v3.26.1
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Basis of Preparation

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 Company’s 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

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, stockholders' equity, net loss, comprehensive

income (loss) or cash flows.

Reverse Stock Split

Reverse Stock Split

On July 17, 2026, the Company amended its amended and restated certificate of incorporation and effected a 5.9218-for-1 reverse stock split of its issued and outstanding common stock (the “Reverse Stock Split”). Accordingly, every 5.9218 shares of common stock were combined into one share of common stock. Fractional shares resulting from the Reverse Stock Split were rounded in accordance with the terms of the amendment to the Company’s certificate of incorporation.

All common stock share amounts, stock option and warrant shares, conversion ratios, shares reserved for future issuance, net loss per share, and other per share information presented in the accompanying financial statements and notes thereto have been retroactively adjusted to reflect the Reverse Stock Split for all periods presented. The par value of the Company’s common stock was not affected by the Reverse Stock Split.

Use of Estimates

Use of Estimates

The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed financial statements, and the reported amounts of expenses during the reporting period. On an ongoing basis, the Company evaluates estimates and assumptions, including but not limited to those related to revenue recognition, lease liabilities, fair value of redeemable convertible preferred stock and common stock, stock-based compensation expense, accruals for research and development costs, the valuations of deferred tax assets, the fair value of the convertible note and uncertain income tax positions. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from those estimates.

Government Grants

Government Grants

The Company accounts for government grants received by business entities in accordance with ASC 832, Government Grants. Government grants are recognized when it is probable that the Company will comply with the conditions attached to the grant and that the grant will be received. Grants related to income are recognized on a systematic and rational basis over the periods in which the Company recognizes the related costs as expenses.

The Company has determined that its grants awarded by the California Institute for Regenerative Medicine ("CIRM") are grants related to income because the grants are intended to reimburse qualifying research and development expenditures and are not conditioned upon the acquisition or construction of long-lived assets. The Company has elected to present amounts recognized in earnings as a reduction of research and development expense in the condensed statements of operations.

Cash received in advance of incurring qualifying expenditures is recorded as a government grant liability within accrued expenses and other current liabilities. Grant receivables are recorded when qualifying expenditures have been incurred and collection is probable. Grant amounts are recognized only when the Company concludes it is probable that all applicable grant conditions will be satisfied and the grant proceeds will be received.

Recently Adopted Accounting Pronouncements

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 ("CIRM") and accounts for such grants as income-related government grants under ASC 832. The Company elected to present grant amounts recognized in earnings as a reduction of research and development expense. The adoption of the standard did not have a material impact on the Company's condensed financial statements other than the establishment of accounting policies and related disclosures for government grants.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which introduces new disclosure requirements to disaggregate certain natural expenses underlying income statement captions. ASU 2024-03 is effective for annual periods in fiscal years beginning after December 15, 2026, and for interim periods thereafter. Early adoption is permitted. The application of ASU 2024-03 is prospective for periods beginning after the effective date, although retrospective application to prior periods is allowed. The Company is currently assessing the impact that ASU 2024-03 will have on its condensed financial statements and disclosures.

Concentration of Credit Risk

Concentration of Credit Risk

The Company recognized revenue from collaboration partners in the three and six months ended June 30, 2026 and 2025, with all revenue generated within the United States. The percentages of collaboration revenue and accounts receivable from each of the Company’s customers that individually accounted for 10% or more of its total collaboration revenue and accounts receivable were as follows:

 

 

Accounts Receivable, net

 

 

Revenue

 

 

Revenue

 

 

As of June 30,

 

 

As of December 31,

 

 

Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Prevail

 

 

96

%

 

 

98

%

 

 

100

%

 

 

98

%

 

 

100

%

 

 

98

%

 

As of June 30, 2026 and December 31, 2025, the Company reported no contract assets. The Company routinely assesses its accounts receivable and contract assets for potential impairment and credit losses. As of June 30, 2026 and December 31, 2025, no impairment or credit loss allowance was recorded, respectively.

Unaudited Interim Financial Information

Unaudited Interim Financial Information

The accompanying condensed financial statements as of June 30, 2026, and for the three and six months ended June 30, 2026 and 2025, are unaudited. The condensed balance sheet as of December 31, 2025 was derived from the Company’s audited financial statements included in the Company's final prospectus filed with the Securities and Exchange Commission on July 24, 2026 pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended. The unaudited interim condensed financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of June 30, 2026, and the results of its operations and its cash flows for the three and 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 full year ending December 31, 2026, or for any other future period. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2025, included in the Company's final prospectus filed with the Securities and Exchange Commission on July 24, 2026 pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended.