Financial Overview

Research and Development Expenses

• Research and development expenses decreased $9.9 million to $12.6 million for the three months ended January 31, 2025 compared to $22.5 million in the same period in the prior fiscal year.
• The decrease was due to decreases in spending on sebetralstat of $6.9 million, personnel costs of $1.0 million, and other R&D activities of $2.0 million.

• Expenses for the sebetralstat program decreased primarily due to the Phase 3 KONFIDENT trial completing in February 2024.
• Personnel expenses will remain at or slightly below current levels as the company prioritizes commercial launch efforts.
• Other costs decreased primarily due to decreased spending on preclinical activities and a transition to recognizing expense associated with sebetralstat pre-commercial awareness within General & Administrative.

General and Administrative Expenses

• General and administrative expenses increased by $19.7 million primarily due to increases in personnel costs, commercial expenses, sebetralstat awareness, professional fees, and other administrative expenses.
• Expenses are expected to continue at or above current levels as the company continues to expand to support the growth and planned commercialization of sebetralstat.

Other Income (Expense), net

• Other income decreased $5.4 million primarily due to an increase in net interest expense, a decrease in foreign currency exchange rate gains, and a decrease in income from research and development tax credits.

Liquidity and Capital Resources

• The company has funded operations primarily through the issuance of capital stock, pre-funded warrants, and royalty financing.
• Working capital, primarily cash and marketable securities, is anticipated to fund operations for at least the next twelve months.
• Key financing events in fiscal 2025 include:
  • $150.1 million in net proceeds from a February 2024 equity offering
  • $51.3 million in net proceeds from a November 2024 equity offering
  • $4.7 million in net proceeds from a November 2024 private placement
  • $100.0 million upfront payment from a November 2024 royalty purchase agreement

Cash Flows

• Net cash used in operating activities was $112.5 million for the nine months ended January 31, 2025.
• Net cash provided by investing activities was $94.4 million, primarily from sales and maturities of marketable securities.
• Net cash provided by financing activities was $155.1 million, primarily from the royalty purchase agreement and equity offerings.

Outlook

• The company currently anticipates having sufficient funding to operate for at least the next twelve months based on its operating plans and existing capital resources.
• Future funding requirements will depend on the pace and results of preclinical/clinical development, commercial sales growth, and other activities.
• The company expects to continue spending significantly on research and development as it advances its product candidates, particularly sebetralstat.