Instil Bio (TIL) slashes R&D spend and leans on Tarzana lease income in Q2 2026
Instil Bio, Inc. reported sharply lower operating expenses and losses for the three and six months ended June 30, 2026 as it winds down prior programs and repositions for new in-licensing opportunities. Total operating expenses fell to $5.6 million for the quarter and $12.6 million year-to-date, driven by the discontinuation of AXN-2510 and earlier CoStAR-TIL programs, lower headcount, and reduced development and professional costs.
The company posted a net loss of $4.3 million for the quarter and $8.5 million for the first half, versus much higher losses a year earlier, while generating $4.5 million in rental income from its Tarzana, California facility. Cash, cash equivalents, restricted cash and marketable securities totaled $69.9 million against an $85.6 million fixed-rate term loan secured by the Tarzana facility, due January 2027 with a one-year extension option management expects to exercise. The facility was reclassified from held for sale back to held and used, resulting in a modest $0.2 million net remeasurement loss. Management believes current resources, together with the planned loan extension, will fund operations beyond 2027, but future development will depend on securing new product candidates and potentially additional financing.
Positive
- Net loss narrowed significantly to $4.3 million for Q2 2026 and $8.5 million year-to-date, reflecting major cost reductions versus the prior year.
- Operating expenses dropped to $12.6 million for the first half of 2026 from $54.0 million, mainly from lower R&D and G&A after program discontinuations and restructuring.
- Tarzana facility lease provides recurring income, contributing $4.5 million in rental income for the first half of 2026 under a long-term lease with scheduled rent escalators.
- Liquidity of $69.9 million in cash, restricted cash and marketable securities, and management expects this, together with the planned loan extension, to fund operations beyond 2027.
Negative
- Debt exceeds liquid resources: the $85.6 million 2024 Loan secured by the Tarzana facility is larger than the $69.9 million cash and investments on hand.
- Continuing operating losses and an accumulated deficit of $735.0 million highlight ongoing dependence on external capital and future partnering or licensing success.
- Future funding is exposed to refinancing and asset-sale risk, as the company may need to extend, refinance or repay the 2024 Loan, potentially by selling the Tarzana facility or raising new capital.
Key Figures
Net loss Q2 2026: $4.3 million
Net loss H1 2026: $8.5 million
Operating expenses H1 2026: $12.6 million
+5 more
8 metrics
Net loss Q2 2026
$4.3 million
Net loss for the three months ended June 30, 2026
Net loss H1 2026
$8.5 million
Net loss for the six months ended June 30, 2026
Operating expenses H1 2026
$12.6 million
Total operating expenses for the six months ended June 30, 2026
Cash and investments
$69.9 million
Cash, cash equivalents, restricted cash and marketable securities as of June 30, 2026
2024 Loan principal
$85.6 million
Outstanding principal on term loan secured by Tarzana facility as of June 30, 2026
Tarzana facility carrying value
$111.7 million
Property, plant and equipment net value of Tarzana facility as of June 30, 2026
Rental income H1 2026
$4.5 million
Other rental income from Tarzana facility for six months ended June 30, 2026
Accumulated deficit
$735.0 million
Accumulated deficit as of June 30, 2026
Key Terms
going concern, in-process research and development, at-the-market offering, accrued rent receivable, +2 more
6 terms
going concern financial
"Management evaluated the Company’s ability to continue as a going concern for the twelve months"
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.
in-process research and development financial
"In-process research and development, or IPR&D, expenses include IPR&D acquired as part of in-license"
Unfinished research and development work—such as drug candidates, prototypes, or process designs—that a company is actively developing but has not yet completed or commercialized. Investors care because it represents potential future products or technologies (like a half-built prototype) whose value is uncertain; it affects how acquisitions are priced, how future profits and costs are forecast, and can be written down if the project fails.
at-the-market offering financial
"shares of common stock having an aggregate offering price of up to $100.0 million in one or more at the market offerings"
An at-the-market offering is a method companies use to sell new shares of stock directly into the open market over time, rather than all at once. This allows them to raise money gradually, similar to selling small pieces of a product instead of a large batch. For investors, it means the company can access funding more flexibly, but it may also increase the supply of shares and influence the stock’s price.
accrued rent receivable financial
"Differences between rental income earned and amounts due per the Lease are capitalized or charged to accrued rent receivable"
Term Loan Agreement financial
"Complex Therapeutics LLC entered into a Term Loan Agreement, the 2024 Loan, with Midland National Life"
A term loan agreement is a formal contract in which a borrower receives a fixed amount of money from a lender and agrees to repay it over a set period with interest, much like a mortgage or car loan for a business. It matters to investors because the scheduled repayments, interest cost and any lender-imposed rules affect a company’s cash flow, financial flexibility and creditworthiness, which can change risk and share value.
restructuring and impairment charges, net financial
"The 2026 Tarzana Charges are presented within the line item restructuring and impairment charges, net"
FAQ
How did Instil Bio (TIL) perform financially in Q2 2026?
Instil Bio reported a Q2 2026 net loss of $4.3 million, with first-half 2026 net loss of $8.5 million. This reflects sharply lower operating expenses compared with 2025 after program discontinuations and restructuring.
What is Instil Bio (TIL)’s cash and investment position as of June 30, 2026?
As of June 30, 2026, Instil Bio held $69.9 million in cash, cash equivalents, restricted cash and marketable securities. This consisted of $5.5 million in cash and equivalents, $0.3 million restricted cash and $64.1 million in U.S. Treasury bill marketable securities.
What are the key terms of Instil Bio (TIL)’s 2024 Loan?
The 2024 Loan is a $85.6 million fixed-rate term loan at 6.35%, secured by the Tarzana facility. It currently matures in January 2027 with a one-year extension option to January 2028, subject to conditions such as debt service coverage and an extension fee.
How is Instil Bio (TIL) using its Tarzana facility?
The Tarzana facility is leased to AstraZeneca under a long-term operating lease, generating $4.5 million in rental income for the first half of 2026. The building and land are carried at about $111.7 million within property, plant and equipment.
What happened to Instil Bio (TIL)’s AXN-2510 program and ImmuneOnco agreement?
In January 2026, Axion Bio discontinued AXN-2510 development and terminated related staff. Earlier, in January 2026, Axion Bio and ImmuneOnco ended their collaboration, with Instil recording a $1.6 million gain on contract termination in the first half of 2026.
Does Instil Bio (TIL) face going concern issues related to its debt?
Management identified the $85.6 million 2024 Loan maturing in January 2027 as an indicator of substantial doubt but concluded that plans, including exercising the extension option to January 2028, alleviate going concern conditions for the assessment period.
What are Instil Bio (TIL)’s plans for future R&D after discontinuing AXN-2510?
Instil Bio is seeking to in-license or acquire new therapeutic candidates in areas of significant unmet need. Current R&D spend is low—only $0.9 million in the first half of 2026—reflecting the wind-down of prior programs.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended June 30, 2026
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ________ to ________
Commission file number 001-40215
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Zip Code) | ||||||||||||||
(Address of Principal Executive Offices) | ||||||||||||||
(972 ) 499-3350
Registrant’s telephone number, including area code
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 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 files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer | ☐ | 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 7(a)(2)(B) of the Securities Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
| Class of Common Stock | Outstanding at | ||||
August 11, 2026 | |||||
TABLE OF CONTENTS
Page | |||||
Part I. Financial Information | 2 | ||||
Item 1. Financial Statements (Unaudited) | 2 | ||||
Condensed Consolidated Balance Sheets | 2 | ||||
Condensed Consolidated Statements of Operations and Comprehensive Loss | 3 | ||||
Condensed Consolidated Statements of Stockholders’ Equity | 4 | ||||
Condensed Consolidated Statements of Cash Flows | 6 | ||||
Notes to Condensed Consolidated Financial Statements | 7 | ||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 22 | ||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 33 | ||||
Item 4. Controls and Procedures | 33 | ||||
Part II. Other Information | 35 | ||||
Item 1. Legal Proceedings | 35 | ||||
Item 1A. Risk Factors | 35 | ||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 35 | ||||
Item 3. Defaults Upon Senior Securities | 35 | ||||
Item 4. Mine Safety Disclosures | 35 | ||||
Item 5. Other Information | 35 | ||||
Item 6. Exhibits | 36 | ||||
Signatures | 37 | ||||
1
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
INSTIL BIO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(Unaudited)
| June 30, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
| Marketable securities | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Assets held for sale | |||||||||||
| Total current assets | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Accrued rent receivable | |||||||||||
| Other long-term assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued expenses and other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Operating lease liabilities, non-current | |||||||||||
| Loan payable | |||||||||||
| Other long-term liabilities | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 9) | |||||||||||
| Stockholders’ equity: | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, par value $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Accumulated deficit | ( | ( | |||||||||
| Total stockholders’ equity | |||||||||||
| Total liabilities and stockholders’ equity | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
INSTIL BIO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share amounts)
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| In-process research and development | $ | $ | $ | $ | |||||||||||||||||||
| Research and development | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Restructuring and impairment charges, net | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Other rental income | |||||||||||||||||||||||
| Gain on contract termination | |||||||||||||||||||||||
| Other (expense) income, net | ( | ( | |||||||||||||||||||||
| Net loss | ( | ( | ( | ( | |||||||||||||||||||
| Other comprehensive loss: | |||||||||||||||||||||||
| Foreign currency translation | ( | ( | ( | ||||||||||||||||||||
| Unrealized loss on available-for-sale securities, net | ( | ( | ( | ( | |||||||||||||||||||
| Net comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Net loss per share: | |||||||||||||||||||||||
| Basic and Diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
| Weighted-average shares used in computing net loss per share: | |||||||||||||||||||||||
| Basic and Diluted | |||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
INSTIL BIO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share amounts)
(Unaudited)
| Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
| Shares | Amount | Loss | |||||||||||||||||||||||||||||||||
| Balance - December 31, 2025 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
| Balance - March 31, 2026 | ( | ( | |||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Balance - June 30, 2026 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
4
INSTIL BIO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (CONTINUED)
(in thousands, except share amounts)
(Unaudited)
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Loss | |||||||||||||||||||||||||||||||||
| Balance - December 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
| Issuance of common stock upon exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Balance - March 31, 2025 | ( | ( | |||||||||||||||||||||||||||||||||
| Issuance of common stock upon exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock in at-the-market offering, net of $ | — | — | — | ||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
| Balance - June 30, 2025 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
5
INSTIL BIO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
| Six Months Ended | |||||||||||
| June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | ( | $ | ( | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Stock-based compensation | |||||||||||
| Non-cash lease expense | |||||||||||
| Foreign exchange remeasurement loss (gain) | ( | ||||||||||
| Impairment of property, plant and equipment and estimated cost to sell, net | |||||||||||
| Depreciation | |||||||||||
| Restructuring costs | ( | ||||||||||
| In-process research and development expenses | |||||||||||
| Amortization (accretion) on invested securities | ( | ||||||||||
| Non-cash interest expense | |||||||||||
| Loss on disposals of property and equipment | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Other long-term assets | |||||||||||
| Accrued rent receivable | ( | ( | |||||||||
| Accounts payable | ( | ||||||||||
| Operating lease liabilities | ( | ( | |||||||||
| Long term liabilities | ( | ||||||||||
| Accrued expenses and other current liabilities | ( | ( | |||||||||
| Net cash used in operating activities | ( | ( | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchase of marketable securities | ( | ( | |||||||||
| Maturities of marketable securities | |||||||||||
| Cash received from held for sale assets | |||||||||||
| Net cash provided by investing activities | |||||||||||
| Cash flows from financing activities: | |||||||||||
Proceeds from at-the-market offering, net of $ | |||||||||||
| Proceeds from exercise of stock options | |||||||||||
| Loan agreement closing costs | ( | ||||||||||
| Net cash provided by financing activities | |||||||||||
| Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||
| Cash, cash equivalents and restricted cash—beginning of period | |||||||||||
| Cash, cash equivalents and restricted cash—end of period | $ | $ | |||||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid for interest | $ | $ | |||||||||
| Supplemental disclosure of noncash information: | |||||||||||
| Noncash increase in operating lease ROU assets and lease liabilities resulting from lease modifications | $ | $ | |||||||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
6
INSTIL BIO, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. Organization and Description of Business
Instil Bio, Inc. (the “Company”) is a biotechnology company focused on identifying and advancing innovative therapeutic opportunities.
In January 2026, the Company announced that its wholly owned subsidiary, Axion Bio, Inc. (“Axion Bio”), was discontinuing development of AXN-2510, its former lead product candidate. See Note 14 for further information.
The Company is actively seeking to in-license or acquire and develop additional novel therapeutic candidates in diseases with significant unmet medical need.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2026, the condensed consolidated balance sheets for the six months ended June 30, 2026 and year ended December 31, 2025, the condensed consolidated statements of operations and comprehensive loss for the three and six months ended June 30, 2026 and 2025, the condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2026 and 2025, and the results of its cash flows for the six months ended June 30, 2026 and 2025. The financial data and other information disclosed in these notes related to the three and six months ended June 30, 2026 and 2025 are also unaudited. The results for the three and six months ended June 30, 2026 are not necessarily indicative of results to be expected for the year ending December 31, 2026, any other periods, or any future year period. The Company has evaluated subsequent events through the date the condensed consolidated financial statements were issued.
The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (“SEC”) on March 27, 2026.
Segments
Operating segments are identified as components of an entity for which separate discrete financial information is available and that is regularly reviewed by the chief operating decision-maker, the Company’s Chief Executive Officer, in deciding how to allocate resources to an individual segment and in assessing performance. The Company has determined it operates in a single operating segment and has one operating segment. See Note 4 for further information.
7
Cash, Cash Equivalents, Restricted Cash, and Marketable Securities
The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. Cash equivalents include amounts invested in money market accounts.
As of June 30, 2026, restricted cash consisted of a cash reserve allocated for future tax payments related to the 2024 Loan (as defined in Note 10) and credit card collateral. As of December 31, 2025, restricted cash consisted solely of a cash reserve allocated to future tax payments related to the 2024 Loan. There was $0.3 million and $0.2 million of restricted cash as of June 30, 2026 and December 31, 2025, respectively, on the Company’s condensed consolidated balance sheets.
The Company’s investments in marketable securities have been classified and accounted for as available-for-sale. The Company classifies its maturities as either short-term or long-term based on each instrument’s underlying contractual maturity date, which are carried at their fair values based on the quoted market prices of the securities. Unrealized gains and losses are reported as accumulated other comprehensive loss. Realized gains and losses on available-for-sale securities are included in net loss in the period earned or incurred. As of June 30, 2026 and December 31, 2025, marketable securities consisted of U.S. Treasury bills.
The Company evaluates its available-for-sale debt securities for expected credit losses on a periodic basis in accordance with Accounting Standards Codification, or ASC, Topic 326. In assessing whether a credit loss exists, the Company considers, among other factors, the credit quality and financial condition of the issuer, payment history, current and forecasted economic conditions, the extent to which fair value is less than amortized cost, and the collectability of contractual cash flows. The Company’s investment portfolio consists primarily of investment-grade debt securities. If the Company determines that a decline in fair value is attributable to credit-related factors, an allowance for credit losses is recorded through earnings for the amount of the credit loss, limited to the difference between the security’s amortized cost basis and fair value. Any portion of an unrealized loss that is not attributable to credit-related factors is recognized in other comprehensive income in the condensed consolidated statements of operations and comprehensive loss. As of June 30, 2026 and December 31, 2025, the Company determined that no allowance for credit losses was required on its investments.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the amounts shown in the condensed consolidated statements of cash flows (in thousands):
June 30, 2026 | December 31, 2025 | ||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
| Cash, cash equivalents and restricted cash | $ | $ | |||||||||
Going Concern
The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Management evaluated the Company’s ability to continue as a going concern for the twelve months following the issuance of the condensed consolidated financial statements. As disclosed and defined in Note 10, the 2024 Loan is due in January 2027, for total principal of $85.6 million, which is in excess of cash, cash equivalents, and marketable securities on hand as of June 30, 2026, which management has concluded is an indicator of substantial doubt about the Company’s ability to continue as a going concern.
The Company plans to cause Complex Therapeutics LLC, a wholly owned subsidiary of the Company, to execute its contractual right to extend the maturity of the 2024 Loan to January 2028. In addition, the Company may seek to cause Complex Therapeutics LLC to refinance or restructure the 2024 Loan, sell the Tarzana facility (the Tarzana facility consists of two buildings (collectively "the building") and the underlying land), to repay the 2024 Loan, or seek additional financing in the form of equity or debt instruments. There can be no assurance that new
8
financing or other forms of funding will be available on favorable terms or at all. The Company concluded that management’s plans, including Complex Therapeutics LLC’s contractual right to exercise the extension option to January 2028, which is within Complex Therapeutics LLC’s control, alleviate the conditions that raise substantial doubt about the Company’s ability to continue as a going concern.
Assets Held for Sale
The Company classifies long-lived assets or disposal groups to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal group; the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the asset or disposal group beyond one year, and actions required to complete the plan to sell have been initiated.
The Company initially measures a long-lived asset or disposal group that is held for sale at the lower of its carrying value or fair value less any cost to sell. Fair value is estimated by the Company through evaluations of quoted market prices received for other comparable held for sale assets sold by the Company. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. The Company assesses the fair value of a long-lived asset or disposal group less any cost to sell each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company ceases depreciation, if any, and reports long-lived assets in the line item “assets held for sale” in its condensed consolidated balance sheets. Refer to Note 3 for further details.
Impairment of Long-Lived Assets
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or that the useful life is shorter than originally estimated. Recoverability is generally assessed by comparing the carrying amount of the asset to the future undiscounted net cash flows expected to be generated over its remaining useful life. If such assets are impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. If the useful life is shorter than originally estimated, the Company depreciates or amortizes the remaining carrying value over the revised shorter useful life. See Note 14 for more information.
Research and Development Expenses
Research and development costs are expensed as incurred. Clinical trial and other development costs incurred by third parties are expensed as the contracted work is performed. The Company accrues for costs incurred as the services are being provided by monitoring the status of the trial or project and the invoices received from its external service providers. The Company adjusts its accrual as actual costs become known. Where contingent milestone payments are due to third parties under research and development arrangements or license agreements, the milestone payment obligations are expensed when the milestone results are achieved.
Recent Accounting Pronouncements Not Yet Adopted
In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) (“ASU 2024-03”). The amendments in this update require disclosure, in the notes to the financial statements, of specific expense categories present within expense captions presented on the face of the income statement within continuing operations of public business entities. The amendments in this update are effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The
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Company is currently evaluating the impact of ASU 2024-03 on its condensed consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU No. 2025-07, Derivatives and Hedging and Revenue from Contracts with Customers - Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract (“ASU 2025-07”) which applies to all entities that enter into non-exchange-traded contracts with underlyings based on operations or activities specific to one of the parties to the contract. The new guidance excludes from derivative accounting non-exchange-traded contracts with underlyings that are based on operations or activities specific to one of the parties to the contract. ASU 2025-07 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company does not expect adoption of ASU 2025-07 to have a material impact on its condensed consolidated financial statements and related disclosures.
In May 2026, the FASB issued ASU 2026-02 “Environmental Credits and Environmental Credit Obligations (Topic 818)” to provide recognition, measurement, presentation, and disclosure guidance for environmental credits and environmental credit obligations. Upon adoption, the Company will be required to account for environmental credits and environmental credit obligations under the new guidance. The standard is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. The standard should be adopted on a retrospective basis. The Company is currently evaluating the impact of ASU 2026-02 on its condensed consolidated financial statements and related disclosures.
3. Assets Held for Sale
In March 2025, the Company’s board of directors (the “Board of Directors”) approved a plan to sell the Tarzana facility. The Company engaged a broker to facilitate a potential sale of the Tarzana facility and reclassified the Tarzana facility as held for sale in the consolidated balance sheet during the year ended December 31, 2025. The Tarzana facility is currently leased to AstraZeneca Pharmaceuticals LP (“Tenant”) and Tenant has a right of first offer to purchase it. Refer to Note 9.
In May 2026, the Company determined that there had been a change to its plan with respect to the Tarzana facility. As a result, management concluded that the facility no longer met the criteria for classification as held for sale under ASC 360. Consequently, in May 2026, the Tarzana facility was reclassified as held and used and resumed depreciating the asset subject to depreciation prospectively over its remaining estimated useful life. In accordance with ASC 360, a long lived asset that ceases to be classified as held for sale is measured at the lower of (a) its carrying amount before the asset was classified as held for sale, adjusted for depreciation expenses that would have been recognized had the asset been continuously classified as held and used, and (b) its fair value. The Company determined the adjusted carrying amount of the Tarzana facility to be $111.9 million, which includes $3.6 million of depreciation expense, recorded within “restructuring and impairment charges, net”, that would have been recognized had the asset been continuously classified as held and used.
In accordance with ASC 360, the building and land of the Tarzana facility were measured individually when the assets were placed back into use. The Company estimated the fair value of the Tarzana facility, including separate estimates of the fair value of the land and building, using a combination of the income capitalization approach and the sales comparison approach. These valuations represent Level 3 fair value measurements within the fair value hierarchy established by ASC 820, as each relied on significant unobservable inputs. The estimated fair value of the building exceeded its adjusted carrying amount; therefore, the building was recorded at its adjusted carrying amount in accordance with ASC 360. The estimated fair value of the land was below its adjusted carrying amount and was therefore recorded at fair value. These fair value measurements are nonrecurring and were performed solely in connection with the reclassification described above.
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The Company recognized a net remeasurement loss of $0.2 20.4 million at the date of reclassification, while the building was recorded at its adjusted carrying amount of $91.5 million, representing its carrying value prior to classification as held for sale adjusted for depreciation that would have been recognized had the asset remained classified as held and used. The net remeasurement loss consisted of an $8.1 4.5 million reduction in the carrying value of the land to fair value and a $3.6 million depreciation charge that would have been recognized had the building remained classified as held and used, partially offset by a $7.9
For the six months ended June 30, 2025, the Company recorded charges related to the Tarzana facility of approximately $16.6 million, consisting of $8.7 million related to impairment and $7.9 million related to the estimated cost to sell. The Company did not record any charges related to the Tarzana facility for the three months ended June 30, 2025. Refer to Note 14.
Following the reclassification, the Company recorded the Tarzana facility under “Property, plant and equipment, net” on the Company’s condensed consolidated balance sheet as of June 30, 2026. In addition, one month of depreciation of $0.2 million on the Tarzana facility was recorded in accumulated depreciation, resulting in a carrying value of $111.7 million on the Company’s condensed consolidated balance sheet as of June 30, 2026. The carrying value of the held for sale Tarzana facility was $112.1 million as of December 31, 2025.
4. Segment Reporting
The Company manages its business activities on a consolidated basis and has one reportable segment relating to the research and development of novel therapies. The Chief Executive Officer, who serves as the Company’s chief operating decision maker (“CODM”), is responsible for the overall supervision, direction, and management of the business and its officers.
The CODM reviews net loss, as reported in the condensed consolidated statements of operations and comprehensive loss, as well as the progress of the Company’s program(s). The CODM does not review assets in evaluating the results of the segment, and therefore, such information is not presented. All long-lived assets owned by the Company are located in the United States. The accounting policies of the segment are the same as those described in Note 2.
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The following table is a summary of the segment and consolidated net loss, including significant segment expenses for the three and six months ended June 30, 2026 and 2025 (in thousands):
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| In-process research and development | $ | $ | $ | $ | |||||||||||||||||||
| AXN-2510 | |||||||||||||||||||||||
Other program expenses(1) | |||||||||||||||||||||||
General and administrative(2) | |||||||||||||||||||||||
| Restructuring and impairment charges, net | |||||||||||||||||||||||
| Depreciation | |||||||||||||||||||||||
| Interest income | ( | ( | ( | ( | |||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Gain on contract termination | ( | ||||||||||||||||||||||
| Other income, net | ( | ( | ( | ( | |||||||||||||||||||
| Segment and consolidated net loss | $ | $ | $ | $ | |||||||||||||||||||
______________________________________________________________
(1) Other program expenses consist of costs related to the Company’s past development of its CoStAR-TIL technology.
(2) Depreciation expense is removed from “General and administrative” and is disclosed separately.
5. Balance Sheet Components
Prepaid and other current assets
Prepaid and other current assets consisted of the following (in thousands):
June 30, 2026 | December 31, 2025 | ||||||||||
| Prepaid general and administrative | $ | $ | |||||||||
| Prepaid research and development | |||||||||||
| Tax-related receivable | |||||||||||
| Prepaid contract research organization expenses | |||||||||||
| Other current assets | |||||||||||
| Total prepaid and other current assets | $ | $ | |||||||||
Property, Plant and Equipment, Net
Property, plant and equipment, net consisted of the following (in thousands):
June 30, 2026 | December 31, 2025 | ||||||||||
| Land | $ | $ | |||||||||
| Building | |||||||||||
| Office furniture and computer equipment | |||||||||||
| Total property, plant and equipment, gross | |||||||||||
| Less: accumulated depreciation | ( | ( | |||||||||
| Total property, plant and equipment, net | $ | $ | |||||||||
Depreciation expense was $0.2 million and nominal for the three months ended June 30, 2026 and 2025, respectively, and $0.3 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively, in the condensed consolidated statements of operations and comprehensive loss. In March 2025, the Tarzana facility was classified as held for sale, and accordingly, depreciation ceased upon such classification.
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In May 2026, the Company determined that the Tarzana facility no longer met the criteria for classification as held for sale and reclassified the asset as held and used. Accordingly, the carrying value of the building was adjusted to reflect the depreciation that would have been recognized had the Tarzana facility been continuously classified as held and used, as described in Note 2. Depreciation on the adjusted carrying value resumed prospectively in June 2026 and is reflected in accumulated deprecation above. See Note 2 and Note 14.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in thousands):
| June 30, 2026 | December 31, 2025 | ||||||||||
| Accrued compensation and benefits | $ | $ | |||||||||
| Accrued operational expenses | |||||||||||
| Accrued restructuring costs | |||||||||||
| Accrued research, development and clinical trial expenses | |||||||||||
| Operating lease liabilities, current | |||||||||||
| Total accrued expenses and other current liabilities | $ | $ | |||||||||
6. Fair Value Measurement
The carrying amounts of cash and cash equivalents, receivables, prepaid expenses, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these instruments. Cash and cash equivalents consist primarily of cash and highly liquid investments with original maturities of three months or less at the time of purchase; accordingly, their carrying amounts approximate fair value. Cash and cash equivalents are valued based upon quoted market prices in active markets for identical assets and are therefore classified as Level 1 assets. Money market funds are open-end mutual funds that invest in cash, government securities, and/or repurchase agreements that are collateralized fully. To the extent that these funds are valued based upon the reported net asset value, they are categorized in Level 1 of the fair value hierarchy.
Short-term marketable securities consisted of U.S. Treasury bills that are classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations, alternative pricing sources or U.S. Government Treasury yield of appropriate term.
The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis:
As of June 30, 2026 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Financial Assets | |||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | |||||||||||||||||||
| U.S. Treasury bills | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
As of December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Financial Assets | |||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | |||||||||||||||||||
| U.S. Treasury bills | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
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There were no transfers in or out of Level 1, 2 and 3 measurements for the six months ended June 30, 2026 and the year ended December 31, 2025. As of June 30, 2026 and December 31, 2025, there were no securities within Level 3 of the fair value hierarchy.
As of June 30, 2026 and December 31, 2025, the fair value of the 2024 Loan (as defined in Note 10) was $85.6 million and $85.5 million, respectively. The fair value was determined on the basis of its net present value and is considered Level 2 in the fair value hierarchy.
In May 2026, the Company determined that the Tarzana facility no longer met the criteria for classification as held for sale and reclassified it as held and used. Accordingly, depreciation resumed prospectively based on the adjusted carrying value. Each asset was measured individually at the lower of its carrying amount before the Tarzana facility was classified as held for sale, with the depreciable assets adjusted for depreciation expense that would have been recognized had the Tarzana facility been continuously classified as held and used, or its fair value as of the date of the subsequent decision not to sell. The fair values of these assets are classified as Level 3 in the fair value hierarchy due to a mix of unobservable inputs utilized. As a result, the Company recognized a net remeasurement loss of $0.2
7. Financial Instruments
Marketable securities classified as available-for-sale on June 30, 2026 and December 31, 2025 consisted of the following (in thousands):
| June 30, 2026 | |||||||||||||||||||||||||||||
| Maturity | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||
| U.S. Treasury bills | Less than one year | $ | $ | $ | ( | $ | |||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| Maturity | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||||||||||||||
| U.S. Treasury bills | Less than one year | $ | $ | $ | ( | $ | |||||||||||||||||||||||
As of June 30, 2026 and December 31, 2025, marketable securities that had contractual maturities less than one year are classified as current because management considers these marketable securities to be available for current operations. The Company does not intend to sell its marketable securities and it is not likely that the Company will be required to sell these securities before recovery of their amortized cost basis. There were $64.1 million and $69.5 million of marketable securities classified as available-for-sale as of June 30, 2026 and December 31, 2025, respectively.
8. License and Collaboration Agreement with ImmuneOnco
On August 1, 2024, Axion Bio entered into a license and collaboration agreement (the “IO Collaboration Agreement”) with ImmuneOnco Biopharmaceuticals (Shanghai) Inc. (“ImmuneOnco”), under which it in-licensed several bispecific antibodies, including AXN-2510 and AXN-27M. As part of the IO Collaboration Agreement, Axion Bio made a $10.0 million upfront payment to ImmuneOnco during the year ended December 31, 2024. This amount was fully expensed as in-process research and development (“IPR&D”) in the same year.
During the year ended December 31, 2024, Axion Bio made a $5.0 million prepayment to ImmuneOnco for development costs, which was fully recognized as research and development expense by March 31, 2025. In April 2025, Axion Bio made a second $5.0 million prepayment to ImmuneOnco for development costs, which was fully recognized as research and development expense by September 30, 2025. In August 2025, Axion Bio made a third
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$5.0 million prepayment to ImmuneOnco for development costs, which was fully recognized as research and development expense by March 31, 2026.
In June 2025, Axion Bio achieved Investigational New Drug (IND) clearance in the United States for a Phase 1 trial of AXN-2510 in relapsed/refractory solid tumors. This milestone triggered a $10.0 million development payment to ImmuneOnco, which was paid in July 2025. This amount was fully expensed as IPR&D during the second quarter of 2025.
The expenses recognized in connection with the IO Collaboration Agreement were nil and $14.1 million for the three months ended June 30, 2026 and 2025, respectively, and $0.3 million and $18.4 million for the six months ended June 30, 2026 and 2025, respectively. Of these amounts, $10.0
On January 5, 2026, Axion Bio and ImmuneOnco entered into an agreement terminating the IO Collaboration Agreement. Under the termination agreement, Axion Bio agreed to transfer the rights, title, and interest related to AXN-2510 and AXN-27M to ImmuneOnco, and ImmuneOnco agreed to pay Axion Bio $1.8 million, of which $1.6 million was received during the quarter ended March 31, 2026 and recorded as other income as a gain on contract termination in the condensed consolidated statements of operations and comprehensive loss. The remaining $0.2 million is contingent upon the completion of specified wind-down activities and had not been earned or received as of June 30, 2026.
9. Commitments and Contingencies
Leases
Company as a Lessee: Operating Lease Obligations
The Company currently leases office spaces and laboratory spaces located in Dallas, Texas and Alderley Park in the United Kingdom. During April 2025, the Company terminated its prior lease in Thousand Oaks, California. The Company’s leased facilities have original lease terms ranging from 2 to 5 years that in general require the Company to provide a security deposit. Certain leases provide the right for the Company to renew the lease upon the expiration of the initial lease term, and various leases have scheduled rent increases on an annual basis. The exercise of lease renewal options for the Company’s existing leases is at the Company’s sole discretion, and not included in the measurement of right-of-use asset or lease liability as they are not reasonably certain to be exercised.
The Company’s lease costs consisted of the following (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
| Variable lease cost | |||||||||||||||||||||||
| Total lease cost | $ | $ | $ | $ | |||||||||||||||||||
The following table summarizes cash flow information related to the Company’s lease obligations (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Cash paid for operating lease liabilities | $ | $ | $ | $ | |||||||||||||||||||
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The following table summarizes the Company’s lease assets and liabilities (in thousands):
June 30, 2026 | December 31, 2025 | ||||||||||
| Operating lease right-of-use assets | $ | $ | |||||||||
| Current operating lease liabilities | $ | $ | |||||||||
| Non-current operating lease liabilities | $ | $ | |||||||||
The following table summarizes other supplemental information related to the Company’s lease obligations:
June 30, 2026 | December 31, 2025 | ||||||||||
| Weighted-average remaining lease term (in years) | |||||||||||
| Weighted-average discount rate | % | % | |||||||||
The Alderley Park leases in the United Kingdom are set to expire in November 2026. On April 2nd, 2026 the Company extended its lease in Dallas to April 2031.
Future minimum lease payments under operating lease liabilities were (in thousands):
June 30, 2026 | |||||
| 2026 (remaining six months) | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| 2031 and thereafter | |||||
| Total future lease payments | |||||
| Less: imputed interest | |||||
| Total lease liability balance | |||||
| Less: current portion of operating lease liabilities | |||||
| Total operating lease liabilities, non-current | $ | ||||
Current operating lease liabilities are recorded in the line item “accrued expenses and other current liabilities” in the condensed consolidated balance sheets.
Company as a Lessor: Tarzana Facility Lease with AstraZeneca
On July 10, 2024, Complex Therapeutics LLC, a wholly owned subsidiary of the Company, entered into a lease with AstraZeneca Pharmaceuticals LP pursuant to which Tenant is leasing the facility located in Tarzana, California (the “Lease”). The Lease has an initial term of approximately 15 years, beginning on July 10, 2024 and ending on July 31, 2039, with Tenant having two consecutive options to extend the term for a five-year period each and a one-time option to terminate the Lease on the tenth anniversary of the commencement of the Lease, which, if exercised, obligates Tenant to pay Complex Therapeutics LLC a termination fee. The initial base rent was approximately $0.6 million per month (approximately $7.5 million annually) and the base rent escalates by 3 % per annum. Tenant is also required to pay certain operating expenses and tax expenses as additional rent. There was rent abatement during the first year of the Lease such that Tenant paid no rent or reduced rent during this period. Tenant also has a right of first offer to purchase the premises that are subject to the Lease.
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The Lease is classified as an operating lease and revenue is recognized on a straight-line basis and is recorded within the condensed consolidated statements of operations and comprehensive loss in the line item “Other rental income” as this is not a part of the Company’s core operations. Rental income related to the Lease was as follows (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Rental income related to fixed lease income | $ | $ | $ | $ | |||||||||||||||||||
Approximate future straight-lined contractual lease income to be recognized under the Lease in effect as of June 30, 2026, is as follows (in thousands):
June 30, 2026 | |||||
| 2026 (remaining six months) | $ | ||||
| 2027 | |||||
| 2028 | |||||
| 2029 | |||||
| 2030 | |||||
| 2031 and thereafter | |||||
| Total | $ | ||||
Differences between rental income earned and amounts due per the Lease are capitalized or charged, as applicable, to accrued rent receivable. As of June 30, 2026 and December 31, 2025, the Company had accrued rent receivable of $8.3 million and $7.7 million, respectively.
Legal Proceedings
From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable that future expenditures will be made and that such expenditures can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. The Company does not expect that the resolution of these matters will have a material adverse effect on its financial position, results of operations or cash flows.
Indemnifications
The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company currently has directors’ and officers’ insurance coverage that reduces its exposure and enables the Company to recover a portion of any future amounts paid. No liability associated with such indemnifications was recorded as of June 30, 2026 and December 31, 2025.
Other Commitments
In the normal course of business, the Company enters into contracts and various purchase agreements and commitments with third-party vendors for clinical research services, products and other services for operating purposes. These agreements generally provide for termination or cancellation at the Company’s option, other than for costs already incurred.
As of June 30, 2026 and December 31, 2025, the Company had $0.2
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10. Debt
In June 2022, the Company’s wholly owned subsidiaries Complex Therapeutics Mezzanine LLC and Complex Therapeutics LLC entered into a mortgage construction loan and mezzanine construction loan (together, the “Construction Loans”) secured by Complex Therapeutic LLC’s Tarzana, California land and building. The initial principal amount of the Construction Loans was $52.1 million, with additional future principal of up to $32.9 million to fund ongoing construction costs.
On December 20, 2024 (the “Closing Date”), Complex Therapeutics LLC entered into a Term Loan Agreement (the “2024 Loan”) and related loan documents with Midland National Life Insurance Company (“Lender”), pursuant to which Lender loaned Complex Therapeutics LLC a term loan in the principal amount of $85.6 million to refinance the Construction Loans. Substantially all of the 2024 Loan proceeds were used to repay in full the Construction Loans. As of both June 30, 2026 and December 31, 2025, the outstanding principal amount under the 2024 Loan was $85.6 0.4 million and $0.8 million as of June 30, 2026 and December 31, 2025, respectively.
The 2024 Loan has a term of two years with a one-year extension option. The extension option is subject to certain conditions being met, including: (a) no potential default or event of default, (b) payment of a 0.35 % extension fee and the costs and expenses of Lender incurred in connection with the extension, (c) replenishing of all reserve funds as reasonably determined by Lender, and (d) compliance with minimum debt yield and debt service coverage ratio requirements. The 2024 Loan bears interest at a fixed rate of 6.35 % per annum, with interest-only payments during the term and the principal balance due in full at maturity.
The 2024 Loan may be prepaid in whole but not in part. If the 2024 Loan is prepaid on or prior to the 12-month anniversary of the Closing Date, a prepayment fee is required (other than in connection with a casualty or condemnation event) to make Lender whole for the interest it would have otherwise earned on the 2024 Loan during the first 12 months. There is no prepayment fee due if the 2024 Loan is prepaid after the 12-month anniversary of the Closing Date.
The net carrying amount of the liability component of the 2024 Loan was as follows (in thousands):
June 30, 2026 | December 31, 2025 | ||||||||||
| Principal amount | $ | $ | |||||||||
| Unamortized debt issuance cost | ( | ( | |||||||||
| Net carrying amount | $ | $ | |||||||||
The following table sets forth the interest expense recognized related to the Loan (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Contractual interest expense | $ | $ | $ | $ | |||||||||||||||||||
| Amortization of debt issuance cost | |||||||||||||||||||||||
| Total interest expense related to the 2024 Loan | $ | $ | $ | $ | |||||||||||||||||||
11. Equity
Common Stock
Each share of common stock has the right to one vote. The holders of common stock are also entitled to receive dividends out of legally available funds when and if declared by the Company’s Board of Directors, subject to the rights of holders of any classes of stock outstanding having priority rights as to dividends. No cash dividends have been declared by the Board of Directors from inception.
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As of both June 30, 2026 and December 31, 2025, the Company had 6,781,976
At-the-Market Offering (ATM Program)
In March 2025, the Company entered into an Open Market Sale AgreementSM with Jefferies LLC (“Jefferies”) pursuant to which the Company may, subject to the terms and conditions set forth in the agreement, offer and sell, from time to time, through or to Jefferies, acting as agent or principal, shares of common stock having an aggregate offering price of up to $100.0 million in one or more “at the market offerings” (the “ATM Program”).
As of December 31, 2025, the Company had sold 185,837 shares of common stock under the ATM Program at a weighted-average price of $37.13 per share, for net proceeds of $6.6 million, after deducting commissions and expenses of approximately $0.3 million. The remaining availability under the ATM Program as of both December 31, 2025 and June 30, 2026 is approximately $93.1 no sales under the ATM Program during the six months ended June 30, 2026.
Preferred Stock
The Company’s current amended and restated certificate of incorporation authorizes the Company to issue up to 10,000,000 shares of preferred stock at $0.000001 par value per share. The Board of Directors is authorized to provide for the issuance of the preferred stock in one or more series, and to fix the number of shares and to determine or alter for each such series, such voting powers, full or limited, or no voting powers, and such designation, preferences, and relative, participating, optional, or other rights and such qualifications, limitations, or restrictions thereof, as shall be stated and expressed in subsequent resolution or resolutions adopted by the board providing for the issuance of such shares. As of June 30, 2026 and December 31, 2025, there were no
12. Stock-Based Compensation
2021 Equity Incentive Plan
In March 2021, the Company adopted the 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the Company’s initial public offering (“IPO”). The 2021 Plan was approved by the Board of Directors and stockholders in March 2021. The 2021 Plan is an equity incentive plan pursuant to which the Company may grant the following awards: (i) incentive stock options; (ii) nonstatutory stock options; (iii) stock appreciation rights; (iv) restricted stock awards; (v) restricted stock unit awards; (vi) performance awards; and (vii) other forms of stock awards to employees, directors, and consultants, including employees and consultants of the Company’s affiliates. The 2021 Plan is a successor to the Company’s 2018 Stock Incentive Plan (the “2018 Plan”). Following the effectiveness of the 2021 Plan, no further grants may be made under the 2018 Plan; however, any outstanding equity awards granted under the 2018 Plan will continue to be governed by the terms of the 2018 Plan.
As of June 30, 2026, 926,486 shares of common stock remained available for issuance under the 2021 Plan. During the three and six months ended June 30, 2026, options to purchase 1,250 132,033
The following table sets forth stock-based compensation included in the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Total stock-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
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As of June 30, 2026, there was $8.3 million of total unrecognized compensation cost related to unvested stock options granted under the 2021 Plan, which is expected to be recognized over a weighted average period of 2.1 years.
Employee Stock Purchase Plan
In March 2021, the Company adopted the Employee Stock Purchase Plan (the “ESPP”), which became effective in connection with the IPO. The ESPP was adopted by the Board of Directors and stockholders in March 2021, but the Company has not yet commenced offerings to employees under the ESPP. As of June 30, 2026, the Company had 192,148 shares of its common stock available for future issuance under the ESPP.
13. Net Loss Per Share
The following outstanding potentially dilutive shares have been excluded from the calculation of diluted net loss per share for the periods presented due to their anti-dilutive effect:
| June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Stock options to purchase common stock | |||||||||||
14. Restructuring and Impairment of Long-Lived Assets
In January 2023, the Board of Directors approved a restructuring plan and the Company announced the consolidation of the ITIL-306 Phase 1 clinical trial, which included contract terminations.
In January 2024, the Board of Directors approved a comprehensive restructuring plan, which included the closure of the Company’s UK manufacturing facility and clinical trial operations. In September 2024, the Board of Directors approved additional UK restructuring actions, which resulted in the elimination of the majority of the remaining UK workforce in the fall of 2024, with the remaining reduction and restructuring activities substantially completed by the end of 2024.
Collectively, the restructuring events from 2023 and 2024 are referred to as the “Plan.” Certain contractual obligations associated with the Plan were settled in 2025, resulting in related cost adjustments.
In March 2025, the Board of Directors approved a plan to sell the Tarzana facility, and the Company listed the Tarzana facility for sale and reclassified it as a long-lived asset held for sale and incurred impairment charges on the facility and as well as charges related to the anticipated cost to sell the facility (collectively, the “2025 Tarzana Charges”).
In January 2026, Axion Bio discontinued development of AXN-2510, and the Company terminated certain employees associated with this program (the “2026 Employee Terminations”).
In May 2026, the Company determined that the Tarzana facility no longer met the criteria for classification as held for sale and reclassified the asset as held and used. In connection with the reclassification, the Company recognized an impairment charge to reduce the carrying value of the Tarzana facility to the lower of its adjusted carrying amount and fair value (the “2026 Tarzana Charges”).
Restructuring and Impairment Charges, Net
The 2026 Employee Terminations, 2026 Tarzana Charges and 2025 Tarzana Charges are presented within the line item “restructuring and impairment charges, net” in the condensed consolidated statements of operations and comprehensive loss, resulting in a loss of $0.2 million and $1.2 million for the three and six months ended June 30, 2026, respectively, and a loss of $0.5 million and $16.6 million for the three and six months ended June 30, 2025, respectively.
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The following table summarizes the restructuring and impairment loss by category (in thousands):
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| One-time employee termination benefits | $ | $ | $ | $ | |||||||||||||||||||
| Contract terminations | |||||||||||||||||||||||
| Impairment of long-lived assets held for sale and held and used, net | |||||||||||||||||||||||
| Total restructuring and impairment charges, net | $ | $ | $ | $ | |||||||||||||||||||
Restructuring Liability
As a result of the Plan and the 2026 Employee Terminations, a restructuring liability was recorded in the condensed consolidated balance sheets under “Accrued expenses and other current liabilities” and was measured at the amount expected to be paid, or that was paid. During the three and six months ended June 30, 2026, the Company paid nil and $1.0 million of employee benefits, respectively, and expects to pay the remainder of the restructuring costs by the end of 2026.
The following table shows the restructuring liability related to the Plan and the 2026 Employee Terminations (in thousands):
| Employee Benefits | Contract Terminations | Total | ||||||||||||||||||
Restructuring liability as of December 31, 2025 | $ | $ | $ | |||||||||||||||||
| Additions | ||||||||||||||||||||
| Payments | ( | ( | ||||||||||||||||||
Restructuring liability as of June 30, 2026 | $ | $ | $ | |||||||||||||||||
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto as of and for the year ended December 31, 2025 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or the SEC, on March 27, 2026. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “we,” “us” and “our” refer to Instil Bio, Inc. and our consolidated subsidiaries.
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are subject to the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements concerning our strategy, future operations, expectations regarding collaborations and clinical trials, future financial position, future revenues, projected costs, prospects, and plans and objectives of management. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the risks set forth in Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q and in our other filings with the SEC. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements.
Overview
We are a biotechnology company focused on identifying and advancing innovative therapeutic opportunities.
In January 2026, we announced that our wholly owned subsidiary, Axion Bio, Inc., or Axion Bio, was discontinuing development of AXN-2510, our former lead product candidate. We are actively seeking to in-license or acquire and develop additional novel therapeutic candidates in diseases with significant unmet medical need.
Since inception, we have had significant operating losses. Our net loss was $4.3 million for the three months ended June 30, 2026 and $8.5 million for the six months ended June 30, 2026. As of June 30, 2026, we had an accumulated deficit of $735.0 million. As of June 30, 2026, we had cash, cash equivalents, restricted cash, and marketable securities of $69.9 million, which consists of $5.5 million in cash and cash equivalents, $0.3 million in restricted cash, and $64.1 million in marketable securities. We expect to continue to incur net losses for the foreseeable future.
Components of Operating Results
Operating Expenses
In-Process Research and Development
In-process research and development, or IPR&D, expenses include IPR&D acquired as part of in-license payments made to ImmuneOnco for which there is no alternative future use, and are expensed as incurred.
Research and Development
Research and development expenses consist primarily of research and development, manufacturing, monitoring and other services payments and, to a lesser extent, salaries, benefits and other personnel-related costs,
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including stock-based compensation, professional service fees, and facility and other related costs. In addition, research and development expense is presented net of reimbursements from reimbursable tax and expenditure credits and grants from the UK government.
We expect our future research and development expenses to change in line with our potential business development activities and any nonclinical and clinical development activities. Our expenditures on any future nonclinical and clinical development programs are subject to numerous uncertainties in timing and cost to completion. The duration, costs and timing of clinical trials and development of product candidates will depend on a variety of factors, including:
•the scope, rate of progress and expenses of clinical trials and other research and development activities;
•potential safety monitoring and other studies requested by regulatory agencies;
•significant and changing government regulation; and
•the timing and receipt of regulatory approvals, if any.
The process of conducting the necessary clinical research to obtain regulatory approval from the U.S. Food and Drug Administration, or FDA, Medicines and Healthcare Products Regulatory Agency, or MHRA, European Medicines Agency, or EMA, and comparable foreign authorities is costly and time consuming and the successful development of product candidates is highly uncertain. The risks and uncertainties associated with our research and development projects are discussed more fully in the section of this Quarterly Report titled “Risk Factors.” As a result of these risks and uncertainties, we are unable to determine with any degree of certainty the duration and completion costs of our research and development projects, or if, when or to what extent we will generate revenues from the commercialization and sale of any of our product candidates that obtain regulatory approval. We may never succeed in achieving regulatory approval for any product candidates.
General and Administrative
General and administrative expenses consist primarily of compensation and personnel-related expenses, including stock-based compensation, for our personnel in executive, finance and other administrative functions. General and administrative expenses also include professional fees paid for accounting, auditing, legal, tax and consulting services, insurance costs, recruiting costs, travel expenses, facility and other related costs, depreciation, and other general and administrative costs.
We expect to continue to incur expenses as a result of operating as a public company, including expenses related to compliance with the rules and regulations of the SEC, director and officer insurance expenses, and any investor relations related expenses, as well as other administrative and professional services.
Restructuring and Impairment Charges, Net
Restructuring and impairment charges, net for the three months ended June 30, 2026 consisted primarily of an impairment loss recognized upon reclassifying the Tarzana facility to held and used, partially offset by a reversal of previously recognized cost to sell. Restructuring and impairment charges, net for the three months ended June 30, 2025 consisted primarily of contract terminations costs.
Restructuring and impairment charges, net for the six months ended June 30, 2026 consisted primarily of a net remeasurement loss recognized upon reclassifying the Tarzana facility to held and used and employee termination costs, partially offset by a reversal of previously recognized cost to sell. Restructuring and impairment charges, net for the six months ended June 30, 2025 consisted primarily of impairment charges and related estimated cost to sell recognized in connection with classifying our Tarzana facility as held for sale, as well as contract terminations costs.
In January 2023, the Board of Directors approved a restructuring plan, and we announced the consolidation of the ITIL-306 Phase 1 clinical trial, which included contract terminations.
In January 2024, we decided to initiate closure of our UK manufacturing and clinical operations related to our past development of our CoStAR-TIL technology, and in September 2024 we decided to close most of our
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remaining Manchester, UK operations related to our past development of our CoStAR-TIL technology, which resulted in the elimination of the majority of the remaining UK workforce, with the remaining reduction substantially completed by the end of 2024.
Collectively, the restructuring events from 2023 and 2024 are referred to as the “Plan.”
In March 2025, the Board of Directors approved a plan to sell our Tarzana facility, and we listed our Tarzana facility for sale. At such time, we reclassified the facility as a long-lived asset held for sale and incurred impairment charges related thereto, which we refer to as the 2025 Tarzana Charges.
In May 2026, the Board of Directors approved discontinuing our plan to actively market the Tarzana facility for sale, and the Tarzana facility was reclassified from held for sale to held and used. In connection with the reclassification, we recognized an impairment charge to reduce the carrying value of the Tarzana facility to the lower of its adjusted carrying amount and fair value, which we refer to as the 2026 Tarzana Charges.
In January 2026, Axion Bio discontinued development of AXN-2510 and terminated certain employees associated with this program, or the 2026 Employee Terminations.
As a result of the 2026 Employee Terminations and the 2026 Tarzana Charges we incurred restructuring and impairment charges, net of $0.2 million and $1.2 million during the three and six months ended June 30, 2026, respectively.
Interest Income
Interest income consists of interest income from funds held in our cash and cash equivalent accounts, restricted cash and marketable securities.
Interest Expense
Interest expense consists of interest expense on our debt and amortization of loan origination costs.
Other Rental Income
Other rental income consists of rental income related to the Tarzana facility.
Gain on Contract Termination
Gain on contract termination consists of a payment received pursuant to the termination agreement between ImmuneOnco Biopharmaceuticals (Shanghai) Inc., or ImmuneOnco, and Axion Bio related to discontinuing development of AXN-2510.
Other (Expense) Income, Net
Other (expense) income, net consists primarily of foreign exchange remeasurement gain or loss and other expenses and income.
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Results of Operations
Comparison of the Three Months Ended June 30, 2026 and 2025
The following table summarizes our results of operations for the three months ended June 30, 2026 and 2025 (in thousands):
| Three Months Ended June 30, | Change | ||||||||||||||||
| 2026 | 2025 | $ | |||||||||||||||
| Operating expenses: | |||||||||||||||||
| In-process research and development | $ | — | $ | 10,000 | $ | (10,000) | |||||||||||
| Research and development | 270 | 6,743 | (6,473) | ||||||||||||||
| General and administrative | 5,130 | 6,157 | (1,027) | ||||||||||||||
| Restructuring and impairment charges, net | 181 | 540 | (359) | ||||||||||||||
| Total operating expenses | 5,581 | 23,440 | (17,859) | ||||||||||||||
| Loss from operations | (5,581) | (23,440) | 17,859 | ||||||||||||||
| Interest income | 632 | 1,044 | (412) | ||||||||||||||
| Interest expense | (1,582) | (1,582) | — | ||||||||||||||
| Other rental income | 2,242 | 2,242 | — | ||||||||||||||
| Other (expense) income, net | (10) | 342 | (352) | ||||||||||||||
| Net loss | $ | (4,299) | $ | (21,394) | $ | 17,095 | |||||||||||
In-process Research and Development Expenses
In-process research and development expenses were nil and $10.0 million for the three months ended June 30, 2026 and 2025, respectively. The net decrease of $10.0 million was due to the fact that there was no in-license payments for the three months ended June 30, 2026 and a $10.0 million in-license payment to ImmuneOnco pursuant to the license and collaboration agreement between Axion Bio and ImmuneOnco, or the IO Collaboration Agreement, for three months ended June 30, 2025.
Research and Development Expenses
Research and development expenses were $0.3 million and $6.7 million for the three months ended June 30, 2026 and 2025, respectively. The net decrease of $6.4 million was due to:
•$5.0 million decrease in costs related to research and clinical development activities primarily due to discontinuing development of AXN-2510;
•$0.8 million decrease in consulting and professional services fees; and
•$0.6 million decrease in employee-related costs from reduced headcount, consisting primarily of a $0.5 million decrease in wages and benefits, $0.1 million decrease in stock-based compensation expense.
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The following table shows our research and development expenses by program for the three months ended June 30, 2026 and 2025 (in thousands):
| Three months ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| In-process research and development: | |||||||||||
| AXN-2510 | $ | — | $ | 10,000 | |||||||
| Research and development: | |||||||||||
| AXN-2510 | 269 | 6,597 | |||||||||
Other program expenses (1) | 1 | 146 | |||||||||
| Total research and development expenses | 270 | 6,743 | |||||||||
| Total research and development by program | $ | 270 | $ | 16,743 | |||||||
_____________________________________________________________
(1) Other program expenses consist of costs related to our past development of our CoStAR-TIL technology.
General and Administrative Expenses
General and administrative expenses were $5.1 million and $6.2 million for the three months ended June 30, 2026 and 2025, respectively. The net decrease of $1.1 million was primarily due to:
•$0.7 million decrease in costs primarily from stock-based compensation expense; and
•$0.4 million decrease in facility and other office expenses.
Restructuring and Impairment Charges, Net
Restructuring and impairment charges, net were $0.2 million and $0.5 million for the three months ended June 30, 2026 and 2025, respectively. The net decrease of $0.3 million was due to:
•$0.5 million decrease in costs resulting from a termination of a contract; partially offset by
•$0.2 million increase in impairment costs attributable to a $8.1 million impairment loss recognized on the Tarzana facility due to reclassifying the Tarzana facility to held and used, partially offset by a $7.9 million reversal of previously recognized estimated cost to sell.
Interest Income, Interest Expense, Other Rental Income and Other Income (Expense), Net
Interest income, interest expense, other rental income and other income (expense), net was $1.3 million and $2.0 million of income for the three months ended June 30, 2026 and 2025, respectively. The net decrease of $0.7 million was primarily due to:
•$0.4 million decrease in interest income related to our investments; and
•$0.3 million decrease in gain on foreign currency transactions.
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Comparison of the Six Months Ended June 30, 2026 and 2025
The following table summarizes our results of operations for the six months ended June 30, 2026 and 2025 (in thousands):
| Six Months Ended June 30, | Change | ||||||||||||||||
| 2026 | 2025 | $ | |||||||||||||||
| Operating expenses: | |||||||||||||||||
| In-process research and development | $ | — | $ | 10,000 | $ | (10,000) | |||||||||||
| Research and development | 939 | 12,114 | (11,175) | ||||||||||||||
| General and administrative | 10,479 | 15,266 | (4,787) | ||||||||||||||
| Restructuring and impairment charges, net | 1,173 | 16,622 | (15,449) | ||||||||||||||
| Total operating expenses | 12,591 | 54,002 | (41,411) | ||||||||||||||
| Loss from operations | (12,591) | (54,002) | 41,411 | ||||||||||||||
| Interest income | 1,310 | 2,219 | (909) | ||||||||||||||
| Interest expense | (3,134) | (2,680) | (454) | ||||||||||||||
| Other rental income | 4,484 | 4,484 | — | ||||||||||||||
| Gain on contract termination | 1,620 | — | 1,620 | ||||||||||||||
| Other (expense) income, net | (192) | 385 | (577) | ||||||||||||||
| Net loss | $ | (8,503) | $ | (49,594) | $ | 41,091 | |||||||||||
In-process Research and Development Expenses
In-process research and development expenses were nil and $10.0 million for the six months ended June 30, 2026 and 2025, respectively. The net decrease of $10.0 million was due to the fact that there was no in-license payment in the six months ended June 30, 2026 and a $10.0 million in-license payment to ImmuneOnco pursuant to the IO Collaboration Agreement in the six months ended June 30, 2025.
Research and Development Expenses
Research and development expenses were $0.9 million and $12.1 million for the six months ended June 30, 2026 and 2025, respectively. The net decrease in research and development expenses of $11.2 million was primarily due to:
•$8.7 million decrease in costs related to research and clinical development activities primarily due to discontinuing development of AXN-2510;
•$1.8 million decrease in costs from reduced headcount, consisting primarily of a $1.0 million decrease in wages and benefits, a $0.7 million decrease in stock-based compensation expense, and a $0.1 million decrease for other employee-related expenses in relation to our research and development personnel; and
•$0.7 million decrease in consulting and professional service costs.
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The following table shows our research and development expenses by program for the six months ended June 30, 2026 and 2025 (in thousands):
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| In-process research and development: | |||||||||||
| AXN-2510 | $ | — | $ | 10,000 | |||||||
| Research and development: | |||||||||||
| AXN-2510 | 928 | 11,312 | |||||||||
Other program expenses (1) | 11 | 802 | |||||||||
| Total research and development expenses | 939 | 12,114 | |||||||||
| Total research and development by program | $ | 939 | $ | 22,114 | |||||||
______________________________________________________________
(1) Other program expenses consist of costs related to our past development of our CoStAR-TIL technology.
General and Administrative Expenses
General and administrative expenses were $10.5 million and $15.3 million for the six months ended June 30, 2026 and 2025, respectively. The net decrease of $4.8 million was primarily due to:
•$3.0 million decrease in costs from reduced headcount, mainly consisting of a decrease in stock-based compensation expense of $2.6 million, a decrease in wages of $0.3 million, and a decrease in other employee-related expenses of $0.1 million;
•$1.0 million decrease in depreciation and facility costs; and
•$0.8 million decrease in consulting and professional services costs.
Restructuring and Impairment Charges, Net
Restructuring and impairment charges, net were $1.2 million and $16.6 million for the six months ended June 30, 2026 and 2025, respectively. The net change of $15.4 million was primarily due to:
•$16.4 million decrease related to a $0.2 million impairment recognized in 2026 upon reclassifying the Tarzana facility from held for sale to held and used, consisting of a $8.1 million impairment loss partially offset by a $7.9 million reversal of estimated cost to sell, compared to a $16.6 million impairment charge and related estimated cost to sell recognized on the Tarzana facility in 2025, consisting of a $8.7 million impairment loss and $7.9 million related to the estimated cost to sell; partially offset by
•$1.0 million increase in severance payments and benefits continuation costs.
Interest Income, Interest Expense, Other Rental Income, Gain on Contract Termination, and Other Income (Expense), Net
Interest income, interest expense, other rental income, gain on contract termination and other income (expense), net were $4.1 million and $4.4 million of income for the six months ended June 30, 2026 and 2025, respectively. The net decrease of $0.3 million was primarily due to:
•$0.9 million decrease in interest income related to our investments;
•$0.6 million increase in foreign currency transaction losses; and
•$0.4 million increase of interest expense from our note payable; partially offset by
•$1.6 million increase in gain on contract termination.
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Liquidity and Capital Resources
Sources of Liquidity
Since our inception, we have not generated any revenue from product sales and we have incurred significant operating losses. We do not have any products that have achieved regulatory marketing approval and we do not expect to generate revenue from commercial sales of any product candidate for at least several years, if ever.
Prior to our initial public offering, or IPO, we funded our operations primarily through the issuance and sale of convertible preferred stock. From our inception through March 2021, prior to our IPO, we raised net cash proceeds of $380.1 million from the issuance and sale of our convertible preferred stock.
In the first quarter of 2021, we raised net proceeds of $339.0 million in our IPO, pursuant to which we sold an aggregate of 920,000 shares of common stock.
In June 2022, our wholly owned subsidiaries, Complex Therapeutics Mezzanine LLC and Complex Therapeutics LLC, entered into a mortgage construction loan and mezzanine construction loan, or together, the Construction Loans, secured by Complex Therapeutics LLC’s Tarzana, California land and building. Construction of the Tarzana facility was subsequently completed and in 2024 the facility was leased to AstraZeneca Pharmaceuticals LP, or Tenant. The initial base rent under the lease to Tenant was approximately $0.4 million per month (approximately $7.5 million annually) and the base rent escalates by 3% per annum. On December 20, 2024, or the Closing Date, Complex Therapeutics LLC entered into a Term Loan Agreement and related loan documents with Midland National Life Insurance Company, or Midland, pursuant to which Midland loaned Complex Therapeutics LLC a term loan in the principal amount of $85.6 million, or the 2024 Loan, to refinance the Construction Loans secured by the Tarzana facility. Substantially all of the 2024 Loan proceeds were used to repay in full the Construction Loans.
On November 13, 2024, we filed a shelf registration statement on Form S-3 with the SEC, which the SEC declared effective on November 21, 2024. Pursuant to our shelf registration statement we may, from time to time, sell up to an aggregate of $200 million of our common stock, preferred stock, debt securities or warrants.
In March 2025, we entered into an Open Market Sale AgreementSM, with Jefferies LLC, or Jefferies, as sales agent, under which we may offer and sell, from time to time, shares of our common stock, through Jefferies, with an aggregate offering price of up to $100 million by methods deemed to be an “at the market offering,” or the ATM Program.
As of June 30, 2026, we have sold an aggregate of 185,837 shares of our common stock under the ATM Program for net proceeds of $6.6 million after deducting commissions and expenses of approximately $0.3 million. The remaining availability under the ATM Program as of June 30, 2026 was approximately $93.1 million.
As of June 30, 2026, we had cash, cash equivalents, restricted cash, and marketable securities of $69.9 million, which consisted of $5.5 million in cash and cash equivalents, $0.3 million in restricted cash, and $64.1 million in marketable securities. Cash in excess of immediate requirements is invested in accordance with our investment policy, primarily with a view to liquidity and capital preservation.
Future Funding Requirements
In December 2024, Complex Therapeutics LLC entered into the 2024 Loan to refinance the Construction Loans secured by the Tarzana facility. As of June 30, 2026, the outstanding principal amount under the 2024 Loan was $85.6 million and unamortized debt issuance costs were $0.4 million. The 2024 Loan bears interest at a fixed rate of 6.35% per annum, with interest-only payments during the term of the 2024 Loan and the principal balance due in full at maturity. The 2024 Loan may be prepaid in whole but not in part. There is no prepayment fee due if the 2024 Loan is prepaid after the 12-month anniversary of the Closing Date. The 2024 Loan has a term of two years with a one-year extension option. The extension option is subject to certain conditions being met, including: (a) no potential default or event of default, (b) payment of a 0.35% extension fee and the costs and expenses of Midland
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incurred in connection with the extension, (c) replenishing of all reserve funds as reasonably determined by Midland, and (d) compliance with minimum debt yield and debt service coverage ratio requirements. We expect Complex Therapeutics LLC to meet all requirements necessary to exercise the extension to extend the maturity by one year to January 2028, and we expect that written notice to extend the loan will be provided as early as the 2024 Loan permits, which is no sooner than one hundred twenty days from its maturity date and no later than thirty days before its maturity date.
Based on our current operating plan, we believe our existing cash, cash equivalents, restricted cash and marketable securities will be sufficient to fund our operating expenses and capital expenditure requirements beyond 2027.
The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We evaluated our ability to continue as a going concern for the twelve months following the issuance of the condensed consolidated financial statements. As discussed above and in Note 10 to the accompanying condensed consolidated financial statements, the 2024 Loan is due in January 2027, for total principal of $85.6 million, which is in excess of cash, cash equivalents, and marketable securities on hand as of June 30, 2026, which we concluded is an indicator of substantial doubt about our ability to continue as a going concern.
We plan to exercise our contractual right to extend the maturity of the 2024 Loan to January 2028. In addition, we may seek to refinance or restructure the 2024 Loan, sell the Tarzana facility to repay the 2024 Loan, or seek additional financing in the form of equity or debt instruments. There can be no assurance that new financing or other forms of funding will be available on favorable terms or at all. We concluded that management’s plans, including Complex Therapeutics LLC’s contractual right to exercise the extension option to January 2028, which is within Complex Therapeutics LLC’s control, alleviate the conditions that raise substantial doubt about our ability to continue as a going concern.
We use our cash to fund operations, primarily to fund our business development, research and development expenditures and related personnel costs. We expect our expenses to continue to be significant as we invest in research and development activities, particularly if we in-license or acquire product candidates, advance one or more product candidates into later stages of development and conduct clinical trials, seek regulatory approvals for and commercialize any product candidates that successfully complete clinical trials, hire personnel and invest in and grow our business, expand and protect our intellectual property portfolio, and operate as a public company. Because of the numerous risks and uncertainties associated with acquiring product candidates, and the research, development and commercialization of product candidates, we are unable to estimate the exact timing and amount of our funding requirements. Our future operating expenditures will depend on many factors, including:
•the extent to which we acquire or in-license other companies’ product candidates and technologies;
•the scope, rate of progress, costs and results of future clinical and preclinical development activities;
•the costs, timing and outcome of regulatory review of any product candidates, and the number of trials required for regulatory approval;
•the cost of manufacturing any product candidates, as well as any products we successfully commercialize;
•the cost of commercialization activities of any product candidates, if approved for sale, including marketing, sales and distribution costs;
•the timing, receipt and amount of sales of any product candidates, if approved;
•our ability to establish and maintain strategic collaborations, licensing or other arrangements and the financial terms of any such arrangements, including the timing and amount of any future milestone, royalty or other payments due under any such agreement;
•any product liability or other lawsuits or claims;
•the expenses needed to attract, hire and retain skilled personnel;
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•our investments in our operational, financial and management information systems;
•the costs associated with operating as a public company;
•the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing any intellectual property portfolio we may acquire;
•costs related to the Tarzana facility; and
•any delays or issues resulting from the impact of adverse geopolitical and economic conditions.
Until we can generate substantial revenue from sales of a product candidate, if that occurs, we plan to fund our operations through equity offerings, debt financings, leasing income, or other capital sources. This may include strategic collaborations or other arrangements with third parties. Additional funds may not be available to us on acceptable terms or at all. If we raise additional funds by issuing equity or convertible debt securities, our stockholders will suffer dilution, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing, if available, may involve restrictive covenants limiting our flexibility in conducting future business activities, and, in the event of insolvency, debt holders would be repaid before holders of our equity securities receive any distribution of our corporate assets. If we raise funds through collaborations or other similar arrangements with third parties, we may have to relinquish valuable rights to technologies, future revenue streams, product candidates or research programs or grant licenses on terms that may not be favorable to us and/or may reduce the value of our common stock. Our ability to raise additional funds may be adversely impacted by worsening global economic conditions and the recent disruptions to, and volatility in, the credit and financial markets in the United States and worldwide resulting from, among other things, heightened inflation, fluctuations in interest rates, military conflicts, including in Ukraine and the Middle East, tariffs and recent and potential trade wars. If we fail to obtain necessary capital when needed on acceptable terms, or at all, it could force us to delay, limit, reduce or terminate our product development programs, commercialization efforts or other operations. See “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q and “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
Cash Flows
The following table sets forth the significant sources and uses of cash for the periods set forth below (in thousands):
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by (used in): | |||||||||||
| Cash used in operating activities | $ | (5,979) | $ | (18,986) | |||||||
| Cash provided by investing activities | 4,974 | 9,211 | |||||||||
| Cash provided by financing activities | — | 6,914 | |||||||||
| Net decrease in cash, cash equivalents, and restricted cash | $ | (1,005) | $ | (2,861) | |||||||
Cash Flows from Operating Activities
Cash used in operating activities for the six months ended June 30, 2026 was $6.0 million, which consisted of the net loss of $8.5 million, $0.8 million net change to our net operating assets and liabilities, and $3.3 million in non-cash charges and other adjustments to reconcile net loss to net cash used in operating activities. The non-cash charges primarily consisted of impairment of property, plant and equipment and estimated cost to sell, net of $0.2 million, stock-based compensation expense of $2.0 million, non-cash interest expense of $0.4 million, accretion on invested securities of $0.3 million, depreciation expense of $0.3 million, non-cash lease expense of $0.1 million, and foreign exchange remeasurement of $0.1 million. The net change in our operating assets and liabilities was primarily due to a decrease of approximately $1.6 million in accrued expenses and other current liabilities, an increase of $0.6 million in accrued rent receivable, and an increase of $0.2 million in operating lease liabilities, partially offset by a
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decrease of $1.4 million in prepaid expenses and other current assets and a decrease of $0.2 million in other long-term assets.
Cash used in operating activities for the six months ended June 30, 2025 was $19.0 million, which consisted of the net loss of $49.6 million and a $1.4 million net change to our net operating assets and liabilities, partially offset by $32.0 million in non-cash charges and other adjustments to reconcile net loss to net cash used in operating activities. The non-cash charges primarily consisted of impairment of property, plant and equipment and estimated cost to sell, net of $16.6 million, in-process research and development expenses of $10.0 million, stock-based compensation expense of $5.3 million, depreciation expense of $0.5 million, and non-cash interest expense of $0.4 million, partially offset by a change in foreign exchange remeasurement of $0.6 million and accretion on invested securities of $0.2 million. The net change in our operating assets and liabilities was primarily due to an decrease of $3.2 million in accrued expenses and other current liabilities, an increase of $2.7 million in accrued rent receivable, an decrease of $1.5 million in operating lease liabilities, and a decrease of $0.1 million in accounts payable, partially offset by a decrease of $5.8 million in prepaid expenses and other current assets and a decrease of $0.3 million in other long-term assets.
Cash Flows from Investing Activities
Cash provided by investing activities for the six months ended June 30, 2026 was $5.0 million, consisting of $5.0 million of cash provided by marketable securities investments.
Cash provided by investing activities for the six months ended June 30, 2025 was $9.2 million, consisting primarily of $8.8 million of cash provided by marketable securities investments and $0.4 million of cash received from the sale of held for sale assets in the UK.
Cash Flows from Financing Activities
Cash provided by financing activities for the six months ended June 30, 2026 was nil.
Cash provided by financing activities for the six months ended June 30, 2025 was $6.9 million, and primarily consisted of net proceeds from our ATM Program of $6.6 million and net proceeds from the exercise of stock options of $0.5 million, partially offset by loan agreement closing costs of $0.2 million.
Critical Accounting Policies and Estimates
This management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed financial statements, as well as the reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
For a description of critical accounting policies that require significant judgments and estimates during the preparation of our financial statements, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” and Note 2 to our consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2025 and Note 2 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Recent Accounting Pronouncements
Information regarding recent accounting pronouncements applicable to us is included in Note 2 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
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Emerging Growth Company Status and Smaller Reporting Company Status
We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or JOBS Act. For so long as we remain an emerging growth company, we are permitted and intend to rely on certain exemptions from various public company reporting requirements, including not being required to have our internal control over financial reporting audited by our independent registered public accounting firm pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and any golden parachute payments not previously approved. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock.
In addition, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to avail ourselves of this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.
We will remain an emerging growth company until the earliest of (i) December 31, 2026, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the last day of the fiscal year in which we are deemed to be a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock held by non-affiliates exceeded $700.0 million as of the last business day of the second fiscal quarter of such year or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.
We are also a “smaller reporting company,” as defined in Rule 12b-2 under the Exchange Act. We may continue to be a smaller reporting company if either (i) the market value of our shares held by non-affiliates is less than $250.0 million or (ii) our annual revenue was less than $100.0 million during the most recently completed fiscal year and the market value of our shares held by non-affiliates is less than $700.0 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company, we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are a smaller reporting company as defined by Item 10 of Regulation S-K and are not required to provide the information otherwise required under this item.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2026, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that such
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information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
Our management, including our Chief Executive Officer and Chief Financial Officer, do not expect that our disclosure controls or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
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Part II. Other Information
Item 1. Legal Proceedings
From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. We are not currently subject to any material legal proceedings.
Item 1A. Risk Factors
RISK FACTORS
There are no material changes to the risk factors set forth in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025, except for the following.
We have incurred significant losses related to our Tarzana, California facility and may incur additional significant losses related to the facility in the future.
To date, we have recorded $58.4 million in impairment charges on long-lived assets related to our facility in Tarzana, California. Significant impairment charges related to our Tarzana facility were recorded in the third quarter of 2023, the first quarter of 2025 and, most recently, in the second quarter of 2026. We may incur additional losses due to impairment charges related to the Tarzana facility. In addition, in the event the Tarzana facility is sold, we may not recover its carrying value and may suffer additional significant losses. Further, it is possible that we will not be able to sell the facility for an amount equal to or greater than the amount of secured debt encumbering the facility.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
(a) Recent Sales of Unregistered Equity Securities
None.
(b) Use of Proceeds
Not applicable.
(c) Issuer Purchases of Equity Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Director and Officer Trading Arrangements
None of our directors or executive officers adopted terminated
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Item 6. Exhibits
The exhibits listed on the Exhibit Index are either filed or furnished with this report or incorporated herein by reference.
Exhibit Number | Description of Exhibit | |||||||
| 3.1 | Amended and Restated Certificate of Incorporation, as amended (incorporated herein by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K (File No. 001-40215), filed with the SEC on March 21, 2024). | |||||||
| 3.2 | Amended and Restated Bylaws (incorporated herein by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-40215), filed with the SEC on March 23, 2021). | |||||||
| 31.1* | Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
| 31.2* | Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||
| 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 | The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations and Comprehensive Loss, (iii) the Condensed Consolidated Statements of Stockholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to the Condensed Consolidated Financial Statements. | |||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
* Filed herewith.
# These certifications are being furnished solely to accompany this quarterly report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and are not to be incorporated by reference into any filing of the registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
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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.
| INSTIL BIO, INC. | |||||||||||
August 13, 2026 | By: | /s/ Sandeep Laumas | |||||||||
Sandeep Laumas Chief Financial Officer and Chief Business Officer (On behalf of the registrant and in his capacity as Principal Financial Officer and Principal Accounting Officer) | |||||||||||
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