A total of 7,272,358 shares of the Company’s common stock were reserved for future issuance under the 2025 Equity Incentive Plan (the “2025 Plan”) at December 31, 2025. On January 1, 2026, pursuant to the evergreen provision contained in the 2025 Plan, the number of shares reserved for future grants was increased by 1,576,204 shares, which was five percent (5%) of the outstanding shares of common stock on December 31, 2025. This reserve will increase each subsequent anniversary through January 1, 2035, by an amount equal to the smaller of (a) 5% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) a lesser amount determined by the Company’s board of directors.

The following table summarizes the Company’s stock option activity:


	Stock Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)			Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2026		6,598,693		$	9.05		8.55	$		54,503
Options granted		1,141,316			26.00					—
Options exercised		(263,395	)		2.78					5,351
Outstanding at June 30, 2026		7,476,614			11.86		8.35	$		35,304
Exercisable at June 30, 2026		2,423,387			3.17		6.60	$		24,531
Vested and expected to vest at June 30, 2026		7,476,614		$	11.86		8.35	$		35,304

The weighted-average grant-date fair value of options granted during the six months ended June 30, 2026 and 2025 was $19.24 and $3.47 per option, respectively. The aggregate intrinsic value of options exercised for the six months ended June 30, 2026 and 2025 was $5.4 million and less than $0.1 million, respectively. Intrinsic values are calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the fair value per share of the common stock, multiplied by the related in the money options that would have been received by the option holders had they exercised their options at the end of the period.

As of June 30, 2026, the total unrecognized stock-based compensation expense for stock options was $53.8 million, which is expected to be recognized over a weighted-average period of 3.4 years. The total fair value of options vested for the six months ended June 30, 2026 and 2025 was $1.1 million and $0.9 million, respectively.

The fair value of the stock options granted was estimated using the following assumptions:


	Six Months Ended June 30,
	2026	2025
Expected term	5.5 - 6.5 Years	6.1 Years
Expected volatility	82.43% - 88.66%	88.51% - 89.11%
Risk-free interest rate	3.84% - 4.31%	3.94% - 4.07%
Fair value of common stock	$14.04 - $20.73	$2.30-$3.75
Dividend yield	0%	0%

In December 2024, certain employees were granted a total of 437,754 RSUs. The terms of the RSUs are disclosed in the annual audited consolidated financial statements for the year ended December 31, 2025 included in the Company's Form 10-K. There were no RSUs granted or vested during the six months ended June 30, 2026. As of June 30, 2026, the total unrecognized stock-based compensation expense for unvested restricted stock was $0.8 million, which is expected to be recognized over a weighted-average period of 2.4 years. The Company recorded $0.1 million and $0.2 million as stock-based compensation expenses for RSUs for the three and six months ended June 30, 2026. No stock compensation expense was recognized for the three and six months ended June 30, 2025.

In December 2024, an executive officer was granted 444,992 SARs with a base price of $2.99 per unit. The terms of the SAR are disclosed in the annual audited consolidated financial statements for the year ended December 31, 2025 included in the Company’s Form 10-K. There were no SARs granted or vested during the six months ended June 30, 2026. The Company recorded stock-based compensation expense of $0.5 million and $1.1 million for SAR units for the three and six months ended June 30, 2026. No stock compensation expense was recognized for the three and six months ended June 30, 2025.

Stock compensation expense recorded for the three and six months ended June 30, 2026 and 2025, consisted of expense for stock options, RSUs, SARs and Employee Stock Purchase Plan. The following table is a summary of stock compensation expense by function recognized for the periods indicated (in thousands):


		Three Months Ended June 30, 2026			Three Months Ended June 30, 2025			Six Months Ended June 30, 2026			Six Months Ended June 30, 2025
General and administrative	$		2,936	$		341	$		5,201	$		674
Research and development			1,662			216			2,851			426
	$		4,598	$		557	$		8,052	$		1,100

A total of 300,000 shares of the Company's common stock were reserved for issuance under the 2025 Employee Stock Purchase Plan (the “2025 ESPP”) at December 31, 2025. The Company’s board of directors elected not to increase the shares reserved for issuance under the 2025 ESPP on January 1, 2026. No shares were issued under the 2025 ESPP during the six months ended June 30, 2026 and 2025, respectively. No meaningful compensation expense was recognized under the 2025 ESPP during the three and six months ended June 30, 2026 or 2025.