Financial Analysis

15. Commitments and Contingencies Legal Proceedings From time to time, the Company may become involved in various legal proceedings, including those that may arise in the ordinary course of business. The Company believes there is no litigation pending that could have, individually, or in the aggregate, a material adverse effect on the results of its operations, financial condition or cash flows. Xeris Agreements In May 2024, the Company and Xeris Pharmaceuticals, Inc. (Xeris) entered into a collaboration and license agreement (Collaboration and License Agreement) to develop and commercialize glucagon products for use in the Companys pump-based systems. Under the Collaboration and License Agreement, the Company received a worldwide, exclusive, sublicensable license to certain Xeris technology for use in the field of chronic glycemic control, as well as a manufacturing license subject to a future technology transfer and commercial supply arrangement. In consideration for the rights granted under the agreement, the Company paid Xeris an upfront fee of $ 0.5 million and a development milestone payment of $ 3.0 million, both of which were recognized as research and development expenses when incurred. The Company is also required to pay Xeris tiered royalties in the low double-digit percentage range on future net sales of licensed products, subject to customary reductions. In connection with clinical development activities, the Company entered into the Clinical Supply Agreement wit …

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12. Employee Benefit Plan The Company maintains a 401(k) retirement plan (the 401(k) Plan) for the benefit of eligible employees. Each participant may elect to contribute up to 100 % of his or her compensat ion to the 401(k) Plan e ach year, subject to certain Internal Revenue Service limitations. Under the terms of the Plan, the Company matches 100 % of the first 6 % of employee contributions. During the six months ended June 30, 2026 and 2025, the Company contributed $ 1.9 million and $ 1.4 million, respectively, to the 401(k) Plan. …

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The following table summarizes the Companys disaggregated revenues: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (in thousands) DME channel iLet (1) $ 12,651 $ 13,414 $ 22,740 $ 23,042 Single-use products 7,762 5,230 14,596 9,429 Total DME channel 20,413 18,644 37,336 32,471 PBP channel iLet (1) 221 205 686 711 Single-use products 11,379 4,389 21,617 7,695 Total PBP channel 11,600 4,594 22,303 8,406 Total net sales $ 32,013 $ 23,238 $ 59,639 $ 40,877 (1) iLet includes the over-time recognition related to software updates and mobile app access. …

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11. Stock-Based Compensation 2016 Stock Incentive Plan The Companys 2016 Stock Incentive Plan, as amended (the 2016 Plan), previously provided for the grant of stock options and restricted stock awards to employees, officers, directors and consultants. Following the adoption of the 2025 Equity Incentive Plan in connection with the Companys IPO in January 2025, no further awards are granted under the 2016 Plan. Outstanding awards previously granted under the 2016 Plan continue to be governed by their original terms. 2025 Equity Incentive Plan The Company maintains the 2025 Equity Incentive Plan (the 2025 Plan), which became effective in January 2025. The 2025 Plan provides for the grant of incentive stock options, restricted stock units and other equity-based awards to employees, directors and consultants. The 2025 Plan replaced the 2016 Plan, and no further awards are granted under the 2016 Plan. A total of 12,016,744 shares of common stock were initially reserved for issuance under the 2025 Plan. As of June 30, 2026, 14,234,787 shares of common stock were reserved for issuance under the 2025 Plan. Stock Options The following table presents, on a weighted-average basis, the assumptions used in the Black-Scholes option pricing model to determine the grant-date fair value of stock options granted: Six Months Ended June 30, 2026 2025 Weighted average grant date fair value per share $ 8.00 $ 13.99 Risk-free interest rate 3.65 % 4.26 % Expected term (in years) 5.84 5.97 Expected v …

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"4. Financial Instruments and Fair Value Measurements The following tables present the Companys fair value hierarchy for its assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements at June 30, 2026 Level 1 Level 2 Level 3 Total Assets (in thousands) Cash equivalents: Money market fund $ 41,460 $ $ $ 41,460 Restricted cash: Money market fund 100 100 Short-term investments U.S. Treasury securities 136,171 136,171 Long-term investments U.S. Treasury securities 44,648 44,648 Total assets $ 222,379 $ $ $ 222,379 Fair Value Measurements at December 31, 2025 Level 1 Level 2 Level 3 Total Assets (in thousands) Cash equivalents: Money market fund $ 26,249 $ $ $ 26,249 Restricted cash: Money market fund 100 100 Short-term investments U.S. Treasury securities 187,549 187,549 Long-term investments U.S. Treasury securities 45,431 45,431 Total assets $ 259,329 $ $ $ 259,329 Money market funds and U.S. Treasury securities were valued by the Company based on quoted market prices, which represent a Level 1 measurement within the fair value hierarchy. There were no changes to the valuation methods during the six months ended June 30, 2026 and 2025 . The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between Level 1 or Level 2 during the six months ended June 30, 2026 and 2025. Warrant Liabilities In connection with the Companys initial public offering (""IPO"") in January 2025, all outstanding …

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13. Income Taxes During the six months ended June 30, 2026 and 2025 , the Company did no t record income tax benefits for the net operating losses (NOLs) incurred or for the research and development tax credits generated in each year, due to its uncertainty of realizing a benefit from those items. The Company does not have any foreign operations and therefore has no foreign income taxes. The Company files income tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. The Company is open to future tax examination under statute by the Internal Revenue Service (the IRS) from 2022 to present and by most state tax authorities from 2021 to present. However, to the extent allowed by law, the taxing authorities may have the right to examine periods where NOLs and research and development credits were generated and carried forward, and make adjustments to the amount of the NOL and research credits carryforwards. …

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14. Leases In November 2023, the Company entered into a new lease agreement in San Diego, California. This lease expires in February 2027 and includes an option to extend the lease term for an additional five years . The option to extend the lease term was not included in the right-of-use asset and lease liability as it was not reasonably certain of being exercised. In September 2024, the Company amended its lease for office space and a manufacturing facility in Irvine, California to include two renewal options. The Company is reasonably certain it will exercise one of these options, extending the lease term from May 2027 to June 2032 , which has been factored into the lease liability. As the amendment only resulted in the extension of the lease term, it did not meet the criteria to be accounted for as a separate contract. Accordingly, the right-of-use asset and lease liability were remeasured as of the effective date of the amendment, resulting in the recording of an additional right-of-use asset and lease liability of $ 3.8 million. In October 2024, the Company entered into a lease agreement for an additional office suite to expand its office space in San Diego, California, which expires in March 2027 . As a result, the Company recognized operating lease right-of-use asset and associated operating lease liability of $ 0.2 million on the balance sheets in 2024. In September 2025, the Compa ny's sublease expired and the Company entered into a separate sublease agreement in an …

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"Recently Adopted Accounting Pronouncements In July 2025, FASB issued ASU 2025-05, Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast as part of estimating expected credit losses on current accounts receivable and current contract assets arising from revenue transactions. The Company adopted ASU 2025-05 on January 1, 2026 . The adoption of this guidance did no t have a material impact on the Companys financial statements. Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03) , and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (""ASU 2025-01""). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim per …

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3. Revenue The Company disaggregates net sales by product category and reimbursement channel, which the Company believes provides a meaningful depiction of how the nature, timing and uncertainty of net sales are affected by economic factors. During the three and six months ended June 30, 2026 and 2025 , the Companys revenues were predominantly generated from sales of the iLet. The iLet requires the use of separately purchased single-use products which include cartridges for storing and delivering insulin, and infusion sets that connect the iLet to the users body. These single-use products generate recurring revenue for the Company, as these are typically replaced by the end-user every 2 - 3 days or as directed by a healthcare provider . The Companys customers are distributors and pharmacies who sell these products to insulin-requiring PWD, through the durable medical equipment (DME) and the pharmacy benefit plan (PBP) reimbursement channels, which entail differing payment outlays. For the three and six months ended June 30, 2026 and 2025, the majority of the Companys sales were through the DME channel. The following table summarizes the Companys disaggregated revenues: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) (in thousands) DME channel iLet (1) $ 12,651 $ 13,414 $ 22,740 $ 23,042 Single-use products 7,762 5,230 14,596 9,429 Total DME channel 20,413 18,644 37,336 32,471 PBP channel iLet (1) 221 205 686 711 Single-use products 11, …

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"2. Significant Accounting Policies Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, certain judgments regarding revenue recognition, including variable consideration, inventory valuation, warranty reserve and valuation of stock-based compensation awards. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant assumptions that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates as there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. Short-Term Investments The Company classifies its short-term investments as available-for-sale securities. Available-for-sale securities are carried at fair value with net unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders equity and as a component of other comprehensive income (loss) within the stateme …

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