Summary of Significant Accounting Policies

Unaudited Interim Financial Information

The accompanying interim condensed consolidated balance sheets as of June 30, 2026, condensed consolidated statements of operations and comprehensive (loss) income and stockholders’ deficit for the three and six months ended June 30, 2026 and 2025, condensed consolidated statement of cash flows for the six months ended June 30, 2026 and 2025, and the related note disclosures are unaudited. The balance sheet information as of December 31, 2025 is derived from the audited financial statements. These unaudited interim financial statements have been prepared in accordance with U.S. GAAP and, in management’s opinion, on a basis consistent with the audited financial statements and reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of June 30, 2026 and its results of operations and comprehensive (loss) income for the three and six months ended June 30, 2026 and 2025 and cash flows for the six months ended June 30, 2026 and 2025. The results for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026 or any other interim period.

Segment Reporting

The Company determined that it operates and manages its business as one operating segment, focused on the research and development of ABP-450. The Company’s chief operating decision maker (“CODM”) is the Company’s Chief Executive Officer, who reviews its consolidated operating results for the purpose of assessing liquidity needs, allocating resources and evaluating financial performance. Asset information, including monitoring of its cash and cash equivalents, provided to the CODM is consistent with those reported on the condensed consolidated balance sheets. The key measure of the Company’s single segment profit and loss that the CODM uses to allocate resources and assess performance is the Company’s operating (loss) income as reported on the condensed consolidated statement of operations and comprehensive (loss) income.

The table below shows a reconciliation of the Company’s net (loss) income, including the significant expense categories regularly provided to and reviewed by the CODM, as computed under U.S. GAAP to the Company’s total consolidated net (loss) income as reported in the condensed consolidated statement of operations and comprehensive (loss) income:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025

Segment operating expenses:
Compensation and benefits	$	2,851	$	2,505	$	5,980	$	4,894
Professional and legal fees		677		1,167		2,119		2,386
Office and travel		317		285		618		515
Research and development		2,084		365		3,149		477
Total selling, general and administrative, and research and development		5,929		4,322		11,866		8,272
Change in fair value of contingent consideration		(10)		16		(15)		(3,472)
Total operating costs and expenses		5,919		4,338		11,851		4,800
Loss from operations		(5,919)		(4,338)		(11,851)		(4,800)
Other segment items:
Change in fair value of convertible notes		(213)		(1,854)		(8,940)		(3,485)
Change in fair value of warrants		4,941		(542)		9,597		86,187
Loss on issuance of warrants		—		—		—		(75,644)
Loss on extinguishment of debt		—		—		(76)		—
Loss on derivative liability		—		—		(1,743)		—
Other income, net		36		92		65		195
Total other segment items, net		4,764		(2,304)		(1,097)		7,253
(Loss) income before taxes		(1,155)		(6,642)		(12,948)		2,453
Income taxes		—		—		—		—
Segment net (loss) income	$	(1,155)	$	(6,642)	$	(12,948)	$	2,453

Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and amortization. The cost of property and equipment is depreciated over the estimated useful lives of the respective assets. The Company’s furniture and fixtures are depreciated on a straight-line basis over a period of seven years. Equipment is depreciated over a useful life of five years. Leasehold improvements are amortized over the lesser of the estimated useful life of the asset or the related lease term.

Property and equipment, net, as of June 30, 2026 and December 31, 2025 consisted of the following (in thousands):


		June 30,			December 31,
		2026			2025
Furniture and fixtures		$	199		$	199
Equipment			241			241
Leasehold improvements			66			66
Property and equipment			506			506
Accumulated depreciation			(383)			(344)
Property and equipment, net		$	123		$	162

Convertible Notes


			June 30,		December 31,
			2026		2025
Legal expenses		$	27	$	244
Excise tax liability			576		570
Operating lease liability - short term portion			263		252
Daewoong supplies & analytical testing			234		424
SG&A consulting expenses			127		9
R&D consulting expenses			482		80
Remaining other accrued expenses			106		78
Total other accrued expenses		$	1,815	$	1,657

Derivative Liability

The Company accounts for its derivative liabilities as either equity-classified or liability-classified instruments based on an assessment of the specific terms and applicable authoritative guidance in ASC 480 and ASC 815. The Company identified that the First Closing of the PIPE contained pre-funded warrants, a tranche right obligation and a True-Up Warrant obligation, and the Second Closing contained pre-funded warrants, PIPE Warrants and True-Up Warrants.

The PIPE Pre-Funded Warrants and True-Up Warrants were determined to be equity classified under ASC 815 upon their issuance. The PIPE Warrants and the tranche right obligation (which encompasses the obligation to issue PIPE Pre-Funded Warrants, PIPE Warrants, and the True-Up Warrants as of the Second Closing) were determined to not be indexed to the Company’s own stock under ASC 815, and as such were classified as liabilities.

The PIPE Warrants were initially measured at fair value using a Black-Scholes calculation and recorded as a liability on the issuance date on the condensed consolidated balance sheets, and remeasured at each reporting period with changes to fair value recorded to the condensed consolidated statements of operations and comprehensive (loss) income. The valuation is subject to inputs and assumptions that have variability, including stock price, risk free rate and volatility. As stock price, risk-free rate and/or volatility increases or decreases, this may result in an increase or decrease, respectively, in the liability. The Company recognized the PIPE Pre-Funded Warrants and True-Up Warrants based on their relative fair values in additional paid-in capital on the issuance date, net of issuance costs.

Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

Fair value measurements are based on a three-tiered valuation hierarchy, which is classified and disclosed by the Company in one of the three categories as follows:

·

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

·

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets; quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, or can be corroborated by observable market data for substantially the full term of the asset or liability; and

·

Level 3 — Prices or valuation techniques that require unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Research and Development Expenses

Research and development costs are expensed as incurred. Research and development expenses consist primarily of costs associated with the Company’s biosimilar analyses and clinical studies including clinical trial design, clinical site reimbursement, data management, travel expenses and the cost of products used for biosimilar studies and clinical trials, consulting and internal and external costs associated with the Company’s regulatory compliance and quality assurance functions, including the costs of outside consultants and contractors that assist in the process of submitting and maintaining regulatory filings, and overhead costs. Additionally, research and development expenses include employee compensation, including stock-based compensation, supplies, consulting, prototyping, testing, materials, travel expenses and an allocation of facility overhead expenses. Costs incurred in obtaining technology licenses are charged to acquired in-process research and development if the technology licensed has not reached technological feasibility and has no alternative future use.

The Company accrues the expenses for its clinical trial activities performed by third parties, including clinical research organizations and other service providers, based upon estimates of the work completed over the life of the individual study in accordance with associated agreements. The Company determines these estimates through discussion with internal personnel and outside service providers as to progress or stage of completion of trials or services pursuant to contracts with clinical research organizations and other service providers and the agreed-upon fee to be paid for such services. Payments made to outside service providers in advance of the performance of the related services are recorded as prepaid expenses and other current assets until the services are rendered. There have been no material adjustments to the Company’s estimates for clinical trial expenses through June 30, 2026.

Net (Loss) Income Per Share

The Company only has one class of shares. Basic net (loss) income per share is computed by dividing the net (loss) income by the weighted average number of shares of common stock outstanding during the period, without consideration for potentially dilutive shares of common stock. Due to their nominal exercise price, the shares underlying outstanding pre-funded warrants are also included in the calculation of basic net (loss) income per share. Diluted net (loss) income per share is computed by dividing the net (loss) income by the weighted-average shares of common stock and potentially dilutive securities outstanding during the period using the treasury stock and if-converted methods, unless their inclusion would have been anti-dilutive. For purposes of the diluted net loss per share calculation, warrants, convertible notes and common stock options were considered as potentially dilutive securities.

Since the Company was in a loss position for the three and six months ended June 30, 2026 and three months ended June 30, 2025, basic net loss per share is the same as diluted net loss per share as the inclusion of all potentially dilutive shares of common stock was anti-dilutive, while for the six months ended June 30, 2025, potentially dilutive securities were included in the diluted weighted average share count because their inclusion was dilutive.

Basic and diluted net (loss) income per share for the three and six months ended June 30, 2026 and 2025 were calculated as follows (in thousands, except share and per share amounts):


Three months ended June 30, 2026
Net loss	$	(1,155)
Weighted average shares of common stock outstanding, basic and diluted		50,530,946
Net loss per share, basic and diluted	$	(0.02)


Six months ended June 30, 2026
Net loss	$	(12,948)
Weighted average shares of common stock outstanding, basic and diluted		45,599,911
Net loss per share, basic and diluted	$	(0.28)


Three months ended June 30, 2025
Net loss	$	(6,642)
Weighted average shares of common stock outstanding, basic and diluted		11,090,809
Net loss per share, basic and diluted	$	(0.60)


Six months ended June 30, 2025
Net income	$	2,453
Weighted average shares of common stock outstanding, basic		7,557,472
Net income per share, basic		0.32
Weighted average shares of common stock outstanding, diluted		7,848,566
Net income per share, diluted	$	0.31

The following unweighted potentially dilutive securities outstanding have been excluded from the computation of diluted weighted average shares outstanding because such securities have an anti-dilutive impact:


		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2026	2025	2026	2025
Warrants		18,389,740	3,747,798	18,389,740	3,747,798
Common stock options and restricted stock units		11,535,322	461,962	11,535,322	170,869
Convertible notes		2,902,429	399,128	2,902,429	399,128
		32,827,491	4,608,888	32,827,491	4,317,795

Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which is intended to improve financial reporting by requiring disaggregated disclosure of certain costs and expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and for interim periods within fiscal years beginning after December 15, 2027, with early adoption

permitted, and may be applied on either a prospective or retrospective basis. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.

In December 2025, the FASB issued ASU No. 2025-11 Interim Reporting (Topic 270), which clarifies interim disclosure requirements and enhances clarity in the application of Topic 270. ASU No. 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption is permitted. The amendments of this ASU can be applied prospectively or retrospectively. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.