Financial Performance Overview

Results of Operations

The company’s financial results for the three and six months ended June 30, 2026 and 2025 are summarized as follows:

Three Months Ended June 30

• Research and development expenses increased from $1,040,000 in Q2 2025 to $1,955,000 in Q2 2026, primarily due to higher costs for the HT-001 and HT-VA projects.
• General and administrative expenses increased from $1,160,000 in Q2 2025 to $1,879,000 in Q2 2026, mainly driven by higher stock-based compensation and professional fees.
• Net loss increased from $2,199,000 in Q2 2025 to $3,835,000 in Q2 2026.

Six Months Ended June 30

• Research and development expenses increased from $2,998,000 in H1 2025 to $3,474,000 in H1 2026, primarily due to higher costs for the HT-001 project.
• General and administrative expenses increased from $2,677,000 in H1 2025 to $3,009,000 in H1 2026, mainly driven by higher stock-based compensation.
• Net loss increased from $5,675,000 in H1 2025 to $6,527,000 in H1 2026.

The increases in R&D and G&A expenses reflect the company’s continued investment in developing its product pipeline and supporting its operations as a public company.

Liquidity and Capital Resources

As of June 30, 2026, the company had $7,892,000 in cash and cash equivalents, working capital of $7,197,000, and an accumulated deficit of $79,406,000. The company has funded its operations primarily through equity and debt financing to date.

Key liquidity and capital highlights:

• The company used $6,019,000 in net cash for operating activities in the first half of 2026, up from $5,161,000 in the prior year period.
• In the first half of 2026, the company raised $5,847,000 in net proceeds from at-the-market (ATM) stock offerings and $1,669,000 from a private placement of common stock and warrants.
• From July 1 to August 13, 2026, the company raised an additional $1,938,593 in net proceeds from the ATM program.
• The company believes its existing cash as of June 30, 2026 will enable it to fund operations for at least the next 12 months.
• Additional financing will be needed to fund the company’s future research, development and operational activities.

Outlook and Analysis

The company’s financial results reflect its continued focus on advancing its research and development pipeline, particularly the HT-001 program. While R&D and G&A expenses have increased, the company has been able to raise additional capital through equity financing to support these activities.

Key strengths:

• Diversified R&D pipeline with multiple product candidates in development
• Successful execution of equity financing strategies to fund operations
• Experienced management team

Key risks and weaknesses:

• Significant accumulated losses and ongoing need for external financing
• Heavy reliance on the success of the HT-001 program
• Limited revenue generation as products are still in development

Looking ahead, the company will need to continue executing on its R&D initiatives while carefully managing its cash burn. Successful advancement of the pipeline, particularly HT-001, will be critical to the company’s long-term prospects. Additional capital raises will likely be required to fund the company’s growth. Overall, the financial results demonstrate progress, but also highlight the challenges of being a pre-revenue, clinical-stage biopharmaceutical company.