Keros Therapeutics, Inc.

Previous wording

Our lead product candidate, rinvatercept (KER-065), is designed to bind to and inhibit TGF-ß ligands, including myostatin (GDF8) and activin A, which are negative regulators of muscle and bone mass and strength. Through inhibition of these TGF-ß ligands, we believe that rinvatercept has the potential to increase skeletal muscle regeneration, increase muscle size and strength, reduce body fat, reduce fibrosis of the skeletal muscle and increase bone strength. We are developing rinvatercept for the treatment of Duchenne muscular dystrophy, or DMD, and for the treatment of amyotrophic lateral sclerosis, or ALS. Glucocorticoids, the standard of care in DMD, can have significant side effects when used long-term, including catabolism of muscle, increased fat and accelerated bone loss. In March 2025, we announced initial topline results from the Phase 1 clinical trial of rinvatercept in healthy adult male volunteers. We expect to initiate a Phase 2 clinical trial of rinvatercept in patients with DMD in the third quarter of 2026, and expect to announce initial data from this trial in the first half of 2027. We also plan to engage regulators on the design of a Phase 2 clinical trial of rinvatercept in patients with ALS in the second half of 2026.

Current wording

Our lead product candidate, rinvatercept (KER-065), is designed to bind to and inhibit TGF-ß ligands, including myostatin (GDF8) and activin A, which are negative regulators of muscle and bone mass and strength. Through inhibition of these TGF-ß ligands, we believe that rinvatercept has the potential to increase skeletal muscle regeneration, increase muscle size and strength, reduce body fat, reduce fibrosis of the skeletal muscle and increase bone strength. We are developing rinvatercept for the treatment of Duchenne muscular dystrophy, or DMD, and for the treatment of amyotrophic lateral sclerosis, or ALS. Glucocorticoids, the standard of care in DMD, can have significant side effects when used long-term, including catabolism of muscle, increased fat and accelerated bone loss. In March 2025, we announced initial topline results from the Phase 1 clinical trial of rinvatercept in healthy adult male volunteers. We have initiated a Phase 2 clinical trial of rinvatercept in patients with DMD, and expect to announce initial data from this trial in the first half of 2027. We also plan to engage regulators on the design of a Phase 2 clinical trial of rinvatercept in patients with ALS in the second half of 2026.

Previous wording

Our most advanced product candidate, elritercept (KER-050), is an engineered ligand trap comprised of a modified ligand-binding domain of the TGF-ß receptor known as activin receptor type IIA, or ActRIIA, that is fused to the portion of the human antibody known as the Fc domain. Elritercept is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia, in patients with myelodysplastic syndromes, or MDS, and in patients with myelofibrosis. In December 2024, we entered into an exclusive license agreement with Takeda Pharmaceuticals U.S.A., Inc., or Takeda, to further develop, manufacture and commercialize elritercept worldwide outside of mainland China, Hong Kong and Macau, which became effective on January 16, 2025. Elritercept is designed to increase red blood cell and platelet production by inhibiting the signaling of a subset of the TGF-ß family of proteins to promote hematopoiesis. We believe elritercept has the potential to provide benefit to patients suffering from red blood cell and platelet differentiation and maturation defects occurring across the spectrum from early through terminal stages of hematopoiesis, and consequently may be effective for many patients that have limited treatment options or are refractory to available therapies. In July 2025, we announced that the first patient was dosed in the placebo-controlled Phase 3 RENEW clinical trial in patients with very low-, low-, or intermediate-risk MDS, which we refer to as lower-risk MDS. The dosing of the first patient triggered a $10 million milestone payment to us under the license agreement with Takeda.

Current wording

Our most advanced product candidate, elritercept (KER-050), is an engineered ligand trap comprised of a modified ligand-binding domain of the TGF-ß receptor known as activin receptor type IIA, or ActRIIA, that is fused to the portion of the human antibody known as the Fc domain. Elritercept is being developed for the treatment of low blood cell counts, or cytopenias, including anemia and thrombocytopenia, in patients with myelodysplastic syndromes, or MDS, and in patients with myelofibrosis. In December 2024, we entered into an exclusive license agreement with Takeda Pharmaceuticals U.S.A., Inc., or Takeda, to further develop, manufacture and commercialize elritercept worldwide outside of mainland China, Hong Kong and Macau, which became effective on January 16, 2025. Elritercept is designed to increase red blood cell and platelet production by inhibiting the signaling of a subset of the TGF-ß family of proteins to promote hematopoiesis. We believe elritercept has the potential to provide benefit to patients suffering from red blood cell and platelet differentiation and maturation defects occurring across the spectrum from early through terminal stages of hematopoiesis, and consequently may be effective for many patients that have limited treatment options or are refractory to available therapies. In July 2025, we announced that the first patient was dosed in the placebo-controlled Phase 3 RENEW clinical trial in patients with very low-, low-, or intermediate-risk MDS, which we refer to as lower-risk MDS. The dosing of the first patient triggered a $10 million milestone payment to us under the license agreement with Takeda. In July 2026, we announced that the first patient was dosed in the open-label, randomized Phase 3 ELRiSE MDS clinical trial evaluating the efficacy and safety of elritercept versus epoetin alfa for the treatment of anemia due to very low, low, or intermediate risk MDS. The dosing of the first patient triggered a $20 million milestone payment payable to us under the license agreement with Takeda. We expect to distribute 25% of the net cash proceeds from this milestone payment to our stockholders following receipt of the payment.

Previous wording

Since our inception in 2015, we have devoted the majority of our efforts into business planning, research and development of our product candidates, including by conducting clinical trials and preclinical studies, raising capital and recruiting management and technical staff to support these operations. To date, we have not generated any revenue from product sales as none of our product candidates have been approved for commercialization. We have historically financed our operations primarily through the sale of convertible preferred stock, common stock and cash received from licensing agreements.

Current wording

Since our inception in 2015, we have devoted the majority of our efforts to business planning, research and development of our product candidates, including by conducting clinical trials and preclinical studies, raising capital and recruiting management and technical staff to support these operations. To date, we have not generated any revenue from product sales as none of our product candidates have been approved for commercialization. We have historically financed our operations primarily through the sale of convertible preferred stock, common stock and cash received from licensing agreements.

Previous wording

In December 2022, we filed a prospectus supplementto our registration statement on Form S-3ASR with the Securities and Exchange Commission, or the SEC, for the issuance and sale, if any, of up to $250.0 million of shares of our common stock pursuant to a sales agreement with Leerink Partners LLC, or Leerink, as sales agent, which we refer to as the ATM Sales Agreement, under which we may offer and sell, from time to time, shares of our common stock, or the ATM Shares, through Leerink, which we refer to as the ATM Offering. In May 2024, we filed a new registration statement on Form S-3ASR, which we refer to as the New Shelf Registration Statement, to replace the prior shelf registration statement that was set to expire, including a base prospectus, which became effective immediately upon filing, under which we could issue an unspecified amount of shares of our common stock, preferred stock, debt securities and warrants. In June 2024, we filed a prospectus supplement to the New Shelf Registration Statement for the issuance and sale, if any, of up to an additional$350.0 million of shares of our common stock under the ATM Sales Agreement. As of the filing of our Annual Report on Form 10-K for the year ended December 31, 2024, we no longer qualified as a well-known seasoned issuer and therefore were not eligible to use the New Shelf Registration Statement as an automatic shelf registration statement, and no shares were sold during the three months ended March 31, 2026.

Current wording

In December 2022, we filed a prospectus supplementto our registration statement on Form S-3ASR with the Securities and Exchange Commission, or the SEC, for the issuance and sale, if any, of up to $250.0 million of shares of our common stock pursuant to a sales agreement with Leerink Partners LLC, or Leerink, as sales agent, which we refer to as the ATM Sales Agreement, under which we may offer and sell, from time to time, shares of our common stock, or the ATM Shares, through Leerink, which we refer to as the ATM Offering. In May 2024, we filed a new registration statement on Form S-3ASR, which we refer to as the New Shelf Registration Statement, to replace the prior shelf registration statement that was set to expire, including a base prospectus, which became effective immediately upon filing, under which we could issue an unspecified amount of shares of our common stock, preferred stock, debt securities and warrants. In June 2024, we filed a prospectus supplement to the New Shelf Registration Statement for the issuance and sale, if any, of up to an additional$350.0 million of shares of our common stock under the ATM Sales Agreement. As of the filing of our Annual Report on Form 10-K for the year ended December 31, 2024, we no longer qualified as a well-known seasoned issuer and therefore were not eligible to use the New Shelf Registration Statement as an automatic shelf registration statement, and no shares were sold during the six months ended June 30, 2026.

Previous wording

We have incurred recurring operating losses each fiscal year through December 31, 2024. Our net income for the year ended December 31, 2025 was primarily driven by revenue related to the Takeda Agreement. Our ability to generate product revenue sufficient to achieve profitability will depend on the successful development and commercialization of one or more of our product candidates. Our net loss was $23.7 million for thethree months ended March 31, 2026. As of March 31, 2026, we had an accumulated deficit of $505.5 million. We expect to continue to generate operating losses and negative operating cash flows for the foreseeable future in connection with our ongoing activities. As of March 31, 2026, we had cash and cash equivalents of$281.5 million.

Current wording

We have incurred recurring operating losses each fiscal year through December 31, 2024. Our net income for the year ended December 31, 2025 was primarily driven by revenue related to the Takeda Agreement. Our ability to generate product revenue sufficient to achieve profitability will depend on the successful development and commercialization of one or more of our product candidates. Our net loss was $28.7 million and$52.4 millionfor thethree and six months ended June 30, 2026. As of June 30, 2026, we had an accumulated deficit of $534.2 million. We expect to continue to generate operating losses and negative operating cash flows for the foreseeable future in connection with our ongoing activities. As of June 30, 2026, we had cash and cash equivalents of$257.6 million.

Previous wording

Pursuant to the terms of the Hansoh Agreement, we received a net $18.0 million upfront payment in January 2022. In addition to the upfront payment and development milestones achieved to date, we are entitled to receive up to an aggregate of (i) $23.5 million upon the achievement of specified development milestones and (ii) $144.0 million upon the achievement of specified net sales thresholds for all licensed products in the Hansoh Territory. If a licensed product is approved for marketing in the Hansoh Territory, we will be entitled to receive royalty payments based on a tiered percentage of annual net sales in each region within the Hansoh Territory, with such percentage ranging from the low double digit to high teens, subject to specified potential royalty reductions. We did not recognize any revenue related to milestones for the three months ended March 31, 2026 or 2025.

Current wording

Pursuant to the terms of the Hansoh Agreement, we received a net $18.0 million upfront payment in January 2022. In addition to the upfront payment and development milestones achieved to date, we are entitled to receive up to an aggregate of (i) $23.5 million upon the achievement of specified development milestones and (ii) $144.0 million upon the achievement of specified net sales thresholds for all licensed products in the Hansoh Territory. If a licensed product is approved for marketing in the Hansoh Territory, we will be entitled to receive royalty payments based on a tiered percentage of annual net sales in each region within the Hansoh Territory, with such percentage ranging from the low double digit to high teens, subject to specified potential royalty reductions. We did not recognize any revenue related to milestones for the three and six months ended June 30, 2026 or 2025.

Previous wording

Effective in June 2023, in connection with the Hansoh Agreement, we entered into a manufacturing technology transfer agreement, or the Tech Transfer Agreement, with Hansoh. The Tech Transfer Agreement governs the transfer to Hansoh of all documents and information required to complete the manufacturing technology transfer. Under the Tech Transfer Agreement, Hansoh is obligated to make certain payments to us, at the rates set forth in the Tech Transfer Agreement, as manufacturing technology transfer services are provided over the term of the Tech Transfer Agreement. We did not recognize any revenue during the three months ended March 31, 2026 and recognized $0.1 million of service and other revenue for the three months ended March 31, 2025.

Current wording

Effective in June 2023, in connection with the Hansoh Agreement, we entered into a manufacturing technology transfer agreement, or the Tech Transfer Agreement, with Hansoh. The Tech Transfer Agreement governs the transfer to Hansoh of all documents and information required to complete the manufacturing technology transfer. Under the Tech Transfer Agreement, Hansoh is obligated to make certain payments to us, at the rates set forth in the Tech Transfer Agreement, as manufacturing technology transfer services are provided over the term of the Tech Transfer Agreement. We did not recognize any revenue during the three and six months ended June 30, 2026. We recognized zero and $0.1 million of service and other revenue during the three and six months ended June 30, 2025, respectively.

Previous wording

Effective in February 2024, in connection with the Hansoh Agreement, we entered into a clinical product supply agreement with Hansoh, or the Supply Agreement. We recognized $0.3 million of service and other revenue during the three months ended March 31, 2026 compared to zero during the three months ended March 31, 2025.

Current wording

Effective in February 2024, in connection with the Hansoh Agreement, we entered into a clinical product supply agreement with Hansoh, or the Supply Agreement. We recognized zero and $0.3 million of service and other revenue during the three and six months ended June 30, 2026, respectively. We did not recognize any revenue during the three and six months ended June 30, 2025.

Previous wording

Other expense, net primarily consists of unrealized and realized gains and losses on foreign currency.

Current wording

Other expense, net primarily consists of unrealized and realized gains and losses on foreign currency and other taxes and fees.

Previous wording

The tax provision has historically resulted from income tax related to taxable income generated from the Takeda Agreement. We have not recorded any income tax benefits for the losses incurred to date as it is more likely than not that these benefits will not be realized based on our history of losses and expected future losses.

Current wording

The tax (provision) benefit has historically resulted from income tax related to taxable income generated from the Takeda Agreement. We have not recorded any income tax benefits for the losses incurred to date as it is more likely than not that these benefits will not be realized based on our history of losses and expected future losses.

Previous wording

We recognized $0.4 million of service and other revenue andnone for license revenuefor thethree months ended March 31, 2026, compared to $15.9 million of service and other revenue and$195.4 million of license revenuefor thethree months ended March 31, 2025. The decrease in total revenue of $210.9 million was primarily due to recognition of license revenue under the Takeda Agreement during the three months ended March 31, 2025.

Current wording

We did not recognize any revenue for thethree months ended June 30, 2026, compared to $18.2 million of service and other revenue for thethree months ended June 30, 2025. The decrease in total revenue of $18.2 million was primarily due to recognition of service and other revenue under the Takeda Agreement during the three months ended June 30, 2025.

Previous wording

Research and development expenses were $16.1 million for the three months ended March 31, 2026, compared to $48.7 million for the three months ended March 31, 2025. The decrease of $32.6 million was primarily due to (i) a decrease of $18.9 million of elritercept-related expenses, primarily driven by a decrease of $10.0 million in clinical spend and a decrease of $8.9 million in manufacturing activities as activities transitioned to Takeda during 2025; (ii) a decrease of $6.2 million of cibotercept-related expenses, primarily driven by a decrease of $4.1 million in clinical spend associated with our terminated Phase 2 clinical trial and a decrease of $2.2 million in manufacturing and preclinical activities; (iii) a decrease of $7.9 million related to personnel expenses, including a decrease of $3.0 million of stock-based compensation costs, driven by a reduction in headcount; and (iv) a net decrease of $0.9 million in facilities, supplies, professional fees and other expenses. These decreases were partially offset by (a) an increase of $1.1 million of rinvatercept-related expenses, primarily driven by a net increase of $1.5 million in clinical spend associated with our planned Phase 2 clinical trials, one in patients with DMD and one in patients with ALS, partially offset by a net decrease of $0.4 million in manufacturing and preclinical activities; and (b) an increase of $0.3 million in preclinical pipeline and development activities. We expect research and development expenses to fluctuate from quarter to quarter depending on the timing of clinical trial activities, clinical manufacturing and other development activities.

Current wording

Research and development expenses were $22.3 million for the three months ended June 30, 2026, compared to $43.5 million for the three months ended June 30, 2025. The decrease of $21.2 million was primarily due to (i) a decrease of $15.6 million of elritercept-related expenses, primarily driven by a decrease of $11.1 million in clinical spend and a decrease of $4.5 million in manufacturing activities as activities transitioned to Takeda during 2025; (ii) a decrease of $3.8 million of cibotercept- related expenses, primarily driven by a decrease of $2.2 million in clinical spend associated with our terminated Phase 2 clinical trial and a decrease of $1.6 million in manufacturing and preclinical activities; (iii) a decrease of $7.7 million related to personnel expenses, including a decrease of $2.5 million of stock-based compensation costs, driven by a reduction in headcount; and (iv) a net decrease of $0.9 million in facilities, supplies, professional fees and other expenses. These decreases were partially offset by (a) an increase of $2.7 million of rinvatercept-related expenses, primarily driven by an increase of $1.6 million in clinical spend associated with our Phase 2 clinical trial in patients with DMD and our planned Phase 2 clinical trial in patients with ALS and an increase of $1.1 million in manufacturing and preclinical activities; and (b) an increase of $4.1 million in preclinical pipeline and development activities. We expect research and development expenses to fluctuate from quarter to quarter depending on the timing of clinical trial activities, clinical manufacturing and other development activities.

Previous wording

General and administrative expenses were $10.1 million for the three months ended March 31, 2026, compared to $10.5 million for the three months ended March 31, 2025. The decrease of approximately $0.4 million was primarily due to a netdecrease of $0.3 million in personnel expenses, which includes a decrease of $0.6 million insalaries and bonus, benefits and other payroll costs, partially offset by an increase of$0.3 million of stock-based compensation costs.

Current wording

General and administrative expenses were $8.6 million for the three months ended June 30, 2026, compared to $14.5 million for the three months ended June 30, 2025. The decrease of approximately $5.9 million was primarily due to (i) a net decrease of$4.3 million in professional fees, insurance, facilities, supplies and other expenses; and (ii) adecrease of $1.6 million in personnel expenses, which includes a decrease of$0.7 million of stock-based compensation costs.

Previous wording

Total other income, net was $2.2 million for the three months ended March 31, 2026, comparedto $6.5 million for the three months ended March 31, 2025. The decrease of $4.3 million was driven by a decrease of $4.5 million in dividend income, partially offset by a decrease of $0.2 million in other expense, net.

Current wording

Total other income, net was $2.2 million for the three months ended June 30, 2026, comparedto $6.9 million for the three months ended June 30, 2025. The decrease of $4.7 million was driven by a decrease of $4.8 million in dividend income, partially offset by a decrease of $0.2 million in other expense, net.

Previous wording

Income tax provision was zero for thethree months ended March 31, 2026, compared to $10.0 million for thethree months ended March 31, 2025. The income tax provision in 2025 is attributed to taxable income generated from the Takeda Agreement.

Current wording

Income tax provision was zero for the six months ended June 30, 2026, compared to $7.8 million for the six months ended June 30, 2025. The income tax provision in 2025 was attributable to taxable income generated from the Takeda Agreement.

Previous wording

Since our inception, we have incurred significant operating losses each fiscal year through December 31, 2024. Our net loss was $23.7 million for the three months ended March 31, 2026 compared to net income of $148.5 million for the three months ended March 31, 2025, which was primarily driven by the one-time upfront fee related to the Takeda Agreement. As of March 31, 2026 and December 31, 2025, we had an accumulated deficit of $505.5 million and $481.8 million, respectively. To date, we have devoted the majority of our efforts into business planning, research and development of our product candidates, including by conducting clinical trials and preclinical studies, raising capital and recruiting management and technical staff to support these operations. Our primary uses of cash are to fund operating expenses, which are primarily research and development expenditures. We expect to continue to incur substantial expenses in connection with our ongoing activities, particularly as we advance the preclinical studies and clinical trials of our product candidates. Furthermore, we expect to incur costs associated with operating as a public company, including significant legal, accounting, investor relations, director and officer insurance premiums and other expenses. In addition, if we obtain marketing approval for any of our product candidates, we expect to incur significant commercialization expenses related to establishing sales, marketing, distribution and other commercial infrastructure to commercialize such products.

Current wording

June 30, 2025, which was primarily driven by the one-time upfront fee related to the Takeda Agreement. As of June 30, 2026 and December 31, 2025, we had an accumulated deficit of $534.2 million and $481.8 million, respectively. To date, we have devoted the majority of our efforts to business planning, research and development of our product candidates, including by conducting clinical trials and preclinical studies, raising capital and recruiting management and technical staff to support these operations. Our primary uses of cash are to fund operating expenses, which are primarily research and development expenditures. We expect to continue to incur substantial expenses in connection with our ongoing activities, particularly as we advance the preclinical studies and clinical trials of our product candidates. Furthermore, we expect to incur costs associated with operating as a public company, including significant legal, accounting, investor relations, director and officer insurance premiums and other expenses. In addition, if we obtain marketing approval for any of our product candidates, we expect to incur significant commercialization expenses related to establishing sales, marketing, distribution and other commercial infrastructure to commercialize such products.

Previous wording

As of March 31, 2026, we had cash and cash equivalents of $281.5 million. Based on our current operating assumptions, we believe that our existing cash and cash equivalents will be sufficient to fund our projected liquidity requirements into the first half of 2028. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we currently expect. Due to the numerous risks and uncertainties associated with the development of our product candidates and programs, and because the extent to which we may enter into collaborations with third parties for development of our product candidates is unknown, we are unable to estimate the timing and amounts of increased capital outlays and operating expenses associated with completing the research and development of our product candidates. Our future funding requirements, both near and long-term, will depend on many factors, including:

Current wording

As of June 30, 2026, we had cash and cash equivalents of $257.6 million. Based on our current operating assumptions, we believe that our existing cash and cash equivalents will be sufficient to fund our projected liquidity requirements into the first half of 2028. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we currently expect. Due to the numerous risks and uncertainties associated with the development of our product candidates and programs, and because the extent to which we may enter into collaborations with third parties for development of our product candidates is unknown, we are unable to estimate the timing and amounts of increased capital outlays and operating expenses associated with completing the research and development of our product candidates. Our future funding requirements, both near and long-term, will depend on many factors, including:

Previous wording

The following table summarizes our cash flows for the three months ended March 31, 2026 and 2025 (in thousands):

Current wording

The following table summarizes our cash flows for the six months ended June 30, 2026 and 2025 (in thousands):

Previous wording

Net cash used in operating activities was $3.5 million for the three months ended March 31, 2026, which was driven by a net loss of $23.7 million and partially offset by (i) $12.9 million in net cash provided by operating assets and liabilities; and (ii) non-cash charges including $6.2 million of stock-based compensation expense, $0.6 million in lease expenses and $0.4 million in depreciation. The $12.9 million of net cash provided by operating assets and liabilities was comprised of (i) a $15.7 million decrease in prepaid expenses and other current assets due to timing of expense recognition for our research and development costs; and (ii) a $3.2 million decrease in accounts receivable related to the Takeda Agreement, which was partially offset by (a) a $5.3 million decrease in accounts payable and accrued expenses; and (b) a $0.6 million change in operating lease liabilities.

Current wording

Net cash used in operating activities was $24.0 million for the six months ended June 30, 2026, which was driven by a net loss of $52.4 million and partially offset by (i) $14.8 million in net cash provided by operating assets and liabilities; and (ii) non-cash charges including $11.6 million of stock-based compensation expense, $1.3 million in lease expenses and $0.8 million in depreciation. The $14.8 million of net cash provided by operating assets and liabilities was comprised of (i) a $15.2 million decrease in prepaid expenses and other current assets due to timing of expense recognition for our research and development costs; and (ii) a $3.6 million decrease in accounts receivable related to the Takeda Agreement, which was partially offset by (a) a $2.8 million decrease in accounts payable and accrued expenses; and (b) a $1.2 million change in operating lease liabilities.

Previous wording

Net cash provided by operating activities was $161.2 million for the three months ended March 31, 2025, which was driven by a (i) net income of $148.5 million; (ii) $2.9 million in net cash provided by operating assets and liabilities; and (iii) non-cash charges including $8.9 million of stock-based compensation expense, $0.6 million in lease expenses and $0.3 million in depreciation. The $2.9 million of net cash provided by operating assets and liabilities was comprised of (i) a $4.5 million decrease in prepaid expenses and other current assets due to timing of expense recognition for our research and development costs; (ii) a $3.3 million increase in deferred revenue; (iii) a $10.0 million increase in current tax liability; and (iv) a $1.6 million decrease in other long-term assets, which was partially offset by (a) a $14.5 million increase in accounts receivable related to the Takeda Agreement; (b) a $1.6 million decrease in accounts payable and accrued expenses to support the advancement of our programs; and (c) a $0.4 million change in operating lease liabilities.

Current wording

Net cash provided by operating activities was $131.5 million for the six months ended June 30, 2025, which was driven by a (i) net income of $117.8 million and (ii) non-cash charges including $17.4 million of stock-based compensation expense, $1.2 million in lease expenses and $0.7 million in depreciation; partially offset by $5.5 million in net cash used in operating assets and liabilities. The $5.5 million of net cash used in operating assets and liabilities was comprised of (i) a $13.1 million increase in accounts receivable related to the Takeda Agreement; (ii) a $0.6 million increase in prepaid expenses and other current assets due to timing of expense recognition for our research and development costs; (iii) a $0.3 million decrease in accounts payable and accrued expenses to support the advancement of our programs; and (iv) a $0.9 million change in operating lease liabilities, which was partially offset by; (a) a $0.9 million increase in deferred revenue; (b) a $6.3 million increase in current tax liability; and (c) a $2.1 million decrease in other long-term assets.

Previous wording

Net cash used in investing activities was nominal for the three months ended March 31, 2026 and $0.6 million for the three months ended March 31, 2025. The cash used in investing activities in both periods was due to purchases of property and equipment.

Current wording

Net cash used in investing activities was $0.2 million for the six months ended June 30, 2026 and $1.3 million for the six months ended June 30, 2025. The cash used in investing activities in both periods was due to purchases of property and equipment.

Previous wording

Net cash used in financing activities was $2.3 million for the three months ended March 31, 2026, which was primarily related to $2.3 million in cash paid for direct expenses associated with the Repurchase Agreements and the Tender Offer.

Current wording

Net cash used in financing activities was $5.6 million for the six months ended June 30, 2026, which was primarily related to $5.7 million in cash paid for direct expenses associated with the Repurchase Agreements and the Tender Offer, partially offset by exercises of options to purchase common stock.

Previous wording

Net cash provided by financing activities was nominal for the three months ended March 31, 2025 and was related to exercises of options to purchase common stock.

Current wording

Net cash provided by financing activities was nominal for the six months ended June 30, 2025 and was related to exercises of options to purchase common stock.

Previous wording

We enter into agreements in the normal course of business with contract manufacturing organizations for process development, raw material purchases and manufacturing services. These contracts typically do not contain minimum purchase commitments and are generally cancellable by us upon written notice. Payments due upon cancellation consist of payments for services provided or expenses incurred, including noncancellable obligations of our service providers, up to the date of cancellation and, in the case of certain arrangements with contract manufacturing organizations, may include noncancellable fees. Under such agreements, the exact amounts owed by us in the event of termination will be based on the timing of the termination and the exact terms of the agreement. As of March 31, 2026, we have committed up to approximately $6.5 million under these agreements which are expected to be paid through 2029.

Current wording

We enter into agreements in the normal course of business with contract manufacturing organizations for process development, raw material purchases and manufacturing services. These contracts typically do not contain minimum purchase commitments and are generally cancellable by us upon written notice. Payments due upon cancellation consist of payments for services provided or expenses incurred, including noncancellable obligations of our service providers, up to the date of cancellation and, in the case of certain arrangements with contract manufacturing organizations, may include noncancellable fees. Under such agreements, the exact amounts owed by us in the event of termination will be based on the timing of the termination and the exact terms of the agreement. As of June 30, 2026, we have committed up to approximately $7.0 million under these agreements which are expected to be paid through 2028.

Previous wording

Refer to Note 2 in the accompanying notes to our unaudited interim condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q for a discussion of recent accounting pronouncements. In the three months ended March 31, 2026, there were no newly applicable recently issued accounting pronouncements.

Current wording

Refer to Note 2 in the accompanying notes to our unaudited interim condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q for a discussion of recent accounting pronouncements. In the six months ended June 30, 2026, there were no newly applicable recently issued accounting pronouncements.