The following management's discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto and management's discussion and analysis of financial condition and results of operations for the year ended December 31, 2025 included in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 11, 2026 (the “Annual Report”). This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements include, but are not limited to, expectations regarding our strategy, business plans, financial performance and developments relating to our industry. These statements are often identified by the use of words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “should,” “estimate,” or “continue,” and similar expressions or variations. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Part II, Item 1A: “Risk Factors” of this Quarterly Report on Form 10-Q and Part I, Item 1A: “Risk Factors” of our Annual Report, and elsewhere in this report. The forward-looking statements in this Quarterly Report on Form 10-Q represent our views as of the date of this Quarterly Report on Form 10-Q. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q. Business Overview We are a leading provider of technology solutions to improve therapeutics manufacturing. We focus on impacting the manufacturing process by using our proprietary CodeEvolver directed evolution technology platform to discover, develop, enhance, and commercialize novel, high-performance enzymes and other classes of proteins. Enzymes are naturally occurring biological molecules critical to almost all biochemical reactions. They can be precisely engineered and optimized for specific functions, and to have particular characteristics, such as an ability to survive environments in which natural enzymes cannot, or to perform (bio)chemical transformations that are different than those for which they naturally evolved. We employ our technology and expertise to enhance the properties and performance of enzymes to drive pivotal improvements in manufacturing of complex therapeutics across two key areas: ECO Synthesis manufacturing platform Our ECO Synthesis® manufacturing platform is comprised of enzymatic tools and processes that are designed to enable large-scale manufacture of RNA interference (“RNAi”) therapeutics. We use the CodeEvolver platform technology to develop enzymes for the synthesis of RNAi therapeutics in production processes that deliver improvements, including purity, yield, and manufacturing efficiency. In November 2024, we presented data at the TIDES Europe conference demonstrating the successful end-to-end enzymatic synthesis of an entire commercially approved small interfering ribonucleic acid (“siRNA”) therapeutic asset with the ECO Synthesis manufacturing platform. In addition to using full enzymatic sequential synthesis, adding one nucleotide at a time to synthesize the two strands from beginning to end, we demonstrated synthesis of the same siRNA asset using three other routes utilizing enzymatic ligation with our double-stranded RNA (“dsRNA”) ligase, which can stitch together fragments of chemically and/or enzymatically synthesized RNA to form the full siRNA drug structure. For the three other routes, our data highlighted that full-length oligonucleotides of equal quality and yields were obtained whether the fragments were made with enzymes or by traditional solid phase oligonucleotide synthesis (“SPOS”) (current standard production route for oligonucleotide manufacturing). 21 At the end of 2024, we completed the build out of our ECO Synthesis Innovation Lab, a facility where our ECO Synthesis manufacturing platform is deployed to synthesize gram-scale quantities of a customer’s desired siRNA construct suitable for pre-clinical testing. In addition, the infrastructure allows us to provide process development, analytical method development and other manufacturing process optimization which is required to enable the siRNA to proceed to clinical-stage manufacturing and testing. In 2025, we successfully manufactured non-good manufacturing practice (“GMP”)-grade siRNA drug substance for customers in our Innovation Lab under development services contracts. We also entered into partnerships with three large-scale contract development and manufacturing organizations (“CDMOs”) to evaluate our ECO platform of enzymatic tools and processes to ultimately synthesize GMP-grade siRNA drug substance for our customers. Under each of these agreements, we have conducted technology transfer to several partners in 2026 for further evaluation of the technology. We believe these relationships to be a vital extension of our strategy to be a technology solutions provider for our customers. Through these arrangements, our customers will have access to proven, large-scale commercial manufacturers who are familiar with our process, who can then offer a seamless manufacturing scale-up of our customers’products. We expect to expand our enzymatic tools and process offerings as we further enhance the ECO Synthesis platform to address the overall market needs for scalable and sustainable RNAi manufacturing. In November 2025, we signed a lease for a 34,000-square-foot GMP manufacturing facility in Hayward, California, which we refer to as our ECO GMP Manufacturing Center. The multi-purpose facility is designed to expand our internal capabilities into GMP manufacturing of siRNA and other oligonucleotides using our ECO Synthesis manufacturing platform, and its flexible design is also intended to support production of purified enzymes used in the ECO Synthesis process. We applied for a building permit during the second quarter of 2026 and expect to commence retrofit construction during the second half of 2026. We expect the facility to support customers’ early clinical trial supply requirements. Our CDMO partnerships and the ECO GMP Manufacturing Center are complementary elements of our strategy: the ECO GMP Manufacturing Center is intended to serve early clinical-stage supply, while our CDMO partners are intended to provide large-scale commercial manufacturing capacity. Small molecule pharma biocatalysis In our small molecule pharma biocatalysis business, we utilize our CodeEvolver technology platform to develop optimized enzymes that are used by some of the world’s largest pharmaceutical companies to improve the efficiency and productivity of their manufacturing processes for small molecule therapeutics. Our unique enzymes drive improvements such as higher yields, increased purity, reduced energy usage and waste generation, all of which lead to improved efficiency and reduced costs in small-molecule manufacturing. 22 Results of Operations The following table shows the amounts from our unaudited condensed consolidated statements of operations for the periods presented (in thousands, except percentages): Three Months Ended June 30, Change Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Revenues: Product revenue $ 13,218 $ 7,380 $ 5,838 79 % $ 20,409 $ 13,439 $ 6,970 52 % Research and development revenue 1,697 7,948 (6,251) (79) % 9,754 9,432 322 3 % Total revenues 14,915 15,328 (413) (3) % 30,163 22,871 7,292 32 % Costs and operating expenses: Cost of product revenue 3,512 2,098 1,414 67 % 5,576 4,830 746 15 % Research and development 11,705 13,775 (2,070) (15) % 23,153 26,717 (3,564) (13) % Selling, general and administrative 10,927 12,317 (1,390) (11) % 20,706 24,672 (3,966) (16) % Total costs and operating expenses 26,144 28,190 (2,046) (7) % 49,435 56,219 (6,784) (12) % Loss from operations (11,229) (12,862) 1,633 (13) % (19,272) (33,348) 14,076 (42) % Interest income 535 584 (49) (8) % 1,200 1,335 (135) (10) % Interest and other expense, net (1,301) (984) (317) 32 % (2,591) (1,926) (665) 35 % Loss before income taxes (11,995) (13,262) 1,267 (10) % (20,663) (33,939) 13,276 (39) % Provision for income taxes 10 10 — — % 46 21 25 119 % Net loss $ (12,005) $ (13,272) $ 1,267 (10) % $ (20,709) $ (33,960) $ 13,251 (39) % Revenues Our revenues consisted of product revenue and research and development revenue as follows: •Product revenue consists of sales of biocatalysts used in the manufacture of small molecule active pharmaceutical intermediates, enzymes such as dsRNA ligase used in the manufacture of siRNA molecules, enzymes for the molecular biology and diagnostic markets, and Codex™ biocatalyst panels and kits. •Research and development revenue includes license, technology access and exclusivity fees, research services fees, milestone payments, royalties, optimization and screening fees. Revenues are as follows (in thousands, except percentages): Three Months Ended June 30, Change Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Product revenue $ 13,218 $ 7,380 $ 5,838 79 % $ 20,409 $ 13,439 $ 6,970 52 % Research and development revenue 1,697 7,948 (6,251) (79) % 9,754 9,432 322 3 % Total revenues $ 14,915 $ 15,328 $ (413) (3) % $ 30,163 $ 22,871 $ 7,292 32 % Revenues typically fluctuate on a quarterly basis due to the variability in our customers' manufacturing schedules and the timing of our customers’ clinical trials. In addition, we have limited internal capacity to manufacture enzymes. As a result, we are dependent upon the performance and capacity of third-party manufacturers for the commercial scale manufacturing of the enzymes used in our pharma biocatalysis, ECO and molecular biology and diagnostics enzymes businesses. We accept purchase orders for deliveries covering periods from one day up to 14 months from the date on which the order is placed. However, some of our purchase orders can be revised or cancelled by the customer without penalty. Considering these industry practices and our experience, we do not believe the total of customer purchase orders outstanding (backlog) provides meaningful information that can be relied on to predict actual sales for future periods. 23 Total revenues decreased by $0.4 million to $14.9 million in the three months ended June 30, 2026 compared to the same period in 2025, primarily due to lower research and development revenue partially offset by higher product revenue in the current period. Total revenues increased by $7.3 million to $30.2 million in the six months ended June 30, 2026 compared to the same period in 2025, primarily due to higher product revenue. Product revenue increased by $5.8 million to $13.2 million in the three months ended June 30, 2026 compared to the same period in 2025, primarily due to $1.7 million higher sales of enzymes used in commercial pharmaceutical manufacturing and $4.1 million higher sales of enzymes for use in clinical-stage manufacturing and process development activities. Product revenue increased by $7.0 million to $20.4 million in the six months ended June 30, 2026 compared to the same period in 2025, primarily due to $1.8 million higher sales of enzymes used in commercial pharmaceutical manufacturing and $5.2 million higher sales of enzymes for use in clinical-stage manufacturing and process development activities. Our product revenue fluctuates from period to period due to variability in our customers’ manufacturing schedules and the timing of their clinical trial progression and receipt of their product approvals, which affects order volumes for our enzyme products. Research and development revenue decreased by $6.3 million to $1.7 million in the three months ended June 30, 2026 compared to the same period in 2025, primarily due to the recognition of $4.7 million of milestone revenue from legacy collaboration agreements and $2.5 million of revenue from a licensing agreement in the second quarter of 2025 that did not reoccur in the current period. The decrease was partially offset by $0.9 million in higher revenue from existing and legacy agreements in the current period. Research and development revenue increased by $0.3 million to $9.8 million in the six months ended June 30, 2026 compared to the same period in 2025, primarily due to the recognition of $6.3 million of license revenue previously recorded as deferred revenue as of December 31, 2025, $0.7 million of revenue recognized related to ECO Synthesis evaluation services, and $1.0 million of higher revenue from existing and legacy agreements. The increase was partially offset by the non-recurrence of $4.7 million of milestone revenue and $3.0 million of licensing revenue recognized in 2025. Costs and Operating Expenses The following table shows the amounts of our cost of product revenue, research and development expense, selling, general and administrative expense from our unaudited condensed consolidated statements of operations for the periods presented (in thousands, except percentages): Three Months Ended June 30, Change Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Cost of product revenue $ 3,512 $ 2,098 $ 1,414 67 % $ 5,576 $ 4,830 $ 746 15 % Research and development 11,705 13,775 (2,070) (15) % 23,153 26,717 (3,564) (13) % Selling, general and administrative 10,927 12,317 (1,390) (11) % 20,706 24,672 (3,966) (16) % Total costs and operating expenses $ 26,144 $ 28,190 $(2,046) (7) % $ 49,435 $ 56,219 $ (6,784) (12) % Cost of Product Revenue and Product Gross Margin The following table shows the amounts of our product revenue, cost of product revenue, product gross profit and product gross margin from our unaudited condensed consolidated statements of operations for the periods presented (in thousands, except percentages): Three Months Ended June 30, Change Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Product revenue $ 13,218 $ 7,380 $ 5,838 79 % $ 20,409 $ 13,439 $ 6,970 52 % Cost of product revenue(1) 3,512 2,098 1,414 67 % 5,576 4,830 746 15 % Product gross profit $ 9,706 $ 5,282 $ 4,424 84 % $ 14,833 $ 8,609 $ 6,224 72 % Product gross margin (%)(2) 73 % 72 % 73 % 64 % (1) Cost of product revenue consists of both internal and third-party fixed and variable costs, including materials and supplies, labor, facilities and other overhead costs associated with our product revenue. (2) Product gross margin is used as a performance measure to provide additional information regarding our results of operations on a consolidated basis. 24 Cost of product revenue increased by $1.4 million and $0.7 million in the three and six months ended June 30, 2026, respectively, compared to the same period in 2025. Product gross margin was 73% and 73% in the three and six months ended June 30, 2026, respectively, compared to 72% and 64% in the corresponding period in 2025. The changes in cost of product revenue and product gross margins are primarily due to a shift in sales toward more profitable products, and declines in less profitable legacy products. Research and Development Expenses Research and development expenses consist of costs incurred for internal projects as well as collaborative research and development activities. These costs primarily consist of (i) employee-related costs, which include salaries and other personnel-related expenses (including stock-based compensation), (ii) various allocable expenses, which include occupancy-related costs, supplies, depreciation of facilities and laboratory equipment, and (iii) external costs. Research and development expenses are expensed when incurred. Research and development expenses decreased by $2.1 million in the three months ended June 30, 2026 compared to the same period in 2025 primarily due to $1.6 million decrease in employee-related costs due to lower headcount, $0.3 million decrease from lower use of outside services, $0.3 million in lower lab supplies, $0.1 million decrease in depreciation expense, and $0.1 million decrease in stock-based compensation expense, partially offset by $0.2 million in higher allocable costs. The decrease in research and development expenses of $3.6 million in the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to $3.0 million decrease in employee-related costs, $0.3 million in lower consulting and outside services, $0.3 million decrease in stock-based compensation expense, and $0.2 million in lower lab supplies, partially offset by $0.2 million in higher allocable costs. Selling, General and Administrative Expenses Selling, general and administrative expenses consist of employee-related costs, which include salaries and other personnel-related expenses (including stock-based compensation), hiring and training costs, consulting and outside services expenses (including audit and legal counsel-related costs), marketing costs, various allocable expenses, which include occupancy-related costs, depreciation expenses and amortization expenses. Selling, general and administrative expenses decreased by $1.4 million during the three months ended June 30, 2026, compared to the same period in 2025 primarily due to $0.8 million in lower stock-based compensation expenses, $0.6 million decrease in employee-related costs due to lower headcount, $0.2 million decrease in allocable costs and $0.1 million in lower consulting and outside services, partially offset by $0.2 million increase in facilities associated costs. The decrease in selling, general and administrative expenses of $4.0 million during the six months ended June 30, 2026 as compared to the same period in 2025, was primarily due to $2.0 million in lower employee-related costs, $1.6 million decrease in stock-based compensation expense, $0.5 million in lower legal costs, $0.2 million decrease in consulting and outside services and $0.2 million in lower allocable costs, partially offset by a $0.4 million increase in facilities associated costs. Interest Income and Interest and Other Expense, net (in thousands, except percentages): Three Months Ended June 30, Change Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Interest income $ 535 $ 584 $ (49) (8) % $ 1,200 $ 1,335 $ (135) (10) % Interest and other expense, net (1,301) (984) (317) 32 % (2,591) (1,926) (665) 35 % Total other income (expense), net $ (766) $ (400) $ (366) 92 % $ (1,391) $ (591) $ (800) 135 % Interest Income Interest income remained relatively consistent during the three and six months ended June 30, 2026, compared to the same period in 2025, reflecting comparable average balances of cash, cash equivalents and short-term investments. Interest and Other Expense, net Interest and other expense, net increased by $0.3 million and $0.7 million in the three and six months ended June 30, 2026, respectively, compared to the same period in 2025, primarily due to higher interest related to long-term debt due to the funding of the second tranche of the Innovatus Loan in June 2025. 25 Provision for Income Taxes (in thousands, except percentages): Three Months Ended June 30, Change Six Months Ended June 30, Change 2026 2025 $ % 2026 2025 $ % Provision for income taxes $ 10 $ 10 $ — — % $ 46 $ 21 $ 25 119 % The provision for income taxes for the three and six months ended June 30, 2026 was primarily due to income taxes imposed by foreign taxing authorities related to the ongoing liquidation of our Indian subsidiary and accrual of interest and penalties on historic uncertain tax positions. The provision for income taxes for the three and six months ended June 30, 2025 was primarily due to the accrual of interest and penalties on historic uncertain tax positions. Net Loss Net loss for the three months ended June 30, 2026 was $12.0 million, or a net loss per basic and diluted share of $0.13. This compared to a net loss of $13.3 million, or a net loss per basic and diluted share of $0.16, for the three months ended June 30, 2025. The decrease in net loss was primarily related to $2.0 million lower costs and operating expenses in 2026. Net loss for the six months ended June 30, 2026 was $20.7 million, or a net loss per basic and diluted share of $0.23. This compared to a net loss of $34.0 million, or a net loss per basic and diluted share of $0.40, for the six months ended June 30, 2025. The decrease in net loss was primarily related to higher revenue and lower costs and operating expenses in 2026. LIQUIDITY AND CAPITAL RESOURCES Liquidity is the measurement of our ability to meet working capital needs and to fund capital expenditures. We have historically funded our operations primarily through cash generated from operations, stock option exercises and public and private offerings of our common stock. In addition, pursuant to our Loan Agreement with Innovatus, an affiliate of Innovatus Capital Partners, LLC, we borrowed $30.0 million from Innovatus, as Lender, on February 13, 2024 and borrowed an additional $10.0 million on June 27, 2025 upon the achievement of certain financial milestones. The Loan Agreement, which provided for an aggregate principal amount of up to $40.0 million, has a maturity date of February 13, 2029 (the “Innovatus Loan”). We actively manage our cash usage and investment of liquid cash to ensure the maintenance of sufficient funds to meet our working capital needs. Our cash and cash equivalents are held in U.S. banks. Our primary uses of capital for the foreseeable future, including the next 12 months, are for compensation and related expenses, research and development expenses including manufacturing costs, laboratory and related supplies, legal and other outside services, general overhead costs, and capital expenditures associated with our planned facility buildout and related equipment purchases. The following summarizes our cash and cash equivalents and short-term investments balances and working capital as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 December 31, 2025 Cash and cash equivalents $ 27,172 $ 50,793 Short-term investments $ 27,746 $ 27,416 Working capital $ 48,405 $ 71,499 Sources of Capital In addition to our existing cash and cash equivalents, short-term investments and revenue generated through our existing operations, we are eligible to earn milestone and other contingent payments for the achievement of defined collaboration objectives under our collaboration agreements. Our ability to earn these milestone and contingent payments and the timing of achieving these milestones is primarily dependent upon the outcome of our collaborators’ research and development activities and is uncertain at this time. 26 We have historically experienced negative cash flows from operations as we continue to invest in key technology development projects and improvements to our CodeEvolver technology platform, develop and commercialize new and existing products including our ECO Synthesis manufacturing platform and expand our business development and collaboration with new customers. Our cash flows from operations will continue to be affected principally by product sales and product gross margins, sales from licensing our technology to major pharmaceutical companies, and collaborative research and development services provided to customers, as well as our headcount costs. Our primary source of cash flows from operating activities is cash receipts from our customers for purchases of products, collaborative research and development services, and licensing our technology to major pharmaceutical companies. Our largest uses of cash from operating activities are for employee-related expenditures, rent payments, inventory purchases to support our product sales and non-payroll research and development costs. In addition, we expect capital expenditures to increase as we continue investments in our new manufacturing facility, including facility improvements and equipment purchases necessary to support future operations. Loan Agreement and Term Loans On February 13, 2024, we entered into the Loan Agreement with Innovatus consisting of up to two tranches, of which the first tranche of $30.0 million was disbursed upon execution of the Loan Agreement and the second tranche of $10.0 million was funded in June 2025 upon achievement of certain milestones including certain pre-specified revenue thresholds. Both tranches were subject to payment of a facility fee equal to 1.00% of the amount of such term loan. The Term Loan carries an interest-only period of 36 months (with the possibility to extend up to 48 months upon achievement of certain pre-specified financial milestones) and will bear interest at a floating rate of the sum of (a) the greater of (i) prime rate and (ii) 7.50%, plus (b) 3.25%. As of June 30, 2026, we were in compliance with all covenants of the Loan Agreement. Sales Agreements On May 2, 2024, we entered into the Cantor Sales Agreement with Cantor, under which Cantor, at our discretion and at such times that we may determine from time to time, may sell up to a maximum of $75.0 million of shares of our common stock. Under the terms of the Cantor Sales Agreement, Cantor may sell the shares at market prices by any method that is deemed to be an “at the market offering” as defined in Rule 415 under the Securities Act. On May 2, 2024, we filed a registration statement on Form S-3 registering the offer and sale of these shares under the Securities Act which became effective on May 14, 2024. We will pay a commission of up to 3.0% of gross sales proceeds of any common stock sold under the Cantor Sales Agreement. In 2024, 10,440,000 shares of our common stock were issued and sold pursuant to the Cantor Sales Agreement, all during the third quarter of 2024, and we received net proceeds of $29.7 million after Cantor’s commissions and direct offering expenses. In 2025, 7,244,966 shares of our common stock were issued and sold pursuant to the Cantor Sales Agreement, all during the second quarter of 2025, and we received $16.4 million in net proceeds after Cantor’s commissions and direct offering expenses. As of June 30, 2026, $26.4 million remained available for sale under the Cantor Sales Agreement. Sales of our common stock under the Cantor Sales Agreement could be subject to business, economic or competitive uncertainties and contingencies, many of which may be beyond our control, and which could cause actual results from the sale of our common stock to differ materially from expectations. Public Offering On July 23, 2026, we entered into an underwriting agreement for an underwritten public offering of 16,666,667 shares of our common stock at a public offering price of $1.50 per share, less underwriting discounts and commissions. The underwriters were granted a 30-day option to purchase up to an additional 2,500,000 shares. The offering closed on July 27, 2026, and we received net proceeds of approximately $23.1 million after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company. On July 29, 2026, the underwriters partially exercised their option and purchased an additional 1,333,333 shares of common stock at the public offering price of $1.50 per share, less underwriting discounts and commissions. Liquidity We believe that our existing cash and cash equivalents, combined with our future expectations for product revenues, research and development revenue, and expense management will provide adequate funds for planned ongoing operations, capital expenditures and working capital requirements for at least the next 12 months. We have based this estimate on assumptions that may prove to be wrong, and we could utilize our capital resources sooner than we expect. 27 However, we may need additional capital if our current plans and assumptions change. In addition, we may choose to seek sources of capital, which may arise through a combination of equity offerings, debt financings, other third-party funding and other collaborations, strategic alliances and partnering arrangements, even if we believe we have generated sufficient cash flows to support our operating needs. Our need for additional capital will depend on many factors, including the financial success of our business, the spending required to develop and commercialize new and existing products including our ECO Synthesis manufacturing platform, the effect of any acquisitions of other businesses, technologies or facilities that we may make or develop in the future, our spending on new market opportunities, and the potential costs for the filing, prosecution, enforcement and defense of patent claims, if necessary. If our capital resources are insufficient to meet our capital requirements, and we are unable to enter into or maintain collaborations with partners that are able or willing to fund our development efforts or commercialize any products that we develop or enable, we will have to raise additional funds to continue the development of our technology and products and complete the commercialization of products, if any, resulting from our technologies. If future financings involve the issuance of equity securities, our existing stockholders would suffer dilution. In addition, under our Loan Agreement, we are subject to restrictive covenants that limit our ability to conduct our business and could be subject to additional covenants to the extent we seek other debt financing in the future. We may not be able to raise sufficient additional funds on terms that are favorable to us, if at all. If we fail to raise sufficient funds and fail to generate sufficient revenues to achieve planned gross margins and to control operating costs, our ability to fund our operations, take advantage of strategic opportunities, develop products or technologies, or otherwise respond to competitive pressures could be significantly limited. If this happens, we may be forced to delay or terminate development of new products or services, such as our ECO Synthesis manufacturing platform, or the commercialization of products resulting from our technologies, curtail or cease operations or obtain funds through collaborative and licensing arrangements that may require us to relinquish commercial rights, or grant licenses on terms that are not favorable to us. If adequate funds are not available, we will not be able to successfully execute our business plan or continue our business. Cash Flows The following is a summary of cash flows for the six months ended June 30, 2026 and 2025 (in thousands): Six Months Ended June 30, 2026 2025 Net cash used in operating activities $ (22,793) $ (31,765) Net cash (used in) provided by investing activities (936) 11,402 Net cash provided by financing activities 52 27,859 Net (decrease) increase in cash, cash equivalents and restricted cash $ (23,677) $ 7,496 Cash Flows from Operating Activities The $9.0 million decrease in net cash used in operating activities for the six months ended June 30, 2026 as compared to the same period in 2025, was primarily due to smaller net operating loss driven by higher revenue and lower operating expenses, including decreased employee-related costs resulting from the reduction in force implemented in the fourth quarter of 2025, as well as lower spending on outside services. Cash Flows from Investing Activities The $12.3 million decrease in net cash provided by investing activities for the six months ended June 30, 2026 as compared to the same period in 2025, was primarily due to higher purchases of short-term investments and lower proceeds from maturities of short-term investments in the current period, partially offset by reduced capital expenditures. Cash Flows from Financing Activities The $27.8 million decrease in net cash provided by financing activities for the six months ended June 30, 2026 as compared to the same period in 2025, was primarily due to the absence of proceeds from issuance of common stock in connection with an equity sales agreement and proceeds from long term debt in the current period. CRITICAL ACCOUNTING POLICIES AND ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make judgments, estimates and assumptions in the preparation of our consolidated financial statements and accompanying notes. Actual results could differ from those estimates. There have been no material changes to our critical accounting policies or estimates during the three and six months ended June 30, 2026 from those discussed in our Annual Report. 28