SCYNEXIS INC

Previous wording

Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of results that may occur in future interim periods or future fiscal years. Some of the statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to our management and involve significant elements of subjective judgment and analysis. Words such as “expects,” “will,” “anticipates,” “targets,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “potential,” “should,” “could,” variations of such words, and similar expressions are intended to identify forward-looking statements. Our actual results and the timing of events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such a difference include those discussed under the heading “Risk Factors” in Item 1A of Part I of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2026, and in Part II, Item 1A of this Quarterly Report on Form 10-Q. These and many other factors could affect our future financial and operating results. We undertake no obligation to update any forward-looking statement to reflect events after the date of this Quarterly Report on Form 10-Q. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into or review of, all relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely on these statements.

Current wording

Operating results for the three and nine months ended September 30, 2026, are not necessarily indicative of results that may occur in future interim periods or future fiscal years. Some of the statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to our management and involve significant elements of subjective judgment and analysis. Words such as “expects,” “will,” “anticipates,” “targets,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “potential,” “should,” “could,” variations of such words, and similar expressions are intended to identify forward-looking statements. Our actual results and the timing of events may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such a difference include those discussed under the heading “Risk Factors” in Item 1A of Part I of our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2026. These and many other factors could affect our future financial and operating results. We undertake no obligation to update any forward-looking statement to reflect events after the date of this Quarterly Report on Form 10-Q. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into or review of, all relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely on these statements.

Previous wording

SCYNEXIS, Inc. is a clinical-stage biotechnology company focused on developing innovative therapies for severe and difficult-to-treat diseases with significant unmet medical need. Our strategy is centered on advancing differentiated product candidates with novel mechanisms of action that may provide meaningful clinical benefit and commercial opportunity.

Current wording

SCYNEXIS, Inc. is a clinical-stage biotechnology company dedicated to advancing innovative solutions for severe rare diseases. Our strategy is centered on advancing differentiated product candidates with novel mechanisms of action that may provide meaningful clinical benefit and commercial opportunity.

Previous wording

Our proprietary antifungal platform, “fungerps,” includes BREXAFEMME® (ibrexafungerp tablets), the first approved representative of this novel antifungal class, which we licensed to GlaxoSmithKline Intellectual Property (No. 3) Limited (GSK) in May 2023, and SCY-247, a next-generation antifungal compound currently in clinical development. We retain worldwide rights to SCY-247 and additional fungerp compounds in preclinical and discovery-stage development.

Current wording

Our proprietary antifungal platform, “fungerps,” includes SCY-247, a next-generation antifungal compound currently in clinical development for the treatment of invasive candidiasis and prevention of invasive fungal diseases and BREXAFEMME® (ibrexafungerp tablets), the first approved representative of this novel antifungal class, which we licensed to GlaxoSmithKline Intellectual Property (No. 3) Limited (GSK) in May 2023.

Previous wording

SCY-770 is an orally administered small-molecule direct AMPK activator that has been evaluated in multiple clinical studies, including Phase 1 trials and a Phase 2a study in patients with nonalcoholic fatty liver disease. Across studies completed to date, SCY-770 has demonstrated a favorable pharmacokinetic and tolerability profile. The FDA has granted SCY-770 Orphan Drug designation.

Current wording

SCY-770 is an orally administered small-molecule direct AMPK activator that has been evaluated in multiple clinical studies, including Phase 1 trials and a Phase 2a study in patients with nonalcoholic fatty liver disease. Across studies completed to date, SCY-770 has demonstrated a favorable pharmacokinetic and tolerability profile. The FDA has granted SCY-770 Orphan Drug designation for the treatment of ADPKD.

Previous wording

We are developing SCY-770 as a potential disease-modifying therapy for ADPKD. We believe SCY-770’s mechanism of action may offer a differentiated therapeutic approach by targeting key biological processes associated with cyst growth, inflammation and metabolic dysregulation implicated in ADPKD progression.

Current wording

We are developing SCY-770 as a potential disease-modifying therapy for ADPKD. We believe SCY-770’s mechanism of action may offer a differentiated therapeutic approach by targeting key biological processes associated with cyst growth, inflammation and metabolic dysregulation implicated in ADPKD progression. In October 2026, we announced the completion of a Phase 1 study of SCY-770. The study was conducted to evaluate the safety and tolerability, as well as to characterize the pharmacokinetics of SCY-770 to support dose selection for the Phase 2 study in patients with ADPKD. The Phase 1 study enrolled 25 healthy participants across three cohorts. In the initial cohort, participants received a single 500 mg dose of SCY-770 under fed and fasted conditions. Participants in the subsequent cohorts received SCY-770 at either 750 mg once daily or 500 mg twice daily, or placebo, for seven days. SCY-770 was well tolerated across all cohorts and demonstrated a safety profile consistent with prior clinical experience. Pharmacokinetic data from this and prior studies will inform dose selection for the Phase 2 trial in patients with ADPKD.

Previous wording

We believe existing and newly generated preclinical and clinical data may support an efficient development strategy. Subject to discussions with the FDA, we believe there may be potential for a streamlined regulatory pathway utilizing imaging-based surrogate endpoints together with confirmatory clinical benefit measures; however, no agreement with the FDA regarding any such pathway has been reached.

Current wording

We believe existing and newly generated preclinical and clinical data may support an efficient development strategy. Subject to discussions with the FDA, we believe there may be potential for a streamlined regulatory pathway utilizing imaging-based surrogate endpoints together with confirmatory clinical benefit measures; however, no agreement with the FDA regarding any such pathway has been reached. Our goal is to develop SCY-770 as a therapy capable of slowing disease progression, limiting cyst growth and improving long-term patient outcomes.

Previous wording

We estimate that approximately 140,000 to 160,000 individuals in the United States have been diagnosed with ADPKD, with global prevalence estimated in the millions. Current treatment options remain limited, and existing therapies may present tolerability, monitoring or access-related challenges for certain patients. We believe there is substantial unmet need and potentially meaningful market opportunity for additional therapies capable of slowing disease progression in ADPKD while offering improved tolerability relative to currently available treatment options.

Current wording

We estimate that approximately 140,000 to 160,000 individuals in the United States are diagnosed with ADPKD, with global prevalence estimated in the millions. Current treatment options remain limited, and existing therapies may present tolerability, toxicity-monitoring or access-related challenges for certain patients. We believe there is substantial unmet need and potentially meaningful market opportunity for additional therapies capable of slowing disease progression in ADPKD while offering improved tolerability relative to currently available treatment options.

Previous wording

The competitive landscape for ADPKD is evolving but remains limited. Tolvaptan, marketed in the United States as JYNARQUE, is currently the only therapy approved that can slow progression of ADPKD. Its use is limited to patients at risk of rapid progression due to tolerability issues, prescribing restrictions, and requirements associated with a risk evaluation and mitigation strategies (REMS) program. In 2025, the FDA approved Lupin’s generic formulation of tolvaptan for the treatment of ADPKD, providing a lower‑cost alternative to JYNARQUE; however, the generic product is subject to the same REMS requirements and safety considerations as the branded product and does not address the tolerability‑related limitations that have constrained broader adoption of tolvaptan‑based therapy.

Current wording

The competitive landscape for ADPKD is evolving but remains limited. Tolvaptan, marketed in the United States as JYNARQUE, is currently the only therapy approved that can slow progression of ADPKD. Its use is limited to patients at risk of rapid progression due to tolerability issues, prescribing restrictions, and requirements associated with a risk evaluation and mitigation strategy (REMS) program. In 2025, the FDA approved Lupin’s generic formulation of tolvaptan for the treatment of ADPKD, providing a lower‑cost alternative to JYNARQUE; however, the generic product is subject to the same REMS requirements and safety considerations as the branded product and does not address the tolerability‑related limitations that have constrained broader adoption of tolvaptan‑based therapy. There are other products with different mechanisms of action in development for the treatment of ADPKD.

Previous wording

SCY-247 is a next-generation antifungal compound being developed in oral and intravenous formulations for the treatment and prevention of invasive fungal infections.

Current wording

SCY-247 is a next-generation antifungal compound being developed in oral and intravenous formulations for the treatment of invasive candidiasis and for the prevention of invasive fungal infections in patients at high-risk such as those undergoing bone marrow transplant or other conditions suppressing the immune system. We own 100% of the intellectual property covering SCY-247. In September 2026, we announced we had been awarded a contract by the Biomedical Advanced Research and Development Authority (BARDA) (the BARDA Contract) to advance the development of SCY-247 in the treatment of invasive candidiasis and prevention of invasive fungal infections in high-risk patients. The initial base period of the BARDA Contract provides approximately $18.5 million to support advancement of oral and intravenous SCY-247 into a Phase 2 trial in patients with invasive candidiasis.

Previous wording

SCY-247 has demonstrated broad-spectrum antifungal activity in preclinical studies, including activity against multidrug-resistant Candida and Aspergillus strains. We believe SCY-247 possesses several potentially differentiated attributes, including oral bioavailability, potent antifungal activity, tissue penetration and pharmacokinetic characteristics supportive of once-daily dosing.

Current wording

SCY-247 has demonstrated broad-spectrum antifungal activity in preclinical studies, including activity against multidrug-resistant Candidaand Aspergillus strains. We believe SCY-247 possesses several potentially differentiated attributes, including availability of both oral and intravenous formulations, potent antifungal activity, tissue distribution profile supportive of both treatment and prevention of invasive fungal disease indications, low risk for significant drug interactions and pharmacokinetic characteristics supportive of once-daily dosing.

Previous wording

The FDA has granted SCY-247 Qualified Infectious Disease Product, Fast Track and Orphan Drug designations.

Current wording

We currently anticipate initiating a Phase 2 study in patients with invasive candidiasis in 2027. The FDA has granted SCY-247 Qualified Infectious Disease Product, Fast Track and Orphan Drug designations.

Previous wording

The transfer of the BREXAFEMME New Drug Application to GSK was completed in November 2025 and GSK will be able to initiate regulatory interactions with the FDA to discuss the relaunch of BREXAFEMME for vulvovaginal candidiasis and refractory vulvovaginal candidiasis in the U.S. market. We potentially stand to receive $146.0 million in annual net sales milestones plus royalties in the low-to-mid-single digits upon the relaunch of BREXAFEMME by GSK that could provide a significant future source of non-dilutive capital.

Current wording

The Ibrexafungep’s IND and BREXAFEMME New Drug Applications to the FDA have been transferred to GSK and we believe that GSK continues making progress toward the relaunch of BREXAFEMME in the U.S. market. We potentially stand to receive $146.0 million in annual net sales milestones plus net royalties in the low-to-mid-single digits following the relaunch of BREXAFEMME by GSK that could provide a significant future source of non-dilutive capital.

Previous wording

SCY-247 and ibrexafungerp as part of the MARIO Phase 3 study were the only key research and development projects during the periods presented. We expect to continue to incur significant research and development expense for the foreseeable future as we continue our effort to develop SCY-770 and SCY-247, and to potentially develop our other product candidates, subject to the availability of additional funding.

Current wording

SCY-770, SCY-247, and ibrexafungerp as part of the MARIO Phase 3 study (the MARIO Phase 3 study was terminated in the fourth quarter of 2025) were the only significant research and development projects during the periods presented. We expect to continue to incur significant research and development expense for the foreseeable future as we continue our effort to develop SCY-770 and SCY-247, and to potentially develop our other product candidates, subject to the availability of additional funding.

Previous wording

All of our other expense (income) recognized in the three and six months ended June 30, 2026 and 2025, consists of amortization of debt issuance costs and discount, interest income, interest expense, other income, and the warrant liabilities fair value adjustment.

Current wording

All of our other expense (income) recognized in the three and nine months ended September 30, 2026 and 2025, consists of amortization of debt issuance costs and discount, interest income, interest expense, other income, and the warrant liabilities fair value adjustment.

Previous wording

Revenue. For the six months ended June 30, 2026 and 2025, revenue consists of $0.2 million and $1.6 million in license agreement revenue associated with the GSK license agreement.

Current wording

Revenue. For the three months ended September 30, 2025, revenue consists of $0.3 million in license agreement revenue associated with the GSK license agreement.

Previous wording

Research and Development. For the three months ended June 30, 2026, research and development expenses decreased to $3.9 million compared to $7.1 million for the three months ended June 30, 2025. The decrease of $3.3 million, or 46%, for the three months ended June 30, 2026, was primarily driven by a decrease of $1.6 million in chemistry, manufacturing, and controls (CMC) expense, a $0.8 million decrease in preclinical expense, a $0.5 million decrease in clinical expense and a net decrease of $0.4 million in other research and development expense.

Current wording

Research and Development. For the three months ended September 30, 2026, research and development expenses increased to $6.2 million compared to $5.5 million for the three months ended September 30, 2025. The increase of $0.7 million, or 14%, for the three months ended September 30, 2026, was primarily driven by an increase of $1.7 million in clinical expense, offset in part by a $0.6 million decrease in preclinical expense, and a $0.4 million decrease in chemistry, manufacturing, and controls (CMC) expense.

Previous wording

The $1.6 million decrease in CMC was primarily associated with a $1.6 million decrease in costs and expenses associated with the manufacturing of ibrexafungerp for the MARIO Phase 3 study which was terminated in the fourth quarter of 2025. The $1.5 million decrease in preclinical expense was primarily associated with certain preclinical costs associated with the development of the oral and IV formulations of SCY-247 in the six months ended June 30, 2025.

Current wording

The $1.7 million increase in clinical expense was primarily associated with a $1.2 million increase in expense for the Phase 1 intravenous formulation study for SCY-247 and a $1.3 million increase in expense for the Phase 1 SCY-770 study, offset in part by a $1.1 million decrease in expense associated with MARIO Phase 3 study that was terminated in the fourth quarter of 2025. The $0.6 million decrease in preclinical expense was primarily associated with certain preclinical costs associated with the development of the oral and intravenous formulations of SCY-247 in the three months ended September 30, 2025. The $0.4 million decrease in CMC expense was primarily due to CMC costs associated with the intravenous formulation of SCY-247 that were incurred in the three months ended September 30, 2025.

Previous wording

Selling, General & Administrative. For the three months ended June 30, 2026, selling, general and administrative expenses increased to $4.1 million compared to $3.8 million for the three months ended June 30, 2025. The increase of $0.3 million, or 9%, for the three months ended June 30, 2026, was primarily due to the increase of $0.3 million in professional fees.

Current wording

Selling, General & Administrative. For the three months ended September 30, 2026, selling, general and administrative expenses increased to $3.6 million compared to $3.3 million for the three months ended September 30, 2025. The increase of $0.3 million, or 8%, for the three months ended September 30, 2026, was primarily due to the increase of $0.2 million in professional fees.

Previous wording

Interest Income. For the three months ended June 30, 2026 and 2025, we recognized $0.7 million and $0.5 million, respectively, in interest income on our money market funds and investments.

Current wording

Interest Income. For the three months ended September 30, 2026 and 2025, we recognized $0.6 million and $0.5 million, respectively, in interest income on our money market funds and investments.

Previous wording

Other Income. For the three months ended June 30, 2026, we recognized $0.3 million in other income associated with certain research and development tax credits.

Current wording

Other Income. For the three months ended September 30, 2026, we recognized $0.9 million in other income associated with certain research and development tax credits.

Previous wording

Warrant Liabilities Fair Value Adjustment. For the six months ended June 30, 2026 and 2025, we recognized gains of $8.9 million and $5.1 million, respectively, in the fair value adjustment related to the warrant liabilities primarily due to the decrease in our stock price during the respective periods.

Current wording

Warrant Liability Fair Value Adjustment. For the three months ended September 30, 2026 and 2025, we recognized losses of $0.2 million and $0.6 million, respectively, in the fair value adjustment related to the warrant liability primarily due to the increase in our stock price during the respective periods.

Previous wording

The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025, together with the changes in those items in dollars and percentage (dollars in thousands):

Current wording

The following table summarizes our results of operations for the nine months ended September 30, 2026 and 2025, together with the changes in those items in dollars and percentage (dollars in thousands):

Previous wording

Revenue. For the three months ended June 30, 2026 and 2025, revenue consists of $0.2 million and $1.4 million in license agreement revenue associated with the GSK license agreement.

Current wording

Revenue. For the nine months ended September 30, 2026 and 2025, revenue consists of $0.2 million and $2.0 million in license agreement revenue associated with the GSK license agreement.

Previous wording

Research and Development. For the six months ended June 30, 2026, research and development expenses increased to $16.2 million compared to $12.3 million for the six months ended June 30, 2025. The increase of $4.0 million, or 32%, for the six months ended June 30, 2026, was primarily driven by the $8.0 million IPR&D expense recognized for the acquisition of SCY-770 in the six months ended June 30, 2026, offset in part by a decrease of $1.5 million in preclinical expense, a decrease of $1.6 million CMC expense, a decrease of $0.7 million in salary expense, and a net decrease of $0.2 million in other research and development expense.

Current wording

Research and Development. For the nine months ended September 30, 2026, research and development expenses increased to $22.4 million compared to $17.7 million for the nine months ended September 30, 2025. The increase of $4.7 million, or 27%, for the nine months ended September 30, 2026, was primarily driven by the $8.0 million IPR&D expense recognized for the acquisition of SCY-770 in the nine months ended September 30, 2026, an increase of $1.5 million in clinical expense, offset in part by a decrease of $2.1 million in preclinical expense, a decrease of $2.0 million in CMC expense, a decrease of $0.6 million in salary expense, and a net decrease of $0.1 million in other research and development expense.

Previous wording

The $1.6 million decrease in CMC expense was primarily associated with a $1.4 million decrease in costs and expenses associated with the manufacturing of ibrexafungerp for the MARIO Phase 3 study which was terminated in the fourth quarter of 2025. The $0.8 million decrease in preclinical expense was primarily associated with certain preclinical costs associated with the development of the oral formulation of SCY-247 in the three months ended June 30, 2025. The $0.5 million decrease in clinical expense was primarily due to the $0.9 million decrease in expense associated with MARIO Phase 3 study that was terminated in the fourth quarter of 2025, and a $1.5 million decrease in expense for the Phase 1 oral formulation studies for SCY-247, offset in part by an increase in expense of $1.6 million for the Phase 1 intravenous formulation study for SCY-247, and a $0.3 million increase in expense for the Phase 1 SCY-770 study.

Current wording

The $1.5 million increase in clinical expense was primarily associated with a $3.6 million increase in expense for the Phase 1 intravenous formulation study for SCY-247 and a $1.6 million increase in expense for the Phase 1 SCY-770 study, offset in part by a $2.2 million decrease in expense for the Phase 1 oral formulation study of SCY-247 and a $2.1 million decrease in expense associated with MARIO Phase 3 study that was terminated in the fourth quarter of 2025. The $2.0 million decrease in CMC expense was primarily associated with a $1.4 million decrease in costs associated with the manufacturing of ibrexafungerp for the MARIO Phase 3 study. The $2.1 million decrease in preclinical expense was primarily associated with certain preclinical costs associated with the development of the oral and intravenous formulations of SCY-247 in the nine months ended September 30, 2025.

Previous wording

Selling, General & Administrative. For the six months ended June 30, 2026, selling, general and administrative expenses increased to $8.7 million compared to $7.5 million for the six months ended June 30, 2025. The increase of $1.2 million, or 16%, was primarily due to the recognition of $0.9 million in offering costs for the March 2026 Private Placement warrant issuance in the six months ended June 30, 2026 and a $0.6 million increase in other professional fees, offset in part by a net decrease of $0.3 million in other selling, general, and administrative expense.

Current wording

Selling, General & Administrative. For the nine months ended September 30, 2026, selling, general and administrative expenses increased to $12.3 million compared to $10.8 million for the nine months ended September 30, 2025. The increase of $1.5 million, or 13%, was primarily due to the recognition of $0.9 million in offering costs for the March 2026 Private Placement warrant issuance in the nine months ended September 30, 2026, a $0.2 million increase in other professional fees, and a net increase of $0.4 million in other selling, general, and administrative expense.

Previous wording

Amortization of Debt Issuance Costs and Discount. For the six months ended June 30, 2025, we recognized $0.3 million in amortization of debt issuance costs and discount. The debt issuance costs and discount for our March 2019 convertible notes, which were fully paid at maturity in March 2025, primarily consisted of an allocated portion of advisory fees and other issuance costs and the initial fair value of the derivative liability.

Current wording

Amortization of Debt Issuance Costs and Discount. For the nine months ended September 30, 2025, we recognized $0.3 million in amortization of debt issuance costs and discount. The debt issuance costs and discount for our March 2019 convertible notes, which were fully paid at maturity in March 2025, primarily consisted of an allocated portion of advisory fees and other issuance costs and the initial fair value of the derivative liability.

Previous wording

Interest Income. For the six months ended June 30, 2026 and 2025, we recognized $1.2 million and $1.3 million, respectively, in interest income on our money market funds and investments.

Current wording

Interest Income. For both the nine months ended September 30, 2026 and 2025, we recognized $1.8 million in interest income on our money market funds and investments.

Previous wording

Interest Expense. For the six months ended June 30, 2025, we recognized $0.2 million in interest expense on our March 2019 convertible notes which were fully paid at maturity in March 2025.

Current wording

Interest Expense. For the nine months ended September 30, 2025, we recognized $0.2 million in interest expense on our March 2019 convertible notes which were fully paid at maturity in March 2025.

Previous wording

Other Income. For the six months ended June 30, 2026, we recognized $0.7 million in other income associated with certain research and development tax credits.

Current wording

Other Income. For the nine months ended September 30, 2026, we recognized $1.6 million in other income associated with certain research and development tax credits.

Previous wording

Warrant Liabilities Fair Value Adjustment. For the three months ended June 30, 2026 and 2025, we recognized gains of $14.2 million and $2.2 million, respectively, in the fair value adjustment related to the warrant liabilities primarily due to the decrease in our stock price during the respective periods.

Current wording

Warrant Liabilities Fair Value Adjustment. For the nine months ended September 30, 2026 and 2025, we recognized gains of $8.7 million and $4.5 million, respectively, in the fair value adjustment related to the warrant liabilities primarily due to the decrease in our stock price during the respective periods.

Previous wording

As of June 30, 2026, we had cash and cash equivalents and investments of $71.1 million, compared to cash and cash equivalents and short-term investments of $56.3 million as of December 31, 2025. We believe our capital resources are sufficient to fund our on-going operations for a period of at least 12 months subsequent to the issuance of the accompanying unaudited condensed consolidated financial statements. As of June 30, 2026, our accumulated deficit was $399.0 million.

Current wording

As of September 30, 2026, we had cash and cash equivalents and investments of $63.2 million, compared to cash and cash equivalents and investments of $56.3 million as of December 31, 2025. We believe our capital resources are sufficient to fund our on-going operations for a period of at least 12 months subsequent to the issuance of the accompanying unaudited condensed consolidated financial statements. As of September 30, 2026, our accumulated deficit was $407.5 million.

Previous wording

The following table sets forth the significant sources and uses of cash for the six months ended June 30, 2026 and 2025 (in thousands):

Current wording

The following table sets forth the significant sources and uses of cash for the nine months ended September 30, 2026 and 2025 (in thousands):

Previous wording

The $8.0 million increase in net cash used in operating activities for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025 was primarily due to the $8.0 million payment for the acquisition of SCY-770 and the continued development costs associated with SCY-247 in the six months ended June 30, 2026.

Current wording

The $6.8 million increase in net cash used in operating activities for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025 was primarily due to the $8.0 million payment for the acquisition of SCY-770 and the continued development costs associated of SCY-770 and SCY-247.

Previous wording

Net cash used in operating activities of $23.0 million for the six months ended June 30, 2026, primarily consisted of the $13.9 million net loss adjusted for non-cash charges that included the gain on change in fair value of the warrant liabilities of $8.9 million, $0.9 million in offering costs for the March 2026 Private Placement warrant issuance, and stock-based compensation expense of $1.1 million, partially offset by a net unfavorable change in operating assets and liabilities of $2.3 million. The net unfavorable change in operating assets and liabilities of $2.3 million is due to the increase of $1.5 million in operating assets and a decrease of $0.8 million in operating liabilities. The $1.5 million increase in prepaid expenses, other current assets, deferred costs, and other was primarily due to the $0.9 million increase in other current assets for certain tax credit receivables recognized in the six months ended June 30, 2026.

Current wording

Net cash used in operating activities of $30.5 million for the nine months ended September 30, 2026, primarily consisted of the $22.4 million net loss adjusted for non-cash charges that included the gain on change in fair value of the warrant liabilities of $8.7 million, $0.9 million in offering costs for the March 2026 Private Placement warrant issuance, and stock-based compensation expense of $1.7 million, partially offset by a net unfavorable change in operating assets and liabilities of $2.1 million. The net unfavorable change in operating assets and liabilities of $2.1 million is due to the increase of $2.5 million in operating assets and an increase of $0.4 million in operating liabilities. The $2.5 million increase in prepaid expenses, other current assets, deferred costs, and other was primarily due to the $1.7 million increase in other current assets for certain tax credit receivables recognized in the nine months ended September 30, 2026.

Previous wording

Net cash used in operating activities of $15.0 million for the six months ended June 30, 2025, primarily consisted of the $12.3 million net loss adjusted for non-cash charges that included the gain on change in fair value of the warrant liability of $5.1 million and stock-based compensation expense of $1.6 million, partially offset by a net favorable change in operating assets and liabilities of $0.6 million. The net favorable change in operating assets and liabilities of $0.6 million is due to a net favorable change of $1.1 million due to the decrease in operating assets offset by a net unfavorable change of $0.4 million due to the decrease in operating liabilities The net $1.1 million decrease in operating assets is primarily due to a $0.8 million decrease in prepaid expenses, other assets, deferred costs, and other. The $0.8 million decrease in prepaid expenses, other assets, deferred costs, and other was primarily due to the $0.4 million decrease in prepaid research and development services that were recognized in the six months ended June 30, 2025 and a $0.4 million decrease in other current assets. The net unfavorable change of $0.4 million in operating liabilities is primarily due to the $1.7 million increase in accounts payable, offset in part by a $1.3 million decrease in accrued expenses primarily due to the $0.9 million decrease in accrued bonus which was paid in the six months ended June 30, 2025.

Current wording

Net cash used in operating activities of $23.7 million for the nine months ended September 30, 2025, primarily consisted of the $20.9 million net loss adjusted for non-cash charges that included the gain on change in fair value of the warrant liability of $4.5 million and stock-based compensation expense of $2.2 million, partially offset by a net unfavorable change in operating assets and liabilities of $0.7 million. The net unfavorable change in operating assets and liabilities of $0.7 million is due to a net favorable change of $2.0 million due to the decrease in operating assets offset by a net unfavorable change of $2.7 million due to the decrease in operating liabilities. The net $2.0 million decrease in operating assets is primarily due to a $1.7 million decrease in prepaid expenses, other assets, deferred costs, and other. The $1.7 million decrease in prepaid expenses, other assets, deferred costs, and other was primarily due to the $1.2 million decrease in other current assets for certain collected unbilled receivables in the nine months ended September 30, 2025. The net unfavorable change of $2.7 million in operating liabilities is primarily due to the $1.0 million decrease in accounts payable and a $1.0 million decrease in accrued expenses primarily due to the $0.6 million decrease in accrued bonus which was paid in the nine months ended September 30, 2025.

Previous wording

Net cash used in investing activities of $25.3 million for the six months ended June 30, 2026 consisted of purchases and maturities of investments of $39.5 million and $14.2 million, respectively.

Current wording

Net cash used in investing activities of $19.5 million for the nine months ended September 30, 2026 consisted of purchases and maturities of investments of $39.5 million and $20.0 million, respectively.

Previous wording

Net cash provided by investing activities for the six months ended June 30, 2025 consisted of the maturities of investments of $23.7 million.

Current wording

Net cash provided by investing activities for the nine months ended September 30, 2025 consisted of the maturities of investments of $36.1 million.

Previous wording

Net cash provided by financing activities of $37.5 million for the six months ended June 30, 2026, consisted primarily of the $40.0 million in proceeds received from the March 2026 Private Placement.

Current wording

Net cash provided by financing activities of $36.9 million for the nine months ended September 30, 2026, consisted primarily of the $40.0 million in proceeds received from the March 2026 Private Placement.

Previous wording

Net cash used in financing activities of $14.1 million for the six months ended June 30, 2025, consisted primarily of the $14.0 million repayment of the convertible debt in March 2025.

Current wording

Net cash used in financing activities of $14.1 million for the nine months ended September 30, 2025, consisted primarily of the $14.0 million repayment of the convertible debt in March 2025.