Financial Analysis

NOTE 13. EMPLOYEE BENEFIT PLAN The Company maintains a defined contribution plan covering substantially all U.S. employees under Section 401(k) of the Internal Revenue Code of 1986, as amended (the IRC). The Company's matching contribution to the defined contribution plan was $6.4 million, $4.7 million, and $4.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. …

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Net revenue for the periods presented represents sales of Amtagvi and Proleukin as follows (in thousands): Years Ended December 31, 2025 2024 2023 Amtagvi $ 220,024 $ 103,567 $ Proleukin 43,478 60,503 1,189 Total net revenue $ 263,502 $ 164,070 $ 1,189 Consolidated net product revenue by geographic area for the periods presented is as follows (in thousands): Years Ended December 31, 2025 2024 2023 United States $ 259,013 $ 161,043 $ Rest of world 4,489 3,027 1,189 Net revenue $ 263,502 $ 164,070 $ 1,189 …

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NOTE 14. INCOME TAXES Loss before provision of income taxes consisted of U.S. losses of $350.2 million, $359.9 million, and $433.5 million, and foreign losses of $42.9 million, $15.1 million, and $14.0 million for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively. The Company recorded a tax benefit of $2.1 million, $2.8 million, and $3.5 million for the years ended December 31, 2025, December 31, 2024, and December 31, 2023, respectively, which resulted in an effective tax rate of 0.53%, 0.75%, and 0.78%, respectively. The income tax benefit for the periods presented primarily relates to operations in the United Kingdom and the change in deferred tax assets and liabilities. The significant components of the Companys net deferred tax assets and liabilities are summarized as follows (in thousands): As of December 31, 2025 2024 Deferred income tax assets Net operating loss carryforwards $ 416,152 $ 302,875 Stock-based compensation 41,275 40,909 Tax credit carryforwards 65,184 66,874 Lease liabilities 14,911 14,759 Capitalized R&D 147,823 137,577 Reserves and accruals 18,916 11,523 Other 2,217 Deferred tax assets before valuation allowance 706,478 574,517 Less: valuation allowance (687,503) (557,587) Net deferred income tax assets 18,975 16,930 Deferred tax liabilities Right-of-use assets (14,128) (14,228) Depreciation and amortization (36,496) (35,017) Other (179) Net deferred tax liabilities $ (31,828) $ (32,315) The reconciliation of …

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NOTE 16. LEASES Operating Leases The Company leases corporate office space in San Carlos, California, manufacturing, research and development lab facilities and office space in Philadelphia, Pennsylvania, including 136,000 square feet of commercial manufacturing and lab space at the i CTC, and research and development lab facilities in Tampa, Florida. The determination whether an arrangement is a lease occurs at inception, and for leases with terms greater than 12 months, the Company records a related right-of-use asset and lease liability at the present value of lease payments over the term. Many leases include fixed rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Companys leases do not provide an implicit rate, and thus the Company estimated the incremental borrowing rate in calculating the present value of the lease payments. The Companys leases have remaining lease terms that range from less than one year to approximately 16 years. Some of the Companys leases include one or more options to renew with renewal terms that can extend the lease for additional years, or options to terminate the leases, both at the Companys discretion. The Companys leases may include options to extend or terminate the lease, which is considered in the lease term when it is reasonably certain that the Company will exercise any such options. Lease expense for minimum lease payments is recognized …

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Recent Accounting Standards In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, on a prospective basis. Early adoption and retrospective reporting are permitted. The Company has adopted ASU 2023-09 in its December 31, 2025, consolidated financial statements on a prospective basis. 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, which requires the disaggregation of certain expense captions into specified categories in disclosures within the notes to the financial statements to provide enhanced transparency into the expense captions presented on the face of the income statement. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted, and may be applied either prospectively or retrospectively to financial statements issued for reporting periods after the effective date of ASU 2024-03 or retrospectively to any or all prior periods presented in the financial statements. The Company is curren …

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NOTE 11. RESTRUCTURING In August 2025, the Company announced a strategic restructuring plan with an associated reduction in workforce as a result of a review of current strategic priorities, resource allocation, and cost reduction intended to reduce operating costs, streamline operations, and extend its cash runway. In connection with the restructuring plan, the Company recognized severance and other charges of $5.1 million for the year ended December 31, 2025, primarily related to severance payments, costs for outplacement services, and post-employment benefits. As of December 31, 2025, there were no material remaining obligations related to the strategic restructuring plan.

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NOTE 7. REVENUE Net revenue for the periods presented represents sales of Amtagvi and Proleukin as follows (in thousands): Years Ended December 31, 2025 2024 2023 Amtagvi $ 220,024 $ 103,567 $ Proleukin 43,478 60,503 1,189 Total net revenue $ 263,502 $ 164,070 $ 1,189 Revenue from Proleukin was primarily related to sales made to specialty distributors and authorized treatment centers (ATCs) in the U.S. market to support the commercialization of Amtagvi . Amtagvi revenue is recognized upon patient infusion, while Proleukin revenue is recognized upon transfer of control, either upon shipment or upon delivery to customers, which include specialty distributors, clinical manufacturers, research organizations, and ATCs. Revenue from product sales was recorded net of GTN adjustments. The following table summarizes GTN adjustments for the periods presented (in thousands): Years Ended December 31, 2025 2024 2023 Gross revenue $ 268,005 $ 169,170 $ 1,192 GTN adjustments: Government rebates and chargebacks (600) (172) Wholesaler fees and cash discounts (2,819) (3,226) (3) Other rebates, returns, discounts and adjustments (1,084) (1,702) Total GTN adjustments (4,503) (5,100) (3) Net revenue $ 263,502 $ 164,070 $ 1,189 Consolidated net product revenue by geographic area for the periods presented is as follows (in thousands): Years Ended December 31, 2025 2024 2023 United States $ 259,013 $ 161,043 $ Rest of world 4,489 3,027 1,189 Net revenue $ 263,502 $ 164,070 $ 1,189 Net product revenu …

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NOTE 12. SEGMENT INFORMATION The Company operates in one segment, focusing on innovating, developing, and commercializing therapies using its autologous TIL cell therapies for patients with solid tumor cancers. The Company is executing the U.S. launch of Amtagvi , the first product within its autologous TIL cell therapy platform, while also marketing and distributing its Proleukin product used in the Amtagvi treatment regimen. The Companys Chief Operating Decision Maker (CODM) is the Chief Executive Officer, who uses net loss as measurement of segment loss and monitors results against budget to evaluate and assess performance of the Company and resource allocation within the Company. The measure of segment assets is reported on the balance sheet as total consolidated assets. Beginning in the third quarter of 2025, the Company began separately presenting depreciation and amortization expense on the consolidated statement of operations as well as in its internal reporting to the CODM. As a result, the Company has recast prior period amounts to align with the information that is used by the CODM. The table below highlights the Companys revenue, expenses and net loss for the segment and is reconciled to net loss on a consolidated basis for the years ended December 31, 2025, 2024, and 2023, respectively. Year Ended December 31, 2025 (in thousands) 2025 2024 2023 Net sales $ 263,502 $ 164,070 $ 1,189 Cost of sales Cost of goods sold ( excluding depreciation and amortization ) (a) $ …

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NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES Cash, Cash Equivalents, and Investments The Companys cash and cash equivalents include short-term investments with original maturities of three months or less when purchased. The Company's investments are classified as available-for-sale. The Company includes these investments in current assets or non-current assets in the consolidated balance sheets based on the length of maturity from the reporting date and carries them at fair value. Unrealized gains and losses on available-for-sale securities are recorded in accumulated other comprehensive loss. Impairment losses related to credit losses (if any) are recorded as an allowance for credit losses with an offsetting entry to Interest and other income, net. No impairment losses related to credit losses were recognized for the years ended December 31, 2025, 2024 and 2023. The cost of debt securities is adjusted for the amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in Interest and other income, net in the consolidated statements of operations. Gains and losses on securities sold are recorded based on the specific identification method and are included in Interest and other income, net in the consolidated statements of operations. The Company has not incurred any realized gains or losses from sales of securities to date. The Companys investment policy limits investments to certain types of instruments such as certifi …

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NOTE 10. STOCKHOLDERS EQUITY Common Stock The Companys certificate of incorporation, as amended, authorizes the issuance of up to 500,000,000 shares of the Companys common stock, par value $0.000041666 . As of December 31, 2025, 411,938,061 shares of the Companys common stock were issued and outstanding . Public Offerings On February 22, 2024, the Company closed an underwritten public offering of 23,014,000 shares of its common stock at a public offering price of $9.15 per share, before underwriting discounts and commissions. The total net proceeds to the Company from the offering were $197.4 million after deducting underwriting discounts and commissions and offering expenses payable by the Company. On July 13, 2023, the Company closed an underwritten public offering of 23,000,000 shares of the Companys common stock, which included 3,000,000 shares of common stock issued pursuant to the exercise of the option granted to the underwriters, at a public offering price of $7.50 per share, before underwriting discounts and commissions. The total net proceeds to the Company from the offering, including the exercise of the option by the underwriters, were $161.5 million after deducting underwriting discounts and commissions and offering expenses payable by the Company. At the Market Offering Program On November 18, 2022, the Company entered into an Open Market Sale Agreement (the 2022 Sale Agreement) with Jefferies LLC (Jefferies). Under the terms of the 2022 Sale Agreement, the Comp …

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