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The Company was organized in an “Up-C” structure, and the Company’s only material asset consists of common membership units of Cibus Global (Common Units). The Company’s amended and restated certificate of incorporation designates two classes of the Company’s common stock: (i) Class A Common Stock, par value $0.0001 per share (the Class A Common Stock), which shares have full voting and economic rights, and (ii) Class B Common Stock, par value $0.0001 per share (the Class B Common Stock), which shares have full voting, but no economic rights. For holders of Class B Common Stock, each share of Class B Common Stock was paired with a Common Unit (collectively, an Up-C Unit). As of December 31, 2025, there were no remaining Common Unit holders of the noncontrolling interest of Cibus Global and 100 percent of the Common Units of Cibus Global are held by Cibus.

Basis of Presentation

The unaudited condensed consolidated financial statements of Cibus, Inc. have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP or GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (SEC) applicable to interim financial statements and has included the accounts of Cibus and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In the Company’s opinion, the accompanying condensed consolidated financial statements reflect all adjustments necessary for a fair statement of its statements of financial position, results of operations, and cash flows for the periods presented but they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Except as otherwise disclosed herein, these adjustments consist of normal recurring items. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole or any other interim period.

For further information, refer to the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 17, 2026 (Annual Report). The accompanying condensed consolidated balance sheet as of December 31, 2025, was derived from the audited consolidated financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in the Annual Report.

Going Concern

The Company has incurred losses since its inception and anticipates that it will continue to generate losses for the next several years. The Company’s net loss was $43.4 million and cash used in operating activities was $20.9 million for the six months ended June 30, 2026. As of June 30, 2026, the Company had $20.4 million of cash and cash equivalents and $14.4 million of current liabilities. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year from the issuance of these condensed consolidated financial statements.

Cibus has taken a series of cost cutting initiatives designed to streamline its cost structure, however, Cibus will need to raise additional capital to support its business plans and successful execution of these plans is not within the Company’s control. Cibus expects to finance a portion of future cash needs through (i) cash on hand, (ii) commercialization activities, which may result in various types of revenue streams from future product development agreements and technology licenses, including upfront and milestone payments, annual license fees, and royalties, (iii) government or other third party funding, (iv) public or private equity or debt financings (including through the continued availability of the ATM Facility, as defined in Note 5, or another continuous offering facility), or (v) a combination of the foregoing.

If the Company is unable to raise additional capital in a sufficient amount or on acceptable terms, the Company may have to implement additional, more stringent cost reduction measures to manage liquidity, and the Company may have to significantly delay, scale back, or cease operations, in part or in full. If the Company raises additional funds through the issuance of additional debt or equity securities, including as part of a strategic alternative, it could result in substantial dilution to its existing stockholders and increased fixed payment obligations, and these securities may have rights senior to those of the Company’s shares of common stock. Any of these events could

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significantly impact the Company’s business, financial condition, and prospects.

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described above.

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Management evaluates its estimates on an ongoing basis. Although estimates are based on the Company’s historical experience, knowledge of current events and actions it may undertake in the future, actual results may ultimately materially differ from these estimates and assumptions. Key estimates made by the Company include revenue recognition, useful lives and impairment of long-lived assets, valuation of equity-based awards and related equity-based compensation expense, valuation of intangible assets, valuation allowances on deferred tax assets, the assumptions underlying the determination of the estimated incremental borrowing rate for the determination of the Company’s operating leases, valuation of warrant liabilities, and the valuation of the Royalty Liability (which refers to the Company’s future royalty payment obligations that the Company undertook to provide to certain investors, including related parties, in exchange for certain warrants that these investors acquired in financing transactions in November 2013 and December 2014 and subsequently surrendered to Cibus Global).

Contract Assets and Liabilities

Contract assets primarily include amounts related to contractual rights to consideration for completed performance not yet invoiced. The Company recognized $0.3 million in contract assets as of June 30, 2026. There was $0.2 million in contract assets as of December 31, 2025, which are included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets.

The Company records contract liabilities when cash payments are received or due in advance of performance, primarily related to advances of upfront and milestone payments from contract research and collaboration agreements. Contract liabilities consist of deferred revenue on the accompanying condensed consolidated balance sheets. The Company expects to recognize the amounts included in deferred revenues within one year.

The following table represents the deferred revenue activity for the three months ended June 30, 2026, and 2025:

In Thousands						2026						2025
Balance as of March 31,						$	449					$	863
Unearned revenue from cash received during the period						180						112
Revenue recognized that was included in the balance at the beginning of the period						(2)						(57)
Balance as of June 30,						$	627					$	918

The following table represents the deferred revenue activity for the six months ended June 30, 2026, and 2025:

In Thousands						2026						2025
Balance as of December 31,						$	536					$	932
Unearned revenue from cash received during the period						624						914
Revenue recognized that was included in the balance at the beginning of the period						(533)						(928)
Balance as of June 30,						$	627					$	918

Net Loss Per Share of Class A Common Stock

Weighted average shares of Class A Common Stock outstanding excludes unvested Class A Common Stock, which will be treated as outstanding for financial statement presentation purposes only after such awards have vested and, therefore, have ceased to be subject to a risk of forfeiture. Accordingly, unvested shares of Class A Restricted Stock (as defined below) are excluded from the calculation of net loss per share of Class A Common Stock.

See Note 5 for a detailed discussion of the pre-funded warrants issued in January 2025 and subsequent exercises. Outstanding pre-funded warrants are considered equity instruments and are reported in stockholders’ equity in the Company’s consolidated balance sheets. The weighted average shares of Class A Common Stock outstanding includes the shares issuable upon exercise of the pre-funded warrants and are included in the determination of the Company’s basic and diluted net loss per share of Class A Common Stock.

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For all periods presented, there is no difference in the number of shares used to calculate basic and diluted shares outstanding as inclusion of the common stock equivalent securities would be antidilutive.

The following table shows the computation of basic and diluted net loss per share of Class A Common Stock for the three and six months ended June 30, 2026, and 2025:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands, Except Share and Per Share Amounts						2026						2025						2026						2025
Numerator:
Net loss attributable to Cibus, Inc. stockholders						$	(22,145)					$	(25,372)					$	(43,367)					$	(72,258)
Denominator:
Weighted average shares of Class A common stock outstanding						76,355,936						38,148,014						70,611,006						34,879,069
Effect of pre-funded warrants						400,000						3,470,879						400,000						3,474,862
Weighted average shares of Class A common stock outstanding – basic and diluted						76,755,936						41,618,893						71,011,006						38,353,931
Basic and diluted net loss per share of Class A common stock						$	(0.29)					$	(0.61)					$	(0.61)					$	(1.88)

The Company’s potential dilutive securities, which include common stock warrants, unvested restricted stock units, unvested restricted stock awards, and options to purchase Class A Common Stock, have been excluded from the computation of diluted net loss per share of Class A Common Stock as the effect would be antidilutive. Therefore, the weighted average number of shares of Class A Common Stock outstanding used to calculate both basic and diluted net loss per share of Class A Common Stock is the same.

The following potential dilutive securities, presented on an as converted basis, were excluded from the calculation of net loss per share of Class A Common Stock due to their antidilutive effect:

			As of June 30,
			2026						2025
Stock options outstanding			3,805,072						1,309,968
Unvested restricted stock units			2,829,817						1,108,895
Unvested restricted stock awards			40,057						153,490
Common warrants			10,496,523						10,496,523
Total			17,171,469						13,068,876

Segment Reporting

Cibus has one operating and reportable segment. The Chief Operating Decision Maker (CODM) is the Chief Executive Officer who manages business activities, assesses performance, and allocates resources on a consolidated basis. For the three and six months ended June 30, 2026, and 2025, all revenues from the Company’s external customers were derived, and all long-lived assets were located, in the United States. The operating segment revenues are derived from customers as a result of Cibus providing research and development (R&D) services to develop plant traits which are specific genetic characteristics in the DNA of a plant’s seed.

The CODM utilizes consolidated net loss in assessing performance and allocating resources by comparing net loss against prior periods and the Company’s forecast. The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets.

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Segment financial information, including significant segment expenses, which are regularly provided to the CODM and included in net loss was as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Revenue						$	994					$	933					$	2,675					$	1,967
Less:
Personnel expenses						5,224						6,787						11,012						13,548
Professional fees						2,000						2,708						3,324						8,131
Stock-based compensation						1,484						1,978						3,055						4,477
Goodwill impairment						—						—						—						20,950
Other segment expenses (1)						5,211						7,406						10,329						14,378
Total operating expenses						13,919						18,879						27,720						61,484
Loss from operations						(12,925)						(17,946)						(25,045)						(59,517)
Royalty liability interest expense - related parties						(9,475)						(8,668)						(18,596)						(17,045)
Other interest income, net						111						106						139						225
Non-operating income (expense), net						150						(23)						148						416
Income tax expense						(6)						(27)						(13)						(29)
Total segment loss						$	(22,145)					$	(26,558)					$	(43,367)					$	(75,950)

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(1) Other segment expenses are primarily comprised of facilities and asset related expenses such as rent, asset depreciation and amortization, utilities, property taxes, and repairs and maintenance and also include insurance, dues and subscriptions, licenses, lab supplies, product development, and travel.

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Financial Instruments Required to be Carried at Fair Value

The Company’s financial instruments measured at fair value and their respective levels in the fair value hierarchy as of June 30, 2026, and December 31, 2025, were as follows:

						June 30, 2026																								December 31, 2025
						Fair Value of Liabilities																								Fair Value of Liabilities
In Thousands						Level 1						Level 2						Level 3						Total						Level 1						Level 2						Level 3						Total
Common warrants						$	—					$	—					$	38					$	38					$	—					$	—					$	79					$	79
Total						$	—					$	—					$	38					$	38					$	—					$	—					$	79					$	79

The following table summarizes the common warrants activity for the three months ended June 30, 2026, and 2025:

In Thousands						2026						2025
Balance as of March 31,						$	89					$	217
Reclassified to stockholders’ equity						—						(153)
Change in fair value						(51)						7
Balance as of June 30,						$	38					$	71

The following table summarizes the common warrants activity for the six months ended June 30, 2026, and 2025:

In Thousands						2026						2025
Balance as of December 31,						$	79					$	2,268
Reclassified to stockholders’ equity						—						(1,742)
Change in fair value						(41)						(455)
Balance as of June 30,						$	38					$	71

In January 2025, as a result of contractual amendments with certain holders of common warrants, the Company reclassified the fair value of 1,100,000 common warrants issued in 2024 of $1.6 million from Class A common stock warrants liability to a component of stockholders’ equity within additional paid-in capital in the accompanying consolidated balance sheets. The change in fair value of the Class A common stock warrants liability related to these common warrants of $0.3 million between December 31, 2024, and January 24, 2025, is reflected in non-operating income (expense), net in the Company’s consolidated statements of operations for the six months ended June 30, 2025.

Furthermore, as a result of the Company obtaining the requisite approval from its stockholders on May 22, 2025, with respect to those common warrants issued in 2024 held by Mr. Riggs, the Company reclassified the fair value of 98,040 common warrants issued in 2024 of $0.1 million from Class A common stock warrants liability to a component of stockholders’ equity within additional paid-in capital in the accompanying condensed consolidated balance sheets. The change in fair value of the Class A common stock warrants liability related to these common warrants of $0.1 million between March 31, 2025, and May 23, 2025, is reflected in non-operating income (expense), net in the Company’s condensed consolidated statements of operations for the three and six months ended June 30, 2025.

The Company estimates the fair value of the liability classified common warrants as of the date of issuance and at the end of every reporting period using a Black-Scholes option pricing model, which requires it to make assumptions regarding future stock price volatility and dividend yield. The Company estimates the risk-free interest rate based on the United States Treasury zero-coupon yield curve for the remaining life of the common warrants. The Company uses its own historical stock price volatility, over the remaining life of the common warrants. The Company does not pay dividends and does not expect to pay dividends in the foreseeable future.

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The estimated fair values of the common warrants, and the assumptions used for the Black-Scholes option pricing model were as follows:

Property, plant, and equipment, net consists of the following:

In Thousands, except useful life						Useful Life (Years)						As of June 30, 2026						As of December 31, 2025
Property, plant, and equipment, net:
Buildings						10 - 20						$	900					$	900
Leasehold improvements						shorter of lease term or useful life						2,458						2,458
Office furniture and equipment						5 - 10						15,091						15,091
Computer equipment and software						3 - 5						4,889						4,737
Assets in progress						N/A						—						155
Total property, plant, and equipment												23,338						23,341
Less accumulated depreciation and amortization												(18,419)						(17,041)
Total												$	4,919					$	6,300

Depreciation and amortization expense is as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Depreciation and amortization expense						$	681					$	1,093					$	1,396					$	2,245

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variables such as future royalties and operating margins, economic conditions, probability of success, market competition, inflation, and discount rates. In addition, the Company compares the fair value of the reporting unit to the Company’s overall market capitalization. The Company utilized its most recent cash flow projections in combination with the Company’s stock price as of March 31, 2025, to calculate the fair value of the reporting unit using a long-term growth rate of 3 percent and a discount rate of 47 percent, which are Level 3 fair value measurements. The Company determined its goodwill was impaired by $21.0 million, which is recorded in the accompanying condensed consolidated statements of operations for the six months ended June 30, 2025.

The Company’s gross amount of goodwill prior to accumulated impairment losses as of June 30, 2026, and 2025, was $585.3 million. The Company’s accumulated goodwill impairment loss as of June 30, 2026, and 2025, was $352.8 million.

A triggering event that could indicate impairment and necessitate an evaluation of goodwill includes, but is not limited to, macroeconomic conditions, industry and market considerations, increases in Cibus’ costs, commercial performance relative to strategic initiatives, adverse regulatory developments, or the decline in Cibus’ market capitalization.

To the extent a triggering event occurs and Cibus concludes that goodwill has become further impaired, Cibus may be required to incur material write-offs relating to such impairment and any such write-offs could have a material impact on the Company’s future operating results and financial position.

Intangible Assets

Intangible assets as of June 30, 2026, were as follows:

In Thousands						Gross Carrying Amount						Accumulated Amortization						Intangible Assets, Net
Developed technology						$	14,148					$	(2,181)					$	11,967
Trade name						22,230						(3,427)						18,803
Total						$	36,378					$	(5,608)					$	30,770

Intangible assets as of December 31, 2025, were as follows:

In Thousands						Gross Carrying Amount						Accumulated Amortization						Intangible Assets, Net
Developed technology						$	14,148					$	(1,828)					$	12,320
Trade name						22,230						(2,871)						19,359
Total						$	36,378					$	(4,699)					$	31,679

Total amortization expense is as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Amortization expense						$	454					$	454					$	909					$	909

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As of June 30, 2026, future amortization expense is estimated as follows:

In Thousands						Amortization Expense
Remainder of 2026						$	910
2027						1,819
2028						1,819
2029						1,819
2030						1,819
2031						1,819
Thereafter						20,765
Total future amortization expense						$	30,770

March 2026 SEC-Registered Public Offering

In the March 2026 Follow-On Offering, the Company issued 6,976,744 shares of its Class A Common Stock. The offering price for each share of Class A Common Stock was $2.15. The Company received net proceeds related to the March 2026 Follow-On Offering of approximately $13.6 million after deducting approximately $1.4 million for underwriting discounts and commissions and certain other offering expenses payable by the Company.

ATM Facility

On May 15, 2026, the Company entered into an Open Market Sale Agreement (Sales Agreement) with Jefferies, LLC (Jefferies). Pursuant to the terms of the Sales Agreement, the Company may offer and sell through Jefferies, from time-to-time and at its sole discretion, shares of the Company’s Class A Common Stock, having an aggregate offering price of up to $50.0 million (ATM Facility). During the six months ended June 30, 2026, the Company issued 3,059 shares of Class A Common Stock under the ATM Facility. Due to commissions and other offering expenses payable by the Company related to the establishment of the ATM Facility, there were no net proceeds received in the six months ended June 30, 2026.

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Class A Common Stock

Shares of Class A Common Stock have full voting and economic rights. Unvested shares of Class A Restricted Stock, as defined below, which were issued as equity compensation to certain of the Company’s employees and executive officers, carry all voting, dividend, distribution, and other rights as apply to shares of Class A Common Stock generally, except that (i) shares of Class A Restricted Stock are subject to transfer restrictions and (ii) dividends and distributions are held by the Company until vesting of the underlying shares of Class A Restricted Stock and remain subject to the same forfeiture provisions as such shares.

Class A Restricted Stock

Restricted shares of Class A Common Stock (Class A Restricted Stock) are considered to be legally issued and outstanding as of the date of grant, notwithstanding that these shares remain subject to risk of forfeiture if the vesting conditions for such shares are not met. For financial statement presentation purposes, Class A Restricted Stock is treated as issued, but will only be treated as outstanding after such awards have vested and, therefore, have ceased to be subject to a risk of forfeiture. Accordingly, unvested shares of Class A Restricted Stock are excluded from the calculation of basic net loss per share of Class A Common Stock.

Class B Common Stock

Shares of Class B Common Stock have full voting rights. Shares of Class B Common Stock have no economic rights and do not participate in dividends or undistributed earnings. However, holders of Class B Common Stock hold a corresponding number of economic, non-voting Common Units through which they would receive pro rata distributions from Cibus Global. No shares of Class B Common Stock were outstanding as of June 30, 2026.

Cibus Global Common Units

The Company’s exchange agreement set forth the terms and conditions upon which holders of Up-C Units, comprising an equal number of shares of Class B Common Stock and Cibus Global Common Units, could exchange such Up-C Units for shares of Class A Common Stock. The Up-C Units were generally exchangeable for shares of Class A Common Stock on a one-for-one basis, subject to certain restrictions. The holders of Up-C Units’ ownership of Common Units represented the noncontrolling interest.

Up-C Unit exchanges during the three and six months ended June 30, 2026, and 2025 were as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
						2026						2025						2026						2025
Up-C Units exchanged by holders for Class A Common Stock						—						—						—						8,556

As of June 30, 2026, there were 76,423,033 Cibus Global Common Units outstanding. Of the 76,423,033 Cibus Global Common Units outstanding, all are held by Cibus, Inc. as there are no remaining holders of Up-C Units.

Preferred Stock

Pursuant to the second amended and restated certificate of incorporation, the Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.0001 per share. As of June 30, 2026, the Company has not issued any preferred stock.

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Stock Options

The weighted average fair value of stock options granted, and the assumptions used for the Black-Scholes option pricing model were as follows:

						Six Months Ended June 30,
						2026						2025
Weighted average fair value of stock options granted						$	1.18					$	1.92
Assumptions:
Risk-free interest rate						3.6% - 4.3%						4.1%
Expected volatility						109.7% - 112.6%						106.2% - 110.5%
Expected term (in years)						5.0 - 6.3						5.5 - 6.0

Option strike prices are set at 100 percent or more of the closing share price on the date of grant and generally vest over three to four years following the grant date. Options generally expire 10 years after the date of grant.

Information on stock option activity is as follows:

						Options Exercisable						Weighted Average Exercise Price Per Share						Options Outstanding						Weighted Average Exercise Price Per Share
Balance as of December 31, 2025						382,808						$	99.71					1,358,797						$	30.25
Granted						—						—						2,535,785						1.40
Vested						540,560						2.44						—						—
Exercised						—						—						—						—
Expired						(57,740)						96.81						(57,740)						96.81
Forfeited						(31,770)						4.55						(31,770)						4.55
Balance as of June 30, 2026						833,858						$	40.48					3,805,072						$	10.23

Stock-based compensation expense related to stock option awards is as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Stock-based compensation expense						$	375					$	313					$	830					$	545

As of June 30, 2026, options outstanding had a $0.1 million aggregate intrinsic value and a weighted average remaining contractual term of 9.2 years. As of June 30, 2026, options exercisable had a nominal aggregate intrinsic value and a weighted average remaining contractual term of 7.8 years.

As of June 30, 2026, unrecognized compensation expense related to non-vested stock options was $4.0 million which has a weighted average remaining recognition period of 2.9 years.

Restricted Stock Awards

The Company granted awards of Class A Restricted Stock (RSAs), in connection with its merger with Cibus Global, to Cibus Global members who held unvested restricted profits interest units. The RSAs will continue to vest following their original vesting schedules over the remaining life of the awards which is generally two months to four years after the date of grant.

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Information on RSA activity is as follows:

			Restricted Stock Awards						Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2025			85,185						$	31.50
Granted			—						—
Vested			(43,819)						31.50
Forfeited			(1,309)						31.50
Unvested balance as of June 30, 2026			40,057						$	31.50

The total fair value of RSAs that vested is as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Fair value of shares vested						$	32					$	85					$	86					$	216

There were no RSAs granted during the six months ended June 30, 2026, or 2025.

Stock-based compensation expense related to RSAs is as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Stock-based compensation expense						$	574					$	1,196					$	1,193					$	3,036

As of June 30, 2026, unrecognized compensation expense related to RSAs was $1.3 million which has a weighted average remaining recognition period of 0.6 years.

Restricted Stock Units

The Company grants RSUs which generally vest over four years after the date of grant. Upon vesting, the RSUs are settled as shares of Class A Common Stock.

Information on RSU activity is as follows:

			Restricted Stock Units						Weighted Average Grant Date Fair Value
Unvested balance as of December 31, 2025			1,359,207						$	3.73
Granted			1,799,861						1.35
Vested			(293,017)						4.57
Forfeited			(36,234)						2.75
Unvested balance as of June 30, 2026			2,829,817						$	2.15

The total fair value of RSUs that vested is as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Fair value of shares vested						$	199					$	89					$	599					$	123

The weighted average grant date fair value of RSUs granted during the six months ended June 30, 2026, was $1.35 per share. The weighted average grant date fair value of RSUs granted during the six months ended June 30, 2025, was $2.57 per share.

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Stock-based compensation expense related to RSUs is as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Stock-based compensation expense						$	535					$	469					$	1,032					$	896

As of June 30, 2026, unrecognized compensation expense related to RSUs was $5.3 million which has a weighted average remaining recognition period of 2.9 years.

Certain consolidated statement of operations amounts were as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Stock-based compensation expense:
Research and development						$	517					$	653					$	1,045					$	1,621
Selling, general, and administrative						967						1,325						2,010						2,856
Total						$	1,484					$	1,978					$	3,055					$	4,477

As of June 30, 2026, there were no material changes to what the Company disclosed regarding tax uncertainties or penalties as of December 31, 2025.

Leases

The Company’s financing lease right-of-use (ROU) asset is included in other non-current assets in the condensed consolidated balance sheets.

In June 2026, the Company entered into a new lease for its warehouse facility which extended the lease term until November 30, 2031. The lease includes one option to extend the lease for five years that the Company is not reasonably certain to exercise at the lease commencement; therefore, the extension term is not recognized in the calculation of the lease liability.

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The components of lease expense were as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
In Thousands						2026						2025						2026						2025
Finance lease costs						$	27					$	30					$	54					$	60
Operating lease costs						1,215						2,120						2,435						3,647
Variable lease costs						609						912						1,380						1,920
Total						$	1,851					$	3,062					$	3,869					$	5,627

Operating lease costs for short-term leases was not material for the three and six months ended June 30, 2026, or 2025.

Supplemental cash flow information related to leases was as follows:

												Six Months Ended June 30,
In Thousands																		2026						2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows (operating leases)																		$	2,530					$	2,509

Supplemental balance sheet information related to leases was as follows:

						As of June 30, 2026												As of December 31, 2025
						Operating						Financing						Operating						Financing
Weighted average remaining lease term (years)						8.6						0.2						9.1						0.7
Weighted average discount rate						7.5		%				10.6		%				7.5		%				10.6		%

As of June 30, 2026, future minimum payments under operating leases were as follows:

In Thousands						Operating
Remainder of 2026						$	2,529
2027						5,211
2028						5,253
2029						5,082
2030						5,188
Thereafter						20,486
						43,749
Less: interest						(11,872)
Total						$	31,877
Current portion						$	2,859
Noncurrent portion						$	29,018

As of June 30, 2026, the Royalty Liability reflected an effective yield of 16.5 percent and the amount of aggregated, but unpaid, Royalty Payments is $0.6 million. As of December 31, 2025, the Royalty Liability reflected an effective yield of 16.5 percent.

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The following table summarizes the Royalty Liability activity for the six months ended June 30, 2026, and 2025:

In Thousands						2026						2025
Balance as of December 31,						$	234,923					$	199,442
Interest expense recognized						18,596						17,045
Balance as of June 30,						$	253,519					$	216,487

						Six Months Ended June 30,
In Thousands						2026						2025
Interest paid						$	10					$	40

Non-cash transactions not reported in the condensed consolidated statements of cash flows is as follows:

						Six Months Ended June 30,
In Thousands						2026						2025
Property, plant, and equipment acquired through assuming liabilities						$	—					$	15
Unpaid stock offering costs included in accounts payable						$	—					$	71
Unpaid stock offering costs included in accrued expenses						$	—					$	1,692
Class A common stock warrants reclassification from liability to stockholders’ equity						$	—					$	1,742
Purchase of insurance through vendor financing						$	689					$	723
Establishment of operating lease right-of-use assets and associated operating lease liabilities						$	720					$	—

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