# EDGAR Filing Document

**Accession Number:** 0001855175
**File Stem:** 0001437749-25-024852
**Filing Date:** 2025-8
**Character Count:** 151210
**Document Hash:** a405d58184a36f02ccbfeab51f2974b8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-25-024852.hdr.sgml**: 20250805

**ACCESSION NUMBER**: 0001437749-25-024852

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 68

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250805

**DATE AS OF CHANGE**: 20250805

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Contineum Therapeutics, Inc.
- **CENTRAL INDEX KEY:** 0001855175
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 271467257
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42001
- **FILM NUMBER:** 251185129

**BUSINESS ADDRESS:**
- **STREET 1:** 3565 GENERAL ATOMICS COURT, SUITE 200
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92121
- **BUSINESS PHONE:** (858) 333-5280

**MAIL ADDRESS:**
- **STREET 1:** 3565 GENERAL ATOMICS COURT, SUITE 200
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Pipeline Therapeutics, Inc.
- **DATE OF NAME CHANGE:** 20210405

?xml version='1.0' encoding='ASCII'? ctnm20250630_10q.htm

[<u>**Table of Contents**</u>](#toc)

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

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**FORM 10-Q**

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**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from _______ to _______**

**Commission File Number: 001-42001**

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## Contineum Therapeutics, Inc.
**(Exact name of registrant as specified in its charter)**

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---

| | |
|:---|:---|
| **Delaware** | **27-1467257** |
| **(State or other jurisdiction of**<br> **incorporation or organization)** | **(I.R.S. Employer**<br> **Identification No.)** |
| <br> **3565 General Atomics Court, Suite 200**<br> **San Diego, California** | **92121** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

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**(858) 333-5280**

**(Registrant**'**s telephone number, including area code)**

**N/A**

**(Former name, former address and former fiscal year, if changed since last report)**

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Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br> **Symbol(s)** | **Name of each exchange on which registered** |
| **Class A Common Stock, $0.001 par value per share** | **CTNM**<br>| **The Nasdaq Stock Market LLC**<br> **(Nasdaq Global Select Market)** |

---

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

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| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging growth company | ☒ |  |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 31, 2025, the registrant had 28,041,895 total shares outstanding, of which there were 21,625,223 shares of Class A common stock, $0.001 par value per share, outstanding and 6,416,672 shares of Class B common stock, $0.001 par value per share, outstanding.

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**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business, operations and financial performance and condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that are in some cases beyond our control and may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," or "would" or the negative of these terms or other similar expressions are intended to identify forward looking statements. Forward-looking statements contained in this report include, but are not limited to, statements about:

• the likelihood of our clinical trials demonstrating the safety and efficacy of our drug candidates;

• the timing and progress of our current clinical trials, the expected results of these clinical trials and the timing of initiation of our planned and future clinical trials;

• our plans relating to the clinical development of our current and future drug candidates, including the size, number and disease indications to be evaluated;

• Janssen Pharmaceutica NV, a Johnson & Johnson ("J&J") company's, plans related to the clinical development of PIPE-307;

• our clinical translational approach, and our ability to identify and develop drug candidates that can potentially treat neuroscience, inflammation and immunology ("NI&I") diseases by targeting biological pathways associated with specific clinical impairment to alter the course of disease;

• the size of the market opportunities for our drug candidates;

• the rate and degree of market acceptance and clinical utility of our drug candidates;

• our plans relating to commercializing our drug candidates, if approved;

• the success of competing therapies and technologies that are or may become available;

• the beneficial characteristics, safety, efficacy, therapeutic effects and potential advantages of our drug candidates;

• the timing or likelihood of regulatory filings and approval for our drug candidates;

• our ability to obtain and maintain regulatory approval of our drug candidates and our drug candidates to meet existing or future regulatory standards;

• our plans relating to the further development and manufacturing of our drug candidates, including additional indications for which we may pursue;

• our ability to successfully identify and complete transactions to in-license or otherwise acquire additional drug candidates, technologies, products or businesses;

• our ability to attract and to enter into commercial arrangements with third parties who have development, regulatory, manufacturing and commercialization expertise;

• our plans and ability to obtain or protect intellectual property rights, including extensions of existing patent terms where available, as well as our ability to secure and maintain intellectual property regulatory rights and regulatory protections;

• our ability to retain our senior management;

• the need to hire additional personnel and our ability to attract and retain such personnel;

• the accuracy of our estimates regarding our operating runway, expenses, capital requirements and needs for additional financing;

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[**Table of Contents**](#toc)

• the sufficiency of our existing capital resources to fund our future operating expenses and capital expenditure requirements;

• the period during which we expect we will qualify as an emerging growth company under the Jumpstart Our Business Startups Act of 2012, as amended (the "JOBS Act") or a smaller reporting company;

• our anticipated use of our existing cash, cash equivalents and short-term investments; and

• other risks and uncertainties, including those described under Part II, Item 1A, "Risk Factors" of this Quarterly Report on Form 10-Q.

Any forward-looking statements in this Quarterly Report on Form 10-Q reflect our current views with respect to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under Part II, Item 1A, "Risk Factors" of this Quarterly Report on Form 10-Q. Given these uncertainties, you should not place undue reliance on these forward-looking statements or rely on forward-looking statements as predictions of future events. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Unless the context otherwise indicates, references in this Quarterly Report on Form 10-Q to the terms, "Contineum," the "Company," "we," "our," and "us" refer to Contineum Therapeutics, Inc. and references to our "common stock" refer to our voting Class A common stock.

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[**Table of Contents**](#toc)

**CONTINEUM THERAPEUTICS, INC.** 

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| **PART I.** | [<u>FINANCIAL INFORMATION</u>](#parti) |  |
| Item 1. | [<u>Condensed Financial Statements (Unaudited)</u>](#item1) | [1](#item1) |
|  | [<u>Condensed Balance Sheets</u>](#bs) | [1](#bs) |
|  | [<u>Condensed Statements of Operations and Comprehensive Loss</u>](#income) | [2](#income) |
|  | [<u>Condensed Statements of Convertible Preferred Stock and Stockholders</u><u>'</u> <u>Equity (</u><u>Deficit</u>](#equity)) | [3](#equity) |
|  | [<u>Condensed Statements of Cash Flows</u>](#cfs) | [4](#cfs) |
|  | [<u>Notes to Unaudited Condensed Financial Statements</u>](#notes) | [5](#notes) |
| Item 2. | [<u>Management</u><u>'</u><u>s Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | [13](#mda) |
| Item 3. | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#qqdrm) | [20](#qqdrm) |
| Item 4. | [<u>Controls and Procedures</u>](#cps) | [20](#cps) |
| **PART II.** | [<u>OTHER INFORMATION</u>](#partii) |  |
| Item 1. | [<u>Legal Proceedings</u>](#legal) | [21](#legal) |
| Item 1A. | [<u>Risk Factors</u>](#risks) | [21](#risks) |
| Item 2. | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#uses) | [22](#uses) |
| Item 3. | [<u>Defaults Upon Senior Securities</u>](#duss) | [22](#duss) |
| Item 4. | [<u>Mine Safety Disclosures</u>](#msd) | [22](#msd) |
| Item 5. | [<u>Other Information</u>](#oi) | [22](#oi) |
| Item 6. | [<u>Exhibits</u>](#ex) | [23](#ex) |
| [<u>Signatures</u>](#sigs) | [<u>Signatures</u>](#sigs) | [25](#sigs) |

---

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**PART I — FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**CONTINEUM THERAPEUTICS, INC.** 

**CONDENSED BALANCE SHEETS** 

**(unaudited)**

**(in thousands, except share and par value data)** 

---

| | | |
|:---|:---|:---|
|  | ***June 30, 2025*** | ***December 31, 2024*** |
| **Assets** |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $20784 | $21943 |
| Marketable securities | 154700 | 182817 |
| Prepaid expenses and other current assets | 1355 | 1628 |
| Total current assets | 176839 | 206388 |
| Property and equipment, net | 856 | 989 |
| Other long-term assets | 186 | 3 |
| Operating lease right-of-use assets | 5007 | 5467 |
| Total assets | $182888 | $212847 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| Accounts payable | $2001 | $1811 |
| Accrued expenses | 3747 | 6711 |
| Current portion of operating lease liabilities | 1466 | 1452 |
| Total current liabilities | 7214 | 9974 |
| Operating lease liabilities, net of current portion | 4284 | 4807 |
| Total liabilities | 11498 | 14781 |
| Commitments and contingencies (Note 8) |  |  |
| Stockholders' equity: |  |  |
| Class A common stock, $0.001 par value; authorized shares—200,000,000 at June 30, 2025 and December 31, 2024; issued and outstanding shares—19,190,723 and 19,125,377 at June 30, 2025 and December 31, 2024, respectively. | 19 | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B common stock, $0.001 par value; authorized shares—20,000,000 at June 30, 2025 and December 31, 2024; issued and outstanding shares—6,729,172 at June 30, 2025 and December 31, 2024. | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock, $0.001 par value; authorized shares—10,000,000 at June 30, 2025 and December 31, 2024; no shares issued or outstanding at June 30, 2025 and December 31, 2024. |  |  |
| Additional paid-in-capital | 320649 | 315371 |
| Accumulated deficit | (149432) | (117402) |
| Accumulated other comprehensive income | 147 | 71 |
| Total stockholders' equity | 171390 | 198066 |
| Total liabilities and stockholders' equity | $182888 | $212847 |

---

*The accompanying notes are an integral part of these unaudited condensed financial statements.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1

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**CONTINEUM THERAPEUTICS, INC.** 

**CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(unaudited)**

**(in thousands, except share and per share data)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | ***June 30,*** | ***June 30,*** | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Operating expenses: |  |  |  |  |
| Research and development | $14063 | $7901 | $27775 | $15679 |
| General and administrative | 3839 | 3043 | 8237 | 5195 |
| Total operating expenses | 17902 | 10944 | 36012 | 20874 |
| Loss from operations | (17902) | (10944) | (36012) | (20874) |
| Other income (expense): |  |  |  |  |
| Interest income | 2029 | 2001 | 4279 | 3637 |
| Change in fair value of warrant liability |  | 11 |  | (107) |
| Other expense, net | (167) | (77) | (297) | (82) |
| Total other income, net | 1862 | 1935 | 3982 | 3448 |
| Net loss | $(16040) | $(9009) | $(32030) | $(17426) |
| Other comprehensive income (loss): |  |  |  |  |
| Unrealized gain (loss) on marketable securities | (23) | (69) | 76 | (235) |
| Comprehensive loss | $(16063) | $(9078) | $(31954) | $(17661) |
| Net loss per share, basic and diluted (a) | $(0.62) | $(0.39) | $(1.24) | $(1.35) |
| Weighted-average shares of common stock outstanding, basic and diluted | 25895996 | 23355588 | 25882540 | 12862328 |

---

_____________

(a) Basic and diluted per share amounts are the same for Class A and Class B shares.

*The accompanying notes are an integral part of these unaudited condensed financial statements.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

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**CONTINEUM THERAPEUTICS, INC.** 

**CONDENSED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS**' **EQUITY (DEFICIT)**

**(unaudited)**

**(in thousands, except share data)** 

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | ***Class A and Class B*** | ***Class A and Class B*** | ***Additional*** | ***Accumulated Other*** |  | ***Total***  |
|  | ***Common Stock*** | ***Common Stock*** | ***Paid-in*** | ***Comprehensive*** | ***Accumulated*** | ***Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Capital*** | ***Income*** | ***Deficit*** | ***Equity*** |
| **Balance at December 31, 2024** | 25854549 | $26 | $315371 | $71 | $(117402) | $198066 |
| Exercise of stock options | 17000 |  | 24 |  |  | 24 |
| Stock-based compensation | *—* |  | 2569 |  |  | 2569 |
| Net loss | *—* |  |  |  | (15990) | (15990) |
| Unrealized gain on marketable securities | *—* |  |  | 99 |  | 99 |
| **Balance at March 31, 2025** | 25871549 | $26 | $317964 | $170 | $(133392) | $184768 |
| Shares purchased through employee stock purchase plan | 48346 |  | 267 |  |  | 267 |
| Stock-based compensation | *—* |  | 2418 |  |  | 2418 |
| Net loss | *—* |  |  |  | (16040) | (16040) |
| Unrealized loss on marketable securities | *—* |  |  | (23) |  | (23) |
| **Balance at June 30, 2025** | 25919895 | $26 | $320649 | $147 | $(149432) | $171390 |

---

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | ***Convertible*** | ***Convertible*** | ***Class A and Class B*** | ***Class A and Class B*** | ***Additional*** | ***Accumulated Other*** |  | ***Total*** |
|  | ***Preferred Stock*** | ***Preferred Stock*** | ***Common Stock*** | ***Common Stock*** | ***Paid-in*** | ***Comprehensive*** | ***Accumulated*** | ***Stockholders'*** |
|  | ***Shares*** | ***Amount*** | ***Shares*** | ***Amount*** | ***Capital*** | ***Income (Loss)*** | ***Deficit*** | ***Equity (Deficit)*** |
| **Balance at December 31, 2023** | 15906236 | $192620 | 2349554 | $2 | $7098 | $108 | $(75144) | $(67936) |
| Exercise of stock options |  |  | 34872 |  | 122 |  |  | 122 |
| Stock-based compensation | *—* |  | *—* |  | 768 |  |  | 768 |
| Net loss | *—* |  | *—* |  |  |  | (8417) | (8417) |
| Unrealized loss on marketable securities | *—* |  | *—* |  |  | (166) |  | (166) |
| **Balance at March 31, 2024** | 15906236 | $192620 | 2384426 | $2 | $7988 | $(58) | $(83561) | $(75629) |
| Issuance of common stock in connection with initial public offering, net of issuance costs of $10,912 |  |  | 7423682 | 7 | 107860 |  |  | 107867 |
| Conversion of convertible preferred stock to common stock upon initial public offering | (15906236) | (192620) | 15906236 | 17 | 192603 |  |  | 192620 |
| Reclassification of warrant from liability to equity | *—* |  | *—* |  | 216 |  |  | 216 |
| Exercise of stock options |  |  | 8932 |  | 13 |  |  | 13 |
| Stock-based compensation | *—* |  | *—* |  | 1494 |  |  | 1494 |
| Net loss | *—* |  | *—* |  |  |  | (9009) | (9009) |
| Unrealized loss on marketable securities | *—* |  | *—* |  |  | (69) |  | (69) |
| **Balance at June 30, 2024** |  | $— | 25723276 | $26 | $310174 | $(127) | $(92570) | $217503 |

---

*The accompanying notes are an integral part of these unaudited condensed financial statements.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

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**CONTINEUM THERAPEUTICS, INC.** 

**CONDENSED STATEMENTS OF CASH FLOWS** 

**(unaudited)**

**(in thousands)** 

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| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Operating activities** |  |  |
| Net loss | $(32030) | $(17426) |
| Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| Depreciation and amortization | 157 | 121 |
| Non-cash operating lease expense | 460 | 488 |
| Stock-based compensation | 4987 | 2262 |
| Accretion of premiums/discounts on marketable securities, net | (692) | (2092) |
| Change in fair value of warrant liability |  | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal of property and equipment | 67 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain on marketable securities | (6) |  |
| Changes in operating assets and liabilities |  |  |
| Prepaid expenses and other current assets | 273 | 846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other long-term assets | (6) | 936 |
| Accounts payable | 190 | 100 |
| Accrued expenses | (2964) | (1841) |
| Operating lease liabilities | (509) | 25 |
| Net cash used in operating activities | (30073) | (16474) |
| **Investing activities** |  |  |
| Purchase of property and equipment | (91) | (266) |
| Purchases of marketable securities | (59128) | (99649) |
| Sales and maturities of marketable securities | 88018 | 69747 |
| Net cash provided by (used in) investing activities | 28799 | (30168) |
| **Financing activities** |  |  |
| Payments of deferred offering costs | (176) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other offering costs |  | 108211 |
| Proceeds from exercise of stock options | 24 | 135 |
| Proceeds from employee stock purchase plan | 267 |  |
| Net cash provided by financing activities | 115 | 108346 |
| Net increase (decrease) in cash and cash equivalents | (1159) | 61704 |
| Cash and cash equivalents at beginning of period | 21943 | 15526 |
| Cash and cash equivalents at end of period | $20784 | $77230 |
| **Supplemental disclosure of noncash investing and financing activities** |  |  |
| Conversion of convertible preferred stock to common stock upon initial public offering | $— | $192620 |
| Reclassification of warrant from liability to equity | $— | $216 |
| Reclassification of deferred offering costs paid in prior year to equity | $— | $343 |

---

*The accompanying notes are an integral part of these unaudited condensed financial statements.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

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**CONTINEUM THERAPEUTICS, INC.**

**NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS** 

***1.* Organization and Basis of Presentation** 

***Organization and Nature of Operations***

Contineum Therapeutics, Inc. (the "Company"), is a clinical-stage biopharmaceutical company pioneering differentiated therapies for the treatment of neuroscience, inflammation and immunology ("NI&I") indications with significant unmet need. The Company was incorporated in the state of Delaware in *2009,* and in *November 2023* changed its name from Pipeline Therapeutics, Inc. to Contineum Therapeutics, Inc.

***Reverse Stock Split***

 ****

On *April 1, 2024,* the Company filed an amendment to its *fourth* amended and restated certificate of incorporation as amended and effected a *1*-for-5.5972 reverse stock split of its capital stock. All share and per-share amounts presented in the financial statements and related notes have been retroactively adjusted to reflect the reverse stock split as of the beginning of the *first* period presented.

***Initial Public Offering***

On *April 9, 2024,* the Company closed its initial public offering (the "IPO"), pursuant to which it issued and sold an aggregate of 6,875,000 shares of its common stock at a public offering price of $16.00 per share and on *April 19, 2024,* the Company issued and sold 548,682 additional shares of its common stock to the underwriters of the IPO pursuant to the partial exercise of their option to purchase additional shares, resulting in net proceeds of approximately $107.9 million, after deducting underwriting discounts, commissions and other offering expenses. Upon the closing of the IPO, the Company's outstanding convertible preferred stock automatically converted into Class A common stock or Class B common stock, as applicable. Converted redeemable convertible preferred stock outstanding as of the date of the IPO consisted of 15,906,236 shares that were outstanding immediately prior to the closing of the IPO. Following the closing of the IPO, *no* shares of redeemable convertible preferred stock were authorized or outstanding.

In connection with the closing of the IPO, on *April 9, 2024,* the Company's certificate of incorporation was amended and restated to (i) authorize 220,000,000 shares of common stock of which 200,000,000 are designated as Class A common stock and 20,000,000 of which are designated as Class B common stock; (ii) eliminate all references to the previously existing series of preferred stock; and (iii) authorize 10,000,000 shares of undesignated preferred stock that *may* be issued from time to time by the Company's board of directors in *one* or more series.

***Liquidity and Capital Resources***

Since its inception, the Company has devoted substantially all its resources to research and development activities, business planning, establishing and maintaining its intellectual property portfolio, hiring personnel, raising capital to support and expand such activities and providing general and administrative support for these operations. The Company incurred a net loss of $16.0 million and $32.0 million for the *three* and *six* months ended *June 30, 2025*, respectively. The Company had an accumulated deficit of $149.4 million as of *June 30, 2025*. From its inception through *June 30, 2025*, the Company has financed its operations primarily through issuance of convertible promissory notes, convertible preferred stock financings, a term loan, a global license and development agreement (the "J&J License Agreement") the Company entered in *February 2023* with Janssen Pharmaceutica NV, a Johnson & Johnson company, and net proceeds of approximately $107.9 million received in *April 2024* from the IPO.

As of *June 30, 2025*, the Company had cash, cash equivalents and marketable securities of $175.5 million. Management believes the Company's existing cash, cash equivalents and marketable securities will be sufficient to support its operations for at least *12* months from the issuance date of these unaudited condensed financial statements.

As the Company continues to pursue its business plan, it expects to finance its operations through both public and private sales of equity, debt financings or other commercial arrangements, which could include income from collaborations, strategic partnerships or marketing, distribution, licensing or other strategic arrangements with *third* parties. However, there can be *no* assurance that any additional financing or strategic transactions will be available to the Company on acceptable terms, if at all. If events or circumstances occur such that the Company does *not* obtain additional funding, it *may* need to delay, reduce or eliminate its product development or future commercialization efforts, which could have a material adverse effect on the Company's business, results of operations, financial condition and cash flows. Further, if the Company raises funds through licensing or other similar arrangements with *third* parties, it *may* be required to relinquish valuable rights to its technology, future revenue streams, research programs or drug candidates or *may* be required to grant licenses on terms that *may not* be favorable to it and/or *may* reduce the value of its common stock.

***Unaudited Interim Condensed Financial Statements***

The condensed balance sheet as of *June 30, 2025*, condensed statements of operations and comprehensive loss and condensed statements of convertible preferred stock and stockholders' equity (deficit) for the *three* and *six* months ended *June 30, 2025* and *2024,* and condensed statements of cash flows for the *six* months ended *June 30, 2025* and *2024,* and related notes to condensed financial statements are unaudited. These unaudited interim condensed financial statements have been prepared on the same basis as the Company's annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for the fair statement of the Company's financial position, results of operations and cash flows for the periods presented. The condensed results of operations for the *three* and *six* months ended *June 30, 2025* are *not* necessarily indicative of the results to be expected for the full year or for any other future annual or interim period. The condensed balance sheet as of *December 31, 2024* included herein was derived from the audited financial statements as of that date. These interim unaudited condensed financial statements should be read in conjunction with the Company's audited financial statements for the year ended *December 31, 2024* included in the Company's Annual Report on Form *10*-K, filed with the Securities and Exchange Commission ("SEC") on *March 6, 2025.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *5*

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***2.* Summary of Significant Accounting Policies** 

During the *six* months ended *June 30, 2025*, there were *no* significant changes to the Company's significant accounting policies as described in the Company's Annual Report on Form *10*-K for the year ended *December 31, 2024,* filed with the SEC on *March 6, 2025.*

***Basis of Presentation***

The Company has prepared the accompanying condensed financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. The financial statements are presented in U.S. dollars. Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") promulgated by the Financial Accounting Standards Board ("FASB").

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company's financial statements and accompanying notes. Accounting estimates and management judgments reflected in the financial statements include: the accrual of research and development expenses; the incremental borrowing rate used to recognize the right-of-use assets and lease liabilities, the fair value of common stock and convertible preferred stock; and stock-based compensation. Although these estimates are based on the Company's knowledge of current events and actions it *may* undertake in the future, actual results *may* materially differ from these estimates and assumptions.

***Recently Adopted Accounting Pronouncements***

In *November 2023,* the FASB issued ASU *No. 2023*-*07, Segment Reporting (Topic *280*): Improvements to Reportable Segment Disclosures* ("ASU *2023*-*07"*). This standard requires a public entity to disclose significant segment expenses and other segment items on an interim and annual basis. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker. ASU *2023*-*07* is effective for fiscal years beginning after *December 15, 2023,* and interim periods within fiscal years beginning after *December 15, 2024,* with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. The Company adopted ASU *2023*-*07* for the fiscal year ended *December 31, 2024* and interim financial statements thereafter, on a retrospective basis for all prior periods presented in the financial statements. The adoption of ASU *2023*-*07* did *not* change the way that the Company identifies its reportable segments and, as a result, did *not* have a material impact on the Company's financial position or results of operations. See Note *10* - Segment Reporting for further information.

***Recently Issued Accounting Pronouncements *Not* Yet Adopted***

In *December 2023,* the FASB issued ASU *No. 2023*-*09, Income Taxes (Topic *740*): Improvements to Income Tax Disclosures* ("ASU *2023*-*09"*). This standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. ASU *2023*-*09* is effective for public entities with annual periods beginning after *December 15, 2024,* with early adoption permitted. The Company is currently evaluating the impact of this guidance on its financial statements.

In *November 2024,* the FASB issued ASU *No. 2024*-*03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic *220*-*40*): Disaggregation of Income Statement Expenses* ("ASU *2024*-*03"*). This standard requires a public entity to disaggregate certain income statement expenses. ASU *2024*-*03* is effective for annual reporting periods beginning after *December 15, 2026,* and interim reporting periods within annual reporting periods beginning after *December 15, 2027,* with early adoption permitted. The Company is currently evaluating the impact of this guidance on its financial statements.

***3.* Marketable Securities** 

The Company invests its excess cash in marketable securities, including debt securities, commercial paper, asset-backed securities, yankee debt, certificate of deposit, and U.S. Government agency securities.

The following table summarizes the amortized cost and fair value of the Company's marketable securities by major investment category (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** | ***June 30, 2025*** |
|  |  |  | ***Unrealized*** | ***Unrealized*** |  |
|  | ***Maturity in Years*** | ***Amortized Cost*** | ***Gains*** | ***Losses*** | ***Fair Value*** |
| U.S. Government agency securities | *3 years or less* | $55740 | $91 | $(27) | $55804 |
| Certificate of deposit | *Less than 1* | 6199 | 2 | (1) | 6200 |
| Corporate debt securities | *2 years or less* | 67326 | 57 | (13) | 67370 |
| Commercial paper | *Less than 1* | 10609 | 4 | (1) | 10612 |
| Yankee debt | *Less than 1* | 2336 | 1 | (1) | 2336 |
| Asset-backed securities | *3 years or less* | 12343 | 35 |  | 12378 |
| Total |  | $154553 | $190 | $(43) | $154700 |

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** | ***December 31, 2024*** |
|  |  |  | ***Unrealized*** | ***Unrealized*** |  |
|  | ***Maturity in Years*** | ***Amortized Cost*** | ***Gains*** | ***Losses*** | ***Fair Value*** |
| U.S. Government agency securities | *3 years or less* | $57232 | $57 | $(134) | $57155 |
| Certificate of deposit | *Less than 1* | 8519 | 6 | (1) | 8524 |
| Corporate debt securities | *2 years or less* | 80751 | 110 | (39) | 80822 |
| Commercial paper | *Less than 1* | 22265 | 11 | (1) | 22275 |
| Yankee debt | *Less than 1* | 2145 | 1 |  | 2146 |
| Asset-backed securities | *2 years or less* | 11834 | 61 |  | 11895 |
| Total |  | $182746 | $246 | $(175) | $182817 |

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The Company regularly reviews the securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, current and expected future economic conditions. The Company has *no* requirement or intention to sell these securities before maturity or recovery of their amortized cost basis. As of *June 30, 2025* and *December 31, 2024,* the Company did *not* record an allowance for credit loss related to its investment portfolio. As of *June 30, 2025*, 62 out of 237 of our available-for-sale debt securities were in an aggregate gross unrealized loss position. As of *December 31, 2024,* 86 out of 252 of our available-for-sale debt securities were in an aggregate gross unrealized loss position. As of *June 30, 2025* and *December 31, 2024,* all of our available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has *not* been recorded had continuous unrealized loss positions of less than *12* months.

The following tables summarize our available-for-sale debt securities in an unrealized loss position for which an allowance for credit losses has *not* been recorded, aggregated by major security type (in thousands):

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** |
|  | **Fair Value** | **Unrealized Losses** |
| U.S. Government agency securities | $18818 | $(27) |
| Certificate of deposit | 3806 | (1) |
| Corporate debt securities | 25129 | (13) |
| Commercial paper | 4590 | (1) |
| Yankee debt | 1516 | (1) |
| Total | $53859 | $(43) |

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| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** |
|  | **Fair Value** | **Unrealized Losses** |
| U.S. Government agency securities | $30155 | $(134) |
| Certificate of deposit | 3722 | (1) |
| Corporate debt securities | 22528 | (39) |
| Commercial paper | 4556 | (1) |
| Total | $60961 | $(175) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *6*

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***4.* Fair Value Measurements** 

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a *three*-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

**Level *1***—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

**Level *2***—Quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are *not* active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability.

**Level *3***—Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or *no* market activity).

Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***Fair Value Measurements Using*** | ***Fair Value Measurements Using*** | ***Fair Value Measurements Using*** |
|  |  | ***Quoted Prices in*** | ***Significant Other*** | ***Significant*** |
|  |  | ***Active Markets*** | ***Observable*** | ***Unobservable*** |
|  |  | ***for Identical*** | ***Inputs*** | ***Inputs*** |
|  | ***Total*** | ***Assets (Level 1)*** | ***(Level 2)*** | ***(Level 3)*** |
| **As of June 30, 2025:** |  |  |  |  |
| Assets: |  |  |  |  |
| Cash equivalents | $19848 | $19848 | $— | $— |
| U.S. Government agency securities | 55804 | 55804 |  |  |
| Certificates of deposits | 6200 |  | 6200 |  |
| Corporate debt securities | 67370 |  | 67370 |  |
| Commercial paper | 10612 |  | 10612 |  |
| Yankee debt | 2336 |  | 2336 |  |
| Asset-backed securities | 12378 |  | 12378 |  |
| Total financial assets | $174548 | $75652 | $98896 | $— |
| **As of December 31, 2024:** |  |  |  |  |
| Cash equivalents | $21042 | $21042 | $— | $— |
| U.S. Government agency securities | 57155 | 57155 |  |  |
| Certificates of deposits | 8524 |  | 8524 |  |
| Corporate debt securities | 80822 |  | 80822 |  |
| Commercial paper | 22275 |  | 22275 |  |
| Yankee debt | 2146 |  | 2146 |  |
| Asset-backed securities | 11895 |  | 11895 |  |
| Total financial assets | $203859 | $78197 | $125662 | $— |

---

The carrying amounts of the Company's financial instruments, including cash, cash equivalents and marketable securities, prepaid and other current assets, accounts payable, and accrued liabilities, approximate fair value due to their short maturities. Included in cash and cash equivalents at *June 30, 2025* and *December 31, 2024* are money market funds with a carrying value and fair value of $2.2 million and $3.9 million, respectively, based upon a Level *1* fair value assessment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *7*

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***5.* Accrued Expenses** 

Accrued expenses consisted of the following (in thousands):

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| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Accrued compensation expenses | $1770 | $3338 |
| Accrued research and development expenses | 1686 | 3151 |
| Accrued professional and consulting expenses | 182 | 98 |
| Other accrued expenses | 109 | 124 |
| Total accrued expenses | $3747 | $6711 |

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***6.* Stockholders**' **Equity (Deficit)**

***Sales Agreement***

In *May 2025,* the Company entered into a Sales Agreement (the "Agreement") with Leerink Partners LLC ("Leerink Partners") relating to the offer and sale of up to $75.0 million in shares of its Class A common stock, par value $0.001 per share (the "Shares"). The Company is *not* obligated to make any sales of Shares under the Agreement. Any sales under the Agreement will be made pursuant to an "at-the-market offering" (the "ATM Program") in accordance with Rule *415*(a)(*4*) under the Securities Act of *1933,* as amended. The Company has not sold any shares of its Class A common stock under the Agreement during the *three* months ended *June 30, 2025.*

***Common Stock***

The Company has *two* classes of common stock: Class A common stock and Class B common stock. Class A common stock has one vote per share and Class B common stock has no votes per share. As of *June 30, 2025*, of the authorized 200,000,000 shares of Class A common stock, 19,190,723 shares of Class A common stock were issued and outstanding, and of the authorized 20,000,000 shares of Class B common stock, 6,729,172 shares of Class B common stock were issued and outstanding.

Class A common stock reserved for future issuance consisted of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *8*

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| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***December 31,*** |
|  | ***2025*** | ***2024*** |
| Common stock options granted and outstanding | 5580612 | 4045500 |
| Shares available for issuance under the 2024 Equity Incentive Plan | 1700924 | 1674309 |
| Common stock warrant | 15764 | 15764 |
| Common stock reserved under the 2024 Employee Stock Purchase Plan | 472203 | 262004 |
| Total common stock reserved for future issuance | 7769503 | 5997577 |

---

There are no shares of Class B common stock reserved for future issuance as of *June 30, 2025* and *December 31, 2024.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *9*

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***Stock Options***

In *March 2024,* the Company's board of directors and its stockholders adopted and approved the *2024* Equity Incentive Plan (the *"2024* Plan"). The *2024* Plan is the successor of the Company's *2012* Equity Incentive Plan (the *"2012* Plan"). However, awards outstanding under the *2012* Plan will continue to be governed by their existing terms. The *2024* Plan allowed for the issuance of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted shares, restricted stock units, and other stock awards to the Company's employees, members of its board of directors, and consultants.

The number of shares initially reserved for issuance under the *2024* Plan was 2,700,000. As of *June 30, 2025*, there were 1,700,924 shares of the Company's Class A common stock available for issuance under the *2024* Plan. The aggregate number of shares reserved for issuance under the *2024* Plan will automatically increase on the *first* day of each fiscal year of the Company, commencing in *2025* and ending in (and including) *2034,* by a number equal to the lesser of (a) 5% of the aggregate shares of Class A common stock and Class B common stock issued and outstanding as of the last day of the prior fiscal year, or (b) a number of shares of Class A common stock determined by the Company's board of directors.

Under the *2024* Plan, the exercise price for options granted under the *2024* Plan *may not* be less than 100% of the fair market value of the Class A common stock on the grant date. Optionees will be permitted to pay the exercise price in cash or, with the consent of the compensation committee (i) with shares of common stock that the optionee already owns, (ii) by an immediate sale of shares through a broker approved by the Company, (iii) by instructing the Company to withhold a number of shares otherwise deliverable upon exercise having an aggregate fair market value that does *not* exceed the exercise price, or (iv) by other methods permitted by applicable law.

The Company's board of directors (or a committee thereof to which the Company's board of directors has delegated authority) *may* amend or terminate the *2024* Plan at any time. If the Company's board of directors amends the *2024* Plan, it does *not* need stockholder approval of the amendment unless required by applicable law, regulation or rules. The *2024* Plan will terminate automatically ten years after the date when the Company's board of directors adopted the *2024* Plan.

In *April 2025,* the Company granted inducement awards outside of the *2024* Plan to the Company's Chief Medical Officer and Head of Development in the form of an option to purchase 286,000 shares of the Company's Class A common stock with an exercise price per share equal to $4.50. The option awards were granted as an inducement material to his commencement of employment with the Company in accordance with Nasdaq Listing Rule *5635*(c)(*4*). These inducement awards are included in stock-based compensation and the following tables.

Stock option activity is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | ***Options Outstanding*** | ***Weighted- Average Exercise Price*** | ***Weighted- Average Remaining Contractual Term*** | ***Aggregate Intrinsic Value (in thousands)*** |
| Balance at December 31, 2024 | 4045500 | $9.91 | 7.52 | $21470 |
| Options granted | 1559542 | 8.12 | *—* | *—* |
| Options exercised | (17000) | 1.41 | *—* | *—* |
| Options cancelled and forfeited | (2474) | 12.42 | *—* | *—* |
| Options expired | (4956) | 9.67 | *—* | *—* |
| Balance at June 30, 2025 | 5580612 | $9.43 | 7.78 | $2908 |
| Options vested and expected to vest as of June 30, 2025 | 5554612 | $9.46 | 7.77 | $2908 |
| Options exercisable as of June 30, 2025 | 2622801 | $7.30 | 6.13 | $2908 |

---

The aggregate intrinsic value of options exercised during the *six* months ended *June 30, 2025* and *2024* was $0.2 million and $0.4 million, respectively, determined as of the date of exercise.

Options exercisable include options which are *not* vested but are available to be early exercised. As of *June 30, 2025*, there were no options available to be early exercised. As of *December 31, 2024,* of the 2,114,772 options exercisable, 35,794 options were available to be early exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *10*

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The Company estimated the fair value of stock options using the Black-Scholes valuation model. The Company accounts for any forfeitures of options when they occur. Previously recognized compensation expense for an award is reversed in the period that the award is forfeited. The fair value of stock options expected to vest was estimated using the following weighted-average assumptions:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | ***June 30,*** | ***June 30,*** | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| Assumptions: |  |  |  |  |
| Expected term (in years) | 5.69 | 6.05 | 5.96 | 6.03 |
| Expected volatility | 95% | 110% | 94% | 110% |
| Risk free interest rate | 3.91% | 4.49% | 4.26% | 4.44% |
| Dividend yield |  |  |  |  |

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The weighted-average grant-date fair value per share of stock options granted and expected to vest as of their grant date during the *three* months ended *June 30, 2025* and *2024* was $3.33 and $13.53 per share, respectively. The weighted-average grant-date fair value per share of stock options granted and expected to vest as of their grant date during the *six* months ended *June 30, 2025* and *2024* was $6.37 and $13.55 per share, respectively.

The Company recorded $1.3 million and $1.1 million in stock-based compensation in general and administrative and research and development, respectively, for the *three* months ended *June 30, 2025*. The Company recorded $0.9 million and $0.6 million in stock-based compensation in general and administrative and research and development, respectively, for the *three* months ended *June 30, 2024*.

The Company recorded $2.8 million and $2.2 million in stock-based compensation in general and administrative and research and development, respectively, for the *six* months ended *June 30, 2025*. The Company recorded $1.3 million and $1.0 million in stock-based compensation in general and administrative and research and development, respectively, for the *six* months ended *June 30, 2024*.

As of *June 30, 2025*, there was approximately $25.4 million of total unrecognized stock-based compensation related to stock-based compensation arrangements, which is expected to be recognized over a weighted-average period of approximately 2.9 years.

***Employee Stock Purchase Plan***

In *March 2024,* the Company's board of directors and its stockholders adopted and approved the *2024* Employee Stock Purchase Plan (the *"2024* ESPP"). The *2024* ESPP became effective as of *April 9, 2024.* The purpose of the *2024* ESPP is to provide eligible employees with an opportunity to increase their interest in the success of the Company by purchasing shares of Class A common stock from the Company on favorable terms and to pay for such purchases through payroll deductions or other approved contributions. The new payroll deduction rate *may* be any whole percentage of the participant's compensation, but *not* less than 1% nor more than 15%.

The number of shares initially reserved for issuance under the *2024* ESPP was 280,000. As of *June 30, 2025*, there were 472,203 shares of the Company's common stock reserved and available for issuance under the *2024* ESPP. The number of shares reserved for issuance under the *2024* ESPP will automatically increase on the *first* day of each fiscal year of the Company, commencing in *2025* and ending in (and including) *2044,* by a number equal to the lesser of (i) 280,000 shares, (ii) 1% of the aggregate shares of Class A common stock and Class B common stock issued and outstanding on the last day of the prior fiscal year, or (iii) a number of shares determined by the Company's board of directors. The number of shares reserved under the *2024* ESPP will automatically be adjusted in the event of a stock split, stock dividend or a reverse stock split (including an adjustment to the per-purchase period share limit).

During the *six* months ended *June 30, 2025*, there were 48,346 shares purchased under the *2024* ESPP and the recorded expense was $0.1 million. During the *six* months ended *June 30, 2024*, there were no shares purchased under the *2024* ESPP and the recorded expense was *not* material.

***7.* License Agreement** 

In *February 2023,* the Company entered into the J&J License Agreement, pursuant to which the Company granted J&J an exclusive, worldwide license to develop, manufacture and commercialize PIPE-*307* in all indications. The J&J License Agreement allows the Company to elect, at its sole discretion and cost, to conduct a Phase *2* trial of PIPE-*307* for patients with multiple sclerosis. After such trial, J&J *may,* at its sole discretion, further develop PIPE-*307* for patients with multiple sclerosis. Additionally, upon J&J deciding to conduct a *first* Phase *3* clinical trial for a product using PIPE-*307,* the J&J License Agreement allows the Company the option to co-fund a portion of all Phase *3* and subsequent development costs for PIPE-*307,* with such costs capped annually. If the Company opts to fund such development costs, then the royalties the Company is eligible to receive will increase. Pursuant to the terms of the J&J License Agreement, the Company received an upfront, non-refundable and non-creditable payment of $50.0 million upon transferring the license and know-how, existing inventory and manufacturing technology. The Company is also eligible to receive approximately $1.0 billion in non-refundable, non-creditable milestone payments. Additionally, the Company is eligible to receive tiered royalties in the low-double digit to high-teen percent range on net sales of products containing PIPE-*307.*

The Company sold approximately 1.7 million shares of series C convertible preferred stock to Johnson & Johnson Innovation - JJDC, Inc., an affiliate of J&J, at $15.00 per share, for an aggregate purchase price of approximately $25.0 million, in *April 2023.* The Company determined that this preferred stock purchase was at fair value as other new investors purchased shares of preferred stock at the same price.

The Company concluded that J&J represented a customer and applied relevant guidance from ASC *606* to evaluate the appropriate accounting for the J&J License Agreement. The Company evaluated the J&J License Agreement and concluded that it had promises to transfer a license of functional intellectual property, know-how, existing inventory and manufacturing technology (each of which was determined to be a distinct performance obligation). Control of the promised goods was transferred to J&J in the *second* quarter of *2023,* and the $50.0 million upfront payment was recognized in *May 2023* upon satisfaction of the performance obligations. The remaining consideration consists of future contingent milestone-based payments and sales-based royalties. As of *June 30, 2025*, all variable consideration under the J&J License Agreement was fully constrained.

In *August 2023,* the Company elected to conduct a Phase *2* trial using PIPE-*307* for patients with multiple sclerosis, which was considered a contract modification under the accounting guidance that added promised goods or services that are distinct at a price that is below the standalone selling price. Therefore, the Company accounted for the modification as a termination of the existing contract and creation of a new contract. Accordingly, the amount of consideration to be allocated to the remaining performance obligations consists of future contingent milestone-based payments and sales-based royalties, all of which were constrained. The only remaining performance obligation is the promise to conduct the Phase *2* trial, as the other performance obligations had been satisfied prior to the modification date. Accordingly, the variable consideration allocated to the Phase *2* trial will be recognized as the study is completed using a cost-based measure of progress and when the amounts are *no* longer probable of a significant reversal. As of *June 30, 2025*, *no* amounts had been recognized related to the Phase *2* trial as *no* additional variable consideration has been received subsequent to the contract modification.

***8.* Commitments and Contingencies** 

***Operating Lease***

The Company leases office and lab space in San Diego, California under a non-cancelable operating lease ("Science Center Drive Lease"). The lease commenced in *March 2018* and has a 5-year initial term. The lease includes a renewal option, which includes an option to renew for five additional years. During *2021,* the Company amended the lease to include additional space in the building with the right to use the new space beginning in *October 2021,* for an additional 3 years.

In *October 2023,* the Company executed a noncancelable operating lease for new premises to be used for office, research and development and laboratory purposes ("General Atomics Court Lease"), with the same landlord as the Science Center Drive Lease. The General Atomics Court Lease commenced for accounting purposes in *October 2024* when the Company took control of the premises and has a 5-year initial term from the commencement date. The General Atomics Court Lease has a five-year term with an option to extend for another three-year period subject to certain conditions, which the Company is *not* reasonably certain to exercise and therefore was *not* considered in determining the right-of-use ("ROU") assets and lease liabilities balance.

As a result of the new lease, the Company received rent abatement from *January* to *October 2024* on the Science Center Drive Lease. This resulted in a modification of the Science Center Drive Lease and a remeasurement of the existing lease liability and the associated right-of-use asset in *October 2023.* As a result, $0.6 million from the payments of the new lease were allocated to the Science Center Drive Lease, based on a relative standalone selling price analysis.

The Company's operating lease ROU asset and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. Upon commencement of the new lease, in *October 2024,* the Company recorded an ROU asset and lease liability of approximately $5.6 million. This includes the $0.6 million allocation, which led to a corresponding decrease in the ROU asset value for the new lease. The lease agreement includes variable payments which are *not* included in the measurement of the ROU assets and lease liability.

Below is a summary of the Company's operating lease right-of-use assets and lease liabilities (in thousands, except for years and %):

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| | | |
|:---|:---|:---|
|  | **June 30,** | **December 31,** |
|  | **2025** | **2024** |
| Operating lease right-of-use assets | $5007 | $5467 |
| Operating lease liability obligations, current | $1466 | $1452 |
| Operating lease liability obligations, less current portion | 4284 | 4807 |
| Total lease liability obligations | $5750 | $6259 |
| Weighted-average remaining lease term | 4.3 | 4.4 |
| Weighted-average discount rate | 9.0% | 9.0% |

---

During the *three* months ended *June 30, 2025* and *2024,* the Company recognized $0.4 million and $0.3 million, respectively, in operating lease expenses, which are included in operating expenses in the Company's statements of operations and comprehensive loss. During the *six* months ended *June 30, 2025* and *2024,* the Company recognized $0.8 million and $0.6 million, respectively, in operating lease expenses, which are included in operating expenses in the Company's statements of operations and comprehensive loss.

Supplemental cash flow information related to operating leases are as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| Cash paid for amounts included in the measurement of lease liabilities | $756 | $— |

---

Future minimum lease payments for the Company's operating lease liabilities as of *June 30, 2025* are as follows (in thousands):

---

| | |
|:---|:---|
| 2025 | $763 |
| 2026 | 1564 |
| 2027 | 1611 |
| 2028 | 1660 |
| 2029 | 1292 |
| Total minimum lease payments | 6890 |
| Less: Amount representing interest | 1140 |
| Total lease liability obligations | 5750 |
| Less: Current portion of operating lease liabilities | 1466 |
| Operating lease liabilities, net of current portion | $4284 |

---

***Litigation***

From time to time, the Company *may* become involved in various legal proceedings and claims that arise in the ordinary course of our business activities. As of *June 30, 2025*, the Company was *not* currently a party to any material legal proceedings.

***Other Commitments***

The Company has various manufacturing, clinical, research and other contracts with vendors in the conduct of the normal course of its business. Such contracts are generally terminable with advanced written notice and payment for any products or services received by the Company through the effective time of termination and any non-cancelable and non-refundable obligations incurred by the vendor at the effective time of the termination. In the case of terminating a clinical trial agreement at a particular site, the Company would also be obligated to provide continued support for appropriate medical procedures at that site until completion or termination.

***9.* Net Loss Per Share** 

The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share amounts):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | ***June 30,*** | ***June 30,*** | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** | ***2025*** | ***2024*** |
| **Numerator:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss applicable to common stockholders | $(16040) | $(9009) | $(32030) | $(17426) |
| **Denominator:** |  |  |  |  |
| Weighted average shares used to compute net loss per common share, basic and diluted | 25895996 | 23355588 | 25882540 | 12862328 |
| **Net loss per share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic and diluted | $(0.62) | $(0.39) | $(1.24) | $(1.35) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *11*

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For the *three* and *six* months ended *June 30, 2025* and *2024,* net loss is attributable equally to each share of Class A common stock and Class B common stock and is determined based on the weighted-average number of the respective class of common stock outstanding. Weighted-average common shares include shares of the Company's Class A common stock and Class B common stock. The basic and diluted net loss per share amounts are the same for Class A common stock and Class B common stock.

The Company's potentially dilutive securities, which include common stock options and a common stock warrant have been excluded from the computation of diluted net loss per share for the *three* and *six* months ended *June 30, 2025* and *2024*, as the effect would reduce the net loss per share. Therefore, the weighted-average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.

The following potentially dilutive securities have been excluded from the diluted per share calculation for the periods presented as they would be anti-dilutive:

---

| | | |
|:---|:---|:---|
|  | ***June 30,*** | ***June 30,*** |
|  | ***2025*** | ***2024*** |
| Common stock options | 5580612 | 4090030 |
| Common stock warrant | 15764 | 15764 |
| Total potentially dilutive securities | 5596376 | 4105794 |

---

***10.* Segment Reporting**

The Company operates in one reportable segment, pioneering differentiated therapies for the treatment of NI&I indications with significant unmet need.

Our chief operating decision maker ("CODM") is our President and Chief Executive Officer, Carmine Stengone. The CODM uses operating expenses, as reported on our statements of operations and comprehensive loss. The CODM makes decisions on resource allocation, assesses performance of the business, and monitors budget versus actual results of the Company as a whole using operating expenses. Net loss is also a measure that is considered in monitoring budget versus actual results. The CODM does *not* review assets in evaluating the results of the Company, and therefore, such information is *not* presented.

Significant segment expenses within net loss include research and development related to PIPE-*791,* PIPE-*307,* CTX-*343,* discovery programs and unallocated internal costs, general and administrative and interest income.

The following table provides the operating financial results of our single reportable segment (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Significant and other segment expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PIPE-791 | $6178 | $2028 | $11732 | $4889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PIPE-307 | 2160 | 2258 | 4775 | 4333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CTX-343 | 1059 | 574 | 2437 | 886 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discovery programs | 1328 | 1244 | 2710 | 2348 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unallocated internal costs<sup>(1)</sup> | 3338 | 1797 | 6121 | 3223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 3839 | 3043 | 8237 | 5195 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | 2029 | 2001 | 4279 | 3637 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other segment items<sup>(2)</sup> | (167) | (66) | (297) | (189) |
| Net loss | $(16040) | $(9009) | $(32030) | $(17426) |

---

______________________

(*1*) Unallocated internal research and development costs include employee-related expenses that cannot be directly attributable to a specific research project, stock-based compensation for employees engaged in research and development functions, facilities, depreciation and other related expenses.

(*2*) Other segment items primarily include change in fair value of warrant liability and other expense, net.

***11.* Subsequent Events**

In *July 2025,* the Company closed an at-the-market ("ATM") offering of 2,122,000 shares of its Class A common stock. The shares of Class A common stock were sold at a weighted average price of $4.03 per share, resulting in gross proceeds of $8.6 million. The Company raised $8.4 million in net proceeds after deducting sales agent commissions of $0.2 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *12*

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**Item 2. Management**'**s Discussion and Analysis of Financial Condition and Results of Operations.**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed financial statements and related notes included in this Quarterly Report on Form 10-Q and our audited financial statements and related notes thereto as of and for the year ended December 31, 2024 and the related Management*'*s Discussion and Analysis of Financial Condition and Results of Operations, both of which are included in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 6, 2025.* 

*This Quarterly Report on Form 10-Q may contain* "*forward-looking statements*" *within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the* "*Exchange Act*"*). Such forward-looking statements, which represent our intent, belief, or current expectations, involve risks and uncertainties. We use words such as* "*may,*" "*will,*" "*expect,*" "*anticipate,*" "*estimate,*" "*intend,*" "*plan,*" "*predict,*" "*potential,*" "*believe,*" "*should*" *and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such statements may include, but are not limited to, statements concerning projections about our accounting and finances, our clinical trial and product development plans and timelines, the indications, anticipated benefits of, and market opportunities for our drug candidates, our operating runway, our business strategies and plans, and other statements regarding future performance. Although we believe the expectations reflected in these forward-looking statements are reasonable, such statements are inherently subject to risk and we can give no assurances that our expectations will prove to be correct. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q. As a result of many factors, including without limitation those set forth under* "*Risk Factors*" *under Item 1A of Part II below, and elsewhere in this Quarterly Report on Form 10-Q, our actual results may differ materially from those anticipated in these forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect actual outcomes.*

**Overview** 

We are a clinical-stage biopharmaceutical company pioneering differentiated therapies for the treatment of NI&I indications with significant unmet need. We target biological pathways associated with specific clinical impairments that we believe, once modulated, will demonstrably alter the course of disease.

We have focused our efforts on developing selective compounds targeting challenging molecular pathways and have built a portfolio of small molecule drug candidates. We believe our two clinical stage, internally-discovered drug candidates, PIPE-791 and PIPE-307, will have broad applicability across multiple NI&I indications. We are developing PIPE-307 in collaboration with J&J.

Our wholly-owned lead asset, PIPE-791, is a novel, brain penetrant, small molecule inhibitor of the lysophosphatidic acid 1 receptor ("LPA1R") in development for idiopathic pulmonary fibrosis ("IPF"), progressive multiple sclerosis ("PrMS"), and chronic pain. LPA1R antagonism is a clinically validated mechanism in IPF, and we believe that our preclinical studies and Phase 1 healthy volunteer data support the development of PIPE-791 for IPF, as well as PrMS and chronic pain. Specifically, based on its high bioavailability, low plasma protein binding, and long receptor occupancy time in our preclinical studies compared to the preclinical data of other LPA1R antagonists, we believe PIPE-791 has the potential to be a differentiated LPA1R therapy. We have completed a Phase 1 clinical trial of PIPE-791 in healthy volunteers in support of clinical development in IPF, PrMS and chronic pain. In December 2024, we commenced a Phase 1b open-label trial to measure the relationship of pharmacokinetics to lung and brain receptor occupancy by positron emission tomography ("PET") imaging. We expect the topline data from this trial will be available in the third quarter of 2025. This Phase 1b PET trial, along with our preclinical studies data, will inform dose selection in our future Phase 2 trials of PIPE-791. We plan to initiate a Phase 2 global proof-of-concept clinical trial in IPF in the fourth quarter of 2025. In March 2025, we announced the initiation of patient dosing in an exploratory PIPE-791 Phase 1b, randomized, double-blind, placebo-controlled, crossover, chronic pain trial for the treatment of chronic pain associated with two separate indications, chronic osteoarthritis and chronic low back pain. We expect to enroll approximately 40 patients at up to five sites in the U.S., and a treatment duration of 28 days. We anticipate topline data from this trial in the first half of 2026.

Our second drug candidate, PIPE-307, is a novel, small molecule selective inhibitor of the muscarinic type 1 receptor ("M1R"), in development for depression and relapse-remitting multiple sclerosis ("RRMS"). We have completed two Phase 1 trials of PIPE-307 in healthy volunteers. In 2023, we initiated a Phase 2 VISTA trial of PIPE-307 for the potential treatment of RRMS. In January 2025, we announced that we have fully enrolled our Phase 2 VISTA trial. We expect the topline data from this trial will be available in the fourth quarter of 2025. In December 2024, J&J began recruiting an estimated 124 adult participants for a Phase 2 trial of PIPE-307/JNJ-89495120 for the potential treatment of major depressive disorder ("MDD"). This trial is a randomized, double-blind, multi-center, placebo-controlled, proof-of-concept study to evaluate the efficacy, safety and tolerability of PIPE-307/JNJ-89495120 as monotherapy in adult participants with MDD. We believe PIPE-307 is the most advanced selective M1R antagonist in clinical development.

In addition, we are leveraging our drug discovery capabilities to expand our clinical portfolio. In January 2024, we nominated and commenced preclinical studies for CTX-343, a peripherally-restricted (unable to access the central nervous system) LPA1R antagonist. In parallel, we are actively conducting preclinical and discovery-phase experiments targeting other NI&I indications where our internally-discovered molecules may have therapeutic potential.

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We have a portfolio of novel and proprietary small molecule programs that we believe can modulate innate pathways to restore function in NI&I indications. We retain worldwide rights to our LPA1R programs and discovery portfolio, and we have partnered with J&J for the development and potential commercialization efforts of PIPE-307.

![pipeline2025.jpg](pipeline2025.jpg)

We expect our operating expenses to significantly increase as we continue to develop, conduct clinical trials, and seek regulatory approvals for our drug candidates, engage in other research and development activities to expand the indications for our existing drug candidates and develop a pipeline of additional drug candidates, expand our operations and headcount, maintain and expand our intellectual property portfolio, and, if we obtain approval for one or more of our drug candidates, launch commercial activities. We also expect to incur additional operating expenses as we continue operating as a public company. Our net losses may fluctuate significantly from quarter-to-quarter and year-to-year, depending on the timing and scope of our clinical trials and our expenditures on other research and development activities.

As we continue to pursue our business plan, we expect to finance our operations through both public and private sales of equity, debt financings or other commercial arrangements, which could include income from collaborations, strategic partnerships or marketing, distribution, licensing or other strategic arrangements with third parties. However, there can be no assurance that any additional financing or strategic transactions will be available to us on acceptable terms, if at all. If events or circumstances occur such that we do not obtain additional funding, we may need to delay, reduce or eliminate our product development or future commercialization efforts, which could have a material adverse effect on our business, results of operations or financial condition. Further, if we raise funds through licensing or other commercial arrangements with third parties, we may be required to relinquish valuable rights to our technology, future revenue streams, research programs or drug candidates or may be required to grant licenses on terms that may not be favorable to us and/or may reduce the value of our common stock.

**Collaboration** 

In February 2023, we entered into a license agreement with J&J (the "J&J License Agreement"), pursuant to which we granted J&J an exclusive, worldwide license to develop, manufacture and commercialize PIPE-307 in all indications.

J&J is generally responsible for all development, manufacturing and commercialization activities for PIPE-307. Upon J&J conducting a first Phase 3 clinical trial for a product using PIPE-307, we have an opt-in right to fund a portion of all Phase 3 and subsequent development costs for PIPE-307. If we opt to fund such development costs, then the royalties we are eligible to receive will increase by one to two percentage points.

We are conducting, at our own expense, a Phase 2 clinical trial of PIPE-307 in patients with RRMS. We completed enrollment of our Phase 2 clinical trial in December 2024, and expect the topline data from this trial will be available in the third quarter of 2025. J&J has the right to discontinue our clinical trial if it has good faith concerns that this trial presents safety risks or could have a material adverse effect on its development or commercialization of PIPE-307. In addition, J&J has the right, in its sole discretion, to further develop or to elect not to develop PIPE-307 for this indication. In December 2024, J&J began recruiting an estimated 124 adult participants for a Phase 2 trial of PIPE-307/JNJ-89495120 for the potential treatment of MDD. This trial is a randomized, double-blind, multi-center, placebo-controlled, proof-of-concept study to evaluate the efficacy, safety and tolerability of PIPE-307/JNJ-89495120 as monotherapy in adult participants with MDD.

The J&J License Agreement expires on a licensed product-by-product and country-by-country basis upon the last to occur of: (i) the expiration of the last-to-expire licensed patent claim covering the composition of matter of the licensed compound in such licensed product in such country; (ii) the expiration of exclusive marketing rights conferred by a regulatory authority or applicable law (other than patent exclusivity) for such licensed product in such country; or (iii) ten years after the first commercial sale of such licensed product in such country. Either party may terminate the J&J License Agreement in the event of an uncured material breach by the other party or a bankruptcy or insolvency of the other party. J&J may terminate the J&J License Agreement without cause upon prior written notice to us. Upon any termination, all license rights granted to J&J terminate.

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**Financial Operations Overview** 

***Revenue***

We recognize license revenues as identified performance obligations are satisfied or other events occur, specifically related to our J&J License Agreement. Pursuant to the terms of the J&J License Agreement, we received an upfront payment of $50.0 million in May 2023. We are also eligible to receive approximately $1.0 billion in non-refundable, non-creditable milestone payments, pursuant to the terms of the J&J License Agreement. Additionally, we are eligible to receive tiered royalties in the low-double digit to high-teen percent range on net sales of products containing PIPE-307. We do not have any products approved for sale and we have not yet generated any revenue from product sales. We did not recognize any revenue for the three and six months ended June 30, 2025 or 2024.

***Operating Expenses***

*Research and Development* 

Research and development expenses consist primarily of costs incurred for our internal research and development activities.

Direct costs include:

• employee-related expenses, including salaries, related benefits, and travel that can be directly attributable to each research project;

• expenses incurred in connection with research, laboratory consumables and preclinical studies;

• expenses incurred in connection with conducting clinical trials, including investigator grants and site payments for time and pass-through expenses and expenses incurred under agreements with contract research organizations ("CROs"), other vendors or central laboratories and service providers engaged to conduct our trials;

• the cost of consultants engaged in research and development related services;

• the cost to manufacture drug products for use in our preclinical studies and clinical trials; and

• costs related to regulatory compliance.

Unallocated internal research and development costs include:

• employee-related expenses, including salaries, related benefits, and travel that cannot be directly attributable to a specific research project;

• stock-based compensation for employees engaged in research and development functions; and

• facilities, depreciation and other related expenses.

We expense our research and development costs as they are incurred. We record advance payments for goods or services to be received in the future for use in research and development as prepaid expenses. We then expense the prepaid amounts as the related goods are delivered or the services are performed.

We track outsourced development costs, consultant costs and other external research and development costs such as third-party contract costs relating to manufacturing, clinical trial activities, translational medicine and toxicology activities to specific programs. We allocate employee related costs including salaries and related benefits based upon the level of effort for each specific project.

Certain employee activities that cannot be allocated to any one specific project or management related activities are considered indirect costs. The following tables summarize our research and development expenses for the three and six months ended June 30, 2025 and 2024. The direct external development program expenses reflect external costs attributable to our clinical development and preclinical programs and personnel costs that can be directly attributed to a development program. The unallocated internal research and development costs include unallocated personnel costs, facility costs, stock-based compensation, laboratory consumables and discovery and research related activities.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | (in thousands) | (in thousands) | (in thousands) | (in thousands) |
| Direct external development program expense |  |  |  |  |
| PIPE-791 | $6178 | $2028 | $11732 | $4889 |
| PIPE-307 | 2160 | 2258 | 4775 | 4333 |
| CTX-343 | 1059 | 574 | 2437 | 886 |
| Discovery programs | 1328 | 1244 | 2710 | 2348 |
| Unallocated internal research and development costs |  |  |  |  |
| Personnel related | 1207 | 484 | 1835 | 852 |
| Stock-based compensation | 1094 | 620 | 2177 | 1009 |
| Facilities costs | 482 | 236 | 986 | 455 |
| Others | 555 | 457 | 1123 | 907 |
| Total research and development costs | $14063 | $7901 | $27775 | $15679 |

---

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Research and development activities are central to our business model. There are numerous factors associated with the successful commercialization of any of our drug candidates, including future clinical trial design and various regulatory requirements, many of which we cannot determine with accuracy at this time based on our stage of development. In addition, future regulatory factors beyond our control may impact our clinical development programs. Drug candidates in later stages of clinical development generally have higher development costs than those in earlier stages of clinical development, primarily due to the increased size and duration of later-stage clinical trials. At this time, we cannot reasonably estimate or know the nature, timing and costs of the efforts that will be necessary to complete the preclinical and clinical development of any of our drug candidates and our costs may increase if we exercise our opt-in right to fund a portion of all Phase 3 and subsequent development costs for PIPE-307 pursuant to the J&J License Agreement. However, we expect that our research and development expenses will increase substantially in connection with our planned preclinical and clinical development activities in the near term and for the foreseeable future.

The successful development of our drug candidates is highly uncertain. This is due to numerous risks and uncertainties, including the following:

• successful completion of preclinical studies and clinical trials;

• delays in regulators or institutional review boards authorizing us or our investigators to commence or continue our clinical trials;

• our ability to negotiate agreements with clinical trial sites or CROs;

• the number of clinical sites included in our clinical trials;

• raising additional funds necessary to complete clinical development of our drug candidates;

• obtaining and maintaining patent, trade secret and other intellectual property protection and regulatory exclusivity for our drug candidates;

• establishing and qualifying manufacturing capabilities for clinical supplies of our drug candidates, whether directly or through qualified third party manufacturers;

• our ability to receive necessary regulatory approvals from the U.S. Food and Drug Administration and comparable governmental bodies outside the United States;

• our decision to elect to fund a portion of Phase 3 and subsequent development costs for PIPE-307; 

• coverage for our products by governmental and third party payors;

• protecting and enforcing our rights in our intellectual property portfolio;

• our ability to successfully compete with our competitors and their product offerings; and

• maintaining a continued acceptable safety profile of the products following approval.

A change in the outcome of any of these variables with respect to the development of our drug candidates may significantly impact the costs and timing associated with the development of our drug candidates. We may never succeed in obtaining regulatory approval for any of our drug candidates or successfully commercialize our products, even if approved.

*General and Administrative* 

General and administrative expenses consist primarily of salaries and employee-related costs, including stock-based compensation, for personnel in executive, finance and other administrative functions. Other significant costs include legal fees relating to intellectual property, patent applications, and corporate matters, professional fees for accounting and consulting services and facility-related costs.

We expect our general and administrative expenses will increase for the foreseeable future to support our increased research and development activities, the growth of our business operations and headcount and to reflect increased operating expenses as we continue operating as a public company. These increased costs will likely include increased expenses related to audit, legal, regulatory services associated with maintaining compliance with exchange listing and SEC requirements, director and officer insurance premiums and investor relations costs.

***Other Income (Expense)***

*Interest Income* 

Interest income consists of interest earned on our cash, cash equivalents and marketable securities.

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**Results of Operations** 

***Comparison of the Three Months Ended June 30, 2025 and 2024***

The following table summarizes our results of operations (in thousands) for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **Change** |
| Operating expenses: |  |  |  |
| Research and development | $14063 | $7901 | $6162 |
| General and administrative | 3839 | 3043 | 796 |
| Total operating expenses | 17902 | 10944 | 6958 |
| Loss from operations | (17902) | (10944) | (6958) |
| Other income (expense): |  |  |  |
| Interest income | 2029 | 2001 | 28 |
| Change in fair value of warrant liability |  | 11 | (11) |
| Other expense, net | (167) | (77) | (90) |
| Total other income, net | 1862 | 1935 | (73) |
| Net loss | $(16040) | $(9009) | $(7031) |

---

***Research and development expenses***. Research and development expenses were $14.1 million and $7.9 million for the three months ended June 30, 2025 and 2024, respectively. The increase of $6.1 million from period to period was due to the following:

• $4.3 million increase in contract research organization costs due to a $2.6 million increase in startup costs related to the Phase 2 trial for PIPE-791 for the treatment of IPF, a $1.0 million increase in costs related to the Phase 1b trial for PIPE-791 for the treatment of chronic pain, and a $0.7 million increase in costs related to the Phase 1b PET trial for PIPE-791;

• $1.5 million increase in personnel-related expense related to an overall increase in personnel from period to period;

• $0.5 million increase in non-cash stock-based compensation; and

• $0.2 million increase in facilities costs.

Partially offsetting these increases was a $0.3 million decrease in manufacturing expenses for PIPE-791 and CTX-343.

***General and administrative expenses***. General and administrative expenses were $3.8 million and $3.0 million for the three months ended June 30, 2025 and 2024, respectively. The increase of $0.8 million was due to a $0.5 million increase in non-cash stock-based compensation, a $0.5 million increase in personnel-related expenses related to an overall increase in personnel from period to period, and a $0.1 million increase in facilities costs. Partially offsetting these increases was a $0.3 million decrease in market research costs.

***Comparison of the Six Months Ended June 30, 2025 and 2024***

The following table summarizes our results of operations (in thousands) for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |  |
|  | **June 30,** | **June 30,** |  |
|  | **2025** | **2024** | **Change** |
| Operating expenses: |  |  |  |
| Research and development | $27775 | $15679 | $12096 |
| General and administrative | 8237 | 5195 | 3042 |
| Total operating expenses | 36012 | 20874 | 15138 |
| Loss from operations | (36012) | (20874) | (15138) |
| Other income (expense): |  |  |  |
| Interest income | 4279 | 3637 | 642 |
| Change in fair value of warrant liability |  | (107) | 107 |
| Other expense, net | (297) | (82) | (215) |
| Total other income, net | 3982 | 3448 | 534 |
| Net loss | $(32030) | $(17426) | $(14604) |

---

***Research and development expenses***. Research and development expenses were $27.8 million and $15.7 million for the six months ended June 30, 2025 and 2024, respectively. The increase of $12.1 million from period to period was due to the following:

• $8.1 million increase in contract research organization costs due to a $3.7 million increase in startup costs related to the Phase 2 trial for PIPE-791 for the treatment of IPF, a $2.1 million increase in costs related to the Phase 1b trial for PIPE-791 for the treatment of chronic pain, a $1.5 million increase in costs related to the Phase 1b PET trial for PIPE-791, and a $0.8 million increase in costs related to the VISTA Phase 2 clinical trial for PIPE-307 for the potential treatment of RRMS;

• $2.3 million increase in personnel-related expense related to an overall increase in personnel from period to period;

• $1.2 million increase in non-cash stock-based compensation; and

• $0.5 million increase in facilities costs.

***General and administrative expenses***. General and administrative expenses were $8.2 million and $5.2 million for the six months ended June 30, 2025 and 2024, respectively. The increase of $3.0 million was primarily due to a $1.6 million increase in non-cash stock-based compensation, a $1.2 million increase in personnel-related expenses, and a $0.2 million increase in facilities costs.

***Interest income***. Interest income was $4.3 million and $3.6 million for the six months ended June 30, 2025 and 2024, respectively. The increase of $0.6 million was due to an increase in funds invested in marketable securities and an increase in the yields earned on our marketable securities from the six months ended June 30, 2024 to the six months ended June 30, 2025.

**Liquidity and Capital Resources** 

***Sources of Liquidity***

We have incurred net losses and negative cash flows from operations in nearly every reporting period since our inception and anticipate that we will continue to incur net losses for the foreseeable future. We expect to incur substantial expenditures as we advance our drug candidates through clinical development, undergo the regulatory approval process, engage in other research and development activities to expand our pipeline of drug candidates, expand our operations and headcount, maintain and expand our intellectual property portfolio and, if we obtain approval for one or more of our drug candidates, launch commercial activities.

Through June 30, 2025, we have funded our operations primarily through the issuance of convertible promissory notes, private placements of our convertible preferred stock, the J&J License Agreement, and net proceeds from the IPO. Through June 30, 2025, we have raised gross proceeds of approximately $312.8 million from the issuance of our convertible preferred stock, promissory notes, and Class A common stock in our IPO. In addition, we received an upfront payment from the J&J License Agreement of $50.0 million and borrowed $5.0 million at the inception of the loan and security agreement with First Citizens Bank. Upon the closing of the IPO, our outstanding convertible preferred stock automatically converted into Class A common stock or Class B common stock, as applicable. In April 2024, we raised approximately $107.9 million in net proceeds from the IPO. As of June 30, 2025, we had an accumulated deficit of $149.4 million.

As of June 30, 2025, we had cash, cash equivalents and marketable securities of $175.5 million. Based on our current operating plan, we believe that our existing cash and cash equivalents and short-term investments, will be sufficient to meet our anticipated operating expenses and capital expenditure requirements through at least the next 12 months, following the date of this Quarterly Report on Form 10-Q.

In May 2025, we entered into a Sales Agreement (the "Agreement") with Leerink Partners LLC ("Leerink Partners") relating to the offer and sale of up to $75.0 million in shares of our Class A common stock, par value $0.001 per share (the "Shares"). We are not obligated to make any sales of Shares under the Agreement. Any sales under the Agreement will be made pursuant to an "at-the-market offering" (the "ATM Program") in accordance with Rule 415(a)(4) under the Securities Act of 1933, as amended. We did not sell any shares of our Class A common stock under the Agreement during the three months ended June 30, 2025.

In July 2025, the Company closed an ATM offering of 2,122,000 shares of its Class A common stock. The shares of Class A common stock were sold at a weighted average price of $4.03 per share, resulting in gross proceeds of $8.6 million. The Company raised $8.4 million in net proceeds after deducting sales agent commissions of $0.2 million.

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As we continue to pursue our business plan, we expect to finance our operations through both public and private sales of equity, debt financings or other commercial arrangements, which could include milestone payments from collaborations, strategic partnerships or marketing, distribution, licensing or other strategic arrangements with third parties. However, there can be no assurance that any additional financing or strategic transactions will be available to us on acceptable terms, if at all. If events or circumstances occur such that we do not obtain additional funding, we may need to delay, reduce or eliminate our product development or future commercialization efforts, which could have a material adverse effect on our business, results of operations or financial condition. Further, if we raise funds through licensing or other commercial arrangements with third parties, we may be required to relinquish valuable rights to our technology, future revenue streams, research programs or drug candidates or may be required to grant licenses on terms that may not be favorable to us and/or may reduce the value of our common stock.

***Cash Flows***

The following table sets forth a summary of our cash flows for the periods indicated (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Net cash used in operating activities | $(30073) | $(16474) |
| Net cash provided by (used in) investing activities | 28799 | (30168) |
| Net cash provided by financing activities | 115 | 108346 |
| Net increase (decrease) in cash and cash equivalents | $(1159) | $61704 |

---

*Operating Activities* 

Net cash used in operating activities was $30.1 million for the six months ended June 30, 2025, which related to our net loss of $32.0 million and a $3.0 million change in operating assets and liabilities, partially offset by $4.9 million of non-cash charges for stock-based compensation, depreciation and amortization, accretion of premiums/discounts on investments, and non-cash operating lease expense. Net cash used in operating activities was $16.5 million for the six months ended June 30, 2024, which primarily related to our net loss of $17.4 million, partially offset by $0.8 million of non-cash charges for stock-based compensation, depreciation and amortization, accretion of premiums/discounts on investments, and non-cash operating lease expense, and $0.1 million change in operating assets and liabilities.

*Investing Activities* 

Net cash provided by investing activities was $28.8 million for the six months ended June 30, 2025, which related to $88.0 million of sales and maturities of marketable securities, partially offset by $59.1 million of purchases of marketable securities and $0.1 million or purchases of property and equipment. Net cash used in investing activities was $30.2 million for the six months ended June 30, 2024, which primarily related to $99.6 million of purchases of marketable securities and $0.3 million of purchases of property and equipment, partially offset by $69.7 million of sales and maturities of marketable securities.

*Financing Activities* 

Net cash provided by financing activities was approximately $0.1 million for the six months ended June 30, 2025, which was primarily related to $0.3 million of proceeds from employee stock purchase plan, partially offset by $0.2 million in payments of deferred offering costs. Net cash provided by financing activities was $108.3 million for the six months ended June 30, 2024, which primarily related to $108.2 million of net proceeds from the issuance of common stock in the Company's IPO and $0.1 million of proceeds from the exercise of stock options.

***Funding Requirements***

We expect our operating expenses to significantly increase as we continue to develop and seek regulatory approvals for our drug candidates, engage in other research and development activities to expand our pipeline of drug candidates, expand our operations and headcount, maintain and expand our intellectual property portfolio, and, if we obtain approval for one or more of our drug candidates, launch commercial activities. However, our forecast of the period of time through which our financial resources will be adequate to support our operations is a forward-looking statement that involves risks and uncertainties, and our actual results could vary materially. We have based this estimate on assumptions that may prove to be wrong, and we could deplete our capital resources sooner than we expect. Additionally, the process of testing our drug candidates in clinical trials is costly, and the timing of progress and expenses in these trials is uncertain.

Our future capital requirements will depend on many factors, including:

• the type, number, scope, progress, expansions, results, costs and timing of, our clinical trials and preclinical studies for our drug candidates or other potential drug candidates or indications which we are pursuing or may choose to pursue in the future;

• the outcome, timing and costs of regulatory review of our drug candidates;

• the costs and timing of manufacturing for our drug candidates;

• our efforts to enhance our operational systems and hire additional personnel to satisfy our obligations as a public company, including enhanced internal controls over financial reporting;

• the costs associated with hiring additional personnel and consultants as our preclinical and clinical activities expand;

• the costs and timing of establishing or securing manufacturing facilities for our drug candidates;

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• the costs and timing of establishing sales and marketing capabilities if any of our drug candidates are approved;

• our ability to establish and maintain strategic collaborations, licensing or other arrangements;

• the financial terms of any such agreements that we may enter into;

• our decision to elect to fund a portion of Phase 3 and subsequent development costs for PIPE-307;

• the costs of obtaining, maintaining and enforcing our patent and other intellectual property rights; and

• costs associated with any drug candidates, products or technologies that we may in-license or acquire.

Until such time as we can generate significant revenue from sales of our drug candidates, if ever, we expect to finance our cash needs through public or private equity or debt financings or other commercial arrangements, including collaborations, strategic partnerships or marketing, distribution, licensing or other strategic arrangements with third parties. We may be unable to raise additional funds or enter into such commercial arrangements when needed, on favorable terms, or at all. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our stockholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we raise funds through collaborations, or other similar arrangements with third parties, we may be required to relinquish valuable rights to our drug candidates, future revenue streams or research programs or may be required to grant licenses on terms that may not be favorable to us and may reduce the value of our common stock. If we are unable to raise additional funds through equity or debt financings or through commercial arrangements when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market our drug candidates even if we would otherwise prefer to develop and market such drug candidates ourselves.

**Contractual Obligations and Commitments** 

Our contractual obligations and commitments relate to our operating leases that relate primarily to our leases of office and laboratory space in San Diego, California. Our total contractual commitments for our lease agreements amount to approximately $6.9 million as of June 30, 2025.

We enter into contracts in the normal course of business for contract research services, contract manufacturing services, professional services and other services and products for operating purposes. These contracts generally provide for termination after a notice period, and, therefore, are cancelable contracts and not included in the table above.

**Off-Balance Sheet Arrangements** 

During the periods presented, we did not have, nor do we currently have, any off-balance sheet arrangements as defined under the rules and regulations of the SEC.

**Critical Accounting Policies and Significant Judgments and Estimates** 

Management's discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of our assets, liabilities, revenue, and expenses and the disclosure of contingent assets and liabilities in our financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, including those related to the accrual of research and development expenses; the incremental borrowing rate used to recognize the right-of-use assets and lease liabilities, the fair value of common stock and convertible preferred stock; and stock-based compensation We base our estimates and assumptions on historical experience, known trends and events, and various other factors that we believe are reasonable and appropriate under the circumstances, the results of which form the basis for making judgments about the carrying values of our assets and liabilities that are not readily apparent from other sources. Our actual results may differ from these estimates under different assumptions or conditions.

There have been no material changes to our critical accounting estimates from those described under our "Management's Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Significant Judgements and Estimates" included in our Annual Report on Form 10-K for the year ended December 31, 2024.

**Emerging growth company and smaller reporting company status**

We are an "emerging growth company," as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. We will remain an emerging growth company until the earlier of (i) December 31, 2029, the last day of the fiscal year following the fifth anniversary of the completion of the IPO, (ii) the last day of the fiscal year (a) in which we have total annual gross revenue of at least $1.235 billion or (b) in which we are deemed to be a large accelerated filer, which means the market value of our voting and non-voting common stock that is held by non-affiliates exceeds $700 million as of the prior June 30th, or (iii) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

We are also a "smaller reporting company" as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We have elected to take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the market value of our voting and non-voting common stock held by non-affiliates is less than $250 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our voting and non-voting common stock held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter.

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**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

**Item 4. Controls and Procedures.**

***Evaluation of Disclosure Controls and Procedures***

Our management, with the participation of our principal executive officer and our principal financial officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures. Based on this evaluation of our disclosure controls and procedures as of June 30, 2025, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures as of such date were effective at the reasonable assurance level. The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act are recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

***Changes in Internal Control over Financial Reporting***

During the quarter ended June 30, 2025, there have been no changes in our internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15(d)-15(f) promulgated under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20

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**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings.**

From time to time, we may become involved in various legal proceedings and claims that arise in the ordinary course of our business activities. We are not currently a party to any material legal proceedings. Regardless of the outcome, litigation could have an adverse impact on us because of defense and settlement costs, diversion of management resources, negative publicity, reputational harm and other factors.

**Item 1A. Risk Factors.**

Investing in our common stock involves a high degree of risk. In addition to the information set forth in this Quarterly Report on Form 10-Q, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our condensed financial statements and related notes, you should consider carefully the factors discussed in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K, filed with the SEC on March 6, 2025. The occurrence of any of the risks and uncertainties described in such Annual Report could materially and adversely affect our business, financial condition, results of operations and prospects. In that event, the price of our common stock could decline and you could lose part or all of your investment. Furthermore, such risks are not the only ones we face; additional risks and uncertainties not currently known or that we currently deem to be immaterial may also materially adversely affect our business, financial condition or results of operations. Except as set forth below, there have been no material changes from the risk factors set forth in Part I, Item 1A of the Company's Annual Report on Form 10-K.

***Changes in tax laws and the implementation of tax laws could adversely affect us.***

The tax regimes we are subject to or operate under, including with respect to income and non-income taxes, are unsettled and may be subject to significant change. Changes in tax laws, regulations, or rulings, or changes in interpretations of existing laws and regulations, could materially adversely affect our company. For example, the TCJA, the CARES Act, and the IRA enacted many significant changes to the U.S. tax laws. Future guidance from the IRS and other tax authorities with respect to such legislation may affect us, and certain aspects thereof could be repealed or modified in future legislation. For example, the Internal Revenue Code tax capitalization rules enacted in 2022 required research and development expenses to be capitalized and amortized over a 5-year period for tax purposes. However, The One Big Beautiful Bill Act (the "OBBB Act") features several tax reforms, including permitting taxpayers to permanently deduct domestic research and development expenses for amounts paid or incurred in tax years beginning after December 31, 2024. We are continuing to analyze the potential impact of the OBBB Act on our operations and financial condition, but we do not expect the OBBB Act to materially impact our effective tax rate or cash flows in the current fiscal year.

We use our best judgment in attempting to quantify and reserve for these tax obligations. However, a challenge by the IRS or another taxing authority, our ability to utilize tax benefits such as carryforwards or tax credits, or a deviation from other tax-related assumptions could have a material adverse effect on our business, results of operations or financial condition. In addition, new legislation or regulations which could affect our tax burden could be enacted by Congress or another governmental authority. We cannot predict the timing or extent of such tax-related developments which could have a negative impact on our financial position and results of operation.

***Unstable or unfavorable global economic conditions and an uncertain geopolitical environment could have an adverse effect on our business, financial condition, results of operations and prospects.***

Our business, financial condition and results of operations as well as our ability to advance our drug candidates could be adversely affected by general conditions in the global economy or disruption of global financial markets, including the impacts of domestic and global monetary and fiscal policy, trade regulations, including changes in trade policies, tariffs or other trade restrictions or the threat of such actions, geopolitical instability, including ongoing military conflicts between Russia and Ukraine and in the Middle East, rising tensions between China and Taiwan, and high interest rates. For example, the U.S. government has recently implemented or announced substantial new tariffs affecting a wide range of products and jurisdictions and has indicated an intention to continue developing new trade policies, including with respect to the biopharmaceutical industry. In response, certain foreign governments have announced or implemented retaliatory tariffs and other protectionist measures. These developments have created a dynamic and unpredictable trade landscape, increased trade and political tensions and caused widespread uncertainty in the financial markets. Shifts in trade policies, whether through legislation, executive action, or international negotiation, could alter the global trade landscape and affect supply chains, pricing, and demand for goods and services. These developments, or the perception that such changes may occur, have and could continue to have a material adverse effect on global economic conditions, contribute to volatility in financial markets, and disrupt international trade, including trade between the U.S. and its key partners. We cannot anticipate all of the ways in which the foregoing, and the current macroeconomic and geopolitical climate and financial market conditions generally, could adversely impact our business and any of these factors could result in a material adverse effect on our business, financial condition, results of operations, and prospects. If the current life science equity and credit markets deteriorate, or do not improve, it may make any necessary debt or equity financing more difficult, more costly, and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and stock price and could require us to delay or abandon clinical development plans.

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**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

**(a) Recent Sales of Unregistered Equity Securities.**

None.

**(b) Use of Proceeds from Initial Public Offering of Common Stock.**

On April 4, 2024, our registration statement on Form S-1 (333-278003) relating to the initial public offering of our common stock was declared effective by the SEC (the "Registration Statement"). Pursuant to such Registration Statement, we issued and sold an aggregate of 7,423,682 shares of our common stock, which includes 548,682 shares sold pursuant to the underwriters' partial exercise of their option to purchase additional shares, at the public offering price of $16.00 per share. On April 9, 2024, we closed the sale of 6,875,000 shares and on April 19, 2024, we closed the sale of the 548,682 shares sold pursuant to the underwriters' exercise of their option to purchase additional shares. The aggregate offering price for shares sold in the IPO was approximately $118.8 million, resulting in aggregate net proceeds of approximately $107.9 million, after deducting the underwriting discounts, commissions and offering expenses paid or payable by us. No offering expenses were paid or payable, directly or indirectly, to our directors, officers, persons owning 10% or more of any class of our equity securities, or to any of our affiliates. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Stifel Nicolaus & Company, Incorporated and RBC Capital Markets, LLC acted as joint book-running managers for the IPO.

There has been no material change in the planned use of proceeds from the IPO from those described in the final Prospectus, dated April 4, 2024, filed with the SEC on April 8, 2024, pursuant to Rule 424(b) of the Securities Act.

**(c) Issuer Purchases of Equity Securities.** 

None.

**Item 3. Defaults Upon Senior Securities.** 

None.

**Item 4. Mine Safety Disclosures.**

Not Applicable.

**Item *5*. Other Information.**

*Trading Arrangements*

During the quarter ended *June 30, 2025*, *none* of our directors or officers adopted or terminated any Rule *10b5*-*1* trading arrangement or any non-Rule *10b5*-*1* trading arrangement (as such terms are defined pursuant to Item *408*(a) of Regulation S-K).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *22*

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**Item 6. Exhibits**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Exhibit** |  | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Filed** |
| **Number** | **Description** | **Form** | **File No.** | **Exhibit** | **Filing Date** | **Herewith** |
| 3.1 | [Amended and Restated Certificate of Incorporation of the Registrant.](http://www.sec.gov/Archives/edgar/data/1855175/000119312524090917/d811673dex31.htm) | 8-K | 001-42001 | 3.1 | 04/09/2024 |  |
| 3.2 | [Amended and Restated Bylaws of the Registrant.](http://www.sec.gov/Archives/edgar/data/1855175/000119312524090917/d811673dex32.htm) | 8-K | 001-42001 | 3.2 | 04/09/2024 |  |
| 10.1+ ^ | [Offer Letter, dated as of April 3, 2025, by and between the Registrant and Tim Watkins.](ex_822885.htm) |  |  |  |  | X |
| 10.2+ | [Amendment to Offer Letter, dated as of April 18, 2025, by and between the Registrant and Tim Watkins.](ex_838819.htm) |  |  |  |  | X |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 10.3 | [Sales Agreement, dated May 14, 2025, by and between Contineum Therapeutics, Inc. and Leerink Partners.](http://www.sec.gov/Archives/edgar/data/1855175/000143774925016871/ex_815361.htm) | S-3 | 333-287275 | 1.2 | 05/14/2025 |  |
| 31.1 | [Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex_822886.htm) |  |  |  |  | X |
| 31.2 | [Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex_822887.htm) |  |  |  |  | X |
| 32.1\* | [Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex_822888.htm) |  |  |  |  | X |
| 32.2\* | [Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex_822889.htm) |  |  |  |  | X |
| 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |  |  |  |  | X |
| 101.SCH | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents. |  |  |  |  | X |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |  |  |  |  | X |

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_________________________________________

+ Indicates management contract or compensatory plan.

^ Pursuant to Item 601(a)(5) of Regulation S-K, certain exhibits and schedules have been omitted. The Registrant hereby undertakes to furnish supplementally a copy of any omitted exhibit or schedule upon request by the SEC.

\*&nbsp;&nbsp;&nbsp;&nbsp;The certifications furnished in Exhibit 32.1 and 32.2 hereto are deemed to be furnished with this Quarterly Report on Form 10-Q and will not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the Registrant specifically incorporates them by reference.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | **Contineum Therapeutics, Inc.** | **Contineum Therapeutics, Inc.** |
| August 5, 2025 | By: | /s/ Carmine Stengone |
|  |  | Carmine Stengone |
|  |  | President, Chief Executive Officer and Director |
|  |  | (Principal Executive Officer) |

---

---

| | | |
|:---|:---|:---|
| August 5, 2025 | By: | /s/ Peter Slover |
|  |  | Peter Slover |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer and Principal Accounting Officer) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25

## Exhibit 10.1

**Exhibit 10.1**

![companylogo.jpg](companylogo.jpg)

**Via Email**

Timothy Watkins, MD MSc<br> watkins.tr@gmail.com

April 3, 2025

Dear Tim:

Contineum Therapeutics, Inc. (the "***Company***") is pleased to offer you the position of Chief Medical Officer. You will report directly to the Company's Chief Executive Officer.

This letter is our formal offer of employment and requires your written acceptance. If our offer is acceptable to you, please countersign this offer letter below and return the signed copy to me. Your employment with the Company will then commence as of April 30, 2025 (the "***Start Date***").

Your performance and compensation will be subject to an annual review by the Company's Chief Executive Officer and the Compensation Committee (the "***Committee***") of the Company's Board of Directors. Merit increases, if deemed appropriate, are at the sole discretion of the Committee. Subject to the terms and conditions set forth herein, your specific job duties and responsibilities may change from time to time as determined by the Company's Chief Executive Officer.

**Base Salary:** Your employment will be on a full-time basis with an annual base salary of $530,000 per year (as may be adjusted from time to time in accordance with the terms and conditions set forth herein, the "***Base Salary***"), payable in accordance with the Company's payroll policies and applicable law. Your employment status will be exempt and as an exempt employee, you will not be eligible to receive overtime compensation.

**Annual Bonus:** You will be eligible to receive a target annual cash bonus set at 40% of your Base Salary (the "***Annual Bonus***", which for 2025 will be pro-rated based on your service during fiscal 2025). Similar to the Company's other executives, your Annual Bonus will be based on the achievement of corporate and individual performance goals approved for each fiscal year by the Committee. The Company will pay your earned Annual Bonus for each fiscal year by January 31<sup>st</sup> of the next fiscal year, subject to your continued employment with the Company on the applicable payment date.

**Incentive Bonus:** The Company will pay you an incentive bonus (the "***Incentive Bonus***") in the amount of $225,000, less applicable taxes and withholdings, earned and payable on the date the Company's other executives receive their 2025 Annual Bonus (the "***Payment Date***"), subject in each case to your continued employment with the Company through such Payment Date. Notwithstanding the foregoing, if your employment with the Company ends as a result of an Involuntary Termination (as such term is defined in the Executive Severance Plan attached hereto as <u>Exhibit B</u>) prior to the Payment Date, the Company will be obligated to pay you the Incentive Bonus in full if you duly execute and return to the Company within 60 days following the date of your termination/resignation (the "***Release Deadline***"), a separation agreement and release in the form prescribed by and acceptable to the Company (the "***Release***"), and permit the Release to become effective in accordance with its terms. The Company will pay you the Incentive Bonus in a lump sum within 10 days after the Release becomes effective.

------

**Stock Option Award:** The Committee will grant you a stock option to purchase 260,000 shares of Class A Common Stock (the "***Option Shares***") with an exercise price equal to the closing bid price of the Company's Class A Common Stock as reported on the Nasdaq Stock Market on the date of grant (the "***Option***"). Your Option Shares will vest as follows: 50% of your Option Shares will vest on the 6-month anniversary of your Start Date, and the remaining 50% of your Option Shares will vest in 36 equal monthly installments over the next 36 months, based on your continued services to the Company through the applicable vesting date. The Company intends to grant the Option as an "inducement grant" (within the meaning of Nasdaq Marketplace Rule 5635(c)(4)). While the Option will be granted outside of the Company's 2024 Equity Incentive Plan (the "***Plan***"), the other terms and conditions applicable to the Option will be consistent with those applicable to options granted under the Plan, as described in the applicable Notice of Stock Option Grant and Stock Option Agreement. The Committee agrees to grant your Option on your Start Date.

**Performance-Based Stock Option Award:** The Committee will grant you a performance-based stock option to purchase 26,000 shares of Class A Common Stock (the "***PB Option Shares***") with an exercise price equal to the closing bid price of the Company's Class A Common Stock as reported on the Nasdaq Stock Market on the date of grant (the "***PB Option***"). Your PB Option Shares will vest in full on the earlier of the date the Company successfully opens (i) the 50<sup>th</sup> clinical site or (ii) 50% of the total clinical sites, in each case, for its planned Phase 2 trial of PIPE-791 in IPF, based on your continued services to the Company through the satisfaction of the first to occur of the performance conditions and based on such performance condition being satisfied within two years of your Start Date. The Company intends to grant the PB Option as an "inducement grant" (within the meaning of Nasdaq Marketplace Rule 5635(c)(4)). While the PB Option will be granted outside of the Company's Plan, the other terms and conditions applicable to the PB Option will be consistent with those applicable to options granted under the Plan, as described in the applicable Notice of Performance-Based Stock Option Grant and Performance-Based Stock Option Agreement. The Committee agrees to grant your PB Option on your Start Date.

**2026 Equity Award:** You will be eligible to receive an equity award in fiscal 2026 at the same time as the Committee grants equity awards to the Company's other executive officers. The equity award you receive in fiscal 2026 will be based on the same market data and methodology used for the Company's other executive officers, and will not be pro-rated based on your partial year of service during fiscal 2025.

**Indemnification Agreement:** As an officer of the Company, you and the Company will enter into the Company's standard form of Indemnification Agreement, in substantially the form attached hereto as <u>Exhibit A</u> (the "***Indemnification Agreement***").

**Executive Severance Plan:** You will be eligible to participate in the Company's Executive Severance Plan, attached hereto as <u>Exhibit B</u> (the "***Executive Severance Plan***"), as a Tier 2 Participant, which offers severance benefits and accelerated vesting of your Option Shares. A copy of your Participation Agreement is attached hereto as <u>Exhibit C</u> (the "***Participation Agreement***"). The term "Resignation for Good Reason" under the Executive Severance Plan includes the following condition that comes into existence without your consent "(v) relocation of the Participant's principal place of employment with the Company to a location that requires an increase in Participant's one-way driving distance by more than 35 miles; provided that if such Participant's principal place of employment with the Company is his or her personal residence, this clause (v) shall not apply." For purposes of clarity, the Company agrees that this condition exists if the Company or any successor or affiliate company, without your consent, prohibits you from working remotely and requires you to primarily perform your duties at a location more than 35 miles from your personal residence.

------

**Employee Benefits:** As a full-time employee, you will be eligible to participate in the Company's flexible vacation policy. You also will be eligible to participate in the Company's health and other benefit programs pursuant to their respective terms, as they may be adopted and amended from time to time by the Company and as made available to similarly situated executives of the Company. You will also be eligible to participate in the equity and cash incentive programs established by the Committee from time to time and in its sole discretion.

**Reimbursement:** The Company will reimburse you for reasonable travel, food or other expenses incurred by you in accordance with the Company's reimbursement policy. In addition, on the Company's first payroll after your Start Date, the Company will reimburse you for up to $10,000 in legal fees you incurred to negotiate this offer letter.

Your employment with the Company is at-will. This means it is not for any specific period of time and can be terminated by you at any time for any reason. Likewise, the Company can terminate the employment relationship at any time, with or without cause or advance notice. You understand that the at-will employment relationship will remain in effect throughout your employment with the Company and cannot be modified by any oral, implied or written agreement.

The Company expects that, during and after the term of your employment, you will not disclose to third parties, utilize for your own benefit, or otherwise make use of any of the Company's trade secrets or other confidential or proprietary information concerning the Company, except to the extent necessary to carry out your obligations to the Company. As a condition to your employment, you must sign the Company's standard Proprietary Information and Inventions Agreement, in substantially the form attached hereto as <u>Exhibit D</u> (the "***Proprietary Information and Inventions Agreement***"). Further, you and the Company shall enter into the Company's standard Mutual Arbitration Agreement, in substantially the form attached hereto as <u>Exhibit E</u> (the "***Mutual Arbitration Agreement***").

A copy of this offer letter will be included with your new hire orientation paperwork for you to sign and return to the Company in order for your employment relationship with the Company to be effective. In addition, you agree to abide by and comply with the Company's policies that are in force from time to time and applicable to similarly situated employees.

During the term of your employment, you shall devote your full business energies, interest, abilities and productive time to the proper and efficient performance of your duties with the Company; provided, however, that you may (i) participate in charitable, community or civic activities after your Start Date, (ii) continue to provide services to the entities listed on <u>Schedule A</u> attached hereto for a period of six months after your start date and (iii) engage in board service or in other professional activities after your Start Date that you disclose in writing in advance to, and are approved by, the Chief Executive Officer in writing.

------

By signing this offer letter, you also represent and warrant to the Company that (i) your acceptance of this offer and your employment with the Company does not and will not violate or otherwise conflict with any other agreement to which you may be a party; and (ii) you do not have any legal obligations towards, or are restricted by any legal obligations (such as confidentiality or non-compete obligations) of, your former or current employer, which could prevent you from working for the Company. All forms of compensation referred to in this offer letter are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.

In making this offer, we are relying on the information that you have provided to us about your background and experience, including any information provided to us in any employment application that you may have submitted to us. You confirm, by signing this offer letter, the truth and accuracy of all statements that you have made and information that you have provided to the Company. In addition, this offer of employment is contingent upon appropriate proof of eligibility to work in the United States (please bring confirming information with you on your first day of work).

This offer letter will be governed by and construed in accordance with the laws of the State of California without regard to the conflicts of law provisions thereof.

The terms of this offer letter shall become effective only upon execution of this offer letter by both you and the Company. Other than the Indemnification Agreement, Executive Severance Plan, Participation Agreement, Proprietary Information and Inventions Agreement and Mutual Arbitration Agreement, this offer letter constitutes the entire agreement between you and the Company regarding your employment. All prior or contemporaneous agreements, promises, communications and/or understandings between you and the Company, whether written or oral, are superseded by this offer letter. If the above terms and conditions are acceptable to you, then please countersign this offer letter where indicated below and return it to us.

This offer expires within ten (10) calendar days of the date of this offer letter unless the Company receives a signed copy within that period.

---

| |
|:---|
| Sincerely, |
| Contineum Therapeutics, Inc. |
| /s/ Carmine Stengone |
| Carmine Stengone |
| President and Chief Executive Officer |

---

------

I agree to and accept employment with Contineum Therapeutics, Inc. on the terms and conditions set forth in this offer letter. I understand and agree that my employment with the Company is at-will.

---

| | |
|:---|:---|
| Dated: April 3, 2025 | /s/ Tim Watkins |
|  | Tim Watkins |

---

## Exhibit 10.2

**Exhibit 10.2**

![companylogo.jpg](companylogo.jpg)

April 17, 2025

**Via Email**

Timothy Watkins, MD MSc<br> watkins.tr@gmail.com

**Re: Amendment to Offer Letter**

Dear Tim:

The following memorializes the amendment (the "***Amendment***") to the terms of the offer letter between you and Contineum Therapeutics, Inc. (the "***Company***"), dated April 3, 2025 (the "***Offer Letter***"). Unless this Amendment specifically states that it amends a term in the Offer Letter, the terms of the Offer Letter shall remain binding and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The first paragraph of the Offer Letter shall be amended, superseded and replaced in its entirety as follows:

"Contineum Therapeutics, Inc. (the "***Company***") is pleased to offer you the position of Chief Medical Officer and Head of Development. You will report directly to the Company's Chief Executive Officer."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The second paragraph of the Offer Letter shall be amended, superseded and replaced in its entirety as follows:

"This letter is our formal offer of employment and requires your written acceptance. If our offer is acceptable to you, please countersign this offer letter below and return the signed copy to me. Your employment with the Company will then commence as of April 28, 2025 (the "***Start Date***")."

This Amendment together with the Offer letter (and the Indemnification Agreement, Executive Severance Plan, Participation Agreement, Proprietary Information and Inventions Agreement and Mutual Arbitration Agreement referenced as part of the Offer Letter) constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company, and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company.

This Amendment will be governed by and construed in accordance with the laws of the State of California without regard to the conflicts of law provisions thereof. This Amendment can only be amended or modified in a written agreement signed by both you and duly authorized officer of the Company (other than you).

------

If the above terms and conditions are acceptable to you, then please countersign this Amendment where indicated below and return it to us.

---

| |
|:---|
| Sincerely, |
| Contineum Therapeutics, Inc. |
| /s/ Carmine Stengone |
| Carmine Stengone |
| President and Chief Executive Officer |

---

I have read and accept this Amendment to my Offer Letter:

---

| |
|:---|
| /s/ Tim Watkins |
| Tim Watkins |
| Dated: April 18, 2025 |

---

------

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Carmine Stengone, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of Contineum Therapeutics, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
|  | **Contineum Therapeutics, Inc.** | **Contineum Therapeutics, Inc.** |
| August 5, 2025 | By:  | /s/ Carmine Stengone |
|  |  | Carmine Stengone |
|  |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO**

**RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Peter Slover, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report on Form 10-Q of Contineum Therapeutics, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
|  | **Contineum Therapeutics, Inc.** | **Contineum Therapeutics, Inc.** |
| August 5, 2025 | By: | /s/ Peter Slover |
|  |  | Peter Slover |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer and Principal Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Contineum Therapeutics, Inc. (the "Company") on Form 10-Q for the period ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Carmine Stengone, President and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
|  | **Contineum Therapeutics, Inc.** | **Contineum Therapeutics, Inc.** |
| August 5, 2025 | By:  | /s/ Carmine Stengone |
|  |  | Carmine Stengone |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Contineum Therapeutics, Inc. (the "Company") on Form 10-Q for the period ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Peter Slover, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
|  | **Contineum Therapeutics, Inc.** | **Contineum Therapeutics, Inc.** |
| August 5, 2025 | By: | /s/ Peter Slover |
|  |  | Peter Slover |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer and Principal Accounting Officer) |

---