Financial Analysis

18. Commitments and Contingencies Indemnification Agreements In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend indemnified parties for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. To date, the Company has not incurred any material costs as a result of such indemnifications.

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9. Financial Liabilities Barings Credit Agreement On August 2, 2023 (the Closing Date), the Company entered into a credit and security agreement (the Barings Credit Agreement) with Barings Finance LLC (Barings), as administrative agent, and the lenders party thereto, providing for a secured term loan facility for the Company (the Barings Credit Facility) in the aggregate principal amount of $82,474 (the Total Credit Facility Amount). The Company borrowed the full amount of $82,474 at closing and received proceeds of $77,290, after the application of an original issue discount and fees. Indebtedness under the Barings Credit Facility matures on the six-year anniversary of the Closing Date. Indebtedness under the Barings Credit Facility incurs interest based on the Secured Overnight Financing Rate (SOFR), subject to a minimum 1.50% floor, plus 6.75%. The Company is obligated to make interest payments on its indebtedness under the Barings Credit Facility on a monthly basis, commencing on the Closing Date; to pay annual administration fees; and to pay, on the maturity date, any principal and accrued interest that remains outstanding as of such date. In addition, the Company is obligated to pay a fee in an amount equal to the Total Credit Facility Amount, which amount shall be reduced by the total amount of interest and principal prepayment fees paid under the Barings Credit Agreement (such fee, the Barings Royalty Fee). The Company is required to pay the Barings Royalty Fee in ins …

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13. Stock-Based Awards For the years ended December 31, 2025 and 2024, the Company had three stock-based compensation plans under which it was able to grant stock-based awards, the 2021 Stock Incentive Plan, as amended (the 2021 Plan), the 2019 Inducement Stock Incentive Plan, as amended (the 2019 Inducement Plan), and the 2014 Employee Stock Purchase Plan (the ESPP) (collectively the Stock Plans). Certain inducement awards made prior to inception of the 2019 Inducement Plan were issued outside of the Stock Plans. The purpose of the Stock Plans is to provide incentives to employees, directors, and nonemployee consultants. The 2021 Plan and the 2019 Inducement Plan provide for the grant of non-statutory stock options, restricted stock awards, restricted stock units (RSUs), performance stock units (PSUs), stock appreciation rights and other stock-based awards. The 2021 Plan also provides for the grant of incentive stock options. 2021 Plan - The number of shares initially reserved for issuance under the 2021 Plan was 6,000,000 shares of common stock; plus 456,334 shares remaining available for grant under the 2014 Plan as of immediately prior to the effective date of the 2021 Plan and 9,766,336 shares subject to awards granted under the 2014 Plan or the 2006 Plan, which awards expire, terminate or are otherwise surrendered, canceled, forfeited or repurchased by the Company at their original issuance price pursuant to a contractual repurchase right (subject to certain limitations …

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15. Income Taxes During the years ended December 31, 2025, 2024 and 2023, the Company recorded no income tax benefits for the net operating losses incurred or the research and development tax credits generated in each year, due to its uncertainty of realizing a benefit from those items. During the years ended December 31, 2025, 2024 and 2023, the Company did not make any material payments of U.S federal, state, or local income taxes. A reconciliation of the U.S. federal statutory income tax rate to the Companys effective income tax rate for the year ended December 31, 2025 is as follows: Year Ended December 31, 2025 Amount Percent U.S. federal statutory income tax rate $ 55,776 21.0 % State and local income taxes, net of federal income tax effect Effect of changes in tax laws or rates enacted in the current period Tax credits Research and development tax credits 5,019 1.9 Changes in the valuation allowance (56,316) (21.1) Nontaxable or nondeductible items Officers Compensation (2,856) (1.1) Other (713) (0.3) Other adjustments (910) (0.4) Effective income tax rate $ % A reconciliation of the U.S. federal statutory income tax rate to the Companys effective income tax rate for the years ended December 31, 2024 and 2023, respectively, is as follows: Year Ended December 31, 2024 2023 Federal statutory income tax rate 21.0 % 21.0 % Tax reform change Research and development tax credits 3.5 3.6 State taxes, net of federal benefit 1.8 2.0 Stock-based compensation (1.9) (2.3) Change i …

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7. Leases The Company leases real estate, including laboratory, manufacturing and office space, and certain equipment. The Companys two real estate leases in effect as of December 31, 2025 have remaining lease terms of approximately 1.5 years and 2.5 years, respectively. The Companys equipment leases in effect as of December 31, 2025 have remaining lease terms ranging from approximately 0.9 to 1.3 years. All of the Companys leases qualify as operating leases. The lease for the Companys 20,445 square feet of manufacturing space located at 36 Crosby Drive in Bedford, Massachusetts commenced on June 30, 2018. On October 18, 2022, the Company exercised its option to extend the lease agreement by an additional five-year term, resulting in a new expiration date of July 31, 2028. Under the terms of the existing lease, rent for the five-year extension period was based on the current fair market rent for comparable space in the building and in other similar buildings in the same rental market as of August 1, 2023, the commencement date of the additional five-year term. The Company estimated the prevailing market rental rates at the time when the Company exercised the renewal option and included these in the remeasurement of the operating lease asset and the lease liability. This resulted in an increase of the operating lease assets and operating lease liabilities of $4,284 as of the remeasurement date. As this is an estimate for variable payments that depend on an index or a rate, the …

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Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) and adopted by the Company as of the specified effective date. In November 2024, the FASB issued ASU No. 2024-03 Disaggregation of Income Statement Expenses . The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses and is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. The Company does not expect the adoption of the amendments to have a significant impact on its consolidated financial statements. In July 2025, the FASB issued ASU No. 2025-05 Financial Instruments Credit Losses . For public business entities, the amendments provide for the election of a practical expedient to be used in developing reasonable and supportable forecasts as part of estimating future expected credit losses for current accounts receivable and current contract assets. The amendments are effective for annual reporting periods beginning after December 15, 2025, including interim periods within those fiscal years. The Company does not expect the adoption of the amendments to have a significant impact on its consolidated financial statements. In September 2025, the FASB issued ASU No. 2025-06 Intangibles Goodwill and Other Inter …

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19. Related Party Transactions The Company has engaged Boston Image Reading Center LLC (BIRC) to provide certain clinical development-related services to the Company. Nadia Waheed, M.D. M.P.H., who has served as the Companys Chief Medical Officer since June 1, 2024, is a Director of BIRC. For the year ended December 31, 2025, the Company incurred fees for clinical development-related services rendered by BIRC of $761. For the year ended December 31, 2024, the Company incurred fees for clinical development-related services rendered by BIRC while being deemed a related party since June 1, 2024 of $81. As of December 31, 2025 and 2024, there was $126 and $0 recorded in accounts payable for BIRC, respectively. As of December 31, 2025 and 2024, there was $590 and $5 recorded in accrued expenses for BIRC, respectively. Jeffrey Heier, M.D., a former member of the Companys Board of Directors and the Companys current Chief Scientific Officer, and Peter Kaiser, M.D., the Companys Chief Development Officer since April 16, 2024, are each affiliated with i2Vision, Inc. and its affiliated entities (collectively i2Vision). The Company had engaged i2Vision to provide services with respect to the clinical advancement of AXPAXLI. For the year ended December 31, 2025, the Company recorded a net credit for fees and expenses related to services rendered by i2Vision that were previously recorded as expense of $(121). For the year ended December 31, 2024, the Company incurred fees and expenses rela …

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17. Segment Reporting The Company operates as a single operating segment. Its operations consist of developing and commercializing innovative therapies for retinal diseases and other eye conditions based on its ELUTYX proprietary bioresorbable hydrogel-based formulation technology. During the years ended December 31, 2025, 2024 and 2023, respectively, resources were allocated and performance was assessed by the Companys Chief Executive Officer and the Companys Chief Financial Officer and Chief Operating Officer, who the Company has determined to be, collectively, the Companys Chief Operating Decision Maker (CODM). The Companys research and development function is responsible for research and discovery of new product candidates, and the pre-clinical and clinical development of, and related registration efforts for, the Companys product candidates. The Companys operations and technical function is responsible for supply chain, the manufacturing of the Companys commercial products and clinical trial material, and facilities. The Companys sales and marketing function is responsible for the commercialization of its products and market access activities. The Companys operations are supported by corporate functions. Managing and allocating resources on a total company basis enables the Companys CODM to assess the overall level of resources available and how to best deploy these resources across functions and development projects in line with the Companys strategy. Consistent with th …

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2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The accompanying consolidated financial statements reflect the operations of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of consolidated 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, the measurement and recognition of reserves for variable consideration related to product sales, revenue recognition related to a collaboration agreement that contains multiple promises, the fair value of derivatives, stock-based compensation, and realizability of net deferred tax assets. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from the Companys estimates. Cash Equivalents The Company considers all short-term, highly liquid investments …

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12. Equity Preferred Stock The Restated Certificate of Incorporation, as amended, has authorized 5,000,000 shares of preferred stock, $0.0001 par value, all of which is undesignated and none of which are issued or outstanding at December 31, 2025 and 2024. Common Stock The Restated Certificate of Incorporation, as amended, authorized 100,000,000 shares of the Companys common stock. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Companys stockholders. In June 2021, the Company adopted an amendment to the restated certificate of incorporation increasing the number of its authorized shares of its common stock to 200,000,000 shares, and in June 2024, the Company adopted a further amendment to the restated certificate of incorporation increasing the number of its authorized shares of its common stock by 200,000,000 shares to 400,000,000 shares. On September 30, 2025, the Company entered into an underwriting agreement (the 2025 Underwriting Agreement) with certain underwriters (the 2025 Underwriters) relating to an underwritten offering (the 2025 Offering) of 37,909,018 shares of the Companys common stock, par value $0.0001 per share (the 2025 Shares). The offering price of the 2025 Shares was $12.53 per share, and the 2025 Underwriters agreed to purchase all of the 2025 Shares from the Company pursuant to the 2025 Underwriting Agreement at a price of $11.7782 per share. In connection with entering into the 2025 Underwriting Agr …

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20 . Subsequent Events In January 2026, the Company entered into a sublease for approximately 24,000 square feet of office space located at 14 Crosby Drive in Bedford, Massachusetts (the 14 Crosby Drive Lease). The 14 Crosby Drive Lease commenced on January 1, 2026, accordingly, it was not recognized in the Companys Consolidated Financial Statements as of and for the year ended December 31, 2025. The 14 Crosby Drive Lease will expire on March 30, 2031, and undiscounted minimum lease payments under the 14 Crosby Drive Lease are expected to be $3,363. The Company is currently in the process of finalizing its accounting under ASC 842 Leases for the 14 Crosby Drive Lease. On February 4, 2026, the Companys board of directors amended the 2019 Inducement Plan, as amended, to increase the aggregate number of shares issuable thereunder from 6,054,000 to 7,028,000 shares of common stock. …

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