oabi-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________________________________________

FORM 10-Q

________________________________________________________________________________________

☒

Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 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: 001-40720

OMNIAB, INC.

(Exact name of registrant as specified in its charter)

Delaware

98-1584818

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

5980 Horton Street, Suite 600

Emeryville

94608

(Address of principal executive offices)

(Zip Code)

(510) 250-7800

(Registrant's Telephone Number, Including Area Code)

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


Title of each class	Trading Symbol	Name of Each Exchange on Which Registered
Common stock, $0.0001 par value per share	OABI	The Nasdaq Global Market
Warrants to purchase common stock	OABIW	The Nasdaq Capital 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 ☒ No ☐

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 ☒ No ☐

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 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. ☐

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

As of April 30, 2026, the registrant had 144,972,579 shares of common stock outstanding.

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PART I. FINANCIAL INFORMATION
	ITEM 1. Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Loss	5
	Condensed Consolidated Statements of Stockholders' Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
	ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	23
	ITEM 3. Quantitative and Qualitative Disclosures about Market Risk	29
	ITEM 4. Controls and Procedures	29
PART II. OTHER INFORMATION
	ITEM 1. Legal Proceedings	31
	ITEM 1A. Risk Factors	31
	ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	31
	ITEM 3. Defaults Upon Senior Securities	31
	ITEM 4. Mine Safety Disclosures	31
	ITEM 5. Other Information	31
	ITEM 6. Exhibits	32
	SIGNATURES	33

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Part I – Financial Information

Item 1. Financial Statements

OMNIAB, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)


	March 31, 2026		December 31, 2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	29,046	$	25,524
Short-term investments	20,026		28,501
Accounts receivable, net	12,639		7,390
Prepaid expenses and other current assets	3,414		3,926
Total current assets	65,125		65,341
Intangible assets, net	119,121		125,149
Goodwill	83,979		83,979
Property and equipment, net	9,021		9,428
Operating lease right-of-use assets	15,049		15,545
Restricted cash	560		560
Other long-term assets	795		912
Total assets	$	293,650	$	300,914
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,652	$	1,879
Accrued expenses and other current liabilities	4,031		6,291
Current contingent liabilities	1,002		1,044
Current deferred revenue	2,941		3,161
Current operating lease liabilities	3,940		3,879
Total current liabilities	13,566		16,254
Long-term contingent liabilities	37		315
Deferred income taxes, net	1,227		785
Long-term operating lease liabilities	15,730		16,455
Long-term deferred revenue	369		—
Other long-term liabilities	75		78
Total liabilities	31,004		33,887
Stockholders' equity:
Preferred stock, $0.0001 par value; 100,000,000 shares authorized at March 31, 2026 and December 31, 2025; no shares issued and outstanding at March 31, 2026 and December 31, 2025	—		—
Common stock, $0.0001 par value; 1,000,000,000 shares authorized at March 31, 2026 and December 31, 2025; 144,783,813 and 144,308,383 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively	14		14
Additional paid-in capital	436,520		433,180
Accumulated other comprehensive income (loss)	(2)		12
Accumulated deficit	(173,886)		(166,179)
Total stockholders’ equity	262,646		267,027
Total liabilities and stockholders’ equity	$	293,650	$	300,914

See accompanying notes to unaudited condensed consolidated financial statements.

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OMNIAB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share data)


	Three Months Ended March 31,
	2026		2025
Revenue:
License and milestone revenue	$	12,025	$	2,021
Service revenue	2,107		1,903
xPloration revenue	54		42
Royalty revenue	241		188
Total revenue	14,427		4,154
Costs and operating expenses:
Cost of xPloration revenue	15		3
Research and development	9,640		12,602
General and administrative	6,619		7,915
Amortization of intangibles	6,028		3,228
Other operating income, net	(46)		(750)
Total costs and operating expenses	22,256		22,998
Loss from operations	(7,829)		(18,844)
Other income (expense), net:
Interest income	487		537
Other income, net	77		1
Total other income, net	564		538
Loss before income taxes	(7,265)		(18,306)
Income tax (expense) benefit	(442)		106
Net loss	$	(7,707)	$	(18,200)

Net loss per share, basic and diluted	$	(0.06)	$	(0.17)

Weighted-average shares outstanding, basic and diluted	128,245		105,622

See accompanying notes to unaudited condensed consolidated financial statements.

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OMNIAB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(in thousands)


	Three Months Ended March 31,
	2026		2025
Net loss	$	(7,707)	$	(18,200)
Unrealized net loss on available-for-sale securities	(14)		(19)
Comprehensive loss	$	(7,721)	$	(18,219)

See accompanying notes to unaudited condensed consolidated financial statements.

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OMNIAB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(in thousands, except share data)


	Common Stock			Additional paid-in capital		Accumulated other comprehensive income (loss)		Accumulated deficit		Total stockholders’ equity
	Shares	Amount
Balance at January 1, 2026	144,308,383	$	14	$	433,180	$	12	$	(166,179)	$	267,027
Net loss	—	—		—		—		(7,707)		(7,707)
Share-based compensation	—	—		3,340		—		—		3,340
Issuance of common stock under stock compensation plans	475,430	—		—		—		—		—
Unrealized net loss on available-for-sale securities	—	—		—		(14)		—		(14)
Balance at March 31, 2026	144,783,813	$	14	$	436,520	$	(2)	$	(173,886)	$	262,646

Balance at January 1, 2025	121,599,488	$	12	$	388,979	$	27	$	(101,400)	$	287,618
Net loss	—	—		—		—		(18,200)		(18,200)
Share-based compensation	—	—		4,144		—		—		4,144
Issuance of common stock under stock compensation plans	535,453	—		44		—		—		44
Unrealized net loss on available-for-sale securities	—	—		—		(19)		—		(19)
ATM facility issuance costs	—	—		(71)		—		—		(71)
Balance at March 31, 2025	122,134,941	$	12	$	393,096	$	8	$	(119,600)	$	273,516

See accompanying notes to unaudited condensed consolidated financial statements.

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OMNIAB, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	Three Months Ended March 31,
	2026		2025
Operating activities:
Net loss	$	(7,707)	$	(18,200)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment	606		966
Amortization of intangible assets	6,028		3,228
Amortization of operating lease right-of-use assets	580		549
Share-based compensation	3,340		4,144
Amortization of discounts on short-term investments, net	(199)		(239)
Deferred income taxes, net	442		(106)
Change in estimated fair value of contingent liabilities	(320)		(834)
Other	57		22
Changes in operating assets and liabilities, net:
Accounts receivable, net	(4,922)		(470)
Prepaid expenses and other current assets	512		(73)
Other long-term assets	117		258
Accounts payable, accrued expenses, and other liabilities	(2,522)		(2,968)
Operating lease liabilities	(748)		(685)
Deferred revenue	(178)		(1,464)
Net cash used in operating activities	(4,914)		(15,872)
Investing activities:
Purchases of short-term investments	(9,397)		(10,259)
Proceeds from the maturity of short-term investments	18,000		9,500
Purchases of property and equipment	(167)		(209)
Proceeds from sale of short-term investments	—		90
Net cash provided by (used in) investing activities	8,436		(878)
Financing activities:
Proceeds from issuance of common stock from stock plans	—		44
Net cash provided by financing activities	—		44
Net change in cash, cash equivalents and restricted cash	3,522		(16,706)
Cash, cash equivalents and restricted cash at beginning of period	26,084		28,158
Cash, cash equivalents and restricted cash at end of period	$	29,606	$	11,452
Supplemental cash flow information:
Deferred revenue recorded in accounts receivable	$	327	$	736

See accompanying notes to unaudited condensed consolidated financial statements.

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OMNIAB, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. Organization and Basis of Presentation

Description of Business

OmniAb, Inc. (“OmniAb” or the “Company”, formerly known as Avista Public Acquisition Corp. II (“APAC”)) is a biotechnology company that licenses cutting-edge discovery research technology to the pharmaceutical and biotech industries and academic institutions to enable the discovery of next-generation therapeutics. The Company’s technology platform creates and screens diverse antibody repertoires and is designed to quickly identify optimal antibodies and other target-binding proteins for its partners’ drug development efforts. At the heart of the OmniAb platform is something the Company calls Biological Intelligence™, which powers the immune systems of its proprietary, engineered transgenic animals to create optimized antibody candidates for human therapeutics. The Company primarily derives revenue from license fees for technology access, milestones from partnered programs and service revenue from research programs.

Business Combination

On November 1, 2022 (the “Closing Date”), the Company, Ligand Pharmaceuticals Incorporated, a Delaware corporation (“Ligand”), OmniAb Operations, Inc., a Delaware corporation and wholly-owned subsidiary of Ligand (“Legacy OmniAb”, formerly known as OmniAb, Inc.), and Orwell Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of APAC (“Merger Sub”), consummated the transactions contemplated by the Agreement and Plan of Merger (the “Merger Agreement”), dated as of March 23, 2022 (the “Business Combination”).

Basis of Presentation

The Company’s accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. GAAP as included in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”). The financial information for the three months ended March 31, 2026 and 2025, is unaudited but includes all normal and recurring adjustments unless indicated otherwise, which the Company considered necessary for fair presentation of its condensed consolidated statements of operations and comprehensive loss. Certain prior period amounts in the condensed consolidated financial statements have been reclassified to conform to the current period presentation.

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and accounts within the Company have been eliminated.

Liquidity and Capital Resources

The Company expects to continue to incur losses as it invests in research and development activities to improve its technology platform, market and sell its technologies to existing and new partners, add operational, financial and management information systems and personnel to support its operations and incur ongoing costs associated with operating as a public company. The Company’s ability to continue its operations is dependent upon its ability to generate cash flows from operations and potentially obtain additional capital in the future. The Company believes its existing cash, cash equivalents and short-term investments are sufficient to support operations through at least the next 12 months from the date of issuance of these financial statements.

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

Emerging Growth Company

OmniAb qualifies as an emerging growth company as defined in Section 2(a) of the Securities Act of 1933, as amended, (“Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”).

Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration

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statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. OmniAb has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, OmniAb, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of OmniAb’s financial statements with another public company, which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period, difficult because of the potential differences in accounting standards used.

2. Summary of Significant Accounting Policies

Significant Accounting Policies

The Company’s significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC and have not materially changed during the three months ended March 31, 2026. The Company believes that the disclosures provided here are adequate to make the information presented not misleading when these unaudited condensed consolidated financial statements are read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K.

Use of Estimates

The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the accompanying notes. Actual results may differ from those estimates.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less when purchased. Cash and cash equivalents generally consist of bank deposits, money market funds as well as U.S. government and agency securities.

The following table provides a reconciliation of the components of cash, cash equivalents and restricted cash reported in the condensed consolidated balance sheets to the total of the amount presented in the condensed consolidated statements of cash flows:


(in thousands)	March 31, 2026		December 31, 2025
Cash and cash equivalents	$	29,046	$	25,524
Restricted cash	560		560
Total cash, cash equivalents and restricted cash presented in the condensed consolidated statements of cash flows	$	29,606	$	26,084

Restricted cash relates to deposits for the Company’s property leases. The restriction will lapse when the related leases expire.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed below, the Company believes that the impact of recently issued standards are either not applicable to the Company or will not have a material impact on its consolidated financial statements upon adoption.

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The following table provides a brief description of recently issued accounting standards:

Standard

Description

Effective Date

Effect on the Financial Statements or Other Significant Matters

ASU 2024-03, Income Statement (Topic 220) - Expense Disaggregation Disclosures

The amendments in this ASU require a public business entity to disclose specific information about certain costs and expenses in the notes to its financial statements for interim and annual reporting periods. The objective of the disclosure requirements is to provide disaggregated information about a public business entity's expenses to help investors (a) better understand the entity's performance, (b) better assess the entity's prospects for future cash flows, and (c) compare an entity's performance over time and with that of other entities.

Effective in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements and disclosures.

3. Fair Value Measurement

The Company measures its financial assets and liabilities at fair value, which is defined as the exit price, or the amount that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company uses the following three-level valuation hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs to value its financial assets and liabilities:

•Level 1 — Observable inputs such as unadjusted quoted prices in active markets for identical instruments.

•Level 2 — Quoted prices for similar instruments in active markets or inputs that are observable for the asset or liability, either directly or indirectly.

•Level 3 — Significant unobservable inputs based on the Company’s assumptions.

Financial Instruments Measured on a Recurring Basis

The following tables provide a summary of the assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025:


	Fair Value Measurements as of March 31, 2026
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	22,941	$	—	$	—	$	22,941
Total cash equivalents	$	22,941	$	—	$	—	$	22,941

Short-term investments:
Government securities	$	16,049	$	—	$	—	$	16,049
Corporate debt securities	—		2,996		—		2,996
Commercial paper	—		981		—		981
Total short-term investments	$	16,049	$	3,977	$	—	$	20,026

Liabilities:
Current contingent liabilities	$	—	$	—	$	1,002	$	1,002
Long-term contingent liabilities	—		—		37		37
Total contingent liabilities	$	—	$	—	$	1,039	$	1,039

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	Fair Value Measurements as of December 31, 2025
(in thousands)	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	20,080	$	—	$	—	$	20,080
Total cash equivalents	$	20,080	$	—	$	—	$	20,080

Short-term investments:
Government securities	$	28,501	$	—	$	—	$	28,501
Total short-term investments	$	28,501	$	—	$	—	$	28,501

Liabilities:
Current contingent liabilities	$	—	$	—	$	1,044	$	1,044
Long-term contingent liabilities	—		—		315		315
Total contingent liabilities	$	—	$	—	$	1,359	$	1,359

The carrying amounts reported in the Company’s condensed consolidated balance sheets for accounts receivable, other assets, accounts payable and accrued expenses and other current liabilities approximate fair value due to their relatively short periods to maturity.

Available-for-Sale Securities

The Company obtains the fair value of its Level 2 available-for-sale securities from third-party pricing services. The pricing services utilize industry standard valuation models whereby all significant inputs, including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, bids, offers, or other market-related data, are observable. The Company validates the prices provided by the third-party pricing services by reviewing their pricing methods and obtaining market values from other pricing sources. The Company did not adjust or override any fair value measurements provided by these pricing services as of March 31, 2026. There were no level 2 available-for-sale securities as of December 31, 2025. The Company has not transferred any investment securities between classification levels.

Contingent Liabilities

Contingent liabilities are measured at fair value each reporting period by using a probability weighted income approach. Changes in the fair values of contingent liabilities are recognized in “Other operating income, net” in the condensed consolidated statements of operations and in the operating section of the statements of cash flows. Payments of contingent liabilities are disclosed in the financing section of the statements of cash flows.

A reconciliation of the Level 3 financial instruments as of March 31, 2026 and December 31, 2025 is as follows:


(in thousands)	Icagen
Balance as of January 1, 2025	$	1,484
Payments of contingent liabilities	(450)
Fair value adjustments to contingent liabilities	325
Balance as of December 31, 2025	$	1,359
Fair value adjustments to contingent liabilities	(320)
Balance as of March 31, 2026	$	1,039

Contingent liabilities are classified as Level 3 liabilities as their valuation requires substantial judgment and estimation of factors that are not currently observable in the market. These subjective estimates include but are not limited to assumptions involving the achievement probability of certain developmental and commercialization milestones, discount rates, and projected years of payments. If different assumptions were used for the various inputs to the valuation approaches, the estimated fair value could be materially higher or lower than the fair value determined.

4. Short-Term Investments

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The Company classified short-term investments as available-for-sale securities, as the sale of such investments may be required prior to maturity to implement management strategies. The following tables summarize short-term investments as of March 31, 2026 and December 31, 2025:


	As of March 31, 2026
			Unrealized
(in thousands)	Amortized Cost		Gains		Losses		Estimated Fair Value
Government securities	$	16,050	$	—	$	(1)	$	16,049
Corporate debt securities	2,997		—		(1)		2,996
Commercial paper	981		—		—		981
Total short-term investments	$	20,028	$	—	$	(2)	$	20,026


	As of December 31, 2025
			Unrealized
(in thousands)	Amortized Cost		Gains		Losses		Estimated Fair Value
Government securities	$	28,489	$	12	$	—	$	28,501
Total short-term investments	$	28,489	$	12	$	—	$	28,501

The Company classified all investments with maturity dates beyond three months at the date of purchase as short-term investments in the condensed consolidated balance sheets based upon its ability and intent to use the investments to satisfy the liquidity needs of current operations. The following table summarizes available-for-sale investments by maturity as of March 31, 2026:


(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	20,028	$	20,026
Due after one year	—		—
Total short-term investments	$	20,028	$	20,026

The following table summarizes the Company’s available-for-sale investments’ gross unrealized losses and fair value aggregated by investment category and the length of time that individual securities have been in a continuous loss position, as of March 31, 2026.


	As of March 31, 2026
	Less than 12 months					More than 12 months					Total
(in thousands)	Count	Fair Value		Unrealized Losses		Count	Fair Value		Unrealized Losses		Count	Fair Value		Unrealized Losses
Government securities	7	$	12,849	$	(1)	—	$	—	$	—	7	$	12,849	$	(1)
Corporate debt securities	4	1,981		(1)		—	—		—		4	1,981		(1)
	11	$	14,830	$	(2)	—	$	—	$	—	11	$	14,830	$	(2)

The Company had certain available-for-sale debt securities in an unrealized loss position without an allowance for credit loss as of March 31, 2026. Unrealized losses on these debt securities have not been recognized into income because (1) the issuers have high credit quality, (2) management does not intend to sell and it is likely that management will not be required to sell these securities prior to their anticipated recovery and (3) the decline in fair value is largely due to market conditions and/or changes in interest rates. The issuers continue to make timely interest payments on the securities, and the fair value is expected to recover as the bonds approach maturity.

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5. Balance Sheet Account Details

Accounts Receivable, Unbilled Receivables and Deferred Revenue

Unbilled receivables were $3.5 million and $0.8 million as of March 31, 2026 and December 31, 2025, respectively. Current deferred revenue was $2.9 million and $3.2 million as of March 31, 2026 and December 31, 2025, respectively, and long-term deferred revenue was $0.4 million and nil as of March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, the amount recognized as revenue that was previously deferred at December 31, 2025 was $1.2 million. During the three months ended March 31, 2025, and the amount recognized as revenue that was previously deferred at December 31, 2024 was $1.7 million.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of March 31, 2026 and December 31, 2025:


(in thousands)	March 31, 2026		December 31, 2025
Prepaid expenses	$	2,022	$	1,991
xPloration related inventory	920		823
Other current assets	472		1,112
Total prepaid expenses and other current assets	$	3,414	$	3,926

Property and Equipment, Net

Property and equipment, net, consisted of the following as of March 31, 2026 and December 31, 2025:


(in thousands)	March 31, 2026		December 31, 2025
Leasehold improvements	$	17,745	$	17,745
Lab and office equipment	10,388		10,178
Computer hardware and software	791		791
Construction in progress	35		46
Property and equipment, at cost	28,959		28,760
Less accumulated depreciation	(19,938)		(19,332)
Total property and equipment, net	$	9,021	$	9,428

Depreciation expense, which is included in operating expenses, was $0.6 million during the three months ended March 31, 2026, respectively, and $1.0 million during the three months ended March 31, 2025, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following as of March 31, 2026 and December 31, 2025:


(in thousands)	March 31, 2026		December 31, 2025
Compensation	$	3,219	$	5,788
Professional service fees	284		262
Royalties owed to third parties	320		67
Other	208		174
Total accrued expenses and other current liabilities	$	4,031	$	6,291

6. Goodwill and Intangible Assets, Net

Goodwill and intangible assets, net consisted of the following as of March 31, 2026 and December 31, 2025:

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(in thousands)	March 31, 2026		December 31, 2025
Goodwill	$	83,979	$	83,979
Finite-lived intangible assets
Completed technology	233,158		233,158
Less: Accumulated amortization	(114,037)		(110,984)
Customer relationships	11,100		11,100
Less: Accumulated amortization	(11,100)		(8,125)
Intangible assets, net	$	119,121	$	125,149
Total goodwill and other identifiable intangible assets, net	$	203,100	$	209,128

Goodwill

There were no changes in the carrying amount of goodwill during the three months ended March 31, 2026 and 2025.

Intangible Assets

Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful life of the asset of up to 20 years and is reflected within “Amortization of intangibles” in the condensed consolidated statements of operations. Amortization expense of $6.0 million and $3.2 million was recognized during the three months ended March 31, 2026 and 2025 respectively.

During the three months ended March 31, 2026, the Company identified a triggering event over its customer relationship intangible asset within the legacy small molecule ion channel asset group. The triggering event resulted from the discontinuation of certain legacy small molecule ion channel programs, which resulted in the Company having no expected future cash flows from the customer relationship. The Company did not control the timing or outcome of the decision to discontinue the legacy small molecule programs. As a result of this triggering event, the Company performed an impairment assessment under ASC 360 and recorded an impairment charge of $2.9 million during the first quarter of 2026 which fully impaired the customer relationship intangible asset. The impairment charge was recorded as “Amortization of intangibles” in the condensed consolidated statements of operations. For the three months ended March 31, 2025, there was no impairment of finite-lived intangible assets.

The remaining weighted-average useful life of finite-lived intangible assets is 10.0 years. At March 31, 2026, future amortization expense on intangible assets is estimated to be as follows (in thousands):


Dates	Amount
Remaining nine months ending December 31, 2026	$	9,159
2027	12,212
2028	12,212

SEC Form 10-Q filed by OmniAb Inc.