MANNKIND CORP

Previous wording

Afrezza is an ultra rapid-acting inhaled insulin indicated to improve glycemic control in patients with diabetes aged six and older. Afrezza was developed by us and consists of a dry powder formulation of human insulin delivered from a small portable inhaler. Administered at the beginning of a meal, Afrezza dissolves rapidly upon inhalation to the lung and delivers insulin quickly to the bloodstream. The expansion of the label to include children and adolescents aged 6 and older living with diabetes was approved by the U.S. Food and Drug Administration (FDA) on May 29, 2026.

Current wording

Afrezza is an ultra rapid-acting inhaled insulin indicated to improve glycemic control in patients with diabetes aged six and older. Afrezza was developed by us and consists of a dry powder formulation of human insulin delivered from a small portable inhaler. Administered at the beginning of a meal, Afrezza dissolves rapidly upon inhalation to the lung and delivers insulin quickly to the bloodstream.

Previous wording

Furoscix is a novel formulation of furosemide that delivers an 80 mg dose via an on-body infusor over a five-hour period. Furoscix is approved by the FDA for the treatment of edema in pediatric patients who weigh at least 43 kg and adult patients with chronic heart failure or chronic kidney disease. Furoscix is the first FDA-approved subcutaneous loop diuretic that delivers intravenous-equivalent diuresis at home as opposed to a hospital setting. Furoscix ReadyFlow, a high concentration formulation of furosemide that is delivered via an autoinjector, was approved by the FDA on July 23, 2026 for the treatment of edema (fluid overload) in adults with heart failure or chronic kidney disease.

Current wording

Furoscix is a novel formulation of furosemide that is approved by the FDA for the treatment of edema in pediatric patients who weigh at least 43 kg and adult patients with chronic heart failure or chronic kidney disease. Furoscix is the first FDA-approved subcutaneous loop diuretic that delivers intravenous-equivalent diuresis at home as opposed to a hospital setting. Furoscix ReadyFlow, a high concentration formulation of furosemide that is delivered via an autoinjector, was approved by the FDA on July 23, 2026 for the treatment of edema (fluid overload) in adults with heart failure or chronic kidney disease. Our expectation is that Furoscix ReadyFlow will become the dominant dosage form of the product; its adoption rate during the remainder of 2026 will be a key factor to help us evaluate the extent to which there is a continuing market for the Furoscix on-body infusor.

Previous wording

The proprietary formulation and inhaler technologies used in Afrezza have also been deployed in our efforts to develop products to treat orphan lung diseases. Our first product to address an orphan lung disease, Tyvaso DPI (treprostinil) inhalation powder, received FDA approval in May 2022 for the treatment of pulmonary arterial hypertension (or PAH) and pulmonary hypertension associated with interstitial lung disease (or PH-ILD). Our development and marketing partner, United Therapeutics, began commercializing Tyvaso DPI in June 2022 and is obligated to pay us a royalty on net sales of the product. We also receive revenue for the supply of Tyvaso DPI that we manufacture for UT. In August 2025, we announced the expansion of our collaboration, pursuant to which we are formulating ralinepag DPI (MNKD-1501) as a dry powder using our proprietary technologies. United Therapeutics will conduct preclinical and clinical development activities of MNKD-1501. Per the agreement, we received an upfront payment and subsequent development payment and are eligible to receive milestone payments upon achievement of specified development milestones as well as royalties on net sales of MNKD-1501, if approved.

Current wording

The proprietary formulation and inhaler technologies used in Afrezza have also been deployed in our efforts to develop products to treat orphan lung diseases. Our first product to address an orphan lung disease, Tyvaso DPI (treprostinil) inhalation powder, received FDA approval in May 2022 for the treatment of pulmonary arterial hypertension (or PAH) and pulmonary hypertension associated with interstitial lung disease (or PH-ILD). Our development and marketing partner, United Therapeutics, began commercializing Tyvaso DPI in June 2022 and is obligated to pay us a royalty on net sales of the product. We also receive revenue for the supply of Tyvaso DPI that we manufacture for UT. In August 2025, we announced the expansion of our collaboration, pursuant to which we are formulating ralinepag DPI (MNKD-1501) as a dry powder using our proprietary technologies. United Therapeutics will conduct nonclinical and clinical development activities of MNKD-1501. Per the agreement, we received an upfront payment and subsequent development payment and are eligible to receive milestone payments upon achievement of specified development milestones as well as royalties on net sales of MNKD-1501, if approved.

Previous wording

MNKD-701 is another pipeline opportunity that we are exploring. This program is focused on bumetanide, a more potent loop diuretic than furosemide. We are currently evaluating the feasibility of formulating bumetanide as a dry-powder that can be administered via oral inhalation.

Current wording

MNKD-701 is another pipeline opportunity that we are exploring. This program is focused on bumetanide, a more potent loop diuretic than furosemide.

Previous wording

The following table provides a comparison of the revenue categories for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

Current wording

The following table provides a comparison of the revenue categories for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):

Previous wording

Afrezza— Gross revenue from sales of Afrezza decreased by $1.7 million, or 6%, for the three months ended June 30, 2026 compared to the same period in the prior year. The decrease was driven primarily by lower demand. The gross-to-net adjustment was 33% of gross revenue, or $8.4 million, for the three months ended June 30, 2026 compared to 32% of gross revenue, or $8.8 million, for the same period in the prior year. As a result, net revenue from sales of Afrezza decreased by $1.3 million, or 7%, for the three months ended June 30, 2026 compared to the same period in the prior year.

Current wording

Afrezza— Gross revenue from sales of Afrezza increased by $1.5 million, or 6%, for the three months ended September 30, 2026 compared to the same period in the prior year. The increase was driven primarily by increased demand and a price increase. The gross-to-net adjustment was 30% of gross revenue, or $8.4 million, for the three months ended September 30, 2026 compared to 30% of gross revenue, or $7.8 million, for the same period in the prior year. As a result, net revenue from sales of Afrezza increased by $0.9 million, or 5%, for the three months ended September 30, 2026 compared to the same period in the prior year.

Previous wording

Gross revenue from sales of Afrezza decreased by $2.8 million, or 6%, for the six months ended June 30, 2026 compared to the same period in the prior year. The decrease was driven primarily by lower demand. The gross-to-net adjustment was 32% of gross revenue, or $15.2 million, for the six months ended June 30, 2026 compared to 34% of gross revenue, or $17.1 million, for the same period in the prior year. The decreased gross-to-net percentage was primarily attributable to a decrease in rebates in accordance with contractual arrangements. As a result, net revenue from sales of Afrezza decreased by $0.9 million, or 3%, for the six months ended June 30, 2026 compared to the same period in the prior year.

Current wording

Gross revenue from sales of Afrezza decreased by $1.3 million, or 2%, for the nine months ended September 30, 2026 compared to the same period in the prior year. The decrease was driven primarily by lower demand and was partially offset by a price increase. The gross-to-net adjustment was 31% of gross revenue, or $23.6 million, for the nine months ended September 30, 2026 compared to 32% of gross revenue, or $24.8 million, for the same period in the prior year. The decreased gross-to-net percentage was primarily attributable to a decrease in anticipated product returns (as a percentage of gross sales) and partially offset the impact of lower gross revenue. As a result, net revenue from sales of Afrezza decreased by $0.1 million for the nine months ended September 30, 2026 compared to the same period in the prior year.

Previous wording

Furoscix— Gross revenue from sales of Furoscix was $31.1 million for the three months ended June 30, 2026. The gross-to-net adjustment was 29% of gross revenue, or $8.9 million, resulting in net revenue of $22.2 million for the three months ended June 30, 2026. Gross revenue from sales of Furoscix was $52.0 million for the six months ended June 30, 2026. The gross-to-net adjustment was 28% of gross revenue, or $14.3 million, resulting in net revenue of $37.7 million for the six months ended June 30, 2026. There was no Furoscix revenue in the prior-year periods as we did not own or commercialize Furoscix until our acquisition of scPharma in October 2025.

Current wording

Furoscix— Gross revenue from sales of Furoscix was $32.1 million for the three months ended September 30, 2026. The gross-to-net adjustment was 30% of gross revenue, or $9.7 million, resulting in net revenue of $22.4 million for the three months ended September 30, 2026. Gross revenue from sales of Furoscix was $84.1 million for the nine months ended September 30, 2026. The gross-to-net adjustment was 29% of gross revenue, or $24.0 million, resulting in net revenue of $60.1 million for the nine months ended September 30, 2026. There was no Furoscix revenue in the prior-year periods as we did not own or commercialize Furoscix until our acquisition of scPharma in October 2025. Furoscix ReadyFlow was approved by the FDA in the third quarter of 2026 and shipments commenced in mid-September.

Previous wording

Collaborations and Services and Royalties— Net revenue from collaborations and services increased by $12.2 million, or 53%, for the three months ended June 30, 2026 compared to the same period in the prior year. The increase in revenue in the current quarter was primarily attributable to increased product sold to UT due to timing of manufacturing activities and recognition of the related deferred revenue as well as revenue earned related to the development of ralinepag DPI. Royalty revenue from UT increased by $1.1 million, or 4%, for the three months ended June 30, 2026 due to UT's increase in net revenue from sales of Tyvaso DPI.

Current wording

Collaborations and Services and Royalties— Net revenue from collaborations and services decreased by $7.1 million, or 27%, for the three months ended September 30, 2026 compared to the same period in the prior year. Net revenue from collaborations and services decreased by $0.8 million, or 1%, for the nine months ended September 30, 2026 compared to the same period in the prior year. The decrease in revenue in both periods was primarily attributable to decreased product sold to UT. UT provides notice of their subsequent year purchase quantity on or prior to October 15th of each year and quarterly revenue fluctuations reflect delivery timing rather than changes in annual order volume. The decrease was partially offset by the recognition of revenue earned related to the development of ralinepag DPI. Royalty revenue from UT increased by $4.1 million, or 12%, for the three months ended September 30, 2026. Royalty revenue from UT increased by $8.0 million, or 8%, for the nine months ended September 30, 2026. The increases were due to UT's increase in net revenue from sales of Tyvaso DPI.

Previous wording

The following table provides a comparison of the commercial product gross profit categories for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

Current wording

The following table provides a comparison of the commercial product gross profit categories for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):

Previous wording

Commercial product gross profit increased by $9.7 million, or 54%, for the three months ended June 30, 2026 compared to the same period in the prior year. Commercial product gross profit increased by $20.9 million, or 63%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increase in both periods was primarily attributable to the increase in total product revenues after adding Furoscix to our product portfolio following the acquisition of scPharma in October 2025. Gross margin as a percentage of revenue decreased by 13% for the three months ended June 30, 2026 compared to the same period in the prior year and 9% for the six months ended June 30, 2026 compared to the same period in the prior year. The decrease in both periods was primarily attributable to the inclusion of Furoscix in our product portfolio which has a lower gross margin percentage than Afrezza.

Current wording

Commercial product gross profit increased by $16.0 million, or 90%, for the three months ended September 30, 2026 compared to the same period in the prior year. Commercial product gross profit increased by $36.9 million, or 73%, for the nine months ended September 30, 2026 compared to the same period in the prior year. The increase in both periods was primarily attributable to the increase in total product revenues after adding Furoscix to our product portfolio following the acquisition of scPharma in October 2025. Gross margin as a percentage of revenue decreased by 5% and 7% for the three and nine months ended September 30, 2026, respectively, compared to the same periods in the prior years. The decrease in both periods was primarily attributable to the inclusion of Furoscix on-body infusor in our product portfolio which has a lower gross margin percentage than Afrezza. We expect margins to improve as Furoscix ReadyFlow is adopted into the market.

Previous wording

The following table provides a comparison of the expense categories for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

Current wording

The following table provides a comparison of the expense categories for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):

Previous wording

Research and development expenses increased by $4.3 million, or 32%, for the three months ended June 30, 2026 compared to the same period in the prior year. Research and development expenses increased by $10.5 million, or 43%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increases in both periods were primarily attributable to the development of the Furoscix ReadyFlow Formulation as well as higher personnel costs following the acquisition of scPharma and increased development costs for MNKD-201, which has begun enrolling subjects. These increases were partially offset by lower clinical development expenses resulting from the discontinuation of the ICoN-1 clinical study for MNKD-101 and the completion of the Afrezza pediatric study (INHALE-1).

Current wording

Research and development expenses increased by $0.3 million, or 2%, for the three months ended September 30, 2026 compared to the same period in the prior year. Research and development expenses increased by $10.8 million, or 28%, for the nine months ended September 30, 2026 compared to the same period in the prior year. The increases in both periods were primarily attributable to the development of Furoscix ReadyFlow, higher personnel costs following the acquisition of scPharma, and increased clinical development costs for MNKD-201. These increases were partially offset by lower clinical development expenses resulting from the discontinuation of the ICoN-1 clinical study for MNKD-101 and the completion of the Afrezza pediatric study (INHALE-1).

Previous wording

Selling, general and administrative expenses increased by $26.7 million, or 84%, for the three months ended June 30, 2026 compared to the same period in the prior year. Selling, general and administrative expenses increased by $55.8 million, or 98%, for the six months ended June 30, 2026 compared to the same period in the prior year. The increases in both periods were primarily related to costs associated with the promotion and support of Furoscix, as well as expanding our field-based teams and activities to support the launches associated with the recent approvals of the pediatric indication for Afrezza and the Furoscix ReadyFlow Autoinjector.

Current wording

Selling, general and administrative expenses increased by $32.3 million, or 111%, for the three months ended September 30, 2026 compared to the same period in the prior year. Selling, general and administrative expenses increased by $88.1 million, or 103%, for the nine months ended September 30, 2026 compared to the same period in the prior year. The increases in both periods were primarily attributable to costs associated with the promotion and support of Furoscix, which was acquired from scPharma in October 2025, expansion of our field-based teams, and launch activities related to Furoscix ReadyFlow and the pediatric indication for Afrezza.

Previous wording

Amortization of acquired intangible assets was $4.4 million for the three months ended June 30, 2026 and $8.7 million for the six months ended June 30, 2026 and was related to the amortization of the developed technology related to the Furoscix on-body infusor acquired from scPharma.

Current wording

Amortization of acquired intangible assets was $5.2 million for the three months ended September 30, 2026 and $13.9 million for the nine months ended September 30, 2026 and was primarily related to Furoscix developed technology, acquired from scPharma. Upon FDA approval of Furoscix ReadyFlow in July 2026, it was recognized as finite lived with the existing Furoscix developed technology and the combined balance will be amortized on a straight-line basis through December 31, 2040.

Previous wording

Gain on foreign currency transaction was $0.5 million for the three months ended June 30, 2026 compared to a loss of $5.4 million for the same period in the prior year. Gain on foreign currency transaction was $1.8 million for the six months ended June 30, 2026 compared to a loss of $7.9 million for the same period in the prior year. These non-cash changes were due to fluctuations in U.S. dollar to Euro exchange rates. Under our Insulin Supply Agreement with Amphastar, payment obligations for future purchases are denominated in Euros. We record the foreign currency transaction impact of the U.S. dollar to Euro exchange rate associated with the future purchase commitments.

Current wording

Gain on foreign currency transaction was $0.4 million for the three months ended September 30, 2026 compared to a gain of $0.1 million for the same period in the prior year. Gain on foreign currency transaction was $2.2 million for the nine months ended September 30, 2026 compared to a loss of $7.8 million for the same period in the prior year. These non-cash changes were due to fluctuations in U.S. dollar to Euro exchange rates. Under our Insulin Supply Agreement with Amphastar, payment obligations for future purchases are denominated in Euros. We record the foreign currency transaction impact of the U.S. dollar to Euro exchange rate associated with the future purchase commitments.

Previous wording

The following table provides a comparison of the other income (expense) categories for the three and six months ended June 30, 2026 and 2025 (dollars in thousands):

Current wording

The following table provides a comparison of the other income (expense) categories for the three and nine months ended September 30, 2026 and 2025 (dollars in thousands):

Previous wording

Interest income, net, consisting of interest and accretion on investments net of amortization, decreased by $0.8 million for the three months ended June 30, 2026 compared to the same period in the prior year and decreased by $1.3 million for the six months ended June 30, 2026 compared to the same period in the prior year. This was primarily due to a lower average balance on our securities portfolio and lower yields.

Current wording

Interest income, net, consisting of interest and accretion on investments net of amortization, decreased by $1.5 million for the three months ended September 30, 2026 compared to the same period in the prior year and decreased by $2.9 million for the nine months ended September 30, 2026 compared to the same period in the prior year. This was primarily due to a lower average balance on our securities portfolio.

Previous wording

Interest expense increased by $11.6 million for the three months ended June 30, 2026 compared to the same period in the prior year and increased by $14.4 million for the six months ended June 30, 2026 compared to the same period in the prior year. The increase was primarily due to new term loans with an aggregate principal amount of $325.0 million, which were drawn in August and October 2025 as well as the achievement of an Afrezza net sales milestone in the second quarter of 2026, which resulted in the recognition of $4.5 million of interest expense. See Note 15 –Commitments and Contingencies - Milestone Rightsfor additional information on the Afrezza net sales milestone.

Current wording

Interest expense increased by $6.3 million for the three months ended September 30, 2026 compared to the same period in the prior year and increased by $20.7 million for the nine months ended September 30, 2026 compared to the same period in the prior year. The increase was primarily due to term loans with an aggregate principal amount of $325.0 million, which were drawn in August and October 2025 as well as the achievement of an Afrezza net sales milestone in the second quarter of 2026, which resulted in the recognition of $4.5 million of interest expense. See Note 15 –Commitments and Contingencies - Milestone Rightsfor additional information on the Afrezza net sales milestone.

Previous wording

Interest expense on liability for sale of future royalties decreased by $3.0 million and $4.0 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in the prior year. Interest consists of imputed interest and the amortization of debt issuance costs on the liability recorded in connection with the sale of 1% of our Tyvaso DPI royalties in December 2023. Imputed interest is based on third-party estimates of future royalties to be generated from Tyvaso DPI. See Note 15 –Commitments and Contingencies.

Current wording

Interest expense on liability for sale of future royalties decreased by $3.0 million and $7.0 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods in the prior year. Interest consists of imputed interest and the amortization of debt issuance costs on the liability recorded in connection with the sale of 1% of our Tyvaso DPI royalties in December 2023. Imputed interest is based on third-party estimates of future royalties to be generated from Tyvaso DPI. See Note 15 –Commitments and Contingencies.

Previous wording

Interest expense on financing liability was $2.4 million for both the three months ended June 30, 2026 and 2025, and $4.8 million for both the six months ended June 30, 2026 and 2025. Interest expense on financing liability represents interest incurred on the sale lease-back transaction for our manufacturing facility in Danbury, Connecticut.

Current wording

Interest expense on financing liability was $2.4 million and $2.5 million for the three months ended September 30, 2026 and 2025, respectively, and $7.2 million and $7.3 million for the nine months ended September 30, 2026 and 2025, respectively. Interest expense on financing liability represents interest incurred on the sale lease-back transaction for our manufacturing facility in Danbury, Connecticut.

Previous wording

Loss on settlement of debt of $0.9 million for the six months ended June 30, 2026 was incurred in connection with the settlement of the senior convertible notes in March 2026.

Current wording

Loss on settlement of debt of $0.9 million for the nine months ended September 30, 2026 was incurred in connection with the settlement of the senior convertible notes in March 2026.

Previous wording

Other expense of $5.0 million for the three months ended June 30, 2026 and $7.8 million for the six months ended June 30, 2026 was the result of the remeasurement of the fair value of the contingent consideration liability obtained from the acquisition of scPharma. The contingent consideration will be remeasured each subsequent reporting period until the related contingencies have been resolved.

Current wording

Other expense of $11.5 million for the three months ended September 30, 2026 and $19.3 million for the nine months ended September 30, 2026 was primarily the result of the remeasurement of the fair value of the contingent consideration liability obtained from the acquisition of scPharma. Milestone 1 under the CVR Agreement was achieved on July 23, 2026, which resulted in an aggregate payout of approximately $44.8 million in the third quarter of 2026. As of September 30, 2026, the liability related to the contingent consideration for Milestone 2 has been reduced to $0.0 million as a result of the remeasurement of the fair value. See Note 11 –Fair Value of Financial Instruments. The final payout amount, if any, related to Milestone 2 will be determined on December 31, 2026.

Previous wording

Represents the non-cash portion of the 1% royalty on net sales of Tyvaso DPI earned during the three and six months ended June 30, 2026 and 2025, which is remitted to the royalty purchaser and recognized as royalties from collaborations in our condensed consolidated statements of operations. Our royalties from collaborations during the three and six months ended June 30, 2026 totaled $32.4 million and $65.1 million, respectively, of which $3.2 million and $6.5 million, respectively were remitted to the royalty purchaser.

Current wording

Represents the non-cash portion of the 1% royalty on net sales of Tyvaso DPI earned during the three and nine months ended September 30, 2026 and 2025, which is remitted to the royalty purchaser and recognized as royalties from collaborations in our condensed consolidated statements of operations. Our royalties from collaborations during the three and nine months ended September 30, 2026 totaled $37.5 million and $102.6 million, respectively, of which $3.7 million and $10.3 million, respectively were remitted to the royalty purchaser.

Previous wording

As of June 30, 2026, we had $64.1 million in insulin purchase commitments and $325.0 million aggregate principal amount under the Blackstone Credit Facility. The Blackstone Credit Facility will mature on August 6, 2030. As of June 30, 2026, the effective interest rate is 9.12% per annum. The SOFR Loans borrowed under the Blackstone Credit Facility are subject to the Adjusted Term SOFR plus margin of 5.00%. We have the option to prepay the loans under the Blackstone Credit Facility in whole or in part, subject to early prepayment fees on or prior to the third anniversary of the Closing Date. See Note 9 –Borrowings for further information related to the Blackstone Credit Facility.

Current wording

As of September 30, 2026, we had $63.7 million in insulin purchase commitments and $325.0 million aggregate principal amount under the Blackstone Credit Facility. The Blackstone Credit Facility will mature on August 6, 2030. As of September 30, 2026, the effective interest rate was 9.18% per annum. The SOFR Loans borrowed under the Blackstone Credit Facility are subject to the Adjusted Term SOFR plus margin of 5.00%. We have the option to prepay the loans under the Blackstone Credit Facility in whole or in part, subject to early prepayment fees on or prior to the third anniversary of the Closing Date. See Note 9 –Borrowings for further information related to the Blackstone Credit Facility.

Previous wording

In July 2013, we granted Milestone Rights to the original purchasers under the Milestone Rights Agreement. The original purchasers later assigned those rights to new holders. As of June 30, 2026, $45.0 million remains payable upon the occurrence of specified strategic and sales milestones under the Milestone Rights Agreement. During the three and six months ended June 30, 2026, the Company achieved an Afrezza net sales milestone which will result in a $5.0 million payment to the Original Milestone Purchasers in the third quarter of 2026. See Note 15 –Commitments and Contingencies for further information related to the Milestone Rights.

Current wording

In July 2013, we granted Milestone Rights to the original purchasers under the Milestone Rights Agreement. The original purchasers later assigned those rights to new holders. As of September 30, 2026, $40.0 million remains payable upon the occurrence of specified strategic and sales milestones under the Milestone Rights Agreement. During the second quarter of 2026, the Company achieved an Afrezza net sales milestone which resulted in a $5.0 million payment to the Original Milestone Purchasers in the third quarter of 2026. See Note 15 –Commitments and Contingencies for further information related to the Milestone Rights.

Previous wording

In October 2025, we entered into the CVR Agreement with the rights agent party thereto, which governs the terms of the CVRs issued to the former stockholders of scPharma in the acquisition transaction. Milestone 1 under the CVR Agreement was achieved on July 23, 2026, which will necessitate an aggregate payout of approximately $44.8 million in the third quarter of 2026. Following the payout for the achievement of Milestone 1, the maximum aggregate amount payable with respect to the CVRs is $14.9 million, subject to the achievement of certain net sales milestones on or prior to the applicable milestone outside date in accordance with the CVR Agreement. See Note 2 –Business Combinations–Contingent Value Right ("CVR")for further information related to the CVR Agreement.

Current wording

In October 2025, we entered into the CVR Agreement with the rights agent party thereto, which governs the terms of the CVRs issued to the former stockholders of scPharma in the acquisition transaction. Milestone 1 under the CVR Agreement was achieved on July 23, 2026, which resulted in an aggregate payout of approximately $44.8 million in the third quarter of 2026. Following the payout for the achievement of Milestone 1, the maximum aggregate amount payable with respect to the remaining CVR is $14.9 million, subject to the achievement of certain net sales milestones on or prior to December 31, 2026, in accordance with the CVR Agreement. As of September 30, 2026, management does not expect a payout under this milestone. See Note 2 –Business Combinations–Contingent Value Right ("CVR")for further information related to the CVR Agreement.

Previous wording

On July 24, 2026, we completed a private placement to certain institutional investors in which we sold and issued 10,440,838 shares our common stock at a purchase price of $3.89 per share and pre-funded warrants exercisable for 2,412,632 shares of common stock at a price of $3.88 per share underlying the pre-funded warrants, for total gross proceeds to us, before expenses, of approximately $50.0 million. The proceeds from the private placement will fund our $44.8 million CVR payment obligation that was triggered by the FDA’s approval of Furoscix ReadyFlow™ (furosemide injection).

Current wording

On July 24, 2026, we completed a private placement to certain institutional investors in which we sold and issued 10,440,838 shares of our common stock at a purchase price of $3.89 per share and pre-funded warrants exercisable for 2,412,632 shares of common stock at a purchase price of $3.88 per share underlying the pre-funded warrants, for total net proceeds to us of approximately $49.8 million, after deducting estimated offering expenses. The proceeds from the private placement funded our $44.8 million CVR payment obligation that was triggered by the FDA’s approval of Furoscix ReadyFlow.

Previous wording

During the six months ended June 30, 2026, we used a net $23.7 million of cash for our operating activities. Cash used in operating activities consisted of net loss of $35.7 million offset by non-cash adjustments of $36.7 million and a net decrease in cash flow from operating assets and liabilities of $24.8 million. Non-cash items primarily included stock-based compensation of $16.7 million, depreciation and amortization of $12.8 million and change in fair value of contingent consideration of $7.8 million. These charges were partially offset by the sold portion of royalty revenue of $6.5 million. The net decrease in cash flows from operating assets and liabilities was primarily due to an increase of $11.6 million in inventory, increase of $4.8 million in accounts receivable and decrease of $7.4 million in deferred revenue. The net decrease in cash flows from operating assets and liabilities was partially offset by an increase of $2.0 million in accounts payable.

Current wording

During the nine months ended September 30, 2026, we used a net $58.3 million of cash for our operating activities. Cash used in operating activities consisted of a net loss of $58.9 million offset by non-cash adjustments of $58.8 million and a net decrease in cash flow from operating assets and liabilities of $58.2 million. Non-cash items primarily included stock-based compensation of $23.1 million, depreciation and amortization of $20.0 million, the change in fair value of the contingent consideration liability of $18.5 million and interest on the liability for sale of future royalties of $3.6 million. These charges were partially offset by the sold portion of royalty revenue of $10.3 million. The net decrease in cash flows from operating assets and liabilities was primarily due to an increase of $16.2 million in inventory associated with the addition of Furoscix into our product portfolio, recognition of $11.1 million in deferred revenue primarily related to Ralinepag DPI and increase of $7.8 million in prepaid expenses and other current assets. The net decrease in cash flows from operating assets and liabilities was partially offset by an increase of $5.3 million in accounts payable.

Previous wording

During the six months ended June 30, 2025, we generated a net $2.6 million of cash from our operating activities. Cash used in operating activities consisted of net income of $13.8 million offset by non-cash adjustments of $30.6 million and a net decrease in cash flows from operating assets and liabilities of $41.8 million. Non-cash items primarily included stock-based compensation of $12.9 million, loss on foreign currency transactions of $7.9 million and interest on liability for sale of future royalties of $7.1 million. These charges were partially offset by the sold portion of royalty revenue of $6.1 million. The net decrease in cash flows from operating assets and liabilities was primarily due to an increase of $15.3 million in accounts receivable, decrease of $9.3 million in accrued expenses and other current liabilities and decrease of $7.1 million in deferred revenue.

Current wording

During the nine months ended September 30, 2025, we generated a net $26.2 million of cash from our operating activities. Cash used in operating activities consisted of net income of $21.8 million offset by non-cash adjustments of $47.0 million and a net decrease in cash flows from operating assets and liabilities of $42.6 million. Non-cash items primarily included stock-based compensation of $17.2 million, loss on foreign currency transactions of $7.8 million and interest on liability for sale of future royalties of $10.6 million. These charges were partially offset by the sold portion of royalty revenue of $9.5 million. The net decrease in cash flows from operating assets and liabilities was primarily due to a decrease of $12.4 million in prepaid expenses and other current assets and a decrease of $10.1 million in accrued expenses and other current liabilities.

Previous wording

Cash provided by investing activities of $36.6 million for the six months ended June 30, 2026 was primarily due to $53.9 million of proceeds from maturities of available-for-sale securities. Cash provided was partially offset by the purchase of $10.3 million of available-for-sale securities as well as $7.0 million of property and equipment.

Current wording

Cash provided by investing activities of $36.4 million for the nine months ended September 30, 2026 was primarily due to $90.3 million of proceeds from maturities of available-for-sale securities. Cash provided was partially offset by the purchase of $43.8 million of available-for-sale securities as well as $10.2 million of property and equipment.

Previous wording

Cash provided by investing activities of $12.2 million for the six months ended June 30, 2025 was primarily due to the maturity of $101.8 million of debt securities, partially offset by the purchase of $88.1 million of debt securities.

Current wording

Cash used in investing activities of $12.8 million for the nine months ended September 30, 2025 was primarily due to the $10.0 million issuance of a note receivable related to our acquisition of scPharma and the purchase of $144.1 million of debt securities, partially offset by the maturity of $143.8 million of debt securities.

Previous wording

Cash used in financing activities of $34.8 million for the six months ended June 30, 2026 was primarily due to payments made to settle our senior convertible notes.

Current wording

Cash used in financing activities of $11.7 million for the nine months ended September 30, 2026 was primarily due to payments made to settle our senior convertible notes and the payment of contingent consideration related to acquisition of scPharma. Cash used in financing activities was partially offset by net proceeds of $49.8 million from the issuance of common stock and pre-funded warrants pursuant to our private placement offering.

Previous wording

Cash used in financing activities of $4.1 million for the six months ended June 30, 2025 was primarily due to $4.4 million of payments to taxing authorities from equity withheld upon vesting of RSUs and stock options partially offset by $1.3 million in proceeds from our market price stock purchase plan and employee stock purchase plan.

Current wording

Cash provided by financing activities of $67.7 million for the nine months ended September 30, 2025 was primarily due to proceeds from a term loan of $75.0 million under the Blackstone Credit Facility, partially offset by $5.1 million of payments to taxing authorities from equity withheld upon vesting of RSUs and stock options and loan issuance costs of $2.3 million.

Previous wording

We believe that we will be able to meet our near-term liquidity needs based on our cash, cash equivalents and investments on hand, sales of Afrezza, Furoscix and V-Go, royalties and manufacturing revenue from the production and sale of Tyvaso DPI and, if necessary, borrowings under the Blackstone Credit Facility, as well as through debt or equity financing, for our long-term liquidity needs. We expect to continue to incur expenditures for the foreseeable future in support of our manufacturing operations, sales and marketing costs for our products and development costs for other product candidates in our pipeline. As of June 30, 2026, we had capital resources comprised of cash, cash equivalents and investments totaling $111.1 million.

Current wording

We believe that we will be able to meet our near-term liquidity needs based on our cash, cash equivalents and investments on hand, sales of Afrezza, Furoscix and V-Go, royalties and manufacturing revenue from the production and sale of Tyvaso DPI and, if necessary, borrowings under the Blackstone Credit Facility, as well as through debt or equity financing, for our long-term liquidity needs. We expect to continue to incur expenditures for the foreseeable future in support of our manufacturing operations, sales and marketing costs for our products and development costs for other product candidates in our pipeline. As of September 30, 2026, we had capital resources comprised of cash, cash equivalents and investments totaling $96.6 million.