Xenetic Biosciences, Inc.

Previous wording

“anticipate,” “believe,” “estimate,” “seek,” “approximately,” “intend,” “predict,” “potential,” “projects,” “upcoming”, “opportunity”, “target” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements contained herein are reasonable, we cannot guarantee future results, the levels of activity, performance or achievements. These statements involve known and unknown risks and uncertainties that may cause our or our industry's results, levels of activity, performance or achievements to be materially different from those expressed or implied by forward-looking statements.

Current wording

In some cases, these statements may be identified by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “seek,” “approximately,” “intend,” “predict,” “potential,” “projects,” “upcoming”, “opportunity”, “target” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements contained herein are reasonable, we cannot guarantee future results, the levels of activity, performance or achievements. These statements involve known and unknown risks and uncertainties that may cause our or our industry's results, levels of activity, performance or achievements to be materially different from those expressed or implied by forward-looking statements.

Previous wording

We are a biopharmaceutical company focused on advancing innovative immuno-oncology technologies addressing difficult to treat cancers. Our proprietary DNase technology is designed to improve outcomes of existing treatments, including immunotherapies, by targeting NETs, which are involved in cancer progression. We are currently focused on advancing our systemic DNase program into the clinic as an adjunctive therapy for pancreatic carcinoma and locally advanced or metastatic solid tumors.

Current wording

We are a biopharmaceutical company focused on advancing innovative immune-oncology technologies addressing difficult to treat cancers. Our proprietary DNase technology is designed to improve outcomes of existing treatments, including immunotherapies, by targeting NETs, which are involved in cancer progression. We are currently focused on advancing our systemic DNase program into the clinic as an adjunctive therapy for pancreatic carcinoma and locally advanced or metastatic solid tumors.

Previous wording

We incorporate our patented and proprietary technologies into drug candidates currently under development with biotechnology and pharmaceutical industry collaborators to create what we believe will be the next-generation biologic drugs with improved pharmacological properties over existing therapeutics. Our drug candidates have resulted from our research activities or that of our collaborators and are in the development stage. As a result, we continue to commit a significant amount of our resources to our research and development activities and anticipate continuing to do so for the near future. To date, none of our drug candidates have received regulatory marketing authorization or approval in the U.S. by the Food and Drug Administration nor in any other countries or territories by any applicable agencies. We are receiving ongoing royalties pursuant to a license of our legacy PolyXen technology to an industry partner. Although we hold a broad patent portfolio, the focus of our internal efforts during the three months ended March 31, 2026, was on the advancement of our DNase technology.

Current wording

We incorporate our patented and proprietary technologies into drug candidates currently under development with biotechnology and pharmaceutical industry collaborators to create what we believe will be the next-generation biologic drugs with improved pharmacological properties over existing therapeutics. Our drug candidates have resulted from our research activities or that of our collaborators and are in the development stage. As a result, we continue to commit a significant amount of our resources to our research and development activities and anticipate continuing to do so for the near future. To date, none of our drug candidates have received regulatory marketing authorization or approval in the U.S. by the Food and Drug Administration nor in any other countries or territories by any applicable agencies. We are receiving ongoing royalties pursuant to a license of our legacy PolyXen technology to an industry partner. Although we hold a broad patent portfolio, the focus of our internal efforts during the six months ended June 30, 2026, was on the advancement of our DNase technology.

Previous wording

Revenue for the three months ended March 31, 2026 increased by approximately $0.2 million, or 36.0%, to approximately $0.8 million from approximately $0.6 million for the three months ended March 31, 2025. This increase represented an increase in royalty revenue related to our sublicense agreement with Takeda Pharmaceuticals Co. Ltd. as compared to the same period in 2025 primarily due to royalties recognized from certain countries during the first quarter of 2026 compared to the same period in 2025.

Current wording

Revenue for the three months ended June 30, 2026 increased by approximately $0.1 million, or 12.0%, to approximately $0.7 million from approximately $0.6 million for the three months ended June 30, 2025. This increase represented an increase in royalty revenue related to our sublicense agreement with Takeda Pharmaceuticals Co. Ltd. as compared to the same period in 2025 primarily due to royalties recognized from certain countries during the second quarter of 2026 compared to the same period in 2025.

Previous wording

Research & development (“R&D”) expenses for the three months ended March 31, 2026 decreased by approximately $0.2 million, or 24.8%, to approximately $0.7 million from approximately $0.9 million in the comparable quarter in 2025. The table below sets forth the R&D costs incurred by the Company by category of expense for the quarters ended March 31, 2026 and 2025:

Current wording

Research & development (“R&D”) expenses for the three months ended June 30, 2026 decreased by approximately $0.1 million, or 15.9%, to approximately $0.6 million from $0.7 million in the comparable quarter in 2025. The table below sets forth the R&D costs incurred by the Company by category of expense for the quarters ended June 30, 2026 and 2025:

Previous wording

The decrease in outside services and contract research organizations expense was primarily due to a decrease in pre-clinical and exploratory study costs both partially offset by an increase in manufacturing development efforts during the three months ended March 31, 2026 compared to the same period in 2025.

Current wording

The decrease in outside services and contract research organizations expense was primarily due to a decrease in manufacturing development efforts and, to a lesser extent, a decrease in consulting costs during the three months ended June 30, 2026 compared to the same period in 2025.

Previous wording

General and administrative expenses for the three months ended March 31, 2026 decreased by approximately $9,000, or 1.4%, to approximately $648,000 from approximately $657,000 in the comparable quarter in 2025. The decrease was primarily due to a decrease in personnel costs and share-based expense related to our interim Chief Executive Officer substantially offset by an increase in legal expense related to our strategic review process during the first quarter of 2026 compared to the same period in 2025.

Current wording

General and administrative expenses for the three months ended June 30, 2026 increased by approximately $0.4 million, or 64.2%, to approximately $1.1 million from approximately $0.7 million in the comparable quarter in 2025. The increase was primarily due to an increase in legal expense related to our strategic review process during the second quarter of 2026 compared to the same period in 2025.

Previous wording

Other expense was approximately $21 for the three months ended March 31, 2026 compared to approximately $78 of other income for the comparable quarter in 2025. This increase in other expense was primarily related to unfavorable changes in foreign currency exchange rates during the three months ended March 31, 2026 as compared to the same period in 2025.

Current wording

Other expense was $72 for the three months ended June 30, 2026 compared to $1,477 of other income for the comparable quarter in 2025. This increase in other expense was primarily related to unfavorable changes in foreign currency exchange rates during the three months ended June 30, 2026 as compared to the same period in 2025.

Previous wording

Interest income, net increased to approximately $46,000 during the three months ended March 31, 2026 as compared to approximately $39,000 for the same period in the prior year. This increase is primarily due to higher average invested funds during the three months ended March 31, 2026 as compared to the same period in 2025.

Current wording

Interest income, net increased to approximately $42,000 during the three months ended June 30, 2026 as compared to approximately $34,000 for the same period in the prior year. The increase is primarily due to higher average invested funds during the three months ended June 30, 2026 as compared to the same period in 2025.

Previous wording

We incurred a net loss of approximately $456,000 for the three months ended March 31, 2026. We had an accumulated deficit of approximately $200.3 million at March 31, 2026, as compared to an accumulated deficit of approximately $199.9 million at December 31, 2025. Working capital was approximately $6.6 million at March 31, 2026, and approximately $7.1 million at December 31, 2025, respectively. During the three months ended March 31, 2026, our working capital decreased by approximately $445,000 primarily due to our net loss for the three months ended March 31, 2026.

Current wording

We incurred a net loss of approximately $1.4 million for the six months ended June 30, 2026. We had an accumulated deficit of approximately $201.3 million at June 30, 2026, as compared to an accumulated deficit of approximately $199.9 million at December 31, 2025. Working capital was approximately $5.8 million at June 30, 2026, and approximately $7.1 million at December 31, 2025. During the six months ended June 30, 2026, our working capital decreased by approximately $1.3 million primarily due to our net loss for the six months ended June 30, 2026.

Previous wording

Our principal source of liquidity consists of cash. At March 31, 2026, we had approximately $7.3 million in cash and $1.0 million in current liabilities. At December 31, 2025, we had approximately $7.9 million in cash and $1.0 million in current liabilities. We have historically relied upon sales of our equity securities to fund our operations.

Current wording

Our principal source of liquidity consists of cash. At June 30, 2026, we had approximately $6.5 million in cash and approximately $0.9 million in current liabilities. At December 31, 2025, we had approximately $7.9 million in cash and $1.0 million in current liabilities. We have historically relied upon sales of our equity securities to fund our operations.

Previous wording

Cash flows used in operating activities for the three months ended March 31, 2026 totaled approximately $0.5 million, which was primarily due to our net loss for the period and, to a lesser extent, a decrease in accounts payable, accrued expenses and other liabilities. Cash flows used in operating activities for the three months ended March 31, 2025 totaled approximately $1.0 million, which was primarily due to our net loss for the period and, to a lesser extent, a decrease in accounts payable, accrued expenses and other liabilities due to payments made in accordance with severance arrangements.

Current wording

Cash flows used in operating activities for the six months ended June 30, 2026 totaled approximately $1.4 million, which was primarily due to our net loss for the period, partially offset by non-cash charges associated with share-based expense. Cash flows used in operating activities for the six months ended June 30, 2025 totaled approximately $1.4 million, which was primarily due to our net loss for the period, partially offset by non-cash charges associated with share-based expense during the period. The decrease in other assets was due to the reclassification of long-term assets to prepaid expenses and other current assets as of June 30, 2025.

Previous wording

There were no cash flows from investing activities for the three months ended March 31, 2026 and 2025.

Current wording

There were no cash flows from investing activities for the six months ended June 30, 2026 and 2025.

Previous wording

There were no cash flows from financing activities for the three months ended March 31, 2026 and 2025.

Current wording

There were no cash flows from financing activities for the six months ended June 30, 2026 and 2025.