PepGen Inc.
For the period ended Sep 30, 2026. Filed Nov 10, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 10, 2026
PEPG$4.61+92.9%Stored close · as of Nov 10, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001193125-26-336754
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-10.
0001193125-26-454407
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 109 previous paragraphs and 115 current paragraphs.
81 unchanged; 24 reworded; 9 added; 3 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
Video hand opening time (vHOT), an objective measure of myotonia, improved 4.3-seconds at week 13 and 3.9-seconds at week 16; placebo improved 0.2 seconds at week 16. A dose dependent splicing correction of CLCN1, a muscle chloride channel believed to be the primary driver of myotonia in DM1, was also observed;
Current report
Hand grip strength demonstrated a 6.3-point improvement in maximum predicted percent normal (PPN) score from baseline at week 16; placebo demonstrated a 0.9-point improvement in PPN at week 16;
Current report
The 10-Meter Walk/Run Test (10mWRT) improved by 0.4 seconds while placebo improved 0.2 seconds, each at week 16.
Current report
Patient Reported Outcomes measures were inconclusive at week 16; Patient Global Impression of Change (PGI-C) showed a favorable directional trend at 10 mg/kg versus placebo, and Myotonic Dystrophy Health Index (MDHI) total scores showed mixed results due to improvements in all groups, including the placebo arm, and differences in baseline measurements.
Current report
Results from the 12.5 mg/kg cohort of FREEDOM2, which is fully enrolled, are expected in the first half of 2027. To date, 19 participants have enrolled in the open-label extension study with 100 doses given at 5 mg/kg and over 35 doses at 10 mg/kg. No serious adverse events or dose-limiting toxicities have been reported in the open-label extension study, supporting a favorable tolerability profile, with one participant discontinuing treatment due to a hypersensitivity reaction. Data from FREEDOM2 and the FREEDOM-OLE studies are expected to support an end-of-Phase 2 meeting with the FDA in the second half of 2027 pending removal of the partial clinical hold in the United States.
Current report
Research and development expenses increased by $1.1 million from $13.4 million for the three months ended September 30, 2025, to $14.5 million for the three months ended September 30, 2026. This was primarily attributable to a $2.2 million increase in expense for preclinical research related to ongoing studies. This increase was additionally driven by a $0.7 million increase in consulting expense and a $0.3 million increase in clinical trial expense related to the ongoing FREEDOM2 study. These increases were partially offset by a $2.0 million decrease in manufacturing costs related to the timing of manufacturing campaigns.
Current report
Comparison of the Nine Months Ended September 30, 2026 and September 30, 2025
Current report
Net cash provided by investing activities was $7.5 million for the nine months ended September 30, 2026 compared to net cash provided by investing activities of $51.0 million for the nine months ended September 30, 2025.
Current report
Net cash provided by investing activities for both periods was primarily associated with transactions involving our marketable securities.
Removed paragraphs (3)
Previous report
Comparison of the Six Months Ended June 30, 2026 and June 30, 2025
Previous report
For the six months ended June 30, 2026, net cash used in investing activities was $5.0 million resulting from $81.9 million in purchases of marketable securities partially offset by $77.0 million in maturities of marketable securities.
Previous report
For the six months ended June 30, 2025, net cash provided by investing activities was $32.1 million resulting from $39.0 million in maturities of marketable securities partially offset by $6.7 million in purchases of marketable securities and $0.2 million in purchases of property and equipment.
Reworded paragraphs (24)
Previous wording
Our clinical development program for PGN-EDODM1 includes three studies, FREEDOM-DM1, or FREEDOM, a multinational, randomized, double-blind, placebo-controlled Phase 1 single ascending dose, or SAD, study, FREEDOM2-DM1, or FREEDOM2, a multinational, randomized, double blind, placebo-controlled Phase 2 MAD study and FREEDOM-OLE, which is an open label extension study open to participants who meet its eligibility criteria and have completed either the FREEDOM or FREEDOM2 studies.
Current wording
Our clinical development program for PGN-EDODM1 includes three studies: (1) FREEDOM-DM1, or FREEDOM, a multinational, randomized, double-blind, placebo-controlled Phase 1 single ascending dose, or SAD, study which was conducted in Canada, the United Kingdom and the United States, (2) FREEDOM2-DM1, or FREEDOM2, a multinational, randomized, double blind, placebo-controlled Phase 2 multiple ascending dose, or MAD, study, which is being conducted in Canada, the United Kingdom, South Korea, Australia, and New Zealand, designed to assess PGN-EDODM1’s safety and tolerability, splicing correction and functional outcome measures in DM1 patients, and (3) FREEDOM-OLE, which is an open label extension study open to participants who meet its eligibility criteria and have completed either the FREEDOM or FREEDOM2 studies. The FREEDOM2 study remains on partial clinical hold in the U.S. We are conducting, and remain actively engaged with FDA about, additional nonclinical mouse studies designed to generate data to respond to FDA feedback.
Previous wording
The safety data from the FREEDOM study informed the design of FREEDOM2, which has received regulatory clearance in Canada, the United Kingdom, South Korea, Australia, and New Zealand. The FREEDOM2 study remains on partial clinical hold in the U.S. and we continue to work with the FDA to address questions raised by the FDA as quickly as possible. FREEDOM2 is a Phase 2 randomized, double-blind, placebo-controlled MAD study of PGN-EDODM1 in DM1 patients. FREEDOM2 is designed to assess PGN-EDODM1’s safety and tolerability, splicing correction and functional outcome measures in DM1 patients. We reported topline results from the 5 mg/kg cohort in the FREEDOM2 study where PGN-EDODM1 was generally well-tolerated, with no serious adverse events (SAEs), all related treatment emergent adverse events (TEAEs) reported as mild, all non-related TEAEs reported as mild or moderate, and no signs of cumulative toxicity. Such results also demonstrated a mean splicing correction of 7.3%, compared to 6.8% in placebo-treated patients. However, excluding one outlier patient, patients showed a mean splicing correction of 22.9% as the outlier patient exhibited a worsening in splicing correction (70.8%), reducing the overall group mean to 7.3%. Middle finger vHOT in the treatment group in this cohort showed a positive trend of improvement versus a worsening observed in the placebo group with both returning to baseline at the last assessment. The FREEDOM2 study has completed enrollment of the 10 mg/kg dose cohort with seven of eight patients having completed dosing, and we expect to report data from this cohort in November, 2026. Furthermore, based on the review of available safety data from the 10 mg/kg dose cohort of the FREEEDOM2 study, an independent Data and Safety Monitoring Board, or DSMB, recommended advancing the FREEDOM2 trial into the third and highest dose cohort at 12.5 mg/kg; results from the 12.5 mg/kg cohort of FREEDOM2 are expected in the first half of 2027. The DSMB also approved dose escalation in the open-label extension study, or OLE, from 5 mg/kg to 10 mg/kg dosing.
Current wording
We recently reported topline results from the 10 mg/kg cohort in the FREEDOM2 study where PGN-EDODM1 was generally well-tolerated, with no serious adverse events (SAEs), all related treatment emergent adverse events (TEAEs) and non-related TEAEs reported being mild or moderate, and no signs of cumulative toxicity. At week 13, results from the 10 mg/kg cohort in the FREEDOM2 study demonstrated mean splicing correction of 46.5%. Mean splicing correction in the pooled placebo group (n=4) was 6.8% at week 13. Furthermore, in the 10 mg/kg cohort, certain functional endpoints included:
Previous wording
In the FREEDOM study, we enrolled adult participants with DM1 in multiple geographies including the U.S. and Canada, to evaluate the safety and tolerability of PGN-EDODM1, as well as oligonucleotide muscle concentrations, splicing correction and functional outcome measures at day 28 and at week 16 following a single dose of PGN-EDODM1. We announced data from the three cohorts in the FREEDOM study (5 mg/kg, 10 mg/kg and 15 mg/kg) in 2025, highlighting that PGN-EDODM1 was generally well tolerated at all doses, with all drug-related adverse events mild or moderate in severity and a dose dependent mean splicing correction of 12.3%, 29.1% and 53.7% in the single 5 mg/kg, 10 mg/kg and 15 mg/kg cohorts, respectively.
Current wording
In the Phase 1 FREEDOM study, we enrolled adult participants to evaluate the safety and tolerability of PGN-EDODM1, as well as oligonucleotide muscle concentrations, splicing correction and functional outcome measures at day 28 and at week 16 following a single dose of PGN-EDODM1. We announced data from the three cohorts in the FREEDOM study (5 mg/kg, 10 mg/kg and 15 mg/kg) in 2025, highlighting that PGN-EDODM1 was generally well tolerated at all doses, with all drug-related adverse events mild or moderate in severity and a dose dependent mean splicing correction of 12.3%, 29.1% and 53.7% in the single 5 mg/kg, 10 mg/kg and 15 mg/kg cohorts, respectively. No meaningful improvements in any functional outcomes were observed in this single dose study.
Previous wording
On February 5, 2024, we issued and sold 1,000,000 shares of common stock at a purchase price of $10.00 per share under our at-the-market offering program, or ATM program, pursuant to an At-the-Market Equity Offering Sales Agreement, or Sales Agreement, with Stifel, Nicolaus & Company, Incorporated, or Stifel, resulting in net proceeds of $9.9 million. On February 9, 2024, we issued and sold 7,530,000 shares of common stock at a purchase price of $10.635 per share, which was the closing sale price of our common stock on the Nasdaq Global Select Market on February 6, 2024, in an underwritten follow-on offering, or the 2024 Offering. The 2024 Offering resulted in net proceeds of $76.4 million after deducting underwriters' fees of $3.7 million. Net proceeds from the ATM program and 2024 Offering, after deducting underwriters’ fees and costs of the offerings, were $86.3 million. During the six months ended June 30, 2026, the Company sold 237,500 shares of common stock under the Sales Agreement resulting in net proceeds of $1.5 million.
Current wording
On February 5, 2024, we issued and sold 1,000,000 shares of common stock at a purchase price of $10.00 per share under our at-the-market offering program, or ATM program, pursuant to an At-the-Market Equity Offering Sales Agreement, or Sales Agreement, with Stifel, Nicolaus & Company, Incorporated, or Stifel, resulting in net proceeds of $9.9 million. On February 9, 2024, we issued and sold 7,530,000 shares of common stock at a purchase price of $10.635 per share, which was the closing sale price of our common stock on the Nasdaq Global Select Market on February 6, 2024, in an underwritten follow-on offering, or the 2024 Offering. The 2024 Offering resulted in net proceeds of $76.4 million after deducting underwriters' fees of $3.7 million. Net proceeds from the ATM program and 2024 Offering, after deducting underwriters’ fees and costs of the offerings, were $86.3 million. During the nine months ended September 30, 2026, the Company sold 237,500 shares of common stock under the Sales Agreement resulting in net proceeds of $1.5 million.
Previous wording
We have incurred operating losses in each year since our inception. Our net losses were $35.6 million and $53.3 million for the six months ended June 30, 2026 and June 30, 2025, respectively. As of June 30, 2026, we had cash, cash equivalents, and marketable securities of $117.2 million. As of June 30, 2026, we had an accumulated deficit of $396.7 million. Notwithstanding our decision to cease our research and development efforts in DMD, which we announced on May 28, 2025, we expect our expenses and operating losses will continue as we conduct our ongoing preclinical studies and current and planned clinical trials of PGN-EDODM1, continue our research and development activities, utilize third parties to manufacture our product candidates and related raw materials, hire additional personnel, protect our intellectual property and incur additional costs associated with being a public company, including audit, legal, regulatory, and tax-related services associated with maintaining compliance with an exchange listing and SEC requirements, director and officer insurance premiums, and investor relations costs. In addition, we have several development, regulatory and commercial milestone payment obligations under our licensing arrangements. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our preclinical studies, current and planned clinical trials, manufacturing campaigns and our expenditures on other research and development activities.
Current wording
We have incurred operating losses in each year since our inception. Our net losses were $55.0 million and $71.3 million for the nine months ended September 30, 2026 and September 30, 2025, respectively. As of September 30, 2026, we had cash, cash equivalents, and marketable securities of $104.8 million. As of September 30, 2026, we had an accumulated deficit of $416.1 million. Notwithstanding our decision to cease our research and development efforts in DMD, which we announced on May 28, 2025, we expect our expenses and operating losses will continue as we conduct our ongoing preclinical studies and current and planned clinical trials of PGN-EDODM1, continue our research and development activities, utilize third parties to manufacture our product candidates and related raw materials, hire additional personnel, protect our intellectual property and incur additional costs associated with being a public company, including audit, legal, regulatory, and tax-related services associated with maintaining compliance with an exchange listing and SEC requirements, director and officer insurance premiums, and investor relations costs. In addition, we have several development, regulatory and commercial milestone payment obligations under our licensing arrangements. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our preclinical studies, current and planned clinical trials, manufacturing campaigns and our expenditures on other research and development activities.
Previous wording
We believe that our existing cash, cash equivalents and marketable securities will be sufficient to fund our currently planned operations into the fourth quarter of 2027. We do not expect to generate any revenues from product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our product candidates, which will not be for at least the next several years, if ever. If we obtain regulatory approval for any of our product candidates, we expect to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution. Accordingly, until such time as we can generate significant revenue from sales of our product candidates, if ever, we expect to finance our cash needs through equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. However, we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. Our failure to raise capital or enter into such other arrangements when needed would have a negative impact on our financial condition and could force us to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.
Current wording
We believe that our existing cash, cash equivalents and marketable securities will be sufficient to fund our currently planned operations into 2028. We do not expect to generate any revenues from product sales unless and until we successfully complete development and obtain regulatory approval for one or more of our product candidates, which will not be for at least the next several years, if ever. If we obtain regulatory approval for any of our product candidates, we expect to incur significant commercialization expenses related to product sales, marketing, manufacturing and distribution. Accordingly, until such time as we can generate significant revenue from sales of our product candidates, if ever, we expect to finance our cash needs through equity offerings, debt financings or other capital sources, including potential collaborations, licenses and other similar arrangements. However, we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. Our failure to raise capital or enter into such other arrangements when needed would have a negative impact on our financial condition and could force us to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.
Previous wording
The following table (in thousands) summarizes our research and development expenses for the three and six months ended June 30, 2026 and June 30, 2025. The direct external development program expenses reflect external costs attributable to our clinical development candidates and preclinical candidates selected for further development. Our internal resources, personnel and infrastructure are not directly tied to any one research or drug discovery program and are deployed across multiple programs. As such, we do not track internal expenses on a program-specific basis.
Current wording
The following table (in thousands) summarizes our research and development expenses for the three and nine months ended September 30, 2026 and September 30, 2025. The direct external development program expenses reflect external costs attributable to our clinical development candidates and preclinical candidates selected for further development. Our internal resources, personnel and infrastructure are not directly tied to any one research or drug discovery program and are deployed across multiple programs. As such, we do not track internal expenses on a program-specific basis.
Previous wording
The timelines and costs associated with research and development activities are uncertain and can vary significantly for our product candidate and development program due to the inherently unpredictable nature of preclinical and clinical development. We previously announced our decision to focus our development efforts on PGN-EDODM1, and to cease development of our DMD-related programs, and may make further determinations as to which programs in our research and development pipeline to pursue and how much funding to direct to each program. We will need to raise substantial additional capital in the future.
Current wording
The timelines and costs associated with research and development activities are uncertain and can vary significantly for our product candidate and development program due to the inherently unpredictable nature of preclinical and clinical development. We previously announced our decision to focus our development efforts on PGN-EDODM1, and to cease development of our
Previous wording
General and administrative expenses increased by $0.9 million from $11.5 million for the six months ended June 30, 2025, to $12.4 million for the six months ended June 30, 2026. The increase was primarily driven by an increase of $0.5 million in personnel-related costs.
Current wording
General and administrative expenses increased by $0.7 million from $5.2 million for the three months ended September 30, 2025, to $5.9 million for the three months ended September 30, 2026. The increase was primarily driven by an increase of $1.0 million in personnel-related costs, including $0.5 million in stock-based compensation expense. This increase was partially offset by a $0.4 million decrease in consulting and legal expenses.
Previous wording
Other income (expense), net was $1.1 million for the three months ended June 30, 2026 and $0.8 million for the three months ended June 30, 2025. Interest income is earned on the Company's cash equivalents and marketable securities.
Current wording
Other income (expense), net was $1.0 million for the three months ended September 30, 2026 and $0.6 million for the three months ended September 30, 2025. Interest income is earned on the Company's cash equivalents and marketable securities.
Previous wording
Income tax expense was $16,000 for the three months ended June 30, 2026 for state taxes on interest income generated from the Company's cash equivalents and marketable securities. Income tax expense was nil for the three months ended June 30, 2025.
Current wording
Income tax expense was $13,000 for the three months ended September 30, 2026 for state taxes on interest income generated from the Company's cash equivalents and marketable securities. Income tax expense was nil for the three months ended September 30, 2025.
Previous wording
The following table summarizes our results of operations for the six months ended June 30, 2026 and June 30, 2025 (in thousands):
Current wording
The following table summarizes our results of operations for the nine months ended September 30, 2026 and September 30, 2025 (in thousands):
Previous wording
Research and development expenses decreased by $18.2 million from $43.8 million for the six months ended June 30, 2025, to $25.5 million for the six months ended June 30, 2026. This was primarily attributable to a $11.9 million decrease in manufacturing costs related to the timing of manufacturing campaigns, a $3.5 million decrease in personnel-related costs and a $0.7 million decrease related to a non-cash charge taken during the prior year associated with the impairment of unused lab equipment. The decrease was additionally driven by a $2.6 million decrease in clinical trial expense as, prior to the discontinuation of our DMD program in late May 2025, we had two programs in clinical trials during the first half of the prior year, and there was a $0.7 million charge taken during the second quarter in the prior year for estimated wind-down costs for the two clinical trials for PGN-EDO51. These decreases are partially offset by a $0.5 million increase in consulting expense.
Current wording
Research and development expenses decreased by $17.2 million from $57.2 million for the nine months ended September 30, 2025, to $40.0 million for the nine months ended September 30, 2026. This was primarily attributable to a $13.8 million decrease in manufacturing costs related to the timing of manufacturing campaigns, a $3.4 million decrease in personnel-related costs, and a $0.7 million decrease related to a non-cash charge taken during the prior year associated with the impairment of unused lab equipment. The decrease was additionally driven by a $2.3 million decrease in clinical trial expense as, prior to the discontinuation of our DMD program in late May 2025, we had two programs in clinical trials during a portion of the prior year, and there was a $0.7 million charge taken during the second quarter in the prior year for estimated wind-down costs for the two clinical trials for PGN-EDO51. These decreases are partially offset by a $2.5 million increase in expense for preclinical research related to ongoing studies and a $1.2 million increase in consulting expense.
Previous wording
General and administrative expenses increased by $0.9 million from $5.5 million for the three months ended June 30, 2025, to $6.4 million for the three months ended June 30, 2026. The increase was primarily driven by an increase of $0.7 million in personnel-related costs, including $0.6 million in stock-based compensation expense.
Current wording
General and administrative expenses increased by $1.5 million from $16.7 million for the nine months ended September 30, 2025, to $18.3 million for the nine months ended September 30, 2026. The increase was primarily driven by an increase of $1.6 million in personnel-related costs, including $1.1 million in stock-based compensation expense.
Previous wording
Other income (expense), net was $2.3 million for the six months ended June 30, 2026 and $2.0 million for the six months ended June 30, 2025. Interest income is earned on the Company's cash equivalents and marketable securities.
Current wording
Other income (expense), net was $3.3 million for the nine months ended September 30, 2026 and $2.6 million for the nine months ended September 30, 2025. Interest income is earned on the Company's cash equivalents and marketable securities.
Previous wording
Income tax expense was $31,000 for the six months ended June 30, 2026 for state taxes on interest income generated from the Company's cash equivalents and marketable securities. Income tax expense was nil for the six months ended June 30, 2025.
Current wording
Income tax expense was $44,000 for the nine months ended September 30, 2026 for state taxes on interest income generated from the Company's cash equivalents and marketable securities. Income tax expense was nil for the nine months ended September 30, 2025.
Previous wording
On August 8, 2023, we filed a prospectus supplement and entered into the Sales Agreement with Stifel, as sales agent, which provides for the issuance and sale by us of up to $100.0 million of shares of common stock from time to time under the ATM program. On February 5, 2024, we issued and sold 1,000,000 shares of common stock at a purchase price of $10.00 per share under the ATM program, resulting in net proceeds of $9.9 million. During the six months ended June 30, 2026, the Company sold 237,500 shares of common stock under the Sales Agreement resulting in net proceeds of $1.5 million.
Current wording
On August 8, 2023, we filed a prospectus supplement and entered into the Sales Agreement with Stifel, as sales agent, which provides for the issuance and sale by us of up to $100.0 million of shares of common stock from time to time under the ATM program. On February 5, 2024, we issued and sold 1,000,000 shares of common stock at a purchase price of $10.00 per share under the ATM program, resulting in net proceeds of $9.9 million. During the nine months ended September 30, 2026, the Company sold 237,500 shares of common stock under the Sales Agreement resulting in net proceeds of $1.5 million.
Previous wording
On May 18, 2026, we filed a shelf registration statement on Form S-3 with the SEC, which covers the offering, issuance and sale of an amount up to $400.0 million in the aggregate of shares of our common stock, preferred stock, debt securities, warrants, and/or units or any combination thereof, which was declared effective on May 21, 2026. Also on May 16, 2026, we filed a prospectus supplement and entered into the Sales Agreement with Stifel, as sales agent, which provides for the issuance and sale by us of up to $100.0 million of shares of common stock from time to time under the ATM program.
Current wording
On May 18, 2026, we filed a shelf registration statement on Form S-3 with the SEC, which covers the offering, issuance and sale of an amount up to $400.0 million in the aggregate of shares of our common stock, preferred stock, debt securities, warrants, and/or units or any combination thereof, which was declared effective on May 21, 2026. Also on May 18, 2026, we filed a sales agreement prospectus as part of our shelf registration statement on Form S-3 and entered into the Sales Agreement with Stifel, as sales agent, which provides for the issuance and sale by us of up to $100.0 million of shares of common stock from time to time under the ATM program.
Previous wording
As of June 30, 2026, we had cash, cash equivalents, and marketable securities of $117.2 million. We believe that our existing cash, cash equivalents, and marketable securities will be sufficient to fund our currently planned operations into the fourth quarter of 2027. However, our forecast for the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. Additionally, the process of conducting preclinical studies and testing product candidates in clinical trials is costly, and the timing of progress and expenses in these studies and trials is uncertain.
Current wording
As of September 30, 2026, we had cash, cash equivalents, and marketable securities of $104.8 million. We believe that our existing cash, cash equivalents, and marketable securities will be sufficient to fund our currently planned operations into 2028. However, our forecast for the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. Additionally, the process of conducting preclinical studies and testing product candidates in clinical trials is costly, and the timing of progress and expenses in these studies and trials is uncertain.
Previous wording
The following table sets forth a summary of the net cash flow activity for the six months ended June 30, 2026 and June 30, 2025 (in thousands):
Current wording
The following table sets forth a summary of the net cash flow activity for the nine months ended September 30, 2026 and September 30, 2025 (in thousands):
Previous wording
For the six months ended June 30, 2026, net cash used in operating activities was $34.2 million resulting from our net loss of $35.6 million and changes in our operating assets and liabilities of $5.6 million, partially offset by non-cash adjustments of $6.9 million. The net changes in our operating assets and liabilities were primarily due to a decrease of $4.0 million in accrued expenses. The change was further driven by a decrease in operating lease liabilities of $1.6 million. The non-cash adjustments included $6.2 million of stock-based compensation, $0.6 million of depreciation expense, $1.9 million of amortization and interest accretion on our operating lease, and $1.7 million of amortization of discounts on our marketable securities.
Current wording
For the nine months ended September 30, 2026, net cash used in operating activities was $47.4 million resulting from our net loss of $55.0 million and changes in our operating assets and liabilities of $2.6 million, partially offset by non-cash adjustments of $10.2 million. The net changes in our operating assets and liabilities were primarily due to a decrease in operating lease liabilities of $2.4 million. The non-cash adjustments included $9.1 million of stock-based compensation, $0.8 million of depreciation expense, $2.8 million of amortization and interest accretion on our operating lease, and $2.6 million of amortization of discounts on our marketable securities.
Previous wording
For the six months ended June 30, 2025, net cash used in operating activities was $46.5 million resulting from our net loss of $53.3 million and changes in our operating assets and liabilities of $1.2 million, partially offset by non-cash adjustments of $7.9 million. The net changes in our operating assets and liabilities were primarily due to a decrease in operating lease liabilities of $1.5 million. The change was further driven by a decrease in accounts payable of $0.9 million, an increase in accrued expenses of $0.5 million and a decrease in prepaids and other current assets of $0.7 million. The non-cash adjustments included $5.8 million of stock-based compensation, $0.7 million of depreciation expense, $1.2 million of amortization of discounts on our marketable securities, and $1.9 million of amortization and interest accretion on our operating lease. Additionally, there was a non-cash adjustment of $0.7 million related to the impairment of unused lab equipment.
Current wording
For the nine months ended September 30, 2025, net cash used in operating activities was $65.8 million resulting from our net loss of $71.3 million and changes in our operating assets and liabilities of $5.8 million, partially offset by non-cash adjustments of $11.3 million. The net changes in our operating assets and liabilities were primarily due to a decrease of $3.5 million in accrued expenses and a decrease of $2.3 million in operating lease liabilities. The non-cash adjustments included $8.2 million of stock-based compensation, $1.1 million of depreciation expense, $1.4 million of amortization of discounts on our marketable securities, and $2.8 million of amortization and interest accretion on our operating lease. Additionally, there was a non-cash adjustment of $0.7 million related to the impairment of unused lab equipment.
Previous wording
For the six months ended June 30, 2026, net cash provided by financing activities was $1.5 million resulting primarily from proceeds from the sale of shares of common stock under the Sales Agreement.
Current wording
For the nine months ended September 30, 2026, net cash provided by financing activities was $1.4 million resulting primarily from proceeds from the sale of shares of common stock under the Sales Agreement.
Previous wording
For the six months ended June 30, 2025, net cash provided by financing activities was $0.1 million of proceeds from the purchase of shares under employee equity plans.
Current wording
For the nine months ended September 30, 2025, net cash provided by financing activities was $108.2 million resulting from $108.1 million in proceeds from the 2025 Offering and $0.1 million of proceeds from the purchase of shares under employee equity plans, partially offset by $0.1 million in the payment of offering costs.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
DMD-related programs, and may make further determinations as to which programs in our research and development pipeline to pursue and how much funding to direct to each program. We will need to raise substantial additional capital in the future.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Research and development expenses decreased by $5.9 million from $18.4 million for the three months ended June 30, 2025, to $12.5 million for the three months ended June 30, 2026. This was primarily attributable to a $2.3 million decrease in clinical trial expense as, prior to the discontinuation of our DMD program in late May 2025, we had two programs in clinical trials during part of the second quarter of the prior year. Additionally, there was a $0.7 million charge taken during the second quarter in the prior year for estimated wind-down costs for the two clinical trials for PGN-EDO51. The decrease was additionally driven by a $2.2 million decrease in manufacturing costs related to the timing of manufacturing campaigns, a $1.1 million decrease in personnel-related costs, and a $0.7 million decrease related to a non-cash charge taken during the prior year associated with the impairment of unused lab equipment. These decreases are partially offset by a $0.4 million increase in consulting expense.