ClearPoint Neuro, Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed consolidated financial statements and the related notes thereto appearing in Part I, Item 1 of this Quarterly Report. This discussion and analysis contains forward-looking statements that are based upon current expectations and involve risks, assumptions and uncertainties. You should review the section titled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 10-K") and in Part II, Item 1.A of this Quarterly Report for a discussion of important risk factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements described in the following discussion and analysis. In addition, historical results and trends that might appear in this Quarterly Report should not be interpreted as being indicative of future operations.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed consolidated financial statements and the related notes thereto appearing in Part I, Item 1 of this Quarterly Report. This discussion and analysis contains forward-looking statements that are based upon current expectations and involve risks, assumptions and uncertainties. You should review the section titled “Risk Factors” in our 2025 Form 10-K and in Part II, Item 1A of this Quarterly Report for a discussion of important risk factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements described in the following discussion and analysis. In addition, historical results and trends that might appear in this Quarterly Report should not be interpreted as being indicative of future operations.

Previous wording

In 2010, we received 510(k) clearance from the FDA to market our ClearPoint system in the U.S. for general neurosurgical procedures; in February 2011 and May 2018, we also obtained CE marking for our ClearPoint system and SmartFlow Neuro cannula, respectively; and in June 2020 we obtained CE marking for version 2.0 of our ClearPoint software and our Inflexion head fixation frame. In January 2021, we received 510(k) clearance for the SmartFrame Array Neuro Navigation System. In September 2022, the ClearPoint Prism Neuro Laser Therapy System, for which we have exclusive global rights to commercialize, received 510(k) clearance through our Swedish partner, CLS. The Prism laser is the first therapy product we have commercialized. In January 2024, we received 510(k) clearance from the FDA for the SmartFrame OR Stereotactic System.

Current wording

In 2010, we received 510(k) clearance from the FDA to market our ClearPoint system in the U.S. for general neurosurgical procedures; in February 2011 and May 2018, we also obtained CE marking for our ClearPoint system and SmartFlow Neuro cannula, respectively; and in June 2020 we obtained CE marking for version 2.0 of our ClearPoint software and our Inflexion head fixation frame. In January 2021, we received 510(k) clearance for the SmartFrame Array Neuro Navigation System. In September 2022, the ClearPoint Prism Neuro Laser Therapy System, for which we have exclusive global rights to commercialize, received 510(k) clearance through our Swedish partner, CLS. In January 2024, we received 510(k) clearance from the FDA for the SmartFrame OR Stereotactic System.

Previous wording

Our neurosurgery navigation and therapy revenue primarily consists of disposable product commercial sales related to cases utilizing the ClearPoint and IRRA flow systems. Generating recurring revenue from the sale of disposable products is an important part of our business model. Future revenue from sales of such products is difficult to predict and may not be sufficient to offset our continuing research and development expenses and our increasing selling, general and administrative expenses. As a result of the IRRAS acquisition, revenue is expected to grow over the coming years due to a larger combined organization, expanded product offerings, and increased customer reach, both in the U.S. and internationally.

Current wording

Our neurosurgery navigation and therapy revenue primarily consists of disposable product commercial sales related to cases utilizing the ClearPoint and IRRA flow systems. Generating recurring revenue from the sale of disposable products is an important part of our business model. Future revenue from sales of such products is difficult to predict and may not be sufficient to offset our continuing research and development expenses and our increasing selling, general and administrative expenses. As a result of the IRRAS acquisition, we expect revenue to grow over the coming years due to a larger combined organization, expanded product offerings, and increased customer reach, both in the U.S. and internationally, although there can be no assurance that we will realize the anticipated benefits of the acquisition.

Previous wording

Our biologics and drug delivery revenue comes from sales of products, including disposable products, and services related to customer-sponsored preclinical and clinical trials utilizing our products. Our biologics and drug delivery customers are pharmaceutical and biotech companies, academic institutions, and customer-sponsored contract research organizations that are developing methods to deliver a wide variety of molecules, genes or proteins to targeted brain tissue or structures (our “Partners”) that would need to bypass the blood-brain barrier for the treatment of a variety of disorders. This is a novel area in which commercialization must be preceded by FDA-mandated clinical trials, which are expensive and time consuming to conduct, and for which the commercial success is uncertain, pending, in part, on the outcome of those trials. The number of Partner relationships is of importance as we recognize the possibility that some Partners’ research will reach commercial success, and others may not. To the extent our Partners achieve commercial success, our expectation is that we will share in such success through our Partners’ use of our products and services in their delivery of therapies. At June 30, 2026, we had more than 60 Partners, similar to the number of Partners as of the same date in 2025.

Current wording

Our biologics and drug delivery revenue comes from sales of products, including disposable products, and services related to customer-sponsored preclinical and clinical trials utilizing our products. Our biologics and drug delivery customers are pharmaceutical and biotech companies, academic institutions, and customer-sponsored contract research organizations that are developing methods to deliver a wide variety of molecules, genes or proteins to targeted brain tissue or structures (our “Partners”) that would need to bypass the blood-brain barrier for the treatment of a variety of disorders. This is a novel area in which commercialization must be preceded by FDA-mandated clinical trials, which are expensive and time consuming to conduct, and for which the commercial success is uncertain, pending, in part, the outcome of those trials. The number of Partner relationships is of importance as we recognize the possibility that some Partners’ research will reach commercial success, and others may not. To the extent our Partners achieve commercial success, our expectation is that we will share in such success through our Partners’ use of our products and services in their delivery of therapies. At September 30, 2026, we had more than 60 Partners, similar to the number of Partners as of the same date in 2025.

Previous wording

Substantially all our revenue for the three and six months ended June 30, 2026 and 2025 relates to: (i) sales of our ClearPoint and IRRA flow system products and related services; and (ii) consulting services provided to our biologics and drug delivery customers. Our product revenue was $7.4 million and $16.2 million for the three and six months ended June 30, 2026, respectively, and was almost entirely related to our ClearPoint system. Our service revenue was $3.5 million and $6.8 million for the three and six months ended June 30, 2026, respectively, of which 88% was related to the biologics and drug delivery service line.

Current wording

Substantially all our revenue for the three and nine months ended September 30, 2026 and 2025 relates to: (i) sales of our ClearPoint and IRRA flow system products and related services; and (ii) consulting services provided to our biologics and drug delivery customers. Our product revenue was $7.9 million and $24.1 million for the three and nine months ended September 30, 2026, respectively. Our service revenue was $4.2 million and $11.0 million for the three and nine months ended September 30, 2026, respectively, of which 89% and 88%, respectively, were related to the biologics and drug delivery service line.

Previous wording

There have been no significant changes in our critical accounting policies and estimates during the six months ended June 30, 2026, as compared to the critical accounting policies and estimates described in our 2025 10-K.

Current wording

There have been no significant changes in our critical accounting policies and estimates during the nine months ended September 30, 2026, as compared to the critical accounting policies and estimates described in our 2025 Form 10-K.

Previous wording

Revenue. Total revenue was $10.9 million for the three months ended June 30, 2026, and $9.2 million for the three months ended June 30, 2025, which represents an increase of $1.7 million, or 18%.

Current wording

Revenue. Total revenue was $12.1 million for the three months ended September 30, 2026, and $8.9 million for the three months ended September 30, 2025, which represents an increase of $3.2 million, or 36%.

Previous wording

Neurosurgery navigation and therapy revenue increased 71% to $11.4 million for the six months ended June 30, 2026, from $6.7 million for the same period in 2025. The increase is driven primarily by additional revenues due to sales of the IRRA flow product as well as the introduction of our 3.0 operating room navigation software, which has positively impacted procedural volumes in the operating room during the six months ended June 30, 2026, compared to the same period in 2025. We acquired the IRRA flow product in connection with our acquisition of IRRAS in the fourth quarter of 2025.

Current wording

Neurosurgery navigation and therapy revenue increased 59% to $5.4 million for the three months ended September 30, 2026, from $3.4 million for the same period in 2025. The increase is driven primarily by additional revenues due to sales of the IRRA flow product, which we acquired in connection with our acquisition of IRRAS in the fourth quarter of 2025.

Previous wording

Capital equipment and software revenue increased 24% to $1.3 million for the three months ended June 30, 2026, from $1.0 million for the same period in 2025 primarily due to an increase in placements of ClearPoint navigation capital and software, IRRA flow control units, and Prism laser units.

Current wording

Capital equipment and software revenue increased 68% to $1.7 million for the three months ended September 30, 2026, from $1.0 million for the same period in 2025 primarily due to an increase in placements of ClearPoint navigation capital and software, IRRA flow control units, and Prism laser units.

Previous wording

Cost of Revenue and Gross Profit. Cost of revenue was $4.2 million, resulting in gross profit of $6.7 million for the three months ended June 30, 2026, and was $3.7 million, resulting in gross profit of $5.6 million for the three months ended June 30, 2025. Gross margin was 62% for the three months ended June 30, 2026, as compared to 60% in the same period in 2025. The increase in gross margin is primarily due to lower excess and obsolete inventory for the three months ended June 30, 2026, as compared to the same period in 2025.

Current wording

Cost of Revenue and Gross Profit. Cost of revenue was $5.0 million, resulting in gross profit of $7.1 million for the three months ended September 30, 2026, and was $3.3 million, resulting in gross profit of $5.6 million for the three months ended September 30, 2025. Gross margin was 58% for the three months ended September 30, 2026, compared to 63% in the same period in 2025. The decrease in gross margin is primarily due to overhead costs at the new CAL facility and additional amortization expense of acquired intangible assets, partially offset by a decrease in other cost of revenue, for the three months ended September 30, 2026, as compared to the same period in 2025.

Previous wording

Research and Development Costs. Research and development costs were $4.6 million for the three months ended June 30, 2026, compared to $3.8 million for the same period in 2025, an increase of $0.8 million, or 21%. The increase was due primarily to higher personnel costs of $0.8 million.

Current wording

Research and Development Costs. Research and development costs were $4.0 million for the three months ended September 30, 2026, compared to $3.5 million for the same period in 2025, an increase of $0.6 million, or 16%. The increase was due primarily to higher personnel costs of $0.6 million.

Previous wording

Sales and Marketing Expenses. Sales and marketing expenses were $6.8 million for the three months ended June 30, 2026, compared to $4.0 million for the same period in 2025, an increase of $2.7 million, or 68%. This increase was due primarily to additional personnel costs of $1.8 million and increases in travel costs of $0.3 million, resulting from the expansion of our clinical and sales teams. The increase was also driven by additional amortization expense of acquired intangible assets of $0.2 million and marketing material costs of $0.2 million.

Current wording

Sales and Marketing Expenses. Sales and marketing expenses were $5.5 million for the three months ended September 30, 2026, compared to $3.8 million for the same period in 2025, an increase of $1.7 million, or 44%. This increase was due primarily to additional personnel costs of $1.2 million, an increase in travel costs of $0.2 million, resulting from the expansion of our clinical and sales teams, and additional amortization expense of acquired intangible assets of $0.2 million.

Previous wording

General and Administrative Expenses. General and administrative expenses were $5.6 million for the three months ended June 30, 2026, compared to $3.4 million for the same period in 2025, an increase of $2.2 million, or 64%. This increase was due primarily to increases in occupancy costs of $0.7 million, professional service fees of $0.5 million, personnel costs of $0.3 million, general corporate costs of $0.3 million, and information technology and software costs of $0.2 million.

Current wording

General and Administrative Expenses. General and administrative expenses were $3.8 million for the three months ended September 30, 2026, compared to $3.6 million for the same period in 2025, an increase of $0.3 million, or 7%. This increase was due primarily to increases in occupancy costs of $0.5 million, information technology and software costs of $0.2 million, and general corporate costs of $0.1 million. These were partially offset by a decrease in bad debt expense of $0.6 million.

Previous wording

Interest Income. Interest income was $0.3 million for each of the three months ended June 30, 2026 and 2025.

Current wording

Interest Income. Interest income was $0.3 million for the three months ended September 30, 2026, compared to $0.4 million for the same period in 2025, a decrease of $0.1 million, which is not significant.

Previous wording

Interest Expense. Interest expense was $1.4 million for the three months ended June 30, 2026, compared to $0.4 million for the same period in 2025, an increase of $1.0 million. Interest expense increased due to the issuance of notes payable in May and November 2025. See Note 8 to the condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information with respect to the notes payable issued in May and November 2025.

Current wording

Interest Expense. Interest expense was $1.4 million for the three months ended September 30, 2026, compared to $0.9 million for the same period in 2025, an increase of $0.5 million, or 54%. Interest expense increased due to the issuance of notes payable in May and November 2025. See Note 8 to the condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information with respect to the notes payable issued in May and November 2025.

Previous wording

Revenue. Total revenue was $23.0 million for the six months ended June 30, 2026, and $17.7 million for the six months ended June 30, 2025, which represents an increase of $5.3 million, or 30%.

Current wording

Revenue. Total revenue was $35.1 million for the nine months ended September 30, 2026, and $26.6 million for the nine months ended September 30, 2025, which represents an increase of $8.5 million, or 32%.

Previous wording

Biologics and drug delivery revenue decreased to $8.8 million for the six months ended June 30, 2026 from $9.4 million for the six months ended June 30, 2025. This decrease is attributable to lower product revenue due to a single customer order that occurred in the six-month period of the prior year and did not recur in the current period. In general, this category of revenue is impacted by timing of our Partners’ drug development programs and tends to be uneven quarter to quarter.

Current wording

Biologics and drug delivery revenue decreased to $13.7 million for the nine months ended September 30, 2026 from $13.8 million for the nine months ended September 30, 2025. This decrease is primarily attributable to lower product revenue due to a single customer order that occurred in the nine-month period of the prior year and did not recur in the current period. In general, this category of revenue is impacted by timing of our Partners’ drug development programs and tends to be uneven quarter to quarter. This was partially offset by higher service revenue.

Previous wording

Neurosurgery navigation and therapy revenue increased 62% to $5.6 million for the three months ended June 30, 2026, from $3.4 million for the same period in 2025. The increase is driven primarily by additional revenues due to sales of the IRRA flow product as well as the introduction of our 3.0 operating room navigation software, which has positively impacted procedural volumes in the operating room during the three months ended June 30, 2026, compared to the same period in 2025. We acquired the IRRA flow product in connection with our acquisition of IRRAS in the fourth quarter of 2025.

Current wording

IRRA flow product as well as the introduction of our 3.0 operating room navigation software, which has positively impacted procedural volumes in the operating room during the nine months ended September 30, 2026, compared to the same period in 2025. We acquired the IRRA flow product in connection with our acquisition of IRRAS in the fourth quarter of 2025.

Previous wording

Capital equipment and software revenue increased 75% to $2.7 million for the six months ended June 30, 2026, from $1.6 million for the same period in 2025 primarily due to an increase in placements of ClearPoint navigation capital and software, IRRA flow control units, and Prism laser units.

Current wording

Capital equipment and software revenue increased 72% to $4.5 million for the nine months ended September 30, 2026, from $2.6 million for the same period in 2025 primarily due to an increase in placements of ClearPoint navigation capital and software, IRRA flow control units, and Prism laser units.

Previous wording

Cost of Revenue and Gross Profit. Cost of revenue was $8.5 million, resulting in gross profit of $14.5 million for the six months ended June 30, 2026, and was $7.0 million, resulting in gross profit of $10.7 million for the six months ended June 30, 2025. Gross margin was 63% for the six months ended June 30, 2026, as compared to 60% in the same period in 2025. The increase in gross margin is primarily due to lower excess and obsolete inventory for the six months ended June 30, 2026, as compared to the same period in 2025.

Current wording

Cost of Revenue and Gross Profit. Cost of revenue was $13.6 million, resulting in gross profit of $21.5 million for the nine months ended September 30, 2026, and was $10.3 million, resulting in gross profit of $16.3 million for the nine months ended September 30, 2025. Gross margin was 61% for each of the nine months ended September 30, 2026 and 2025.

Previous wording

Research and Development Costs. Research and development costs were $9.2 million for the six months ended June 30, 2026, compared to $7.2 million for the same period in 2025, an increase of $1.9 million, or 27%. The increase was due primarily to increases in personnel costs of $1.4 million, repair costs of $0.2 million, quality audit fees of $0.1 million, and travel costs of $0.1 million.

Current wording

Research and Development Costs. Research and development costs were $13.2 million for the nine months ended September 30, 2026, compared to $10.7 million for the same period in 2025, an increase of $2.5 million, or 24%. The increase was due primarily to increases in personnel costs of $2.1 million, repair costs of $0.2 million, and travel costs of $0.1 million.

Previous wording

Sales and Marketing Expenses. Sales and marketing expenses were $13.5 million for the six months ended June 30, 2026, compared to $7.9 million for the same period in 2025, an increase of $5.6 million, or 72%. This increase was due primarily to additional personnel costs of $3.7 million and increases in travel costs of $0.8 million, resulting from the expansion of our clinical and sales teams. The increase was also driven by additional amortization expense of acquired intangible assets of $0.4 million and marketing material costs of $0.4 million.

Current wording

Sales and Marketing Expenses. Sales and marketing expenses were $19.0 million for the nine months ended September 30, 2026, compared to $11.7 million for the same period in 2025, an increase of $7.3 million, or 63%. This increase was due primarily to additional personnel costs of $4.9 million and increases in travel costs of $1.0 million, resulting from the expansion of our clinical and sales teams. The increase was also driven by additional amortization expense of acquired intangible assets of $0.6 million and marketing material costs of $0.4 million.

Previous wording

General and Administrative Expenses. General and administrative expenses were $10.6 million for the six months ended June 30, 2026, compared to $7.5 million for the same period in 2025, an increase of $3.1 million, or 41%. This increase was due primarily to increases in occupancy costs of $1.3 million, personnel costs of $0.5 million, professional service fees of $0.5 million, information technology and software costs of $0.4 million, and general corporate costs of $0.4 million.

Current wording

General and Administrative Expenses. General and administrative expenses were $14.4 million for the nine months ended September 30, 2026, compared to $11.1 million for the same period in 2025, an increase of $3.3 million, or 30%. This increase was due primarily to increases in occupancy costs of $1.9 million, information technology and software costs of $0.6 million, general corporate costs of $0.6 million, personnel costs of $0.5 million, and professional service fees of $0.4 million. These were partially offset by a decrease in bad debt expense of $0.9 million.

Previous wording

Interest Income. Interest income was $0.6 million for the six months ended June 30, 2026, compared to $0.4 million for the same period in 2025, an increase of $0.2 million, or 47%. The increase is due to higher investment in U.S. government debt securities.

Current wording

Interest Income. Interest income was $0.9 million for the nine months ended September 30, 2026, compared to $0.8 million for the same period in 2025, an increase of $0.1 million, or 12%. The increase is due to higher investment in U.S. government debt securities.

Previous wording

Interest Expense. Interest expense was $2.8 million for the six months ended June 30, 2026, compared to $0.4 million for the same period in 2025, an increase of $2.4 million. Interest expense increased due to the issuance of notes payable in May and November 2025. See Note 8 to the condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information with respect to the notes payable issued in May and November 2025.

Current wording

Interest Expense. Interest expense was $4.2 million for the nine months ended September 30, 2026, compared to $1.3 million for the same period in 2025, an increase of $2.9 million. Interest expense increased due to the issuance of notes payable in May and November 2025. See Note 8 to the condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information with respect to the notes payable issued in May and November 2025.

Previous wording

We have incurred net losses since our inception as we have devoted substantial efforts to research and development, which has resulted in a cumulative deficit at June 30, 2026 of $237.8 million. Our use of cash from operations amounted to $15.0 million for the six months ended June 30, 2026, and $23.9 million for the year ended December 31, 2025. Our primary uses of cash and operating expenses relate to paying employees and consultants, marketing our products, and supporting our research and development of future product offerings. Since inception, we have financed our operations principally from the sale of equity securities and the issuance of notes payable.

Current wording

We have incurred net losses since our inception as we have devoted substantial efforts to research and development, which has resulted in a cumulative deficit at September 30, 2026 of $245.3 million. Our use of cash from operations amounted to $20.1 million for the nine months ended September 30, 2026, and $23.9 million for the year ended December 31, 2025. Our primary uses of cash and operating expenses relate to paying employees and consultants, marketing our products, and supporting our research and development of future product offerings. Since inception, we have financed our operations principally from the sale of equity securities and the issuance of notes payable.

Previous wording

Also in May 2025, we entered into a note purchase agreement under which we may sell tranches of notes in an aggregate principal amount of up to $105.0 million. As of June 30, 2026, we have received net proceeds of approximately $48.1 million from the sale of two notes thereunder. See Note 8 to the condensed consolidated financial statements included elsewhere in this Quarterly Report.

Current wording

Also in May 2025, we entered into a note purchase agreement (the “2025 NPA”) under which we may sell tranches of notes (the “Notes”) in an aggregate principal amount of up to $105.0 million. As of September 30, 2026, we had received net proceeds of approximately $48.1 million from the sale of two Notes thereunder. Interest on the Notes is payable 50% in cash and 50% in kind during each Note’s paid-in-kind (“PIK”) period. The last scheduled PIK payment on the First Purchase Note occurred in September 2026, and the last scheduled PIK payment on the Third Tranche Note (each as defined in Note 8) will occur in March 2027. We may extend each PIK period by up to two quarters by notifying the purchaser agent no later than one business day before the applicable interest payment date. After each PIK period ends, interest on that Note will be payable entirely in cash, which will increase our cash used to service interest obligations. In addition, beginning with the first fiscal quarter of 2027, we will make quarterly revenue participation payments based on Net Revenue (as defined in the 2025 NPA). For additional information regarding the 2025 NPA and the Notes, see Note 8 to the condensed consolidated financial statements included elsewhere in this Quarterly Report.

Previous wording

In November 2024, we established an at-the-market equity offering program under which we may offer and sell, from time to time, shares of our common stock having aggregate sales proceeds of up to $50.0 million. As of June 30, 2026, we had not sold any shares of common stock under our at-the-market equity offering program. See Note 10 to the condensed consolidated financial statements included elsewhere in this Quarterly Report.

Current wording

In November 2024, we established an ATM equity offering program under which we may offer and sell, from time to time, shares of our common stock having aggregate sales proceeds of up to $50.0 million. During the three and nine months ended September 30, 2026, 1,530,000 shares were sold under the ATM equity offering program for net proceeds of $22.0 million, after deducting issuance costs of $0.5 million. As of September 30, 2026, $27.5 million remained unsold and available for sale under the ATM equity offering program. See Note 10 to the condensed consolidated financial statements included elsewhere in this Quarterly Report.

Previous wording

Our cash and cash equivalents totaled $29.4 million at June 30, 2026. In management’s opinion, based on our current forecasts, our cash and cash equivalent balances at June 30, 2026 are sufficient to support our operations and meet our obligations for at least the next twelve months from the date of issuance of the condensed consolidated financial statements included elsewhere in this Quarterly Report.

Current wording

Our cash and cash equivalents totaled $46.2 million at September 30, 2026. In management’s opinion, based on our current forecasts, our cash and cash equivalent balances at September 30, 2026 are sufficient to support our operations and meet our obligations for at least the next twelve months from the date of issuance of the condensed consolidated financial statements included elsewhere in this Quarterly Report.

Previous wording

Cash activity for the six months ended June 30, 2026 and 2025 is summarized as follows:

Current wording

Cash activity for the nine months ended September 30, 2026 and 2025 is summarized as follows:

Previous wording

Net Cash Used in Operating Activities. Net cash used in operating activities for the six months ended June 30, 2026 was $15.0 million, an increase of $6.3 million from the six months ended June 30, 2025. This increase was primarily due to a higher net loss of $9.0 million, which was partially offset by higher non-cash expenses of $2.5 million attributed to amortization of intangible assets, share-based compensation, and payment-in-kind interest. We expect our net cash used in operating activities to decrease during the remainder of 2026 as we benefit from the completion of the IRRAS integration.

Current wording

Net Cash Used in Operating Activities. Net cash used in operating activities for the nine months ended September 30, 2026 was $20.1 million, an increase of $8.2 million from the nine months ended September 30, 2025. This increase was primarily due to a higher net loss of $10.6 million, which was partially offset by higher non-cash expenses of $3.2 million primarily attributed to amortization of intangible assets, amortization of lease right-of-use assets, net of accretion in lease liabilities, and payment-in-kind interest.

Previous wording

Net Cash Used in Investing Activities. Net cash used in investing activities for the six months ended June 30, 2026 and June 30, 2025 was $0.9 million and $0.3 million, respectively, and related to equipment acquisitions.

Current wording

Net Cash Used in Investing Activities. Net cash used in investing activities for the nine months ended September 30, 2026 and September 30, 2025 was $1.0 million and $0.5 million, respectively, and related to equipment acquisitions.

Previous wording

Net Cash (Used in) Provided by Financing Activities. Net cash used in financing activities for the six months ended June 30, 2026 consisted primarily of $2.0 million in payments for taxes related to shares withheld in connection with the vesting of restricted stock awards; partially offset by $0.6 million of proceeds from stock option exercises and $0.5 million of proceeds from the issuance of common stock under our employee stock purchase plan.

Current wording

Net Cash Provided by Financing Activities. Net cash provided by financing activities for the nine months ended September 30, 2026 consisted primarily of $22.0 million in proceeds from the issuance of common stock under the ATM Agreement, net of issuance costs of $0.5 million, $0.7 million of proceeds from stock option exercises, and $0.5 million of proceeds from the issuance of common stock under our employee stock purchase plan; partially offset by $2.0 million in payments for taxes related to shares withheld in connection with the vesting of restricted stock awards.

Previous wording

Net cash provided by financing activities for the six months ended June 30, 2025 consisted primarily of proceeds, net of financing costs and discount, of $28.7 million from the issuance of a note payable; proceeds, net of offering costs, of $3.3 million from the registered direct offering of common stock; partially offset by $1.7 million in payments for taxes related to shares withheld in connection with the vesting of restricted stock awards.

Current wording

Net cash flows provided by financing activities for the nine months ended September 30, 2025 consisted primarily of proceeds, net of financing costs and discount, of $28.7 million from the issuance of the note payable; proceeds, net of offering costs, of $3.3 million from the registered direct offering of common stock; partially offset by $1.7 million in payments for taxes related to shares withheld in connection with the vesting of restricted stock awards.

Previous wording

To date, we have not achieved profitability. We expect to continue to incur net losses as we continue our efforts to expand the commercialization of our products and services and pursue additional applications for our technology platforms. Our cash balances are primarily held in a variety of demand accounts with a view to liquidity and capital preservation.

Current wording

To date, we have not achieved profitability. We expect to continue to incur net losses as we continue our efforts to expand the commercialization of our products and services and pursue additional applications for our technology platforms. Our cash and cash equivalents are primarily held in a variety of demand accounts with a view to liquidity and capital preservation.

Previous wording

Our short- and long-term liquidity requirements include the obligations under notes payable and under lease arrangements related to our office and manufacturing facilities under non-cancellable operating leases. See Notes 8, 9, and 12 to the condensed consolidated financial statements included elsewhere in this Quarterly Report. We typically enter into short-term agreements with vendors and suppliers of goods and services in the normal course of business through purchase orders, which are settled in cash upon our receipt of such goods or services. We may also at times enter into long-term commitments or license and collaboration agreements which require commitments that are noncancellable. See Note 10 to the consolidated financial statements included in our 2025 10-K.

Current wording

Our short- and long-term liquidity requirements include the obligations under notes payable and under lease arrangements related to our office and manufacturing facilities under non-cancellable operating leases. See Notes 8 and 9 to the condensed consolidated financial statements included elsewhere in this Quarterly Report. We typically enter into short-term agreements with vendors and suppliers of goods and services in the normal course of business through purchase orders, which are settled in cash upon our receipt of such goods or services. We may also at times enter into long-term commitments or license and collaboration agreements which require commitments that are noncancellable. See Note 9 to the condensed consolidated financial statements included elsewhere in this Quarterly Report.