ctnm-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________________________________________________

FORM 10-Q

_______________________________________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number: 001-42001

_______________________________________________________________________

Contineum Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

_______________________________________________________________________


Delaware			27-1467257
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

3565 General Atomics Court, Suite 200 San Diego, California			92121
(Address of principal executive offices)			(Zip Code)

_______________________________________________________________________

(858) 333-5280

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

_______________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.001 par value per share

CTNM

The Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of July 24, 2026, the registrant had 37,621,132 total shares outstanding, of which there were 32,958,632 shares of Class A common stock, $0.001 par value per share, outstanding and 4,662,500 shares of Class B common stock, $0.001 par value per share, outstanding.

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business, operations and financial performance and condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that are in some cases beyond our control and may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these terms or other similar expressions are intended to identify forward looking statements. Forward-looking statements contained in this report include, but are not limited to, statements about:

•the likelihood of our clinical trials demonstrating the safety and efficacy of our drug candidates;

•the timing and progress of our current clinical trials, the expected results of these clinical trials and the timing of initiation of our planned and future clinical trials;

•our plans relating to the clinical development of our current and future drug candidates, including the size, number and disease indications to be evaluated;

•Janssen Pharmaceutica NV, a Johnson & Johnson (“J&J”) company’s, plans related to the clinical development of PIPE-307;

•our clinical translational approach, and our ability to identify and develop drug candidates that can potentially treat inflammatory and fibrotic diseases by targeting biological pathways associated with specific clinical impairment to alter the course of disease;

•the size of the market opportunities for our drug candidates;

•the rate and degree of market acceptance and clinical utility of our drug candidates;

•our plans relating to commercializing our drug candidates, if approved;

•the success of competing therapies and technologies that are or may become available;

•the beneficial characteristics, safety, efficacy, therapeutic effects and potential advantages of our drug candidates;

•the timing or likelihood of regulatory filings and approval for our drug candidates;

•our ability to obtain and maintain regulatory approval of our drug candidates and our drug candidates to meet existing or future regulatory standards;

•our plans relating to the further development and manufacturing of our drug candidates, including additional indications for which we may pursue;

•our ability to successfully identify and complete transactions to in-license or otherwise acquire additional drug candidates, technologies, products or businesses;

•our ability to attract and to enter into commercial arrangements with third parties who have development, regulatory, manufacturing and commercialization expertise;

•our plans and ability to obtain or protect intellectual property rights, including extensions of existing patent terms where available, as well as our ability to secure and maintain intellectual property regulatory rights and regulatory protections;

•our ability to retain our senior management;

•the need to hire additional personnel and our ability to attract and retain such personnel;

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•the accuracy of our estimates regarding our operating runway, expenses, capital requirements and needs for additional financing;

•the sufficiency of our existing capital resources to fund our future operating expenses, development plans and capital expenditure requirements;

•the period during which we expect we will qualify as an emerging growth company under the Jumpstart Our Business Startups Act of 2012, as amended (the “JOBS Act”) or a smaller reporting company;

•our anticipated use of our existing cash, cash equivalents and marketable securities; and

•other risks and uncertainties, including those described under Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q.

Any forward-looking statements in this Quarterly Report on Form 10-Q reflect our current views with respect to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q. Given these uncertainties, you should not place undue reliance on these forward-looking statements or rely on forward-looking statements as predictions of future events. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Unless the context otherwise indicates, references in this Quarterly Report on Form 10-Q to the terms, “Contineum,” the “Company,” “we,” “our,” and “us” refer to Contineum Therapeutics, Inc. and references to our “common stock” refer to our voting Class A common stock.

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CONTINEUM THERAPEUTICS, INC.

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		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Condensed Financial Statements (Unaudited)	1
	Condensed Balance Sheets	1
	Condensed Statements of Operations and Comprehensive Loss	2
	Condensed Statements of Stockholders’ Equity	3
	Condensed Statements of Cash Flows	4
	Notes to Unaudited Condensed Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.	Defaults Upon Senior Securities	29
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	31
Signatures		32

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

CONTINEUM THERAPEUTICS, INC.

CONDENSED BALANCE SHEETS

(unaudited)

(in thousands, except share and par value data)


	June 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	14,711	$	75,603
Marketable securities	221,840		187,293
Prepaid expenses and other current assets	6,029		5,021
Total current assets	242,580		267,917
Property and equipment, net	929		830
Other long-term assets	364		256
Operating lease right-of-use assets	6,494		7,639
Total assets	$	250,367	$	276,642
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	505	$	1,016
Accrued expenses	3,628		6,387
Current portion of operating lease liabilities	2,393		2,341
Total current liabilities	6,526		9,744
Operating lease liabilities, net of current portion	4,181		5,909
Total liabilities	10,707		15,653
Commitments and contingencies (Note 8)
Stockholders' equity:
Class A common stock, $0.001 par value; authorized shares—200,000,000 at June 30, 2026 and December 31, 2025; issued and outstanding shares—32,950,909 and 31,236,787 at June 30, 2026 and December 31, 2025, respectively.	33		31
Class B common stock, $0.001 par value; authorized shares—20,000,000 at June 30, 2026 and December 31, 2025; issued and outstanding shares—4,662,500 and 6,083,338 at June 30, 2026 and December 31, 2025, respectively.	5		6
Preferred stock, $0.001 par value; authorized shares—10,000,000 at June 30, 2026 and December 31, 2025; no shares issued or outstanding at June 30, 2026 and December 31, 2025.	—		—
Additional paid-in-capital	447,185		438,072
Accumulated deficit	(206,990)		(177,380)
Accumulated other comprehensive income (loss)	(573)		260
Total stockholders' equity	239,660		260,989
Total liabilities and stockholders' equity	$	250,367	$	276,642

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

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CONTINEUM THERAPEUTICS, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(unaudited)

(in thousands, except share and per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Operating expenses:
Research and development	$	12,702	$	14,063	$	24,349	$	27,775
General and administrative	4,726		3,839		9,983		8,237
Total operating expenses	17,428		17,902		34,332		36,012
Loss from operations	(17,428)		(17,902)		(34,332)		(36,012)
Other income (expense):
Interest income	2,342		2,029		4,847		4,279
Other expense, net	(68)		(167)		(125)		(297)
Total other income, net	2,274		1,862		4,722		3,982
Net loss	$	(15,154)	$	(16,040)	$	(29,610)	$	(32,030)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities	(320)		(23)		(833)		76
Comprehensive loss	$	(15,474)	$	(16,063)	$	(30,443)	$	(31,954)
Net loss per share, basic and diluted (a)	$	(0.40)	$	(0.62)	$	(0.79)	$	(1.24)
Weighted-average shares of common stock outstanding, basic and diluted	37,467,840		25,895,996		37,403,789		25,882,540

_____________

(a) Basic and diluted per share amounts are the same for Class A and Class B shares.

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

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CONTINEUM THERAPEUTICS, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)

(in thousands, except share data)


	Class A and Class B Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2025	37,320,125	$	37	$	438,072	$	260	$	(177,380)	$	260,989
Exercise of stock options	66,252	—		198		—		—		198
Stock-based compensation	—	—		3,823		—		—		3,823
Net loss	—	—		—		—		(14,456)		(14,456)
Unrealized loss on marketable securities	—	—		—		(513)		—		(513)
Balance at March 31, 2026	37,386,377	$	37	$	442,093	$	(253)	$	(191,836)	$	250,041
Exercise of stock options	106,275	—		473		—		—		473
Shares purchased through employee stock purchase plan	120,757	1		779		—		—		780
Stock-based compensation	—	—		3,840		—		—		3,840
Net loss	—	—		—		—		(15,154)		(15,154)
Unrealized loss on marketable securities	—	—		—		(320)		—		(320)
Balance at June 30, 2026	37,613,409	$	38	$	447,185	$	(573)	$	(206,990)	$	239,660


	Class A and Class B Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount
Balance at December 31, 2024	25,854,549	$	26	$	315,371	$	71	$	(117,402)	$	198,066
Exercise of stock options	17,000	—		24		—		—		24
Stock-based compensation	–	—		2,569		—		—		2,569
Net loss	–	—		—		—		(15,990)		(15,990)
Unrealized gain on marketable securities	–	—		—		99		—		99
Balance at March 31, 2025	25,871,549	$	26	$	317,964	$	170	$	(133,392)	$	184,768
Shares purchased through employee stock purchase plan	48,346	—		267		—		—		267
Stock-based compensation	–	—		2,418		—		—		2,418
Net loss	–	—		—		—		(16,040)		(16,040)
Unrealized loss on marketable securities	–	—		—		(23)		—		(23)
Balance at June 30, 2025	25,919,895	$	26	$	320,649	$	147	$	(149,432)	$	171,390

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

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CONTINEUM THERAPEUTICS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)


	Six Months Ended June 30,
	2026		2025
Operating activities
Net loss	$	(29,610)	$	(32,030)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	217		157
Noncash operating lease expense	1,145		460
Stock-based compensation	7,663		4,987
Accretion of premiums/discounts on marketable securities, net	(1,246)		(692)
Loss on disposal of property and equipment	2		67
Gain on marketable securities	—		(6)
Changes in operating assets and liabilities
Prepaid expenses and other current assets	(1,005)		273
Other long-term assets	—		(6)
Accounts payable	(500)		190
Accrued expenses	(2,757)		(2,964)
Operating lease liabilities	(1,676)		(509)
Net cash used in operating activities	(27,767)		(30,073)
Investing activities
Purchase of property and equipment	(318)		(91)
Purchases of marketable securities	(142,902)		(59,128)
Sales and maturities of marketable securities	108,766		88,018
Net cash provided by (used in) investing activities	(34,454)		28,799
Financing activities
Payments of deferred offering costs	(122)		(176)
Proceeds from exercise of stock options	671		24
Proceeds from employee stock purchase plan	780		267
Net cash provided by financing activities	1,329		115
Net decrease in cash and cash equivalents	(60,892)		(1,159)
Cash and cash equivalents at beginning of period	75,603		21,943
Cash and cash equivalents at end of period	$	14,711	$	20,784

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

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CONTINEUM THERAPEUTICS, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

1. Organization and Basis of Presentation

Organization and Nature of Operations

Contineum Therapeutics, Inc. (the “Company”), is a clinical-stage biopharmaceutical company pioneering differentiated small molecule therapies for inflammatory and fibrotic diseases with significant unmet need. The Company was incorporated in the state of Delaware in 2009, and in November 2023 changed its name from Pipeline Therapeutics, Inc. to Contineum Therapeutics, Inc.

Liquidity and Capital Resources

Since its inception, the Company has devoted substantially all its resources to research and development activities, business planning, establishing and maintaining its intellectual property portfolio, hiring personnel, raising capital to support and expand such activities and providing general and administrative support for these operations. The Company incurred a net loss of $15.2 million and $29.6 million for the three and six months ended June 30, 2026, respectively. The Company had an accumulated deficit of $207.0 million as of June 30, 2026. From its inception through June 30, 2026, the Company has financed its operations primarily from the sale of equity securities and convertible equity securities, and a global license and development agreement (the “J&J License Agreement”) the Company entered in February 2023 with Janssen Pharmaceutica NV, a Johnson & Johnson company.

In May 2025, the Company entered into a Sales Agreement with Leerink Partners LLC (the “ATM Sales Agreement”) relating to the offer and sale of up to $75.0 million in shares of its Class A common stock, par value $0.001 per share (“Class A common stock”) in an “at-the-market” offering program (the “ATM Program”). In March 2026, the Company entered into Amendment No. 1 to the ATM Sales Agreement (the “ATM Amendment”) with Leerink Partners to increase the aggregate offering price of the shares of its Class A common stock that the Company may sell pursuant to the ATM Sales Agreement, as amended (the “Amended ATM Sales Agreement”). In connection with the ATM Amendment, the Company filed a prospectus supplement (the “ATM Prospectus Supplement”) for the offer and sale of up to $100.0 million in shares of its Class A common stock under the Amended ATM Sales Agreement, exclusive of amounts previously sold under the ATM Sales Agreement. The Company did not sell any shares of its Class A common stock under the Amended ATM Sales Agreement during the three and six months ended June 30, 2026.

In December 2025, the Company completed a follow-on public offering in which 8,097,570 shares of its Class A common stock were sold at a public offering price of $12.25 per share resulting in aggregate net proceeds of $93.0 million.

As of June 30, 2026, the Company had cash, cash equivalents and marketable securities of $236.6 million. Management believes the Company's existing cash, cash equivalents and marketable securities will be sufficient to support its operations for at least 12 months from the issuance date of these unaudited condensed financial statements.

As the Company continues to pursue its business plan, it expects to finance its operations through both public and private sales of equity, debt financings or other commercial arrangements, which could include income from collaborations, strategic partnerships or marketing, distribution, licensing or other strategic arrangements with third parties. However, there can be no assurance that any additional financing or strategic transactions will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that the Company does not obtain additional funding, it may need to delay, reduce or eliminate its product development or future commercialization efforts, which could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. Further, if the Company raises funds through licensing or other similar arrangements with third parties, it may be required to relinquish valuable rights to its technology, future revenue streams, research programs or drug candidates or may be required to grant licenses on terms that may not be favorable to it and/or may reduce the value of its common stock.

Unaudited Interim Condensed Financial Statements

The condensed balance sheet as of June 30, 2026, condensed statements of operations and comprehensive loss and condensed statements of stockholders’ equity for the three and six months ended June 30, 2026 and 2025, and condensed statements of cash flows for the six months ended June 30, 2026 and 2025, and related notes to condensed financial statements are unaudited. These unaudited interim condensed financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair statement of the Company’s financial position, results of

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operations and cash flows for the periods presented. The condensed results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year or for any other future annual or interim period. The condensed balance sheet as of December 31, 2025 included herein was derived from the audited financial statements as of that date. These interim unaudited condensed financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2025 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2026.

2. Summary of Significant Accounting Policies

During the six months ended June 30, 2026, there were no significant changes to the Company's significant accounting policies as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 5, 2026.

Basis of Presentation

The Company has prepared the accompanying condensed financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The financial statements are presented in U.S. dollars. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) promulgated by the Financial Accounting Standards Board (“FASB”).

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Accounting estimates and management judgments reflected in the financial statements include: the accrual of research and development expenses; the incremental borrowing rate used to recognize the right-of-use assets and lease liabilities; the fair value of common stock; and stock-based compensation. Although these estimates are based on the Company’s knowledge of current events and actions it may undertake in the future, actual results may materially differ from these estimates and assumptions.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). This standard requires a public entity to disaggregate certain income statement expenses. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its financial statements.

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). This standard clarifies the applicability of interim reporting guidance under U.S. GAAP, provides a comprehensive list of interim disclosure requirements within Topic 270, and introduces a disclosure principle requiring entities to provide information about events and changes occurring after the end of the most recent annual reporting period that have a material impact on the entity. The ASU does not change the fundamental nature of interim reporting or expand or reduce existing interim disclosure requirements. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027 for public business entities, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its interim financial reporting and related disclosures.

In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements (“ASU 2025-12”). This standard addresses suggestions received from stakeholders regarding the ASC and makes other incremental improvements to U.S. GAAP. The update represents changes to the Codification that clarify, correct errors in or make other improvements to a variety of topics that are intended to make it easier to understand and apply. ASU 2025-12 is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual periods, with early adoption permitted. Entities are required to apply the amendments to ASC 260 retrospectively. All other amendments may be applied prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statements and related disclosures.

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3. Cash Equivalents and Marketable Securities

The following table summarizes the amortized cost and fair value of the Company’s cash equivalents and marketable securities by major investment category (in thousands):


		June 30, 2026
				Unrealized
	Maturity in Years	Amortized Cost		Gains		Losses		Fair Value
Cash equivalents	Less than 1	$	12,564	$	—	$	(1)	$	12,563
U.S. Government agency securities	3 years or less	46,789		9		(175)		46,623
Certificate of deposit	Less than 1	983		—		—		983
Corporate debt securities	3 years or less	127,521		3		(398)		127,126
Commercial paper	Less than 1	36,931		—		(12)		36,919
Yankee debt	Less than 1	3,607		—		(4)		3,603
Asset-backed securities	2 years or less	6,581		6		(1)		6,586
Total		$	234,976	$	18	$	(591)	$	234,403


		December 31, 2025
				Unrealized
	Maturity in Years	Amortized Cost		Gains		Losses		Fair Value
U.S. Government agency securities	2 years or less	$	41,238	$	136	$	(1)	$	41,373
Certificate of deposit	Less than 1	3,009		4		—		3,013
Corporate debt securities	2 years or less	81,614		84		—		81,698
Commercial paper	Less than 1	48,448		7		(2)		48,453
Yankee debt	Less than 1	4,463		2		—		4,465
Asset-backed securities	3 years or less	8,261		30		—		8,291
Total		$	187,033	$	263	$	(3)	$	187,293

The Company regularly reviews the securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, current and expected future economic conditions. The Company has no requirement or intention to sell these securities before maturity or recovery of their amortized cost basis. As of June 30, 2026 and December 31, 2025, the Company did not record an allowance for credit loss related to its investment portfolio. As of June 30, 2026, 135 out of 202 of the Company’s cash equivalents and available-for-sale debt securities were in an aggregate gross unrealized loss position. The unrealized losses were broadly distributed across the portfolio and not concentrated in any one security. As of December 31, 2025, 7 out of 225 of the Company’s available-for-sale debt securities were in an aggregate gross unrealized loss position. As of June 30, 2026 and December 31, 2025, all of the Company’s available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded had been in a continuous unrealized loss position for less than 12 months. Based on the Company’s review of these investments as of June 30, 2026, the Company believes none of the unrealized loss positions were not other-than-temporary in nature.

The following tables summarize the Company’s cash equivalents and available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type (in thousands):

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	June 30, 2026
	Fair Value		Unrealized Losses
Cash equivalents	$	8,840	$	(1)
U.S. Government agency securities	29,258		(175)
Corporate debt securities	114,383		(398)
Commercial paper	36,919		(12)
Yankee debt	3,603		(4)
Asset-backed securities	3,350		(1)
Total	$	196,353	$	(591)


	December 31, 2025
	Fair Value		Unrealized Losses
U.S. Government agency securities	$	1,771	$	(1)
Commercial paper	25,104		(2)
Total	$	26,875	$	(3)

4. Fair Value Measurements

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2—Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3—Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).

Table of Contents

Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):


			Fair Value Measurements Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2026:
Assets:
Cash equivalents (1)	$	12,563	$	12,563	$	—	$	—
U.S. Government agency securities	46,623		46,623		—		—
Certificates of deposits	983		—		983		—
Corporate debt securities	127,126		—		127,126		—
Commercial paper	36,919		—		36,919		—
Yankee debt	3,603		—		3,603		—
Asset-backed securities	6,586		—		6,586		—
Total financial assets	$	234,403	$	59,186	$	175,217	$	—

December 31, 2025:
Assets:
Cash equivalents	$	75,051	$	75,051	$	—	$	—
U.S. Government agency securities	41,373		41,373		—		—
Certificates of deposits	3,013		—		3,013		—
Corporate debt securities	81,698		—		81,698		—
Commercial paper	48,453		—		48,453		—
Yankee debt	4,465		—		4,465		—
Asset-backed securities	8,291		—		8,291		—
Total financial assets	$	262,344	$	116,424	$	145,920	$	—

(1) Cash equivalents includes $12.2 million in short-term investments and $0.4 million in other cash equivalents.

The carrying amounts of the Company’s financial instruments, including cash, cash equivalents, prepaid and other current assets, accounts payable, and accrued liabilities, approximate fair value due to their short maturities. Included in cash and cash equivalents at June 30, 2026 and December 31, 2025 are money market funds with a carrying value and fair value of $3.3 million and $6.5 million, respectively, based upon a Level 1 fair value assessment.

5. Accrued Expenses

Accrued expenses consisted of the following (in thousands):


	June 30, 2026		December 31, 2025
Accrued compensation expenses	$	2,413	$	4,796
Accrued research and development expenses	939		1,195
Accrued professional and consulting expenses	98		342
Other accrued expenses	178		54
Total accrued expenses	$	3,628	$	6,387