critical accounting estimates, please see the section entitled " Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Estimates " contained in our 2025 Annual Report.

There have been no significant changes in our critical accounting policies and estimates during the three months ended March 31, 2026 as compared to the critical accounting policies and estimates disclosed in the Management’s Discussion and Analysis of Financial Condition and Operations included in our 2025 Annual Report.

There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2026 as compared to the critical accounting policies and estimates disclosed in the Management’s Discussion and Analysis of Financial Condition and Operations included in our 2025 Annual Report.

Recent Accounting Pronouncements

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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 2. Management’s Discussion and Analysis