Maplight Therapeutics Inc.
08/13/2026 | Press release | Distributed by Public on 08/13/2026 15:02
Quarterly Report for Quarter Ending June 30, 2026 (Form 10-Q)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report and with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025. Some of the information contained in this discussion and analysis or set forth elsewhere in this Quarterly Report, including information with respect to our plans and strategy for our business, future results of operations and financial position, and our objectives for future operations, includes forward-looking statements that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "might," "intend," "target," "ongoing," "project," "estimate," "believe," "predict," "potential," "continue," the negative of these terms or other similar expressions intended to identify statements about the future. As a result of many factors, including those factors set forth in the section entitled "Risk Factors" of this Quarterly Report, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis or set forth elsewhere in this Quarterly Report.
Overview
We are a clinical-stage biopharmaceutical company focused on improving the lives of patients suffering from debilitating central nervous system, or CNS, disorders. We were founded by globally recognized leaders in psychiatry and neuroscience research to address the lack of circuit-specific pharmacotherapies available for patients. Our discovery platform holds the potential to fill this void by identifying neural circuits causally linked to disease and targeting those circuits for therapeutic modulation. We believe our deep understanding of these causal links between the modulation of defined neural circuits and the resulting changes in disease-specific behaviors will enable us to develop therapeutics that can deliver efficacy, safety, tolerability and ease-of-use advantages to patients and prescribers.
Our lead product candidate, ML-007C-MA, is a fixed-dose combination of an M1/M4 muscarinic agonist, ML-007, co-formulated with a peripherally acting anticholinergic, or PAC, which we are initially developing for the treatment of schizophrenia and Alzheimer's disease psychosis, or ADP. ML-007C-MA is designed to activate both M1 and M4 muscarinic receptors centrally to drive efficacy, while synchronizing the pharmacokinetics of the agonist and antagonist components to mitigate peripheral cholinergic side effects. ML-007 alone, co-administered or co-formulated with the PAC has been evaluated in four Phase 1 trials, with a total of 270 healthy participants enrolled and more than 1,500 doses of ML-007 administered. Based on our clinical and preclinical data, we believe that ML-007C-MA has demonstrated the potential to be a well-tolerated treatment option with convenient dosing, while achieving or exceeding cerebrospinal fluid, or CSF, exposures expected to result in improvement across key symptom domains. In July 2026, we announced positive topline results from ZEPHYR, a Phase 2 trial evaluating ML-007C-MA for the treatment of schizophrenia. Based on the results of ZEPHYR, we intend to engage with the FDA in an end-of-Phase 2 meeting to discuss the path forward for ML-007C-MA in schizophrenia, including the design of a Phase 3 trial which, together with ZEPHYR, would support an initial New Drug Application, or NDA, submission. We have begun planning and site identification for this additional, confirmatory trial.
We are also conducting VISTA, a Phase 2 trial evaluating ML-007C-MA for the treatment of ADP, and we expect to report topline results in the second half of 2027. In December 2025, ML-007C-MA was granted Fast Track designation by the FDA for the treatment of hallucinations and delusions associated with ADP.
Our second clinical stage product candidate, ML-004, is a 5-HT1B/1D agonist that we are developing for the treatment of social communication deficit and/or irritability in autism spectrum disorder, or ASD. In June 2026, we announced topline results from IRIS, a Phase 2 trial evaluating the efficacy, safety and tolerability of ML-004 in adults and adolescents with ASD. Based on the results of IRIS, we intend to engage with the FDA in an end-of-Phase 2 meeting to determine the next steps for development of ML-004 in irritability associated with ASD, after which we intend to evaluate the path forward for ML-004, including potential strategic collaborations and/or funding alternatives.
Since our inception in 2018, we have devoted substantially all of our time and efforts to performing research and development activities, raising capital and recruiting management and technical staff to support our operations. To date, we have financed our operations primarily with proceeds from the sales of our redeemable convertible preferred stock, and most recently, with net proceeds from our initial public offering, or IPO, and our concurrent private placement, or Concurrent Private Placement and our 2026 Private Placement, discussed below.
We have incurred significant net losses since inception. Our net losses for the six months ended June 30, 2026 and 2025 were $120.9 million and $52.2 million, respectively. As of June 30, 2026, we had an accumulated deficit of $481.4 million. We expect to continue to incur significant and increasing expenses and net losses for the foreseeable future as we advance our current and future
product candidates through preclinical and clinical development, seek regulatory approval for such product candidates, maintain and expand our intellectual property portfolio, hire additional research and development and business personnel, expand our infrastructure, scale-up production capabilities and operate as a public company.
We expect to incur additional costs associated with operating as a public company, including significant legal, accounting, insurance, investor relations and other expenses that we did not incur as a private company. We will not generate revenue from product sales unless and until we successfully complete clinical development and obtain regulatory approval for our product candidates. In addition, if we obtain regulatory approval for our product candidates, we expect to incur significant expenses related to developing our commercialization capability to support product sales, marketing, manufacturing and distribution activities, initially in the United States.
As a result, we will need substantial additional funding to support our continuing operations and pursue our growth strategy. Until we can generate significant revenue from product sales, if ever, we expect to finance our operations through a combination of public or private equity offerings and debt financings or other sources, such as collaboration agreements, strategic alliances and licensing agreements. We may be unable to raise additional funds or enter into such other agreements when needed on acceptable terms, or at all. Our failure to raise capital or enter into such agreements as and when needed could have a material adverse effect on our business, results of operations and financial condition.
At this time, due to the inherently unpredictable nature of clinical and preclinical development and given the current stage of our product candidates, we cannot reasonably estimate the costs we will incur and the timelines that will be required to complete development, obtain marketing approval and commercialize our current or future product candidates, if at all. For the same reasons, we are also unable to accurately predict the timing or amount of increased expenses or when, or if, we will be able to achieve profitability. Even if we do achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis. If we fail to become profitable or sustain profitability on a continuing basis, then we may be unable to raise additional capital, maintain our research and development efforts, expand our business or continue our operations at planned levels, and as a result we may be forced to substantially reduce or terminate our operations.
As of June 30, 2026, we had cash, cash equivalents and investments of $351.3 million. Based on our current operational plans and assumptions, we expect that our existing cash, cash equivalents and investments, together with the expected proceeds from our 2026 Private Placement, will be sufficient to fund our operations through 2028. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we expect. If we are unable to raise sufficient funding, we may be unable to continue to operate in the long term. See "Liquidity and Capital Resources - Plan of Operation and Future Funding Requirements" below.
Recent Events
On August 13, 2026, we entered into a securities purchase agreement, or the Purchase Agreement, with certain institutional investors, or the Purchasers, pursuant to which we agreed to issue and sell, in a private placement, (i) 9,197,887 shares, or the Shares, of common stock, and (ii) with respect to certain Purchasers, pre-funded warrants to purchase 3,983,168 shares of Common Stock, or the Pre-Funded Warrants, in lieu of Shares. The purchase price per share of Common Stock is $11.38 per share, or the Purchase Price, and the purchase price for the Pre-Funded Warrants is the Purchase Price minus $0.0001 per share underlying the Pre-Funded Warrants. We anticipate receiving gross proceeds of approximately $150.0 million from the Private Placement, before deducting placement agent fees and estimated offering expenses payable by us.
The Pre-Funded Warrants have a per share exercise price of $0.0001, subject to proportional adjustments in the event of stock splits or combinations or similar events. The Pre-Funded Warrants will not expire until exercised in full. The Pre-Funded Warrants may not be exercised if the aggregate number of shares of common stock beneficially owned by the holder thereof immediately following such exercise would exceed a specified beneficial ownership limitation; provided, however, that a holder that holds less than 20% of the common stock prior to such exercise may increase or decrease the beneficial ownership limitation by giving 61 days' notice to us, but not to any percentage in excess of 19.99%.
In connection with the 2026 Private Placement, we also entered into a registration rights agreement, dated August 13, 2026, or the Registration Rights Agreement, with the investors in the 2026 Private Placement. Pursuant to the terms of the Registration Rights Agreement, we agreed to prepare and file with the Securities and Exchange Commission, or SEC, a registration statement, or the Resale Registration Statement, to register the Shares and the shares issuable upon exercise of the Pre-Funded Warrants for resale within 30 days of the closing date of the 2026 Private Placement, or the Filing Deadline, and to cause the applicable registration statements to become effective within a specified period set forth in the Registration Rights Agreement, or the Effectiveness Deadline. In the event the registration statement has not been filed by the Filing Deadline or has not been declared effective by the SEC by the Effectiveness Deadline, subject to certain limited exceptions, we have agreed to make pro rata payments to each Purchaser as
liquidated damages in an amount equal to 1.0% of the aggregate amount paid pursuant to the Purchase Agreement by such Purchaser for the Purchaser's registrable securities then held, per 30-day period or pro rata for any portion thereof for each such 30-day period during which such event continues, subject to certain caps set forth in the Registration Rights Agreement.
Components of Our Results of Operations
Revenue
To date, we have not generated any revenue from any sources, including from product sales, and we do not expect to generate any revenue from the sale of products in the foreseeable future.
Operating Expenses
Research and Development Expenses
Research and development expenses consist primarily of costs incurred for the development of our product candidates and our research activities and include:
•
the salaries, benefits and other employee-related costs, including stock-based compensation expense, for personnel engaged in research and development functions;
•
the expenses incurred under agreements with contract research organizations, or CROs;
•
the costs of outside consultants, including their fees and travel expenses;
•
the costs of laboratory supplies and acquiring, developing and manufacturing preclinical study and clinical trial materials;
•
the costs associated with clinical trials and preclinical studies; and
•
facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs.
We expense research and development costs as incurred. Costs for external development activities are recognized based on an evaluation of the progress to completion of specific activities. Payments for these activities are based on the terms of the related agreements, which may differ from the timing of costs incurred, and are reflected in our condensed consolidated financial statements as prepaid or accrued research and development expenses.
We typically use our employee and infrastructure resources across our development programs and therefore we do not allocate personnel costs, license payments made under our licensing arrangements or other internal costs to specific development programs or product candidates. We also do not track external expenses by specific development program or product candidate.
Research and development activities are central to our business model. We expect that our research and development expenses will continue to increase substantially for the foreseeable future as we initiate and conduct clinical trials.
The process of conducting the necessary preclinical and clinical research to obtain regulatory approval is costly and time consuming. We cannot reasonably estimate the nature, timing and estimated costs of the efforts that will be necessary to complete development of our current or future product candidates. There are numerous risks and uncertainties associated with the duration and cost of successfully developing product candidates, which can vary significantly, including:
•
successful and timely completion of preclinical studies;
•
initiation of and successful patient enrollment in, and completion of, clinical trials on a timely basis;
•
gaining agreement on the design, endpoints and implementation of preclinical studies and clinical trials with the U.S. Food and Drug Administration, or the FDA, or any comparable foreign regulatory authority;
•
sufficiency of our financial and other resources to complete the necessary preclinical studies and clinical trials;
•
receiving regulatory approvals or authorizations for conducting future clinical trials;
•
our ability to demonstrate to the satisfaction of the FDA or any comparable foreign regulatory authority that the applicable product candidate is safe and effective for its intended uses;
•
our ability to demonstrate to the satisfaction of the FDA or any comparable foreign regulatory authority that the applicable product candidate's benefit risk assessment for its proposed indication is acceptable;
•
timely receipt of marketing approvals for our product candidates from applicable regulatory authorities;
•
the extent of any required post-marketing approval commitments to applicable regulatory authorities;
•
establishing and scaling up, either alone or with third-party manufacturers, manufacturing capabilities of clinical supply for our clinical trials and commercial manufacturing, if any of our product candidates are approved;
•
effectively competing with other therapies available on the market or in development; and
•
successfully identifying and developing, acquiring or in-licensing additional product candidates to expand our pipeline.
A change in the outcome of any of these variables with respect to the development of our current and future product candidates may significantly change the costs and timing associated with the development of those product candidates and we may never succeed in achieving regulatory approval for any of our product candidates. As a result of these uncertainties, we are unable to precisely forecast the duration and completion costs of our research and development activities.
General and Administrative Expenses
General and administrative expenses consist primarily of salaries, benefits and other employee-related costs, including stock-based compensation expense, for personnel in our executive, finance, business development and administrative functions. General and administrative expenses also include legal fees relating to intellectual property and corporate matters; professional fees for accounting, auditing, tax and consulting services; insurance costs; and facility-related expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs.
We expect that our general and administrative expenses will increase in the future as we increase our personnel headcount to support our continued clinical development efforts, research and development activities, manufacturing activities and related expansion of our operations. We also anticipate increased expenses associated with being a public company, including costs for audit, legal, regulatory and tax-related services related to compliance with the rules and regulations of SEC, and the listing standards of the Nasdaq Stock Market LLC, or Nasdaq, director and officer insurance premiums and investor relations costs.
Other Income, Net
Interest Income
Interest income consists of interest income earned on our cash, cash equivalents and investments.
Other Income, Net
Other income, net consists primarily of the amortization of premiums and accretion of discounts to maturity for available-for-sale investments.
Income Taxes
Since our inception, we have not recorded income tax benefits for the net operating losses incurred or the research and development tax credits generated in each year due to the uncertainty of realizing a benefit from those items. As of December 31, 2025, we had U.S. federal and state net operating loss carryforwards of $96.6 million and $13.1 million, respectively, which may be available to offset future taxable income. The federal net operating loss carryforwards do not expire, but may only be used to offset 80% of annual taxable income. The state net operating loss carryforwards expire beginning in 2039. As of December 31, 2025, we also had federal and state research and development tax credit carryforwards of $13.3 million and $0.2 million, respectively.
Results of Operations
Comparison of the Three Months Ended June 30, 2026 and 2025
The following table summarizes our results of operations for the periods indicated (in thousands):
|
Three Months Ended June 30, |
||||||||||||
|
2026 |
2025 |
Change |
||||||||||
|
Operating expenses: |
||||||||||||
|
Research and development |
$ |
53,435 |
$ |
26,846 |
$ |
26,589 |
||||||
|
General and administrative |
10,113 |
3,817 |
6,296 |
|||||||||
|
Total operating expenses |
63,548 |
30,663 |
32,885 |
|||||||||
|
Loss from operations |
(63,548 |
) |
(30,663 |
) |
(32,885 |
) |
||||||
|
Other income, net: |
||||||||||||
|
Interest income |
2,349 |
688 |
1,661 |
|||||||||
|
Other income, net |
1,007 |
130 |
877 |
|||||||||
|
Net loss |
$ |
(60,192 |
) |
$ |
(29,845 |
) |
$ |
(30,347 |
) |
|||
Research and Development Expenses
The following table summarizes our research and development expenses for the periods indicated (in thousands):
|
Three Months Ended June 30, |
||||||||||||
|
2026 |
2025 |
Change |
||||||||||
|
Clinical trial expenses |
$ |
20,716 |
$ |
5,987 |
$ |
14,729 |
||||||
|
Employee-related expenses |
16,836 |
6,958 |
9,878 |
|||||||||
|
Chemistry, manufacturing and controls expenses |
6,331 |
3,404 |
2,927 |
|||||||||
|
Preclinical program expenses |
8,294 |
9,727 |
(1,433 |
) |
||||||||
|
Other expenses |
1,258 |
770 |
488 |
|||||||||
|
$ |
53,435 |
$ |
26,846 |
$ |
26,589 |
|||||||
Research and development expenses were $53.4 million for the three months ended June 30, 2026, compared to $26.8 million for the three months ended June 30, 2025. The increase in research and development expenses of $26.6 million was primarily due to ongoing advancement of our product candidates, which included an increase of $14.7 million in clinical trial expenses and $9.9 million in employee-related expenses, including an increase in stock-based compensation expense of $5.6 million.
General and Administrative Expenses
The following table summarizes our general and administrative expenses for the periods indicated (in thousands):
|
Three Months Ended June 30, |
||||||||||||
|
2026 |
2025 |
Change |
||||||||||
|
Employee-related expenses |
$ |
5,774 |
$ |
1,902 |
$ |
3,872 |
||||||
|
Professional fees and other expenses |
4,339 |
1,915 |
2,424 |
|||||||||
|
$ |
10,113 |
$ |
3,817 |
$ |
6,296 |
|||||||
General and administrative expenses were $10.1 million for the three months ended June 30, 2026, compared to $3.8 million for the three months ended June 30, 2025. The increase in general and administrative expenses of $6.3 million was primarily due to an increase of $3.9 million in employee-related expenses, including an increase in stock-based compensation expense of $2.9 million, and an increase of $2.4 million in professional fees and other expenses, including expenses related to being a public company.
Other Income, Net
Interest Income
Interest income was $2.3 million for the three months ended June 30, 2026, compared to $0.7 million for the three months ended June 30, 2025. The increase in interest income of $1.7 million was due to an increase in investments held during the three months ended June 30, 2026 compared to the three months ended June 30, 2025.
Other Income, Net
Other income, net was $1.0 million for the three months ended June 30, 2026, compared to $0.1 million for the three months ended June 30, 2025. The increase of $0.9 million was primarily due to an increase in the amortization of premiums and accretion of discounts on investments held during the three months ended June 30, 2026.
Comparison of the Six Months Ended June 30, 2026 and 2025
The following table summarizes our results of operations for the periods indicated (in thousands):
|
Six Months Ended June 30, |
||||||||||||
|
2026 |
2025 |
Change |
||||||||||
|
Operating expenses: |
||||||||||||
|
Research and development |
$ |
107,119 |
$ |
46,633 |
$ |
60,486 |
||||||
|
General and administrative |
20,932 |
7,573 |
13,359 |
|||||||||
|
Total operating expenses |
128,051 |
54,206 |
73,845 |
|||||||||
|
Loss from operations |
(128,051 |
) |
(54,206 |
) |
(73,845 |
) |
||||||
|
Other income, net: |
||||||||||||
|
Interest income |
4,821 |
1,499 |
3,322 |
|||||||||
|
Other income, net |
2,370 |
522 |
1,848 |
|||||||||
|
Net loss |
$ |
(120,860 |
) |
$ |
(52,185 |
) |
$ |
(68,675 |
) |
|||
Research and Development Expenses
The following table summarizes our research and development expenses for the periods indicated (in thousands):
|
Six Months Ended June 30, |
||||||||||||
|
2026 |
2025 |
Change |
||||||||||
|
Clinical trial expenses |
$ |
45,535 |
$ |
7,926 |
$ |
37,609 |
||||||
|
Employee-related expenses |
32,829 |
14,008 |
18,821 |
|||||||||
|
Chemistry, manufacturing and controls expenses |
12,748 |
7,360 |
5,388 |
|||||||||
|
Preclinical program expenses |
13,816 |
15,808 |
(1,992 |
) |
||||||||
|
Other expenses |
2,191 |
1,531 |
660 |
|||||||||
|
$ |
107,119 |
$ |
46,633 |
$ |
60,486 |
|||||||
Research and development expenses were $107.1 million for the six months ended June 30, 2026, compared to $46.6 million for the six months ended June 30, 2025. The increase in research and development expenses of $60.5 million was primarily due to ongoing advancement of our product candidates, which included an increase of $37.6 million in clinical trial expenses and an increase of $18.8 million in employee-related expenses, including an increase in stock-based compensation expense of $10.9 million. For the six months ended June 30, 2025, research and development expenses were reduced due to grant earnings recognized of $0.8 million. For the six months ended June 30, 2026, no grant earnings were recognized.
General and Administrative Expenses
The following table summarizes our general and administrative expenses for the periods indicated (in thousands):
|
Six Months Ended June 30, |
||||||||||||
|
2026 |
2025 |
Change |
||||||||||
|
Employee-related expenses |
$ |
12,764 |
$ |
3,962 |
$ |
8,802 |
||||||
|
Professional fees and other expenses |
8,168 |
3,611 |
4,557 |
|||||||||
|
$ |
20,932 |
$ |
7,573 |
$ |
13,359 |
|||||||
General and administrative expenses were $20.9 million for the six months ended June 30, 2026, compared to $7.6 million for the six months ended June 30, 2025. The increase in general and administrative expenses of $13.4 million was primarily due to an increase of $8.8 million in employee-related expenses, including an increase in stock-based compensation expense of $7.0 million, and an increase of $4.6 million in professional fees and other expenses, including expenses related to being a public company.
Other Income, Net
Interest Income
Interest income was $4.8 million for the six months ended June 30, 2026, compared to $1.5 million for the six months ended June 30, 2025. The increase in interest income of $3.3 million was due to an increase in investments held during the six months ended June 30, 2026 compared to the six months ended June 30, 2025.
Other Income, Net
Other income, net was $2.4 million for the six months ended June 30, 2026, compared to $0.5 million for the six months ended June 30, 2025. The increase of $1.8 million was primarily due to an increase in the amortization of premiums and accretion of discounts on investments held during the six months ended June 30, 2026.
Liquidity and Capital Resources
Sources of Liquidity
We have incurred significant net losses since inception. We expect to continue to incur significant and increasing expenses and net losses for the foreseeable future as we advance our current and future product candidates through preclinical and clinical development, seek regulatory approval for such product candidates, maintain and expand our intellectual property portfolio, hire additional research and development and business personnel, expand our infrastructure, scale-up production capabilities and operate as a public company. As of June 30, 2026, we had cash, cash equivalents and investments of $351.3 million and an accumulated deficit of $481.4 million. To date, we have financed our operations primarily with proceeds from the sales of our redeemable convertible preferred stock, and most recently, with net proceeds from our IPO and our Concurrent Private Placement and our 2026 Private Placement.
In October 2025, we closed our IPO, pursuant to which we issued and sold an aggregate of 16,962,500 shares of our common stock at a price of $17.00 per share for net proceeds of $261.6 million, after deducting underwriting discounts and commissions and offering expenses. Concurrent with our IPO, we also closed our Concurrent Private Placement, in which we issued and sold 476,707 shares of our common stock at a price of $17.00 per share for net proceeds of $7.5 million, after deducting placement agent fees and private placement expenses.
On August 13, 2026, we entered into the Purchase Agreement with the Purchasers, pursuant to which we agreed to sell and issue to the Purchasers in the 2026 Private Placement (i) 9,197,887 Shares, and (ii) with respect to certain Purchasers, Pre-Funded Warrants to purchase 3,983,168 shares of common stock in lieu of Shares. The Purchase Price per share of common stock is $11.38 per share and the purchase price for the Pre-Funded Warrants is the Purchase Price minus $0.0001 per share underlying the Pre-Funded Warrants. We anticipate receiving gross proceeds of approximately $150.0 million from the 2026 Private Placement, before deducting placement agent fees and estimated offering expenses payable by us.
Cash Flows
The following table summarizes our cash flows for the periods indicated (in thousands):
|
Six Months Ended June 30, |
||||||||||||
|
2026 |
2025 |
Change |
||||||||||
|
Net cash provided by (used in): |
||||||||||||
|
Operating activities |
$ |
(96,048 |
) |
$ |
(59,517 |
) |
$ |
(36,531 |
) |
|||
|
Investing activities |
127,711 |
54,934 |
72,777 |
|||||||||
|
Financing activities |
(6,759 |
) |
(203 |
) |
(6,556 |
) |
||||||
|
$ |
24,904 |
$ |
(4,786 |
) |
$ |
29,690 |
||||||
Operating Activities
Our cash flows from operating activities are primarily driven by our use of cash for operating expenses and working capital required to support our business. We have historically generated negative cash flows from operating activities primarily due to expenses incurred for our clinical trials, preclinical studies and research and development initiatives.
During the six months ended June 30, 2026, net cash used in operating activities was $96.0 million, primarily resulting from our net loss of $120.9 million, which was primarily attributable to our research and development expenses, partially offset by changes in our operating assets and liabilities of $7.6 million and $17.2 million of non-cash items.
During the six months ended June 30, 2025, net cash used in operating activities was $59.5 million, primarily resulting from our net loss of $52.2 million, which was primarily attributable to our research and development expenses, along with changes in our operating assets and liabilities of $8.7 million, partially offset by $1.4 million of non-cash items.
Investing Activities
Net cash provided by investing activities was $127.7 million for the six months ended June 30, 2026, compared to net cash provided by investing activities of $54.9 million for the six months ended June 30, 2025. The change in cash provided by investing activities during the six months ended June 30, 2026 was driven by the maturities and redemptions of investments.
Financing Activities
Net cash used in financing activities was $6.8 million for the six months ended June 30, 2026, compared to net cash used in financing activities of $0.2 million for the six months ended June 30, 2025. The change in cash used in financing activities was primarily due to the payment of employee tax obligations related to the vesting of restricted stock units during the six months ended June 30, 2026.
Plan of Operation and Future Funding Requirements
We use our capital resources mainly to fund operating expenses, including research and development expenditures. We plan to increase our research and development expenses for the foreseeable future as we continue clinical trial and preclinical activities. At this time, due to the inherently unpredictable nature of clinical and preclinical development and given the early stage of our product candidates, we cannot reasonably estimate the costs that we will incur and the timelines that will be required to complete development, obtain marketing approval and commercialize our current product candidates or any future product candidates, if any. For the same reasons, we are also unable to predict when, if ever, we will generate revenue from product sales or whether, or when, if ever, we may achieve profitability. Clinical and preclinical development timelines, the probability of success, and development costs can differ materially from expectations. In addition, we cannot forecast which product candidates may be subject to future collaborations, when such arrangements will be secured, if at all, and to what degree such arrangements would affect our development plans and capital requirements.
As of June 30, 2026, we had cash, cash equivalents and investments of $351.3 million. Based on our current operational plans and assumptions, we expect that our existing cash, cash equivalents and investments, together with the expected proceeds from our 2026 Private Placement, will be sufficient to fund our operations through 2028. We have based this estimate on assumptions that may prove to be wrong, and we could use our capital resources sooner than we expect.
The timing and amount of our operating expenditures will depend largely on:
•
the scope, timing, progress, costs and results of discovery efforts, preclinical development and clinical trials for our current or future product candidates;
•
the number of clinical trials required for regulatory approval of our current or future product candidates;
•
the costs, timing and outcome of regulatory review of any of our current or future product candidates;
•
the costs associated with acquiring or licensing additional product candidates, technologies or assets, including the timing and amount of any milestones, royalties or other payments due in connection with our acquisitions and licenses;
•
the costs of manufacturing clinical and commercial supplies of our current or future product candidates;
•
the costs and timing of preparing, filing and prosecuting patent applications, maintaining and enforcing our intellectual property rights and defending any intellectual property-related claims, including any claims by third parties that we are infringing upon their intellectual property rights;
•
the effectiveness of our platform in identifying additional targets and indications of interest;
•
our ability to maintain existing and establish new strategic collaborations or other arrangements and the financial terms of any such agreements, including the timing and amount of any future milestone, royalty or other payments due under any such agreement;
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the costs and timing of future commercialization activities, including manufacturing, marketing, market access, sales and distribution, for any of our product candidates for which we receive marketing approval;
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the revenue, if any, received from commercial sales of any of our product candidates for which we receive marketing approval;
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the expenses to attract, hire and retain skilled personnel;
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the costs of operating as a public company;
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our ability to establish a commercially viable pricing structure and obtain approval for coverage and adequate reimbursement from third-party and government payors;
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our ability to address any potential supply chain interruptions or delays;
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our ability to mitigate the impact of adverse macroeconomic or geopolitical conditions, including the ongoing conflicts between Ukraine and Russia and in the Middle East, inflation, tariffs and fluctuations in increased interest rates or other factors, on our preclinical and clinical development or operations;
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the effect of competing technological and market developments; and
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the extent to which we acquire or invest in other businesses, products and technologies.
Our existing cash, cash equivalents and investments will not be sufficient to complete development of any product candidate. Accordingly, we will be required to obtain further funding to achieve our business objectives.
Until we can generate substantial revenue from product sales, if ever, we expect to finance our operations through a combination of public or private equity offerings and debt financings. We may also consider entering into collaborations, strategic alliances and licensing arrangements or selectively partnering for clinical development and commercialization as well as funding through other sources. The sale of additional equity or convertible debt may result in additional dilution to our stockholders. The incurrence of debt financing would result in debt service obligations, and the instruments governing such debt could provide for operating and financial covenants that could restrict our operations or our ability to incur additional indebtedness or pay dividends, among other things. If we raise additional funds through governmental funding, collaborations, strategic partnerships and alliances or marketing, distribution or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us. If we are not able to secure adequate additional funding, we may be forced to make reductions in spending, extend payment terms with suppliers, liquidate assets where possible and/or suspend or curtail planned programs or cease operations. Any of these actions could materially and adversely affect our business, financial condition, results of operations and prospects.
Contractual Obligations and Commitments
Leases
We have a lease for office and laboratory space located in South San Francisco, California. The lease term will be seven years from the lease commencement date and includes an option to extend the lease for an additional five years. The lease has not yet commenced, and accordingly, as of June 30, 2026, no right-of-use asset or lease liability has been recognized and no lease expense has been recorded related to this lease. We expect the lease to commence in May 2027, subject to completion of the landlord's tenant improvements and delivery of the premises. Lease payments will begin one year after the commencement date. Lease payments from July 1, 2026 through the end of the lease term total $13.4 million.
We have a lease for office and laboratory space located in Redwood City, California, with a term that was scheduled to continue until June 2031. We and the lessor had the ability to terminate the lease with 15 months' notice, and in June 2026, we provided this notice to the lessor, changing the end of the term of the lease to September 2027. The lease provides for escalating annualized base rent payments starting at $0.8 million and increasing to $1.0 million in the final year of the lease. Remaining lease payments from July 1, 2026 through the end of the lease term total $1.2 million.
We have a lease for office space located in Burlington, Massachusetts, with a term that extends to May 2029, and with an option to extend the term for an additional five years. Remaining lease payments from July 1, 2026 through the end of the lease term total $1.0 million.
Purchase and Other Obligations
We enter into contracts in the normal course of business with CROs and other vendors to assist in the performance of our clinical trials, CMC, research and development and other services and products for operating purposes. These contracts typically do not contain minimum purchase commitments and generally provide for termination on notice. Payments due upon cancellation consist of payments for services provided or expenses incurred, including noncancelable obligations of our service providers, up to the date of cancellation, and may also include termination penalties. As of June 30, 2026, the timing, amount or likelihood of such payments are not known.
Grant and License Agreements
We are party to certain grant agreements with the Michael J. Fox Foundation and license and collaboration agreements with NeuroSolis, Stanford University, Vanderbilt University and other third parties. We may be obligated to make certain future payments under these agreements that are contingent upon future events such as our achievement of specified preclinical, clinical, regulatory and commercial milestones or royalties on net product sales under these agreements. As of June 30, 2026, we were unable to estimate the timing or likelihood of achieving these milestones or generating future product sales.
Critical Accounting Policies and Use of Estimates
This discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements included elsewhere in this Quarterly Report, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of our financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, costs and expenses and the disclosure of contingent assets and liabilities in our financial statements. We base our estimates on historical experience, known trends and events and various other factors that we believe are 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. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.
A summary of our critical accounting policies is presented in Note 2 to our audited consolidated financial statements as of and for the year ended December 31, 2025 included in our Annual Report on Form 10-K. There were no material changes to our critical accounting policies during the three months ended June 30, 2026.
Recent Accounting Pronouncements
For a description of recent accounting pronouncements, see Note 2 to our condensed consolidated financial statements appearing elsewhere in this Quarterly Report.
Emerging Growth Company and Smaller Reporting Company Status
The Jumpstart Our Business Startups Act, or JOBS Act, provides that, among other things, an "emerging growth company" can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. As an emerging growth company, we have elected to take advantage of the extended transition period to comply with new or revised accounting standards and to adopt certain of the reduced disclosure requirements available to emerging growth companies. As a result of the accounting standards election, we will not be subject to the same implementation timing for new or revised accounting standards as other public companies that are not emerging growth companies, which may make comparison of our financials to those of other public companies more difficult. We may choose to adopt early any new or revised accounting standards whenever such early adoption is permitted for private companies. We intend to rely on certain of the other exemptions and reduced reporting requirements provided by the JOBS Act. As an emerging growth company, we are not required to, among other things, (i) provide an auditor's attestation report on our system of internal controls over financial reporting pursuant to Section 404(b), and (ii) comply with any requirement that may be adopted by the Public Company Accounting Oversight Board, or PCAOB, regarding a supplement to the auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis).
We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year following the fifth anniversary our IPO, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act of 1934, as amended, or the Exchange Act, which would occur if the market value of our common stock held by non-affiliates exceeded $700 million as of the last business day of the second fiscal quarter of such year (and we have been a public company for at least 12 months, have filed one annual report on Form 10-K and are not to eligible to use the requirements for smaller reporting companies under the revenue test under Rule 12b-2) or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.
We are also a "smaller reporting company," as defined in Rule 12b-2 under the Exchange Act. We may continue to be a smaller reporting company if either (i) the market value of our stock held by non-affiliates is less than $250 million or (ii) our annual revenue is less than $100 million and the market value of our stock held by non-affiliates is less than $700 million.
If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company, we may choose to present only the two most recent fiscal years of audited financial statements in our annual report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.
Maplight Therapeutics Inc. published this content on August 13, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 13, 2026 at 21:02 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]