You should read the following discussion and analysis together with our unaudited condensed consolidated financial statements and related notes thereto included in “Item 1. Financial Statements (Unaudited)” of this Quarterly Report on Form 10-Q and the audited financial statements and related notes thereto as of and for the year ended December 31, 2025 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”), on March 9, 2026. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, includes forward-looking statements that involve risks and uncertainties. For a complete discussion of forward-looking statements, see the section above entitled “Special Note Regarding Forward-Looking Statements.” As a result of many factors, including those factors set forth under the caption “Item 1A. Risk Factors” of this Quarterly Report, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. You should carefully read the “Risk Factors” section of this Quarterly Report to gain an understanding of the various factors that could cause actual results to differ materially from our forward-looking statements. Overview We are a biopharmaceutical company focused on the commercialization of neffy® (also identified in the European Union (“EU”) and United Kingdom (“UK”) by the trade name EURneffy and in China by the trade name 优敏速) needle-free intranasal delivery of epinephrine for emergency treatment of Type I allergic reactions, including anaphylaxis. neffy is the first and only needle-free epinephrine product approved by the U.S. Food and Drug Administration (“FDA”) and the European Commission, and also has approvals in the UK, Japan, Australia, China, and Canada. It is the first new delivery method for epinephrine in more than 35 years. neffy is a proprietary composition of epinephrine with an innovative absorption enhancer called Intravail, which allows neffy to safely provide intranasal delivery of epinephrine at a low dose within the exposures of approved injectable products across a range of dosing conditions (including repeat dosing and allergen challenge). We believe there is a multi-billion dollar market opportunity for neffy in the United States. Approximately 40.0 million people in the U.S. have experienced a type I allergic reaction based on epidemiology. Of this group, approximately 21.0 million people are reported to have been diagnosed and experienced severe Type I allergic reactions that may lead to anaphylaxis. Based on our estimates, there are approximately 7.4 million patients who are actively filling epinephrine prescriptions today, of whom approximately 3.3 million fill an epinephrine prescription in any given year. As the first and only needle-free epinephrine option, neffy has the potential to become the standard of care. In August 2024, the FDA approved neffy 2 mg for the emergency treatment of Type I allergic reactions, including anaphylaxis, in adults and children who weigh 30 kg or greater, with neffy 1 mg subsequently approved in March 2025 for patients who are four years of age and older who weigh 15 kg to less than 30 kg. In March 2026, the FDA approved updating the neffy 1 mg label to remove the age criteria so all children and adults who weigh 15 kg or more can utilize neffy 1 mg. 38 Our commercialization strategy for neffy in the United States is focused on direct engagement with high-value prescribers of epinephrine, which account for approximately 44% of the total U.S. market opportunity, to drive market share growth. We believe growth in this market can be achieved through repeated interactions with prescribers regarding the treatment and prevention of Type 1 allergic reactions, including anaphylaxis, and the delayed or avoided administration of injectable epinephrine, and through efforts to convert established prescribing habits with injectable epinephrine products. Our U.S. commercial launch is building momentum, and our launch data show meaningful physician and patient demand. More than 35,000 healthcare providers have prescribed neffy to date, with approximately 40% being repeat prescribers. Over 16,000 of these prescribers were unique additions in the second quarter of 2026, representing a nearly threefold increase over the same period in 2025. Approximately 167,000 patients in the U.S. have been prescribed neffy as of the end of the second quarter of 2026, with about 41,200 added during the second quarter of 2026. This demand has contributed to a doubling of U.S. epinephrine market share in the second quarter of 2026 compared to the same period in 2025, with total market share increasing to 5% from 2.5% and market share in field-targeted accounts increasing to 8% from 4%. In parallel, we have secured broad insurance coverage and will continue to engage with U.S. payers, both commercial and Medicaid, with a goal of furthering expanding coverage. Currently, we have secured approximately 90% overall commercial coverage, inclusive of plans that may still require prior authorization, approximately 57% commercial coverage without prior authorization, and 9 of 50 Medicaid states cover neffy without prior authorization, including Florida, a bellwether Medicaid state that added neffy to its unrestricted formulary effective July 1, 2026. We understand that many additional states are progressing towards placing neffy on their preferred drug list. Our U.S. launch strategy is also supported by: active participation of approximately 4,400 healthcare professionals in our neffy experience program that allows healthcare professionals to use neffy firsthand as rescue therapy for anaphylaxis during in-clinic allergen challenge as well as for the ongoing collection of real-world evidence that supports neffy’s clinical equivalence to injection; extensive non-personal promotion including medical education programs in collaboration with allergist societies, speaker bureaus, peer-to-peer programs and participation in regional and national medical conferences; engagement and contracting with payors to obtain timely coverage with favorable gross-to-net discounting, including certain pharmacy benefit managers, where the approval processes are actively ongoing for addition of neffy to their formularies without prior authorization; our artificial intelligence solution to support healthcare providers by automating the checking and writing of prior authorizations; our neffyconnect program that provides support to physicians and patients including our $25 co-pay savings card, $199 cash price available through all channels including retail via a denial-conversion system, and patient assistance programs; our neffyinSchools programs, where more than 14,000 schools to date have opted into receiving two cartons of neffy at no cost with accompanying school nurse education about neffy; multi-channel branded direct to consumer advertising including connected television, point of care, endemic and programmatic display, social media, and paid search, as well as linear television advertising; and partnerships with patient advocacy organizations including disease awareness campaigns. To reduce the time burden of an in-person healthcare provider visit, our “Get neffy on Us” program that offers patients a free visit through our virtual prescriber website, getneffy.com, along with a $0 co-pay for eligible patients with commercial insurance. We also have an ongoing U.S. post-marketing registry-based study for neffy for the treatment of anaphylaxis in oral food challenge or allergen immunotherapy clinics. In August 2024, the EC granted marketing authorization in the EU for EURneffy 2 mg (the trade name for neffy 2 mg in the EU and UK), for the emergency treatment of allergic reactions, including anaphylaxis, in adults and children who are four years of age and older who weigh 30 kg or greater. In March 2026, the EMA granted marketing authorization in the EU for EURneffy 1 mg for children who are four years of age and older who weigh 15 kg to less than 30 kg. Through our collaboration with ALK, EURneffy 2 mg was launched in Europe, beginning with Germany in June 2025, followed by the UK in October 2025. We received approval of neffy 2 mg and 1 mg in Japan in September 2025, and neffy was launched in February 2026 by our collaboration partner, Alfresa. We also received approval of neffy 2 mg and 1 mg in Australia in December 2025, and neffy was launched in February 2026 by our collaboration partner, Seqirus. In December 2025, we received approval in China of 优敏速 (the trade name for neffy 2 mg in China), and 优敏速 was launched by our collaboration partner, Pediatrix, in May 2026. In April 2026, we received approval in Canada of neffy 2 mg, with commercial launch by our collaboration partner, ALK, expected later in 2026. neffy has already been approved or is under regulatory review in countries representing approximately 98% of the current global epinephrine autoinjector sales market. 39 In addition to our neffy base business, we are evaluating our intranasal epinephrine technology known as ARS-2, as a potential needle-free, on-demand rescue treatment option for acute flares in chronic spontaneous urticaria (“CSU”). At the 2024 American Academy of Allergy, Asthma and Immunology Annual Meeting, we reported positive topline results from a Phase 2 inpatient trial in 18 treatment-refractory CSU patients that demonstrated statistically significant and clinically meaningful improvements in pruritus (itchy skin), hives, body surface area and erythema from baseline as early as five minutes after dosing. In the second quarter of 2025, we initiated a Phase 2b randomized, placebo-controlled outpatient clinical trial in CSU patients, on chronic treatment regimens, who still experience flares or exacerbations. The interim analysis population was fully enrolled as of May 2026. The timing of data collection in our Phase 2b trial is dependent on patients experiencing and documenting multiple qualifying flare episodes treated with placebo and varying doses of intranasal epinephrine. We currently expect to report interim Phase 2b data in the first quarter of 2027. Since our inception in 2015 as ARS Pharmaceuticals, Inc., we have devoted substantially all of our efforts to commercialization activities for neffy in the U.S., pre-commercial activities, conducting product development and clinical trials, developing and protecting intellectual property, organizing and staffing the Company, business planning, raising capital, building infrastructure, and providing general and administrative support for these operations. We have funded our operations primarily with proceeds from net product sales, debt, licensing, supply and distribution arrangements with our commercialization partners, issuance of common stock, the merger with Silverback Therapeutics, Inc. (“Silverback”) in November 2022 (the “Merger”), and the private placement of convertible preferred stock. As of June 30, 2026, we had cash, cash equivalents, and short-term investments of $143.8 million. We have incurred net losses in most years since our inception. Net loss for the six months ended June 30, 2026 and 2025 was $123.0 million and $78.8 million, respectively. As of June 30, 2026, we had an accumulated deficit of $417.6 million. Until we consistently generate positive net income, if ever, our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing of our clinical trials, our expenditures on other development activities, the cost for regulatory filings, expenses for commercial activities to establish, maintain and enhance sales, marketing and distribution capabilities for neffy, the timing and volume of our product sales, and our ability to earn potential royalties and regulatory and commercial milestones under our license and collaboration arrangements. Until such time, if ever, that we can generate substantial product revenue, we may finance our operations through our existing cash, cash equivalents, short-term investments, equity offerings, debt financings and other capital sources which may include collaborations, strategic alliances, marketing, distribution or licensing arrangements or other arrangements with third parties. However, we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. In addition, any future debt agreements may limit our ability to enter into certain debt financings without the consent of the lenders thereunder. On September 29, 2025, we entered into a Credit Agreement (the “Credit Agreement”) with RA Capital Agency Services, LLC (as the “Administrative Agent”) and affiliates of OMERS Administration Corporation and RA Capital Management, L.P. as lenders (the “Lenders”), which provides for an aggregate principal amount of up to $250.0 million of term loans from the Lenders to us (the “Credit Facility”). Subject to limited exceptions, we are prohibited from incurring additional indebtedness and entering into certain strategic and licensing transactions without the prior written consent of the Lenders pursuant to the Credit Agreement. Our failure to raise capital or enter into such other arrangements when needed would have a negative impact on our financial condition and may require us to delay or reduce our marketing and sales efforts, or delay, reduce or terminate our research and development programs or other operations, or grant rights to develop and market products or product candidates that we would otherwise prefer to develop and market ourselves. We do not own or operate manufacturing facilities. We currently rely on third-party manufacturers and suppliers for neffy and our intranasal epinephrine technology product candidates, and we expect to continue to do so to meet our nonclinical, clinical and commercial activities. Our third-party manufacturers are required to manufacture our product under cGMP requirements and other applicable laws and regulations. Financial Overview Revenues We have recognized net product sales in the United States since the commercial launch of neffy in September 2024. We have signed collaboration and license agreements for neffy for all geographies outside of the United States. The terms of these agreements may include payment to us of one or more of the following: non-refundable, upfront license fees; clinical, regulatory, and/or commercial milestone payments; clinical development fees; and royalties or a transfer price on net sales of licensed products if neffy receives marketing approval in these regions. We expect product revenues to fluctuate in future periods as we continue with the commercial launch of neffy. We expect revenues under collaboration agreements to fluctuate in future periods based on our ability to meet various regulatory milestones, and contingent on successfully obtaining regulatory approval for neffy in the licensed regions, commercial milestones, royalties or transfer price earned from our partner’s net sales and the supply of commercial product as set forth in the agreements described earlier. 40 Cost of Goods Sold Cost of goods sold consists primarily of direct and indirect costs to manufacture neffy for commercial sale, including third-party manufacturing costs, raw material and component costs, excess or obsolete inventory adjustment charges, inventory write offs, packaging services, freight, storage costs, distribution fees, amortization of capitalized in-licensed costs, royalties on product sales, salaries and related expenses for personnel, and stock-based compensation. Prior to the FDA approval of neffy in August 2024, certain inventory components were purchased to manufacture neffy and recorded as research and development expenses, resulting in zero-cost inventory components. As a result, the cost of goods sold related to neffy will initially reflect a lower average per unit cost of materials, as previously expensed inventory components are consumed in commercial production and sold to customers. As of June 30, 2026, we had $3.1 million in zero-cost inventory components remaining, and no zero-cost inventory components were determined to be obsolete. Based on our current forecast, we expect zero-cost inventory components to be substantially consumed in commercial production by the second half of 2026. The time over which the zero-cost inventory components are included in cost of goods sold will depend on several factors, but primarily the timing of future neffy sales. Research and Development Expenses To date, our research and development expenses have been related primarily to clinical development, process development, and manufacturing costs of neffy and our intranasal epinephrine technology product candidates. Research and development expenses are recognized as incurred and payments made prior to the receipt of goods or services to be used in research and development are capitalized until the goods or services are received. Research and development expenses include: •external research and development expenses incurred under agreements with contract research organizations (“CROs”), investigative sites and consultants and other third-party organizations to conduct our clinical studies and development activities; •costs related to manufacturing neffy and our intranasal epinephrine technology product candidates for clinical trials and process validation studies, including fees paid to contract manufacturing organizations (“CMOs”) and other third-party manufacturers; •costs related to compliance with regulatory requirements and regulatory filings; •indirect expenses including insurance and facility-related expenses; and •salaries, payroll taxes, benefits and stock-based compensation charges for personnel engaged in research and development efforts. Our external research and development expenses for neffy and our intranasal epinephrine technology product candidates consist primarily of fees, materials and other costs paid to CROs, CMOs, consultant and contractors. Our clinical, regulatory, manufacturing, and non-clinical development costs for the periods presented below reflect an allocation of expenses associated with personnel costs, stock-based compensation expense, and indirect costs incurred in support of overall research and development, such as facilities-related costs. We cannot determine with certainty the timing of initiation, the duration or the completion costs of current or future clinical trials and the manufacturing costs of neffy and our intranasal epinephrine technology product candidates due to the inherently unpredictable nature of clinical development and manufacturing activities. Clinical development and manufacturing timelines, the probability of success and development costs can differ materially from expectations. In addition, we cannot forecast to what degree our licensing, supply and distribution arrangements would affect our development plans and capital requirements. 41 The duration, costs and timing of clinical trials and development of neffy and our intranasal epinephrine technology product candidates for the treatment of additional indications will depend on a variety of factors that include: •per patient trial costs; •the number of patients that participate in the trials; •the number of sites included in the trials; •the countries in which the trials are conducted; •tariffs and international trade relations; •the length of time required to enroll eligible patients; •the number of doses that patients receive; •the drop-out or discontinuation rates of patients; •potential additional safety monitoring or other studies requested by regulatory agencies; •the efficacy and safety profile of neffy and our current and future intranasal epinephrine technology product candidates; •the cost to seek regulatory approvals for our intranasal epinephrine technology product candidates in additional indications and any product candidates that successfully complete clinical trials; •the timing, receipt, and terms of any approvals from applicable regulatory authorities including the FDA and non-U.S. regulators; •maintaining a continued acceptable safety profile of neffy and our intranasal epinephrine technology product candidates; •establishing or maintaining commercial manufacturing capabilities or making arrangements with third-party manufacturers in order to ensure that we or our third-party manufacturers are able to make product successfully; •significant and changing government regulation and regulatory guidance; •the impact of any business interruptions to our operations or to those of the third parties with whom we work; and •the extent to which we establish additional strategic collaborations or other arrangements. A change in the outcome of any of these variables with respect to the development of neffy and our intranasal epinephrine technology product candidates could significantly change the costs and timing associated with the development of that future product candidate. The process of conducting the necessary clinical research and manufacturing to obtain regulatory approval is costly and time-consuming. The actual probability of success for any future candidates may be affected by a variety of factors. Further, a number of factors, including those outside of our control, could adversely impact the timing and duration of our product’s or any future candidates’ development, which could increase our research and development expenses. Selling, General and Administrative Expenses Selling, general and administrative expenses consist primarily of marketing-related expenses and salaries, benefits, stock-based compensation for personnel in executive, finance, business development, sales and marketing, and other corporate administrative functions. Selling, general and administrative expenses also include legal fees incurred relating to corporate and patent matters, professional fees incurred for accounting, auditing, tax and administrative consulting services, and insurance costs. Selling, general and administrative expenses have increased due to the establishment of our sales force, the development and commencement of our marketing campaigns and initiatives, the co-promotion agreement between us and ALK-Abelló, Inc., which was entered into in May 2025 and subsequently amended in October 2025 and March 2026 (the “ALK Co-Promotion Agreement”), the hiring of additional sales and marketing personnel to support full commercialization activities, and the addition of infrastructure and programs to support commercialization activities. While broad consumer advertising has supported our commercialization efforts to date, we are also taking action to align resources with our strategic priorities and support more focused marketing. We expect to continue to incur audit, legal, regulatory and tax-related services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance premiums, board of director fees, investor relations costs associated with operating as a public company, patent costs and defense, and general and administrative personnel. 42 Other Income, net Other income, net consists primarily of interest income from our cash, cash equivalents, and short-term investments, interest expense on our outstanding debt, and net amortization and accretion associated with our short-term investments. Results of Operations Comparison of the Three Months Ended June 30, 2026 and 2025 The following table summarizes our results of operations for the three months ended June 30, 2026 and 2025 (in thousands, except percentages): Three Months Ended June 30, Dollar % 2026 2025 Change Change Revenue: Product revenue, net $ 26,210 $ 12,800 $ 13,410 105 % Revenue under collaboration agreements 57 2,594 (2,537 ) (98 %) Revenue under supply agreements 7,391 323 7,068 * Total revenue 33,658 15,717 17,941 114 % Operating expenses: Cost of goods sold 12,846 4,984 7,862 158 % Research and development(1) 4,698 4,035 663 16 % Selling, general and administrative(1) 77,579 54,312 23,267 43 % Total operating expenses 95,123 63,331 31,792 50 % Loss from operations (61,465 ) (47,614 ) (13,851 ) 29 % Other income (expense), net: Interest income 1,605 2,731 (1,126 ) (41 %) Interest expense (2,479 ) — (2,479 ) 100 % Total other (expense) income, net (874 ) 2,731 (3,605 ) (132 %) Net loss $ (62,339 ) $ (44,883 ) $ (17,456 ) 39 % _____________ * Not meaningful (1) Includes stock-based compensation expense as follows (in thousands): Three Months Ended June 30, 2026 2025 Research and development $ 928 $ 664 Selling, general and administrative 11,467 4,707 Total $ 12,395 $ 5,371 Revenues. Revenue for the three months ended June 30, 2026 was $33.7 million, as compared to $15.7 million for the three months ended June 30, 2025. Revenue for the three months ended June 30, 2026 includes $26.2 million in net product revenues for sales of neffy in the United States, $7.4 million in revenue under supply agreements with partners, and less than $0.1 million in revenue for the performance of development and regulatory services under the collaboration, license and distribution agreement we entered into with ALK-Abelló A/S (the “ALK Collaboration Agreement”). Revenue for the three months ended June 30, 2025 includes $12.8 million in net product revenues for sales of neffy, $2.6 million in revenue for the achievement of the milestone for the first commercial sale of EURneffy and for the performance of development and regulatory services performance obligations under the ALK Collaboration Agreement, and $0.3 million in revenue under supply agreements. The increase in revenue was primarily driven by higher net product revenues resulting from increased unit sales volumes of neffy in the United States. Cost of Goods Sold. Cost of goods sold for the three months ended June 30, 2026 was $12.8 million, as compared to $5.0 million for the three months ended June 30, 2025. The increase of $7.9 million was primarily driven by direct and indirect product costs incurred in connection with U.S. product sales and the commercial launches of neffy in the U.K., EU, Japan, Australia, and China following regulatory approval in each market. Our global expansion also resulted in a corresponding increase in royalty expense on worldwide net product revenue. Research and Development Expenses. Research and development expenses for the three months ended June 30, 2026 were $4.7 million, as compared to $4.0 million for the three months ended June 30, 2025. The increase of $0.7 million was primarily due to increases in clinical trial costs of $0.7 million, consulting fees of $0.5 million, and other research and development expenses of $0.2 million, partially offset by a decrease in product development-related expense of $0.7 million. 43 The following table summarizes our research and development expenses for the three months ended June 30, 2026 and 2025 (in thousands): Three Months Ended June 30, 2026 2025 Clinical and regulatory $ 2,467 $ 1,647 Manufacturing and non-clinical development 2,231 2,388 Total $ 4,698 $ 4,035 Selling, General and Administrative Expenses. Selling, general and administrative expenses for the three months ended June 30, 2026 were $77.6 million, as compared to $54.3 million for the three months ended June 30, 2025. The increase of $23.3 million was primarily due to increases in marketing-related expenses of $9.9 million, stock-based compensation expense of $6.8 million, of which $5.3 million relates to accelerated vesting of previously unvested equity awards upon the termination of a former executive officer, personnel-related expense of $3.3 million, legal fees of $2.0 million, outside services of $1.6 million, and other general operating costs of $0.8 million, partially offset by a decrease in conference and seminar expense of $1.1 million. Other (Expense) Income, Net. Other expense, net for the three months ended June 30, 2026 was $0.9 million, as compared to other income, net of $2.7 million for the three months ended June 30, 2025. The change of $3.6 million was primarily due to interest expense related to our Credit Agreement of $2.5 million and decreases in net accretion of discounts on short-term investments of $0.8 million and interest income of $0.3 million from our cash, cash equivalents, and short-term investments. Comparison of the Six Months Ended June 30, 2026 and 2025 The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025 (in thousands, except percentages): Six Months Ended June 30, Dollar % 2026 2025 Change Change Revenue: Product revenue, net $ 43,662 $ 20,563 $ 23,099 112 % Revenue under collaboration agreements 2,546 2,804 (258 ) (9 %) Revenue under supply agreements 10,131 323 9,808 * Total revenue 56,339 23,690 32,649 138 % Operating expenses: Cost of goods sold 19,132 6,078 13,054 215 % Research and development(1) 9,034 6,987 2,047 29 % Selling, general and administrative(1) 149,783 95,416 54,367 57 % Total operating expenses 177,949 108,481 69,468 64 % Loss from operations (121,610 ) (84,791 ) (36,819 ) 43 % Other income (expense), net: Interest income 3,573 5,968 (2,395 ) (40 %) Interest expense (4,920 ) — (4,920 ) 100 % Total other (expense) income, net (1,347 ) 5,968 (7,315 ) (123 %) Net loss $ (122,957 ) $ (78,823 ) $ (44,134 ) 56 % _____________ * Not meaningful (1) Includes stock-based compensation expense as follows (in thousands): Six Months Ended June 30, 2026 2025 Research and development $ 1,852 $ 1,327 Selling, general and administrative 17,966 9,342 Total $ 19,818 $ 10,669 44 Revenues. Revenue for the six months ended June 30, 2026 was $56.3 million, as compared to $23.7 million for the six months ended June 30, 2025. Revenue for the six months ended June 30, 2026 includes $43.7 million in net product revenues for sales of neffy in the United States, $10.1 million in revenue under supply agreements with partners, and $2.5 million in revenue for the achievement of the regulatory milestone and performance of development and regulatory services under the ALK Collaboration Agreement. Revenue for the six months ended June 30, 2025 includes $20.6 million in net product revenues for sales of neffy, $2.8 million in revenue for the achievement of the milestone for the first commercial sale of EURneffy and for the performance of development and regulatory services performance obligations under the ALK Collaboration Agreement, and $0.3 million in revenue under supply agreements. The increase in revenue was primarily driven by higher net product revenues resulting from increased unit sales volumes of neffy in the United States. Cost of Goods Sold. Cost of goods sold for the six months ended June 30, 2026 was $19.1 million, as compared to $6.1 million for the six months ended June 30, 2025. The increase of $13.1 million was primarily driven by direct and indirect product costs incurred in connection with U.S. product sales and the commercial launches of neffy in the U.K., EU, Japan, Australia, and China following regulatory approval in each market. Our global expansion also resulted in a corresponding increase in royalty expense on worldwide net product revenue. Research and Development Expenses. Research and development expenses for the six months ended June 30, 2026 were $9.0 million, as compared to $7.0 million for the six months ended June 30, 2025. The increase of $2.0 million was primarily due to increases in clinical trial costs of $1.0 million, personnel-related expenses, including stock-based compensation expense, of $0.9 million, and consulting fees of $0.5 million, partially offset by a decrease in other research and development expenses of $0.4 million. The following table summarizes our research and development expenses for the six months ended June 30, 2026 and 2025 (in thousands): Six Months Ended June 30, 2026 2025 Clinical and regulatory $ 4,665 $ 3,233 Manufacturing and non-clinical development 4,369 3,754 Total $ 9,034 $ 6,987 Selling, General and Administrative Expenses. Selling, general and administrative expenses for the six months ended June 30, 2026 were $149.8 million, as compared to $95.4 million for the six months ended June 30, 2025. The increase of $54.4 million was primarily due to increases in marketing-related expenses of $36.3 million, stock-based compensation expense of $8.6 million, of which $5.3 million relates to accelerated vesting of previously unvested equity awards upon the termination of a former executive officer, personnel-related expense of $3.6 million, legal fees of $3.1 million, outside services of $2.5 million, and other general operating costs of $0.9 million, partially offset by a decrease in conference and seminar expense of $0.6 million. Other (Expense) Income, Net. Other expense, net for the six months ended June 30, 2026 was $1.3 million, as compared to other income, net of $6.0 million for the six months ended June 30, 2025. The change of $7.3 million was primarily due to interest expense related to our Credit Agreement of $4.9 million and decreases in net accretion of discounts on short-term investments of $1.9 million and interest income of $0.5 million from our cash, cash equivalents, and short-term investments. Liquidity and Capital Resources Sources of Liquidity and Capital Since our inception, we have incurred significant operating losses and negative cash flows from our operations. We have funded our operations to date primarily with proceeds from net product sales, debt, licensing, supply and distribution arrangements, issuance of common stock, the Merger with Silverback, and private placement of convertible preferred stock. As of June 30, 2026, we had cash, cash equivalents, and short-term investments of $143.8 million. 45 Cash flows The following table summarizes our cash flows for the six months ended June 30, 2026 and 2025 (in thousands): Six Months Ended June 30, 2026 2025 Net cash and cash equivalents used in operating activities $ (105,873 ) $ (80,334 ) Net cash and cash equivalents provided by investing activities 69,363 77,635 Net cash and cash equivalents provided by financing activities 3,356 3,422 Net (decrease) increase in cash and cash equivalents $ (33,154 ) $ 723 Operating Activities During the six months ended June 30, 2026, net cash used in operating activities was $105.9 million. This consisted primarily of a net loss of $123.0 million, an increase in our operating assets and operating liabilities of $25.0 million and $20.8 million, respectively, and non-cash charges of $21.3 million. The increase in our operating assets was primarily attributable to increases in accounts receivable of $21.5 million and prepaid expenses and other assets of $3.2 million. The increase in our operating liabilities was primarily attributable to an increase in accounts payable and accrued expenses of $20.8 million. The non-cash charges consisted primarily of non-cash stock-based compensation of $19.8 million, other non-cash items of $2.3 million, and depreciation and amortization expense of $0.8 million, partially offset by $1.6 million in net accretion of discounts on short-term investments. While cash used in operating activities reflects our ongoing investment in the commercialization of neffy, we remain focused on allocating resources efficiently and managing operating expenditures in support of our strategic priorities. During the six months ended June 30, 2025, net cash used in operating activities was $80.3 million. This consisted primarily of a net loss of $78.8 million, an increase in our operating assets and operating liabilities of $28.3 million and $16.8 million, respectively, and non-cash charges of $10.0 million. The increase in our operating assets was due to increases in accounts receivable of $14.4 million, inventories of $13.2 million, and prepaid expenses and other assets of $0.7 million. The increase in our operating liabilities was primarily attributable to an increase in accounts payable and accrued expenses of $17.0 million, partially offset by a decrease in contract liability of $0.2 million. The non-cash charges consisted primarily of non-cash stock-based compensation of $10.7 million, establishment of an inventory reserve of $2.2 million, and depreciation and amortization expense of $0.6 million, partially offset by $3.4 million in net accretion of discounts on short-term investments. Investing Activities During the six months ended June 30, 2026, cash and cash equivalents provided by investing activities was $69.4 million. This consisted of proceeds from maturities and sales of short-term investments of $104.0 million, partially offset by purchases of short-term investments of $34.6 million. During the six months ended June 30, 2025, the cash and cash equivalents provided by investing activities was $77.6 million. This consisted of maturities of short-term investments of $143.5 million, partially offset by purchases of short-term investments of $65.7 million and purchases of property and equipment of $0.1 million. Financing Activities During the six months ended June 30, 2026, the $3.4 million of cash and cash equivalents provided by financing activities was attributable to proceeds from milestone obligations met and royalties earned under license agreements of $2.5 million and proceeds from stock option exercises and issuance of common stock under the employee stock purchase plan of $0.8 million. During the six months ended June 30, 2025, the $3.4 million of cash and cash equivalents provided by financing activities was attributable to proceeds from stock option exercises and issuance of common stock under the employee stock purchase plan. Term Loans On September 29, 2025 (the “Closing Date”), we entered into the Credit Agreement with the Administrative Agent and the Lenders, which provides for an aggregate principal amount up to $250.0 million of term loans (the “Term Loans”) from the Lenders to us, including an initial tranche of $100.0 million under Term A Loan funded on the Closing Date, $25.0 million under Term B Loan that will be made available during the period commencing on the six-month anniversary of the Closing Date and ending no later than the one-year anniversary of the Closing Date, up to $25.0 million under Term C Loan will be made available at our election during the period commencing on and including the Closing Date and ending no later than the two-year anniversary of the Closing Date, subject to the satisfaction of a certain revenue requirement, and up to $100.0 million under Term D Loan, subject to the consent of the Lenders. The Term Loans will mature on the five-year anniversary of the Closing Date. The Credit Facility enhances our liquidity position and provides additional financial flexibility, subject to the satisfaction of certain customary conditions for future tranches and revenue-based requirements for the third tranche. 46 Future Funding Requirements Based on our current operating plan, we believe that our existing cash, cash equivalents, short-term investments, revenues from product sales, cash proceeds from collaboration and out-licensing agreements, and additional borrowings on our Term Loans will be sufficient to meet our anticipated cash requirements until we achieve cash-flow break-even. In particular, we expect these resources will allow us to fund commercial manufacturing and sales and marketing activities, general operating activities and working capital requirements, and proof of concept clinical trials of neffy for additional indications. However, our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and actual results could vary materially. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. Additionally, the process of testing product candidates in clinical trials is costly, and the timing of progress and expenses in these trials is uncertain. Our future funding requirements will depend on many factors, including: •revenue received from commercial sales of neffy; •the timing and amount of any milestone and royalty payments under the ALK Collaboration Agreement, ALK Co-Promotion Agreement, collaboration and distribution agreement with Pediatrix Therapeutics, Inc., license agreement with Aegis Therapeutics, LLC, collaboration and license agreement with Alfresa Pharma Corporation, termination agreement with Recordati Ireland, Ltd., license and distribution agreement with Seqirus Pty Ltd., and license agreement with a licensor; •the scope, progress, results and costs of researching and developing our intranasal epinephrine technology for additional indications; •the scope and costs of clinical and commercial manufacturing of neffy and our intranasal epinephrine technology product candidates; •the timing of, and the costs involved in, obtaining marketing approvals for our intranasal epinephrine technology for additional indications; •the number of additional indications for our intranasal epinephrine technology that we may pursue and their development requirements; •the costs of commercialization activities for neffy and our intranasal epinephrine technology product candidates, to the extent such costs are not the responsibility of any collaborators, including the costs and timing of building and maintaining product sales, marketing, distribution and manufacturing capabilities; •the extent to which we in-license or acquire rights to other products, product candidates, or technologies; •our headcount growth and associated costs as we expand our employee headcount and building and maintaining a commercial infrastructure; •our ability to service our current credit facility under the Credit Agreement and access, if and when needed, additional amounts of principal provided for under the Credit Agreement; •the costs of preparing, filing, and prosecuting patent applications, maintaining and protecting our intellectual property rights, including enforcing and defending intellectual property related claims; and •the costs of operating as a public company. Until such time, if ever, as we can generate substantial product revenues to support our cost structure, we expect to finance our cash needs through a combination of our existing cash, cash equivalents, short-term investments, equity offerings, debt financings and other capital sources which may include collaborations, strategic alliances, marketing, distribution or licensing arrangements or other arrangements with third parties. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. In addition, our current or future debt agreements may limit our ability to incur additional debt. Subject to limited exceptions, we are prohibited from incurring additional indebtedness and entering into certain strategic and licensing transactions without the prior written consent of the Lenders pursuant to the Credit Agreement. If we raise funds through additional collaborations, or other similar arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, development programs or product candidates or grant licenses on terms that may not be favorable to us and/or may reduce the value of our common stock. 47 Our ability to raise additional funds may be adversely impacted by macroeconomic factors that may result in worsening global economic conditions and disruptions to and volatility in the global credit and financial markets, including due to tariffs, trade wars, inflation, high interest rates, recessionary concerns, recessions, bank failures, geopolitical conflicts, and general economic uncertainty. Because of the numerous risks and uncertainties associated with product development and commercialization, we cannot predict the timing or amount of increased expenses and cannot assure you that we will generate profits or positive cash flows from operating activities in the future. Future Contractual Cash Obligations The remaining unconditional purchase obligations related to the supply of raw materials totaled $55.6 million as of June 30, 2026. Our remaining obligations by year are as follows: 2026 ($9.4 million), 2027 ($11.8 million), 2028 ($13.8 million), and $2.9 million per year thereafter through 2035. Under the ALK Co-Promotion Agreement, the remaining obligation totaled $28.3 million as of June 30, 2026. Our remaining obligations by year are as follows: 2026 ($4.3 million), 2027 ($14.6 million), 2028 ($5.8 million), and 2029 ($3.6 million). In addition to the base fee, ALK U.S will be eligible to receive performance-based payments from us. Future performance-based payment amounts are indeterminate since they depend on future revenues, which are uncertain. In August 2024, we entered into a corporate sponsorship agreement with Food Allergy Research and Education, Inc., which was subsequently amended in May 2025. Our remaining obligations under this agreement totaled $3.0 million as of June 30, 2026. Our remaining obligations by year are as follows: 2026 ($2.0 million) and 2027 ($1.0 million). Under the Credit Agreement, the outstanding principal of $100.0 million as of June 30, 2026 is due upon maturity on September 29, 2030. Estimated interest payments are calculated based on the outstanding principal, the applicable interest rate and expected timing of scheduled payments as of June 30, 2026. As of June 30, 2026, based on the interest rate in effect at such date, estimated remaining interest payments are $39.8 million, and our estimated remaining interest payments by year are as follows: 2026 ($4.7 million), 2027 ($9.4 million), 2028 ($9.4 million), 2029 ($9.4 million), and 2030 ($6.9 million). Under the Aegis Agreement, remaining payment obligations to OrbiMed are contingent upon our achievement of certain commercial milestones and totaled $9.0 million as of June 30, 2026. We are also required to make royalty payments to OrbiMed based on a mid-single-digit percentage of net product sales. Future royalty payment amounts are indeterminate since they depend on future revenues, which are uncertain. In February 2023, we entered into a termination agreement (the “Recordati Termination Agreement”) with Recordati Ireland, Ltd. (“Recordati”) to reacquire the rights to neffy in Europe and certain European Free Trade Association, Russia/the Commonwealth of Independent States, Middle East and African countries (the “Recordati Territory”). Under the Recordati Termination Agreement, we are required to make royalty payments to Recordati of up to €5.0 million in the aggregate from sales of neffy in the Recordati Territory, of which up to €4.4 million (approximately $5.0 million in U.S. dollars) remain outstanding as of June 30, 2026. Future royalty payment amounts are indeterminate since they depend on future revenues, which are uncertain. In July 2026, we entered into a license agreement (the “License Agreement”) pursuant to which we obtained exclusive worldwide rights to certain intellectual property. Under the License Agreement, we paid an upfront payment of $12.5 million. We may also be required to make future milestone payments. In addition, we may be required to pay tiered royalties on net sales of licensed products, subject to certain reductions, as specified in the License Agreement. Future milestone and royalty payments are contingent upon the occurrence of specified contractual events and, accordingly, the timing and amount of such payments are uncertain. We enter into contracts in the normal course of business with third-party contract organizations and vendors for clinical studies, manufacturing and other services and products. These contracts generally provide for termination after a notice period. As of June 30, 2026, we have not recognized any reserves related to uncertain tax positions and had no accrued interest or penalties related to uncertain tax positions. 48 Critical Accounting Estimates Our management’s discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our financial statements. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognized under collaboration agreements and accruals for variable consideration of product revenue. We base our estimates on historical experience, known trends and events, and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values 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 material changes to our critical accounting policies or estimates. Our critical accounting policies and estimates are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in our Annual Report on Form 10-K filed with the SEC on March 9, 2026 and under the heading “Use of Estimates” in Note 2 – Summary of Significant Accounting Policies to our unaudited condensed consolidated financial statements appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q. Recent Accounting Pronouncements See Note 2 – Summary of Significant Accounting Policies to our unaudited condensed consolidated financial statements appearing in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information about recent accounting pronouncements, the timing of their adoption, and our assessment, if any, of their potential impact on our financial condition and results of operations.