Faeth Therapeutics, Inc.

Previous wording

We are a clinical-stage biotechnology company focused on improving outcomes for cancer patients through multi-node inhibition of critical oncogenic pathways. On February 17, 2026, we completed the acquisition of Faeth Therapeutics, a clinical-stage biotechnology company developing multi-node therapies targeting tumor metabolism and signaling (the “Acquisition”), and received $200 million in gross proceeds from the 2026 Private Placement from a broad syndicate of institutional investors. Effective June 15, 2026, we changed our corporate name from Sensei Biotherapeutics, Inc. to Faeth Therapeutics, Inc. The acquisition brought Faeth's lead asset, PIKTOR, a proprietary investigational all-oral combination of serabelisib and sapanisertib that inhibits multiple nodes of the PI3K/AKT/mTOR pathway, into our pipeline. For additional information regarding the terms of the acquisition and the concurrent financing, see Note 3 to the condensed consolidated financial statements.

Current wording

We are a clinical-stage biotechnology company focused on improving outcomes for cancer patients through multi-node inhibition of critical oncogenic pathways. On February 17, 2026, we completed the acquisition of Faeth Holdings Therapeutics, Inc. and its wholly owned subsidiary, Faeth Therapeutics, LLC (together, “Legacy Faeth” or “Faeth”), a clinical-stage biotechnology company developing multi-node therapies targeting tumor metabolism and signaling (the “Acquisition”), and received $200 million in gross proceeds from the 2026 Private Placement from a broad syndicate of institutional investors. Effective June 15, 2026, we changed our corporate name from Sensei Biotherapeutics, Inc. to Faeth Therapeutics, Inc. The Acquisition brought Legacy Faeth's lead asset, PIKTOR, a proprietary investigational all-oral combination of serabelisib and sapanisertib that inhibits multiple nodes of the PI3K/AKT/mTOR pathway, into our pipeline. For additional information regarding the terms of the Acquisition and the 2026 Private Placement, see Note 3 to the condensed consolidated financial statements.

Previous wording

Following the Acquisition, our lead program is PIKTOR, an oral multi-node inhibitor of the PI3K/AKT/mTOR pathway in development for endometrial and breast cancer. The PI3K/AKT/mTOR pathway is dysregulated in up to 50% of all solid tumors, making it one of the most prevalent therapeutic targets in oncology. Our core thesis is that simultaneously suppressing multiple pathway nodes can produce deeper, more durable tumor suppression than approved therapies that target only a single node. PIKTOR is currently being evaluated in an ongoing Phase 2 trial in second-line advanced endometrial cancer (Study FTH-PIK-201), with topline data anticipated by year-end. Additionally, in April 2026 the first patient was dosed in our Phase 1b/2 trial in HR+/HER2- advanced breast cancer (Study FTH-PIK-101), from which we expect to report interim data in 2027. We believe the $200 million in gross financing proceeds, together with our existing cash, cash equivalents and marketable securities, will be sufficient to fund operations through these key clinical milestones.

Current wording

Following the Acquisition, our lead program is PIKTOR, an oral multi-node inhibitor of the PI3K/AKT/mTOR pathway in development for endometrial and breast cancer. The PI3K/AKT/mTOR pathway is dysregulated in up to 50% of all solid tumors, making it one of the most prevalent therapeutic targets in oncology. Our core thesis is that simultaneously suppressing multiple pathway nodes can produce deeper, more durable tumor suppression than approved therapies that target only a single node. PIKTOR is currently being evaluated in an ongoing Phase 2 trial in second-line advanced endometrial cancer (Study FTH-PIK-201), with topline data anticipated by year-end 2026. In August 2026, the FDA granted Fast Track designation to PIKTOR in combination with paclitaxel for the treatment of patients with advanced or recurrent endometrial cancer whose tumors harbor a PI3K/AKT/mTOR pathway alteration and who have previously been treated with platinum-based chemotherapy and an immune checkpoint inhibitor. Additionally, in April 2026 the first patient was dosed in our Phase 1b/2 trial in HR+/HER2- advanced breast cancer (Study FTH-PIK-101), from which we expect to report interim data in 2027. We believe our existing cash, cash equivalents and marketable securities, will be sufficient to fund operations through these key clinical milestones.

Previous wording

We have incurred significant operating losses since our inception and expect to continue to incur losses for the foreseeable future. Our net loss was $186.2 million and $11.8 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $469.4 million and cash, cash equivalents and marketable securities of $186.4 million, which includes $183.1 million in net proceeds received in the 2026 Private Placement. The increase in our net loss for the six months ended June 30, 2026 compared to the same prior year period was primarily attributable to $133.0 million of acquired in-process research and development expense recognized in connection with the Acquisition, as well as increased research and development and general and administrative expenses resulting from the integration of Faeth's operations, including stock-based compensation expense related to the accelerated vesting of Faeth employee stock options and related tax gross-up payments.

Current wording

We have incurred significant operating losses since our inception and expect to continue to incur losses for the foreseeable future. Our net loss was $206.6 million and $16.4 million for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, we had an accumulated deficit of $489.8 million and cash, cash equivalents and marketable securities of $174.8 million. The increase in our net loss for the nine months ended September 30, 2026 compared to the same prior year period was primarily attributable to $133.0 million of acquired in-process research and development expense recognized in connection with the Acquisition, as well as increased research and development and general and administrative expenses resulting from the integration of Faeth's operations.

Previous wording

Our research and development expense consists of expenses incurred in connection with the discovery and development of our product candidates. These expenses include:

Current wording

Our research and development expense consists of expenses incurred in connection with the discovery, pre-clinical and clinical development of our product candidates. These expenses include:

Previous wording

employee-related expenses, including salaries, bonuses, benefits and stock-based compensation, severance costs and other related costs for those employees engaged in the research and development function;

Current wording

employee-related expenses, including salaries, bonuses, benefits and non-cash stock-based compensation, severance costs and other related costs for those employees engaged in the research and development function;

Previous wording

Our expenditures are subject to additional uncertainties, including the terms and timing of regulatory approvals. We may never succeed in achieving regulatory approval for any of our product candidates. We may obtain unexpected results from our clinical trials. We may elect to discontinue, delay or modify clinical trials of some product candidates or focus on others. A change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate. For example, if the FDA or other regulatory authorities were to require us to conduct clinical trials beyond those that we currently anticipate, or if we experience significant delays in enrollment in any of our clinical trials, we could be required to expend significant additional financial resources and time on the completion of clinical development. Product commercialization will take several years and significant additional development costs.

Current wording

Our expenditures are subject to additional uncertainties, including the terms and timing of regulatory approvals. We may never succeed in achieving regulatory approval for any of our product candidates. We may obtain unexpected results from our clinical trials. We may elect to discontinue, delay or modify clinical trials of some product candidates or focus on others. A change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate. For example, if the FDA or other regulatory authorities require us to conduct clinical trials beyond those that we currently anticipate, or if we experience significant delays in enrollment in any of our clinical trials, we could be required to expend significant additional financial resources and time on the completion of clinical development. Product commercialization will take several years and significant additional development costs.

Previous wording

General and administrative expenses consist principally of salaries and related costs for personnel in executive, administrative, finance and legal functions, including stock-based compensation, travel and recruiting expenses. Other general and administrative expenses include facility related costs, patent filing and prosecution costs and professional fees for legal, auditing and tax services, and insurance costs.

Current wording

General and administrative expenses consist principally of salaries and related costs for personnel in executive, administrative, finance and legal functions, including non-cash stock-based compensation, travel and recruiting expenses. Other general and administrative expenses include facility related costs, patent filing and prosecution costs and professional fees for legal, auditing and tax services, and insurance costs.

Previous wording

Our other income (expense) consists of accretion on short-term investments, interest income (expense), gain or loss on fixed asset disposal, and changes in fair value of warrant liabilities.

Current wording

Our other (expense) income, net consists of accretion on short-term investments, interest income (expense), gain or loss on fixed asset disposal, and changes in fair value of warrant liabilities.

Previous wording

General and administrative expenses were $9.2 million for the three months ended June 30, 2026, compared to $2.7 million for the three months ended June 30, 2025. The increase of $6.5 million was primarily driven by $3.6 million of higher personnel costs, including stock-based compensation and incentives, $1.6 million of increased external administrative fees, $1.1 million of higher consulting expense and $0.2 million of higher licensing fees.

Current wording

General and administrative expenses were $10.4 million for the three months ended September 30, 2026, compared to $2.3 million for the three months ended September 30, 2025. The increase of $8.0 million was primarily driven by $6.2 million of higher personnel costs, including non-cash stock-based compensation and incentives, $1.1 million of increased external administrative fees, primarily higher legal fees, $0.4 million of higher consulting expense, $0.2 million of higher facilities and equipment costs and $0.1 million of higher licensing fees.

Previous wording

Other income was $2.4 million for the three months ended June 30, 2026, compared to other income of $0.3 million for the three months ended June 30, 2025. The increase of $2.1 million was primarily related to an increase in interest income on securities.

Current wording

Other income was $1.7 million for the three months ended September 30, 2026, compared to other income of $0.3 million for the three months ended September 30, 2025. The increase of $1.4 million was primarily related to an increase in interest income on securities.

Previous wording

The following sets forth our results of operations for the six months ended June 30, 2026 and 2025:

Current wording

The following sets forth our results of operations for the nine months ended September 30, 2026 and 2025:

Previous wording

Research and development expenses were $27.1 million for the six months ended June 30, 2026, compared to $6.3 million for the six months ended June 30, 2025. The increase of $20.9 million was primarily driven by the inclusion of development costs of PIKTOR following the February 2026 acquisition, contributing $6.1 million of research and development costs including preclinical, clinical trial, and CMC related expenses, significant non-recurring costs associated with the Acquisition including $4.8 million of non-cash stock-based compensation expense and $9.1 million of non-recurring tax gross-up payments related to the accelerated vesting of Faeth options, along with $3.3 million of higher personnel costs, including stock-based compensation and incentives, partially offset by a $2.4 million decrease in legacy Sensei programs research and development expenses.

Current wording

Research and development expenses were $38.9 million for the nine months ended September 30, 2026, compared to $8.8 million for the nine months ended September 30, 2025. The increase of $30.1 million was primarily driven by $11.4 million of external program costs for PIKTOR and other Faeth programs following the Acquisition, including preclinical, clinical trial and CMC related expenses; $13.9 million of non-recurring costs associated with the Acquisition, consisting of $4.8 million of non-cash stock-based compensation expense and $9.1 million of tax gross-up payments and related employer taxes associated with the accelerated vesting of Faeth options; and an increase of $8.6 million in personnel costs, including stock-based compensation and incentives. These increases were partially offset by a $3.8 million decrease in legacy Sensei program costs.

Previous wording

We expect research and development expenses in future periods to be lower than those incurred during the six months ended June 30, 2026, which included significant non-recurring costs associated with the Acquisition, including stock-based compensation expense related to the accelerated vesting of Faeth employee stock options and tax gross-up payments. However, we expect our ongoing research and development expenses to increase significantly as we advance PIKTOR through our ongoing Phase 2 trial in advanced endometrial cancer and our recently initiated Phase 1b/2 trial in HR+/HER2- advanced breast cancer, and as we expand preclinical and CMC activities for our broader pipeline.

Current wording

We expect research and development expenses in the near term to be lower than those incurred during the nine months ended September 30, 2026, which included significant non-recurring costs associated with the Acquisition, including stock-based compensation expense related to the accelerated vesting of Faeth employee stock options and tax gross-up payments. However, over the longer term, we expect our ongoing research and development expenses to increase significantly as we advance PIKTOR through our ongoing Phase 2 trial in advanced endometrial cancer and our Phase 1b/2 trial in HR+/HER2- advanced breast cancer, which we initiated in April 2026, and as we expand preclinical and CMC activities for our broader pipeline.

Previous wording

General and administrative expenses were $28.9 million for the six months ended June 30, 2026, compared to $6.2 million for the six months ended June 30, 2025. The increase of $22.7 million was primarily driven by acquisition-related charges consisting of $6.2 million of non-cash stock-based compensation expense and $6.5 million of non-recurring tax gross-up payments related to the accelerated vesting of Faeth options, $2.5 million of transaction costs, $2.3 million of Faeth operating costs, and $4.5 million of higher personnel costs, including stock-based compensation and incentives, along with a $0.7 million increase primarily due to integration-related professional fees.

Current wording

General and administrative expenses were $39.3 million for the nine months ended September 30, 2026, compared to $8.5 million for the nine months ended September 30, 2025. The increase of $30.7 million was primarily driven by significant non-recurring costs associated with the Acquisition, including $6.2 million of non-cash stock-based compensation expense, $6.5 million of tax gross-up payments related to the accelerated vesting of Faeth options and $2.6 million of transaction costs, as well as $11.1 million of higher personnel costs, including stock-based compensation, recruiting and incentives, along with $3.4 million of higher external professional fees, including legal, audit, investor relations and insurance costs, $0.5 million of higher consulting expense, $0.3 million of higher licensing fees and $0.2 million of higher facilities and equipment costs, partially offset by $0.1 million of lower board fees.

Previous wording

We expect our general and administrative expenses in future periods to be lower than those incurred during the six months ended June 30, 2026, which included significant non-recurring costs associated with the Acquisition, including stock-based compensation expense related to the accelerated vesting of Faeth employee stock options and transaction costs. However, we expect our ongoing general and administrative expenses to remain significantly higher than our pre-Acquisition levels as a result of the integration of Faeth Therapeutics' operations, including personnel costs associated with the expanded workforce and the support of our broader product pipeline, as well as additional costs associated with operating as a larger public company, including consulting, legal, tax-related services, accounting, investor relations, and insurance premiums.

Current wording

We expect our general and administrative expenses in future periods to be lower than those incurred during the nine months ended September 30, 2026, which included significant non-recurring costs associated with the Acquisition, including stock-based compensation expense related to the accelerated vesting of Faeth employee stock options and transaction costs. However, we expect our ongoing general and administrative expenses to remain significantly higher than our pre-Acquisition levels as a result of the integration of Legacy Faeth's operations, including personnel costs associated with the expanded workforce and the support of our broader product pipeline, as well as additional costs associated with operating as a larger public company, including consulting, legal, tax-related services, accounting, investor relations, and insurance premiums.

Previous wording

Acquired in-process research and development expense was $133.0 million for the six months ended June 30, 2026, with no comparable expense in the prior year period. The charge was recognized in connection with the Acquisition in February 2026 and represents the fair value of acquired IPR&D assets that had no alternative future use as of the acquisition date. See Note 3 to our unaudited condensed consolidated financial statement included elsewhere in this Quarterly Report for additional information regarding the acquisition.

Current wording

Acquired in-process research and development expense was $133.0 million for the nine months ended September 30, 2026, with no comparable expense in the prior year period. The charge was recognized in connection with the Acquisition in February 2026 and represents the fair value of acquired IPR&D assets that had no alternative future use as of the acquisition date. See Note 3 to our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report for additional information regarding the acquisition.

Previous wording

Other income was $2.8 million for the six months ended June 30, 2026 compared to $0.7 million for the six months ended June 30, 2025. The $2.1 million increase was primarily related to an increase in interest income on securities.

Current wording

Other income was $4.5 million for the nine months ended September 30, 2026 compared to $1.0 million for the nine months ended September 30, 2025. The $3.5 million increase was primarily related to an increase in interest income on securities.

Previous wording

We have not generated any product revenue and have incurred net losses and negative cash flows from our operations. As of June 30, 2026, we had cash, cash equivalents and marketable securities of $186.4 million. We have financed our operations through sales of our common stock, redeemable convertible preferred stock and convertible debt. Through the date of this Quarterly Report, we have raised an aggregate of $123.4 million of gross proceeds from private placements of our equity and convertible debt securities and net proceeds of $138.5 million from our IPO in February 2021 and an additional $183.1 million in net proceeds received in the 2026 Private Placement. Our net loss was $186.2 million and $11.8 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $469.4 million. Our primary use of cash is to fund operating expenses, which consist primarily of research and development expenditures and general and administrative expenditures.

Current wording

We have not generated any product revenue and have incurred net losses and negative cash flows from our operations. As of September 30, 2026, we had cash, cash equivalents and marketable securities of $174.8 million. We have financed our operations through sales of our common stock, redeemable convertible preferred stock and convertible debt. Through the date of this Quarterly Report, we have raised an aggregate of $123.4 million of gross proceeds from private placements of our equity and convertible debt securities and net proceeds of $138.5 million from our IPO in February 2021 and an additional $183.1 million in net proceeds received in the 2026 Private Placement. In June 2026, we entered into a sales agreement with TD Securities (USA) LLC under which we may offer and sell shares of our common stock having an aggregate offering price of up to $150.0 million from time to time in at-the-market offerings (the “ATM Program”). As of the date of this Quarterly Report, we have not sold any shares under the ATM Program. Our net loss was $206.6 million and $16.4 million for the nine months ended September 30, 2026 and 2025, respectively. As of September 30, 2026, we had an accumulated deficit of $489.8 million. Our primary use of cash is to fund operating expenses, which consist primarily of research and development expenditures and general and administrative expenditures.

Previous wording

We expect our cash requirements to increase as we advance PIKTOR through multiple clinical trials following the Acquisition, including our ongoing Phase 2 trial in advanced endometrial cancer and our recently initiated Phase 1b/2 trial in HR+/HER2- advanced breast cancer, and we believe our existing cash, cash equivalents and marketable securities of $186.4 million are sufficient to fund operations through topline data readouts from both studies.

Current wording

We expect our cash requirements to increase as we advance PIKTOR through multiple clinical trials following the Acquisition, including our ongoing Phase 2 trial in advanced endometrial cancer and our Phase 1b/2 trial in HR+/HER2- advanced breast cancer, which we initiated in April 2026, and we believe our existing cash, cash equivalents and marketable securities of $174.8 million are sufficient to fund operations through topline data readouts from both studies.

Previous wording

During the six months ended June 30, 2026, net cash used in operating activities was $26.4 million, primarily resulting from our $186.2 million net loss partially offset by a $9.8 million increase in our operating assets and liabilities and increases in non-cash charges of $150.0 million, primarily related to $133.0 million of acquired in-process research and development from the Acquisition, $17.4 million of stock compensation expense and $0.7 million of non-cash lease expense partially offset by $1.1 million of accretion on marketable securities. The change in operating assets and liabilities was primarily related to a $10.3 million decrease in prepaid expenses $0.2 million increase in accounts payable and accrued liabilities and a $0.1 million increase in other assets offset by a $0.8 million decrease in operating lease liabilities.

Current wording

During the nine months ended September 30, 2026, net cash used in operating activities was $39.4 million, primarily resulting from our $206.6 million net loss partially offset by a $9.5 million increase in our operating assets and liabilities and increases in non-cash charges of $157.7 million, primarily related to $133.0 million of acquired in-process research and development from the Acquisition, $25.9 million of non-cash stock compensation expense, $1.2 million of non-cash lease expense and $0.1 million of depreciation and amortization partially offset by $2.5 million of accretion on marketable securities. The change in operating assets and liabilities was primarily related to a $10.3 million decrease in prepaid expenses, a $1.3 million increase in accounts payable and accrued liabilities and a $0.7 million increase in compensation and employee benefits liabilities, partially offset by a $1.5 million increase in other assets and a $1.3 million decrease in operating lease liabilities.

Previous wording

During the six months ended June 30, 2025, net cash used in operating activities was $13.0 million, primarily resulting from our $11.8 million net loss and a $2.3 million decrease in our operating assets and liabilities partially offset by increases in non-cash charges of $1.1 million, primarily related to $0.8 million of non-cash lease expense and $0.7 million of stock compensation expense, partially offset by $0.4 million of accretion on marketable securities.

Current wording

During the nine months ended September 30, 2025, net cash used in operating activities was $16.6 million, primarily resulting from our $16.4 million net loss and a $1.9 million decrease in our operating assets and liabilities partially offset by increases in non-cash charges of $1.7 million, primarily related to $1.1 million of non-cash lease expense, $1.0 million of stock compensation expense and $0.1 million of depreciation and amortization, partially offset by $0.6 million of accretion on marketable securities.

Previous wording

During the six months ended June 30, 2026, net cash used in investing activities was $139.5 million, primarily due to $158.6 million in purchases of short-term investments, partially offset by $12.6 million in maturities of short-term investments and $6.5 million in cash assumed from the Acquisition.

Current wording

During the nine months ended September 30, 2026, net cash used in investing activities was $139.3 million, primarily due to $235.4 million in purchases of short-term investments, partially offset by $89.6 million in maturities of short-term investments and $6.5 million in cash assumed from the Acquisition.

Previous wording

During the six months ended June 30, 2025, net cash provided by investing activities was $15.9 million, primarily due to $24.5 million in maturities of short-term investments and $0.2 million of proceeds from the sale of property and equipment, partially offset by $8.8 million in purchases of short-term investments.

Current wording

During the nine months ended September 30, 2025, net cash provided by investing activities was $17.7 million, primarily due to $36.1 million in maturities of short-term investments and $0.2 million of proceeds from the sale of property and equipment, partially offset by $18.6 million in purchases of short-term investments.

Previous wording

During the six months ended June 30, 2026, net cash provided by financing activities was $184.1 million, primarily consisting of $200.0 million proceeds from the issuance of Series B Preferred Stock, $1.1 million from the exercise of options into common stock, partially offset by $16.9 million of issuance costs from the private placement issuance of Series B Preferred Stock and $0.1 million of principal payments under our financing leases.

Current wording

During the nine months ended September 30, 2026, net cash provided by financing activities was $184.2 million, primarily consisting of $200.0 million of proceeds from the issuance of Series B Preferred Stock in the 2026 Private Placement and $1.2 million from the exercise of options into common stock, partially offset by $16.9 million of issuance costs from the 2026 Private Placement and $0.1 million of principal payments under our financing leases.

Previous wording

During the six months ended June 30, 2025, net cash used in financing activities was $0.4 million, primarily consisting of $0.5 million of principal payments under our financing leases, partially offset by $0.1 million of proceeds from the sale of financing lease assets.

Current wording

During the nine months ended September 30, 2025, net cash used in financing activities was $0.5 million, primarily consisting of $0.6 million of principal payments under our financing leases, partially offset by $0.1 million of proceeds from the sale of financing lease assets.

Previous wording

We have operating lease arrangements for our corporate offices and lab facilities. As of June 30, 2026, we had operating lease payment obligations of $0.6 million, with $0.5 million payable for the remainder of 2026. See Note 7 in our condensed consolidated financial statements included elsewhere in this Form 10-Q for additional information.

Current wording

We have operating lease arrangements for our corporate offices and lab facilities. As of September 30, 2026, we had operating lease payment obligations of $0.1 million, with $0.1 million payable for the remainder of 2026. See Note 7 in our condensed consolidated financial statements included elsewhere in this Form 10-Q for additional information.

Previous wording

the cost associated with the expansion of our operational, financial and management systems and increased personnel, including personnel to support our operations as a public company; and

Current wording

the cost associated with the expansion of our operational, financial and management systems and increased personnel, including personnel to support our operations as a public company;

Previous wording

the cost of establishing sales, marketing and distribution capabilities for any product candidates for which we may receive regulatory approval in regions where we choose to commercialize our products, if approved, on our own.

Current wording

the cost of establishing sales, marketing and distribution capabilities for any product candidates for which we may receive regulatory approval in regions where we choose to commercialize our products, if approved, on our own; and

Previous wording

We expect our existing cash, cash equivalents and marketable securities will enable us to fund our operating expenses and capital expenditure requirements through topline data readouts from both our ongoing Phase 2 trial of PIKTOR in advanced endometrial cancer (Study FTH-PIK-201) and our recently initiated Phase 1b/2 trial of PIKTOR in HR+/HER2- advanced breast cancer (Study FTH-PIK-101). We have based this estimate on assumptions that may prove to be wrong, and we may use our available capital resources sooner than we currently expect. Our future capital requirements will depend on many factors, including:

Current wording

We expect our existing cash, cash equivalents and marketable securities will enable us to fund our operating expenses and capital expenditure requirements through topline data readouts from both our ongoing Phase 2 trial of PIKTOR in advanced endometrial cancer (Study FTH-PIK-201) and our Phase 1b/2 trial of PIKTOR in HR+/HER2- advanced breast cancer (Study FTH-PIK-101), which we initiated in April 2026. We have based this estimate on assumptions that may prove to be wrong, and we may use our available capital resources sooner than we currently expect. Our future capital requirements will depend on many factors, including:

Previous wording

Until such time, if ever, as we can generate substantial product revenue, we expect to finance our operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements. We do not currently have any committed external source of funds. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest may be materially diluted, and the terms of such securities could include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt financing and preferred equity financing, if available, may involve agreements that include restrictive covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. In addition, debt financing would result in fixed payment obligations.

Current wording

Until such time, if ever, as we can generate substantial product revenue, we expect to finance our operations through a combination of equity offerings, debt financings, collaborations, strategic alliances and marketing, distribution or licensing arrangements. We do not currently have any committed external source of funds. Although we may sell shares of our common stock under the ATM Program, we are not obligated to do so, sales depend on market conditions, and the ATM Program is not a committed source of funds. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest may be materially diluted, and the terms of such securities could include liquidation or other preferences that adversely affect your rights as a common stockholder. Debt financing and preferred equity financing, if available, may involve agreements that include restrictive covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. In addition, debt financing would result in fixed payment obligations.

Previous wording

Critical Accounting Policies and Significant Judgements and Estimates

Current wording

Critical Accounting Policies and Significant Judgments and Estimates

Previous wording

We define our critical accounting policies as those accounting principles that require us to make subjective estimates and judgments about matters that are uncertain and are likely to have a material impact on our financial condition and results of operations, as well as the specific manner in which we apply those principles. During the six months ended June 30, 2026, we acquired in-process research and development intangible assets in connection with the Faeth Therapeutics merger, which represents a new critical accounting policy not previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 30, 2026. Except for this addition, there were no other significant changes to our critical accounting policies which are included in our Annual Report on Form 10-K.

Current wording

We define our critical accounting policies as those accounting principles that require us to make subjective estimates and judgments about matters that are uncertain and are likely to have a material impact on our financial condition and results of operations, as well as the specific manner in which we apply those principles. During the nine months ended September 30, 2026, we acquired in-process research and development intangible assets in connection with the Acquisition, which represents a new critical accounting policy not previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 30, 2026. Except for this addition, there were no other significant changes to our critical accounting policies which are included in our Annual Report on Form 10-K.

Previous wording

We may take advantage of these exemptions until the last day of the fiscal year following the fifth anniversary of our initial public offering or such earlier time that we are no longer an emerging growth company. We would cease to be an EGC earlier if we have more than $1.235 billion in annual revenue, we have more than $700.0 million in market value of our stock held by non-affiliates (and we have been a public company for at least 12 months and have filed one annual report on Form 10-K) or we issue more than $1.0 billion of non-convertible debt securities over a three-year period. For so long as we remain an EGC, we are permitted, and intend, to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not EGCs. We may choose to take advantage of some, but not all, of the available exemptions.

Current wording

We may take advantage of these exemptions until December 31, 2026, the last day of the fiscal year following the fifth anniversary of our initial public offering or such earlier time that we are no longer an emerging growth company. We would cease to be an EGC earlier if we have more than $1.235 billion in annual revenue, we have more than $700.0 million in market value of our stock held by non-affiliates (and we have been a public company for at least 12 months and have filed one annual report on Form 10-K) or we issue more than $1.0 billion of non-convertible debt securities over a three-year period. For so long as we remain an EGC, we are permitted, and intend, to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not EGCs. We may choose to take advantage of some, but not all, of the available exemptions.