LIQUIDITY	9 Months Ended
Mar. 31, 2025
LIQUIDITY
LIQUIDITY	NOTE 2 — LIQUIDITY As a clinical stage business, the Company has not yet generated any revenues and had an accumulated deficit of $379.5 million as of March 31, 2025. For the nine months ended March 31, 2025, the Company incurred a net loss of $50.0 million and net cash used in operating activities amounted to $47.1 million. For the fiscal year ended June 30, 2024, the Company incurred a net loss of $68.5 million and net cash used in operating activities amounted to $57.4 million. As of March 31, 2025, the Company’s capital resources consist of cash and cash equivalents of $14.6 million, short-term investments in marketable debt securities of $72.3 million and long-term investments in marketable debt securities of $1.5 million. As discussed in Note 7, the Company completed the 2024 Private Placement in July 2024 that resulted in the sale of 1.5 million shares of common stock for gross cash proceeds of $6.0 million. As of March 31, 2025, the Company has total liabilities of $12.2 million, including current liabilities of $10.5 million. As discussed in Note 5, the Company is subject to license agreements that provide for future contractual payments upon achievement of various milestone events. Pursuant to the XOMA License Agreement (as defined below), a $5.0 million milestone payment will be due upon dosing of the last patient in a Phase 3 clinical trial for ersodetug. The commitment to pay the last patient dosing milestone of $5.0 million for the ersodetug Phase 3 clinical trial is expected to be recognized as a liability and corresponding expense within 12 months. As discussed in Note 14, in April 2025 the Company completed the 2025 Underwritten Offering that resulted from the issuance of 24,940,769 shares of common stock at a price of $3.25 per share, and pre-funded warrants to purchase 6,905,385 shares of common stock at a public offering price of $3.249 per pre-funded warrant for net proceeds of $96.9 million after underwriting discounts and other offering costs. Management believes the Company’s existing cash, cash equivalents and investments in marketable debt securities, along with net proceeds from the 2025 Underwritten Offering, will be adequate to meet the Company’s contractual obligations and carry out ongoing clinical trials and other planned activities through May 2026, at a minimum.

LIQUIDITY

9 Months Ended

Mar. 31, 2025

NOTE 2 — LIQUIDITY

As a clinical stage business, the Company has not yet generated any revenues and had an accumulated deficit of $379.5 million as of March 31, 2025. For the nine months ended March 31, 2025, the Company incurred a net loss of $50.0 million and net cash used in operating activities amounted to $47.1 million. For the fiscal year ended June 30, 2024, the Company incurred a net loss of $68.5 million and net cash used in operating activities amounted to $57.4 million. As of March 31, 2025, the Company’s capital resources consist of cash and cash equivalents of $14.6 million, short-term investments in marketable debt securities of $72.3 million and long-term investments in marketable debt securities of $1.5 million.

As discussed in Note 7, the Company completed the 2024 Private Placement in July 2024 that resulted in the sale of 1.5 million shares of common stock for gross cash proceeds of $6.0 million.

As of March 31, 2025, the Company has total liabilities of $12.2 million, including current liabilities of $10.5 million. As discussed in Note 5, the Company is subject to license agreements that provide for future contractual payments upon achievement of various milestone events. Pursuant to the XOMA License Agreement (as defined below), a $5.0 million milestone payment will be due upon dosing of the last patient in a Phase 3 clinical trial for ersodetug. The commitment to pay the last patient dosing milestone of $5.0 million for the ersodetug Phase 3 clinical trial is expected to be recognized as a liability and corresponding expense within 12 months.

As discussed in Note 14, in April 2025 the Company completed the 2025 Underwritten Offering that resulted from the issuance of 24,940,769 shares of common stock at a price of $3.25 per share, and pre-funded warrants to purchase 6,905,385 shares of common stock at a public offering price of $3.249 per pre-funded warrant for net proceeds of $96.9 million after underwriting discounts and other offering costs.

Management believes the Company’s existing cash, cash equivalents and investments in marketable debt securities, along with net proceeds from the 2025 Underwritten Offering, will be adequate to meet the Company’s contractual obligations and carry out ongoing clinical trials and other planned activities through May 2026, at a minimum.