Material Agreement (Form 8-K)

Item 1.01 Entry into a Material Definitive Agreement.

On June 29, 2026 (the "Effective Date"), Avalyn Pharma Inc. (the "Company") entered into a First Amendment to the Sublease (the "Sublease Amendment"), which amends that certain Sublease Agreement (the "Sublease Agreement") with CRISPR Therapeutics, Inc. (the "Sublandlord"), dated as of August 29, 2025, providing for the lease of approximately 8,774 rentable square feet in the building located at 105 West First Street, Boston, Massachusetts (the "Premises").

Pursuant to the Sublease Amendment, the Sublandlord and the Company, as Subtenant, have agreed to an expansion of the Premises from approximately 8,774 rentable square feet to approximately 13,708 rentable square feet as of the Effective Date.

Additionally, under the terms of the Sublease Amendment, the Company's future minimum lease payments will increase by approximately $924,000 over the remaining lease term.

Except as modified by the Sublease Amendment, the terms of the Sublease Agreement remain in full force and effect.

The foregoing summary of the material terms of the Sublease Amendment does not purport to be a complete description and is qualified in its entirety by reference to the complete text of the Sublease Amendment, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.