FATE THERAPEUTICS INC

Previous wording

We have also entered into collaborations with pharmaceutical companies to research, develop and commercialize off-the-shelf, multiplexed-engineered, iPSC-derived CAR T-cell and CAR NK cell product candidates for the treatment of cancer. In September 2018, we entered into a collaboration and option agreement (Ono Agreement) with Ono Pharmaceutical Co., Ltd. (Ono), under which we are currently researching and developing iPSC-derived CAR T-cell and CAR NK cell product candidates for the treatment of solid tumors.

Current wording

We have also entered into collaborations with pharmaceutical companies to research, develop and commercialize off-the-shelf, multiplexed-engineered, iPSC-derived CAR T-cell and CAR NK cell product candidates for the treatment of cancer. In September 2018, we entered into a collaboration and option agreement (Ono Agreement) with Ono Pharmaceutical Co., Ltd. (Ono), under which we have researched and developed, and continue to jointly develop with Ono, iPSC-derived CAR T-cell product candidates for the treatment of solid tumors.

Previous wording

conduct our ongoing and planned preclinical studies and clinical trials of our product candidates, which may include higher clinical trial expenses associated with arrangements we may enter into with clinical research organizations (CROs) for the execution and management of certain clinical trials, including trials outside of the United States;

Current wording

conduct our ongoing and planned nonclinical studies and clinical trials of our product candidates, which may include higher clinical trial expenses associated with arrangements we may enter into with clinical research organizations (CROs) for the execution and management of certain clinical trials, including trials outside of the United States;

Previous wording

conduct Good Manufacturing Practice (GMP) production, including through the use of contract manufacturing organizations (CMOs) for the conduct of some or all of the activities required for manufacturing our iPSC-derived cell product candidates, process and scale-up development and technology transfer activities for the manufacture of our product candidates, including those undergoing clinical investigation and Investigational New Drug (IND) application-enabling preclinical development;

Current wording

conduct Good Manufacturing Practice (GMP) production, including through the use of contract manufacturing organizations (CMOs) for the conduct of some or all of the activities required for manufacturing our iPSC-derived cell product candidates, process and scale-up development and technology transfer activities for the manufacture of our product candidates, including those undergoing clinical investigation and Investigational New Drug (IND) application-enabling nonclinical development;

Previous wording

continue our research, development and manufacturing activities, including under our sponsored research and collaboration agreement with Ono;

Current wording

continue our research, development and manufacturing activities;

Previous wording

On September 14, 2018, we entered into the Ono Agreement for the joint development and commercialization of two iPSC-derived CAR T-cell product candidates (Candidate 1 and Candidate 2). Pursuant to the terms of the Ono Agreement, we received an upfront, non-refundable and non-creditable payment of $10.0 million. Additionally, we were entitled to receive fees for the conduct of research and preclinical development under a joint development plan, which fees were estimated to be $20.0 million in aggregate.

Current wording

On September 14, 2018, we entered into the Ono Agreement for the joint development and commercialization of two iPSC-derived CAR T-cell product candidates (Candidate 1 and Candidate 2). Pursuant to the terms of the Ono Agreement, we received an upfront, non-refundable and non-creditable payment of $10.0 million. Additionally, we were entitled to receive fees for the conduct of research and nonclinical development under a joint development plan, which fees were estimated to be $20.0 million in aggregate.

Previous wording

In December 2020, we entered into a letter agreement with Ono (the Ono Letter Agreement) pursuant to which Ono delivered proprietary antigen binding domains targeting an antigen expressed on certain solid tumors for incorporation into Candidate 2 and paid us a milestone fee of $10.0 million for further research and preclinical development of Candidate 2. In addition, Ono terminated all further research and preclinical development with respect to Candidate 1, and we retained all rights to research, develop and commercialize Candidate 1 throughout the world without any obligation to Ono.

Current wording

In December 2020, we entered into a letter agreement with Ono (the Ono Letter Agreement) pursuant to which Ono delivered proprietary antigen binding domains targeting an antigen expressed on certain solid tumors for incorporation into Candidate 2 and paid us a milestone fee of $10.0 million for further research and nonclinical development of Candidate 2. In addition, Ono terminated all further research and nonclinical development with respect to Candidate 1, and we retained all rights to research, develop and commercialize Candidate 1 throughout the world without any obligation to Ono.

Previous wording

In June 2022, we entered into an amendment with Ono to the Ono Agreement (the 2022 Ono Amendment). Pursuant to the 2022 Ono Amendment, the companies agreed to designate an additional antigen expressed on certain solid tumors for research and preclinical development, and Ono agreed to contribute proprietary antigen binding domains targeting such additional solid tumor antigen (Candidate 3). Similar to Candidate 2, we granted to Ono, during a specified period of time, a preclinical option (Candidate 3 Development Option) to obtain an exclusive license under certain intellectual property rights, subject to payment of an option exercise fee to us by Ono, to further develop and commercialize Candidate 3 in all territories of the world, where we retain rights to co-develop and co-commercialize Candidate 3 in the United States and Europe under a joint arrangement with Ono pursuant to which we are eligible to share at least 50% of the profits and losses. The Candidate 3 Development Option represents an option with no material right.

Current wording

In June 2022, we entered into an amendment with Ono to the Ono Agreement (the 2022 Ono Amendment). Pursuant to the 2022 Ono Amendment, the companies agreed to designate an additional antigen expressed on certain solid tumors for research and nonclinical development, and Ono agreed to contribute proprietary antigen binding domains targeting such additional solid tumor antigen (Candidate 3). Similar to Candidate 2, we granted to Ono, during a specified period of time, a nonclinical option (Candidate 3 Development Option) to obtain an exclusive license under certain intellectual property rights, subject to payment of an option exercise fee to us by Ono, to further develop and commercialize Candidate 3 in all territories of the world, where we retain rights to co-develop and co-commercialize Candidate 3 in the United States and Europe under a joint arrangement with Ono pursuant to which we are eligible to share at least 50% of the profits and losses. The Candidate 3 Development Option represents an option with no material right.

Previous wording

In 2022, 2023, 2024, and 2025, the Company entered into amendments with Ono to the Ono Agreement (the Ono Amendments). Under the Ono Amendments, aggregate estimated research and preclinical development fees payable by Ono to the Company for Candidate 3 were increased to a total estimated $44.5 million over the course of the joint development plan.

Current wording

In 2022, 2023, 2024, and 2025, we entered into amendments with Ono to the Ono Agreement (the Ono Amendments). Under the Ono Amendments, aggregate estimated research and nonclinical development fees payable by Ono to us for Candidate 3 were increased to a total estimated $44.5 million over the course of the joint development plan.

Previous wording

As of June 30, 2026, the performance obligations related to the research and preclinical development on Candidate 3 have been met. We have received all committed funding under the preclinical joint development plan from Ono through June 2026. The Candidate 3 Development Option expires upon the achievement of the pre-defined clinical milestone under the joint development plan.

Current wording

As of June 30, 2026, the performance obligations related to the research and nonclinical development on Candidate 3 have been met. We have received all committed funding under the nonclinical joint development plan from Ono through June 2026. The Candidate 3 Development Option expires upon the achievement of the pre-defined clinical milestone under the joint development plan.

Previous wording

We account for the Ono Agreement, Ono Letter Agreement, and Ono Amendments (collectively, the Ono Arrangement) under ASC 808. We concluded that certain units of account, specifically the grant of a research license to certain intellectual property and the performance of research and preclinical development, within the Ono Arrangement represented a customer relationship and applied relevant guidance from ASC 606 to evaluate the appropriate accounting for those units of account. The initial transaction price under the Ono Arrangement was determined to be $54.5 million, consisting of the upfront, non-refundable and non-creditable payment of $10.0 million, the aggregate estimated research and preclinical development fees of $44.5 million. We identified our promised goods and services under the Ono Arrangement to include our grant to Ono of a research license to certain of our intellectual property subject to certain conditions, our conduct of research and preclinical development services, and our participation in a joint steering committee. We determined that the promised goods and services should be accounted for as one combined performance obligation. We recognized revenue for the combined performance obligation over time as the research and preclinical development services were performed, and such performance obligation was completed as of June 30, 2026.

Current wording

We account for the Ono Agreement, Ono Letter Agreement, and Ono Amendments (collectively, the Ono Arrangement) under ASC 808. We concluded that certain units of account, specifically the grant of a research license to certain intellectual property and the performance of research and nonclinical development, within the Ono Arrangement represented a customer relationship and applied relevant guidance from ASC 606 to evaluate the appropriate accounting for those units of account. The initial transaction price under the Ono Arrangement was determined to be $54.5 million, consisting of the upfront, non-refundable and non-creditable payment of $10.0 million, the aggregate estimated research and nonclinical development fees of $44.5 million. We identified our promised goods and services under the Ono Arrangement to include our grant to Ono of a research license to certain of our intellectual property subject to certain conditions, our conduct of research and nonclinical development services, and our participation in a joint steering committee. We determined that the promised goods and services should be accounted for as one combined performance obligation. We recognized revenue for the combined performance obligation over time as the research and nonclinical development services were performed, and such performance obligation was completed as of June 30, 2026.

Previous wording

During the three and six months ended June 30, 2026, we recognized $2.1 million and $3.4 million of collaboration revenue, respectively, and $0.8 million and $1.9 million of contra-research and development expense, respectively, under the Ono Agreement. During the three and six months ended June 30, 2025, we recognized $1.9 million and $3.5 million of collaboration revenue, respectively, and $1.3 million and $3.3 million of contra-research and development expense, respectively, under the Ono Arrangement.

Current wording

Under the Ono Agreement, we recognized no collaboration revenue and $3.4 million of collaboration revenue during the three and nine months ended September 30, 2026, respectively, and recorded $0.5 million and $2.4 million of contra-research and development expense, respectively. During the three and nine months ended September 30, 2025, we recognized $1.7 million and $5.3 million of collaboration revenue, respectively, and recorded $1.3 million and $4.5 million of contra-research and development expense, respectively.

Previous wording

Research and development expenses consist of costs associated with the research, preclinical development, process and scale-up development, manufacture and clinical development of our product candidates, the research and development of our cell programming technology including our iPSC product platform, and the performance of research and development activities under our collaboration agreements. These costs are expensed as incurred and include:

Current wording

Research and development expenses consist of costs associated with the research, nonclinical development, process and scale-up development, manufacture and clinical development of our product candidates, the research and development of our cell programming technology including our iPSC product platform, and the performance of research and development activities under our collaboration agreements. These costs are expensed as incurred and include:

Previous wording

costs to acquire, develop and manufacture preclinical study and clinical trial materials, including our product candidates;

Current wording

costs to acquire, develop and manufacture nonclinical study and clinical trial materials, including our product candidates;

Previous wording

costs associated with conducting, executing and managing our preclinical, process and scale-up development, manufacturing, clinical and regulatory activities, including fees paid to third-party professional consultants, service providers and suppliers, including CROs;

Current wording

costs associated with conducting, executing and managing our nonclinical, process and scale-up development, manufacturing, clinical and regulatory activities, including fees paid to third-party professional consultants, service providers and suppliers, including CROs;

Previous wording

We plan to continue to significantly invest in our current level of research and development activities for the foreseeable future as we continue the clinical and preclinical development and manufacture of our product candidates, research and develop our iPSC product platform, and perform our obligations under collaboration agreements including under our agreements with Ono and University of Minnesota. Our current planned research and development activities over the next twelve months consist primarily of the following:

Current wording

We plan to continue to significantly invest in our current level of research and development activities for the foreseeable future as we continue the clinical and nonclinical development and manufacture of our product candidates, research and develop our iPSC product platform, and perform our obligations under collaboration agreements including under our agreements with Ono and the University of Minnesota. Our current planned research and development activities over the next twelve months consist primarily of the following:

Previous wording

conducting GMP production, process and scale-up development and technology transfer activities for the manufacture of our product candidates, including those undergoing clinical investigation and IND-enabling preclinical development;

Current wording

conducting GMP production, process and scale-up development and technology transfer activities for the manufacture of our product candidates, including those undergoing clinical investigation and IND-enabling nonclinical development;

Previous wording

conducting preclinical and clinical research to investigate the therapeutic activity of our product candidates; and

Current wording

conducting nonclinical and clinical research to investigate the therapeutic activity of our product candidates; and

Previous wording

Due to the inherently unpredictable nature of preclinical and clinical development and manufacture, and given our novel therapeutic approach and the current stage of development of our product candidates, we cannot determine and are unable to estimate with certainty the timelines we will require and the costs we will incur for the development and manufacture of our product candidates. Clinical and preclinical development and manufacturing timelines and costs, and the potential of development and manufacturing success, 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 and manufacturing plans and capital requirements. We cannot predict the effects of the impact of global economic and market conditions, including wars and other armed conflicts, or any continued and prolonged public health emergency, on our business and operations, and our expenditures may be increased by delays or disruptions due to these or other factors, including as a result of actions we take in the near term to ensure business continuity and protect against possible supply chain shortages.

Current wording

Due to the inherently unpredictable nature of nonclinical and clinical development and manufacture, and given our novel therapeutic approach and the current stage of development of our product candidates, we cannot determine and are unable to estimate with certainty the timelines we will require and the costs we will incur for the development and manufacture of our product candidates. Clinical and nonclinical development and manufacturing timelines and costs, and the potential of development and manufacturing success, 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 and manufacturing plans and capital requirements. We cannot predict the effects of the impact of global economic and market conditions, including wars and other armed conflicts, or any continued and prolonged public health emergency, on our business and operations, and our expenditures may be increased by delays or disruptions due to these or other factors, including as a result of actions we take in the near term to ensure business continuity and protect against possible supply chain shortages.

Previous wording

General and administrative expenses consist primarily of salaries and employee-related costs, including stock-based compensation, for our employees in executive, operational, finance and human resource functions; professional fees for accounting, legal and tax services; costs for obtaining, prosecuting, maintaining, and enforcing our intellectual property; and other costs and fees, including director and officer insurance premiums, to support our operations as a public company. We anticipate that our general and administrative expenses will remain significant in the future as we maintain our focus on innovation, and research and development activities, maintain compliance with exchange listing and SEC requirements, protect and enforce our intellectual property, and continue to operate as a public company.

Current wording

General and administrative expenses consist primarily of salaries and employee-related costs, including stock-based compensation, for our employees in executive, operational, finance and human resource functions; professional fees for accounting, legal and tax services; costs for obtaining, prosecuting, maintaining, and enforcing our intellectual property; and other costs and fees, including director and officer insurance premiums, to support our operations as a public company. We anticipate that our general and administrative expenses will remain significant in the future as we maintain our focus on innovation, supporting our research and development activities, maintaining compliance with exchange listing and SEC requirements, protecting and enforcing our intellectual property, and continuing to operate as a public company.

Previous wording

In February 2024, we were awarded $7.9 million from the California Institute for Regenerative Medicine (CIRM) to support the conduct of our Phase 1 study of FT819 in patients with systemic lupus erythematosus and, in April 2024, we executed an award agreement with CIRM (the FT819 CIRM Award). Pursuant to the terms of the FT819 CIRM Award, we are eligible to receive five disbursements in varying amounts from CIRM, with one disbursement receivable upon the execution of the award and four disbursements receivable based upon the completion of certain development milestones throughout the period of the award, which is estimated to be from April 1, 2024 to March 31, 2028 (the Award Period). Under the FT819 CIRM Award, we have certain obligations of co-funding and are required to provide CIRM progress and financial update reports throughout the Award Period.

Current wording

In February 2024, we were awarded $7.9 million from the California Institute for Regenerative Medicine (CIRM) to support the conduct of our Phase 1 study of FT819 in patients with systemic lupus erythematosus and, in April 2024, we executed an award agreement with CIRM (the FT819-102 CIRM Award). Pursuant to the terms of the FT819-102 CIRM Award, we are eligible to receive five disbursements in varying amounts from CIRM, with one disbursement receivable upon the execution of the award and four disbursements receivable based upon the completion of certain development milestones throughout the period of the award, which is estimated to be from April 1, 2024 to March 31, 2028 (the Award Period). Under the FT819-102 CIRM Award, we have certain obligations of co-funding and are required to provide CIRM progress and financial update reports throughout the Award Period.

Previous wording

Following the conclusion of the Award Period, we, in our sole discretion, have the option to treat the FT819 CIRM Award either as a loan or as a grant. If we do not elect to treat the FT819 CIRM Award as a loan within 10 years of the award date, the award will be considered a grant and we will be obligated to pay CIRM, on a quarterly basis, a low single-digit royalty on commercial sales of FT819 until such aggregate royalty payments equal nine times the total amount awarded to us under the FT819 CIRM Award.

Current wording

Following the conclusion of the Award Period, we, in our sole discretion, have the option to treat the FT819-102 CIRM Award either as a loan or as a grant. If we do not elect to treat the FT819-102 CIRM Award as a loan within 10 years of the award date, the award will be considered a grant and we will be obligated to pay CIRM, on a quarterly basis, a low single-digit royalty on commercial sales of FT819 until such aggregate royalty payments equal nine times the total amount awarded to us under the FT819-102 CIRM Award.

Previous wording

Since we may, at our election, repay some or all of the FT819 CIRM Award, we account for the award as a liability until the time of election. As of June 30, 2026, we have received four disbursements under the award in the aggregate amount of $7.9 million, which is recorded as a liability on the accompanying consolidated balance sheets. As of June 30, 2026, the total amount received is recorded as a CIRM liability in the consolidated balance sheets, with $6.3 million classified as current and the remaining $1.6 million as non-current, based on the portion we expect to be payable within twelve months from the balance sheet date.

Current wording

Since we may, at our election, repay some or all of the FT819-102 CIRM Award, we account for the award as a liability until the time of election. As of September 30, 2026, we have received four disbursements under the award in the aggregate amount of $7.9 million, which is recorded as a liability on the accompanying consolidated balance sheets. As of September 30, 2026, the total amount received is recorded as a CIRM liability in the consolidated balance sheets, with $6.3 million classified as current and the remaining $1.6 million as non-current, based on the portion we expect to be payable within twelve months from the balance sheet date.

Previous wording

In January 2025, we were awarded $4.0 million from CIRM to support the conduct of preclinical and IND-enabling activities for FT836, and in May 2025, we executed an award agreement with CIRM (the FT836 CIRM Award). Pursuant to the terms of the FT836 CIRM Award, we are eligible to receive four disbursements in varying amounts from CIRM, with one disbursement receivable upon the execution of the award and three disbursements receivable based upon the completion of certain development milestones throughout the period of the award, which lasted from May 1, 2025 to October 31, 2025 (the FT836 Award Period). Under the FT836 CIRM Award, we have certain obligations of co-funding and are required to provide CIRM progress and financial update reports throughout the FT836 Award Period.

Current wording

In January 2025, we were awarded $4.0 million from CIRM to support the conduct of nonclinical and IND-enabling activities for FT836, and in May 2025, we executed an award agreement with CIRM (the FT836 CIRM Award). Pursuant to the terms of the FT836 CIRM Award, we are eligible to receive four disbursements in varying amounts from CIRM, with one disbursement receivable upon the execution of the award and three disbursements receivable based upon the completion of certain development milestones throughout the period of the award, which lasted from May 1, 2025 to October 31, 2025 (the FT836 Award Period). Under the FT836 CIRM Award, we have certain obligations of co-funding and are required to provide CIRM progress and financial update reports throughout the FT836 Award Period.

Previous wording

The estimates and judgments involved in our accounting policies, as described in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025, continue to be our critical accounting policies and there have been no other material changes to our critical accounting policies during the six months ended June 30, 2026.

Current wording

The estimates and judgments involved in our accounting policies, as described in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025, continue to be our critical accounting policies and there have been no other material changes to our critical accounting policies during the nine months ended September 30, 2026.

Previous wording

Research and development expenses. Research and development expenses were $24.4 million for the three months ended June 30, 2026, compared to $27.4 million for the three months ended June 30, 2025. The decrease in research and development expenses was attributable primarily to the following:

Current wording

Research and development expenses. Research and development expenses were $24.2 million for the three months ended September 30, 2026, compared to $25.8 million for the three months ended September 30, 2025. The decrease in research and development expenses was attributable primarily to the following:

Previous wording

$1.1 million decrease in third-party professional consultant and advisory fees; and

Current wording

$2.3 million decrease in employee compensation and benefits expense, including a $1.1 million decrease in employee stock-based compensation expense;

Previous wording

$0.8 million decrease in laboratory materials and supplies expenses relating to the manufacture of our product candidates; partially offset by

Current wording

$1.5 million decrease in laboratory materials and supplies expenses relating to the manufacture of our product candidates; partially offset by

Previous wording

$1.7 million increase in clinical trial related expense.

Current wording

$2.4 million increase in clinical trial related expense.

Previous wording

General and administrative expenses. General and administrative expenses were $8.8 million for the three months ended June 30, 2026, compared to $11.4 million for the three months ended June 30, 2025. The decrease in general and administrative expenses was attributable primarily to a $1.6 million decrease in employee stock-based compensation expense, a $0.4 million decrease in third-party professional consultant and advisory fees, and a $0.3 million decrease in patent and legal expenses.

Current wording

General and administrative expenses. General and administrative expenses were $8.0 million for the three months ended September 30, 2026, compared to $10.6 million for the three months ended September 30, 2025. The decrease in general and administrative expenses was attributable primarily to a $1.2 million decrease in employee compensation and benefits expense, including a $1.1 million decrease in employee stock-based compensation expense, a $0.5 million decrease in third-party professional consultant and advisory fees, and a $0.3 million decrease in patent and legal expenses.

Previous wording

Other income (expense), net. Other income (expense), net was $1.0 million and $2.9 million for the three months ended June 30, 2026 and 2025, respectively. During the three months ended June 30, 2026, we recorded $0.6 million in other expense attributable to the change in fair value of the stock price appreciation milestones under the Amended MSKCC License. Other income (expense), net for the three months ended June 30, 2026 also consisted of interest income earned on cash and cash equivalents and interest income from investments (including the amortization of discounts and premiums).

Current wording

Other income (expense), net. Other income (expense), net was $1.6 million and $2.5 million for the three months ended September 30, 2026 and 2025, respectively. During the three months ended September 30, 2026, we recorded $0.2 million in other income attributable to the change in fair value of the stock price appreciation milestones under the Amended MSKCC License. Other income (expense), net for the three months ended September 30, 2026 also consisted of interest income earned on cash and cash equivalents and interest income from investments (including the amortization of discounts and premiums).

Previous wording

The following table summarizes the results of our operations for the six months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following table summarizes the results of our operations for the nine months ended September 30, 2026 and 2025 (in thousands):

Previous wording

Collaboration Revenue. During the six months ended June 30, 2026 and 2025, we recognized revenue of $3.4 million and $3.5 million, respectively, under our collaboration agreement with Ono.

Current wording

Collaboration Revenue. During the nine months ended September 30, 2026 and 2025, we recognized revenue of $3.4 million and $5.3 million, respectively, under our collaboration agreement with Ono. The decrease was attributable to the completion of all performance obligations under the Ono Agreement as of June 30, 2026, after which no additional collaboration revenue was recognized.

Previous wording

Research and development expenses. Research and development expenses were $49.1 million for the six months ended June 30, 2026, compared to $56.6 million for the six months ended June 30, 2025. The decrease in research and development expenses was attributable primarily to the following:

Current wording

Research and development expenses. Research and development expenses were $73.3 million for the nine months ended September 30, 2026, compared to $82.4 million for the nine months ended September 30, 2025. The decrease in research and development expenses was attributable primarily to the following:

Previous wording

$0.5 million decrease in equipment depreciation; partially offset by

Current wording

$1.4 million decrease in equipment depreciation; partially offset by

Previous wording

$2.5 million increase in clinical trial related expense.

Current wording

$4.9 million increase in clinical trial related expense.

Previous wording

General and administrative expenses. General and administrative expenses were $18.4 million for the six months ended June 30, 2026, compared to $25.2 million for the six months ended June 30, 2025. The decrease in general and administrative expenses was attributable primarily to a $3.4 million decrease in employee stock-based compensation expense, a $0.8 million decrease in patent and legal expenses, a $0.6 million decrease in third-party professional consultant and advisory fees, and a $0.6 million decrease in local tax fees.

Current wording

General and administrative expenses. General and administrative expenses were $26.5 million for the nine months ended September 30, 2026, compared to $35.9 million for the nine months ended September 30, 2025. The decrease in general and administrative expenses was attributable primarily to a $4.5 million decrease in employee stock-based compensation expense, a $1.1 million decrease in third-party professional consultant and advisory fees, a $1.0 million decrease in patent and legal expenses, a $0.6 million decrease in local tax fees, and a $0.5 million decrease in insurance expense.

Previous wording

Other income (expense), net. Other income (expense), net was $2.8 million and $6.6 million for the six months ended June 30, 2026 and 2025, respectively. During the six months ended June 30, 2026, we recorded $0.7 million in other expense attributable to the change in fair value of the stock price appreciation milestones under the Amended MSKCC License. Other income (expense), net for the six months ended June 30, 2026 also consisted of interest income earned on cash and cash equivalents and interest income from investments (including the amortization of discounts and premiums).

Current wording

Other income (expense), net. Other income (expense), net was $4.3 million and $9.0 million for the nine months ended September 30, 2026 and 2025, respectively. During the nine months ended September 30, 2026, we recorded $0.5 million in other expense attributable to the change in fair value of the stock price appreciation milestones under the Amended MSKCC License. Other income (expense), net for the nine months ended September 30, 2026 also consisted of interest income earned on cash and cash equivalents and interest income from investments (including the amortization of discounts and premiums).

Previous wording

During the six months ended June 30, 2025, we recorded $0.2 million in other income attributable to the change in fair value of the stock price appreciation milestones under the Amended MSKCC License. Other income (expense), net for the six months ended June 30, 2025 also consisted of interest income earned on cash and cash equivalents and interest income from investments (including the amortization of discounts and premiums).

Current wording

During the nine months ended September 30, 2025, we recorded $0.1 million in other income attributable to the change in fair value of the stock price appreciation milestones under the Amended MSKCC License. Other income (expense), net for the nine months ended September 30, 2025 also consisted of interest income earned on cash and cash equivalents and interest income from investments (including the amortization of discounts and premiums).

Previous wording

We have incurred losses and negative cash flows from operations since inception. As of June 30, 2026, we had an accumulated deficit of $1.6 billion and anticipate that we will continue to incur net losses for the foreseeable future. We expect that our cash, cash equivalents and short-term investments as of June 30, 2026 of $153.8 million will be sufficient to fund operations for at least the next twelve months from the date of issuance of these condensed consolidated financial statements.

Current wording

We have incurred losses and negative cash flows from operations since inception. As of September 30, 2026, we had an accumulated deficit of $1.6 billion and anticipate that we will continue to incur net losses for the foreseeable future. We expect that our cash, cash equivalents and short-term investments as of September 30, 2026 of $139.1 million will be sufficient to fund operations for at least the next twelve months from the date of issuance of these condensed consolidated financial statements.

Previous wording

During the six months ended June 30, 2026, net cash used in operating activities was $54.3 million and primarily consisted of a net loss of $61.4 million adjusted for non-cash items including stock-based compensation of $7.4 million and depreciation and amortization of $5.7 million.

Current wording

During the nine months ended September 30, 2026, net cash used in operating activities was $82.1 million and primarily consisted of a net loss of $92.1 million adjusted for non-cash items including stock-based compensation of $10.1 million and depreciation and amortization of $8.4 million.