Note 10. Derivative Financial Instruments

BTI identified certain freestanding financial instruments and/or embedded features that require separate accounting from the borrowings under the OFA Facilities. This includes the OnkosXcel Warrants held by the Lenders. The OnkosXcel Warrants do not meet certain scope exceptions under U.S. GAAP, primarily because the exercise price and number of shares of the Company’s common stock issuable under the instrument is variable, and the instrument meets the definition of a derivative instrument. Therefore, this instrument is recorded as Derivative liabilities in the Condensed Consolidated Balance Sheets. The Derivative liability was recorded at fair value on the date of issuance and is revalued on each balance sheet date until the instrument is settled or expire, with changes in the fair value between reporting periods recorded within Other (income) expense, net in the Company’s Condensed Consolidated Statements of Operations.

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On March 25, 2024, with respect to the Purchase Agreement discussed in Note 11, Common Stock Financing Activities, BTI determined that the Accompanying Warrants fail the equity classification criteria and are therefore

classified as liabilities in accordance with ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives and Hedging (“ASC 815”). The Accompanying Warrants failed to meet the requirements to be indexed to equity and equity classified, and meet the definition of a derivative instrument. Therefore, these instruments are recorded as Derivative liabilities in the Condensed Consolidated Balance Sheet as of June 30, 2026. The respective derivative liabilities were recorded at fair value on the date of issuance and are revalued on each balance sheet date until such instruments are settled or expire, with changes in the fair value between reporting periods recorded within Other (income) expense, net in the Company’s Condensed Consolidated Statements of Operations. We value the Accompanying Warrants using the Black-Scholes option pricing model as discussed in Note 14, Fair value measurements.

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On November 21, 2024, the exercise price of 534 of the total 539 Accompanying Warrants was reduced from $51.20 to $9.136 per share. On March 10, 2026, in connection with the March 2026 Offering discussed in Note 11, Common Stock Financing Activities, the exercise price of 534 of the Accompanying Warrants was further reduced from $9.136 to $1.614 per share, the exercise price of the remaining 5 Accompanying Warrants was reduced from $51.20 to $1.614 per share and the term of all 539 Accompanying Warrants was extended to five years following the closing date of the March 2026 Offering. As a result of the repricing, the Company recorded the increase in fair value of $224 as an increase to the carrying value of Derivative liabilities, and as a reduction to Additional paid-in-capital in the Company’s Condensed Consolidated Balance Sheets. For the three and six months ended June 30, 2026, the Company recorded a net loss of $34 and a net gain of $96, respectively, in Other (income) expense, net, in the Company’s Condensed Consolidated Statements of Operations. As of June 30, 2026, the fair value of the Accompanying Warrants was $630.

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On November 25, 2024, with respect to the Underwriter Agreement discussed in Note 11, Common Stock Financing Activities, the Company issued additional warrants (the “November 2024 Accompanying Warrants”). The November 2024 Accompanying Warrants failed to meet the requirements to be indexed to equity and equity classified, and meet the definition of a derivative instrument. Therefore, these instruments are recorded as Derivative liabilities in the Consolidated Balance Sheet as of June 30, 2026. The respective derivative liabilities were recorded at fair value on the date of issuance and are revalued on each balance sheet date until such instruments are settled or expire, with changes in the fair value between reporting periods recorded within Other (income) expense, net in the Company’s Condensed Consolidated Statements of Operations.

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On March 10, 2026, in connection with the March 2026 Offering discussed in Note 11, Common Stock Financing Activities, the exercise price of 846 of the total 913 November 2024 Accompanying Warrants was reduced from $7.68 to $1.614 per share and the term was extended to five years following the closing date of the March 2026 Offering. As a result of the repricing, the Company recorded the increase in fair value of $282 as an increase to the carrying value of Derivative liabilities, and as a reduction to Additional paid-in-capital in the Company’s Condensed Consolidated Balance Sheets. For the three and six months ended June 30, 2026, the Company recorded a net loss of $56 and a net gain of $170, respectively, in Other (income) expense, net, in the Company’s Condensed Consolidated Statements of Operations. As of June 30, 2026, the fair value of the November 2024 Accompanying Warrants was $1,046.

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On March 3, 2025, with respect to the March 2025 Offering discussed in Note 11, Common Stock Financing Activities, the Company issued additional warrants (the “March 2025 Accompanying Warrants”). The March 2025 Accompanying Warrants failed to meet the requirements to be indexed to equity and equity classified, and meet the definition of a derivative instrument. Therefore, these instruments are recorded as Derivative liabilities in the Condensed Consolidated Balance Sheet as of June 30, 2026. The respective derivative liabilities were recorded at fair value on the date of issuance and are revalued on each balance sheet date until such instruments are settled or expire, with changes in the fair value between reporting periods recorded within Other (income) expense, net in the Company’s Condensed Consolidated Statements of Operations. In August 2025, 2,300 of the March 2025 Accompanying Warrants were exercised. In connection with the exercise, the Company remeasured the fair value of the warrant liability, resulting in a recognized net loss of $9,920 recorded in Other (income) expense, net in the Company’s Condensed Consolidated Statements of Operations. As of June 30, 2026, the fair value of the remaining 1,700 March 2025 Accompanying Warrants was $167. For the three and six months ended June 30, 2026, the Company recorded a net loss of $16 and a net gain of $187, for the remaining warrants in Other (income) expense, net, in the Company’s Condensed Consolidated Statements of Operations.

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In connection with the March 2025 Offering discussed in Note 11, Common Stock Financing Activities, the Company also issued option warrants (the “Option Warrants”). The Option Warrants failed to meet the requirements to be indexed to equity and equity classified, and meet the definition of a derivative instrument. Therefore, these instruments are initially recorded as Derivative liabilities. The respective derivative liabilities were recorded at fair value on the date of issuance in the amount of $369. The Option Warrants expired on March 18, 2025 without being exercised, and the Company recorded a termination gain of $369 in Other (income) expense, net, in the Company’s Condensed Consolidated Statements of Operations. As of June 30, 2026, the fair value of the Option Warrants was $0.

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On March 10, 2026, with respect to the March 2026 Offering discussed in Note 11, Common Stock Financing Activities, the Company issued additional warrants (the “March 2026 Accompanying Warrants”). The March 2026 Accompanying Warrants failed to meet the requirements to be indexed to equity and equity classified, and met the definition of a derivative instrument. Therefore, these instruments are recorded as Derivative liabilities in the Condensed Consolidated Balance Sheet as of June 30, 2026. The respective derivative liabilities were recorded at fair value on the date of issuance in the amount of $5,940 and are revalued on each balance sheet date until such instruments are settled or expire, with changes in the fair value between reporting periods recorded within Other (income) expense, net in the Company’s Condensed Consolidated Statements of Operations. As of June 30, 2026, the fair value of the March 2026 Accompanying Warrants was $5,267. For the three and six months ended June 30, 2026, the Company recorded a net loss of $287, and a net gain of $673, respectively, in Other (income) expense, net, in the Company’s Condensed Consolidated Statements of Operations.