Financial Analysis

Note 6. Commitments and Contingencies The Company has operating leases for its office and laboratory space in San Diego, California. Rent expense was $ 1.3 million and $ 2.6 million for the three and six months ended June 30, 2026, respectively.

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Note 3. Fair Value Measurements The following tables show the Companys cash equivalents measured at fair value as of December 31, 2025 and June 30, 2026 (in thousands): June 30, 2026 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market funds $ 94,671 $ $ $ 94,671 Total $ 94,671 $ $ $ 94,671 December 31, 2025 Level 1 Level 2 Level 3 Total Assets: Cash equivalents Money market funds $ 135,227 $ $ $ 135,227 Total $ 135,227 $ $ $ 135,227 The carrying amounts of the Companys accounts payable, accrued expenses and accrued compensation approximate fair value due to their short maturities. None of the Companys non-financial assets or liabilities are measured at fair value on a non-recurring basis. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. …

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Recently Issued Accounting Pronouncements There were no significant updates not already disclosed in the Companys audited financial statements for the years ended December 31, 2024 and 2025 to the recently issued accounting standards for the three months ended June 30, 2026 . Although there are several other new accounting pronouncements issued by the FASB, the Company does not believe any of those accounting pronouncements have had or will have a material impact on its financial position or operating results. …

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Note 7. Segment Information The Company operates and manages its business as one reportable and operating segment, which is the business of designing and developing novel small molecule product candidates. The Companys chief operating decision maker is its Chief Executive Officer, who assesses performance of the segment based on net loss, which includes evaluating the progress of ongoing clinical trials. The measure of segment assets is reported on the balance sheet as total assets. All long-lived assets are maintained in the United States. The following table contains information on segment profit or loss, including significant segment expenses (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Operating expenses: Research and development expenses BH-30643 $ 8,966 $ 3,827 $ 18,516 $ 5,608 BH-30236 1,967 1,339 3,714 2,388 BH-501284 2,045 61 2,629 61 Other projects 57 645 67 1,652 Non project specific research and development expenses 8,320 6,658 16,330 12,393 General and administrative expenses 3,315 1,573 5,521 3,455 Other income 912 859 2,011 1,835 Net loss $ 23,758 $ 13,244 $ 44,766 $ 23,722 …

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Note 2. Summary of Significant Accounting Policies The Companys significant accounting policies are disclosed in the audited financial statements as of and for the years ended December 31, 2024 and 2025, included in the Companys final prospectus dated August 7, 2026 related to its IPO filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended. Since the date of those financial statements, there have been no changes to its significant accounting policies, except where noted below. Use of Estimates The preparation of the Companys unaudited condensed financial statements requires the Company to make estimates and assumptions that impact the reported amounts of assets, liabilities and expenses and the disclosure of contingent assets and liabilities in the unaudited condensed financial statements and accompanying notes. Such estimates include the estimated incremental borrowing rate for the determination of the Companys operating lease right-of-use assets, valuation of stock-based awards, fair value of common stock prior to the Company's IPO, and the accrual of research and development expenses. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Companys historical experience, knowledge of current events, and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Common Stock Valuation Due to the absence of an active market for the Companys common stoc …

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Note 5. Convertible Preferred Stock and Stockholders Deficit Stockholders Deficit As of June 30, 2026 , under the Companys Amended and Restated Certificate of Incorporation, the Company had a total of 195,552,612 shares of capital stock authorized for issuance, consisting of 110,000,000 shares of common stock, par value of $ 0.0001 per share, and 85,552,612 shares of convertible preferred stock, par value of $ 0.0001 per share. Convertible Preferred Stock In 2020, the Company issued 2,134,242 shares of its Series Angel convertible preferred stock at a price of $ 0.94 per share, resulting in aggregate gross proceeds of $ 2.0 million, and incurred immaterial issuance costs. In 2021, the Company issued 5,679,965 shares of its Series A convertible preferred stock at a price of approximately $ 12.50 per share, resulting in aggregate gross proceeds of $ 71.0 million, and incurred immaterial issuance costs. In 2023, 2024 and 2025, the Company issued an aggregate of 10,444,753 shares of Series B convertible preferred stock at a price of $ 17.63 per share resulting in aggregate gross proceeds of $ 184.2 million and incurred $ 0.4 million of total issuance costs. As of June 30, 2026, the Companys Series Angel, Series A and Series B convertible preferred stock have been classified as temporary equity in the accompanying balance sheets given that the holders of the convertible preferred stock could cause certain events to occur that are outside of the Companys control whereby the Company …

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Note 8. Subsequent Events For the purposes of the condensed financial statements as of June 30, 2026, and the three and six months then ended, the Company has evaluated the subsequent events through September 18, 2026, the date the condensed financial statements were issued. On July 31, 2026, the Company effected a 1-for-4.6855 reverse stock split of its common stock and convertible preferred stock. The par value and the authorized shares of the common stock and convertible preferred stock were not adjusted as a result of the reverse stock split. These accompanying condensed financial statements and notes to the condensed financial statements give retroactive effect to the reverse stock split for all periods presented. On August 10, 2026, the Company completed its IPO, pursuant to which it issued and sold 9,375,000 shares of common stock at a public offering price of $ 16.00 per share (the IPO Price ). The aggregate gross proceeds of the IPO were $ 150.0 million before deducting underwriting discounts, commissions, and offering expenses of $ 15.3 million, for aggregate net proceeds from the IPO of $ 134.7 million. In addition, the Company granted the underwriters an option for a period of 30 days to purchase up to 1,406,250 additional shares of common stock. On August 25, 2026 the underwriters partially exercised their 30-day option and purchased an additional 1,141,240 shares of the Companys common stock at the IPO Price, upon which the Company received net proceeds of appro …

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