We are exposed to market risks in the ordinary course of our business, primarily related to interest rate sensitivities and the volatility of our common stock price. Interest rate risk As of June 30, 2026, we had cash, cash equivalents, and restricted cash of $61.3 million, which consisted of bank deposits and money market funds, and also had marketable securities of $103.4 million. The primary objective of our investment activities is to preserve capital to fund our operations while earning a low-risk return. Because our marketable securities are short-term in duration, we believe that our exposure to interest rate risk is not significant, and a hypothetical 10% change in market interest rates during any of the periods presented would not have had a significant impact on the total value of our portfolio. As of June 30, 2026, we had no debt outstanding that is subject to interest rate variability. Market capitalization and common stock price sensitivity We agreed to make a success payment to Cobalt based on our market capitalization payable in cash or stock, and success payments to Harvard based on increases in the per share fair market value of our common stock, payable in cash. As of June 30, 2026, the estimated aggregate fair value of the success payment liabilities was $24.5 million. For the three and six months ended June 30, 2026, we recorded expenses of $7.6 million and $5.2 million, respectively, related to the aggregate change in the estimated fair value of our success payment liabilities. Changes in our market capitalization and the fair value of our common stock as of each balance sheet date may have a relatively large change in the estimated valuation of the success payment liabilities and resulting expense or gain. For example, for the Cobalt Success Payment, keeping all other variables constant, a hypothetical 20% increase in our market capitalization as of June 30, 2026 from $1.0 billion to $1.3 billion would have increased the expense recorded in the three months ended June 30, 2026 by $6.1 million to $13.3 million. A hypothetical 20% decrease in our market capitalization from $1.0 billion to $0.8 billion would have decreased the expense recorded in the three months ended June 30, 2026 by $5.5 million to $1.7 million. For the Harvard Success Payments, keeping all other variables constant, a hypothetical 20% increase in our common stock price as of June 30, 2026 from $3.49 per share to $4.19 per share would have increased the expense recorded in the three months ended June 30, 2026 by $0.4 million to $0.8 million. A hypothetical 20% decrease in the common stock price from $3.49 per share to $2.79 per share would have decreased the expense recorded in the three months ended June 30, 2026 by $0.4 million to an immaterial gain. Foreign currency sensitivity We are not currently exposed to significant market risk related to changes in foreign currency exchange rates; however, we do contract with vendors that are located outside of the United States and may be subject to fluctuations in foreign currency rates. We do not believe we will experience material impacts from such foreign currency sensitivity. We may enter into additional contracts with vendors located outside of the United States in the future, which may increase our foreign currency exchange risk. Effects of inflation Inflation generally affects us by increasing our cost of labor and laboratory consumables. We believe that inflation has not had a material effect on our financial statements. 37