EBR Systems, Inc.

Previous wording

We have launched WiSE with the focus on driving adoption of WiSE at key, high-volume, sites within the U.S. to be followed by select, high-volume sites in markets outside the U.S. (“OUS”) that we would target after evaluating regulatory and reimbursement considerations.

Current wording

We have launched WiSE with the focus on driving adoption of WiSE at key, high-volume, hospitals or medical facilities within the U.S. to be followed by select, high-volume hospitals or medical facilities in markets outside the U.S. (“OUS”) that we would target after evaluating regulatory and reimbursement considerations.

Previous wording

As a result of its breakthrough device designation (“BDD”), our WiSE CRT technology is eligible for incremental payment coverage in the U.S. for up to three years following FDA approval. The Centers for Medicare & Medicaid Services (“CMS”) has approved of the New Technology Add-On Payment (“NTAP”) for WiSE, commencing October 1, 2025. The NTAP is designed to bridge the financial gap between the costs of innovative technologies and the standard Medicare severity Diagnosis Related Groups (“MS-DRG” or “DRG”) payment structure in place, while encouraging early adoption of the breakthrough medical advancements used in the inpatient setting for Medicare patients. NTAP secures the maximum reimbursement rate of 65% of the cost of WiSE. This is in addition to the DRG payments, which are intended to cover the procedure and the remaining device cost. In June 2025, we received preliminary approval for Transitional Pass-Through (“TPT”) reimbursement scheme of WiSE. Preliminary approval for the TPT reimbursement scheme, which is expected to commence in October 2025 and if approved will be effective for three years, is expected to provide hospitals with Medicare reimbursement when treating patients in an outpatient setting. In combination, if approved, these reimbursements are intended to fully cover the cost of WiSE in a hospital setting.

Current wording

As a result of its breakthrough device designation (“BDD”), our WiSE CRT technology is eligible for incremental payment coverage in the U.S. for up to three years following FDA approval. The Centers for Medicare & Medicaid Services (“CMS”) has approved of the New Technology Add-On Payment (“NTAP”) for WiSE, commencing October 1, 2025. The NTAP is designed to bridge the financial gap between the costs of innovative technologies and the standard Medicare severity Diagnosis Related Groups (“MS-DRG” or “DRG”) payment structure in place, while encouraging early adoption of the breakthrough medical advancements used in the inpatient setting for Medicare patients. NTAP secures the maximum reimbursement rate of 65% of the cost of WiSE. This is in addition to the DRG payments, which are intended to cover the procedure and the remaining device cost. In June 2025, we received preliminary approval for Transitional Pass-Through (“TPT”) reimbursement scheme of WiSE. Preliminary approval for the TPT reimbursement scheme, will commence October 1, 2025, and is effective for three years. TPT provides hospitals with Medicare reimbursement when treating patients in an outpatient setting. In combination, these reimbursements are intended to fully cover the cost of WiSE in a hospital or outpatient setting.

Previous wording

Since inception, we have incurred significant net losses and expect to continue to incur net losses for the foreseeable future. Since our inception, our operations have been financed primarily by net proceeds from the sale of our CDIs, common stock, convertible preferred stock, and indebtedness. As of June 30, 2025, we had $87.2 million in cash, cash equivalents, restricted cash, and marketable securities and an accumulated deficit of $376.0 million.

Current wording

Since inception, we have incurred significant net losses and expect to continue to incur net losses for the foreseeable future. Since our inception, our operations have been financed primarily by net proceeds from the sale of our CDIs, common stock, convertible preferred stock, and indebtedness. As of September 30, 2025, we had $73.0 million in cash, cash equivalents, restricted cash, and marketable securities and an accumulated deficit of $388.2 million.

Previous wording

In May 2025, we completed an institutional placement of 55,900,000 CDIs representing the same number of common stock at $0.64 per share, for proceeds of $33,468,468, net of $2,497,592 of related issuance costs. In June 2025, we completed a non-underwritten rights offering to existing stockholders, or Securities Purchase Plan, and issued an additional 20,000,000 CDIs representing the same number of common stock at $0.64 per share, for proceeds of $12,760,947, net of $101,053 of related issuance costs.

Current wording

In May 2025, we completed an institutional placement of 55,900,000 CDIs representing the same number of common stock at $0.64 per share, for proceeds of $33,467,662, net of $2,498,398 of related issuance costs. In June 2025, we completed a non-underwritten rights offering to existing stockholders, or Securities Purchase Plan, and issued an additional 20,000,000 CDIs representing the same number of common stock at $0.64 per share, for proceeds of $12,751,318, net of $110,682 of related issuance costs.

Previous wording

Our WiSE CRT System has been approved by the FDA for commercial distribution in April 2025, and we began commercializing WiSE during the second quarter of 2025. The commercial potential of and our ability to successfully commercialize WiSE is unproven and will require, among other things, effective sales, marketing, manufacturing, distribution, information systems and pricing strategies, as well as compliance with applicable laws and regulations. Based on our current operating plans and assumptions we believe that our existing cash, cash equivalents, and current and noncurrent marketable securities, together with projected revenue from the U.S of the WiSE CRT System will be sufficient to fund our projected operating requirements into the first quarter of 2027.

Current wording

Our WiSE CRT System received approval from the FDA for commercial distribution in April 2025, and we began commercializing WiSE during the second quarter of 2025. The commercial potential of and our ability to successfully commercialize WiSE is unproven and will require, among other things, effective sales, marketing, manufacturing, distribution, information systems and pricing strategies, as well as compliance with applicable laws and regulations. Based on our current operating plans and assumptions we believe that our existing cash, cash equivalents, and current and noncurrent marketable securities, together with projected revenue from the U.S of the WiSE CRT System will be sufficient to fund our projected operating requirements for at least the next 12 months from the date of this filing.

Previous wording

We derive most of our revenue from sales of WiSE to the hospital facilities that implant our WiSE CRT System. We recognize revenue upon the transfer of goods or services to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. Specifically, revenue from the sale of WiSE is recognized at an amount that reflects the expected consideration upon notice that our products have been used in a surgical procedure. Our revenue fluctuates primarily based on the volume of procedures performed. Our revenue is expected continue to fluctuate in the future from quarter-to-quarter due to a variety of factors, including the success of our sales force in expanding adoption of WiSE in new accounts and the number of physicians who are aware of and implant WiSE.

Current wording

We derive most of our revenue from sales of WiSE to the hospital facilities that implant our WiSE CRT System. We recognize revenue upon the transfer of goods or services to a customer at an amount that reflects the expected consideration to be received in exchange for those goods or services. Specifically, revenue from the sale of WiSE is recognized at an amount that reflects the expected consideration upon notice that our products have been used in a surgical procedure. Our revenue fluctuates primarily based on the volume of procedures performed. Our revenue is expected to continue to fluctuate in the future from quarter-to-quarter due to a variety of factors, including the success of our sales force in expanding adoption of WiSE in new accounts and the number of physicians who are aware of and implant WiSE.

Previous wording

Other income includes reimbursements of clinical trial expenses.

Current wording

Other income includes reimbursements of clinical trial expenses as well as refundable tax incentives from the Australian Taxation Office.

Previous wording

We recognize all of our revenue from contracts with customers at a point in time. As the majority of revenue consists of sales of WiSE and battery replacements, where our sales representative provides assistance at the point of implantation at hospitals or medical facilities, we recognize revenue upon completion of the procedure. We also generate a small portion of our revenue from the sale of surgical tool kits that are ordered in advance of a procedure. As the performance obligation is the delivery of the product, we recognize revenue for the surgical tool kits upon shipment to the customers. For all performance obligations, the standalone selling price is directly observable as these goods are sold separately by us. Sales prices are specified in the executed customer contract and purchase order prior to the transfer of control to the customer. Our standard payment terms are generally net 30 days.

Current wording

We recognize all of our revenue from contracts with customers at a point in time. As the majority of revenue consists of sales of WiSE CRT System and battery replacements, where our sales representative provides assistance at the point of implantation at hospitals or medical facilities, we recognize revenue upon completion of the procedure. We also generate a small portion of our revenue from the sale of surgical tool kits that are ordered in advance of a procedure. As the performance obligation is the delivery of the product, we recognize revenue for surgical tool kits upon shipment to the customers. For all performance obligations, the standalone selling price is directly observable as these goods are sold separately by us. Sales prices are specified in the executed customer contract and purchase order prior to the transfer of control to the customer. Our standard payment terms are generally net 30 days.

Previous wording

We recorded a net loss of $12.0 million in the three months ended June 30, 2025, an increase of $0.5 million, or 4.1%, from the three months ended June 30, 2024. The increased loss in 2025 was due to an increase in selling, general and administrative expenses in 2025, which was partially offset by a decrease in research and development expenses, as discussed below. Other (expense) income, net also increased in 2025 primarily due to a decrease in interest income, as discussed below.

Current wording

We recorded a net loss of $12.2 million in the three months ended September 30, 2025, an increase of $2.1 million, or 21.2%, from the three months ended September 30, 2024. The increased loss in 2025 was due to an increase in selling, general and administrative expenses in 2025, which was partially offset by a decrease in research and development expenses, as discussed below. Other (expense) income, net decreased in 2025 primarily due to an increase in refundable tax incentives, as discussed below.

Previous wording

Revenue and cost of goods sold increased to $0.2 million and $0.1 million, respectively, or 100%, during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, resulting from the recent FDA approval of our WiSE CRT System. During the three months ended June 30, 2025, we had commercial implants at three hospitals in the US.

Current wording

Revenue and cost of goods sold increased to $0.5 million and $0.3 million, respectively, or 100%, during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, resulting from the FDA approval of our WiSE CRT System in April 2025. During the three months ended September 30, 2025, we had commercial implants at four incrementally new hospitals in the US.

Previous wording

Gross profit increased to $0.1 million, or 100% for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, resulting from the recent FDA approval of our WiSE CRT System. Gross margin was 50.0% for the three months ended June 30, 2025. Our gross margin was positively affected and will continue to be affected in the near future by the use of inventory that was previously expensed during our clinical trial. Excluding the use of previously expensed inventory, we would have had a negative gross margin of 51.2%.

Current wording

Gross profit increased to $0.2 million, or 100% for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, resulting from the FDA approval of our WiSE CRT System in April 2025. Gross margin was 43.8% for the three months ended September 30, 2025. Our gross margin was positively affected and will continue to be affected in the near future by the use of inventory that was previously expensed during our clinical trial. Excluding the use of previously expensed inventory, we would have had a negative gross margin of 25.3%.

Previous wording

Research and development expenses decreased by $1.5 million, or 20.4%, during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The decrease was primarily due to a $1.5 million decrease in contract manufacturing, materials and components, resulting from a decrease in professional services related to the development testing of WiSE, as well as capitalization of inventory. Facility-related expenses decreased by $0.3 million, as we capitalized certain overhead costs to inventory during the three months ended June 30, 2025. These decreases were partially offset by a $0.2 million increase in personnel-related expenses, including salaries, bonuses, and certain fringe benefits, resulting from workforce expansion.

Current wording

Research and development expenses decreased by $0.1 million, or 0.9%, during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. The decrease was primarily due to a $0.5 million decrease in contract manufacturing, materials and components, resulting from a decrease in professional services related to the development testing of WiSE, as well as capitalization of inventory. Facility-related expenses decreased by $0.3 million, as we capitalized certain overhead costs to inventory during the three months ended September 30, 2025. These decreases were partially offset by a $0.5 million increase in personnel-related expenses, including salaries, bonuses, and certain fringe benefits, resulting from workforce expansion, and a $0.2 million increase in clinical trial expenses.

Previous wording

Selling, General and administrative expenses increased by $2.0 million, or 61.0%, during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. Personnel-related expenses including salaries, bonuses, stock-based compensation and certain fringe benefits increased by $1.6 million as a result of the expansion of our workforce to support our sales and marketing efforts after the FDA approval of WiSE. Facility-related expenses increased by $0.6 million, primarily resulting from higher non-cash rent expense due to a new lease agreement entered in 2025. Corporate expenses increased by $0.2 million, primarily resulting from the higher expenses related to insurance premiums, investor relations, and computer software licenses. These increases were offset by $0.4 million decrease in professional fees, as we did not incur any additional accounting and legal fees in connection with preparation for Form 10 filing in the current period, as we did during the three months ended June 30, 2024.

Current wording

Selling, General and administrative expenses increased by $3.0 million, or 103.6%, during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. Personnel-related expenses including salaries, bonuses, stock-based compensation and certain fringe benefits increased by $2.3 million as a result of the expansion of our workforce to support our sales and marketing efforts after the FDA approval of WiSE. Travel-related expenses increased by $0.6 million due the expansion of our workforce to support our sales and marketing efforts. Facility-related expenses increased by $0.1 million, primarily resulting from the higher non-cash rent expense due to a new lease agreement entered in 2025.

Previous wording

Other (expense) income, net increased by $0.1 million during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. This increase primarily resulted from a $0.2 million decrease in interest income earned on investments in marketable securities, including the accretion of discounts on marketable securities, which was partially offset by a $0.1 million decrease in interest expense.

Current wording

Other (expense) income, net decreased by $0.6 million during the three months ended September 30, 2025, as compared to the three months ended September 30, 2024. Other income has increased by $0.3 million, primarily resulting from an increase in refundable tax incentives. Interest expense decreased by $0.1 million, and interest income earned on investments in marketable securities, including the accretion of discounts on marketable securities has increased by $0.2 million.

Previous wording

Comparison of the Six Months Ended June 30, 2025, to the Six Months Ended June 30, 2024

Current wording

Comparison of the Nine Months Ended September 30, 2025, to the Nine Months Ended September 30, 2024

Previous wording

We recorded a net loss of $22.5 million in the six months ended June 30, 2025, an increase of $1.9 million, or 9.1%, from the six months ended June 30, 2024. The increased loss in 2025 was due to an increase in general and administrative expenses in 2025, which was partially offset by a decrease in research and development expenses, as discussed below. Other (expense) income, net also increased in 2025 primarily due to a decrease in interest income, as discussed below.

Current wording

We recorded a net loss of $34.7 million in the nine months ended September 30, 2025, an increase of $4.0 million, or 13.1%, from the nine months ended September 30, 2024. The increased loss in 2025 was due to an increase in selling, general and administrative expenses in 2025, which was partially offset by a decrease in research and development expenses, as discussed below. Other (expense) income, net also decreased in 2025 primarily due to an increase in refundable tax incentives and decrease in interest expense, as discussed below.

Previous wording

The following table summarizes our operating results for the six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our operating results for the nine months ended September 30, 2025 and 2024:

Previous wording

Revenue and cost of goods sold increased to $0.2 million and $0.1 million, respectively, or 100%, during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, resulting from the recent FDA approval of our WiSE CRT System. During the six months ended June 30, 2025, we had commercial implants three hospitals in the US.

Current wording

Revenue and cost of goods sold increased to $0.7 million and $0.4 million, respectively, or 100%, during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, resulting from the FDA approval of our WiSE CRT System in April 2025. During the nine months ended September 30, 2025, we had commercial implants at seven hospitals in the US.

Previous wording

Gross profit increased to $0.1 million, or 100% for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, resulting from the recent FDA approval of our WiSE CRT System. Gross margin was 50.0% for the six months ended June 30, 2025. Our gross margin was positively affected and will continue to be affected in the near future by the use of inventory that was previously expensed during our clinical trials. Excluding the use of previously expensed inventory, we would have had a negative gross margin of 51.2%.

Current wording

Gross profit increased to $0.3 million, or 100% for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, resulting from the FDA approval of our WiSE CRT System in April 2025. Gross margin was 45.2% for the nine months ended September 30, 2025. Our gross margin was positively affected and will continue to be affected in the near future by the use of inventory that was previously expensed during our clinical trials. Excluding the use of previously expensed inventory, we would have had a negative gross margin of 31.9%.

Previous wording

Research and development expenses decreased by $2.5 million, or 18.0%, during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The decrease was primarily due to a $2.5 million decrease in contract manufacturing, materials and components, resulting from a decrease in professional services related to the development testing of the WiSE CRT System, as well as capitalization of inventory. Facility-related expenses decreased by $0.8 million, as we capitalized certain overhead costs to inventory during the six months ended June 30, 2025. These decreases were partially offset by a $0.6 million increase in personnel-related expenses, including salaries, bonuses, and certain fringe benefits, resulting from the normal annual salary increases and workforce expansion, and a $0.1 million increase in clinical expenses, primarily resulting from higher travel expenses, including lodging, air travel and ground transportation due to patient follow-up visits for the SOLVE-CRT Study.

Current wording

Research and development expenses decreased by $2.6 million, or 12.7%, during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The decrease was primarily due to a $2.9 million decrease in contract manufacturing, materials and components, resulting from a decrease in professional services related to the development testing of the WiSE CRT System, as well as capitalization of inventory. Facility-related expenses decreased by $1.1 million, as we capitalized certain overhead costs to inventory during the nine months ended September 30, 2025. These decreases were partially offset by a $1.0 million increase in personnel-related expenses, including salaries, bonuses, and certain fringe benefits, resulting from the normal annual salary increases and workforce expansion, and a $0.3 million increase in clinical expenses.

Previous wording

Selling, General and administrative expenses increased by $4.2 million, or 76.9%, during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. Personnel-related expenses including salaries, bonuses, stock-based compensation and certain fringe benefits increased by $2.8 million as a result of the expansion of our workforce to support increased adoption of our WiSE CRT System. Facility-related expenses increased by $0.9 million, primarily resulting from the higher rent expense due to a new lease agreement entered in 2025. Corporate expenses increased by $0.3 million, primarily resulting from the higher expenses related to insurance premiums, investor relations, and computer software. Professional fees increased by $0.2 million, primarily resulting from higher accounting and legal related services associated with being a public reporting company in the US.

Current wording

Selling, General and administrative expenses increased by $7.2 million, or 86.1%, during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. Personnel-related expenses including salaries, bonuses, stock-based compensation and certain fringe benefits increased by $5.2 million as a result of the expansion of our workforce to support increased adoption of our WiSE CRT System. Facility-related and other expenses increased by $0.4 million, primarily resulting from the higher non-cash rent expense due to a new lease agreement entered in 2025. Travel-related expenses increased by $1.2 million due the expansion of our workforce to support our sales and marketing efforts. Corporate expenses increased by $0.4 million, primarily resulting from the higher expenses related to insurance premiums, investor relations, and computer software.

Previous wording

Other (expense) income, net increased by $0.3 million during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. This increase primarily resulted from a $0.5 million decrease in interest income earned on investments in marketable securities, including the accretion of discounts on marketable securities, which was partially offset by a $0.2 million decrease in interest expense.

Current wording

Other (expense) income, net decreased by $0.3 million during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. Other income increased by $0.3 million, primarily resulting from an increase in refundable tax incentives, and interest expense decreased by $0.3 million. These changes were partially offset by a $0.3 million decrease in interest income earned on investments in marketable securities, including the accretion of discounts on marketable securities.

Previous wording

We believe that our cash and cash equivalents, and marketable securities, and anticipated revenues from sales of our WiSE CRT System will be sufficient to fund our operations for at least the next 12 months from the date of this filing. We manage our cash and capital structure to maximize shareholder return, maintain its financial condition and maintain flexibility for future strategic initiatives. We continuously assess our working capital needs, debt and leverage levels, debt maturity schedule, capital expenditure requirements and future investments. As of June 30, 2025 and December 31, 2024, we had approximately $84.6 million and $66.0 million, respectively, in cash, cash equivalents, and marketable securities. In the long-term, our ability to support our working capital and capital expenditure requirements will depend on many factors, including:

Current wording

We believe that our cash and cash equivalents, and marketable securities, and anticipated revenues from sales of our WiSE CRT System will be sufficient to fund our operations for at least the next 12 months from the date of this filing. We manage our cash and capital structure to maximize shareholder return, maintain its financial condition and maintain flexibility for future strategic initiatives. We continuously assess our working capital needs, debt and leverage levels, debt maturity schedule, capital expenditure requirements and future investments. As of September 30, 2025 and December 31, 2024, we had approximately $70.4 million and $66.0 million, respectively, in cash, cash equivalents, and marketable securities. In the long-term, our ability to support our working capital and capital expenditure requirements will depend on many factors, including:

Previous wording

In May 2025, we completed an institutional placement of 55,900,000 CDIs representing the same number of common stock at $0.64 per share, for proceeds of $33,468,468, net of $2,497,592 of related issuance costs. In June 2025, we completed a non-underwritten rights offering to existing stockholders, or Security Purchase Plan, and issued an additional 20,000,000 CDIs representing the same number of common stock at $0.64 per share, for proceeds of $12,760,947, net of $101,053 of related issuance costs.

Current wording

In May 2025, we completed an institutional placement of 55,900,000 CDIs representing the same number of common stock at $0.64 per share, for proceeds of $33,467,662, net of $2,498,398 of related issuance costs. In June 2025, we completed a non-underwritten rights offering to existing stockholders, or Securities Purchase Plan, and issued an additional 20,000,000 CDIs representing the same number of common stock at $0.64 per share, for proceeds of $12,751,318, net of $110,682 of related issuance costs.

Previous wording

As of June 30, 2025, we had $0.8 million in operating lease obligations for our corporate headquarters and laboratory space located in Sunnyvale, California. Additionally, in January 2025, we entered into a new lease agreement for our new corporate headquarters, laboratory and manufacturing facility in Santa Clara, California, for which we had recorded $14.8 million in operating lease obligations as of June 30, 2025.

Current wording

As of September 30, 2025, we had $0.7 million in operating lease obligations for our corporate headquarters and laboratory space located in Sunnyvale, California. Additionally, in January 2025, we entered into a new lease agreement for our new corporate headquarters, laboratory and manufacturing facility in Santa Clara, California, for which we had recorded $15.4 million in operating lease obligations as of September 30, 2025.

Previous wording

In addition, we enter into contracts in the normal course of business with third-party contract organizations for clinical trials, manufacturing and other services and products for operating purposes. In certain instances, our purchase agreements allow us to cancel, reschedule, or adjust our purchase requirements based on our business needs prior to firm orders being placed. Consequently, only a portion of our purchase commitments are firm and noncancelable. As of June 30, 2025, our obligations under such arrangements were approximately $13.5 million.

Current wording

In addition, we enter into contracts in the normal course of business with third-party contract organizations for clinical trials, manufacturing and other services and products for operating purposes. In certain instances, our purchase agreements allow us to cancel, reschedule, or adjust our purchase requirements based on our business needs prior to firm orders being placed. Consequently, only a portion of our purchase commitments are firm and non-cancelable. As of September 30, 2025, our obligations under non-cancelable arrangements were approximately $12.1 million.

Previous wording

As of June 30, 2025, we had working capital of $80.7 million, comprised of current assets of $90.3 million and current liabilities of $9.7 million. Current assets, consisting of cash and cash equivalents, marketable securities, accounts and other receivables, inventory, prepaid expenses, and other current assets, increased by $25.9 million as of June 30, 2025, compared to December 31, 2024. The sale of CDIs discussed above contributed to the overall increase in cash, cash equivalents and marketable securities, resulting in a $21.0 million increase in working capital as of June 30, 2025. Additionally, the capitalization of inventory resulted in a $3.7 million increase in working capital, and an increase in the accounts and other receivables primarily due to the reimbursements for leasehold improvements resulted in a $1.7 million increase in working capital as of June 30, 2025. Current liabilities, consisting primarily of accounts payable, accrued liabilities, lease obligations, and interest payable, increased by approximately $1.4 million as of June 30, 2025, compared to December 31, 2024. The increase primarily resulted from an increase in accounts payable from December 31, 2024 to June 30, 2025, which was mainly due to the activity related to construction of leasehold improvements at the new corporate headquarters.

Current wording

As of September 30, 2025, we had working capital of $71.9 million, comprised of current assets of $82.2 million and current liabilities of $10.3 million. Current assets, consisting of cash and cash equivalents, marketable securities, accounts and other receivables, inventory, prepaid expenses, and other current assets, increased by $17.8 million as of September 30, 2025, compared to December 31, 2024. The sale of CDIs discussed above contributed to the overall increase in cash, cash equivalents and marketable securities, resulting in a $7.7 million increase in working capital as of September 30, 2025. Additionally, the capitalization of inventory resulted in a $8.3 million increase in working capital, and an increase in the accounts and other receivables primarily due to the reimbursements for leasehold improvements resulted in a $2.3 million increase in working capital as of September 30, 2025. Current liabilities, consisting primarily of accounts payable, accrued liabilities, lease obligations, and interest payable, increased by approximately $2.0 million as of September 30, 2025, compared to December 31, 2024. The increase primarily resulted from a $1.3 million increase in accounts payable, which was mainly due to the activity related to construction of leasehold improvements at the new corporate headquarters, as well as the purchases of raw materials. The abovementioned construction of leasehold improvements also resulted in a $0.2 million increase in accrued expenses due to increase in retainage that will be payable upon the project completion. Additionally, the execution of a new lease agreement in 2025 resulted in $0.5 million increase in operating lease liabilities, which contributed to the overall increase in current liabilities.

Previous wording

The following table summarizes our cash flows for the six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our cash flows for the nine months ended September 30, 2025 and 2024:

Previous wording

Net cash used in operating activities during the six months ended June 30, 2025, was $25.0 million, compared to $20.4 million during the six months ended June 30, 2024, representing an increase in use of $4.6 million. This increase is primarily attributed to an increase in net loss of $1.9 million and an increase in use of cash from changes in working capital of $4.2 million, which were partially offset by an increase in non-cash adjustments of $1.5 million.

Current wording

Net cash used in operating activities during the nine months ended September 30, 2025, was $38.1 million, compared to $30.2 million during the nine months ended September 30, 2024, representing an increase in use of $7.9 million. This increase is primarily attributed to an increase in net loss of $4.0 million and an increase in use of cash from changes in working capital of $6.0 million, which were partially offset by an increase in non-cash adjustments of $2.1 million.

Previous wording

Net cash provided by investing activities during the six months ended June 30, 2025, was $18.8 million, compared to $14.0 million the six months ended June 30, 2024, representing an increase in cash provided of $4.8 million. The increase was attributable to a $10.6 million decrease in the purchase of marketable securities, as well as a $5.0 million net increase in cash from the maturities and sales of marketable securities during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. These increases in cash provided from investing activities were partially offset by $0.8 million increase in cash used for purchases of property and equipment during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Current wording

Net cash used in investing activities during the nine months ended September 30, 2025, was $0.3 million, compared to $22.3 million net cash provided during the nine months ended September 30,2024, representing an increase in cash used of $22.6 million. The increase was attributable to a $18.2 million increase in the purchase of marketable securities, a $2.0 million increase in cash used for purchases of property and equipment, and a $2.4 million net decrease in cash provided from the maturities and sales of marketable securities during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.

Previous wording

Net cash provided by financing activities during the six months ended June 30, 2025 was $46.9 million, compared to $0.2 million during the six months ended June 30, 2024, representing an increase of $46.7 million. This increase was primarily attributed to the $46.5 million in proceeds from a capital raise, net of issuance cost, during the six months ended June 30, 2025, as well as by a $0.3 million increase in proceeds from exercise of stock options. These increases were partially offset by $0.1 million decrease in proceeds from borrowings on notes payable during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

Current wording

Net cash provided by financing activities during the nine months ended September 30, 2025 was $46.8 million, compared to $29.8 million during the nine months ended September 30, 2024, representing an increase of $17.0 million. This increase was primarily attributed to the $16.7 million increase in proceeds from a capital raise, net of issuance cost, during the nine months ended September 30, 2025, as well as by a $0.4 million increase in proceeds from exercise of stock options. These increases were partially offset by $0.1 million decrease in proceeds from borrowings on notes payable during the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024.