You should read the following discussion of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and the related notes and other financial information included in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and notes thereto as of and for the years ended December 31, 2025 and 2024 and the related “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” including “Contractual Obligations and Commitments” and “Critical Accounting Policies and Estimates,” included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, or the SEC, on March 6, 2026. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “we,” “us,” and “our” refer to PMV Pharmaceuticals, Inc. In addition to historical information, this Quarterly Report on Form 10-Q contains forward-looking statements that involve risks, uncertainties, and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including but not limited to those set forth under the captions “Special Note Regarding Forward-Looking Statements,” “Item 1A. Risk Factors” and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by our subsequent filings under the Securities Exchange Act of 1934, as amended. Furthermore, past operating results are not necessarily indicative of results that may occur in future periods. Overview We are a precision oncology company pioneering the discovery and development of small molecule, tumor-agnostic therapies targeting p53. p53 is a well-defined tumor suppressor protein known as the “guardian of the genome,” and normal, or wild-type, p53 has the ability to eliminate cancer cells. However, mutant p53 proteins can be misfolded and lose their wild-type tumor suppressing function. These p53 mutations are found in approximately half of all cancers. The field of p53 biology was established by our co-founder Dr. Arnold Levine when he discovered the p53 protein in 1979. We have leveraged more than four decades of research experience and developed unique insights into p53 to create a precision oncology platform designed to generate selective, small molecule, tumor-agnostic therapies that structurally correct specific mutant p53 proteins to restore their wild-type function. We are deploying our precision oncology platform to target p53 mutations and other p53-related cancers. Since our formation in March 2013, we have devoted substantially all of our time and efforts to performing research and development activities, advancing our lead product candidate toward regulatory approval, and raising capital. We are not profitable and have incurred losses in each year since our inception. During the three and six months ended June 30, 2026, we incurred net losses of $18.1 million and $36.1 million, respectively. As of June 30, 2026, we had an accumulated deficit of $482.6 million. We do not currently have any product candidates approved for sale, and we continue to incur significant research and development and general and administrative expenses related to our operations. We initiated a Phase 1/2 clinical trial, PYNNACLE, in October 2020 for our lead product candidate, rezatapopt. Our strategy is to seek approval under an accelerated pathway, and we believe the Phase 2 portion of the PYNNACLE clinical trial has the potential to serve as a pivotal study. In October 2020, we were granted FDA Fast Track designation of rezatapopt for the treatment of patients with locally advanced or metastatic solid tumors that have a p53 Y220C mutation. In July 2023, we met with the FDA at an End of Phase 1 meeting where alignment was obtained on the recommended Phase 2 dose and key elements of the single arm, Phase 2 registrational portion of the PYNNACLE study. In October 2023, we presented our updated Phase 1 clinical data for rezatapopt at the 2023 AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics Annual Meeting. We dosed our first patient in the pivotal Phase 2 monotherapy portion of the PYNNACLE study in the first quarter of 2024. In September 2025, we announced interim data from the Phase 2 pivotal portion of the PYNNACLE clinical trial, which was updated in October 2025 in a late-breaking oral presentation and poster presentation at the 2025 AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics Meeting. In March 2026, rezatapopt was granted Orphan Drug Designation, or ODD, from the FDA for the treatment of TP53 Y220C positive ovarian cancer, fallopian tube cancer, and primary peritoneal cancer. In April 2026, we presented interim ovarian cancer data from the Phase 2 pivotal portion of the PYNNACLE clinical trial, in an oral presentation at the 2026 Society of Gynecologic Oncology Meeting. Enrollment of platinum-resistant/refractory ovarian cancer patients for the primary analysis in the Phase 2 monotherapy portion of the study has been completed. We plan to submit our initial New Drug Application, or NDA, via accelerated approval for platinum resistant/refractory ovarian cancer in the first quarter of 2027. We expect that our operating expenses will increase significantly as we advance our product candidates through preclinical and clinical development, seek regulatory approval, and prepare for and, if approved, proceed to commercialization; acquire, discover, validate, and develop additional product candidates; obtain, maintain, protect, and enforce our intellectual property portfolio; and hire additional personnel. We expect to continue to incur significant losses for the foreseeable future. 16 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. Until such time as we can generate significant revenue from product sales, if ever, we expect to finance our operations through private or public equity or debt financings, collaborative, or other arrangements with corporate sources, or through other sources of financing. Adequate funding may not be available to us on acceptable terms, or at all. If we fail to raise capital or enter into such agreements as and when needed, we may have to significantly delay, scale back or discontinue the development and commercialization of our product candidates. Management has determined that our current available cash, cash equivalents and marketable securities may not be sufficient to fund our planned operations for at least one year from the date of this Quarterly Report, and there is substantial doubt as to our ability to continue as a going concern. For additional information, see “Note 1 — Formation and Business of the Company— Liquidity and Going Concern.” We plan to continue to use third-party service providers, including clinical research organizations, or CROs, and contract manufacturing organizations, or CMOs, to carry out our preclinical and clinical development and to manufacture and supply the materials to be used during the development and commercialization of our product candidates. We do not currently have a sales force or commercial infrastructure, and we will need to develop these capabilities, or contract with third parties to perform these functions, to commercialize any product candidate that receives regulatory approval. Components of Results of Operations Revenue To date, we have not generated any revenue from any sources, including from product sales, and we do not expect to generate any revenue from the sale of products in the foreseeable future. If our development efforts for our product candidates are successful and result in regulatory approval, or result in license agreements with third parties, we may generate revenue in the future from product sales or license agreements. However, there can be no assurance as to when we will generate such revenue, if at all. Operating Expenses Research and Development Expenses Our research and development expenses consist primarily of costs incurred to conduct research, such as the discovery and development of our product candidates as well as the development of future product candidates. Research and development expenses include personnel costs, including stock-based compensation expense, third-party contractor services, and depreciation and maintenance of research equipment. We expense research and development costs as they are incurred. We do not allocate our costs by product candidate or development program, as a significant amount of research and development expenses include compensation costs, materials, supplies, depreciation on and maintenance of research equipment, and the cost of services provided by outside contractors, which are not tracked by product candidate or development program. 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. Substantially all of our research and development costs are associated with our lead product candidate, rezatapopt. We initiated our Phase 1/2 PYNNACLE clinical trial in October 2020, and on that date, we were granted FDA Fast Track designation of rezatapopt for the treatment of patients with locally advanced or metastatic solid tumors that have a p53 Y220C mutation. In October 2023, we presented our updated Phase 1 clinical data for rezatapopt at the 2023 AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics Meeting. In September 2025, we announced interim data from the Phase 2 pivotal portion of the PYNNACLE clinical trial, which was updated in October 2025 in a late-breaking oral presentation and poster presentation at the 2025 AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics Meeting. In March 2026, rezatapopt was granted ODD from the FDA for the treatment of TP53 Y220C positive ovarian cancer, fallopian tube cancer, and primary peritoneal cancer. Enrollment of platinum-resistant/refractory ovarian cancer patients for the primary analysis in the Phase 2 monotherapy portion of the study has been completed. We plan to submit our initial New Drug Application, or NDA, via accelerated approval for platinum resistant/refractory ovarian cancer in the first quarter of 2027. We expect to continue to incur substantial research and development expenses in the future as we advance our product candidates into and through clinical trials and pursue regulatory approval of our product candidates. The process of conducting the necessary clinical research to obtain regulatory approval is costly and time-consuming. The actual probability of success for our product candidates may be affected by a variety of factors including: the safety and efficacy of our product candidates, clinical data, investment in our clinical program, the ability of any future collaborators to successfully develop our licensed product candidates, competition, manufacturing capability, and commercial viability. We may never succeed in achieving 17 regulatory approval for any of our product candidates. As a result of the uncertainties discussed above, we are unable to determine the duration and completion costs of our research and development projects. General and Administrative Expenses General and administrative expenses include personnel costs, expenses for outside professional services and other allocated expenses. Personnel costs consist of salaries, bonuses, benefits, and stock-based compensation. Outside professional services consist of legal, accounting and audit services and other consulting fees. Allocated expenses consist of rent expense related to our office and research and development facilities. We have incurred expenses related to compliance with the rules and regulations of the SEC, and those of any national securities exchange on which our securities are traded, additional insurance expenses, investor relations activities and other administrative and professional services. We also expect to increase our general and administrative expenses as we advance our product candidates through preclinical research and development, manufacturing, clinical development, and commercialization. Interest Income, Net Interest income, net, primarily consists of interest income from our interest-bearing cash, cash equivalents, and marketable securities, and interest costs related to accretion and amortization of discounts and premiums on marketable securities. Results of Operations Comparison of the Three Months ended June 30, 2026 and 2025 The following table summarizes our results of operations (in thousands): Three Months Ended June 30, Statement of operations data: 2026 (Unaudited) 2025 (Unaudited) Change Operating expenses: Research and development $ 14,676 $ 18,400 $ (3,724 ) General and administrative 4,205 4,479 (274 ) Total operating expenses 18,881 22,879 (3,998 ) Loss from operations (18,881 ) (22,879 ) 3,998 Other income (expense): Interest income, net 788 1,690 (902 ) Other income (expense), net 10 (16 ) 26 Total other income (expense) 798 1,674 (876 ) Loss before (benefit) provision for income taxes (18,083 ) (21,205 ) 3,122 Provision (benefit) for income taxes 3 5 (2 ) Net loss $ (18,086 ) $ (21,210 ) $ 3,124 Research and Development Expenses The following table summarizes our research and development expenses incurred during the periods indicated (in thousands): 18 Three Months Ended June 30, Statement of operations data: 2026 (Unaudited) 2025 (Unaudited) Change Research $ 478 $ 1,347 $ (869 ) Development 9,612 12,865 (3,253 ) Personnel related 3,889 3,447 442 Stock-based compensation 697 741 (44 ) Total $ 14,676 $ 18,400 $ (3,724 ) Research and development expenses were $14.7 million for the three months ended June 30, 2026, compared to $18.4 million for the three months ended June 30, 2025. The decrease of $3.7 million, compared to the three months ended June 30, 2025, was primarily due to the following: •$4.1 million decrease in research and development expenses largely driven by decreased contract research organization costs for advancing our lead product candidate, rezatapopt; offset by •$0.5 million increase in personnel related costs. General and Administrative Expenses General and administrative expenses were $4.2 million for the three months ended June 30, 2026, compared to $4.5 million for the three months ended June 30, 2025. The decrease of $0.3 million, compared to the three months ended June 30, 2025, was primarily due to the following: •$0.1 million decrease in personnel expenses driven by a decrease in stock-based compensation costs and $0.2 million decrease in finance support costs. Interest Income, Net Interest income, net primarily consists of interest income from our interest-bearing cash, cash equivalents, and marketable securities and interest costs related to accretion and amortization of discounts and premiums on marketable securities. Interest income, net was $0.8 million for the three months ended June 30, 2026, compared to $1.7 million for the three months ended June 30, 2025. The decrease of $0.9 million was driven by decreased average invested balances in marketable securities and U.S. treasuries during the three months ended June 30, 2026. 19 Comparison of the Six Months ended June 30, 2026 and 2025 The following table summarizes our results of operations (in thousands): Six Months Ended June 30, Statement of operations data: 2026 (Unaudited) 2025 (Unaudited) Change Operating expenses: Research and development $ 30,006 $ 35,841 $ (5,835 ) General and administrative 7,894 8,600 (706 ) Total operating expenses 37,900 44,441 (6,541 ) Loss from operations (37,900 ) (44,441 ) 6,541 Other income (expense): Interest income, net 1,768 3,625 (1,857 ) Other income, net 11 (21 ) 32 Total other income 1,779 3,604 (1,825 ) Loss before provision for income taxes (36,121 ) (40,837 ) 4,716 Income taxes 3 (2,191 ) 2,194 Net loss $ (36,124 ) $ (38,646 ) $ 2,522 Research and Development Expenses The following table summarizes our research and development expenses incurred during the periods indicated (in thousands): Six Months Ended June 30, Statement of operations data: 2026 (Unaudited) 2025 (Unaudited) Change Research $ 1,487 $ 2,571 $ (1,084 ) Development 19,350 24,875 (5,525 ) Personnel related 7,834 7,018 816 Stock-based compensation 1,335 1,377 (42 ) Total $ 30,006 $ 35,841 $ (5,835 ) Research and development expenses were $30.0 million for the six months ended June 30, 2026, compared to $35.8 million for the six months ended June 30, 2025. The decrease of $5.8 million, compared to the six months ended June 30, 2025, was primarily due to the following: •$6.5 million decrease in research and development expenses largely driven by decreased contract research organization costs for advancing our lead product candidate, rezatapopt; offset by •$0.7 million increase in expenses for personnel related costs. General and Administrative Expenses General and administrative expenses were $7.9 million for the six months ended June 30, 2026, compared to $8.6 million for the six months ended June 30, 2025. The decrease of $0.7 million, compared to the six months ended June 30, 2025, was primarily due to the following: •$0.6 million decrease in finance and legal support costs, and $0.1 million decrease in personnel expenses driven by a decrease in stock-based compensation costs. Interest Income, Net Interest income, net primarily consists of interest income from our interest-bearing cash, cash equivalents, and marketable securities and interest costs related to accretion and amortization of discounts and premiums on marketable 20 securities. Interest income, net was $1.8 million for the six months ended June 30, 2026, compared to $3.6 million for the six months ended June 30, 2025. The decrease of $1.8 million compared to the six months ended June 30, 2025, was driven by decreased average invested balances in marketable securities and U.S. treasuries during the six months ended June 30, 2026. Income Tax Benefit The State of New Jersey’s Technology Business Tax Certificate Program allows certain high technology and biotechnology companies to sell NOL carryforwards and R&D tax credits to other New Jersey-based corporate taxpayers. As of June 30, 2025, we received $18.4 million of cash for the NOL and R&D tax credit sales related to the tax years ended December 31, 2015 to 2023. The sale of the NOLs and R&D tax credits have been recorded as an income tax benefit within the condensed consolidated statement of operations. For the six months ended June 30, 2025, we had reached the sale limit established by the program and received a benefit for income taxes of $2.2 million. We did not receive any benefit for income taxes for the six months ended June 30, 2026. Liquidity and Capital Resources Our financial condition is summarized as follows (in thousands): As of June 30, As of December 31, 2026 2025 Change Financial assets: Cash and cash equivalents $ 12,469 $ 37,983 $ (25,514 ) Marketable securities – current 66,962 74,960 (7,998 ) Marketable securities – noncurrent — — — Total financial assets $ 79,431 $ 112,943 $ (33,512 ) Working capital: Current assets $ 81,409 $ 115,227 $ (33,818 ) Current liabilities 10,568 11,415 (847 ) Total working capital $ 70,841 $ 103,812 $ (32,971 ) Sources of Liquidity Since our inception, we have not generated any revenue from any product sales or any other sources and have incurred significant operating losses and negative cash flows from our operations. We have not yet commercialized any of our product candidates. Even if the Company's drug development and commercialization efforts are successful, it is uncertain when, if ever, the Company will realize revenue from product sales. As of June 30, 2026, we had cash, cash equivalents, and marketable securities of $79.4 million and an accumulated deficit of $482.6 million. We have financed our operations primarily through issuance and sales of our equity securities. On November 20, 2024 we filed a shelf registration statement on Form S-3 (File No. 333-283349) with the SEC and a prospectus supplement, which registered the offering, issuance and sale of up to $200.0 million of various equity and debt securities and up to $113.8 million of common stock pursuant to an at-the-market equity offering program with Jefferies LLC, dated October 4, 2021, or the ATM Program. The SEC declared the registration statement effective on November 27, 2024. During the three and six months ending June 30, 2026, we did not sell any shares of our common stock pursuant to the ATM Program. As of June 30, 2026, we had approximately $113.8 million remaining in gross proceeds available for future issuances of common stock under the ATM Program. Contractual Obligations and Commitments We enter into contracts in the normal course of business with CROs and other vendors to assist in the performance of our research and development activities and other services and products for operating purposes. These contracts generally provide for termination on notice, and therefore are cancelable contracts. In September 2024, we signed two subleases, one for 14,201 square feet of office space at 400 Alexander Park Drive, Suite 301, in Princeton, New Jersey, to be used as our new headquarters, or the 400 Alexander Sublease, and the other for 3,205 square feet of office and laboratory space at 311 Pennington Rocky Hill in Hopewell, New Jersey, to be used for our new laboratory space, or the 311 Pennington Sublease. The 400 Alexander Sublease term extends until February 2027. Amounts 21 related to future lease payments for the 400 Alexander Sublease as of June 30, 2026, totaled $0.3 million with $0.3 million to be paid within the next 12 months. In March 2026, the 311 Pennington Sublease was terminated by the sublessor and we recorded a net gain of approximately $24 thousand, which was recognized in General and Administrative expense. Plan of Operation and Future Funding Requirements We use our capital resources primarily to fund operating expenses, mainly research and development expenditures. At this time, due to the inherently unpredictable nature of preclinical and clinical development, we cannot reasonably estimate the costs we will incur and the timelines that will be required to complete development, obtain marketing approval and commercialize our current product candidates or any future product candidates, if at all. For the same reasons, we are also unable to predict when, if ever, we will generate revenue from product sales or whether, or when, if ever, we may achieve profitability. Clinical and preclinical development timelines, the probability of success, and development costs can differ materially from expectations. In addition, we cannot forecast which product candidates may be subject to future collaborations, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our development plans and capital requirements. Due to our significant research and development expenditures, we have generated substantial operating losses in each period since inception. We have incurred an accumulated deficit of $482.6 million through June 30, 2026. We expect to incur substantial additional losses in the future. For the six months ended June 30, 2026 and 2025, our cash operating expenditures were $34.3 million and $36.6 million, respectively. Based on our research and development plans, we expect that our cash, cash equivalents, and marketable securities as of June 30, 2026 will be sufficient to fund our planned operations through the second quarter of 2027, which is less than one year from the date of this Quarterly Report. As a result, management has determined that there is substantial doubt as to our ability to continue as a going concern. Our ability to continue as a going concern will depend on, among other things, our ability to obtain additional funding and appropriately manage the amount of cash used to fund our operations. We plan to address this condition through public or private equity, convertible or debt financing or capital obtained in connection with strategic collaborations or licensing or other sources. There are inherent uncertainties as the outcome of these potential transactions are outside management’s control, and therefore there are no assurances that any of these potential transactions will occur. In addition, there can be no assurances that these transactions will sufficiently improve our liquidity or that we will otherwise realize the anticipated benefits. If we are not able to secure adequate additional funding, we may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, suspend or curtail planned programs, or pursue strategic alternatives. Any of these actions could materially harm our business, results of operations and future prospects. We have based this estimate on assumptions that may prove to be wrong, however, and we could use our capital resources sooner than we expect. The timing and amount of our operating expenditures will depend largely on: •the timing and progress of preclinical, clinical development and commercial preparatory activities; •the number and scope of preclinical and clinical programs we decide to pursue; •the timing and amount of milestone payments we may receive under any future collaboration agreements; •our ability to maintain future licenses and research and development programs and to establish new collaboration and/or in-licensing arrangements; •the costs involved in prosecuting and enforcing patent and other intellectual property claims; •the cost and timing of regulatory approvals; and •our efforts to manage our office headquarters, enhance operational systems and hire additional personnel to support development and commercialization of our product candidates and satisfy our obligations as a public company. Until such time, if ever, as we can generate substantial revenue from product sales, we expect to fund our operations and capital funding needs through equity and/or debt financing. We may also consider entering into collaboration arrangements or selectively partnering for clinical development and commercialization. The sale of additional equity would result in additional dilution to our stockholders. The incurrence of debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations or our ability to incur additional indebtedness or pay dividends, among other items. If we raise additional funds through governmental funding, 22 collaborations, strategic partnerships and alliances or marketing, distribution, or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us. If we are not able to secure adequate additional funding, we may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible, and/or suspend or curtail planned programs. Any of these actions could materially and adversely affect our business, financial condition, results of operations and prospects. Cash Flows The following table summarizes our cash flows for the period indicated (in thousands): Six Months Ended June 30, 2026 (Unaudited) 2025 (Unaudited) Cash used in operating activities $ (34,256 ) $ (36,568 ) Cash provided by (used in) investing activities 8,597 39,700 Cash provided by financing activities 143 113 Impact of exchange rates on cash and cash equivalents 2 6 Net increase (decrease) in cash and cash equivalents $ (25,514 ) $ 3,251 Operating Activities Net cash used in operating activities for the six months ended June 30, 2026, was $34.3 million, which consisted primarily of net loss of $36.1 million, partially offset by non-cash charges of $2.2 million. Changes in our net operating assets and liabilities decreased operating cash by $0.4 million. The non-cash charges primarily consisted of stock-based compensation of $2.9 million, accretion of discounts on marketable securities of $0.8 million, and depreciation of $0.1 million. The change in our net operating assets and liabilities was primarily due to a decrease in accounts payable, partially offset by an increase in accrued expenses and a decrease in prepaid expenses and other assets. Net cash used in operating activities for the six months ended June 30, 2025, was $36.6 million, which consisted primarily of net loss of $38.6 million partially offset by non-cash charges of $1.8 million. Changes in our net operating assets increased operating cash by $0.4 million. The non-cash charges primarily consisted of stock-based compensation of $3.2 million, accretion of discounts on marketable securities of $1.6 million, and depreciation of $0.1 million. The change in our net operating assets and liabilities was primarily due to an increase in prepaid expenses and other assets, and a decrease in outstanding payables and accrued expenses. Investing Activities Our investing activities provided $8.6 million of cash during the six months ended June 30, 2026, which consisted primarily of maturities of marketable securities of $46.0 million, partially offset by purchases of marketable securities of $37.4 million. Our investing activities provided $39.7 million of cash during the six months ended June 30, 2025, which consisted primarily of maturities of marketable securities of $86.4 million, partially offset by purchases of marketable securities of $46.7 million. Financing Activities Our financing activities provided $0.1 million and $0.1 million of cash during the six months ended June 30, 2026 and 2025, respectively. This consisted of $0.1 million of proceeds from the purchase of common stock under our 2020 ESPP during the six months ended June 30, 2026 and $0.1 million of proceeds from the exercise of stock options for the six months ended June 30, 2025. Critical Accounting Policies and Estimates The preparation of our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the amounts reported in those condensed consolidated financial statements and accompanying notes. Although we believe that the estimates we use are reasonable, due 23 to the inherent uncertainty involved in making those estimates, actual results reported in future periods could differ from those estimates. We believe that the accounting policies described below involve a high degree of judgment and complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our financial condition and results of our operations. During the six-month period ended June 30, 2026, there were no material changes to our critical accounting policies from those described in our audited consolidated financial statements for the year ended December 31, 2025, included in our Annual Report on Form 10-K filed with the SEC on March 6, 2026, except as noted below. Research and Development Costs, Accrued Research and Development Costs and Related Prepaid Expenses Research and development costs are expensed as incurred. Research and development expenses consist principally of personnel costs, including salaries, stock-based compensation and benefits for employees, third-party license fees and other operational costs related to our research and development activities, including sourcing of raw materials and manufacturing of our product candidates, allocated facility-related expenses and external costs of outside vendors, and other direct and indirect costs. Non-refundable research and development advance payments are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or services are performed. As part of the process of preparing our condensed consolidated financial statements, we are required to estimate our accrued research and development expenses. This process involves reviewing open contracts and purchase orders, communicating with our applicable personnel to identify services that have been performed on our behalf and estimating the level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual costs. The majority of our service providers invoice us in arrears for services performed, on a pre-determined schedule or when contractual milestones are met; however, some require advance payments. We make estimates of our accrued expenses as of each balance sheet date in the condensed consolidated financial statements based on facts and circumstances known to us at that time. We periodically confirm the accuracy of the estimates with the service providers and make adjustments if necessary. Examples of estimated accrued research and development expenses include fees paid to: •vendors, including research laboratories, in connection with preclinical development activities; •CROs and investigative sites in connection with preclinical studies and clinical trials; and •CMOs in connection with drug substance and drug product formulation of preclinical studies and clinical trial materials. We base our expenses related to preclinical studies and clinical trials on our estimates of the services received and efforts expended pursuant to quotes and contracts with multiple research institutions and CROs that supply, conduct and manage preclinical studies and clinical trials on our behalf. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows. There may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense. Payments under some of these contracts depend on factors such as the successful enrollment of patients and the completion of clinical trial milestones. In accruing service fees, we estimate the time period over which services will be performed and the level of effort to be expended in each period. If the actual timing of the performance of services or the level of effort varies from the estimate, we adjust the accrual or the prepaid expense accordingly. Although we do not expect our estimates to be materially different from amounts actually incurred, our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period. To date, there have not been any material adjustments to our prior estimates of accrued research and development expenses. Recent Accounting Pronouncements For a description of recent accounting pronouncements, see Note 2 of the notes to our unaudited condensed consolidated financial statements for the six months ended June 30, 2026 included elsewhere in this Quarterly Report on Form 10-Q.