Liquidity	6 Months Ended
Dec. 31, 2025
Liquidity
Liquidity	Note 2 — Liquidity The Company is in the clinical stage and has not yet generated any revenues. For the six months ended December 31, 2025, the Company incurred a net loss of $40.9 million and net cash used in operating activities amounted to $37.8 million. For the fiscal year ended June 30, 2025, the Company incurred a net loss of $74.4 million and net cash used in operating activities amounted to $69.1 million. As of December 31, 2025, the Company had an accumulated deficit of $444.8 million, and the Company’s capital resources consist of cash and cash equivalents of $11.9 million and short-term investments in marketable debt securities of $121.0 million. As of December 31, 2025, the Company has total liabilities of $10.6 million, including current liabilities of $9.5 million. As discussed in Note 5, the Company is subject to license agreements that provide for future contractual payments upon achievement of various milestone events. Pursuant to the XOMA License Agreement (as defined below), a $25.0 million milestone payment will be due upon regulatory approval of ersodetug by any regulatory authority. The commitment to pay the $25.0 million for regulatory approval of ersodetug is not expected to be recognized as a liability within the next 12 months. Due to uncertainties in the timing associated with clinical trial activities and regulatory approvals, there is even greater uncertainty in forecasting the timing of future clinical and regulatory milestone payments to XOMA that may be required during the fiscal year ending June 30, 2027 and thereafter. As discussed in Note 15, management approved a reduction in workforce on December 11, 2025 that resulted in the termination of employment of 29 employees on December 15, 2025. The Company accrued approximately $1.5 million of one-time severance benefits in December 2025. The $1.5 million was paid in full to the affected employees in January 2026 and no remaining liability related to the one-time severance benefits remain at the issuance date of the unaudited condensed consolidated financial statements. Management believes the Company’s cash and cash equivalents and investments in marketable debt securities will be adequate to meet the Company’s contractual obligations and carry out ongoing clinical trials and other planned activities for at least 12 months from the issuance date of the unaudited condensed consolidated financial statements as of December 31, 2025.

Liquidity

6 Months Ended

Dec. 31, 2025

Note 2 — Liquidity

The Company is in the clinical stage and has not yet generated any revenues. For the six months ended December 31, 2025, the Company incurred a net loss of $40.9 million and net cash used in operating activities amounted to $37.8 million. For the fiscal year ended June 30, 2025, the Company incurred a net loss of $74.4 million and net cash used in operating activities amounted to $69.1 million. As of December 31, 2025, the Company had an accumulated deficit of $444.8 million, and the Company’s capital resources consist of cash and cash equivalents of $11.9 million and short-term investments in marketable debt securities of $121.0 million.

As of December 31, 2025, the Company has total liabilities of $10.6 million, including current liabilities of $9.5 million. As discussed in Note 5, the Company is subject to license agreements that provide for future contractual payments upon achievement of various milestone events. Pursuant to the XOMA License Agreement (as defined below), a $25.0 million milestone payment will be due upon regulatory approval of ersodetug by any regulatory authority. The commitment to pay the $25.0 million for regulatory approval of ersodetug is not expected to be recognized as a liability within the next 12 months. Due to uncertainties in the timing associated with clinical trial activities and regulatory approvals, there is even greater uncertainty in forecasting the timing of future clinical and regulatory milestone payments to XOMA that may be required during the fiscal year ending June 30, 2027 and thereafter.

As discussed in Note 15, management approved a reduction in workforce on December 11, 2025 that resulted in the termination of employment of 29 employees on December 15, 2025. The Company accrued approximately $1.5 million of one-time severance benefits in December 2025. The $1.5 million was paid in full to the affected employees in January 2026 and no remaining liability related to the one-time severance benefits remain at the issuance date of the unaudited condensed consolidated financial statements.

Management believes the Company’s cash and cash equivalents and investments in marketable debt securities will be adequate to meet the Company’s contractual obligations and carry out ongoing clinical trials and other planned activities for at least 12 months from the issuance date of the unaudited condensed consolidated financial statements as of December 31, 2025.