PepGen Inc.
For the period ended Mar 31, 2026. Filed May 12, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 12, 2026
PEPG$2.47+6.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001193125-25-276001
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-12.
0001193125-26-219375
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 101 current paragraphs.
72 unchanged; 23 reworded; 5 added; 15 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Other Income (Expense), Net
Current report
General and administrative expenses remained flat from $5.9 million for the three months ended March 31, 2025, to $5.9 million for the three months ended March 31, 2026.
Current report
Other Income (Expense), Net
Current report
For the three months ended March 31, 2026, net cash provided by financing activities was $1.5 million resulting from proceeds from the sale of shares of common stock under the Sales Agreement.
Current report
For the three months ended March 31, 2025, there was no cash used in or provided by financing activities.
Removed paragraphs (15)
Previous report
Business Update
Previous report
We have also initiated research efforts for additional potential investigational drugs addressing other neuromuscular diseases and neurologic disorders. On May 28, 2025, we announced that based on the levels of dystrophin protein measured in the 10 mg/kg cohort of the CONNECT1-EDO51 study investigating our candidate, PGN-EDO51, in Duchenne muscular dystrophy, or DMD, for patients amenable to exon 51 skipping, we have decided to voluntarily discontinue development of PGN-EDO51. Additionally, all DMD-related research and development activities, including our research efforts relating to exons 44, 45 and 53, are being wound down.
Previous report
Corporate Reorganization
Previous report
We were initially formed as PepGen Limited on January 25, 2018, in the U.K. On November 9, 2020, PepGen Limited initiated a corporate reorganization, or the Reorganization. As part of the Reorganization, PepGen Limited formed PepGen, a Delaware corporation with nominal assets and liabilities, for the purpose of consummating the Reorganization. In connection with the Reorganization, the existing shareholders of PepGen Limited exchanged each of their classes of shares of PepGen Limited for the same number and class of common stock of PepGen on a one-to-one basis. The newly issued stock of PepGen had substantially identical rights to the exchanged shares of PepGen Limited. As a result of the exchange, PepGen became the sole shareholder of PepGen Limited. Upon the completion of the Reorganization on November 23, 2020, the historical financial statements of PepGen Limited became the historical financial statements of PepGen, as the Reorganization was deemed to be between entities under common control.
Previous report
After the Reorganization was completed, PepGen Limited began the process of transferring certain operations, including financial management functions, to PepGen pursuant to an intercompany services agreement, effective as of April 2021, and certain assets, including a novation of all intellectual property assets, pursuant to an asset transfer agreement, effective as of January 1, 2022. After the transfer of intellectual property and other assets from PepGen Limited to PepGen, there were limited operations through the end of 2022 at PepGen Limited. PepGen Limited was dissolved on December 10, 2024.
Previous report
General and administrative expenses decreased by $0.2 million from $5.4 million for the three months ended September 30, 2024, to $5.2 million for the three months ended September 30, 2025. The decrease was primarily driven by an decrease of $0.6 million in personnel-related costs, including a decrease of $0.4 million in stock-based compensation expense. That decrease is partially offset by a $0.4 million increase in consulting and legal expenses.
Previous report
Comparison of the Nine Months Ended September 30, 2025 and September 30, 2024
Previous report
Research and Development Expenses
Previous report
Research and development expenses decreased by $0.3 million from $57.5 million for the nine months ended September 30, 2024, to $57.2 million for the nine months ended September 30, 2025. This was attributable to a $3.9 million decrease in preclinical costs as our two lead programs had both advanced into clinical trials, prior to the discontinuation of our DMD program in late May 2025. Additionally, there was a $0.6 million decrease in facility and office related expenses, including depreciation, and a $0.2 million decrease in consulting expense. These decreases were partially offset by increased clinical trial costs of $2.3 million associated with the advancement of clinical development programs and charges taken during the second quarter of 2025 for estimated wind-down costs for the two clinical trials for PGN-EDO51. There was also a $1.1 million increase in personnel-related costs, and a $0.2 million increase in manufacturing costs related to the timing of manufacturing campaigns. There was also a $0.7 million increase in other research and development expenses related to the non-cash charge taken during the current year associated with the impairment of unused lab equipment.
Previous report
General and Administrative Expenses
Previous report
General and administrative expenses increased by $0.8 million from $15.9 million for the nine months ended September 30, 2024, to $16.7 million for the nine months ended September 30, 2025. The increase was primarily driven by an increase in consulting and legal expenses.
Previous report
Income Tax Expense
Previous report
We have no off-balance sheet arrangements that have a material current effect or that are reasonably likely to have a material future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.
Previous report
For the nine months ended September 30, 2025, net cash provided by financing activities was $108.2 million resulting from $108.1 million in proceeds from the 2025 Offering and $0.1 million of proceeds from the purchase of shares under employee equity plans, partially offset by $0.1 million in the payment of offering costs.
Previous report
For the nine months ended September 30, 2024, net cash provided by financing activities was $88.6 million resulting from $76.9 million in proceeds from the 2024 Offering, $9.9 million in proceeds from sales under the Sales Agreement, and $2.4 million from proceeds from the purchase of shares under employee equity plans, partially offset by $0.5 million in the payment of deferred offering costs.
Reworded paragraphs (23)
Previous wording
Our clinical development program for PGN-EDODM1 includes two studies, FREEDOM-DM1, or FREEDOM, a multinational, randomized, double-blind, placebo-controlled Phase 1 single ascending dose, or SAD, study, and FREEDOM2-DM1, or FREEDOM2, a multinational, randomized, double blind, placebo-controlled Phase 2 MAD study. In the FREEDOM study, we are enrolling adult participants with DM1 in multiple geographies including the U.S., U.K. and Canada, to evaluate the safety and tolerability of PGN-EDODM1, as well as oligonucleotide muscle concentrations, splicing correction and functional outcome measures at day 28 and at week 16 following a single dose of PGN-EDODM1. On September 24, 2025, we reported topline results from the 15 mg/kg cohort in the FREEDOM study of PGN-EDODM1, demonstrating a mean splicing correction of 53.7% following a single 15 mg/kg dose, noting that PGN-EDOM1 was generally well tolerated at this dose, with all drug-related adverse events mild or moderate in severity. Additionally, on February 24, 2025, we reported initial data from the 5 mg/kg and 10 mg/kg dose cohorts in this study where PGN-EDODM1 was observed to have a favorable emerging safety profile and robust splicing correction in a dose-dependent manner in the 5 and 10 mg/kg dose cohorts. Based on the positive splicing correction observed in the FREEDOM trial including the totality of the blinded safety data to date, we have decided to conclude dose escalation in the FREEDOM trial with the 15 mg/kg cohort.
Current wording
In the FREEDOM study, we enrolled adult participants with DM1 in multiple geographies including the U.S. and Canada, to evaluate the safety and tolerability of PGN-EDODM1, as well as oligonucleotide muscle concentrations, splicing correction and functional outcome measures at day 28 and at week 16 following a single dose of PGN-EDODM1. We announced data from the three cohorts in the FREEDOM study (5 mg/kg, 10 mg/kg and 15 mg/kg) in 2025, highlighting that PGN-EDODM1 was generally well tolerated at all doses, with all drug-related adverse events mild or moderate in severity and a dose dependent mean splicing correction of 12.3%, 29.1% and 53.7% in the single 5 mg/kg, 10 mg/kg and 15 mg/kg cohorts, respectively.
Previous wording
The safety data from the ongoing FREEDOM study has informed the design of FREEDOM2, which is currently open in Canada and U.K. We also plan to open the FREEDOM2 study other geographies, including the U.S., subject to regulatory authorizations. FREEDOM2 is a Phase 2 randomized, double-blind, placebo-controlled MAD study of PGN-EDODM1 in DM1 patients. FREEDOM2 is designed to assess PGN-EDODM1’s safety and tolerability, splicing correction and functional outcome measures in DM1 patients. All participants in the 5 mg/kg dose cohort have been enrolled and received at least one dose and we expect to report data from this cohort in the first quarter of 2026.
Current wording
The safety data from the FREEDOM study informed the design of FREEDOM2, which has received regulatory clearance in Canada, the United Kingdom, South Korea, Australia, and New Zealand and we are currently enrolling patients in Canada and the U.K. and other geographies. The FREEDOM2 study remains on partial clinical hold in the U.S. and we continue to work with the FDA to address questions raised by the FDA as quickly as possible. FREEDOM2 is a Phase 2 randomized, double-blind, placebo-controlled MAD study of PGN-EDODM1 in DM1 patients. FREEDOM2 is designed to assess PGN-EDODM1’s safety and tolerability, splicing correction and functional outcome measures in DM1 patients. We recently reported topline results from the 5 mg/kg cohort in the FREEDOM2 study where PGN-EDODM1 was generally well-tolerated, with no serious adverse events (SAEs), all related treatment emergent adverse events (TEAEs) reported as mild, all non-related TEAEs reported as mild or moderate, and no signs of cumulative toxicity. Such results also demonstrated a mean splicing correction of 7.3%, compared to 6.8% in placebo-treated patients. However, excluding one outlier patient, patients showed a mean splicing correction of 22.9% as the outlier patient exhibited a worsening in splicing correction (70.8%), reducing the overall group mean to 7.3%. Middle finger vHOT in the treatment group in this cohort showed a positive trend of improvement versus a worsening observed in the placebo group with both returning to baseline at the last assessment. The FREEDOM2 study is currently dosing the 10 mg/kg dose cohort and we expect to report data from this cohort in the second half of 2026.
Previous wording
The FDA has granted both orphan drug designation and Fast Track designation for PGN-EDODM1 for the treatment of DM1.
Current wording
The FDA has granted both orphan drug designation and Fast Track designation for PGN-EDODM1 for the treatment of DM1 and the EMA has also granted orphan medicinal product designation to PGN-EDODM1.
Previous wording
On February 5, 2024, we issued and sold 1,000,000 of common stock shares at a purchase price of $10.00 per share under our at-the-market offering program, or ATM program, pursuant to an At-the-Market Equity Offering Sales Agreement, or Sales Agreement, with Stifel, Nicolaus & Company, Incorporated, or Stifel, resulting in net proceeds of $9.9 million. On February 9, 2024, we issued and sold 7,530,000 shares of common stock at a purchase price of $10.635 per share, which was the closing sale price of our common stock on the Nasdaq Global Select Market on February 6, 2024, in an underwritten follow-on offering, or the 2024 Offering. The 2024 Offering resulted in net proceeds of $76.4 million after deducting underwriters' fees of $3.7 million. Net proceeds from the ATM program and 2024 Offering, after deducting underwriters’ fees and costs of the offerings, were $86.3 million.
Current wording
On February 5, 2024, we issued and sold 1,000,000 shares of common stock at a purchase price of $10.00 per share under our at-the-market offering program, or ATM program, pursuant to an At-the-Market Equity Offering Sales Agreement, or Sales Agreement, with Stifel, Nicolaus & Company, Incorporated, or Stifel, resulting in net proceeds of $9.9 million. On February 9, 2024, we issued and sold 7,530,000 shares of common stock at a purchase price of $10.635 per share, which was the closing sale price of our common stock on the Nasdaq Global Select Market on February 6, 2024, in an underwritten follow-on offering, or the 2024 Offering. The 2024 Offering resulted in net proceeds of $76.4 million after deducting underwriters' fees of $3.7 million. Net proceeds from the ATM program and 2024 Offering, after deducting underwriters’ fees and costs of the offerings, were $86.3 million. During the three months ended March 31, 2026, the Company sold 237,500 shares of common stock under the Sales Agreement resulting in net proceeds of $1.5 million.
Previous wording
On September 26, 2025, we issued and sold 31,250,000 shares of common stock shares at a purchase price of $3.20 per share in an underwritten public offering, or the 2025 Offering. Pursuant to the underwriting agreement, we granted underwriters a 30-day option to purchase up to an additional 4,687,500 shares of common stock at a price of $3.20 per share which was exercised in full on September 25, 2025. The 2025 Offering resulted in net proceeds of $107.6 million after deducting underwriters' fees of $6.9 million and estimated offering expenses of $0.5 million.
Current wording
On September 26, 2025, we issued and sold 31,250,000 shares of common stock at a purchase price of $3.20 per share in an underwritten public offering, or the 2025 Offering. Pursuant to the underwriting agreement, we granted underwriters a 30-day option to purchase up to an additional 4,687,500 shares of common stock at a price of $3.20 per share which was exercised in full on September 25, 2025. The 2025 Offering resulted in net proceeds of $107.6 million after deducting underwriters' fees of $6.9 million and offering expenses of $0.5 million.
Previous wording
We have incurred operating losses in each year since our inception. Our net losses were $71.3 million and $67.7 million for the nine months ended September 30, 2025 and September 30, 2024, respectively. As of September 30, 2025, we had cash, cash equivalents, and marketable securities of $163.7 million. As of September 30, 2025, we had an accumulated deficit of $342.8 million. Notwithstanding our decision to cease our research and development efforts in DMD, which we announced on May 28, 2025, we expect our expenses and operating losses will continue as we conduct our ongoing preclinical studies and current and planned clinical trials of PGN-EDODM1, continue our research and development activities, utilize third parties to manufacture our product candidates and related raw materials, hire additional personnel, protect our intellectual property and incur additional costs associated with being a public company, including audit, legal, regulatory, and tax-related services associated with maintaining compliance with an exchange listing and SEC requirements, director and officer insurance premiums, and investor relations costs. In addition, we have several development, regulatory and commercial milestone payment obligations under our licensing arrangements. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our preclinical studies, current and planned clinical trials, manufacturing campaigns and our expenditures on other research and development activities.
Current wording
We have incurred operating losses in each year since our inception. Our net losses were $17.8 million and $30.2 million for the three months ended March 31, 2026 and March 31, 2025, respectively. As of March 31, 2026, we had cash, cash equivalents, and marketable securities of $132.3 million. As of March 31, 2026, we had an accumulated deficit of $378.9 million. Notwithstanding our decision to cease our research and development efforts in DMD, which we announced on May 28, 2025, we expect our expenses and operating losses will continue as we conduct our ongoing preclinical studies and current and planned clinical trials of PGN-EDODM1, continue our research and development activities, utilize third parties to manufacture our product candidates and related raw materials, hire additional personnel, protect our intellectual property and incur additional costs associated with being a public company, including audit, legal, regulatory, and tax-related services associated with maintaining compliance with an exchange listing and SEC requirements, director and officer insurance premiums, and investor relations costs. In addition, we have several development, regulatory and commercial milestone payment obligations under our licensing arrangements. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our preclinical studies, current and planned clinical trials, manufacturing campaigns and our expenditures on other research and development activities.
Previous wording
The following table (in thousands) summarizes our research and development expenses for the three and nine months ended September 30, 2025 and September 30, 2024. The direct external development program expenses reflect external costs attributable to our clinical development candidates and preclinical candidates selected for further development. Our internal resources, personnel and infrastructure are not directly tied to any one research or drug discovery program and are deployed across multiple programs. As such, we do not track internal expenses on a program-specific basis.
Current wording
The following table (in thousands) summarizes our research and development expenses for the three months ended March 31, 2026 and March 31, 2025. The direct external development program expenses reflect external costs attributable to our clinical development candidates and preclinical candidates selected for further development. Our internal resources, personnel and infrastructure are not directly tied to any one research or drug discovery program and are deployed across multiple programs. As such, we do not track internal expenses on a program-specific basis.
Previous wording
We continue to conduct our ongoing Phase 2 clinical trial of our investigational drug candidate, PGN-EDODM1. We have decided to conclude dose escalation in the FREEDOM trial with the 15 mg/kg cohort, based on the positive splicing correction observed and the totality of the blinded safety data to date. As stated above, on May 28, 2025, we announced that we have decided to voluntarily discontinue development of PGN-EDO51 and will be winding down all DMD-related research and development activities. Research and development expenses for our lead program can be variable quarter-over-quarter due to the timing of manufacturing campaigns, which are accounted for under the percentage of completion method. The process of conducting preclinical studies and clinical trials necessary to obtain regulatory approval is costly and time consuming. We may never succeed in achieving marketing approval for our remaining clinical stage product candidate or any new product candidates we develop.
Current wording
The Phase 1 FREEDOM clinical trial of our investigational drug candidate, PGN-EDODM1 has completed and we continue to conduct the ongoing Phase 2 FREEDOM2 clinical trial. On May 28, 2025, we announced that we decided to voluntarily discontinue development of PGN-EDO51 and are working to complete the wind-down of DMD-related research and development activities. Research and development expenses for our lead program can be variable quarter-over-quarter due to the timing of manufacturing campaigns, which are accounted for under the percentage of completion method. The process of conducting preclinical studies and clinical trials necessary to obtain regulatory approval is costly and time consuming. We may never succeed in achieving marketing approval for our remaining clinical stage product candidate or any new product candidates we develop.
Previous wording
the status of clinical trials, the timing and costs, if any, associated with resolving a clinical hold, animal and other preclinical studies and IND- or clinical trial application, or CTA-enabling studies;
Current wording
the status of clinical trials, the timing and costs, if any, associated with resolving clinical or partial clinical holds, animal and other preclinical studies and IND- or clinical trial application, or CTA-enabling studies;
Previous wording
We have not recorded a U.S. provision for federal or state income taxes as we have no revenue and have incurred losses since inception. We did not record any tax liability as of September 30, 2025 or September 30, 2024.
Current wording
We record tax expense for state taxes on interest income generated from the Company's cash equivalents and marketable securities. We have not recorded a U.S. provision for federal or state income taxes as we have no revenue and have incurred losses since inception.
Previous wording
Research and development expenses decreased by $4.3 million from $17.7 million for the three months ended September 30, 2024, to $13.4 million for the three months ended September 30, 2025. This was attributable to a $1.4 million decrease in personnel-related costs, including a decrease of $0.5 million in stock-based compensation expense, a $1.2 million decrease in manufacturing costs related to the timing of manufacturing campaigns, and a $1.3 million decrease in preclinical costs as our two lead programs had advanced into clinical trials, prior to the discontinuation of our DMD program in late May 2025. This was additionally driven by a $0.5 million decrease in consulting-related costs and a $0.3 million decrease in facility and office related costs, including depreciation. These decreases are partially offset by a $0.4 million increase in clinical trial expense driven by costs related to our Phase 1 and Phase 2 clinical trials for PGN-EDODM1.
Current wording
Research and development expenses decreased by $12.4 million from $25.4 million for the three months ended March 31, 2025, to $13.0 million for the three months ended March 31, 2026. This was primarily attributable to a $9.7 million decrease in manufacturing costs related to the timing of manufacturing campaigns and a $2.4 million decrease in personnel-related costs, including a decrease of $0.6 million in stock-based compensation expense. This was additionally driven by a $0.3 million decrease in clinical costs as, prior to the discontinuation of our DMD program in late May 2025, we had two programs in clinical trials during the first quarter of the prior year.
Previous wording
Other income (expense), net was income of $0.6 million for the three months ended September 30, 2025 and $1.8 million for the three months ended September 30, 2024. Interest is earned through our cash deposits and U.S. Treasury-backed money market funds.
Current wording
Other income (expense), net was $1.2 million for the three months ended March 31, 2026 and $1.1 million for the three months ended March 31, 2025. Interest is earned through our cash deposits and U.S. Treasury-backed money market funds.
Previous wording
Income tax expense was nil for the three months ended September 30, 2025 and September 30, 2024.
Current wording
Income tax expense was $15,000 for the three months ended March 31, 2026 for state taxes on interest income generated from the Company's cash equivalents and marketable securities. Income tax expense was nil for the three months ended March 31, 2025.
Previous wording
From our inception in January 2018 through September 30, 2025, we have funded our operations primarily through the sale of our common stock and convertible preferred stock. We received aggregate gross proceeds of $163.9 million from these sales prior to our IPO. Additionally, in May 2022, we received gross proceeds from our IPO of $122.9 million.
Current wording
Since our inception in January 2018, we have funded our operations primarily through the sale of our common stock and convertible preferred stock. We received aggregate gross proceeds of $163.9 million from these sales prior to our IPO. Additionally, in May 2022, we received gross proceeds from our IPO of $122.9 million.
Previous wording
On August 8, 2023, we filed a prospectus supplement and entered into the Sales Agreement with Stifel, as sales agent, which provides for the issuance and sale by us of up to $100.0 million of shares of common stock from time to time under the ATM program. On February 5, 2024, we issued and sold 1,000,000 shares of common stock at a purchase price of $10.00 per share under the ATM program, resulting in net proceeds of $9.9 million.
Current wording
On August 8, 2023, we filed a prospectus supplement and entered into the Sales Agreement with Stifel, as sales agent, which provides for the issuance and sale by us of up to $100.0 million of shares of common stock from time to time under the ATM program. On February 5, 2024, we issued and sold 1,000,000 shares of common stock at a purchase price of $10.00 per share under the ATM program, resulting in net proceeds of $9.9 million. During the three months ended March 31, 2026, the Company sold 237,500 shares of common stock under the Sales Agreement resulting in net proceeds of $1.5 million.
Previous wording
On September 26, 2025, we issued and sold 31,250,000 shares of common stock shares at a purchase price of $3.20 per share in the 2025 Offering. Underwriters exercised their option to purchase an additional 4,687,500 shares of common stock at a price of $3.20 per share on September 25, 2025. The 2025 Offering resulted in net proceeds of $107.6 million after deducting underwriters' fees of $6.9 million and estimated offering expenses of $0.5 million.
Current wording
On September 26, 2025, we issued and sold 31,250,000 shares of common stock at a purchase price of $3.20 per share in the 2025 Offering. Underwriters exercised their option to purchase an additional 4,687,500 shares of common stock at a price of $3.20 per share on September 25, 2025. The 2025 Offering resulted in net proceeds of $107.6 million after deducting underwriters' fees of $6.9 million and offering expenses of $0.5 million.
Previous wording
As of September 30, 2025, we had cash, cash equivalents, and marketable securities of $163.7 million. We believe that our existing cash, cash equivalents, and marketable securities will be sufficient to fund our currently planned operations into the second half of 2027. Our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. Additionally, the process of conducting preclinical studies and testing product candidates in clinical trials is costly, and the timing of progress and expenses in these studies and trials is uncertain.
Current wording
As of March 31, 2026, we had cash, cash equivalents, and marketable securities of $132.3 million. We believe that our existing cash, cash equivalents, and marketable securities will be sufficient to fund our currently planned operations into the second half of 2027. However, our forecast for the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. Additionally, the process of conducting preclinical studies and testing product candidates in clinical trials is costly, and the timing of progress and expenses in these studies and trials is uncertain.
Previous wording
the costs of operating as a public company.
Current wording
the ongoing costs of operating as a public company.
Previous wording
The following table sets forth a summary of the net cash flow activity for the nine months ended September 30, 2025 and September 30, 2024 (in thousands):
Current wording
The following table sets forth a summary of the net cash flow activity for the three months ended March 31, 2026 and March 31, 2025 (in thousands):
Previous wording
For the nine months ended September 30, 2025, net cash used in operating activities was $65.8 million resulting from our net loss of $71.3 million and changes in our operating assets and liabilities of $5.8 million, partially offset by non-cash adjustments of $11.3 million. The net changes in our operating assets and liabilities were primarily due to a decrease of $3.5 million in accrued expenses and a decrease of $2.3 million in operating lease liabilities. The non-cash adjustments included $8.2 million of stock-based compensation, $1.1 million of depreciation expense, $1.4 million of amortization of discounts on our marketable securities, and $2.8 million of amortization and interest accretion on our operating lease. Additionally, there was a non-cash adjustment of $0.7 million related to the impairment of unused lab equipment.
Current wording
For the three months ended March 31, 2026, net cash used in operating activities was $18.4 million resulting from our net loss of $17.8 million and changes in our operating assets and liabilities of $4.0 million, partially offset by non-cash adjustments of $3.3 million. The net changes in our operating assets and liabilities were primarily due to a decrease of $3.5 million in accrued expenses. The non-cash adjustments included $2.9 million of stock-based compensation, $0.3 million of depreciation expense, $0.9 million of amortization and interest accretion on our operating lease, and $0.8 million of amortization of discounts on our marketable securities.
Previous wording
For the nine months ended September 30, 2024, net cash used in operating activities was $62.9 million resulting from our net loss of $67.7 million, and changes in our operating assets and liabilities of $4.3 million, partially offset by non-cash adjustments of $9.2 million. The net changes in our operating assets and liabilities were primarily due to an increase in accounts payable of $4.9 million related to manufacturing commitments. The change was further driven by a decrease in accrued expenses of $5.8 million, an increase in prepaids and other current assets of $1.2 million, and a decrease in operating lease liabilities of $2.2 million. The $5.8 million decrease in accrued expenses was primarily due to lower research and development accruals as a result of the timing of manufacturing campaigns. The non-cash adjustments included $8.1 million of stock-based compensation, $1.1 million of depreciation expense, $2.9 million of amortization of discounts on our marketable securities, and $2.8 million of amortization and interest accretion on our operating lease.
Current wording
For the three months ended March 31, 2025, net cash used in operating activities was $22.9 million resulting from our net loss of $30.2 million, partially offset by changes in our operating assets and liabilities of $3.2 million and by non-cash adjustments of $4.1 million. The net changes in our operating assets and liabilities were primarily due to an increase in accrued expenses of $2.7 million, as a result of the timing of manufacturing campaigns, and an increase in accounts payable of $0.9 million. The change was further driven by a decrease in operating lease liabilities of $0.8 million and a decrease in prepaids and other current assets of $0.3 million. The non-cash adjustments included $3.4 million of stock-based compensation, $0.4 million of depreciation expense, $0.7 million of amortization of discounts on our marketable securities, and $0.9 million of amortization and interest accretion on our operating lease.
Previous wording
For the nine months ended September 30, 2024, net cash used in investing activities was $64.2 million resulting from $123.9 million in purchases of marketable securities partially offset by $60.0 million in maturities of marketable securities.
Current wording
For the three months ended March 31, 2026, net cash used in investing activities was $1.5 million resulting from $28.5 million in purchases of marketable securities partially offset by $27.0 million in maturities of marketable securities.
Previous wording
For the nine months ended September 30, 2025, net cash provided by investing activities was $51.0 million resulting from $58.0 million in maturities of marketable securities partially offset by $6.7 million in purchases of marketable securities and $0.3 million in purchases of property and equipment.
Current wording
For the three months ended March 31, 2025, net cash provided by investing activities was $17.1 million resulting from $24.0 million in maturities of marketable securities partially offset by $6.7 million in purchases of marketable securities and $0.1 million in purchases of property and equipment.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Our clinical development program for PGN-EDODM1 includes three studies, FREEDOM-DM1, or FREEDOM, a multinational, randomized, double-blind, placebo-controlled Phase 1 single ascending dose, or SAD, study, FREEDOM2-DM1, or FREEDOM2, a multinational, randomized, double blind, placebo-controlled Phase 2 MAD study and FREEDOM-OLE, which is an open label extension study open to participants who meet its eligibility criteria and have completed either the FREEDOM or FREEDOM2 studies.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The following table summarizes our results of operations for the nine months ended September 30, 2025 and September 30, 2024 (in thousands):
Previous report — wording carried elsewhere
Other income (expense), net was income of $2.6 million for the nine months ended September 30, 2025 and $5.7 million for the nine months ended September 30, 2024. Interest is earned through our cash deposits and U.S. Treasury-backed money market funds.
Previous report — wording carried elsewhere
Income tax expense was nil for the nine months ended September 30, 2025 and September 30, 2024.