MapLight Therapeutics, Inc.

Previous wording

You should read the following discussion and analysis of our financial condition and results of operations together with our audited consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report and with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, future results of operations and financial position, and our objectives for future operations, includes forward-looking statements that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "might," "intend," "target," "ongoing," "project," "estimate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other similar expressions intended to identify statements about the future. As a result of many factors, including those factors set forth in the section entitled "Risk Factors" of this Quarterly Report, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis or set forth elsewhere in this Quarterly Report.

Current wording

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report and with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, future results of operations and financial position, and our objectives for future operations, includes forward-looking statements that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "might," "intend," "target," "ongoing," "project," "estimate," "believe," "predict," "potential," "continue," the negative of these terms or other similar expressions intended to identify statements about the future. As a result of many factors, including those factors set forth in the section entitled "Risk Factors" of this Quarterly Report, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis or set forth elsewhere in this Quarterly Report.

Previous wording

Our lead product candidate, ML-007C-MA, is a fixed-dose combination of an M 1/M 4 muscarinic agonist, ML-007, co-formulated with a peripherally acting anticholinergic, or PAC, which we are initially developing for the treatment of schizophrenia and Alzheimer's disease psychosis, or ADP. ML-007C-MA is designed to activate both M 1 and M 4 muscarinic receptors centrally to drive efficacy, while synchronizing the pharmacokinetics of the agonist and antagonist components to mitigate peripheral cholinergic side effects. ML-007 alone, co-administered or co-formulated with the PAC has been evaluated in four Phase 1 trials, with a total of 270 healthy participants enrolled and more than 1,500 doses of ML-007 administered. Based on our clinical and preclinical data, we believe that ML-007C-MA has demonstrated the potential to be a well-tolerated treatment option with convenient dosing, while achieving or exceeding cerebrospinal fluid, or CSF, exposures expected to result in improvement across key symptom domains. We are conducting ZEPHYR, a Phase 2 trial evaluating ML-007C-MA for the treatment of schizophrenia. We have completed enrollment in the ZEPHYR trial with 307 participants enrolled, and we expect to report topline results by mid-August 2026. We are also conducting VISTA, a Phase 2 trial evaluating ML-007C-MA for the treatment of ADP, and we expect to report topline results in the second half of 2027. In December 2025, ML-007C-MA was granted Fast Track designation by the FDA for the treatment of hallucinations and delusions associated with ADP.

Current wording

Our lead product candidate, ML-007C-MA, is a fixed-dose combination of an M 1/M 4 muscarinic agonist, ML-007, co-formulated with a peripherally acting anticholinergic, or PAC, which we are initially developing for the treatment of schizophrenia and Alzheimer's disease psychosis, or ADP. ML-007C-MA is designed to activate both M 1 and M 4 muscarinic receptors centrally to drive efficacy, while synchronizing the pharmacokinetics of the agonist and antagonist components to mitigate peripheral cholinergic side effects. ML-007 alone, co-administered or co-formulated with the PAC has been evaluated in four Phase 1 trials, with a total of 270 healthy participants enrolled and more than 1,500 doses of ML-007 administered. Based on our clinical and preclinical data, we believe that ML-007C-MA has demonstrated the potential to be a well-tolerated treatment option with convenient dosing, while achieving or exceeding cerebrospinal fluid, or CSF, exposures expected to result in improvement across key symptom domains. In July 2026, we announced positive topline results from ZEPHYR, a Phase 2 trial evaluating ML-007C-MA for the treatment of schizophrenia. Based on the results of ZEPHYR, we intend to engage with the FDA in an end-of-Phase 2 meeting to discuss the path forward for ML-007C-MA in schizophrenia, including the design of a Phase 3 trial which, together with ZEPHYR, would support an initial New Drug Application, or NDA, submission. We have begun planning and site identification for this additional, confirmatory trial.

Previous wording

Our second clinical stage product candidate, ML-004, is a 5-HT 1B/1Dagonist that we are developing for the treatment of social communication deficit and/or irritability in autism spectrum disorder, or ASD. We are conducting IRIS, a Phase 2 trial evaluating the efficacy, safety and tolerability of ML-004 in adults and adolescents with ASD. 161 participants were randomized in this trial, and we expect to report topline results by mid-August 2026.

Current wording

Our second clinical stage product candidate, ML-004, is a 5-HT 1B/1Dagonist that we are developing for the treatment of social communication deficit and/or irritability in autism spectrum disorder, or ASD. In June 2026, we announced topline results from IRIS, a Phase 2 trial evaluating the efficacy, safety and tolerability of ML-004 in adults and adolescents with ASD. Based on the results of IRIS, we intend to engage with the FDA in an end-of-Phase 2 meeting to determine the next steps for development of ML-004 in irritability associated with ASD, after which we intend to evaluate the path forward for ML-004, including potential strategic collaborations and/or funding alternatives.

Previous wording

Since our inception in 2018, we have devoted substantially all of our time and efforts to performing research and development activities, raising capital and recruiting management and technical staff to support our operations. To date, we have financed our operations primarily with proceeds from the sales of our redeemable convertible preferred stock and research and development grants received and most recently, with net proceeds from our initial public offering, or IPO, and our concurrent private placement, or Concurrent Private Placement.

Current wording

Since our inception in 2018, we have devoted substantially all of our time and efforts to performing research and development activities, raising capital and recruiting management and technical staff to support our operations. To date, we have financed our operations primarily with proceeds from the sales of our redeemable convertible preferred stock, and most recently, with net proceeds from our initial public offering, or IPO, and our concurrent private placement, or Concurrent Private Placement and our 2026 Private Placement, discussed below.

Previous wording

We have incurred significant net losses since inception. Our net losses for the three months ended March 31, 2026 and 2025 were $60.7 million and $22.3 million, respectively. As of March 31, 2026, we had an accumulated deficit of $421.2 million. We expect to continue to incur significant and increasing expenses and net losses for the foreseeable future as we advance our current and future product candidates through preclinical and clinical development, seek regulatory approval for such product candidates, maintain and expand our intellectual property portfolio, hire additional research and development and business personnel, expand our infrastructure and operate as a public company.

Current wording

We have incurred significant net losses since inception. Our net losses for the six months ended June 30, 2026 and 2025 were $120.9 million and $52.2 million, respectively. As of June 30, 2026, we had an accumulated deficit of $481.4 million. We expect to continue to incur significant and increasing expenses and net losses for the foreseeable future as we advance our current and future product candidates through preclinical and clinical development, seek regulatory approval for such product candidates, maintain and expand our intellectual property portfolio, hire additional research and development and business personnel, expand our infrastructure, scale-up production capabilities and operate as a public company.

Previous wording

As a result, we will need substantial additional funding to support our continuing operations and pursue our growth strategy. Until we can generate significant revenue from product sales, if ever, we expect to finance our operations through a combination of public or private equity offerings and debt financings or other sources, such as potential collaboration agreements, strategic alliances and licensing arrangements. We may be unable to raise additional funds or enter into such other agreements or arrangements when needed on acceptable terms, or at all. Our failure to raise capital or enter into such agreements as and when needed could have a material adverse effect on our business, results of operations and financial condition.

Current wording

As a result, we will need substantial additional funding to support our continuing operations and pursue our growth strategy. Until we can generate significant revenue from product sales, if ever, we expect to finance our operations through a combination of public or private equity offerings and debt financings or other sources, such as collaboration agreements, strategic alliances and licensing agreements. We may be unable to raise additional funds or enter into such other agreements when needed on acceptable terms, or at all. Our failure to raise capital or enter into such agreements as and when needed could have a material adverse effect on our business, results of operations and financial condition.

Previous wording

As of March 31, 2026, we had cash, cash equivalents and investments of $395.2 million. Based on our current operational plans and assumptions, we expect that our existing cash, cash equivalents and investments will be sufficient to fund our operations through 2027. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we expect. If we are unable to raise sufficient funding, we may be unable to continue to operate in the long term. See "—Liquidity and Capital Resources—Plan of Operation and Future Funding Requirements" below.

Current wording

As of June 30, 2026, we had cash, cash equivalents and investments of $351.3 million. Based on our current operational plans and assumptions, we expect that our existing cash, cash equivalents and investments, together with the expected proceeds from our 2026 Private Placement, will be sufficient to fund our operations through 2028. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we expect. If we are unable to raise sufficient funding, we may be unable to continue to operate in the long term. See "Liquidity and Capital Resources - Plan of Operation and Future Funding Requirements" below.

Previous wording

Research and development expenses consist primarily of costs incurred for the development of our product candidates and our research activities, including our discovery efforts, and include:

Current wording

Research and development expenses consist primarily of costs incurred for the development of our product candidates and our research activities and include:

Previous wording

We expense research and development costs as incurred. Costs for external development activities are recognized based on an evaluation of the progress to completion of specific activities. Payments for these activities are based on the terms of the individual agreements, which may differ from the timing of costs incurred, and are reflected in our consolidated financial statements as prepaid or accrued research and development expenses.

Current wording

We expense research and development costs as incurred. Costs for external development activities are recognized based on an evaluation of the progress to completion of specific activities. Payments for these activities are based on the terms of the related agreements, which may differ from the timing of costs incurred, and are reflected in our condensed consolidated financial statements as prepaid or accrued research and development expenses.

Previous wording

Research and development activities are central to our business model. We expect that our research and development expenses will continue to increase substantially for the foreseeable future as we initiate and conduct clinical trials, advance our preclinical programs and continue to discover and develop additional product candidates.

Current wording

Research and development activities are central to our business model. We expect that our research and development expenses will continue to increase substantially for the foreseeable future as we initiate and conduct clinical trials.

Previous wording

initiation and successful patient enrollment in, and completion of, clinical trials on a timely basis;

Current wording

initiation of and successful patient enrollment in, and completion of, clinical trials on a timely basis;

Previous wording

General and administrative expenses consist primarily of salaries, benefits and other related costs, including stock-based compensation, for personnel in our executive, finance, business development and administrative functions. General and administrative expenses also include legal fees relating to intellectual property and corporate matters; professional fees for accounting, auditing, tax and consulting services; insurance costs; travel expenses; and facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs.

Current wording

General and administrative expenses consist primarily of salaries, benefits and other employee-related costs, including stock-based compensation expense, for personnel in our executive, finance, business development and administrative functions. General and administrative expenses also include legal fees relating to intellectual property and corporate matters; professional fees for accounting, auditing, tax and consulting services; insurance costs; and facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs.

Previous wording

We expect that our general and administrative expenses will increase in the future as we increase our personnel headcount to support our continued clinical development efforts, research and development activities, manufacturing activities and related expansion of our operations. We also anticipate increased expenses associated with being a public company, including costs for audit, legal, regulatory and tax-related services related to compliance with the rules and regulations of the Securities and Exchange Commission, or SEC, and the listing standards of the Nasdaq Stock Market LLC, or Nasdaq, director and officer insurance premiums and investor relations costs.

Current wording

We expect that our general and administrative expenses will increase in the future as we increase our personnel headcount to support our continued clinical development efforts, research and development activities, manufacturing activities and related expansion of our operations. We also anticipate increased expenses associated with being a public company, including costs for audit, legal, regulatory and tax-related services related to compliance with the rules and regulations of SEC, and the listing standards of the Nasdaq Stock Market LLC, or Nasdaq, director and officer insurance premiums and investor relations costs.

Previous wording

Other income, net consists primarily of amortization of premiums and accretion of discounts to maturity for available-for-sale debt securities.

Current wording

Other income, net consists primarily of the amortization of premiums and accretion of discounts to maturity for available-for-sale investments.

Previous wording

Since our inception, we have not recorded income tax benefits for the net operating losses, or NOLs, incurred or the research and development tax credits generated in each year due to the uncertainty of realizing a benefit from those items. As of December 31, 2025, we had U.S. federal and state net operating loss carryforwards of $96.6 million and $13.1 million, respectively, which may be available to offset future taxable income. The federal net operating loss carryforwards do not expire, but may only be used to offset 80% of annual taxable income. The state net operating loss carryforwards expire beginning in 2039. As of December 31, 2025, we also had federal and state research and development tax credit carryforwards of $13.3 million and $0.2 million, respectively.

Current wording

Since our inception, we have not recorded income tax benefits for the net operating losses incurred or the research and development tax credits generated in each year due to the uncertainty of realizing a benefit from those items. As of December 31, 2025, we had U.S. federal and state net operating loss carryforwards of $96.6 million and $13.1 million, respectively, which may be available to offset future taxable income. The federal net operating loss carryforwards do not expire, but may only be used to offset 80% of annual taxable income. The state net operating loss carryforwards expire beginning in 2039. As of December 31, 2025, we also had federal and state research and development tax credit carryforwards of $13.3 million and $0.2 million, respectively.

Previous wording

Research and development expenses were $53.7 million for the three months ended March 31, 2026, compared to $19.8 million for the three months ended March 31, 2025. The increase in research and development expenses of $33.9 million was primarily due to ongoing advancement of our product candidates, which included an increase of $22.9 million in clinical trial expenses and $8.9 million in employee-related expenses, including an increase in stock-based compensation expense of $5.3 million.

Current wording

Research and development expenses were $53.4 million for the three months ended June 30, 2026, compared to $26.8 million for the three months ended June 30, 2025. The increase in research and development expenses of $26.6 million was primarily due to ongoing advancement of our product candidates, which included an increase of $14.7 million in clinical trial expenses and $9.9 million in employee-related expenses, including an increase in stock-based compensation expense of $5.6 million.

Previous wording

General and administrative expenses were $10.8 million for the three months ended March 31, 2026, compared to $3.8 million for the three months ended March 31, 2025. The increase in general and administrative expenses of $7.1 million was primarily due to an increase of $4.9 million in employee-related expenses, including an increase in stock-based compensation expense of $4.2 million, and an increase of $2.1 million in professional fees and other expenses, including expenses related to being a publicly-traded company.

Current wording

General and administrative expenses were $10.1 million for the three months ended June 30, 2026, compared to $3.8 million for the three months ended June 30, 2025. The increase in general and administrative expenses of $6.3 million was primarily due to an increase of $3.9 million in employee-related expenses, including an increase in stock-based compensation expense of $2.9 million, and an increase of $2.4 million in professional fees and other expenses, including expenses related to being a public company.

Previous wording

Interest income was $2.5 million for the three months ended March 31, 2026, compared to $0.8 million for the three months ended March 31, 2025. The increase in interest income of $1.7 million was due to an increase in investments held during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Current wording

Interest income was $2.3 million for the three months ended June 30, 2026, compared to $0.7 million for the three months ended June 30, 2025. The increase in interest income of $1.7 million was due to an increase in investments held during the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Previous wording

Other income, net was $1.4 million for the three months ended March 31, 2026, compared to $0.4 million for the three months ended March 31, 2025. The increase of $1.0 million was primarily due to amortization of premiums and accretion of discounts on investments held during the three months ended March 31, 2026.

Current wording

Other income, net was $1.0 million for the three months ended June 30, 2026, compared to $0.1 million for the three months ended June 30, 2025. The increase of $0.9 million was primarily due to an increase in the amortization of premiums and accretion of discounts on investments held during the three months ended June 30, 2026.

Previous wording

We have incurred significant net losses since inception. We expect to continue to incur significant and increasing expenses and net losses for the foreseeable future as we advance our current and future product candidates through preclinical and clinical development, seek regulatory approval for our current and future product candidates through clinical and preclinical development, maintain and expand our intellectual property portfolio, hire additional research and development and business personnel, scale-up our production capabilities and operate as a public company. As of March 31, 2026, we had cash, cash equivalents and investments of $395.2 million and an accumulated deficit of $421.2 million. Historically, we have financed our operations primarily through issuances of our redeemable convertible preferred stock and research and development grants, and more recently, with proceeds from our IPO and our Concurrent Private Placement.

Current wording

We have incurred significant net losses since inception. We expect to continue to incur significant and increasing expenses and net losses for the foreseeable future as we advance our current and future product candidates through preclinical and clinical development, seek regulatory approval for such product candidates, maintain and expand our intellectual property portfolio, hire additional research and development and business personnel, expand our infrastructure, scale-up production capabilities and operate as a public company. As of June 30, 2026, we had cash, cash equivalents and investments of $351.3 million and an accumulated deficit of $481.4 million. To date, we have financed our operations primarily with proceeds from the sales of our redeemable convertible preferred stock, and most recently, with net proceeds from our IPO and our Concurrent Private Placement and our 2026 Private Placement.

Previous wording

In October 2025, we closed our IPO, pursuant to which we issued and sold an aggregate of 16,962,500 shares of our common stock at a public offering price of $17.00 per share for net proceeds of $261.6 million, after deducting underwriting discounts and commissions and offering expenses. Concurrent with our IPO, we also closed our Concurrent Private Placement, in which we issued and sold 476,707 shares of our common stock at a price of $17.00 per share for net proceeds of $7.5 million, after deducting placement agent fees and private placement expenses.

Current wording

In October 2025, we closed our IPO, pursuant to which we issued and sold an aggregate of 16,962,500 shares of our common stock at a price of $17.00 per share for net proceeds of $261.6 million, after deducting underwriting discounts and commissions and offering expenses. Concurrent with our IPO, we also closed our Concurrent Private Placement, in which we issued and sold 476,707 shares of our common stock at a price of $17.00 per share for net proceeds of $7.5 million, after deducting placement agent fees and private placement expenses.

Previous wording

Our cash flows from operating activities are primarily driven by our use of cash for operating expenses and working capital required to support our business. We have historically generated negative cash flows from operating activities due to expenses incurred for our clinical trials, preclinical studies, and research and development initiatives.

Current wording

Our cash flows from operating activities are primarily driven by our use of cash for operating expenses and working capital required to support our business. We have historically generated negative cash flows from operating activities primarily due to expenses incurred for our clinical trials, preclinical studies and research and development initiatives.

Previous wording

During the three months ended March 31, 2025, net cash used in operating activities was $25.6 million, primarily resulting from our net loss of $22.3 million, which was primarily attributable to our research and development expenses, along with changes in our operating assets and liabilities of $3.5 million, partially offset by $0.3 million of non-cash items.

Current wording

During the six months ended June 30, 2026, net cash used in operating activities was $96.0 million, primarily resulting from our net loss of $120.9 million, which was primarily attributable to our research and development expenses, partially offset by changes in our operating assets and liabilities of $7.6 million and $17.2 million of non-cash items.

Previous wording

During the three months ended March 31, 2026, net cash used in operating activities was $51.2 million, primarily resulting from our net loss of $60.7 million, which was primarily attributable to our research and development expenses, along with changes in our operating assets and liabilities of $0.3 million, partially offset by $9.2 million of non-cash items.

Current wording

During the six months ended June 30, 2025, net cash used in operating activities was $59.5 million, primarily resulting from our net loss of $52.2 million, which was primarily attributable to our research and development expenses, along with changes in our operating assets and liabilities of $8.7 million, partially offset by $1.4 million of non-cash items.

Previous wording

Net cash provided by investing activities was $67.0 million for the three months ended March 31, 2026, compared to net cash provided by investing activities of $37.5 million for the three months ended March 31, 2025. The increase in cash provided by investing activities during the three months ended March 31, 2026 was driven by the maturities of investments.

Current wording

Net cash provided by investing activities was $127.7 million for the six months ended June 30, 2026, compared to net cash provided by investing activities of $54.9 million for the six months ended June 30, 2025. The change in cash provided by investing activities during the six months ended June 30, 2026 was driven by the maturities and redemptions of investments.

Previous wording

Net cash used in financing activities was $6.9 million for the three months ended March 31, 2026, compared to net cash used in financing activities of a de minimis amount for the three months ended March 31, 2025. The increase in cash used in financing activities was due to the payment of employee tax obligations related to vesting of restricted stock units during the three months ended March 31, 2026.

Current wording

Net cash used in financing activities was $6.8 million for the six months ended June 30, 2026, compared to net cash used in financing activities of $0.2 million for the six months ended June 30, 2025. The change in cash used in financing activities was primarily due to the payment of employee tax obligations related to the vesting of restricted stock units during the six months ended June 30, 2026.

Previous wording

We use our capital resources mainly to fund operating expenses, including research and development expenditures. We plan to increase our research and development expenses for the foreseeable future as we continue clinical trial activities, advance our preclinical programs into the clinic and continue to discover and develop additional product candidates. At this time, due to the inherently unpredictable nature of clinical and preclinical development and given the early stage of our product candidates, we cannot reasonably estimate the costs we will incur and the timelines that will be required to complete development, obtain marketing approval and commercialize our current product candidates or any future product candidates, if any. For the same reasons, we are also unable to predict when, if ever, we will generate revenue from product sales or whether, or when, if ever, we may achieve profitability. Clinical and preclinical development timelines, the probability of success, and development costs can differ materially from expectations. In addition, we cannot forecast which product candidates may be subject to future collaborations, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our development plans and capital requirements.

Current wording

We use our capital resources mainly to fund operating expenses, including research and development expenditures. We plan to increase our research and development expenses for the foreseeable future as we continue clinical trial and preclinical activities. At this time, due to the inherently unpredictable nature of clinical and preclinical development and given the early stage of our product candidates, we cannot reasonably estimate the costs that we will incur and the timelines that will be required to complete development, obtain marketing approval and commercialize our current product candidates or any future product candidates, if any. For the same reasons, we are also unable to predict when, if ever, we will generate revenue from product sales or whether, or when, if ever, we may achieve profitability. Clinical and preclinical development timelines, the probability of success, and development costs can differ materially from expectations. In addition, we cannot forecast which product candidates may be subject to future collaborations, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our development plans and capital requirements.

Previous wording

As of March 31, 2026, we had cash, cash equivalents and investments of $395.2 million. Based on our current operational plans and assumptions, we expect that our existing cash, cash equivalents and investments, will be sufficient to fund our operations through 2027. We have based this estimate on assumptions that may prove to be wrong, however, and we could use our capital resources sooner than we expect.

Current wording

As of June 30, 2026, we had cash, cash equivalents and investments of $351.3 million. Based on our current operational plans and assumptions, we expect that our existing cash, cash equivalents and investments, together with the expected proceeds from our 2026 Private Placement, will be sufficient to fund our operations through 2028. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we expect.

Previous wording

the cost of manufacturing clinical and commercial supplies of our current or future product candidates;

Current wording

the costs of manufacturing clinical and commercial supplies of our current or future product candidates;

Previous wording

the revenue, if any, received from commercial sales of our product candidates for which we receive marketing approval;

Current wording

the revenue, if any, received from commercial sales of any of our product candidates for which we receive marketing approval;

Previous wording

the extent to which we acquire or invest in business, products and technologies.

Current wording

the extent to which we acquire or invest in other businesses, products and technologies.

Previous wording

We have a lease for laboratory and office space located in Redwood City, California, with a term that extends to June 2031. We and the lessor have the ability to terminate the lease with 15 months' notice. The lease provides for escalating annualized base rent payments starting at $0.8 million and increasing to $1.2 million in the final year of the lease. Remaining lease payments from April 1, 2026 through the end of the lease term total $5.8 million.

Current wording

We have a lease for office and laboratory space located in Redwood City, California, with a term that was scheduled to continue until June 2031. We and the lessor had the ability to terminate the lease with 15 months' notice, and in June 2026, we provided this notice to the lessor, changing the end of the term of the lease to September 2027. The lease provides for escalating annualized base rent payments starting at $0.8 million and increasing to $1.0 million in the final year of the lease. Remaining lease payments from July 1, 2026 through the end of the lease term total $1.2 million.

Previous wording

We enter into contracts in the normal course of business with CROs and other vendors to assist in the performance of our clinical trials, CMC, research and development and other services and products for operating purposes. These contracts typically do not contain minimum purchase commitments and generally provide for termination on notice. Payments due upon cancellation consist of payments for services provided or expenses incurred to date, including payment of noncancelable obligations of our service providers, up to the date of cancellation, and may also include termination penalties. As of March 31, 2026, the timing, amount or likelihood of such payments are not known.

Current wording

We enter into contracts in the normal course of business with CROs and other vendors to assist in the performance of our clinical trials, CMC, research and development and other services and products for operating purposes. These contracts typically do not contain minimum purchase commitments and generally provide for termination on notice. Payments due upon cancellation consist of payments for services provided or expenses incurred, including noncancelable obligations of our service providers, up to the date of cancellation, and may also include termination penalties. As of June 30, 2026, the timing, amount or likelihood of such payments are not known.

Previous wording

The JOBS Act provides that, among other things, an "emerging growth company" can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. As an emerging growth company, we have elected to take advantage of the extended transition period to comply with new or revised accounting standards and to adopt certain of the reduced disclosure requirements available to emerging growth companies. As a result of the accounting standards election, we will not be subject to the same implementation timing for new or revised accounting standards as other public companies that are not emerging growth companies, which may make comparison of our financials to those of other public companies more difficult. We may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies. We intend to rely on certain of the other exemptions and reduced reporting requirements provided by the JOBS Act. As an emerging growth company, we are not required to, among other things, (i) provide an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b), and (ii) comply with any requirement that may be adopted by the PCAOB regarding a supplement to the auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis).

Current wording

The Jumpstart Our Business Startups Act, or JOBS Act, provides that, among other things, an "emerging growth company" can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. As an emerging growth company, we have elected to take advantage of the extended transition period to comply with new or revised accounting standards and to adopt certain of the reduced disclosure requirements available to emerging growth companies. As a result of the accounting standards election, we will not be subject to the same implementation timing for new or revised accounting standards as other public companies that are not emerging growth companies, which may make comparison of our financials to those of other public companies more difficult. We may choose to adopt early any new or revised accounting standards whenever such early adoption is permitted for private companies. We intend to rely on certain of the other exemptions and reduced reporting requirements provided by the JOBS Act. As an emerging growth company, we are not required to, among other things, (i) provide an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b), and (ii) comply with any requirement that may be adopted by the Public Company Accounting Oversight Board, or PCAOB, regarding a supplement to the auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis).

Previous wording

We will remain an emerging growth company until the earliest of (i) December 31, 2030, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act of 1934, as amended, or the Exchange Act, which would occur if the market value of our common stock held by non-affiliates exceeded $700 million as of the last business day of the second fiscal quarter of such year (and we have been a public company for at least 12 months and have filed one annual report on Form 10-K) or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

Current wording

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year following the fifth anniversary our IPO, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act of 1934, as amended, or the Exchange Act, which would occur if the market value of our common stock held by non-affiliates exceeded $700 million as of the last business day of the second fiscal quarter of such year (and we have been a public company for at least 12 months, have filed one annual report on Form 10-K and are not to eligible to use the requirements for smaller reporting companies under the revenue test under Rule 12b-2) or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

Previous wording

We are also a "smaller reporting company," as defined in Rule 12b-2 under the Exchange Act. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million.

Current wording

We are also a "smaller reporting company," as defined in Rule 12b-2 under the Exchange Act. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue is less than $100 million and the market value of our stock held by non-affiliates is less than $700 million.