Financial Analysis

9. Commitments and Contingencies Guarantees and Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Companys exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. The Company has entered into indemnification agreements with certain directors and officers that 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 officers. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. As of June 30, 2026 and December 31, 2025, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities. Legal Contingencies From time to time, the Company may become involved in legal proceedings arising from the ordinary course of business. The Company records a liability for such matters when it is probable that future losses will be incurred and that such losses can be reasonably estimated. Significant judgment by the Company is required to determine both probability and the estimated amount. Management is currently not aware of any legal matters that could have a material adverse effect on financial position, results of operations or cash flows. Res …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

8. Convertible Note Payable On May 11, 2023, the Company issued an 8 % convertible promissory note (the Lilly Note) to Eli Lilly and Company with an aggregate principal amount of $ 30.0 million. The Lilly Note accrued interest at a rate of 8 % per annum and matured on May 11, 2026. The Lilly Note contained provisions for conversion into the Company's equity securities upon the occurrence of certain financing, public offering or change-in-control events. Upon maturity on May 11, 2026 , the Lilly Note became contractually convertible into shares of the Company's common stock in accordance with its terms. Because the related shares were not issued until after June 30, 2026, the outstanding principal and accrued interest remained reflected in the Company's balance sheet as of June 30, 2026. Subsequent to June 30, 2026, on July 17, 2026, the Company issued approximately 1.05 million shares of common stock in settlement of the outstanding principal and accrued interest associated with the Lilly Note. Following the issuance of such shares, the Lilly Note was fully extinguished and no amounts remained outstanding under the arrangement. The fair value of the convertible note was $ 37.8 million and $ 35.3 million as of June 30, 2026 and December 31, 2025 , respectively. …

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The following table summarizes the revenue recognized from collaboration partners (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Prevail $ 1,918 $ 4,778 $ 4,151 $ 21,568 Sanofi 120 455 Total Revenue $ 1,918 $ 4,898 $ 4,151 $ 22,023 …

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12. Equity Incentive Plan and Stock-Based Compensation 2018 Stock Incentive Plan In 2018, the Company adopted the 2018 Stock Incentive Plan (the Plan). The Plan provides for the grants of stock options, stock appreciation rights, dividend equivalent rights, restricted stock units, restricted stock awards (RSAs), and other stock-based awards to employees, consultants and advisors of the Company. Options granted under the Plan may be either incentive stock options or nonqualified stock options. Incentive stock options (ISO) may be granted only to Company employees, including officers and directors who are also employees. Nonqualified stock options (NSO) may be granted to Company employees, consultants and advisors. As of June 30, 2026 , the Company has reserved 1,672,540 shares of common stock for issuance under the Plan. Options under the Plan may be granted for periods of up to ten years and at prices based upon the estimated fair value of the shares on the date of grant as determined by the Board of Directors, provided, however, that (i) the exercise price of an option shall not be less than 100% of the estimated fair value of the shares on the date of grant, (ii) the exercise price of an ISO granted to a greater than 10% stockholder shall not be less than 110% of the estimated fair value of the shares on the date of grant, and (iii) the term of an ISO granted to a greater than 10% stockholder should not exceed five years . Options granted generally vest over four years . Op …

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3. Fair Value Measurements The Companys financial assets and financial liabilities recognized at fair value consisted of the following (in thousands): June 30, 2026 Level 1 Level 2 Level 3 Fair Value Financial Assets: Money market funds $ 35,508 $ $ $ 35,508 U.S. treasury securities 7,423 $ 7,423 Total financial Assets $ 35,508 $ 7,423 $ $ 42,931 Financial Liabilities: Convertible note $ $ $ 37,799 $ 37,799 Total financial liabilities $ $ $ 37,799 $ 37,799 December 31, 2025 Level 1 Level 2 Level 3 Fair Value Financial Assets: Money market funds $ 12,695 $ $ $ 12,695 U.S. treasury securities 45,167 45,167 Total financial Assets $ 12,695 $ 45,167 $ $ 57,862 Financial Liabilities: Convertible note $ $ $ 35,339 $ 35,339 Total financial liabilities $ $ $ 35,339 $ 35,339 The Companys securities are valued using third-party pricing services or other observable market data. The pricing services utilize industry standard valuation models and observable market inputs to determine value. There have been no transfers within the hierarchies during the six months ended June 30, 2026. The Company elected to measure the convertible note (Note 8) at fair value with changes in fair value reported in earnings as they occur. The convertible note fair value was determined using the discounted cash flows methodology based on probability weighted scenarios of the convertible note's conversion using Level 3 inputs not observable in the market. A significant increase (decrease) in these inputs would …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

13. Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date profit or loss, adjusted for discrete items arising in that period. The Companys annual estimated effective tax rate differs from the U.S. federal statutory rate primarily as a result of changes in its valuation allowance against its deferred tax assets. For the three and six months ended June 30, 2026 , the Company recorded an income tax provision of $ 0.2 million and $ 0.4 million, compared to an income tax benefit of $ 0.7 million and $ 1.0 million for the three and six months ended June 30, 2025. During the three months ended June 30, 2026 , there were no material changes to the Companys unrecognized tax benefits. The Company does not have any tax audits or other issues pending. …

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"Recently Adopted Accounting Pronouncements In September 2025, the FASB issued ASU 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The amendments refine the scope of derivative accounting by excluding contracts or embedded features whose settlement amounts are based on the operations or activities specific to one of the parties to the contract and clarify the accounting for share-based noncash consideration received from a customer in a revenue contract. The Company early adopted ASU 2025-07 effective January 1, 2026. The adoption did not have a material impact on the Company's condensed financial statements. In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which establishes recognition, measurement, presentation and disclosure requirements for government grants received by business entities. Under the guidance, a government grant is recognized when it is probable that the entity will comply with the conditions attached to the grant and that the grant will be received. The Company early adopted ASU 2025-10 effective January 1, 2026 using the modified prospective transition method. The Company adopted the guidance in connection with grants awarded by the California Institute for Regenerative Medicine (""CI …

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15. Segment Information The Company operates as one operating and reportable segment focused on researching and developing genetic medicines using CRISPR-based tools to address the root cause of diseases, with a primary focus on cardiometabolic conditions. The Companys chief executive officer serves as the chief operating decision maker (CODM). The CODM evaluates segment performance and allocates resources based on net loss and operating expenses, which are also reported in the statement of operations. This measure is used to monitor spending and compare budgeted versus actual results. Factors considered in determining the single reportable segment include the nature of the Companys operating activities, its organizational and reporting structure, and the type of financial information reviewed by the CODM. All material long-lived assets and revenues are located in the United States. The CODM reviews cash, cash equivalents and investments as a measure of segment assets. As of June 30, 2026 and December 31, 2025, the Companys cash, cash equivalents and investments were $ 43.0 million and $ 58.0 million, respectively. The table below summarizes the segments profit or loss, along with significant expense categories which are reviewed by the CODM, for the periods presented (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Collaboration Revenue $ 1,918 $ 4,898 $ 4,151 $ 22,023 Significant operating expenses: Research and development: Internal …

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"2. Summary of significant accounting policies Basis of Preparation The accompanying condensed financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. The condensed financial statements were also prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the ordinary course of business. Since inception, the Company has not generated any product revenue, and its operations have primarily consisted of establishing facilities, recruiting personnel, conducting research and development, and raising capital. Certain information and footnote disclosures normally included in the condensed financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with such rules and regulations. The significant accounting policies and estimates used in the preparation of these financial statements are consistent with those described in the Companys audited financial statements for the year ended December 31, 2025 . During the current interim period, there have been no material changes to these policies. Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation. The reclassifications have no impact on the Company's total assets, total liabilities, stockh …

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11. Common Stock The Company is authorized to issue up to 52,000,000 shares of $ 0.001 par value common stock as of June 30, 2026. Common stockholders are entitled to dividends when and if declared by the Board of Directors, subject to the prior rights of the redeemable convertible preferred stockholders. The holder of each share of common stock is entitled to one vote. The common stockholders voting as a class are entitled to elect two members to the Companys Board of Directors. No dividends have been declared since the inception of the Company. The Company had reserved common stock for future issuance as follows: June 30, December 31, 2026 2025 Conversion of redeemable convertible preferred stock 4,915,299 4,915,299 Exercise of outstanding stock option awards 1,068,963 1,180,576 Common Stock Warrants issued and outstanding 74,324 74,324 Restricted stock issued and outstanding-2018 Equity Incentive Plan 48,021 48,021 Stock options available for future grant 230,075 152,545 Total common stock reserved 6,336,682 6,370,765 Founders Restricted Common Stock In January and August 2018, the Company issued 2,195,278 restricted common stock shares to its founders at the purchase price of $ 0.00592 per share for their advisory and consulting services. In September 2018, the Company repurchased 211,084 such shares from one of the founders. The founders common stock shares are subject to the Companys repurchase option if a founder terminates their services to the Company during the vest …

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"16. Subsequent Events On July 17, 2026, the Company amended its amended and restated certificate of incorporation and effected a reverse stock split pursuant to which every 5.9218 shares of the Company's common stock issued and outstanding were automatically reclassified into one new share of common stock, subject to the treatment of fractional shares as previously described, without any action on the part of the holders. On July 17, 2026, the Company entered into an amendment to the 2023 Sanofi License Agreement under which it extended the nomination period for Sanofi to select one additional target under the license and expanded the license to include the Company's ELXR Platform for that target. On July 23, 2026, the Company's stockholders approved the 2026 Equity Incentive Plan (the ""2026 Plan""), and the 2026 Plan became effective upon the effectiveness of the Company's registration statement in connection with its initial public offering. The 2026 Plan increased the aggregate number of shares of common stock reserved for issuance under the Company's equity compensation plans by 2,420,000 shares. On July 23, 2026, grants of stock options previously approved by the Board of Directors on July 16, 2026 became effective upon the effectiveness of the Company's registration statement. The grants covered an aggregate of 2,066,997 shares of common stock to certain employees and members of the Board of Directors. Certain awards are subject to service-based vesting requirements a …

SubsequentEventsTextBlock · excerpt; the full note is in the filing