PRECISION BIOSCIENCES INC
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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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.
Jun 30, 2026 · Filed Aug 6, 2026
DTIL$10.60+7.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001628280-26-030124
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-053837
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 126 previous paragraphs and 133 current paragraphs.
82 unchanged; 25 reworded; 16 added; 17 removed; 2 previous and 10 current paragraphs rearranged.
Tables are not compared: 3 previous and 5 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 (16)
Current report
On May 27, 2026, we presented new and late-breaking clinical data from the ongoing ELIMINATE-B study at the European Association for the Study of the Liver (“EASL”) Congress 2026 in Barcelona, Spain. The data cut on May 4, 2026 was based on 38 doses administered across 16 patients in five cohorts.
Current report
Liver biopsy data demonstrated a 1-log (10-fold) reduction in cccDNA-derived transcripts in one patient after only two administrations of PBGENE-HBV at 0.4 mg/kg, with less than 1% of cccDNA remaining post-treatment. Further biopsy analysis of a second patient, who received three doses at the same dose level and schedule, demonstrated that repeat administrations of PBGENE-HBV cumulatively increase the anti-cccDNA effect in the liver. Together, the biopsy data delivered proof that a gene editor can directly target and eliminate cccDNA in chronic hepatitis B patients.
Current report
Following treatment with PBGENE-HBV, pgRNA became durably undetectable in 100% of patients who had detectable pgRNA prior to treatment. Importantly, the loss of pgRNA was ongoing for up to six months as of the data cut-off. This sustained loss of pgRNA demonstrates the durability of PBGENE-HBV's elimination mechanism designed to directly target and eradicate cccDNA.
Current report
Substantial S-antigen declines were observed in 100% of patients treated, and durability was demonstrated in patients across all dose levels being investigated ranging from 0.2mg/kg to 0.8mg/kg. Additionally, the first patient dosed in the ELIMINATE-B trial continued to demonstrate substantial reductions more than one year after dosing.
Current report
No dose-limiting toxicities have been observed in 16 patients across five cohorts. The etiology of LNP-related hypotension observed during dose escalation was identified and ameliorated through straightforward mitigation measures such as a longer infusion time and a short course of steroids at the time of infusion.
Current report
Since the data update, we have opened new trial sites and continue enrolling additional patients, expanding cohorts 4 (0.4 mg/kg) and 5 (0.65 mg/kg), while collecting additional biopsies and blood biomarker data to further assess viral elimination. The current and future datasets are expected to inform selection of the optimal dosing schedule for Part 2 expansion. We continue our work with global investigators for next phase study design and expect to provide additional updates on the ELIMINATE-B trial progress by the end of 2026.
Current report
We presented new preclinical data at the American Society of Gene & Cell Therapy (“ASGCT”) 2026 Annual Meeting in Boston, Massachusetts. The new data showed that treatment with PBGENE-DMD in early-juvenile mice resulted in significantly higher efficacy across key skeletal and respiratory muscles than treatment in late-juvenile mice over a comparable timeframe. This new data further supports evaluating PBGENE-DMD in younger DMD patient populations, including the 2- to 3-year-old patients, who are a key demographic of the ongoing Phase 1/2 FUNCTION-DMD trial evaluating PBGENE-DMD in boys ages 2 to 7.
Current report
We continue to advance the Phase 1/2 FUNCTION-DMD clinical trial, with two clinical trial sites now active: Arkansas Children's Hospital and Washington University School of Medicine, both recognized centers of excellence for DMD care.
Current report
The study is actively recruiting patients with initial safety data expected for year-end 2026.
Current report
No revenue was recognized for the three months ended June 30, 2026 compared to less than $0.1 million for the three months ended June 30, 2025. Revenue from the prior period was generated from the Novartis Agreement.
Current report
The decrease in platform development and early-stage research expenses of $1.1 million was primarily the result of a decrease in licensing fees and other research and development costs as well as reduced lab supply expenses and facility-related costs as a result of reduced headcount. Direct expenses in PBGENE-HBV increased by $0.7 million, driven by translational assay development expenses and an increase in clinical material manufacturing.
Current report
Comparison of the Six Months Ended June 30, 2026 and June 30, 2025
Current report
Revenue
Current report
Research and development expenses for the six months ended June 30, 2026 were $25.5 million, compared to $26.4 million for the six months ended June 30, 2025. The decrease of $0.9 million was primarily due to a $3.4 million decrease in platform development and early-stage research expenses, partially offset by a $2.5 million increase in our direct expenses in PBGENE-HBV and PBGENE-DMD as the clinical programs continue to advance globally.
Current report
General and administrative expenses were $13.6 million for the six months ended June 30, 2026, compared to 17.7 million for the six months ended June 30, 2025. The decrease of approximately $4.1 million was primarily a result of operational discipline and lower employee-related costs.
Current report
Gain from Equity Method Investment
Removed paragraphs (17)
Previous report
As part of the ongoing assessment of the safety and efficacy profile of PBGENE-HBV after repeat doses in Part 1 dose finding, we have treated 16 patients with 38 administrations of PBGENE-HBV across five cohorts evaluating the impact of escalating dose levels as well as 8-week and 4-week dosing intervals. The goal during Part 1 of the study is to select the dose and schedule that achieves the desired therapeutic index to move to the expansion phase of the ELIMINATE-B trial.
Previous report
Looking ahead, we expect to share further clinical data from the PBGENE-HBV program at hepatitis-focused medical conferences throughout 2026, starting with the European Association for the Study of the Liver (“EASL”).
Previous report
In April 2026, we announced that a late-breaking poster for PBGENE-HBV was accepted for presentation at the EASL Congress 2026. The poster titled, “First evidence of elimination and inactivation of cccDNA in liver biopsies collected from patients with chronic hepatitis B treated with PBGENE-HBV” will be presented by investigator, Man-Fung Yuen, Chair and Professor of Gastroenterology and Hepatology at The University of Hong Kong.
Previous report
Also in April 2026, we announced that we received Clinical Trial Application (“CTA”) approval to expand ELIMINATE-B into France and Romania, broadening the study’s footprint in Europe. Site initiation activities are underway and initial patient screening in those countries is expected in the second quarter of 2026.
Previous report
Following investigational new drug (“IND”) clearance from the U.S. Food and Drug Administration (“FDA”) in early 2026, we advanced Institutional Review Board (“IRB”) activities and clinical trial site activation for the FUNCTION-DMD Phase 1/2 clinical trial for PBGENE-DMD. In April 2026, we activated Arkansas Children’s Hospital as the first clinical trial site and are actively enrolling patients.
Previous report
In March 2026, PBGENE-DMD received FDA Fast Track designation; we hosted a DMD investor event, and we presented preclinical PBGENE-DMD data highlighting durable dystrophin expression and functional benefit at the Muscular Dystrophy Association Clinical & Scientific Conference 2026.
Previous report
PBGENE-3243 is a potential treatment for m.3243 associated mitochondrial disease that is designed to specifically target and eliminate mutant m.3243G mitochondrial DNA, thereby eliminating the root cause of the disease. We have paused development of PBGENE-3243 to prioritize our two lead programs, PBGENE-HBV and PBGENE-DMD.
Previous report
Research and Development Expenses
Previous report
General and Administrative Expenses
Previous report
Interest Expense
Previous report
Interest Income
Previous report
Research and Development Expenses
Previous report
General and Administrative Expenses
Previous report
(Loss) Gain on Changes in Other Fair Value Adjustments
Previous report
Interest Expense
Previous report
Interest Income
Previous report
The change in cash used in operating assets and liabilities is primarily driven by the net changes of accounts receivable as a result of an outstanding receivable from a legacy ARCUS agriculture gene editing collaboration agreement during the three months ended March 31, 2026 as well as the net changes in prepaid expenses year over year, partially offset by the net changes in other liabilities and other current liabilities year over year.
Reworded paragraphs (25)
Previous wording
PBGENE-HBV is our wholly ownedin vivo gene editing program under investigation in a global first-in-human clinical trial, ELIMINATE-B, which is designed to be a potentially curative treatment for chronic hepatitis B infection. In patients with chronic hepatitis B, cccDNA acts as the template to make new infectious viral particles. PBGENE-HBV is the only clinical stage program that targets the elimination of covalently closed circular DNA (“cccDNA”), the sole source of viral replication, leading to sustained loss of hepatitis B virus (“HBV”) DNA and other downstream viral markers. PBGENE-HBV is the firstin vivo gene editing approach to prospectively employ repeat administrations of lipid nanoparticle (“LNP”).
Current wording
PBGENE-HBV is our wholly ownedin vivo gene editing program under investigation in a global clinical trial, ELIMINATE-B, which is designed to be a potentially curative treatment for chronic hepatitis B infection. PBGENE-HBV targets and eliminates covalently closed circular DNA (“cccDNA”), the sole source of viral replication, leading to sustained loss of pre-genomic RNA (“pgRNA”), the precursor for hepatitis B virus (“HBV”) DNA. PBGENE-HBV is the first and onlyin vivo gene elimination approach to prospectively employ repeat administrations of lipid nanoparticle (“LNP”) in chronic hepatitis B with the goal of complete viral cure.
Previous wording
PBGENE-DMD is our wholly-owned development program for the treatment of Duchenne muscular dystrophy, or DMD. PBGENE-DMD is designed to potentially improve function for approximately 60% of patients afflicted with DMD by employing two complementary ARCUS nucleases delivered in a single AAV to excise exons 45-55 of the dystrophin gene. The aim of this approach is to restore a near-full length functional dystrophin protein within the body that more closely resembles normal dystrophin as opposed to synthetic, truncated microdystrophin approaches with minimal functional benefit.
Current wording
PBGENE-DMD is our wholly-owned development candidate for Duchenne muscular dystrophy, or DMD. PBGENE-DMD is designed to durably improve function for approximately 60% of patients with DMD. By employing two complementary ARCUS nucleases in a single adeno-associated virus (“AAV”), PBGENE-DMD excises exons 45-55 of the dystrophin gene, restoring expression of a near full-length dystrophin protein.
Previous wording
In partnership with iECURE, ECUR-506 is an ARCUS-mediated in vivo targeted gene insertion program currently in a first-in-human trial, OTC-HOPE, evaluating ECUR-506 as a potential treatment for neonatal onset ornithine transcarbamylase (“OTC”) deficiency. iECURE previously announced alignment with the FDA on key study elements could support a potential Biologics License Application (“BLA”). The OTC-HOPE study is ongoing in the U.K., the U.S., Australia, and Spain.
Current wording
In partnership with iECURE, ECUR-506 is an ARCUS-mediated in vivo targeted gene insertion program currently in a first-in-human trial, OTC-HOPE, evaluating ECUR-506 as a potential treatment for neonatal-onset ornithine transcarbamylase (“OTC”) deficiency. iECURE previously announced alignment with the U.S. Food and Drug Administration (“FDA”) on key study elements that could support a potential Biologics License Application (“BLA”). The OTC-HOPE study is ongoing in the U.K., the U.S., Australia, and Spain.
Previous wording
iECURE expects to present clinical data from the ongoing OTC-HOPE clinical trial at the American Society of Gene & Cell Therapy (“ASGCT”) Annual Meeting in May 2026. The oral presentation at ASGCT will include preliminary data from study participants in the first three dose cohorts (n=7) of the ongoing OTC-HOPE study, including a decreased rate of hyperammonemic crises following ECUR-506 administration. In addition, iECURE plans to present a poster at the Society for Inherited Metabolic Disorders Annual Meeting in May 2026 featuring one-year post-treatment data from the first infant dosed in the study who achieved a complete clinical response as defined by study protocol, including sustained discontinuation of standard-of-care therapies.
Current wording
iECURE presented clinical data at ASGCT in May 2026, including preliminary data from study participants in the first three dose cohorts (n=7) of the ongoing OTC-HOPE study, and demonstrated that 71% of participants experienced no hyperammonemic crises following ECUR-506 administration. In addition, iECURE presented a poster at the Society for Inherited Metabolic Disorders (“SIMD”) Annual Meeting in May 2026 featuring one-year post-treatment data from the first infant dosed in the study who achieved a complete clinical response as defined by study protocol.
Previous wording
Imugene continues development of azer-cel in diffuse large B-cell lymphoma and has received written guidance from the FDA regarding the registrational pathway for azer-cel. The guidance provided clear alignment with the FDA across key elements required to support advancement into a pivotal study, including dosing regimen, patient population, endpoints, and manufacturing readiness. Azer-cel has been selected for oral presentation at the 2026 American Society of Clinical Oncology Annual Meeting being held in May 2026.
Current wording
Imugene continues development of azer-cel in diffuse large B-cell lymphoma and has received written guidance from the FDA regarding the registrational pathway for azer-cel. The guidance provided clear alignment with the FDA across key elements required to support advancement into a pivotal study, including dosing regimen, patient population, endpoints, and manufacturing readiness. Azer-cel data presented at the 2026 American Society of Clinical Oncology Annual Meeting in May 2026 demonstrated that among 24 patients evaluable for response following their first disease assessment at Day 28, response rates ranging from 50%-100% were observed across all six cancer subtypes.
Previous wording
Separately, azer-cel is being evaluated by TG Therapeutics (Nasdaq: TGTX) in a Phase 1 trial in progressive multiple sclerosis. In March 2026, we announced the achievement of a clinical milestone under its license agreement with TG Therapeutics. As a result, we have earned a cash payment of $7.5 million in proceeds, inclusive of $5.25 million cash and $2.25 million for the purchase of 201,504 shares of our common stock by TG Therapeutics at $11.17 per share. Anticipated 2026 events include presentation of preliminary Phase 1 azer-cel data in progressive multiple sclerosis in the second half of 2026 and commencement of additional exploratory studies in autoimmune diseases outside of multiple sclerosis.
Current wording
Separately, azer-cel is being evaluated by TG Therapeutics (Nasdaq: TGTX) in a Phase 1 trial in progressive multiple sclerosis. We previously announced the achievement of a clinical milestone under our license agreement with TG Therapeutics. As a result, we have earned a cash payment of $7.5 million in proceeds, inclusive of $5.25 million cash and $2.25 million for the purchase of 201,504 shares of our common stock by TG Therapeutics at $11.17 per share.
Previous wording
Changes in fair value on our equity method investment represents changes in the investment value of our equity method investee, Elo Life Systems, Inc. (“Elo”). As of March 31, 2026, Elo is no longer classified as an equity method investment. Any subsequent changes to the investment’s fair value will be recorded through the other fair value adjustments line item.
Current wording
Changes in fair value on our equity method investment represents changes in the investment value of our equity method investee, Elo Life Systems, Inc. (“Elo”). In 2026, Elo is no longer classified as an equity method investment. Any subsequent changes to the investment’s fair value will be recorded through the other fair value adjustments line item.
Previous wording
Research and development expenses for the three months ended March 31, 2026 were $13.1 million, compared to $13.6 million for the three months ended March 31, 2025. The decrease of $0.5 million was primarily due to a $2.3 million decrease in platform development and early-stage research expenses, partially offset by a $1.8 million increase in our direct expenses in PBGENE-DMD and PBGENE-HBV.
Current wording
Research and development expenses for the three months ended June 30, 2026 were $12.4 million, compared to $12.8 million for the three months ended June 30, 2025. The decrease of $0.4 million was primarily due to a $1.1 million decrease in platform development and early-stage research expenses, partially offset by a $0.7 million increase in our direct expenses in PBGENE-HBV and PBGENE-DMD as the clinical programs continue to advance globally.
Previous wording
General and administrative expenses were $6.8 million for the three months ended March 31, 2026, compared to $8.6 million for the three months ended March 31, 2025. The decrease of approximately $1.8 million was primarily due to a $1.6 million decrease in employee-related costs.
Current wording
General and administrative expenses were $6.8 million for the three months ended June 30, 2026, compared to $9.1 million for the three months ended June 30, 2025. The decrease of approximately $2.3 million was primarily a result of operational discipline and lower employee-related costs.
Previous wording
For the three months ended March 31, 2025, the $1.3 million gain from equity investment was the result of a $2.3 million gain recorded from our proportionate share of Elo’s proceeds from a Series A-2 financing in such period, partially offset by our proportionate share of Elo’s loss. As of March 31, 2026, Elo is no longer classified as an equity method investment. There were no changes to the investment value for the three months ended March 31, 2026 and any subsequent changes in the investment’s fair value will be recorded through other fair value adjustments.
Current wording
For the three months ended June 30, 2025, the $0.7 million non-cash gain from equity investment was the result of a $2.3 million gain recorded from our proportionate share of Elo’s proceeds from a Series A-2 financing in such period, partially offset by our proportionate share of Elo’s loss. In the three months ended June 30, 2026, Elo was not classified as an equity method investment. There were no changes to the investment value for the three months ended June 30, 2026 and any subsequent changes in the investment’s fair value will be recorded through other fair value adjustments.
Previous wording
Loss on changes in other fair value adjustments was $3.0 million for the three months ended March 31, 2026, which is attributable to the decrease in fair value on the ordinary shares held for Imugene Limited. Gain on changes in other fair value adjustments was less than $0.1 million for the three months ended March 31, 2025, which was primarily attributable to the increase in fair value on the ordinary shares held for Imugene Limited.
Current wording
The loss on changes in other fair value adjustments of $0.2 million for the three months ended June 30, 2026 is attributable to the non-cash decrease in fair value on the ordinary shares held for Imugene Limited. The loss on changes in other fair value adjustments of $2.5 million for the three months ended June 30, 2025 was primarily attributable to the non-cash decrease in fair value of the iECURE investment.
Previous wording
The non-cash loss from change in fair value of the warrant liability was $7.1 million for the three months ended March 31, 2026 compared to a non-cash loss of $0.8 million for the three months ended March 31, 2025, which represents the mark-to-market fair value adjustment to the outstanding warrants issued in connection with the March 2024 Public Offering and November 2025 Public Offering.
Current wording
The non-cash loss from change in fair value of the warrant liability was $13.9 million for the three months ended June 30, 2026 compared to a non-cash gain of $0.8 million for the three months ended June 30, 2025 which represents the mark-to-market fair value adjustment to the outstanding warrants issued in connection with the March 2024 Public Offering and November 2025 Public Offering.
Previous wording
Interest income was $1.0 million during the three months ended March 31, 2026 compared to $1.3 million during the three months ended March 31, 2025. The decrease of approximately $0.3 million was primarily driven by the Elo note receivable interest accrued for in the prior year as well as declining interest rates which was partially offset by a higher cash balance for the current period.
Current wording
Interest income was $0.9 million during the three months ended June 30, 2026 compared to $1.1 million during the three months ended June 30, 2025. The decrease of approximately $0.2 million was primarily driven by the Elo note receivable interest accrued for in the prior year as well as declining interest rates which was partially offset by a higher cash balance for the current period.
Previous wording
Revenue for the three months ended March 31, 2026 was $10.8 million, compared to less than $0.1 million for the three months ended March 31, 2025. The increase in revenue was the result of revenue recognized under the TG License Agreement and a legacy ARCUS agriculture gene editing agreement during the three months ended March 31, 2026.
Current wording
Revenue for the six months ended June 30, 2026 was $10.8 million compared to less than $0.1 million for the six months ended June 30, 2025. Revenue from the prior period was generated from the Novartis Agreement. The increase in revenue was the result of revenue recognized under the TG License Agreement and a legacy ARCUS agriculture gene editing agreement during the six months ended June 30, 2026.
Previous wording
The decrease in platform development and early-stage research expenses of $2.3 million was primarily the result of paused development of the PBGENE-3243 program as well as a reduction in employee-related costs, partially offset by an increase in licensing fees and other research and development costs. Direct expenses in PBGENE-DMD increased by $1.6 million as we initiated IRB activities and clinical trial site activation for the FUNCTION-DMD Phase 1/2 clinical trial.
Current wording
The decrease in platform development and early-stage research expenses of $3.4 million was primarily the result of paused development of the PBGENE-3243 program as well as a reduction in employee-related costs. Direct expenses in PBGENE-DMD increased by $1.7 million as we initiated Institutional Review Board (“IRB”) activities and clinical trial site activation for the FUNCTION-DMD Phase 1/2 clinical trial, and direct expenses in PBGENE-HBV increased by $0.9 million due to translational assay development expenses and an increase in clinical material manufacturing.
Previous wording
We have incurred significant operating losses since our inception and have not generated any revenue from the sale of products. Our ability to generate any product revenue or product revenue sufficient to achieve profitability will depend on the successful development and eventual commercialization of one or more of our product candidates or the product candidates of our collaborators or other licensees for which we may receive milestone payments or royalties. As of March 31, 2026, we had an accumulated deficit of $546.6 million.
Current wording
We have incurred significant operating losses since our inception and have not generated any revenue from the sale of products. Our ability to generate any product revenue or product revenue sufficient to achieve profitability will depend on the successful development and eventual commercialization of one or more of our product candidates or the product candidates of our collaborators or other licensees for which we may receive milestone payments or royalties. As of June 30, 2026, we had an accumulated deficit of $579.3 million.
Previous wording
As of March 31, 2026, we had cash and cash equivalents of $99.4 million and $26.5 million in restricted cash under the 2024 Term Loan and compensatory arrangements with certain of our officers, respectively. Refer to Note 4, Commitments and Contingencies, in the accompanying notes to the financial statements for more information on these compensatory arrangements. Pursuant to our July 31, 2024 amended and restated loan and security agreement with Banc of California (the “2024 Loan and Security Agreement”), we are not entitled to borrow any additional amounts under the 2024 Term Loan and are required to maintain an aggregate balance in a cash security account with Banc of California (the “Cash Security Account”) at least equal to the outstanding principal amount of the 2024 Term Loan then outstanding.
Current wording
As of June 30, 2026, we had $112.4 million of cash, cash equivalents, and restricted cash under the 2024 Term Loan and compensatory arrangements with certain of our officers, respectively. Refer to Note 4, Commitments and Contingencies, in the accompanying notes to the financial statements for more information on these compensatory arrangements. Pursuant to our July 31, 2024 amended and restated loan and security agreement with Banc of California (the “2024 Loan and Security Agreement”), we are not entitled to borrow any additional amounts under the 2024 Term Loan and are required to maintain an aggregate balance in a cash security account with Banc of California (the “Cash Security Account”) at least equal to the outstanding principal amount of the 2024 Term Loan then outstanding.
Previous wording
Our cash, cash equivalents, and restricted cash totaled $125.8 million and $99.8 million as of March 31, 2026 and March 31, 2025, respectively.
Current wording
Our cash, cash equivalents, and restricted cash totaled $112.4 million and $84.8 million as of June 30, 2026 and June 30, 2025, respectively.
Previous wording
Cash used in operating activities during the three months ended March 31, 2026 was $11.9 million compared to $19.1 million during the three months ended March 31, 2025. The $7.1 million decrease in cash used in operating activities was primarily driven by a $2.1 million decrease in net loss and an increase of $9.6 million in non-cash adjustments, partially offset by $4.6 million in changes in operating assets and liabilities.
Current wording
Cash used in operating activities during the six months ended June 30, 2026 was $25.4 million compared to $39.3 million during the six months ended June 30, 2025. The $13.9 million decrease in cash used in operating activities was driven by lower operating expenditures compared to the prior period as well as an increase of $20.3 million in non-cash adjustments, partially offset by a $7.0 million increase in net loss and $0.7 million in changes in operating assets and liabilities.
Previous wording
The increase in non-cash adjustments was primarily driven by the net change in fair value of warrants during the three months ended March 31, 2026 compared to during the three months ended March 31, 2025. Also contributing to the increase in non-cash adjustments was the change in fair value of the Imugene ordinary shares during the three months ended March 31, 2026.
Current wording
The increase in non-cash adjustments was primarily driven by the net change in fair value of warrants during the six months ended June 30, 2026 compared to during the six months ended June 30, 2025. Also contributing to the increase in non-cash adjustments was the change in fair value of the Imugene ordinary shares during the six months ended June 30, 2026 and the gain on equity method investment of the Elo note in six months ended June 30, 2025.
Previous wording
Cash used in investing activities primarily relates to cash expenditures to acquire leasehold additions, equipment, software and intangible assets. Net cash used in investing activities during the three months ended March 31, 2026 was $0.1 million, compared to $0.3 million used in investing activities in the three months ended March 31, 2025. The decrease in cash used in investing activities was primarily the result of a $0.2 million decrease in intangible asset purchases during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Current wording
Cash used in investing activities primarily relates to cash expenditures to acquire leasehold additions, equipment, software and intangible assets. Net cash used in investing activities during the six months ended June 30, 2026 was $0.1 million, compared to $0.3 million used in investing activities in the six months ended June 30, 2025. The decrease in cash used in investing activities was primarily the result of a $0.2 million decrease in intangible asset purchases during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Previous wording
Net cash provided by financing activities during the three months ended March 31, 2026 was $0.7 million, compared to $10.7 million during the three months ended March 31, 2025. The $9.9 million decrease in cash provided by financing activities during the three months ended March 31, 2026 was primarily due to $9.5 million in net proceeds from the issuance of common stock through the Company's ATM facility during the three months ended March 31, 2025, whereas there were no proceeds from the issuance of common stock through the Company's ATM facility during the three months ended March 31, 2026.
Current wording
Net cash provided by financing activities during the six months ended June 30, 2026 was $0.7 million, compared to $16.0 million during the six months ended June 30, 2025. The $15.3 million decrease in cash provided by financing activities during the six months ended June 30, 2026 was primarily due to $14.8 million in net proceeds from the issuance of common stock through the Company's ATM facility during the six months ended June 30, 2025, whereas there were no proceeds from the issuance of common stock through the Company's ATM facility during the six months ended June 30, 2026.
Previous wording
The stated interest rate under the 2024 Term Loan is equal to the greater of 1.50% below the Prime Rate or 4.5%. As of March 31, 2026, the outstanding principal balance on the 2024 Term Loan was $22.5 million, the stated interest rate was 5.25% and the effective interest rate was 5.62%.
Current wording
The stated interest rate under the 2024 Term Loan is equal to the greater of 1.50% below the Prime Rate or 4.5%. As of June 30, 2026, the outstanding principal balance on the 2024 Term Loan was $22.5 million, the stated interest rate was 5.25% and the effective interest rate was 5.43%.
Previous wording
We will continue to have funding requirements in connection with the continuation of our research and development efforts, potential IND and/or CTA submissions, potential clinical trials, and expected growth in ourin vivo portfolios.
Current wording
We will continue to have funding requirements in connection with the continuation of our research and development efforts, potential investigational new drug (“IND”) and/or clinical trial application (“CTA”) submissions, potential clinical trials, and expected growth in ourin vivo portfolios.
Previous wording
Our critical accounting policies and estimates are described in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Use of Estimates” in our Annual Report on Form 10-K. We have reviewed those critical accounting policies and estimates for the three months ended March 31, 2026. There have been no significant changes in our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Current wording
Our critical accounting policies and estimates are described in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Use of Estimates” in our Annual Report on Form 10-K. We have reviewed those critical accounting policies and estimates for the six months ended June 30, 2026. There have been no significant changes in our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
Loss on Changes in Other Fair Value Adjustments
Current report — wording carried from elsewhere
The following table summarizes our results of operations for the six months ended June 30, 2026 and June 30, 2025, together with the changes in those items:
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, the $0.7 million non-cash gain from equity investment was the result of a $2.3 million gain recorded from our proportionate share of Elo’s proceeds from a Series A-2 financing in such period, partially offset by our proportionate share of Elo’s loss over the period. In the six months ended June 30, 2026, Elo was not classified as an equity method investment. There were no changes to the investment value for the six months ended June 30, 2026 and any subsequent changes in the investment’s fair value will be recorded through other fair value adjustments.
Current report — wording carried from elsewhere
Loss on Changes in Other Fair Value Adjustments
Current report — wording carried from elsewhere
The non-cash loss on changes in other fair value adjustments was $3.2 million for the six months ended June 30, 2026, which is attributable to the decrease in fair value on the ordinary shares held for Imugene Limited. The non-cash loss on changes in other fair value adjustments was $2.4 million for the six months ended June 30, 2025, which was primarily attributable to the decrease in fair value of the iECURE investment in the prior period.
Current report — wording carried from elsewhere
Loss on Change in Fair Value of Warrant Liability
Current report — wording carried from elsewhere
The non-cash loss from change in fair value of the warrant liability was $21.0 million for the six months ended June 30, 2026 compared to a non-cash loss of $0.1 million for the six months ended June 30, 2025, which represents the mark-to-market fair value adjustment to the outstanding warrants issued in connection with the March 2024 Public Offering and November 2025 Public Offering.
Current report — wording carried from elsewhere
Interest expense was $0.6 million for the six months ended June 30, 2026 compared to $0.7 million for the six months ended June 30, 2025 primarily driven by declining interest rates on the 2024 Term Loan over the comparison period.
Current report — wording carried from elsewhere
Interest income was $1.9 million during the six months ended June 30, 2026 compared to $2.4 million during the six months ended June 30, 2025. The decrease of approximately $0.5 million was primarily driven by the Elo note receivable interest accrued for in the prior year as well as declining interest rates which was partially offset by a higher cash balance for the current period.
Current report — wording carried from elsewhere
Gain on disposal of assets was less than $0.1 million during the six months ended June 30, 2026 compared to the loss on disposal of assets of less than $0.1 million during the six months ended June 30, 2025.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Gain (loss) on Disposal of Assets
Previous report — wording carried elsewhere
Gain (loss) on Disposal of Assets