Financial Analysis

13. Commitments and Contingencies 401(k) Plan The Company maintains a defined-contribution plan under Section 401(k) of the Internal Revenue Code of 1986 (the 401(k) Plan). The 401(k) Plan covers all employees who meet defined minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Matching contributions to the 401(k) Plan may be made at the discretion of management. For the three and six months ended June 30, 2026 and June 30, 2025, the Company has not recorded any expense related to 401(k) Plan match contributions. Indemnification Agreements In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with each of its directors and executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or executive officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of s …

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7. Convertible Notes Payable In October 2024, the Company entered into a Convertible Note Purchase Agreement (the Note Purchase Agreement) with a series of investors, pursuant to which the Company issued convertible notes with an initial principal amount of $37.5 million (of which $15.0 million was from a related party) (the Convertible Notes). The principal amount and all accrued interest of the Convertible Notes would automatically convert into the Pre-Merger Crescents common stock or preferred stock in connection with the closing of a Next Equity Financing (as defined in the Note Purchase Agreement) or other events (e.g., a sale of substantially all Company assets, a merger, etc.). The Convertible Notes accrued interest at a rate of 12.0% per annum, compounded annually. All unpaid interest and principal was scheduled to mature on December 31, 2026 (the Maturity Date). Prepayment was not permitted without the prior written consent of the majority of the holders of the Convertible Notes. The principal payment along with the accrued interest on each Convertible Note was due in full on the Maturity Date. Pursuant to the Note Purchase Agreement, the Company had the right to sell and issue additional Convertible Notes up to an aggregate principal amount equal to $37.5 million, in addition to the $37.5 million of initial principal amount of the Convertible Notes for a total aggregate principal amount of up to $75.0 million. The Company assessed all terms and features of the Conve …

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3. Fair Value of Financial Instruments The Company measures the following financial assets at fair value on a recurring basis. There were no transfers between levels of the fair value hierarchy during any of the periods presented. The following tables set forth the Companys financial assets carried at fair value categorized using the lowest level of input applicable to each financial instrument as of June 30, 2026 and December 31, 2025 (in thousands): June 30, 2026 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 156,272 $ $ $ 156,272 Total Assets $ 156,272 $ $ $ 156,272 December 31, 2025 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 124,522 $ $ $ 124,522 Total Assets $ 124,522 $ $ $ 124,522 Cash equivalents consist of money market funds, which were valued by the Company based on quoted market prices, which represents a Level 1 measurement within the fair value hierarchy. The Company did not hold any financial liabilities carried at fair value as of June 30, 2026 and December 31, 2025. The Company re-measures the warrant liability (as discussed in Note 9) each reporting period and records changes in the fair value through research and development expenses on the Companys consolidated statements of operations. The following table shows the changes in fair value measurements using significant unobservable inputs (Level 3) for the warrant liability during the three and six months ended June 30, 2026 and June 30, 2025: Description Three Months Ended June 30 …

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10. Income Taxes There was no income tax provision recorded for the three and six months ended June 30, 2026 and June 30, 2025 and, therefore, the Companys effective income tax rate was 0.0% for the three and six months ended June 30, 2026 and June 30, 2025. The effective income tax rate for the three and six months ended June 30, 2026 and for the three and six months ended June 30, 2025 differed from the 21% federal statutory rate due primarily to the valuation allowance maintained against the Companys net deferred tax assets. …

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12. Leases In May 2025, the Company entered into a noncancelable operating sublease agreement with Nano Dimension USA Inc. (Sublandlord) whereby the Company sublets approximately 25,000 square feet of office space located in Waltham, Massachusetts (Waltham Sublease) . The sublease commencement date was June 1, 2025, with an initial term of 45 months . Lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate when measuring operating lease liabilities as discount rates were not implicit or readily determinable. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. As of June 30, 2026, the Company had $1.3 million of operating lease ROU assets, short term lease liabilities of $0.5 million and long term lease liability of $1.0 million on its condensed consolidated balance sheets. As of June 30, 2026, the operating lease arrangement had a remaining lease term of 2.7 years and a discount rate of 10.6%. As of June 30, 2026, the total remaining operating lease payments included in the measurement of lease liabilities was as follows (in thousands): Period ended December 31 2026 (remainder of the year) $ 297 2027 609 2028 633 2029 107 Total undiscounted lease payments 1,646 Less: imputed interest ( …

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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). The amendments in ASU 2024-03 require public entities to disclose specified information about certain costs and expenses. ASU 2024-03 is effective for the Companys annual reporting period beginning after December 15, 2026 and interim reporting periods beginning after December 27, 2027, with early adoption permitted. The Company is currently evaluating the impact of this standard on its financial statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (ASU 2025-11). The amendments in ASU 2025-11 clarify interim disclosure requirements. ASU 2025-11 is effective for the Companys annual reporting period beginning after December 15, 2027 and interim reporting periods beginning after December 15, 2028, with early adoption permitted. The Company is currently evaluating the impact of this standard on its financial statements. …

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15. Related Party Transactions Paragon and Parascent each beneficially own less than 5% of the Companys share capital through their respective holdings of the Companys ordinary shares. Fairmount beneficially owns more than 5% of the Companys capital, currently has two representatives appointed to the Board and beneficially owns more than 5% of Paragon. Fairmount appointed Paragons board of directors and has the contractual right to approve the appointment of any executive officers of Paragon. The Company determined Paragon and Parascent were related parties based on the nature of these relationships. The following is a summary of related party accounts payable and other current liabilities (in thousands): As of June 30, 2026 As of December 31, 2025 Paragon accrued research and development $ $ 139 Paragon accrued general and administrative 1 Total $ $ 140 …

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17. Segment Reporting The Company has one reportable segment relating to the research and development of its research programs, CR-001, CR-002, and CR-003. The Companys CODM, its Chief Executive Officer, manages the Companys operations on a company-wide basis for the allocation of resources and the assessment of performance. The Companys measure of segment profit or loss used to assess performance and allocate resources is net loss and comprehensive loss. Although the Companys financial reporting package that is reviewed and approved by the CODM disaggregates significant expenses such as program-level external research and development costs, personnel costs, including share-based compensation expense, and professional and consulting fees, all decisions made by the CODM are based upon reviewing operating metrics and performance indications at the Company-wide level. The CODM uses net loss to evaluate loss generated from the Companys business activities in deciding how to allocate company resources and monitoring budget versus actual results. Assets are also managed on a Company-wide basis. The table below is a summary of the segment loss, including significant segment expenses (in thousands): Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 License revenue $ $ 1,039 $ $ Less: CR-001 external research and development costs 6,305 11,384 3,415 9,683 CR-002 external research and development costs 6,111 …

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2. Basis of Presentation and Summary of Significant Accounting Policies Significant accounting policies The Companys significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC and have not materially changed during the six months ended June 30, 2026. Use of Estimates The preparation of the Companys financial statements in conformity with U.S. GAAP requires management to make estimates, assumptions, and judgments that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected within these financial statements include but are not limited to research and development expenses and any applicable prepaid or accrued costs and the valuation of share-based compensation awards and related expenses. The Company bases its estimates on known trends and other market-specific or other relevant factors 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. Actual results may differ materially from those estimates or assumptions. Research and Development Contract Costs Accruals The Company records the costs associated with research studies and manufacturing development as incurred. These costs are a significant component of the Companys …

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9. Share-Based Compensation 2024 Equity Incentive Plan The Crescent Biopharma, Inc. 2024 Equity Incentive Plan (2024 Plan) was adopted by the board of directors of Pre-Merger Crescent on September 19, 2024. The 2024 Plan provided for Pre-Merger Crescent to grant stock options, restricted stock awards, restricted stock units, and other stock-based awards to employees, officers, directors, consultants, and advisors. Equity Incentive Stock options granted under the 2024 Plan generally vest over four years, subject to the participants continued service, and expire after ten years, although stock options have been granted with vesting terms less than four years. As of June 30, 2026, there are no ordinary shares available for issuance under the 2024 Plan. 2025 Stock Incentive Plan The Crescent Biopharma, Inc. 2025 Stock Incentive Plan (as amended from time to time, the 2025 Stock Plan) was approved by the board of directors of GlycoMimetics on May 11, 2025, and by GlycoMimetics stockholders on June 5, 2025, and effective as of the Redomestication, the Board of Directors approved an amendment and restatement of the 2025 Stock Plan to reflect the conversion of Company common stock into Company ordinary shares in connection with the Redomestication. The 2025 Stock Plan allows for the grant of stock options, stock appreciation rights, RSAs, RSUs, other shareholder-based awards and incentive bonuses. The 2025 Stock Plan is administered by the Compensation Committee of the Board (the Com …

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18. Subsequent Events The Company has evaluated events and transactions occurring subsequent to June 30, 2026 through the date at which the financial statements were issued. On July 1, 2026, the Company entered into an open market sale agreement (the Sales Agreement) with Jefferies LLC (Jefferies), as sales agent, pursuant to which the Company may offer and sell from time to time up to an aggregate of $200.0 million of the Companys ordinary shares through an at-the-market equity offering program (the ATM Program). Sales of the Companys ordinary shares under the ATM Program will be made pursuant to a Registration Statement on Form S-3 as supplemented by a prospectus supplement. The Company has agreed to pay Jefferies a commission of up to 3.0% of the gross proceeds of the Companys ordinary shares sold under the Sales Agreement. To date, the Company has not sold any shares under the ATM Program. On July 14, 2026, the Company entered into an underwriting agreement (the Underwriting Agreement) with Jefferies LLC and TD Securities (USA) LLC, as representatives of the several underwriters named therein (collectively, the Underwriters), relating to the issuance and sale of (i) 9,387,896 of the Companys ordinary shares (the Shares), including the exercise in full by the Underwriters of their option to purchase 1,293,103 ordinary shares, at an offering price to the public of $14.50 per share, and (ii) with respect to certain investors, pre-funded warrants to purchase an aggregate of 5 …

SubsequentEventsTextBlock · excerpt; the full note is in the filing