Financial Analysis

NOTE 5 COMMITMENTS AND CONTINGENCIES Lease Agreements In January 2022, the Company entered into a lease agreement for approximately 18,614 square feet of office and laboratory space in Boulder, Colorado (the New Boulder Lease) with aggregate base rent payments of approximately $3.3 million over the initial 8.2-year term of the lease. Further, the Company provided a standby letter of credit (LOC) of $0.8 million during the term of the lease as collateral for the Companys obligations under the lease. The New Boulder Lease includes two tenant improvement allowances, which includes one for $1.0 million in construction costs to be fully reimbursed by the lessor (the First Allowance) and one for $2.0 million in construction costs to be repaid to the lessor as additional rent payments over the initial term of the lease (the Second Allowance). Both the First Allowance and Second Allowance have been received in full. The receipt of $2.0 million under the Second Allowance resulted in an increase to operating lease liabilities and an increase to aggregate base rent payments totaling $2.5 million. In February 2023, the New Boulder Lease was modified to occupy an additional 9,624 square feet of office space (the Expansion Space) with aggregate payments of approximately $1.5 million over the initial 7.3 year term of the lease. The Expansion space includes an improvement allowance in the amount of $0.5 million to be fully reimbursed by the lessor. The allowance associated with the expansion …

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NOTE 4 STOCK-BASED COMPENSATION AWARDS Equity Incentive Plans In March 2021, the Companys board of directors adopted, and its stockholders approved, the Companys 2021 Equity Incentive Plan (2021 Plan), which became effective in March 2021 in connection with the IPO. Upon adoption of the 2021 Plan, the Company restricted the grant of future equity awards under its 2017 Equity Incentive Plan, as amended and restated (2017 Plan). The 2021 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Companys employees and any of its parent and subsidiary corporations employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units (RSUs), stock appreciation rights, performance units, and performance shares to its employees, directors, and consultants and its subsidiary corporations employees and consultants. The vesting of stock options is stated in each individual grant agreement, which is generally four years. Options granted expire 10 years after the date of grant. An RSU represents the right to receive one share of common stock upon vesting of the RSU. The fair value of each RSU is based on the closing price of the Companys common stock on the date of grant and generally vest over 2 to 4 years. A total of 5,040,000 shares of the Companys common stock were initially reserved for issuance pursuant to the 2021 Plan. The 2021 Plan share reserve increases by the number of shares u …

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NOTE 6 INCOME TAXES Since inception, the Company has incurred net taxable losses, and accordingly, no current provision for income taxes has been recorded. Net loss before income tax expense or benefit of $167.8 million, $133.8 million, and $100.2 million for the years ended December 31, 2025, 2024 and 2023, respectively, was incurred in the United States. The Company has not recorded any United States federal or foreign income tax expense or benefit. The effective income tax rate of the provision for income taxes differs from the federal statutory rate as follows: As of December 31, 2025 2024 2023 Income tax benefit at federal statutory rate (35,238) 21.0 % (28,101) 21.0 % (21,034) 21.0 % State and local income taxes, net of federal income tax effect 4 (0.0) % 3 (0.0) % 4 (0.0) % Federal tax credits Orphan drug (15,704) 9.4 % (670) 0.5 % (691) 0.7 % Research and development (2,510) 1.5 % (6,499) 4.9 % (5,346) 5.3 % Change in valuation allowance 49,707 (29.6) % 34,832 (26.0) % 25,071 (25.0) % Non-deductible or non-taxable items Section 162(m) limitations 4,450 (2.7) % 4,629 (3.5) % 1,432 (1.4) % Share based compensation (528) 0.3 % (4,596) 3.4 % 551 (0.6) % Other (177) 0.1 % 405 (0.3) % 17 (0.0) % Effective income tax rate 4.0 (0.0) % 3.0 (0.0) % 4.0 (0.0) % The tax effect of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases that give rise to deferred tax assets and liabilities is as follow …

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Recently Adopted Accounting Pronouncements In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU enhanced the transparency and decision usefulness of income tax disclosures by requiring public business entities on an annual basis to disclose specific categories in the rate reconciliation, additional information for reconciling items that meet a quantitative threshold, and certain information about income taxes paid. ASU 2023-09 was adopted for the Companys Annual Report for the fiscal year ended December 31, 2025 on a retrospective basis which resulted in enhanced income tax disclosures (see Note 6). …

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NOTE 7 EMPLOYEE BENEFIT PLANS In 2017, the Company established a qualified 401(k) plan which covers all employees who meet eligibility requirements. The Companys contribution to the plan, as determined by the Companys Board of Directors, was discretionary until September 2021 when the Company initiated a match with a maximum amount of 4% of the participants compensation. During the years ended December 31, 2025, 2024 and 2023, the Company made matching contributions of $1.2 million, $1.0 million, $0.6 million, respectively. …

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NOTE 11 SEGMENT REPORTING The Company has one reportable segment focused on the discovery, development, and manufacture of drug products for the treatment of various muscular disorders. Our determination that we operate as a single segment is consistent with the financial information regularly reviewed by the chief operating decision maker (CODM) for purposes of evaluating performance, allocating resources, and planning and forecasting for future periods. Our business activities are managed on a consolidated basis based on net loss that is also reported on the Statement of Operations and Comprehensive Loss as Net Loss. The Companys CODM is the President and Chief Executive Officer (CEO). The measure of segment assets is reported on the balance sheet as total assets. Substantially all of the Companys assets are used to support the research, manufacture, and development of drug products for the treatment of muscular disorders; clinical and research data are key drivers in deciding how to allocate resources. The CEO uses net loss and significant segment expenses to monitor budget versus actual results and make decisions on whether to invest in internal or external resources to support the Companys research and development programs, as well as determine if additional funding is needed for the Companys research efforts. Year Ended December 31, 2025 2024 2023 Operating expenses: Contracted research expense $ 87,987 $ 80,214 $ 57,497 Personnel expense 47,606 35,797 24,604 Stock-base …

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NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP). Segment Information The Company is organized as a single operating and reportable segment, focused on the discovery, development, and manufacture of drug products for the treatment of severe muscle diseases; segment information is presented in Note 11. All equipment and other fixed assets are physically located in the United States. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents The Company considers all liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents as of December 31, 2025 and 2024 primarily consist of money market funds and cash. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents and marketable securities. Periodically, the Company may maintain deposits in financial institutions in ex …

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