On April 20, 2026, we completed the previously announced Spin-Off of First Tracks Biotherapeutics. The Spin-Off of First Tracks Biotherapeutics was achieved through our pro rata distribution of all of the outstanding shares of common stock of First Tracks Biotherapeutics to holders of record of our common stock. Each holder of record of our common stock received one share of First Tracks Biotherapeutics’ common stock for every one share of our common stock held on April 6, 2026, the record date for the distribution. The historical balance sheet and statements of operations of First Tracks Biotherapeutics have been presented as discontinued operations in the consolidated financial statements and prior periods have been restated.

In addition to the Separation and Distribution Agreement, the Company entered into various other agreements to provide a framework for its relationship with First Tracks Biotherapeutics after the Spin-Off, including a transition services agreement.

Under the terms of the transition services agreement, First Tracks Biotherapeutics agreed to provide the Company on an interim, transitional basis, various services, including, but not limited to, accounts payable administration, information technology services, general administrative services and other support services commencing on the Spin-Off date and terminating up to one year following the date of the Spin-Off. During the six months ended June 30, 2026, there were approximately $0.4 million of transition services expenses associated with the provision of services from First Tracks Biotherapeutics.

The following table represents the carrying value of assets distributed as part of the Spin-Off on April 20, 2026:


(in thousands)	April 20, 2026
Assets:
Cash and cash equivalents	$	100,000
Prepaid expenses and other current assets		2,948
Total current assets		102,948
Property and equipment, net		1,174
Total assets	$	104,122

The following table presents a reconciliation of the carrying amount of assets of First Tracks Biotherapeutics to total assets of the discontinued operations in the consolidated balance sheets as of December 31, 2025 and December 31, 2024:


(in thousands)	December 31, 2025		December 31, 2024
Assets:
Cash and cash equivalents	$	100,000	$	100,000
Prepaid expenses and other current assets		4,762		4,560
Total current assets		104,762		104,560
Property and equipment, net		1,259		1,718
Total assets	$	106,021	$	106,278

The following table presents a reconciliation of the major classes of line items constituting pretax loss from discontinued operations to after-tax loss in discontinued operations for the six months ended June 30, 2026 and the years ended December 31, 2025 and December 31, 2024:


	Six Months Ended June 30,			Year Ended December 31,			Year Ended December 31,
(in thousands)	2026			2025			2024
Research and development	$	39,462		$	139,614		$	152,345
General and administrative		22,519			39,392			28,756
Total operating expenses		61,981			179,006			181,101
Loss from operations		(61,981	)		(179,006	)		(181,101	)
Other (expense) income, net:
Interest income		1,074			3,686			4,720
Other (expense) income, net		(3	)		(23	)		14
Total other expense, net		1,071			3,663			4,734
Loss from discontinued operations before income taxes		(60,910	)		(175,343	)		(176,367	)
Benefit for income taxes		15,548			608			155
Loss from discontinued operations, net of tax	$	(45,362	)	$	(174,735	)	$	(176,212	)