You should read the following discussion and analysis of our financial condition and results of operations together with our condensed financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (this “report”). This discussion and analysis and other parts of this report contain forward-looking statements based upon current beliefs, plans and expectations related to future events and our future financial performance that involve risks, uncertainties and assumptions, such as statements regarding our intentions, plans, objectives, expectations, forecasts and projections. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under the section titled “Risk Factors” and elsewhere in this report. Overview We are a leading late-stage biotechnology company advancing durable and disease-targeted therapeutics with potential to transform treatment paradigms and provide unprecedented benefits to patients. Our primary focus is advancing 4D-150 for wet age-related macular degeneration (“wet AMD”) and diabetic macular edema (“DME”) through late-stage studies and potential commercialization. In addition, we are advancing our other pipeline programs, 4D-175 for geographic atrophy, 4D-710 for cystic fibrosis (“CF”) lung disease, and 4D-725 for alpha-1-antitrypsin deficiency (“AATD”) lung disease primarily through strategic funding alternatives. We believe we are well positioned to discover, develop, manufacture and if approved, commercialize targeted genetic medicines with the potential to transform the lives of patients suffering from debilitating diseases. Our lead product candidate 4D-150 utilizes our proprietary R100 vector and a transgene encoding anti-VEGF biologics: aflibercept and an RNA interference (RNAi) approach targeting VEGF-C. The goal for our development and potential commercialization of 4D-150 is to transform the standard of care for large market retinal vascular diseases with a routine in-office lifelong backbone therapy that substantially reduces treatment burden to enable improved long-term vision outcomes. 4D-150 is initially being developed for the treatment of wet AMD and DME. In March 2025, we initiated 4FRONT-1, our first Phase 3 trial of 4D-150 in wet AMD. Subsequently in February 2026, we announced enrollment completion within an approximately 11-month period, ahead of initial projections, with the clinical trial overenrolled and 523 patients randomized, reflecting strong interest from investigators and patients. We anticipate topline data for 4FRONT-1 in the second quarter of 2027. Additionally, in June 2025, we initiated 4FRONT-2, our second Phase 3 trial of 4D-150 in wet AMD. 4FRONT-2 is a global clinical trial and enrolled both treatment-naïve and recently diagnosed, treatment-experienced patients. We completed enrollment for 4FRONT-2 in June 2026 ahead of schedule with >500 patients expected to be randomized. We anticipate topline data for 4FRONT-2 in the second half of 2027. In November 2025 and July 2026, we announced positive long-term results from the ongoing 4D-150 PRISM Phase 1/2 clinical trial in wet AMD. 4D-150 demonstrated consistent and durable benefit across all three patient cohorts as evidenced by maintenance of visual acuity, control of retinal anatomy and clinically meaningful reduction of treatment burden at all time points with 2 years of follow-up. In addition, a consistent dose response was observed between 3E10 vg/eye, the selected Phase 3 dose, and the lower dose of 1E10 vg/eye. The Phase 3 dose achieved clinically meaningful reductions in treatment burden. No new cases of intraocular inflammation were reported during this follow-up period with up to approximately 4 years of follow-up. 35 In July 2025, we presented positive 60-week results from the 4D-150 SPECTRA clinical trial in DME where 4D-150 continued to be well tolerated with no intraocular inflammation observed at any timepoint or dose level. In addition, 4D-150 demonstrated durable and dose-dependent clinical activity with sustained gains in visual acuity and anatomic control between 3E10 vg/eye, the selected Phase 3 dose, and lower doses. The Phase 3 dose achieved clinically meaningful 78% reduction in treatment burden vs. projected on-label aflibercept 2mg Q8W. The FDA and EMA are aligned on a proposed single Phase 3 clinical trial being acceptable for possible future licensure for 4D-150 in DME. In October 2025, we entered into a Collaboration and License Agreement (the “Otsuka Agreement”) with Otsuka Pharmaceutical Co., Ltd., ("Otsuka") pursuant to which we granted Otsuka exclusive rights to develop and commercialize 4D-150 for retinal vascular diseases, including wet AMD and DME, in Japan, Korea, China, Australia, and other Asia-Pacific markets (the "Otsuka Territory"). Otsuka has agreed to lead all regulatory and commercialization activities in the Otsuka Territory. We have agreed to continue to lead all Phase 3 clinical activity globally, including within the Otsuka Territory. Otsuka made an upfront cash payment of $85.0 million and agreed to provide certain cost sharing for global development activities. In addition, we are eligible for up to $335.5 million in potential regulatory and commercial milestone payments and tiered double-digit royalties depending on net sales in the Otsuka Territory. We retain full development and commercialization rights for 4D-150 outside the Otsuka Territory, including the United States, Latin America, and Europe. Our other retina pipeline program is 4D-175, which utilizes the intravitreal R100 AAV vector and a codon-optimized transgene encoding a highly functional shortened form of human complement factor H (sCFH) for treatment of geographic atrophy. The sCFH payload is designed to restore normal complement regulation, which has the potential to slow progression of disease. We currently maintain an active IND and continue to evaluate strategic funding alternatives to advance the program into the clinic. Our most advanced pulmonary pipeline program is 4D-710, which we believe is the first known genetic medicine to demonstrate successful delivery and durable expression of the cystic fibrosis transmembrane conductance regulator (“CFTR”) transgene in the lungs of people with cystic fibrosis ("CF") and is currently in Phase 2 development. We believe these results will translate into durable clinical improvements in people with CF, including improved lung function and quality of life. In October 2025, we announced a funding agreement with the Cystic Fibrosis Foundation ("CFF") to provide up to $11.0 million in additional funding, including $7.5 million in an initial tranche, which was completed in October 2025. The proceeds of this funding agreement enabled the start of the Phase 2 stage of the AEROW clinical trial, redosing, and Phase 3 readiness activities. We have funded our operations primarily through the sale and issuance of equity securities, from borrowings under our loan facility with Hercules Capital, Inc. and, to a lesser extent, from cash received pursuant to our collaboration and license agreements. We have incurred significant operating losses. Our net losses were $72.9 million and $54.7 million for the three months ended June 30, 2026 and 2025, respectively, and $141.7 million and $102.6 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $858.0 million. We do not expect positive cash flows from operations in the foreseeable future. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our clinical trials and our expenditures on other research and development activities. We do not have any products approved for sale and have not generated any revenue from product sales since our inception. Our ability to generate product revenue will depend on the successful development, regulatory approval and eventual commercialization of one or more of our product candidates, if approved. 36 We will require substantial additional funding to support our continuing operations and further the development of our product candidates. Until such time as we can generate significant revenue from product sales, if ever, we expect to finance our operations through the sale of equity, debt financings, or other capital sources, which could include income from collaborations, strategic partnerships, or other strategic arrangements, for the foreseeable future. Adequate funding may not be available when needed or on terms acceptable to us, or at all. Our ability to raise additional funds may be adversely impacted by potential worsening global economic conditions and the recent disruptions to, and volatility in, the credit and financial markets in the United States and worldwide resulting from conflicts in the Middle East, the war in Ukraine, rising interest rates, tariffs, inflation, government shutdowns and otherwise. If we fail to obtain necessary capital when needed on acceptable terms, or at all, it could force us to delay, limit, reduce or terminate our product development programs, commercialization efforts or other operations. Insufficient liquidity may also require us to relinquish rights to product candidates at an earlier stage of development or on less favorable terms than we would otherwise choose. We cannot assure you that we will ever be profitable or generate positive cash flow from operating activities. Components of Results of Operations Revenue Our revenue to date has been generated through payments from our collaboration and license agreements, primarily from upfront and milestone payments and clinical trial cost sharing and expense reimbursement amounts. We have not generated any revenue from the sale of approved products and do not expect to do so for the foreseeable future. In October 2025, we entered into the Otsuka Agreement where we granted Otsuka exclusive rights to develop and commercialize 4D-150 for retinal vascular diseases, including wet AMD and DME, in the Otsuka Territory. Otsuka made an upfront cash payment of $85 million which we recognized as revenue during the fourth quarter of 2025, and agreed to provide certain cost sharing for global development activities. Future collaboration and license revenue is highly dependent on the successful development and commercialization of products by our collaboration partners, which is uncertain, and revenue may fluctuate significantly from period to period. Additionally, we may never receive the consideration from our license agreements that is contemplated for option fees, development and sales-based milestone payments or royalties on sales of licensed products, given the contingent nature of these payments. Operating Expenses Research and Development Our research and development expenses primarily consist of costs incurred for the discovery and preclinical and clinical development of our product candidates. These expenses include salaries and personnel-related costs, including stock-based compensation of our clinical, medical, chemistry, manufacturing and controls and scientific personnel performing research and development activities; laboratory supplies; research materials; fees paid to CROs to execute preclinical studies and clinical trials; fees paid to CDMOs to manufacture materials for preclinical studies and clinical trials; fees related to obtaining technology licenses; consulting costs; costs related to seeking regulatory approval of our product candidates; and allocated facility-related costs, information technology costs, depreciation expense, and other overhead. 37 We expense all research and development costs in the periods in which they are incurred. We have entered into various agreements with CROs and CDMOs. Costs of certain activities are recognized based on an evaluation of the progress to completion of specific tasks. Payments made prior to the receipt of goods or services that will be used or rendered for future research and development activities are deferred and capitalized as prepaid expenses and other current assets on our balance sheet. The capitalized amounts are recognized as expense as the goods are delivered or the related services are performed. We do not allocate our internal costs, such as salary and other personnel-related expenses, laboratory supplies and allocated overhead by product candidate. In particular, with respect to internal costs, several of our departments support multiple product candidate research and development programs and, therefore, the costs cannot be allocated to a particular product candidate or development program. At this time, we cannot reasonably estimate or know the nature, timing or estimated costs of the efforts that will be necessary to complete the development of, and obtain regulatory approval for, any of our product candidates. The process of conducting the necessary clinical development to obtain regulatory approval is costly and time-consuming, and the successful development of our product candidates is highly uncertain. See the section titled “Risk Factors” for additional risks regarding regulatory development and approval. General and Administrative Our general and administrative expenses consist primarily of personnel-related expenses, including salaries, employee benefit costs and stock-based compensation expense for our personnel in executive, finance and accounting, legal, human resources, business development, and other administrative functions. General and administrative expenses also include professional fees for legal, patent, consulting, accounting and tax services, allocated overhead, including rent, equipment, depreciation, information technology costs and utilities, and other general operating expenses not otherwise classified as research and development expenses. Other Income, Net Our other income, net primarily consists of interest income earned on our cash equivalents and marketable securities and adjustments for the change in the fair value of our derivative liability which must be remeasured at each reporting date. Results of Operations Comparison of the Three and Six Months Ended June 30, 2026 and 2025 The following tables summarize our results of operations for the periods indicated (dollars in thousands): Three Months Ended June 30, 2026 2025 $ Change % Change Revenue Collaboration and license revenue $ 3,781 $ 15 $ 3,766 * Operating Expenses: Research and development 68,282 47,951 20,331 42 % General and administrative 12,524 11,520 1,004 9 % Total operating expenses 80,806 59,471 21,335 36 % Loss from operations (77,025 ) (59,456 ) (17,569 ) 30 % Other Income, Net 4,089 4,798 (709 ) (15 )% Net loss $ (72,936 ) $ (54,658 ) $ (18,278 ) 33 % * not meaningful 38 Six Months Ended June 30, 2026 2025 $ Change % Change Revenue Collaboration and license revenue $ 6,828 $ 29 $ 6,799 * Operating Expenses: Research and development 133,262 88,650 44,612 50 % General and administrative 24,212 24,456 (244 ) (1 )% Total operating expenses 157,474 113,106 44,368 39 % Loss from operations (150,646 ) (113,077 ) (37,569 ) 33 % Other Income, Net 8,950 10,447 (1,497 ) (14 )% Net loss $ (141,696 ) $ (102,630 ) $ (39,066 ) 38 % * not meaningful Revenue Revenue increased by $3.8 million from the three months ended June 30, 2025 to the three months ended June 30, 2026, and increased by $6.8 million from the six months ended June 30, 2025 to the six months ended June 30, 2026. The increase in revenue was primarily due to the clinical trial cost sharing and reimbursement amounts from Otsuka. Research and Development Expenses The following table provides a breakout of research and development expenses for the periods indicated (dollars in thousands): Three Months Ended June 30, 2026 2025 $ Change % Change Direct research and development expenses for 4D-150 $ 43,557 $ 19,134 $ 24,423 128 % Unallocated personnel costs (including stock-based compensation) 15,996 17,871 (1,875 ) (10 )% All other costs 8,729 10,946 (2,217 ) (20 )% Total research and development expenses $ 68,282 $ 47,951 $ 20,331 42 % Six Months Ended June 30, 2026 2025 $ Change % Change Direct research and development expenses for 4D-150 $ 86,280 $ 31,907 $ 54,373 170 % Unallocated personnel costs (including stock-based compensation) 30,526 35,099 (4,573 ) (13 )% All other costs 16,456 21,644 (5,188 ) (24 )% Total research and development expenses $ 133,262 $ 88,650 $ 44,612 50 % 39 Research and development expenses increased by $20.3 million, or 42%, from the three months ended June 30, 2025 to the three months ended June 30, 2026. The increase of $20.3 million was primarily due to an increase in clinical trial activity for wet AMD. Research and development expenses increased by $44.6 million, or 50%, from the six months ended June 30, 2025 to the six months ended June 30, 2026. The increase of $44.6 million was primarily due to an increase in clinical trial activity for wet AMD. General and Administrative Expenses General and administrative expenses increased by $1.0 million, or 9%, from the three months ended June 30, 2025 to the three months ended June 30, 2026. General and administrative expenses decreased by $0.2 million, or 1%, from the six months ended June 30, 2025 to the six months ended June 30, 2026. The fluctuations in general and administrative expenses were immaterial for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025, respectively. Other Income, Net Other income, net, decreased by $0.7 million, or 15%, from the three months ended June 30, 2025 to the three months ended June 30, 2026. Other income, net, decreased by $1.5 million, or 14%, from the six months ended June 30, 2025 to the six months ended June 30, 2026. The decreases were primarily because of lower yields on our cash equivalents and marketable securities due to lower balances. Liquidity and Capital Resources Sources of Liquidity As of June 30, 2026, we had cash, cash equivalents and marketable securities of $430.6 million. We have funded our operations primarily through the sale and issuance of our equity securities, including Follow-on Offerings and our “at-the-market” offering program, from borrowings under our Loan and Security Agreement and, to a lesser extent, from cash received pursuant to our collaboration and license agreements. Our recent sources of liquidity include the following transactions: Follow-on Offerings In November 2025, we completed an underwritten offering (the "2025 Offering") in which 8,385,809 shares of our common stock were sold at an offering price of $10.51 per share, as well as pre-funded warrants to purchase 1,128,949 shares of our common stock at an offering price of $10.5099 per underlying share. The net proceeds from the 2025 Offering were approximately $93.3 million, after deducting the underwriting discounts and commissions and other offering expenses. At-the-Market Offering Program In June 2024, we entered into a Sales Agreement (the “Leerink Sales Agreement”) with Leerink Partners LLC (“Leerink”) as sales agent to sell shares of our common stock, from time to time, with aggregate gross sales proceeds of up to $250.0 million pursuant to a Registration Statement on Form S-3 that we filed with the SEC in February 2024, and subsequently amended in February 2025, as an “at-the-market” offering under the Securities Act. For the year ended December 31, 2025, 1,175,000 shares of our common stock were sold pursuant to the Leerink Sales Agreement for net proceeds to us of $9.6 million, after deducting issuance costs. For the six months ended June 30, 2026, 3,518,472 shares were sold pursuant to the Leerink Sales Agreement for net proceeds to the Company of $31.6 million, after deducting issuance costs. 40 Collaboration and License Agreements In October 2025, we entered into a Collaboration and License Agreement with Otsuka where we granted Otsuka exclusive rights to develop and commercialize 4D-150 for retinal vascular diseases, including wet AMD and DME, in the Otsuka Territory. Otsuka made an upfront cash payment of $85 million which we recognized as revenue during the fourth quarter of 2025, and agreed to provide certain cost sharing for global development activities. Loan and Security Agreement In June 2026, we entered into a Loan and Security Agreement (the “Loan and Security Agreement”) with with Hercules Capital, Inc., providing for up to $200.0 million in term loan borrowings. At the closing on June 24, 2026, the Company had access to a $50.0 million tranche, of which it borrowed $20.0 million. The remaining $30.0 million is available, at the Company's option, through June 15, 2027. The Company may draw up to an additional $100.0 million in three separate tranches upon achievement of certain clinical, regulatory, financing and capitalization milestones. As of June 30, 2026, the Company had not met the requirements to access the funds under these tranches, as it had not achieved the related milestone. An additional fifth tranche of $50.0 million may be made available upon the Company's request and at Hercules’ sole discretion and is not contingent upon the Company’s achievement of the milestones applicable to the prior tranches. The Loan and Security Agreement matures on June 1, 2031. The initial borrowing of $20.0 million bears interest at a floating rate equal to the greater of (i) the prime rate plus 2.0% and (ii) 8.75%, and all future borrowings, including the available balance of $30.0 million of the $50.0 million tranche available as of June 24, 2026, bear interest at a floating rate equal to the greater of (i) the prime rate plus 2.5% and (ii) 9.25%. The floating interest rate is capped at 0.75% more than the interest rate at the time of the borrowing. The Company is required to make monthly interest-only payments for borrowings under the initial tranche of $50.0 million for a period of 29 months, which may be extended by up to an additional 30 months upon achievement of certain clinical, regulatory, financing and capitalization milestones. The Loan and Security Agreement includes an end-of-term charge ranging from 3.70% to 6.50% of the aggregate principal amount, depending on the timing of the repayment. We may voluntarily prepay outstanding borrowings, subject to prepayment premiums ranging from 1.0% to 3.0% of the principal amount prepaid, depending on the timing of repayment. In connection with the Loan and Security Agreement, we paid a $0.5 million initial facility fee and incurred approximately $2.1 million of debt issuance costs, consisting primarily of lender fees and third-party legal and other transaction costs. The Loan and Security Agreement contains financial covenants, including minimum cash and performance-based covenants, that are not yet subject to testing or effective as of June 30, 2026. Upon the occurrence of certain events and beginning no earlier than January 1, 2028, the Company may become subject to minimum cash and performance-based financial covenants. The Loan and Security Agreement contains customary events of default, including failure to make required payments or maintain compliance with covenants, breach, default, insolvency, attachment or judgment events and any circumstance which could reasonably be expected to have a material adverse effect on the Company. The Loan and Security Agreement also contains customary affirmative and restrictive covenants, representations and warranties associated with a secured loan facility, including certain limitations on indebtedness, liens, investments, distributions, mergers or acquisitions and corporate changes. As of June 30, 2026, the outstanding principal under the Loan and Security Agreement was $20.0 million, bearing interest at a rate of 8.75% per annum. Future Funding Requirements We have experienced recurring net losses and had an accumulated deficit of $858.0 million as of June 30, 2026. Our transition to profitability is dependent upon the successful development, approval and commercialization of our product candidates and those of our collaboration partners and achieving a level of revenue adequate to support our cost structure. We expect to continue to incur losses for the foreseeable future. 41 We expect that our overall research and development and general and administrative expenses will increase. As a result, we will need significant additional capital to fund our operations, which we may obtain through one or more equity offerings, debt financings or other third-party funding, the Otsuka Agreement, and additional potential strategic alliances and licensing or collaboration arrangements. Because of the numerous risks and uncertainties associated with the development and commercialization of gene therapy product candidates, we are unable to estimate the amount of increased capital we will need to raise to support our operations and the outlays and operating expenditures necessary to complete the development of our product candidates and build additional manufacturing capacity, and we may use our available capital resources sooner than we currently expect. Our future capital requirements will depend on many factors, including: •the progress of our current and future product candidates through preclinical and clinical development; •potential delays in our preclinical studies and clinical trials, whether current or planned; •working with our contract manufacturers to scale up the manufacturing processes for our product candidates; •continuing our research and discovery activities; •continuing the development of our Therapeutic Vector Evolution platform; •initiating and conducting additional preclinical, clinical or other studies for our product candidates; •changing or adding additional contract manufacturers or suppliers; •seeking regulatory approvals and marketing authorizations for our product candidates; •establishing sales, marketing and distribution infrastructure to commercialize any products for which we obtain approval; •acquiring or in-licensing product candidates, intellectual property and technologies; •making milestone, royalty or other payments due under any current or future collaboration or license agreements; •receiving milestone, royalty or other payments under any current or future collaboration or license agreements; •obtaining, maintaining, expanding, protecting and enforcing our intellectual property portfolio; •attracting, hiring and retaining qualified personnel; •potential delays or other issues related to our operations; •meeting the requirements and demands of being a public company; •defending against any product liability claims or other lawsuits related to our products; and •adverse macroeconomic conditions such as, but not limited to, higher inflation and increased interest rates, each of which may exacerbate the magnitude of the factors discussed above. We believe that our existing cash, cash equivalents and marketable securities will allow us to fund our planned operations for at least one year from the date of the issuance of the condensed financial statements included in this report. 42 We have based our estimates as to how long we expect we will be able to fund our operations on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we currently expect, in which case we would be required to obtain additional financing sooner than currently projected, which may not be available to us on acceptable terms, or at all. Our failure to raise capital as and when needed would have a negative impact on our financial condition and our ability to pursue our business strategy. See the section titled “Risk Factors” for additional risks associated with our substantial capital requirements. We have limited committed external sources of funds. Accordingly, we will be required to obtain further funding through public or private equity offerings, debt financings, collaborations and licensing arrangements or other sources to complete the clinical development for the product candidates for treatment of wet AMD, DME, geographic atrophy, cystic fibrosis lung disease, alpha-1 antitrypsin deficiency lung disease or any other indication we may pursue. If we raise additional funds by issuing equity securities, our stockholders may experience dilution. Any future debt financing into which we enter would result in fixed payment obligations and may involve agreements that include grants of security interests on our assets and restrictive covenants that limit our ability to take specific actions, such as incurring additional debt, making capital expenditures, granting liens over our assets, redeeming stock or declaring dividends, that could adversely impact our ability to conduct our business. Any debt financing or additional equity that we raise may contain terms that could adversely affect our common stockholders. Further, additional funds may not be available when we need them, on terms that are acceptable to us, or at all. Our ability to raise additional capital may be adversely impacted by potential worsening global economic conditions and the recent disruptions to and volatility in the credit and financial markets in the United States and worldwide resulting from the war in Ukraine, conflicts in the Middle East, any expansion of these conflicts, rising interest rates and inflation, natural disasters and pandemics. If we are unable to obtain additional funding, we expect to delay, reduce or eliminate some or all of our research and development programs, product portfolio expansion or investment in manufacturing capabilities, which could adversely affect our business. If we raise additional funds through collaborations or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to future revenue streams or product candidates or grant licenses on terms that may not be favorable to us. Summary Statement of Cash Flows The following is a summary of cash flows for the periods indicated below (in thousands): Six Months Ended June 30, 2026 2025 Net cash used in operating activities $ (138,124 ) $ (91,135 ) Net cash provided by investing activities 94,432 18,096 Net cash provided by financing activities 53,823 862 Net increase (decrease) in cash and cash equivalents $ 10,131 $ (72,177 ) Net Cash Used in Operating Activities Net cash used in operating activities was $138.1 million for the six months ended June 30, 2026. This was primarily due to the net loss of $141.7 million, adjusted for noncash charges of $12.4 million and net changes in operating assets and liabilities of $8.8 million. Noncash charges included $10.3 million of stock-based compensation expense, $2.5 million of depreciation and amortization, $1.6 million for the amortization of operating lease right-of-use assets and $0.1 million for the loss on disposal of property and equipment, partially offset by $2.1 million net accretion of discount on marketable securities. Net changes in operating assets and liabilities included decreases of $1.8 million in operating lease liabilities and $0.5 million in accounts payable and increases of $10.4 million in prepaid expenses and other current assets and $0.7 million in other non-current assets, partially offset by increases of $2.4 million in accrued and other liabilities and $2.2 million in deferred revenue. 43 Net cash used in operating activities was $91.1 million for the six months ended June 30, 2025. This was primarily due to the net loss of $102.6 million, adjusted for noncash charges of $13.1 million and net changes in operating assets and liabilities of $1.6 million. Noncash charges included $11.9 million of stock-based compensation expense, $2.2 million of depreciation and amortization and $1.4 million for the amortization of operating lease right-of-use assets, offset by $2.4 million net accretion of discount on marketable securities. Net changes in operating assets and liabilities included a $1.5 million decrease in operating lease liabilities and a $5.1 million increase in other non-current assets, offset by a $4.3 million increase in accounts payable and a $0.7 million increase in accrued and other liabilities. Net Cash Provided by Investing Activities Net cash provided by investing activities was $94.4 million for the six months ended June 30, 2026. This was due to $190.0 million in maturities of marketable securities, partially offset by purchases of marketable securities of $95.6 million Net cash provided by investing activities was $18.1 million for the six months ended June 30, 2025. This was due to $268.3 million in maturities of marketable securities, offset by purchases of marketable securities of $249.5 million and purchases of property and equipment of $0.7 million. Net Cash Provided by Financing Activities Net cash provided by financing activities was $53.8 million for the six months ended June 30, 2026 which was due to proceeds from the issuance of common stock pursuant to the Leerink Sales Agreement of $31.6 million proceeds from the Loan and Security Agreement of $19.3 million, proceeds from the issuance of common stock from the exercise of stock options of $1.8 million and proceeds from the issuance of common stock from ESPP purchases of $1.1 million. Net cash provided by financing activities was $0.9 million for the six months ended June 30, 2025 which was due to proceeds from the issuance of common stock from ESPP purchases of $0.9 million. Contractual Obligations, Commitments and Contingencies We enter into various agreements in the ordinary course of business, such as those with suppliers, CROs, CDMOs and clinical trial sites. These contracts generally provide for termination on notice or may have a potential termination fee if a purchase order is canceled within a specified time. The total value of non-cancellable obligations under contracts was $4.9 million and $4.0 million as of June 30, 2026 and December 31, 2025, respectively. This presentation of non-cancellable purchase obligations does not include any estimates of potential reduction of such liabilities related to mitigation obligations of the counter-parties in the event of cancellation under the terms of our engagements. As of June 30, 2026, our principal commitments consisted of principal outstanding under the Loan and Security Agreement and obligations under our operating lease for our headquarters. Please see Note 8, Commitments and Contingencies and Note 9, Long-Term Debt, to our condensed financial statements included elsewhere in this report. 44 Critical Accounting Policies and Significant Judgments and Estimates Our condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of our condensed financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of our condensed financial statements, as well as the reported revenue and expenses during the reported periods. We evaluate these estimates and assumptions on an ongoing basis. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. During the six months ended June 30, 2026, there were no changes to our critical accounting policies and significant judgments and estimates as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025. Recent Accounting Pronouncements See Note 2, Summary of Significant Accounting Policies, to our condensed financial statements included elsewhere in this report for information. Off-Balance Sheet Arrangements Since our inception, we have not engaged in any off-balance sheet arrangements as defined in the rules and regulations of the SEC.