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Cardiff Oncology (NASDAQ: CRDF) cuts R&D spend but flags going concern risk

(Moderate)
(Neutral)
Form Type
10-Q

Rhea-AI Filing Summary

Cardiff Oncology, Inc. reported continued operating losses while progressing its lead PLK1 inhibitor, onvansertib, through Phase 2 development in RAS-mutated metastatic colorectal cancer and other investigator-initiated trials. For the quarter ended June 30, 2026, royalty revenue was $104,000 and net loss was $9.2 million, compared with $13.9 million a year earlier, as research and development expenses fell to $5.9 million from $11.6 million due to trial completions and reduced preclinical work.

For the first six months of 2026, net loss was $21.6 million and operating cash outflows were $24.1 million. As of June 30, 2026, Cardiff held $34.5 million in cash, cash equivalents and short-term investments and disclosed that this is not sufficient to meet funding requirements for at least 12 months after issuance, leading management to conclude there is substantial doubt about its ability to continue as a going concern. Subsequent to quarter-end, the company raised $10.1 million in gross proceeds via a registered direct offering of common stock and warrants. Cardiff also highlighted ongoing litigation with its onvansertib licensor NMS regarding alleged termination of the license agreement, noting that an adverse outcome could materially impact its business.

Positive

  • Research and development expenses cut by $9.4 million year-to-date to $12.7 million, largely from completed trials and narrowed preclinical work, which lowers cash burn while the company prepares a Phase 3 registrational program in RAS-mutated metastatic colorectal cancer.
  • New financing adds $10.1 million gross proceeds through a July 2026 registered direct offering of common stock and warrants, supplementing the June 30, 2026 cash, cash equivalents and short-term investments balance of $34.5 million and supporting near-term development plans.

Negative

  • Going concern warning: with $34.5 million in cash, cash equivalents and short-term investments and projected funding only into the third quarter of 2027, management concluded there is substantial doubt about the company’s ability to continue as a going concern.
  • Core PLK1 license under litigation challenge: dispute with Nerviano Medical Sciences over alleged termination of the onvansertib license could, if NMS prevails, result in loss of key rights and have a material adverse effect on business and prospects.
  • High cash burn persists despite cost reductions, with net cash used in operating activities of $24.1 million in the first six months of 2026 and cumulative deficit increasing to $451.6 million as of June 30, 2026.
  • Rising general and administrative costs: selling, general and administrative expenses increased by $2.6 million year-to-date to $9.9 million, driven by severance costs and legal fees related to the NMS intellectual property dispute.

Filing Explained

Existing holders face dilution from 8,571,429 investor shares, 721,649 insider shares, and warrants for the same amounts in the completed financing.

Cardiff Oncology completed the July 14 registered direct offering, covering 8,571,429 investor shares and 721,649 insider shares, each with warrants for the same number of shares; this increases dilution exposure for existing common holders.

The warrants are not immediately exercisable: exercise begins on the later of six months after issuance or the date an authorized-share increase is accepted by Delaware after stockholder approval. The company must file a proxy within 45 days after closing and hold additional meetings every 60 days if approval is not obtained.

The NMS license dispute remains unresolved. The company’s preliminary-injunction motion was fully briefed and awaiting decision, while NMS filed counterclaims and the company filed an amended complaint on July 17, 2026.

If NMS’s termination is upheld, the company says it would lose rights integral to onvansertib development; it has recorded no accrual because a loss is not considered probable, and it cannot estimate a potential loss amount.

Cash, cash equivalents and short-term investments $34.5 million Balance as of June 30, 2026
Net loss Q2 2026 $9.2 million Three months ended June 30, 2026
Net loss H1 2026 $21.6 million Six months ended June 30, 2026
R&D expense H1 2026 $12.7 million Six months ended June 30, 2026; down from $22.1 million in 2025
SG&A expense H1 2026 $9.9 million Six months ended June 30, 2026; up from $7.3 million in 2025
Operating cash used H1 2026 $24.1 million Net cash used in operating activities for six months ended June 30, 2026
Registered direct offering proceeds $10.1 million Gross proceeds from July 14, 2026 common stock and warrant sale
Common shares outstanding 77,795,249 shares Common stock issued and outstanding as of August 6, 2026
going concern financial
"there exists a substantial doubt about the Company's ability to continue as a going concern"
Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.
PLK1 inhibition medical
"advancing innovative cancer treatments focused on Polo-like Kinase 1 (“PLK1”) inhibition"
PLK1 inhibition means blocking the activity of the enzyme Polo‑like kinase 1, a protein that helps cells divide. For investors, it signals a drug approach aimed at slowing or stopping fast‑growing tumors by disrupting the cell’s “division machinery,” but it also raises safety and trial‑success questions because the same process is important in healthy tissues; clinical results and side‑effect profiles drive the investment impact.
Phase 2 trial medical
"onvansertib, is a highly specific, oral PLK1 inhibitor currently being evaluated in a Phase 2 trial"
A phase 2 trial is an intermediate-stage clinical study that tests whether a new treatment works and is reasonably safe in a group of patients who have the condition it targets. Think of it as a field test of a prototype product: it checks real-world effectiveness and side effects on a modest number of users to decide whether the treatment should move to larger, definitive testing. Investors watch phase 2 results because positive outcomes can sharply increase the likelihood of regulatory approval and future sales, while failures often halt development.
registered direct offering financial
"completed a registered direct offering that generated gross proceeds of approximately $10.1 million"
A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.
Blinded Independent Central Review medical
"PFS hazard ratio ("HR") of 0.55 ... by Blinded Independent Central Review ("BICR")"
Blinded independent central review is a quality-control step in clinical trials where outside medical experts, who do not know which patients received the experimental therapy, re-examine key measurements (like scans or lab results) to prevent bias. Think of it as neutral referees watching game footage without knowing the teams, which gives investors greater confidence that the trial results are fair, more reliable for regulators, and less likely to be overturned or disputed.
objective response rate medical
"Trial endpoints include objective response rate ("ORR"), progression-free survival"
The objective response rate (ORR) is the percentage of patients in a clinical trial whose tumors measurably shrink or disappear according to preset rules. Investors use it as a quick, objective signal of a drug’s ability to produce a clear treatment effect—like counting how many plants visibly respond after applying a new fertilizer—and higher ORR can improve odds of regulatory approval, commercial success, and company valuation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Cardiff Oncology (CRDF) perform financially in Q2 2026?

Cardiff Oncology reported a Q2 2026 net loss of $9.2 million on royalty revenue of $104,000, versus a $13.9 million loss a year earlier. The improvement mainly reflected lower research and development spending as several trials completed and preclinical activities were reduced.

What is Cardiff Oncology’s (CRDF) cash runway and going concern status?

As of June 30, 2026, Cardiff held $34.5 million in cash, cash equivalents and short-term investments and expects this to fund operations into Q3 2027. Management concluded there is substantial doubt about its ability to continue as a going concern without additional financing or cost reductions.

What major litigation risk does Cardiff Oncology (CRDF) face regarding onvansertib?

Cardiff disclosed ongoing litigation with Nerviano Medical Sciences over alleged termination of the onvansertib license agreement. Both parties have filed claims and counterclaims. The company states that an adverse court ruling could cause loss of license rights and materially affect its business and financial condition.

How is Cardiff Oncology (CRDF) funding its clinical programs after Q2 2026?

Following Q2 2026, Cardiff completed a registered direct offering on July 14, 2026, selling 8,571,429 common shares and 721,649 insider shares with accompanying warrants for $10.1 million in gross proceeds, supplementing its existing cash and investment balance to support ongoing development.

What progress is Cardiff Oncology (CRDF) making with onvansertib in colorectal cancer?

Cardiff is running the CRDF-004 Phase 2 trial evaluating onvansertib plus FOLFIRI/bevacizumab in first-line RAS-mutated metastatic colorectal cancer. A 30 mg onvansertib arm showed higher objective response rates and favorable progression-free survival trends, and will inform a planned global Phase 3 trial.

Why did Cardiff Oncology’s (CRDF) R&D expenses fall sharply in 2026?

Research and development expenses declined to $12.7 million for the first half of 2026 from $22.1 million a year earlier, primarily due to completion of clinical trials, fewer patients remaining on treatment in the Phase 2 mCRC trial, and reduced preclinical activities while focusing resources on the registrational program.
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Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2026

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

COMMISSION FILE NUMBER 001-35558

CARDIFF ONCOLOGY, INC.

(Exact Name of registrant as specified in its charter)

 

Delaware

 

27-2004382

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

11055 Flintkote Avenue, San Diego, California

 

92121

(Address of principal executive offices)

 

(Zip Code)

 

 

 

(858) 952-7570

(Registrant’s telephone number, including area code)

 

Title of each class:

 

Trading Symbol(s)

 

Name of each exchange on which registered:

Common Stock

 

CRDF

 

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐

 

Accelerated filer ☐

 

Non-accelerated filer ☒

 

 

Smaller reporting company

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

 

As of August 6, 2026, the issuer had 77,795,249 shares of Common Stock issued and outstanding.

 

 

 

 


Table of Contents

CARDIFF ONCOLOGY, INC.

Table of Contents

 

 

 

Page

PART I

FINANCIAL INFORMATION

3

 

 

 

Item 1.

Financial Statements (unaudited)

3

 

 

 

 

Condensed Balance Sheets

3

 

 

 

 

Condensed Statements of Operations

4

 

 

 

 

Condensed Statements of Comprehensive Loss

5

 

 

 

 

Condensed Statements of Stockholders’ Equity

6

 

 

 

 

Condensed Statements of Cash Flows

8

 

 

 

 

Notes to Condensed Financial Statements

9

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

23

 

 

 

Item 4.

Controls and Procedures

23

 

 

 

PART II

OTHER INFORMATION

24

 

 

 

Item 1.

Legal Proceedings

24

 

 

 

Item 1A.

Risk Factors

24

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

25

 

 

 

Item 3.

Defaults Upon Senior Securities

25

 

 

 

Item 4.

Mine Safety Disclosures

25

 

 

 

Item 5.

Other Information

25

 

 

 

Item 6.

Exhibits

26

 

 

 

SIGNATURES

27

 

2


Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CARDIFF ONCOLOGY, INC.

CONDENSED BALANCE SHEETS

(in thousands, except par value)

(Unaudited)

 

 

June 30,
2026

 

 

December 31,
2025

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

9,197

 

 

$

17,470

 

Short-term investments

 

 

25,323

 

 

 

40,834

 

Accounts receivable and unbilled receivable

 

 

189

 

 

 

182

 

Prepaid expenses and other current assets

 

 

883

 

 

 

1,642

 

Total current assets

 

 

35,592

 

 

 

60,128

 

Property and equipment, net

 

 

450

 

 

 

578

 

Operating lease right-of-use assets

 

 

360

 

 

 

629

 

Other assets

 

 

927

 

 

 

549

 

Total Assets

 

$

37,329

 

 

$

61,884

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

3,986

 

 

$

8,087

 

Accrued liabilities

 

 

6,354

 

 

 

7,577

 

Operating lease liabilities

 

 

457

 

 

 

730

 

Total current liabilities

 

 

10,797

 

 

 

16,394

 

Operating lease liabilities, net of current portion

 

 

 

 

 

102

 

Total Liabilities

 

 

10,797

 

 

 

16,496

 

 

 

 

 

 

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value, 20,000 shares
   authorized;
277 designated as Series A Convertible Preferred Stock;
   
61 shares outstanding at June 30, 2026 and December 31, 2025
   with liquidation preference of $
1,129 and $1,117 at
   June 30, 2026 and December 31, 2025, respectively

 

 

 

 

 

 

Common stock, $0.0001 par value, 150,000 shares authorized; 68,502 and
   
68,305 shares issued and outstanding at June 30, 2026
   and December 31, 2025, respectively

 

 

7

 

 

 

7

 

Additional paid-in capital

 

 

478,194

 

 

 

475,361

 

Accumulated other comprehensive gain (loss)

 

 

(62

)

 

 

50

 

Accumulated deficit

 

 

(451,607

)

 

 

(430,030

)

Total stockholders’ equity

 

 

26,532

 

 

 

45,388

 

Total liabilities and stockholders’ equity

 

$

37,329

 

 

$

61,884

 

 

See accompanying notes to the unaudited condensed financial statements.

3


Table of Contents

CARDIFF ONCOLOGY, INC.

CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Royalty revenues

 

$

104

 

 

$

121

 

 

$

145

 

 

$

230

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

5,915

 

 

 

11,580

 

 

 

12,680

 

 

 

22,057

 

Selling, general and administrative

 

 

3,804

 

 

 

3,318

 

 

 

9,930

 

 

 

7,332

 

Total operating expenses

 

 

9,719

 

 

 

14,898

 

 

 

22,610

 

 

 

29,389

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(9,615

)

 

 

(14,777

)

 

 

(22,465

)

 

 

(29,159

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

382

 

 

 

835

 

 

 

888

 

 

 

1,776

 

Other income (expense), net

 

 

1

 

 

 

(1

)

 

 

 

 

 

6

 

Total other income (expense), net

 

 

383

 

 

 

834

 

 

 

888

 

 

 

1,782

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(9,232

)

 

 

(13,943

)

 

 

(21,577

)

 

 

(27,377

)

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividend payable on Series A
   Convertible Preferred Stock

 

 

(6

)

 

 

(6

)

 

 

(12

)

 

 

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders

 

$

(9,238

)

 

$

(13,949

)

 

$

(21,589

)

 

$

(27,389

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share — basic and diluted

 

$

(0.14

)

 

$

(0.21

)

 

$

(0.32

)

 

$

(0.41

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding — basic
   and diluted

 

 

68,397

 

 

 

66,526

 

 

 

68,373

 

 

 

66,525

 

 

See accompanying notes to the unaudited condensed financial statements.

4


Table of Contents

 

CARDIFF ONCOLOGY, INC.

CONDENSED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(Unaudited)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net loss

 

$

(9,232

)

 

$

(13,943

)

 

$

(21,577

)

 

$

(27,377

)

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on securities available-
   for-sale

 

 

(13

)

 

 

(10

)

 

 

(112

)

 

 

(17

)

Total comprehensive loss

 

 

(9,245

)

 

 

(13,953

)

 

 

(21,689

)

 

 

(27,394

)

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividend payable on Series A
   Convertible Preferred Stock

 

 

(6

)

 

 

(6

)

 

 

(12

)

 

 

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss attributable to common
   stockholders

 

$

(9,251

)

 

$

(13,959

)

 

$

(21,701

)

 

$

(27,406

)

 

See accompanying notes to the unaudited condensed financial statements.

5


Table of Contents

 

CARDIFF ONCOLOGY, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(Unaudited)

 

 

Preferred
Stock
Shares

 

 

Preferred
Stock
Amount

 

 

Common
Stock
Shares

 

 

Common
Stock
Amount

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Other
Comprehensive
Gain (Loss)

 

 

Accumulated
Deficit

 

 

Total
Stockholders’
Equity

 

Balance, December 31, 2025

 

 

61

 

 

$

 

 

 

68,305

 

 

$

7

 

 

$

475,361

 

 

$

50

 

 

$

(430,030

)

 

$

45,388

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,660

 

 

 

 

 

 

 

 

 

1,660

 

Issuance of common stock upon
   exercise of stock options

 

 

 

 

 

 

 

 

65

 

 

 

 

 

 

105

 

 

 

 

 

 

 

 

 

105

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(99

)

 

 

 

 

 

(99

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,345

)

 

 

(12,345

)

Balance, March 31, 2026

 

 

61

 

 

 

 

 

 

68,370

 

 

 

7

 

 

 

477,126

 

 

 

(49

)

 

 

(442,375

)

 

 

34,709

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

920

 

 

 

 

 

 

 

 

 

920

 

Issuance of common stock, net
   of expenses
(1)

 

 

 

 

 

 

 

 

132

 

 

 

 

 

 

148

 

 

 

 

 

 

 

 

 

148

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13

)

 

 

 

 

 

(13

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,232

)

 

 

(9,232

)

Balance, June 30, 2026

 

 

61

 

 

$

 

 

 

68,502

 

 

$

7

 

 

$

478,194

 

 

$

(62

)

 

$

(451,607

)

 

$

26,532

 

 

(1) Net of expenses of $64,000

 

6


Table of Contents

 

CARDIFF ONCOLOGY, INC.

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(Unaudited)

 

 

Preferred
Stock
Shares

 

 

Preferred
Stock
Amount

 

 

Common
Stock
Shares

 

 

Common
Stock
Amount

 

 

Additional
Paid-In
Capital

 

 

Accumulated
Other
Comprehensive
Gain

 

 

Accumulated
Deficit

 

 

Total
Stockholders’
Equity

 

Balance, December 31, 2024

 

 

61

 

 

$

 

 

 

66,524

 

 

$

7

 

 

$

467,087

 

 

$

34

 

 

$

(384,179

)

 

$

82,949

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,365

 

 

 

 

 

 

 

 

 

1,365

 

Issuance of common stock upon
   exercise of stock options

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

3

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

(7

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,434

)

 

 

(13,434

)

Balance, March 31, 2025

 

 

61

 

 

 

 

 

 

66,526

 

 

 

7

 

 

 

468,455

 

 

 

27

 

 

 

(397,613

)

 

 

70,876

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,683

 

 

 

 

 

 

 

 

 

1,683

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10

)

 

 

 

 

 

(10

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,943

)

 

 

(13,943

)

Balance, June 30, 2025

 

 

61

 

 

$

 

 

 

66,526

 

 

$

7

 

 

$

470,138

 

 

$

17

 

 

$

(411,556

)

 

$

58,606

 

 

See accompanying notes to the unaudited condensed financial statements.

7


Table of Contents

 

CARDIFF ONCOLOGY, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

Six Months Ended June 30,

 

 

2026

 

 

2025

 

Operating activities

 

 

 

 

 

 

Net loss

 

$

(21,577

)

 

$

(27,377

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation

 

 

174

 

 

 

187

 

Stock-based compensation expense

 

 

2,580

 

 

 

3,048

 

Amortization of right-of-use assets

 

 

269

 

 

 

270

 

Accretion of discounts on short-term investments, net

 

 

(157

)

 

 

(438

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable and unbilled receivable

 

 

(7

)

 

 

247

 

Prepaid expenses and other current assets

 

 

742

 

 

 

388

 

Other assets

 

 

(378

)

 

 

(332

)

Accounts payable and accrued liabilities

 

 

(5,324

)

 

 

3,223

 

Operating lease liabilities

 

 

(375

)

 

 

(338

)

Net cash used in operating activities

 

 

(24,053

)

 

 

(21,122

)

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

Capital expenditures

 

 

(44

)

 

 

(26

)

Maturities of short-term investments

 

 

27,354

 

 

 

35,020

 

Purchases of short-term investments

 

 

(13,872

)

 

 

(55,797

)

Sales of short-term investments

 

 

2,088

 

 

 

1,236

 

Net cash provided by (used in) investing activities

 

 

15,526

 

 

 

(19,567

)

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

Proceeds from sale of common stock

 

 

212

 

 

 

 

Payment of issuance costs

 

 

(64

)

 

 

 

Proceeds from exercise of options

 

 

106

 

 

 

3

 

Net cash provided by financing activities

 

 

254

 

 

 

3

 

Net change in cash and cash equivalents

 

 

(8,273

)

 

 

(40,686

)

Cash and cash equivalents—Beginning of period

 

 

17,470

 

 

 

51,470

 

Cash and cash equivalents—End of period

 

$

9,197

 

 

$

10,784

 

 

 

 

 

 

 

 

Supplementary disclosure of cash flow activity:

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities:

 

 

 

 

 

 

Acquisition of property and equipment included in accounts payable and accrued
   liabilities

 

$

2

 

 

$

6

 

 

See accompanying notes to the unaudited condensed financial statements.

8


Table of Contents

 

CARDIFF ONCOLOGY, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Basis of Presentation

Business Organization and Overview

Cardiff Oncology, Inc. (“Cardiff Oncology” or the “Company”) headquartered in San Diego, California, is a clinical-stage biotechnology company advancing innovative cancer treatments focused on Polo-like Kinase 1 (“PLK1”) inhibition, a validated oncology target with practice-changing potential. The Company’s lead asset, onvansertib, is a highly specific, oral PLK1 inhibitor currently being evaluated in a Phase 2 trial for first-line treatment of RAS-mutated metastatic colorectal cancer (“mCRC”), addressing a large, underserved patient population with high unmet need. Onvansertib is also under investigation in other PLK1-driven cancers through investigator-initiated trials such as metastatic pancreatic ductal adenocarcinoma (“mPDAC”), small cell lung cancer (“SCLC”), metastatic triple negative breast cancer (“mTNBC”), and chronic myelomonocytic leukemia ("CMML"). These programs and the Company’s broader development strategy are designed to target tumor vulnerabilities and deliver improved clinical outcomes for patients with cancer. The Company's common stock is listed on the Nasdaq Capital Market under the ticker symbol "CRDF".

Basis of Presentation

The accompanying unaudited interim condensed financial statements of Cardiff Oncology have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations. The unaudited interim condensed financial statements reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the Company’s financial position and the results of its operations and cash flows for the periods presented. The unaudited condensed balance sheet at December 31, 2025, has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by GAAP for annual financial statements. The operating results presented in these unaudited interim condensed financial statements are not necessarily indicative of the results that may be expected for any future periods. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto for the year ended December 31, 2025, included in the Company’s annual report on Form 10-K filed with the SEC on February 24, 2026.

Going Concern Uncertainty

The Company has incurred net losses since its inception and has negative operating cash flows. As of June 30, 2026, the Company had $34.5 million in cash, cash equivalents and short-term investments, which is not sufficient to meet its funding requirements for at least the next 12 months following the filing of this Form 10-Q. Management has performed an analysis and concluded that there exists a substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

The Company's ability to continue as a going concern is dependent upon its ability to obtain additional equity or debt financing, obtain government grants or reduce expenditures. The Company cannot be certain that additional funding will be available on acceptable terms, or at all. To the extent that the Company can raise additional funds by issuing equity securities, the Company’s stockholders may experience additional dilution.

 

2. Summary of Significant Accounting Policies

During the six months ended June 30, 2026, there have been no changes to the Company’s significant accounting policies as described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

Segment Reporting

The Company operates in one business segment in the United States, which includes all activities related to the development of novel therapies across a range of cancers. The Company's chief operating decision-maker is its chief executive officer. The chief operating decision-maker allocates resources based on available cash, cash equivalents and short-term investments. The primary

9


Table of Contents

 

measure of performance reviewed by the chief operating decision-maker is net loss which is compared to the annual budget and quarterly forecasts.

All financial information required for segment reporting that is provided to the chief operating decision-maker is contained within the financial statements and notes to financial statements, with the exception of the disaggregated amounts contained in the table below:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Research and development:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and staff costs

 

$

1,847

 

 

$

2,134

 

 

$

3,591

 

 

$

4,103

 

Stock-based compensation

 

 

470

 

 

 

672

 

 

 

788

 

 

 

1,187

 

Clinical trials, outside services, and lab supplies

 

 

3,162

 

 

 

8,306

 

 

 

7,422

 

 

 

15,803

 

Facilities and other

 

 

436

 

 

 

468

 

 

 

879

 

 

 

964

 

Total research and development

 

$

5,915

 

 

$

11,580

 

 

$

12,680

 

 

$

22,057

 

Selling, general and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and staff costs

 

$

915

 

 

$

849

 

 

$

3,844

 

 

$

1,775

 

Stock-based compensation

 

 

450

 

 

 

1,011

 

 

 

1,792

 

 

 

1,861

 

Outside services and professional fees

 

 

2,009

 

 

 

1,062

 

 

 

3,438

 

 

 

2,860

 

Facilities and other

 

 

430

 

 

 

396

 

 

 

856

 

 

 

836

 

Total selling, general and administrative

 

$

3,804

 

 

$

3,318

 

 

$

9,930

 

 

$

7,332

 

Net Loss Per Share

Basic and diluted net loss per common share is determined by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding during the period. Preferred dividends are included in net loss attributable to common stockholders in the computation of basic and diluted earnings per share. For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the potentially dilutive securities would be antidilutive.

The following table sets forth the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because their effect was anti-dilutive:

 

 

 

June 30,

 

 

 

2026

 

 

2025

 

Options to purchase Common Stock

 

 

11,788,535

 

 

 

11,701,432

 

Warrants to purchase Common Stock

 

 

432

 

 

 

2,787,714

 

Series A Convertible Preferred Stock

 

 

877

 

 

 

877

 

 

 

11,789,844

 

 

 

14,490,023

 

Investment Securities

Investment transactions are recorded on the trade date, and purchases of investments that are settled after the balance sheet date are included in accrued liabilities. All investments have been classified as “available-for-sale” and are carried at fair value as determined based upon quoted market prices or pricing models for similar securities at period end. Investments with contractual maturities less than 12 months at the balance sheet date are considered short-term investments. Investments with contractual maturities beyond one year are also classified as short-term due to the Company’s ability to liquidate the investment for use in operations within the next 12 months.

Realized gains and losses on investment securities are included in earnings and are derived using the specific identification method for determining the cost of securities sold. The Company has not realized any significant gains or losses on sales of available-for-sale investment securities during any of the periods presented. As all the Company’s investment holdings are in the form of debt securities or certificates of deposit, unrealized gains and losses that are determined to be temporary in nature are reported as a component of accumulated other comprehensive loss. A decline in the fair value of any security below cost that is deemed other than temporary results in a charge to earnings and the establishment of a new cost basis for the security. Interest income is recognized when earned and is included in interest income, net, as are the amortization of purchase premiums and accretion of purchase discounts on investment securities.

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Recent Accounting Pronouncement Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, to enhance the transparency of certain expense disclosures. The update requires disclosure of specific expense categories in the notes to the financial statements at interim and annual reporting periods. The update requires disaggregated information about certain prescribed expense categories underlying any relevant income statement expense caption. The amendments in this update are effective for public entities for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. The amendments may be adopted either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this guidance on its financial statement disclosures.

3. Fair Value Measurements

The following table presents the Company’s assets and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of June 30, 2026, and December 31, 2025:

 

 

Fair Value Measurements at
June 30, 2026

 

(in thousands)

 

Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1)

 

 

Significant Other Observable Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

$

6,647

 

 

$

 

 

$

 

 

$

6,647

 

Total included in cash and cash equivalents

 

 

6,647

 

 

 

 

 

 

 

 

 

6,647

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposit

 

 

 

 

 

1,248

 

 

 

 

 

 

1,248

 

Corporate debt securities

 

 

 

 

 

13,892

 

 

 

 

 

 

13,892

 

Commercial paper

 

 

 

 

 

1,581

 

 

 

 

 

 

1,581

 

U.S. government agencies

 

 

 

 

 

644

 

 

 

 

 

 

644

 

U.S. treasury securities

 

 

7,958

 

 

 

 

 

 

 

 

 

7,958

 

Total available for sale investments

 

 

7,958

 

 

 

17,365

 

 

 

 

 

 

25,323

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets measured at fair value on a recurring basis

 

$

14,605

 

 

$

17,365

 

 

$

 

 

$

31,970

 

 

 

Fair Value Measurements at
December 31, 2025

 

(in thousands)

 

Quoted Prices in Active Markets for Identical Assets and Liabilities
(Level 1)

 

 

Significant Other Observable Inputs
(Level 2)

 

 

Significant Unobservable Inputs
(Level 3)

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market fund

 

$

17,169

 

 

$

 

 

$

 

 

$

17,169

 

Total included in cash and cash equivalents

 

 

17,169

 

 

 

 

 

 

 

 

 

17,169

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale investments:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposit

 

 

 

 

 

143

 

 

 

 

 

 

143

 

Corporate debt securities

 

 

 

 

 

28,669

 

 

 

 

 

 

28,669

 

Commercial paper

 

 

 

 

 

413

 

 

 

 

 

 

413

 

U.S. government agencies

 

 

 

 

 

2,876

 

 

 

 

 

 

2,876

 

U.S. treasury securities

 

 

8,733

 

 

 

 

 

 

 

 

 

8,733

 

Total available for sale investments

 

 

8,733

 

 

 

32,101

 

 

 

 

 

 

40,834

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets measured at fair value on a recurring basis

 

$

25,902

 

 

$

32,101

 

 

$

 

 

$

58,003

 

 

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The Company’s policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 3 during the six months ended June 30, 2026, and 2025.

4. Supplementary Balance Sheet Information

Investments available for sale

Investments available for sale consisted of the following:

 

 

 

As of June 30, 2026

 

(in thousands)

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Market Value

 

Maturity less than 1 year:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposit

 

$

1,248

 

 

$

 

 

$

 

 

$

1,248

 

Corporate debt securities

 

 

8,321

 

 

 

2

 

 

 

(10

)

 

 

8,313

 

Commercial paper

 

 

1,581

 

 

 

 

 

 

 

 

 

1,581

 

U.S. government agencies

 

 

644

 

 

 

 

 

 

 

 

 

644

 

U.S. treasury securities

 

 

4,397

 

 

 

 

 

 

(1

)

 

 

4,396

 

Total maturity less than 1 year

 

 

16,191

 

 

 

2

 

 

 

(11

)

 

 

16,182

 

Maturity 1 to 2 years:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

5,606

 

 

 

 

 

 

(27

)

 

 

5,579

 

U.S. treasury securities

 

 

3,588

 

 

 

 

 

 

(26

)

 

 

3,562

 

Total maturity 1 to 2 years

 

 

9,194

 

 

 

 

 

 

(53

)

 

 

9,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total short-term investments

 

$

25,385

 

 

$

2

 

 

$

(64

)

 

$

25,323

 

 

 

As of December 31, 2025

 

(in thousands)

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Market Value

 

Maturity less than 1 year:

 

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposit

 

$

143

 

 

$

 

 

$

 

 

$

143

 

Corporate debt securities

 

 

23,699

 

 

 

18

 

 

 

(2

)

 

 

23,715

 

Commercial paper

 

 

413

 

 

 

 

 

 

 

 

 

413

 

U.S. government agencies

 

 

2,872

 

 

 

4

 

 

 

 

 

 

2,876

 

U.S. treasury securities

 

 

4,798

 

 

 

2

 

 

 

 

 

 

4,800

 

Total maturity less than 1 year

 

 

31,925

 

 

 

24

 

 

 

(2

)

 

 

31,947

 

Maturity 1 to 2 years:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

4,940

 

 

 

15

 

 

 

(1

)

 

 

4,954

 

U.S. treasury securities

 

 

3,919

 

 

 

14

 

 

 

 

 

 

3,933

 

Total maturity 1 to 2 years

 

 

8,859

 

 

 

29

 

 

 

(1

)

 

 

8,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total short-term investments

 

$

40,784

 

 

$

53

 

 

$

(3

)

 

$

40,834

 

 

The Company periodically reviews its portfolio of debt securities to determine if any investment is impaired due to credit loss or other potential valuation concerns. For debt securities where the fair value of the investment is less than the amortized cost basis, we have assessed at the individual security level for various quantitative factors including, but not limited to, the nature of the investments, changes in credit ratings, interest rate fluctuations, industry analyst reports, and the severity of impairment. Unrealized losses in investments available for sale debt securities at June 30, 2026, were substantially due to changes in interest rates, not due to increased credit risks associated with specific securities. Accordingly, the Company has not recorded an allowance for credit losses. It is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

There were no unrealized loss positions greater than one year as of June 30, 2026 and December 31, 2025.

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Property and equipment

Property and equipment consisted of the following:

 

(in thousands)

 

As of June 30,
2026

 

 

As of December 31,
2025

 

Furniture and office equipment

 

$

750

 

 

$

1,051

 

Leasehold improvements

 

 

2,568

 

 

 

2,568

 

Laboratory equipment

 

 

1,426

 

 

 

1,426

 

Property and equipment, gross

 

 

4,744

 

 

 

5,045

 

Less—accumulated depreciation

 

 

(4,294

)

 

 

(4,467

)

Property and equipment, net

 

$

450

 

 

$

578

 

 

Depreciation expense for property and equipment recognized in operating results are as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Total depreciation expense

 

$

87

 

 

$

94

 

 

$

174

 

 

$

187

 

Accrued Liabilities

Accrued liabilities consisted of the following:

 

(in thousands)

 

As of June 30,
2026

 

 

As of December 31,
2025

 

Clinical trials

 

$

2,146

 

 

$

3,805

 

Accrued compensation

 

 

3,256

 

 

 

2,430

 

Unsettled investments payable

 

 

 

 

 

744

 

Research agreements and services

 

 

331

 

 

 

311

 

Other accrued liabilities

 

 

621

 

 

 

287

 

Total accrued liabilities

 

$

6,354

 

 

$

7,577

 

 

5. Stockholders’ Equity

Stock Options

Stock-based compensation expense related to Cardiff Oncology equity awards have been recognized in operating results as follows:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Included in research and development expense

 

$

470

 

 

$

672

 

 

$

788

 

 

$

1,187

 

Included in selling, general and administrative expense

 

 

450

 

 

 

1,011

 

 

 

1,792

 

 

 

1,861

 

Total stock-based compensation expense

 

$

920

 

 

$

1,683

 

 

$

2,580

 

 

$

3,048

 

 

The unrecognized compensation cost related to non-vested stock options outstanding at June 30, 2026, net of estimated forfeitures, was $7.1 million, which is expected to be recognized over a weighted-average remaining vesting period of 2.9 years. The weighted-average remaining contractual term of outstanding options as of June 30, 2026, was approximately 5.8 years. The total fair value of stock options vested during the six months ended June 30, 2026 and 2025, were $3.9 million and $3.7 million, respectively.

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The estimated fair value of stock option awards was determined on the date of grant using the Black-Scholes option valuation model with the following assumptions during the following periods indicated:

 

 

 

Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

Risk-free interest rate

 

3.67% - 4.15%

 

 

3.88% - 4.11%

 

Dividend yield

 

 

0

%

 

 

0

%

Expected volatility

 

96% - 102%

 

 

104% - 106%

 

Expected term (in years)

 

5.1 - 5.9

 

 

6.1 - 6.3

 

The weighted-average fair value per share of all options granted during the six months ended June 30, 2026 and 2025, estimated as of the grant date using the Black-Scholes option valuation model, was $1.25 and $2.99 per share, respectively.

 

A summary of stock option activity and changes in stock options outstanding is presented below:

 

 

 

Total Options

 

 

Weighted-Average
Exercise Price
Per Share

 

 

Intrinsic
Value

 

Balance outstanding, December 31, 2025

 

 

10,757,293

 

 

$

3.87

 

 

$

2,678,115

 

Granted

 

 

2,961,459

 

 

$

1.62

 

 

 

 

Exercised

 

 

(64,761

)

 

$

1.63

 

 

 

 

Forfeited

 

 

(1,513,962

)

 

$

3.32

 

 

 

 

Expired

 

 

(351,494

)

 

$

7.17

 

 

 

 

Balance outstanding, June 30, 2026

 

 

11,788,535

 

 

$

3.29

 

 

$

14,239

 

Exercisable at June 30, 2026

 

 

7,468,715

 

 

$

3.86

 

 

$

14,239

 

Vested and expected to vest at June 30, 2026

 

 

11,412,387

 

 

$

3.33

 

 

$

14,239

 

 

2021 Equity Incentive Plan

In June 2021, the Company's stockholders approved the 2021 Omnibus Equity Incentive Plan ("2021 Plan"). As of June 30, 2026, the number of authorized shares in the 2021 Plan is equal to the sum of (i) 15,150,000 shares, plus (ii) the number of shares of Common Stock reserved, but unissued under the 2014 Plan; and (iii) the number of shares of Common Stock underlying forfeited awards under the 2014 Plan. As of June 30, 2026, there were 7,514,663 shares available for issuance under the 2021 Plan.

2014 Equity Incentive Plan

Subsequent to the adoption of the 2021 Plan, no additional equity awards can be made under the terms of the 2014 Plan.

Inducement Grants

The Company issues equity awards to certain new employees as inducement grants outside of its 2021 Plan. As of June 30, 2026, an aggregate of 2,276,826 shares were issuable upon the exercise of inducement grant stock options approved by the Company.

Stock Option Modifications

The Company recorded $0.5 million of additional stock based compensation expense during the six months ended June 30, 2026 from stock option modifications. These modifications were the result of separation agreements entered into with Dr. Mark Erlander, former CEO, and James Levine, former CFO, on March 27, 2026 ("Agreement Date"). The modification date and valuation inputs were based on the Agreement Date. Dr. Erlander's stock options continued to vest through June 11, 2026, and all vested options will be exercisable until June 11, 2027. Mr. Levine's vested stock options will be exercisable until March 27, 2027. All of the additional stock based compensation expense from these modifications was recorded during the six months ended June 30, 2026.

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Warrants

A summary of warrant activity and changes in warrants outstanding, classified as equity is presented below:

 

 

 

Total Warrants

 

 

Weighted-Average Exercise Price Per Share

 

 

Weighted-Average Remaining Contractual Term

Balance outstanding, December 31, 2025

 

 

432

 

 

$

348.48

 

 

0.6 years

Balance outstanding, June 30, 2026

 

 

432

 

 

$

348.48

 

 

0.1 years

 

6. Commitments and Contingencies

Executive Agreements

Certain executive agreements provide for severance payments in case of terminations without cause or certain change of control scenarios.

Research and Development Agreements

In March 2017, the Company entered into a license agreement with Nerviano Medical Sciences S.r.l. (“NMS”) (the “Agreement”) which granted the Company development and commercialization rights to NMS-1286937, which the Company refers to as onvansertib. Terms of the agreement also provide for the Company to pay development milestones up to an aggregate of $15 million, commercial milestones, and royalties based on sales volume. These potential development milestones include: (a) dosing of the first subject in the first Phase III Clinical Trial for the first Product, a registration enabling Phase II Clinical Trial, or after completion of a Phase II Clinical Trial that is used as the basis for an NDA submission; and (b) upon filing of the first NDA or equivalent for the first product candidate. During the six months ended June 30, 2026, and 2025, no milestone or royalty payments were made.

The Company is a party to various agreements under which it licenses technology on an exclusive basis in the field of oncology therapeutics. These agreements include License fees, Royalties and Milestone payments. For the six months ended June 30, 2026, and 2025, payments have not been material. The Company also has a legacy license agreement in the field of oncology diagnostics under which royalty payments are due to the Company. These royalty payments are calculated as a percent of revenue.

Litigation

From time to time, the Company may become involved in various lawsuits and legal proceedings that arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in matters may arise from time to time that may harm the Company’s business. As of the date of this report, management believes that there are no claims against the Company, which could result in a material adverse effect on the Company’s business or financial condition, except for the following:

License Agreement

On February 24, 2026, the Company received a written notice from NMS alleging that the Company is in material breach of the Agreement because the Company did not name NMS employee Dr. Barbara Valsasina as a joint inventor on the Company’s U.S. Patent Nos. 12,144,813 and 12,263,173 (the “Cardiff Patents”) and did not agree to file a joint invention continuation patent application or, in the alternative, execute a power of attorney so NMS could do so. The Company maintains there was no breach and that the Agreement does not require the Company to name NMS employees on inventions made exclusively by the Company, or to make what the Company believes are false or inaccurate representations regarding inventorship to the U.S. Patent and Trademark Office.

On May 19, 2026, the Company filed a lawsuit against NMS disputing NMS’s allegation that the Company materially breached the Agreement by declining to name NMS employee Dr. Barbara Valsasina as a joint inventor of the Cardiff Patents. The complaint, filed in the United States District Court for the Southern District of California, seeks injunctive relief requiring NMS to continue performing under the Agreement, a declaratory judgment that the Company did not breach the Agreement, and additional relief.

On May 27, 2026, the Company was informed in writing by NMS that NMS was terminating the Agreement pursuant to Section 11.3 of the Agreement. NMS alleges that the Company materially breached the Agreement by failing to correct or give NMS a power of attorney to correct the inventorship of the Cardiff Patents to include NMS employee Dr. Barbara Valsasina as a joint inventor in breach of, inter alia, Section 10.2(c) of the Agreement. In addition, NMS alleges that the Company has failed to use Commercially

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Reasonable Efforts (as defined in the Agreement) to conduct development activities and to obtain Regulatory Approvals (as defined in the Agreement) for onvansertib in material breach of Sections 7.3, 7.5 and 7.9 of the Agreement. The Company promptly responded to NMS that the notice of termination is legally ineffective, factually unsupported and procedurally improper, and that the Company will continue to perform under the Agreement.

On June 10, 2026, the Company filed a motion for preliminary injunction requesting the District Court to enjoin NMS from purporting to terminate the Agreement and other interference. NMS opposed the motion on July 17, 2026 and the Company replied in support of the motion on July 24, 2026. The motion is fully briefed and awaiting decision. NMS answered the complaint and filed counterclaims on June 26, 2026, asserting counterclaims for correction of inventorship, declaratory judgments of joint invention and termination, breach of contract, and breach of implied covenant of good faith and fair dealing. The Company moved to dismiss all counts except for NMS’s counterclaim for a correction of inventorship on July 17, 2026. The Company also filed an amended complaint on July 17, 2026, adding additional claims for breach of contract, unjust enrichment, and unfair competition in violation of California Business & Professions Code § 17200 seeking monetary and other relief.

The outcome of litigation is inherently uncertain. There can be no assurance that the Company will prevail on any or all of its claims, that it will obtain the relief it is seeking, or that a court will agree with the Company’s legal interpretation of the Agreement or its characterization of NMS's conduct. If the court determines that NMS's termination was valid, the Company would lose the rights granted under the Agreement, which could have a material adverse effect on its business, financial condition, results of operations, and prospects. At this time, the Company has not recorded an accrual related to this matter, as a loss is not considered probable. Although an unfavorable outcome is reasonably possible, the Company cannot reasonably estimate the amount of any potential loss or range of loss, if any.

7. Subsequent Events

Registered Direct Offering

On July 14, 2026, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional investors, pursuant to which the Company agreed to sell to such investors 8,571,429 shares (the “Shares”) of common stock of the Company (the “Common Stock”) and accompanying warrants (the “Common Warrants”) to purchase up to 8,571,429 shares of Common Stock (the “Common Warrant Shares”), at a purchase price of $1.05 per share of Common Stock and accompanying Common Warrant (the “Offering”).

In addition, the Company entered into the Purchase Agreement with certain of its officers and directors (the “Insiders”), pursuant to which the Company agreed to sell to such Insiders 721,649 shares of Common Stock (the “Insider Shares”) and 721,649 accompanying Common Warrants, at a purchase price of $1.455 per Insider Share and accompanying Common Warrant. Gross proceeds from the offering were $10.1 million.

The Common Warrants have an exercise price of $1.31 per share ($1.33 for Insiders), will be exercisable beginning on the later of (i) six months after issuance or (ii) Authorized Share Increase Date (as defined below) (the “Initial Exercise Date”) and will have a term of exercise equal to five and one-half years after the Initial Exercise Date. "Authorized Share Increase Date" means the date on which an amendment to our certificate of incorporation increasing the number of authorized shares of our common stock to an amount sufficient for the exercise in full of the Common Warrants is filed with and accepted by the State of Delaware, subject to approval of such amendment by our stockholders. The Company has agreed to file a proxy statement on or prior to the date that is forty-five (45) days following the closing of this offering for the purpose of obtaining such stockholder approval, and if we do not obtain such approval at the first meeting, to call a meeting every sixty (60) days thereafter until such approval is obtained or the Common Warrants are no longer outstanding.

 

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this Quarterly Report, including statements regarding the future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions.

In addition, our business and financial performance may be affected by the factors that are discussed under “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2025, filed on February 24, 2026. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for us to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

The following discussion and analysis is qualified in its entirety by, and should be read in conjunction with, the more detailed information set forth in the financial statements and the notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management.

Overview

We are a clinical-stage biotechnology company advancing innovative cancer treatments focused on PLK1 inhibition, a validated oncology drug target with practice-changing potential. Our lead asset, onvansertib, is a highly specific, oral PLK1 inhibitor currently being evaluated in a Phase 2 trial for first-line treatment of RAS-mutated metastatic colorectal cancer ("mCRC"), addressing a large, underserved patient population with high unmet need. Onvansertib is also under investigation in other PLK1-driven cancers through investigator-initiated trials such as metastatic pancreatic ductal adenocarcinoma ("mPDAC"), small cell lung cancer ("SCLC"), and metastatic triple negative breast cancer ("mTNBC"). Additionally, onvansertib has also shown promising single agent activity in an ongoing investigator-initiated trial in chronic myelomonocytic leukemia ("CMML"). These programs and our broader development strategy are designed to target tumor vulnerabilities and deliver improved clinical outcomes in patients with cancer. Our clinical development programs incorporate tumor genomics and biomarker assays to refine patient selection and assessment of patient response to treatment.

Our Lead Drug Candidate, Onvansertib

We believe the attributes of onvansertib and its early clinical evidence of favorable safety and efficacy, with expected on-target, manageable and tolerable side effects, may prove beneficial in addressing clinical therapeutic needs across a variety of cancers. Key attributes of onvansertib include:

Highly potent and highly selective against the PLK1 enzyme (IC50 = 2nM; IC50 is the concentration for 50% inhibition), compared to prior PLK1 inhibitors that were pan-inhibitors of several PLK targets. Low or no activity of onvansertib was observed on a panel of 63 kinases (IC50>500 nM), including the PLK members PLK2 and PLK3 (IC50>10,000 nM);
Orally bioavailable, allowing for relative ease and flexibility of dosing;
Relatively short drug half-life of 24 hours, allowing for flexible dosing and scheduling that has demonstrated a favorable safety profile across multiple clinical trials.

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In vitro studies have shown synergistic effects when onvansertib was administered in combination with different cytotoxic agents including microtubule-targeting agents, topoisomerase 1 inhibitors, antimetabolites, alkylating agents, proteasome inhibitors, kinase inhibitors, PARP inhibitors, BCL-2 inhibitors, and androgen biosynthesis inhibitors.

In addition, in vivo combination studies have confirmed the positive results obtained in vitro and additive or synergistic effects on efficacy have been observed in xenograft models of onvansertib in combination with irinotecan, 5-fluorouracil ("5-FU"), abiraterone, PARP inhibitors, venetoclax, paclitaxel, and bevacizumab ("bev"). Combining onvansertib with standard of care ("SoC") cancer agents may provide opportunities for synergy with many cancer therapies.

There are ongoing clinical trials of onvansertib in select cancer indications: one trial (CRDF-004) in first-line treatment in patients with RAS-mutated mCRC, and investigator-initiated trials in first-line mPDAC, relapsed / refractory or advanced CMML as monotherapy, second-line relapsed SCLC as monotherapy, and second-line unresectable locally advanced or metastatic TNBC.

RAS-mutated mCRC Program:

CRDF-004 Randomized Clinical Trial in First-Line RAS-mutated mCRC

CRDF-004 is a Phase 2, randomized, open label multi-center clinical trial to assess the efficacy of two different doses of onvansertib (20 mg and 30 mg) in combination with FOLFIRI/bev or FOLFOX/bev, compared with FOLFIRI/bev or FOLFOX/bev SoC alone, for the treatment of mCRC in patients with a KRAS or NRAS mutation in the first-line setting. Trial endpoints include objective response rate ("ORR"), progression-free survival ("PFS") and duration of response ("DoR") together with pharmacokinetics, pharmacodynamics and safety assessments. The primary goal of the clinical trial is to select the safe and efficacious dose of onvansertib plus appropriate standard of care regimen for the Phase 3 trial based on a benefit-risk assessment of the totality of the evidence, including numerical differences between the onvansertib and SoC arms. The trial has enrolled 110 patients in the intent-to-treat ("ITT") population and is being conducted in partnership with Pfizer Ignite, an end-to-end service for biotech companies. For more information, please visit NCT06106308 at www.clinicialtrials.gov.

Data highlights from the ongoing Phase 2 trial were presented at the ASCO Meeting on June 2, 2026, using a data cut of March 18, 2026. Overall, results showed that the onvansertib 30 mg + FOLFIRI/bev dose regimen, demonstrated deep and durable tumor shrinkage, including clinically meaningful improvements in ORR and PFS compared to SoC alone, with no additive adverse events. In the ITT population, the dose selected for the registrational program, 30 mg onvansertib arm in combination with FOLFIRI/ bev achieved:

Primary endpoint of confirmed objective response rate of 72.2% (13/18), compared with 42.1% (8/19) for FOLFIRI/bev alone, a 30% improvement over SoC. The responses were deeper and more durable in the onvansertib arm.
Secondary endpoint of PFS hazard ratio ("HR") of 0.55 (95% CI: 0.15–2.09) and 0.57 (95% CI: 0.20–1.65) vs. FOLFIRI/bev by Blinded Independent Central Review ("BICR") and investigator assessment ("IA"), respectively.
Median PFS not reached in 30 mg onvansertib + FOLFIRI/bev arm, but has been reached in both SoC arms. Four patients remain on onvansertib treatment beyond 15 months, including 2 beyond 20 months.

No meaningful differences in efficacy were observed between the onvansertib + FOLFOX/bev arms and FOLFOX/bev alone.

Safety/Tolerability

Onvansertib in combination with both chemotherapy (FOLFIRI or FOLFOX)/bev regimens was well-tolerated. There were no major or unexpected toxicities observed, and no additive adverse events reported. Grade 3 or higher adverse events were infrequent, with neutropenia being the most common treatment-emergent adverse event across both the onvansertib combination and SoC arms.

The Phase 2 trial is still ongoing and as of a June 23, 2026 data cut-off, 12 patients remain on trial, with 8 patients in the onvansertib (20 or 30 mg) plus FOLFIRI/bev arms and one patient remaining on SoC.

In April 2026 we completed our End-of-Phase 2 Type B meeting with the U.S. Food and Drug Administration ("FDA"). Incorporating FDA feedback, we have designed the registrational Phase 3 trial (CRDF-005) as a global randomized, controlled trial that will evaluate the safety and efficacy of onvansertib 30 mg + FOLFIRI/bev as first-line therapy versus SoC FOLFIRI/bev in patients with RAS mutated mCRC. We expect to enroll approximately 640 patients across sites in the US, Europe and other regions. Additional details of the trial will be disclosed at the time of initiation of the trial.

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Additionally, we have initiated the process of soliciting scientific advice from the European Medicines Agency ("EMA") on our Phase 3 plans. We remain on track with the manufacturing of clinical material and also with companion diagnostic related regulatory activities as we prepare for the registrational trial.

Other Clinical Programs:

We support certain investigator-initiated trials by supplying onvansertib to academic clinicians who conduct clinical trials independently. These studies allow us to tap into the expertise of independent clinicians and academic investigators to explore new therapeutic indications or new dosage regimens at a low cost to us. By facilitating independent research, we have the opportunity to gain valuable evidence and safety data that can inform future regulatory decisions or improve our understanding of onvansertib’s efficacy. Furthermore, supporting investigator-initiated trials act as a collaborative effort that strengthens relationships with KOLs.

Phase 1b/2 Investigator-Initiated Clinical Trial in First-Line mPDAC

In February 2024, the FDA approved NALIRIFOX as a first-line treatment option for mPDAC. As a result, we are currently supporting an investigator-initiated mPDAC Phase 1b/2 trial of onvansertib in combination with first-line SoC NALIRIFOX, at the University of Kansas Medical Center. The trail has completed enrollment, and data will be disclosed by the investigator after completion of the trial. For more information, please visit NCT06736717 at www.clinicaltrials.gov.

The primary objective in this study is to determine anti-tumor activity by measuring ORR. The secondary objectives are to determine treatment safety based on toxicities in participants who have received at least one dose of onvansertib, to determine anti-tumor activity by PFS, Disease Control Rate ("DCR"), as well as Overall Survival ("OS").

Phase 2 Investigator-Initiated Clinical Trial in SCLC

A single-arm, two-stage, Phase 2 trial of onvansertib monotherapy in patients with relapsed SCLC at the University of Maryland, Baltimore completed enrollment of 15 patients in Stage 1, with the study proceeding to Stage 2 if two or more Stage 1 patients achieve an objective response. Stage 2 is designed to enroll an additional 20 patients. The primary endpoint of the trial is ORR, while key secondary endpoints include PFS and OS. For more information, please visit NCT05450965 at www.clinicialtrials.gov.

An examination of the safety data from the first six patients by the institutional review board confirmed the trial can continue to enroll as planned. Preliminary efficacy data for seven patients presented on September 26, 2023, showed one confirmed partial response (“PR”), three stable disease (“SD”) and three progressive disease (“PD”). The DCR, including PR and SD, is 57% (4 of 7 patients).

Phase 1b Investigator-Initiated Clinical Trial in mTNBC

A single-arm, phase 1b trial of onvansertib in combination with paclitaxel in patients with unresectable locally advanced or metastatic TNBC at Dana Farber Cancer Institute ("DFCI") has completed enrollment. The trial was designed to treat approximately 14-16 patients with different doses of onvansertib in combination with a fixed dose of paclitaxel to determine the maximum tolerated dose and the safety and efficacy of onvansertib in combination with paclitaxel. For more information, please visit NCT05383196 at www.clinicialtrials.gov.

 

In June 2025, the investigator presented promising data from this trial at ASCO:

Patients enrolled in the trial received a median of 3 prior lines of chemotherapy.
Onvansertib in combination with paclitaxel demonstrated 40% objective response rate by RECIST 1.1 at RP2D of 18mg/m2 (n=10), with two confirmed partial responses and two unconfirmed partial responses.
The combination of onvansertib and paclitaxel was well-tolerated and demonstrated a safe and manageable toxicity profile with myelosuppression being the most common adverse event.
These clinical data further support the potential exploration of the combination of onvansertib plus paclitaxel for the treatment of mTNBC.

 

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Phase 1 Investigator-Initiated Clinical Trial in CMML

This Phase 1 trial is designed to evaluate the safety, effectiveness, and best dose of onvansertib as a monotherapy for the treatment of patients with CMML and Myelodysplastic syndrome/myeloproliferative neoplasm ("MDS/MPN") overlap neoplasms that have come back (recurrent) or that do not respond to treatment (refractory). For more information, please visit NCT05549661 at www.clinicialtrials.gov.

 

Data presented at the American Society of Hematology ("ASH") meeting on December 8, 2025, from this ongoing Phase 1 dose-escalation trial (N=9) showed that onvansertib monotherapy was generally well-tolerated and demonstrated preliminary efficacy in approximately 40% of patients. One patient achieved an optimal marrow response at the 9 mg/m² dose and three patients achieved clinical benefit at 6 mg/m2 and 12 mg/m2. Dose expansion is currently open and recruiting at the 12 mg/m2 dose.

These findings, together with previously reported results from an investigator-sponsored trial in small cell lung cancer, support onvansertib’s single-agent activity across both hematologic and solid tumors.

Recent Updates

Appointment of Chief Executive Officer, Chief Financial Officer, and Chief Operating Officer

On April 9, 2026, we announced the appointment of Mani Mohindru, PhD, as President and Chief Executive Officer (CEO), following her time as Interim CEO. She will continue as a member of the Board of Directors. We also appointed Josh Muntner as Chief Financial Officer and Ajay Aggarwal, MD, MBA, as Chief Operating Officer, effective April 6 and April 27, respectively. Together, these appointments reflect our commitment to building an experienced leadership team to advance onvansertib and deliver on the program’s long-term potential.

Presented Preclinical Data on PLK1 Inhibitor Onvansertib in Combination with Her2-Targeted ADC at AACR Annual Meeting

On April 19, 2026, we presented new preclinical data in a poster at the American Association for Cancer Research ("AACR"). The data highlight the potential of onvansertib in combination with the HER-2 targeted antibody-drug conjugate ("ADC"), trastuzumab deruxtecan ("T-DXd"), demonstrating robust antitumor activity and the ability to overcome resistance in HER2-low breast cancer models.

Critical Accounting Estimates

Our accounting policies are described in ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS of our Annual Report on Form 10-K as of and for the year ended December 31, 2025, filed with the SEC on February 24, 2026. There have been no changes to our critical accounting estimates since December 31, 2025.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2026 and 2025

Revenues

Total revenues were $0.1 million for the three months ended June 30, 2026, as compared to $0.1 million for the prior period. Revenues are from our sales-based or usage-based royalties on other intellectual property licenses, unrelated to onvansertib. Revenue recognition of the royalty depends on the timing and overall sales activities of the licensees.

Research and Development Expenses

Research and development expenses consisted of the following:

 

 

 

Three Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

Increase
(Decrease)

 

Salaries and staff costs

 

$

1,847

 

 

$

2,134

 

 

$

(287

)

Stock-based compensation

 

 

470

 

 

 

672

 

 

 

(202

)

Clinical trials, outside services, and lab supplies

 

 

3,162

 

 

 

8,306

 

 

 

(5,144

)

Facilities and other

 

 

436

 

 

 

468

 

 

 

(32

)

Total research and development

 

$

5,915

 

 

$

11,580

 

 

$

(5,665

)

 

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Research and development expenses decreased by $5.7 million for the three months ended June 30, 2026, compared to the same period in 2025. The overall decrease of research and development expenses was related to the completion of clinical trials, as well as fewer patients still on treatment in our Phase 2 mCRC trial, and a reduction in pre-clinical activities as we focus on our upcoming Phase 3 mCRC trial.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consisted of the following:

 

 

 

Three Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

Increase
(Decrease)

 

Salaries and staff costs

 

$

915

 

 

$

849

 

 

$

66

 

Stock-based compensation

 

 

450

 

 

 

1,011

 

 

 

(561

)

Outside services and professional fees

 

 

2,009

 

 

 

1,062

 

 

 

947

 

Facilities and other

 

 

430

 

 

 

396

 

 

 

34

 

Total selling, general and administrative

 

$

3,804

 

 

$

3,318

 

 

$

486

 

 

Selling, general and administrative expenses increased by $0.5 million for the three months ended June 30, 2026, compared to the same period in 2025. The overall increase in expenses, primarily from outside services and professional fees, is primarily related to attorney costs for our intellectual property dispute with NMS. The decrease in stock-based compensation was a result of the departure of our former CEO and CFO during the first quarter of 2026, resulting in lower ongoing equity award expense.

Interest Income, Net

Interest income, net was $0.4 million for the three months ended June 30, 2026 as compared to $0.8 million for the same period of 2025. Our interest income is primarily from our short-term investment portfolios and money market accounts. The amount of interest income earned varies each period based on the balance of our accounts and interest rates.

Six Months Ended June 30, 2026 and 2025

Revenues

Total revenues were $0.1 million for the six months ended June 30, 2026, as compared to $0.2 million for the same period in 2025. Revenues are from our sales-based or usage-based royalties on other intellectual property licenses, unrelated to onvansertib. Revenue recognition of the royalty depends on the timing and overall sales activities of the licensees.

Research and Development Expenses

Research and development expenses consisted of the following:

 

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

Increase
(Decrease)

 

Salaries and staff costs

 

$

3,591

 

 

$

4,103

 

 

$

(512

)

Stock-based compensation

 

 

788

 

 

 

1,187

 

 

 

(399

)

Clinical trials, outside services, and lab supplies

 

 

7,422

 

 

 

15,803

 

 

 

(8,381

)

Facilities and other

 

 

879

 

 

 

964

 

 

 

(85

)

Total research and development

 

$

12,680

 

 

$

22,057

 

 

$

(9,377

)

 

Research and development expenses decreased by $9.4 million for the six months ended June 30, 2026, compared to the same period in 2025. The overall decrease of research and development expenses was related to the completion of clinical trials, as well as fewer patients still on treatment in our Phase 2 mCRC trial, and a reduction in pre-clinical activities as we focus on our upcoming Phase 3 mCRC trial.

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Selling, General and Administrative Expenses

Selling, general and administrative expenses consisted of the following:

 

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

 

Increase
(Decrease)

 

Salaries and staff costs

 

$

3,844

 

 

$

1,775

 

 

$

2,069

 

Stock-based compensation

 

 

1,792

 

 

 

1,861

 

 

 

(69

)

Outside services and professional fees

 

 

3,438

 

 

 

2,860

 

 

 

578

 

Facilities and other

 

 

856

 

 

 

836

 

 

 

20

 

Total selling, general and administrative

 

$

9,930

 

 

$

7,332

 

 

$

2,598

 

 

Selling, general and administrative expenses increased by $2.6 million for the six months ended June 30, 2026, compared to the same period in 2025. The overall increase in expenses was primarily from employee severance agreements recorded to salaries and staff costs within the current period. The increase in outside services and professional fees is primarily related to attorney costs for our intellectual property dispute with NMS.

Interest Income, Net

Interest income, net was $0.9 million for the six months ended June 30, 2026 as compared to $1.8 million for the same period of 2025. Our interest income is primarily from our short-term investment portfolios and money market accounts. The amount of interest income earned varies each period based on the balance of our accounts and interest rates.

 

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2026, and December 31, 2025, we had working capital of $24.8 million and $43.7 million, respectively.

Subsequent to quarter end, on July 14, 2026, we completed a registered direct offering that generated gross proceeds of approximately $10.1 million. See Note 7, Subsequent Events, for additional information.

We have incurred net losses since our inception and have negative operating cash flows. As of June 30, 2026, we had $34.5 million in cash, cash equivalents and short-term investments. Based on our current projections, we expect that our capital resources are sufficient to fund our operations into the third quarter of 2027, which is not sufficient to meet our funding requirements for at least the next 12 months following the issuance of our financial statements. Management has performed an analysis and concluded that there exists a substantial doubt about our ability to continue as a going concern, see Note 1 Business Organization and Overview - Going Concern Uncertainty to the financial statements for additional details.

Our drug development efforts are in their early stages, and we cannot make estimates of the costs or the time that our development efforts will take to complete, or the timing and amount of revenues related to the sale of our drug candidates. The risk of completion of any program is high because of the many uncertainties involved in developing new drug candidates to market, including the long duration of clinical testing, the specific performance of proposed products under stringent clinical trial protocols, extended regulatory approval and review cycles, our ability to raise additional capital, the nature and timing of research and development expenses, and competing technologies being developed by organizations with significantly greater resources.

For the foreseeable future, we expect to continue to incur losses and require additional capital to further advance our clinical trial programs and support our other operations. We cannot be certain that additional funding will be available on acceptable terms, or at all. To the extent that we can raise additional funds by issuing equity securities, our stockholders may experience additional dilution.

Cash Flow Summary

 

 

Six Months Ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

Net cash used in operating activities

 

$

(24,053

)

 

$

(21,122

)

Net cash provided by (used in) investing activities

 

 

15,526

 

 

 

(19,567

)

Net cash provided by financing activities

 

 

254

 

 

 

3

 

Net change in cash and cash equivalents

 

$

(8,273

)

 

$

(40,686

)

 

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Operating Activities

Net cash used in operating activities for the six months ended June 30, 2026, was $24.1 million. Our primary use of cash was from our net loss of $21.6 million, adjusted for non-cash items of $2.9 million primarily related to stock-based compensation. The net change in our operating assets and liabilities increased cash used in operations by $5.3 million.

Net cash used in operating activities for the six months ended June 30, 2025, was $21.1 million. Our primary use of cash was from our net loss of $27.4 million, adjusted for non-cash items of $3.1 million primarily related to stock-based compensation. The net change in our operating assets and liabilities decreased cash used in operations by $3.2 million.

At our current and anticipated level of operating loss, we expect to continue to incur an operating cash outflow for the next several years.

Investing Activities

Net cash provided by investing activities for the six months ended June 30, 2026 was $15.5 million, primarily related to maturities in excess of purchases of marketable securities.

Net cash used in investing activities for the six months ended June 30, 2025 was $19.6 million, primarily related to purchases in excess of maturities and sales of marketable securities.

Financing Activities

Net cash provided by financing activities for the six months ended June 30, 2026 was $254,000, from sales of common stock, warrants and employee stock options exercises.

Net cash provided by financing activities for the six months ended June 30, 2025 was $3,000, from employee stock options exercises.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We have performed an evaluation under the supervision and with the participation of our management, including our principal executive officer (CEO) and principal financial officer (CFO), of the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of June 30, 2026, to provide reasonable assurance that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives as specified above. Management does not expect, however, that our disclosure controls and procedures will prevent or detect all errors and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within our company have been detected.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting during the three months ended June 30, 2026, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

The information called for by this item is incorporated herein by reference to the information set forth in "Note 6. Commitments and Contingencies” in the Notes to Consolidated Financial Statements included in Item 1 of this Report.

ITEM 1A. RISK FACTORS

There have been no material changes from the risk factors disclosed in our Form 10-K for the year ended December 31, 2025, except for the following:

We Are Subject to Significant Litigation Risk and Cannot Predict the Outcome of Our Pending Lawsuit Against Our Licensor

We have initiated litigation against NMS alleging wrongful purported termination of the Agreement and other claims. NMS has responded with counterclaims. The outcome of litigation is inherently uncertain. There can be no assurance that we will prevail on any or all of our claims, that we will obtain the relief we are seeking, or that a court will agree with our legal interpretation of the Agreement or our characterization of NMS's conduct. If the court determines that NMS's termination was valid, we would lose the rights granted under the Agreement, which could have a material adverse effect on our business, financial condition, results of operations, and prospects.

The Loss of Rights Under the Agreement Could Materially Disrupt Our Business Operations

The Agreement granted us an exclusive license to conduct research and to develop, make, use, offer for sale, sell, and import products or otherwise exploit NMS’s intellectual property rights that are integral to our development of onvansertib. If the termination of the Agreement is ultimately upheld, or if we are unable to obtain preliminary injunctive relief requiring continuation of our licensed rights during the pendency of this litigation through specific performance, we may be required to:

cease or significantly curtail certain business operations or product offerings;
seek alternative technology, intellectual property, or proprietary assets, which may not be available on commercially reasonable terms or at all; and/or
write down or impair the value of assets associated with our use of the licensed rights.

Any of the foregoing consequences could materially and adversely affect our business, financial condition, results of operations and prospects.

We May Not Be Able to Obtain or Maintain Permanent or Preliminary Injunctive Relief

We have sought preliminary injunctive relief to preserve our rights under the Agreement during the course of litigation. There is no guarantee that a court will grant such relief. Courts apply exacting standards to the issuance of preliminary injunctions, including requirements that the moving party demonstrate, among other things, a likelihood of success on the merits, irreparable harm, that the balance of equities favors relief, and that an injunction is in the public interest. Our inability to obtain such relief could result in NMS enforcing or attempting to enforce some or all of the termination provisions of the Agreement pending final adjudication, which could disrupt our ability to operate our business in the ordinary course and cause irreparable harm to our business and financial performance.

This Litigation Is Costly, Time-Consuming, and Could Divert Management Attention and Resources

Commercial litigation of this nature is expensive and time-consuming. We expect to incur significant legal fees and other litigation costs in connection with this dispute. These costs could be substantial and may continue for an extended period, as complex commercial litigation frequently takes multiple years to resolve at the trial court level, with potential additional time for appellate proceedings. In addition, the attention and resources of our senior management team may be diverted from day-to-day business operations in connection with discovery, depositions, court proceedings, and settlement negotiations. This diversion of resources could negatively affect our ability to execute on our strategic priorities and could adversely affect our business and results of operations.

We May Need to Established Financial Reserves That May Prove Inadequate

In accordance with applicable accounting standards, we may be required to establish reserves for this litigation to the extent a loss is probable and can be reasonably estimated. However, the actual costs and liabilities associated with this litigation may exceed any reserves we have established, and there can be no assurance that our reserves are adequate. Changes in our assessment of the likely outcome, or developments during the course of the litigation, may require us to increase our reserves, which could have a material adverse effect on our reported financial results in the period in which such reserves are increased.

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The Litigation May Affect Our Ability to Raise Capital or Enter Into Strategic Transactions

The pendency of this litigation could adversely affect our ability to raise additional equity or debt financing on favorable terms, or at all. Investors and lenders may perceive the litigation as a material contingent liability and may demand higher risk premiums, require additional covenants, or decline to participate in financing transactions until the matter is resolved. Similarly, the litigation may complicate or delay our ability to engage in mergers, acquisitions, or other strategic transactions, as potential counterparties may be unwilling to proceed in the face of unresolved material litigation. These constraints could limit our strategic and financial flexibility.

We May Be Unable to Obtain Replacement License Rights on Acceptable Terms

If the alleged termination of the Agreement is ultimately upheld, we may attempt to license the same or similar rights from NMS or from alternative sources. There is no guarantee that we will be able to negotiate a new license with NMS, or that such a license would be available on commercially acceptable terms. Alternative sources of equivalent intellectual property or technology may not exist, may be protected by third-party rights, may be subject to other encumbrances, or may not be available to us on terms that allow us to operate our business profitably. The failure to obtain replacement rights could have a material adverse effect on our business.

Litigation Outcomes Are Inherently Unpredictable and Subject to Appeal

Even if we prevail at the trial court level, NMS may appeal such a ruling, which could result in a reversal or modification of a favorable judgment, require additional litigation costs, and extend the period of uncertainty. Conversely, if an initial ruling is adverse to us, we may elect to appeal, which would similarly extend the litigation timeline and associated costs and uncertainty. The appellate process can take years and may not result in a final resolution that is more favorable to us than the initial ruling.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the three months ended June 30, 2026, none of the Company’s directors or officers adopted or terminated any “Rule 10b5-1 trading arrangements” or any “non-Rule 10b5-1 trading arrangements,” as each term is defined in Item 408 of Regulation S-K.

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ITEM 6. EXHIBITS

 

Exhibit

Number

 

Description of Exhibit

 

 

 

4.1

 

Form of Common Warrant (incorporated by reference to Exhibit 4.1 filed on Form 8-K on July 16, 2026)

 

 

 

4.2

 

Form of Placement Agent Warrant (incorporated by reference to Exhibit 4.2 filed on Form 8-K on July 16, 2026)

 

 

 

10.1

 

Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 filed on Form 8-K on July 16, 2026)

 

 

 

10.2

 

Employment Agreement dated August 10, 2026 between Mani Mohindru, Ph.D. and Cardiff Oncology, Inc.

 

 

 

10.3

 

Employment Agreement dated August 10, 2026 between Joshua Muntner and Cardiff Oncology, Inc.

 

 

 

10.4

 

Employment Agreement dated August 10, 2026 between Ajay Aggarwal, M.D. and Cardiff Oncology, Inc.

 

 

 

31.1

 

Certification of Principal Executive Officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act.

 

 

 

31.2

 

Certification of Principal Financial Officer required by Rule 13a-14(a)/15d-14(a) under the Exchange Act.

 

 

 

32.1

 

Certification of Principal Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 

 

32.2

 

Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 

 

 

101.INS

 

Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.

 

 

 

101.SCH

 

Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents

 

 

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

26


Table of Contents

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

CARDIFF ONCOLOGY, INC.

 

 

 

August 11, 2026

By:

/s/ Mani Mohindru

 

 

Mani Mohindru

 

 

Chief Executive Officer

 

 

(Principal Executive Officer)

 

 

 

 

CARDIFF ONCOLOGY, INC.

 

 

 

August 11, 2026

By:

/s/ Josh Muntner

 

 

Josh Muntner

 

 

Chief Financial Officer

 

 

(Principal Financial Officer)

 

27