# EDGAR Filing Document

**Accession Number:** 0000318306
**File Stem:** 0001493152-26-022614
**Filing Date:** 2026-5
**Character Count:** 143919
**Document Hash:** 520040ab2fb1bdc33626c5373233fb0e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-022614.hdr.sgml**: 20260513

**ACCESSION NUMBER**: 0001493152-26-022614

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 84

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260513

**DATE AS OF CHANGE**: 20260513

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ABEONA THERAPEUTICS INC.
- **CENTRAL INDEX KEY:** 0000318306
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **ORGANIZATION NAME:** 03 Life Sciences
- **EIN:** 830221517
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-15771
- **FILM NUMBER:** 26970957

**BUSINESS ADDRESS:**
- **STREET 1:** 6555 CARNEGIE AVE, 4TH FLOOR
- **CITY:** CLEVELAND
- **STATE:** OH
- **ZIP:** 44103
- **BUSINESS PHONE:** 646-813-4701

**MAIL ADDRESS:**
- **STREET 1:** 6555 CARNEGIE AVE, 4TH FLOOR
- **CITY:** CLEVELAND
- **STATE:** OH
- **ZIP:** 44103

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PLASMATECH BIOPHARMACEUTICALS INC
- **DATE OF NAME CHANGE:** 20140922

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ACCESS PHARMACEUTICALS INC
- **DATE OF NAME CHANGE:** 19960209

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CHEMEX PHARMACEUTICALS INC
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 10-Q**

(Mark one)

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

**For the quarterly period ended March 31, 2026**

**or**

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

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;** 

Commission file number **001-15771**

**<u>ABEONA THERAPEUTICS INC.</u>**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **83-0221517** |
| (State or Other Jurisdiction of<br> incorporation or Organization) | (I.R.S. Employer<br> Identification No.) |

---

**<u>6555 Carnegie Avenue</u>** **<u>, 4<sup>th</sup>Floor</u>**

**<u>Cleveland, OH 44103</u>**

(Address of principal executive offices, zip code)

**<u>(646) 813-4701</u>**

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.01 par value | ABEO | Nasdaq Capital Market |

---

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.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> 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 ☒

The number of shares outstanding of the registrant's common stock as of May 8, 2026 was 56,995,144 shares.

**ABEONA THERAPEUTICS INC.**

**Form 10-Q**

**For the Quarter Ended March 31, 2026**

**<u>INDEX</u>**

---

| | | |
|:---|:---|:---|
|  |  | Page No. |
| [PART I - FINANCIAL INFORMATION](#ta_001) | [PART I - FINANCIAL INFORMATION](#ta_001) |  |
| Item 1. | [Financial Statements:](#ta_002) | 3 |
|  | [Unaudited Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025](#ta_003) | 3 |
|  | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2026 and 2025](#ta_004) | 4 |
|  | [Unaudited Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2026 and 2025](#ta_005) | 5 |
|  | [Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025](#ta_006) | 6 |
|  | [Notes to Unaudited Condensed Consolidated Financial Statements](#ta_007) | 7 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ta_008) | 29 |
| Item 3. | [Quantitative and Qualitative Disclosures About Market Risk](#ta_009) | 34 |
| Item 4. | [Controls and Procedures](#ta_010) | 34 |
| [PART II - OTHER INFORMATION](#ta_011) | [PART II - OTHER INFORMATION](#ta_011) |  |
| Item 1. | [Legal Proceedings](#ta_012) | 35 |
| Item 1A. | [Risk Factors](#ta_013) | 35 |
| Item 5. | [Other Information](#ta_014) | 35 |
| Item 6. | [Exhibits](#ta_015) | 36 |
| [SIGNATURES](#ta_016) | [SIGNATURES](#ta_016) | 37 |

---

**FORWARD-LOOKING STATEMENTS**

*This Quarterly Report on Form 10-Q (including information incorporated by reference) contains statements that express management's opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, "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. Words such as "expects," "anticipates," "intends," "plans," "believes," "could," "would," "seeks," "estimates," and variations of such words and similar expressions, and the negatives thereof, are intended to identify such forward-looking statements. Such "forward-looking statements" speak only as of the date made and are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by management that are difficult to predict. Various factors, some of which are beyond the Company's control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date of this report, except as may otherwise be required by the federal securities laws.*

*Forward-looking statements necessarily involve risks and uncertainties, and our actual results could differ materially from those anticipated in forward-looking statements due to a number of factors. These statements include statements about: our ability to successfully commercialize ZEVASKYN*<sup>®</sup> *and generate future revenue; the deprioritization of our AAV-based ophthalmology programs; the development of ABO-701; our pipeline of product candidates, including the achievement of or expected timing, progress and results of clinical development, clinical trials and potential regulatory approvals; our estimates regarding expenses, capital requirements, and needs for additional financing; anticipated losses and negative cash flows; the potential effects on the relative equity ownership of existing investors resulting from any future sales of equity securities; the potential effects of fundraising activities involving collaborations, strategic alliances, or license arrangements with third parties; our intended use of cash; our intellectual property position and our ability to obtain, maintain and enforce intellectual property protection and exclusivity for our proprietary assets; and future economic conditions or performance.*

*Important factors that could affect performance and cause results to differ materially from management's expectations are described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated from time to time in the Company's SEC filings, including this Quarterly Report on Form 10-Q. These factors include: our ability to maintain existing and obtain additional regulatory approvals of ZEVASKYN*<sup>®</sup> *and any future product candidates; our ability to successfully commercialize and market ZEVASKYN*<sup>®</sup> *and any future product candidates, if approved, and the timing of any commercialization and marketing efforts; our ability to manufacture sufficient batches of ZEVASKYN<sup>®</sup> to meet demand; our ability to activate additional qualified treatment centers to administer ZEVASKYN<sup>®</sup> on patients; our ability submit an investigational new drug application for ABO-701 and enroll patients in new clinical trials; our ability to access our existing at-the-market sale agreement; our ability to access additional financial resources and/or our financial flexibility to reduce operating expenses if required; our ability to obtain additional equity funding from current or new stockholders; the potential impact of unpredicted changes in the structure and/or administration of the United States government or its agencies; our ability to out-license technology and/or other assets, deferring and/or eliminating planned expenditures, restructuring operations and/or reducing headcount, and sales of assets; the dilutive effect that raising additional funds by selling additional equity securities would have on the relative equity ownership of our existing investors, including under our existing at-the-market sale agreement; the outcome of any interactions with the FDA or other regulatory agencies relating to any of our products or product candidates; our ability to continue to secure and maintain regulatory designations for our product candidates; our ability to develop manufacturing capabilities compliant with current good manufacturing practices for our product candidates; our ability to manufacture cell and gene therapy products and produce an adequate product supply to support clinical trials and potentially future commercialization; the rate and degree of market acceptance of our product candidates for any indication once approved; our ability to meet our obligations contained in license agreements to which we are party; and macroeconomic uncertainty resulting from changes to U.S. trade policy, including current or future tariffs or other trade restrictions.*

*This Quarterly Report on Form 10-Q includes our trademarks, trade names and service marks, such as "ZEVASKYN*<sup>®</sup>*" and "AIM™," which are protected under applicable intellectual property laws and are the property of Abeona Therapeutics Inc. or its subsidiaries. Solely for convenience, trademarks, trade names and service marks referred to in this report appear without the® and™ symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks, trade names and service marks. We do not intend our use or display of other parties' trademarks, trade names or service marks to imply, and such use or display should not be construed to imply a relationship with, or endorsement or sponsorship of us by, these other parties.*

**PART I – FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**Abeona Therapeutics Inc. and Subsidiaries**

Condensed Consolidated Balance Sheets

($ in thousands, except share and per share amounts)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $61374 | $78437 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 106897 | 112967 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 6200 | 6147 |
| &nbsp;&nbsp;&nbsp;Inventory | 6054 | 5493 |
| &nbsp;&nbsp;&nbsp;Other receivables | 509 | 568 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1951 | 1294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 182985 | 204906 |
| Property and equipment, net | 10564 | 9921 |
| Operating lease right-of-use assets | 4118 | 3962 |
| Other assets | 827 | 781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $198494 | $219570 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $4071 | $7889 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 5368 | 8467 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 13333 | 12222 |
| &nbsp;&nbsp;&nbsp;Current portion of operating lease liability | 1272 | 864 |
| &nbsp;&nbsp;&nbsp;Payable to licensor | 7000 |  |
| &nbsp;&nbsp;&nbsp;Accrued taxes and other current liabilities | 2 | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 31046 | 29570 |
| Long-term operating lease liabilities | 3814 | 4069 |
| Long-term debt | 4754 | 7813 |
| Deferred revenue | 425 |  |
| Warrant liabilities | 13516 | 18902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 53555 | 60354 |
| Commitments and contingencies |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock - $0.01 par value; authorized 2,000,000 shares; No shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Common stock - $0.01 par value; authorized 200,000,000 shares; 56,866,381 and 55,043,413 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 568 | 550 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 903542 | 900603 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (759150) | (742075) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive (loss) income | (21) | 138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 144939 | 159216 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $198494 | $219570 |

---

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

**Abeona Therapeutics Inc. and Subsidiaries**

Condensed Consolidated Statements of Operations and Comprehensive Loss

($ in thousands, except share and per share amounts)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2025** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;Product revenue, net | $8720 | $— |
| Costs and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Cost of sales | 2696 |  |
| &nbsp;&nbsp;&nbsp;Research and development | 9555 | 9941 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 19502 | 9786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 31753 | 19727 |
| Loss from operations | (23033) | (19727) |
| &nbsp;&nbsp;&nbsp;Interest income | 1354 | 1310 |
| &nbsp;&nbsp;&nbsp;Interest expense | (830) | (998) |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | 5386 | 7245 |
| &nbsp;&nbsp;&nbsp;Other income, net | 50 | 141 |
| Loss before income taxes | (17073) | (12029) |
| &nbsp;&nbsp;&nbsp;Income tax expense | 2 |  |
| Net loss | $(17075) | $(12029) |
| Basic and diluted loss per common share | $(0.30) | $(0.24) |
| Weighted average number of common shares outstanding - basic and diluted | 56620920 | 49778801 |
| Other comprehensive loss: |  |  |
| &nbsp;&nbsp;&nbsp;Change in unrealized losses related to available-for-sale debt securities | (159) | (75) |
| Comprehensive loss | $(17234) | $(12104) |

---

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

**Abeona Therapeutics Inc. and Subsidiaries**

Condensed Consolidated Statements of Stockholders' Equity

($ in thousands, except share amounts)

(Unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** |<br>**Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income (Loss)** |<br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balance at December 31, 2025** | 55043413 | $550 | $900603 | $(742075) | $138 | $159216 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  | 2957 |  |  | 2957 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock in connection with restricted share awards | 1822968 | 18 | (18) |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (17075) |  | (17075) |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  |  | (159) | (159) |
| **Balance at March 31, 2026** | 56866381 | $568 | $903542 | $(759150) | $(21) | $144939 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** |<br>**Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Accumulated**<br>**Other**<br>**Comprehensive**<br>**Income (Loss)** |<br>**Total**<br>**Stockholders'**<br>**Equity** |
| **Balance at December 31, 2024** | 45644091 | $457 | $856824 | $(813258) | $8 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44031 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  | 2701 |  |  | 2701 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock in connection with restricted share awards, net of cancellations and shares settled for tax withholding settlement | 1996797 | 20 | (51) |  |  | (31) |
| &nbsp;&nbsp;&nbsp;Issuance of common stock, net of offering costs under open market sale agreement (ATM) | 1312283 | 13 | 6786 |  |  | 6799 |
| &nbsp;&nbsp;&nbsp;Net loss |  |  |  | (12029) |  | (12029) |
| &nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  |  | (75) | (75) |
| **Balance at March 31, 2025** | 48953171 | $490 | $866260 | $(825287) | $(67) | $41396 |

---

**Abeona Therapeutics Inc. and Subsidiaries**

Condensed Consolidated Statements of Cash Flows

($ in thousands)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2025** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(17075) | $(12029) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 690 | 534 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 2957 | 2701 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (5386) | (7245) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion and interest on short-term investments | 13 | 455 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right-of-use lease assets | 179 | 281 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest | 274 | 323 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (53) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (561) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 59 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (657) | (868) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (46) | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (7315) | (2378) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (182) | (362) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in payable to licensor | 7000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 425 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued taxes and other current liabilities | (126) | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (19804) | (18402) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (935) | (1401) |
| &nbsp;&nbsp;&nbsp;Purchases of short-term investments | (19000) | (48645) |
| &nbsp;&nbsp;&nbsp;Proceeds from maturities of short-term investments | 24898 | 54259 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 4963 | 4213 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from ATM sales of common stock, net of issuance costs |  | 6799 |
| &nbsp;&nbsp;&nbsp;Payments related to net settlement of restricted share awards |  | (31) |
| &nbsp;&nbsp;&nbsp;Payments of long-term debt | (2222) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | (2222) | 6768 |
| Net decrease in cash, cash equivalents and restricted cash | (17063) | (7421) |
| Cash, cash equivalents and restricted cash at beginning of period | 78437 | 23695 |
| Cash, cash equivalents and restricted cash at end of period | $61374 | $16274 |
| **Supplemental cash flow information:** |  |  |
| Cash and cash equivalents | $61374 | $15936 |
| Restricted cash |  | 338 |
| &nbsp;&nbsp;&nbsp;Total cash, cash equivalents and restricted cash | $61374 | $16274 |
| **Supplemental non-cash flow information:** |  |  |
| Right-of-use asset obtained in exchange for new operating lease liabilities | $335 | $968 |
| Changes in accrued property and equipment | $333 | $1179 |
| Cash paid for interest | $555 | $675 |

---

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

**ABEONA THERAPEUTICS INC. AND SUBSIDIARIES**

Notes to Unaudited Condensed Consolidated Financial Statements

**NOTE 1 – NATURE OF OPERATIONS**

**Background**

Abeona Therapeutics Inc. (together with the Company's subsidiaries, "Abeona" or the "Company"), a Delaware corporation, is a commercial-stage biopharmaceutical company developing cell and gene therapies for life-threatening diseases. On April 28, 2025, the U.S. Food and Drug Administration ("FDA") approved ZEVASKYN<sup>®</sup> (prademagene zamikeracel) gene-modified cellular sheets, also known as ZEVASKYN<sup>®</sup>, as the first and only autologous cell-based gene therapy for the treatment of wounds in adult and pediatric patients with recessive dystrophic epidermolysis bullosa ("RDEB"), a serious and debilitating genetic skin disease. The Company's development portfolio also features ABO-701, a recently licensed, radically novel engineered T-cell therapy, targeting Prostate-Specific Membrane Antigen ("PSMA") to treat prostate cancer.

**Liquidity**

In accordance with Accounting Standards Codification ("ASC") 205-40, *Going Concern*, the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date the accompanying unaudited interim condensed consolidated financial statements were issued.

As a biopharmaceutical organization, the Company has devoted substantially all of its resources since inception to research and development activities for ZEVASKYN<sup>®</sup> and other product candidates, business planning, raising capital, establishing its intellectual property portfolio, acquiring or discovering product candidates, and providing selling, general and administrative support for these operations.

As a result, the Company has incurred significant operating losses and negative cash flows from operations since its inception, other than the year ended December 31, 2025, with the gain on sale of its Priority Review Voucher ("PRV"). The Company anticipates such losses and negative cash flows will continue until ZEVASKYN<sup>®</sup> can provide sufficient revenue for the Company to be profitable and generate positive cash flows. Through March 31, 2026, the Company has relied primarily on its sale of equity securities, its proceeds from the sale of its PRV, its proceeds from credit facilities, and strategic collaboration arrangements to finance its operations. The Company expects that its capital resources will be sufficient to fund its operating expenses and capital expenditure requirements for at least the next 12 months from the issuance date of these condensed consolidated financial statements. The Company may need to raise additional capital to fully implement its business plans through the issuance of equity, borrowings, or strategic alliances with partner companies. However, if such financing is not available at adequate levels, the Company would need to reevaluate its operating plans.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

There have been no new or material changes to the significant accounting policies discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, other than those identified below.

**Basis of Presentation**

The Company's unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, except as otherwise disclosed, necessary for the fair presentation of the financial position, results of operations, and changes in financial position for such periods, have been made. These unaudited interim condensed consolidated financial statement results are not necessarily indicative of results to be expected for the full fiscal year or any future period. Certain information that is normally required by U.S. GAAP has been condensed or omitted in accordance with rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). The December 31, 2025 condensed consolidated balance sheet was derived from the audited statements but does not include all disclosures required by U.S. GAAP.

Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 17, 2026.

**Use of Estimates**

The preparation of unaudited interim condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reported period. The Company's significant estimates include, but are not limited to, variable consideration associated with revenue recognition and the determination of the standalone selling price of material rights, fair value of warrant liabilities, the incremental borrowing rate related to the Company's operating leases, stock-based compensation, accrued expenses, impairment of long-lived assets and income taxes. Due to the uncertainty inherent in such estimates, actual results could differ from these estimates and assumptions.

**Accounts Receivable**

Accounts receivable represents amounts arising from product sales and licensing revenue and is recorded net of allowances for prompt payment discounts, returns, and credit losses. The Company estimates an allowance for credit losses by considering factors such as the aging of its accounts receivable, the history of write offs for uncollectible accounts, the credit quality of its significant customers, the current economic environment/macroeconomic trends, supportable forecasts, and other relevant factors. The Company reviews the credit quality of its accounts receivables by monitoring the aging of its accounts receivable, the history of write-offs for uncollectible accounts, the credit quality of its significant customers, the current economic environment/macroeconomic trends, supportable forecasts, and other relevant factors. The Company has no historical write-offs of its accounts receivable, and the Company has determined that an allowance for credit losses is not required as of March 31, 2026.

Accounts receivable, net comprises the following categories (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Product sales | $6200 | $3147 |
| License revenues |  | 3000 |
| &nbsp;&nbsp;&nbsp;Total accounts receivable, net | $6200 | $6147 |

---

Accounts receivable, net from the Company's customers who individually accounted for 10% or more of accounts receivable, net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Customer 1 | 100% | —% |
| Customer 2 | —% | 51.2% |
| Customer 3 | —% | 48.8% |

---

**Other receivables**

Other receivables include employee retention credits, sublease rent receivables and other miscellaneous receivables that are expected to be collected within the next twelve months. As of March 31, 2026 and December 31, 2025, the Company had employee retention credits receivables of $0.4 million and $0.5 million, respectively which was recorded in other receivables and as a component of other income, net in the condensed consolidated statements of operations and comprehensive loss.

**Concentration of Credit Risk and Off-Balance Sheet Risk**

Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents, short-term investments, accounts receivable, net and other receivables. The Company maintains its cash and cash equivalent balances with high-quality financial institutions and, consequently, the Company believes that such funds are subject to minimal credit risk. The Company is exposed to credit risk in the event of default by the financial institutions to the extent amounts recorded on the consolidated balance sheets are in excess of insured limits. The Company has not experienced any credit losses in such accounts and does not believe it is exposed to any significant credit risk on these funds. The Company's investment securities, which primarily consist of U.S. federal agency securities, U.S. treasury securities and certificates of deposit, potentially subject the Company to concentrations of credit risk. The Company has no financial instruments with off-balance sheet risk of loss.

**Inventory and Costs of Sales**

The Company capitalizes inventory costs associated with products when future economic benefit is expected to be realized. These costs consist of raw materials, manufacturing-related costs, personnel costs, facility costs, and other indirect overhead costs. Prior to receiving FDA approval for ZEVASKYN<sup>®</sup> in April 2025, the Company expensed costs related to inventory for clinical and pre-commercial purposes directly to research and development expense. Following the FDA's approval of ZEVASKYN<sup>®</sup>, the Company began capitalizing inventory related to commercialized products held for sale, in-process of production for sale, and raw materials to be used in the manufacturing of inventory.

The Company values its inventory at the lower-of-cost and net realizable value, on a first-in, first-out basis. The Company adjusts the net realizable value of any excess, obsolete or unsalable inventory in the period in which they are identified. Such impairment charges, should they occur, are recorded within cost of sales.

During the three months ended March 31, 2026, cost of sales includes inventory, period costs related to overhead and manufacturing costs of ZEVASKYN<sup>®</sup>, and royalties due to our licensor. Prior to receiving FDA approval in April 2025, costs associated with the manufacturing of ZEVASKYN<sup>®</sup> were expensed as research and development costs.

**Credit Losses**

The Company reviews its available-for-sale investments for credit losses on a collective basis by major security type and in line with the Company's investment policy. As of March 31, 2026, the Company's available-for-sale investments were in securities that are issued by the U.S. treasury, U.S. federal agencies and certificates of deposits, are highly rated, and have a history of zero credit losses. The Company reviews the credit quality of its accounts receivables by monitoring the aging of its accounts receivable, the history of write-offs for uncollectible accounts, the credit quality of its significant customers, the current economic environment/macroeconomic trends, supportable forecasts, and other relevant factors. The Company's accounts receivables are with customers that do not have a history of uncollectibility nor a history of significantly aged accounts receivables. As of March 31, 2026, the Company did not recognize a credit loss allowance for its investments or accounts receivable.

**Segments**

The Company determines and presents operating segments based on the information that is internally provided to the Company's chief operating decision maker ("CODM"), its Chief Executive Officer, in accordance with ASC 280, *Segment Reporting*. The Company has determined that it operates in a single business segment, which is a commercial-stage biopharmaceutical company developing cell and gene therapies for life-threatening diseases. Refer to Note 14 – Segment Information for further information related to the Company's segment.

**Revenue Recognition**

The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, *Revenue from Contracts with Customers* ("ASC 606"), the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

Product Revenue

The Company generates revenue from sales in the United States of its commercially approved ZEVASKYN<sup>®</sup>. The Company's customers for ZEVASKYN<sup>®</sup> are qualified treatment centers. Revenue from product sales is a single performance obligation recognized at the point in time when the customer obtains control of the product, which is typically upon the completion of a final quality inspection of the product at the qualified treatment center. There is no obligation for the qualified treatment centers to use ZEVASKYN<sup>®</sup>, and the Company has no contractual right to receive payment until the final quality inspection of the product at the qualified treatment centers and transfer of control is completed.

The Company is a party to various commercial arrangements and government programs, which include payor rebates, co-payment assistance and prompt pay discounts, which impact the transaction price and represent forms of variable consideration. Revenue from product sales is reduced at the time of recognition for these forms of variable consideration. The Company's contracts can include the right to receive an outcomes-based rebate and a subsequent treatment discount of ZEVASKYN<sup>®</sup> under certain conditions. The Company has determined that the rebate and discount create a material right and allocates transaction consideration to ZEVASKYN<sup>®</sup> and the material right on a relative standalone selling price basis. The standalone selling price for ZEVASKYN<sup>®</sup> is the wholesale acquisition cost. The standalone selling price for the material right is determined by quantifying the discount a customer would receive upon exercise of the option adjusting for the likelihood the option will be exercised. Transaction consideration allocated to the material right is deferred and recognized when either (a) the subsequent purchase of ZEVASKYN<sup>®</sup> occurs, or (b) the time period during which a subsequent purchase of ZEVASKYN<sup>®</sup> could be made, expires. The Company deferred $0.4 million and nil for the three months ended March 31, 2026 and 2025, respectively.

License and other revenues

The Company enters into license agreements that are within the scope of ASC 606, under which it may exclusively license rights to research, develop, manufacture and commercialize its product candidates to third parties. The terms of these arrangements typically include payment to the Company of one or more of the following: non-refundable, upfront license fees; reimbursement of certain costs; customer option exercise fees; development, regulatory and commercial milestone payments; and royalties on net sales of licensed products.

If the license to the Company's intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue from non-refundable, upfront fees allocated to the license when the license is transferred to the customer and the customer is able to use and benefit from the license. For licenses that are combined with other performance obligations, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the measure of performance and related revenue recognition. The measure of progress, and thereby periods over which revenue should be recognized, are subject to estimates by management and may change over the course of the research and development and licensing agreement. Such a change could have a material impact on the amount of revenue the Company records in future periods.

Milestone Payments

At the inception of each arrangement that includes research or development milestone payments, the Company evaluates whether the milestones are considered probable of being achieved and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant cumulative revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the control of the Company or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The Company evaluates factors such as scientific, clinical, regulatory, commercial, and other risks that must be overcome to achieve the particular milestone in making this assessment. There is considerable judgment involved in determining whether it is probable that a significant cumulative revenue reversal would not occur. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of all milestones subject to constraint and, if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in the period of adjustment.

Collaborative Arrangements

The Company analyzes its collaboration arrangements to assess whether such arrangements involve joint operating activities performed by parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities and therefore within the scope of ASC 808, *Collaborative Arrangements* ("ASC 808"). This assessment is performed throughout the life of the arrangement based on changes in the responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple elements, the Company first determines which elements of the collaboration are deemed to be within the scope of ASC 808 and which elements of the collaboration are more reflective of a vendor-customer relationship and therefore within the scope of ASC 606. For elements of collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate recognition method is determined and applied consistently, generally by analogy to ASC 606. Amounts that are owed to collaboration partners are recognized as an offset to collaboration revenue as such amounts are incurred by the collaboration partner. For those elements of the arrangement that are accounted for pursuant to ASC 606, the Company applies the five-step model described above under ASC 606.

**Royalties**

The Company has license agreements with various third parties. Under these agreements, the Company is obligated to pay royalty payments based on a percentage of net sales or sublicence revenues. Royalties are included in either accounts payable or accrued expenses in the condensed consolidated balance sheets. See Note 13 – License/Supplier Agreements for details of the Company's license agreements and resulting royalties recognized.

**Net Loss Per Share**

Basic and diluted net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the period. The weighted average number of shares of common stock includes the weighted average effect of outstanding pre-funded warrants for the purchase of shares of common stock for which the remaining unfunded exercise price is $0.0001 or less per share. When the Company has a net loss during the period, the Company does not include the potential impact of dilutive securities in diluted net loss per share, as the impact of these items is anti-dilutive. Potential dilutive securities result from outstanding restricted stock, stock options, conversion features of loan agreements, and stock purchase warrants.

The following table sets forth the potential securities that could potentially dilute basic loss per share in the future that were not included in the computation of diluted net loss per share because to do so would have been anti-dilutive for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2025** |
| Shares of common stock issuable upon exercise of stock options | 174820 | 176179 |
| Shares of common stock underlying restricted stock | 5090725 | 5250307 |
| Shares of common stock issuable upon exercise of conversion feature of loan agreement | 614251 | 614251 |
| Shares of common stock issuable upon exercise of warrants | 8139734 | 9987560 |
| &nbsp;&nbsp;&nbsp;Total | 14019530 | 16028297 |

---

**Recently Issued Accounting Pronouncements**

In November 2024, the Financial Accounting Standards Board ("FASB") issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): *Disaggregation of Income Statement Expenses*. The amendments in ASU 2024-03 address investor requests for more detailed expense information and require additional disaggregated disclosures in the notes to financial statements for certain categories of expenses that are included on the face of the income statement. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-07, *Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract.* The guidance in ASU 2025-07 refines the scope of derivative accounting under ASC 815, *Derivatives and Hed*ging ("ASC 815") by expanding an existing scope exception to exclude certain non-exchange traded contracts with underlyings based on the operations or activities of one of the contract parties from derivative classification. The ASU also provides guidance under Topic 606 on the accounting for share-based noncash consideration received from a customer in a revenue contract, including measurement and timing considerations. ASU 2025-07 is effective for annual and interim periods beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2025-07.

In December 2025, the FASB issued ASU 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements.* This standard clarifies current interim reporting requirements on Topic 270 and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This standard will be effective for fiscal years beginning after December 15, 2027, with the option to apply it retrospectively. Early adoption is allowed. Currently, the Company is assessing the potential impact of this guidance on its consolidated financial statement disclosures.

**NOTE 3 – REVENUE**

Revenue comprises the following categories (in thousands):

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2025** |
| Product revenue, net | $8720 | $— |
| License and other revenues |  |  |
| &nbsp;&nbsp;&nbsp;Total revenues | $8720 | $— |

---

**Concentration of credit risk**

The Company's total percentage of revenue was comprised of the following concentrations from its largest customers, based on whose revenue concentration is greater than 10% of total revenue in the periods disclosed below.

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2025** |
| Customer 1 | 100% | —% |

---

**Allowances and discounts**

Revenue from product sales is reduced at the time of recognition for payor rebates, co-payment assistance and prompt pay discounts, which are attributed to various commercial arrangements and government programs. The following table summarizes changes in allowances and discounts for the three months ended March 31, 2026 (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Rebates** | **Prompt Pay** | **Co-payment Assistance** | **Total** |
| Balance at December 31, 2025: | $727 |  |  | $727 |
| &nbsp;&nbsp;&nbsp;Provision | 94 | 142 | 60 | 296 |
| &nbsp;&nbsp;&nbsp;Payments/Credits |  | (48) | (60) | (108) |
| Balance at March 31, 2026 | $821 | 94 |  | $915 |

---

Rebate and co-payment assistance accruals are included in accrued expenses on the condensed consolidated balance sheets. Prompt pay is recorded as an allowance against accounts receivable, net on the condensed consolidated balance sheets. Provision for rebates, prompt pay and other co-payment assistance are recorded as a reduction to product revenue, net on the condensed consolidated statements of operations and comprehensive loss.

**Deferred revenue**

The Company's contracts can include the right to receive an outcomes-based rebate and a subsequent treatment discount of ZEVASKYN<sup>®</sup> under certain conditions. The Company has determined that the rebate and discount create a material right and allocates transaction consideration to ZEVASKYN<sup>®</sup> and the material right on a relative standalone selling price basis. The standalone selling price for ZEVASKYN<sup>®</sup> is the wholesale acquisition cost. The standalone selling price for the material right is determined by quantifying the discount a customer would receive upon exercise of the option adjusting for the likelihood the option will be exercised. Transaction consideration allocated to the material right is deferred and recognized when either (a) the subsequent purchase of ZEVASKYN<sup>®</sup> occurs, or (b) the time period during which a subsequent purchase of ZEVASKYN<sup>®</sup> could be made, expires.

The following table provides a summary of the activity on the deferred revenue (in thousands):

---

| | |
|:---|:---|
| Deferred revenue balance as of December 31, 2025 | $— |
| &nbsp;&nbsp;&nbsp;Additions to deferred revenue during the period | 425 |
| &nbsp;&nbsp;&nbsp;Revenue recognized during the period |  |
| Deferred revenue balance as of March 31, 2026 | $425 |

---

**NOTE 4 – SHORT-TERM INVESTMENTS**

The following table provides a summary of the short-term investments (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Amortized Cost** | **Gross<br> Unrealized<br> Gain** | **Gross<br> Unrealized<br> Loss** | **Fair Value** |
| Available-for-sale, short-term investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. treasury securities | $20043 |  | (5) | $20038 |
| &nbsp;&nbsp;&nbsp;U.S. federal agency securities | 17875 |  | (9) | 17866 |
| &nbsp;&nbsp;&nbsp;Certificates of deposit | 69000 |  | (7) | 68993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale, short-term investments | $106918 |  | (21) | $106897 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Amortized**<br> **Cost** | **Gross**<br> **Unrealized**<br> **Gain** | **Gross**<br> **Unrealized**<br> **Loss** | **Fair Value** |
| Available-for-sale, short-term investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. treasury securities | $25057 | 31 |  | $25088 |
| &nbsp;&nbsp;&nbsp;U.S. federal agency securities | 17772 | 2 |  | 17774 |
| &nbsp;&nbsp;&nbsp;Certificates of deposit | 70000 | 105 |  | 70105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total available-for-sale, short-term investments | $112829 | 138 |  | $112967 |

---

As of March 31, 2026, the available-for-sale securities classified as short-term investments mature in one year or less. The Company carries its available-for-sale securities at fair value in the condensed consolidated balance sheets. Unrealized losses on available-for-sale securities as of March 31, 2026, were not significant and were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. None of the short-term investments have been in a continuous unrealized loss position for more than 12 months. Accordingly, no other-than-temporary impairment was recorded for the three months ended March 31, 2026.

There were no significant realized gains or losses recognized on the sale or maturity of available-for-sale investments during the three months ended March 31, 2026 or 2025.

**NOTE 5 – INVENTORY**

Inventory consists of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Raw materials | $5500 | $5493 |
| Work-in-progress | 554 |  |
| Finished goods |  |  |
| &nbsp;&nbsp;&nbsp;Total inventory | $6054 | $5493 |

---

For the three months ended March 31, 2026 and 2025, there were no inventory write-downs.

**NOTE 6 – PROPERTY AND EQUIPMENT, NET**

Property and equipment, net consists of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Laboratory equipment | $11001 | $10061 |
| Furniture, software and office equipment | 2008 | 1962 |
| Leasehold improvements | 15377 | 15116 |
| Construction-in-progress | 86 |  |
| &nbsp;&nbsp;&nbsp;Total property and equipment, cost | 28472 | 27139 |
| Less: accumulated depreciation | (17908) | (17218) |
| &nbsp;&nbsp;&nbsp;Total property and equipment, net | $10564 | $9921 |

---

Depreciation and amortization on property and equipment was $0.7 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively. The Company capitalized into inventory $0.1 million and nil relating to depreciation associated with manufacturing equipment and production facilities for the three months ended March 31, 2026 and 2025, respectively. The capitalized costs associated are added to inventory and are expensed through cost of sales in the condensed consolidated statement of operations and comprehensive loss upon the commercial sale of ZEVASKYN<sup>®</sup>.

**NOTE 7 – FAIR VALUE MEASUREMENTS**

The Company calculates the fair value of the Company's assets and liabilities that qualify as financial instruments and includes additional information in the notes to the consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of other receivables, prepaid expenses and other current assets, other assets, accounts payable, accrued taxes and accrued expenses approximate their carrying amounts due to the relatively short maturity of these instruments. The estimated fair value of the Loan Agreement (as Defined in Note 10 – Debt) as of March 31, 2026 and December 31, 2025, was $18.7 million and $21.2 million, respectively. Both observable and unobservable inputs were used to determine the fair value of long-term debt, which was classified within the Level 3 category.

U.S. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. This guidance establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

● Level 1 - Quoted prices in active markets for identical assets or liabilities.

● Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

● Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar valuation techniques that use significant unobservable inputs.

The Company has segregated all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below.

The following table provides a summary of financial assets and liabilities measured at fair value on a recurring and non-recurring basis (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Fair Value at**<br> **March 31,**<br> **2026** | **Level 1** | **Level 2** | **Level 3** |
| <u>Recurring Assets</u> |  |  |  |  |
| Cash equivalents |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market funds | $60221 | $60221 | $— | $— |
| &nbsp;&nbsp;&nbsp;Money market deposit account | 182 | 182 |  |  |
| Short-term investments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. treasury securities | 20038 | 20038 |  |  |
| &nbsp;&nbsp;&nbsp;U.S. federal agency securities | 17866 |  | 17866 |  |
| &nbsp;&nbsp;&nbsp;Certificates of deposit | 68993 |  | 68993 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets measured at fair value | $167300 | $80441 | $86859 | $— |
| <u>Liabilities</u> |  |  |  |  |
| Warrant liabilities | $13516 | $— | $— | $13516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities measured at fair value | $13516 | $— | $— | $13516 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Fair Value at<br> December 31,<br> 2025** | **Level 1** | **Level 2** | **Level 3** |
| <u>Recurring Assets</u> |  |  |  |  |
| Cash equivalents |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Money market funds | $73854 | $73854 | $— | $— |
| &nbsp;&nbsp;&nbsp;Money market deposit account | 182 | 182 |  |  |
| Short-term investments |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. treasury securities | 25088 | 25088 |  |  |
| &nbsp;&nbsp;&nbsp;U.S. federal agency securities | 17774 |  | 17774 |  |
| &nbsp;&nbsp;&nbsp;Certificates of deposit | 70105 |  | 70105 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets measured at fair value | $187003 | $99124 | $87879 | $— |
| <u>Liabilities</u> |  |  |  |  |
| Warrant liabilities | $18902 | $— | $— | $18902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities measured at fair value | $18902 | $— | $— | $18902 |

---

**Warrant Liabilities**

As of March 31, 2026 and December 31, 2025, the Company had the following outstanding warrants that are classified as liabilities:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Warrants issued as part of the 2021 public offering, expiration date December 2026, exercise price of $9.75 per share | 1788000 | 1788000 |
| Warrants issued as part of the 2022 Private Placement Offering, expiration date November 2027, exercise price $4.75 per share | 5762053 | 5762503 |
| Warrants issued as part of the 2024 Loan Agreement, expiration date January 2029, exercise price $4.07 per share | 589681 | 589681 |
| Warrants issued as part of the 2024 Loan Agreement Amendment, expiration date July 2030, exercise price $6.07 per share | 16474 | 16474 |

---

The common stock warrants related to the 2021 public offering and the 2022 private placement are not indexed to the Company's own stock and therefore have been classified as liabilities at their estimated fair value. The common stock warrants issued in connection with the Loan Agreement and the Loan Agreement Amendment were determined to be liability classified under ASC 815 as the common stock warrants were not considered indexed to the Company's stock. Changes in the estimated fair value of the warrant liabilities are recorded as changes in fair value of warrant liabilities in the condensed consolidated statement of operations and comprehensive loss.

The following table provides a summary of the activity on the warrant liabilities (in thousands):

---

| | |
|:---|:---|
| Warrant liabilities as of December 31, 2025 | $18902 |
| &nbsp;&nbsp;&nbsp;Issuance of warrants |  |
| &nbsp;&nbsp;&nbsp;Gain recognized in earnings from change in fair value | (5386) |
| Warrant liabilities as of March 31, 2026 | $13516 |

---

The warrant liabilities are valued using significant inputs not observable in the market. Accordingly, the warrant liability is measured at fair value on a recurring basis using unobservable inputs and are classified as Level 3 inputs within the fair value hierarchy. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. The Company's valuation of the common stock warrants utilized the Black-Scholes option-pricing model, which incorporated assumptions and estimates to value the common stock warrants. The Company assessed these assumptions and estimates at the end of each reporting period.

The following table outlines the key inputs for the Black-Scholes option-pricing model:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Common share price | $4.48 | $5.27 |
| Expected term (years) | 0.71 – 4.30 | 0.96 – 4.54 |
| Risk-free interest rate (%) | 3.64% – 3.81% | 3.41% – 3.63% |
| Volatility (%) | 77.10% – 100.00% | 78.97% – 100.00% |
| Expected dividend yield (%) | 0% | 0% |

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**NOTE 8 – ACCRUED EXPENSES**

The following table provides a summary of the components of accrued expenses (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Accrued employee compensation | $2621 | $5636 |
| Accrued contracted services and other | 1926 | 2104 |
| Accrued rebates | 821 | 727 |
| &nbsp;&nbsp;&nbsp;Total accrued expenses | $5368 | $8467 |

---

**NOTE 9 – LEASES**

The Company leases space under operating leases for administrative, manufacturing and laboratory facilities in Cleveland, Ohio. The Company also leases certain office equipment under operating leases, which have a non-cancelable lease term of less than one year and the Company has elected the practical expedient to exclude these short-term leases from the Company's right-of-use assets and lease liabilities.

The following table provides a summary of the Company's operating lease liabilities (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Current operating lease liability | $1272 | $864 |
| Non-current operating lease liability | 3814 | 4069 |
| &nbsp;&nbsp;&nbsp;Total operating lease liability | $5086 | $4933 |

---

Lease costs and rent are reflected in selling, general and administrative expenses and research and development expenses in the condensed consolidated statements of operations and comprehensive loss, as determined by the underlying activities.

The following table provides a summary of the components of lease costs and rent (in thousands):

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2025** |
| Operating lease cost | $281 | $372 |
| Variable lease cost | 182 | 116 |
| Short-term lease cost | 15 | 8 |
| &nbsp;&nbsp;&nbsp;Total operating lease costs | $478 | $496 |

---

Cash paid for amounts included in the measurement of operating lease liabilities was $0.3 million and $0.4 million for the three months ended March 31, 2026 and 2025, respectively.

Future minimum lease payments and obligations, which do not include short-term leases, related to the Company's operating lease liabilities as of March 31, 2026 were as follows (in thousands):

---

| | |
|:---|:---|
| **Future minimum lease payments and obligations** | **Operating Leases** |
| 2026, remainder | $949 |
| 2027 | 1295 |
| 2028 | 1325 |
| 2029 | 1357 |
| 2030 | 1387 |
| &nbsp;&nbsp;&nbsp;Total undiscounted operating lease payments | 6313 |
| &nbsp;&nbsp;&nbsp;Less: imputed interest | 1227 |
| &nbsp;&nbsp;&nbsp;Present value of operating lease liabilities | $5086 |

---

The weighted-average remaining term of the Company's operating leases was 57 months, and the weighted-average discount rate used to measure the present value of the Company's operating lease liabilities was 9.0% as of March 31, 2026.

**NOTE 10 – DEBT**

The following table provides a summary of the Company's debt, net of debt issuance costs and discounts (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31, 2026** | **December 31, 2025** |
| Loan Agreement Principal | $17778 | $20000 |
| Accreted final payment fee | 793 | 711 |
| Unamortized debt issuance costs and discounts | (484) | (676) |
| &nbsp;&nbsp;&nbsp;Total long-term debt | 18087 | 20035 |
| Less: current maturities | 13333 | 12222 |
| &nbsp;&nbsp;&nbsp;Long-term debt, net of current maturities | $4754 | $7813 |

---

**Loan and Security Agreement**

On January 8, 2024 (the "Closing Date"), the Company entered into a Loan and Security Agreement, as supplemented by a Supplement, dated as of January 8, 2024 (collectively, the "Loan Agreement") with Avenue Venture Opportunities Fund, L.P., a Delaware limited partnership, as administrative agent and collateral agent ("Avenue" and the "Agent") and Avenue Venture Opportunities Fund II, L.P., a Delaware limited partnership ("Avenue 2" and, together with Avenue, the "Lenders"). The Loan Agreement provides for senior secured term loans (the "Loans") in an aggregate principal amount up to $50 million, with (i) a committed tranche of $20 million advanced on the Closing Date ("Tranche 1"), (ii) a committed tranche of up to $10 million which may be advanced upon the request of the Company between June 30, 2024 and September 30, 2024, subject to the Company obtaining FDA approval of ZEVASKYN<sup>®</sup> in RDEB, with the issuance of a Priority Review Voucher ("Tranche 2"), and (iii) a discretionary tranche of up to $20 million which may be advanced between March 31, 2025 and March 31, 2026 (the "Discretionary Tranche") provided at the discretion of the Lenders. The Loans are due and payable on July 1, 2027. As of March 31, 2026, there are no available tranches.

The loan principal is repayable in equal monthly installments beginning on February 1, 2026. The Loans bear interest at a rate per annum (subject to increase during an event of default) equal to the greater of (i) the prime rate, as published by the Wall Street Journal from time to time, plus 5.00% and (ii) 11.75%. The stated interest rate and effective interest rate as of March 31, 2026 was 11.75% and 18.42%, respectively.

The Company may, subject to certain parameters, voluntarily prepay the Loans, in whole, at any time. If prepayment occurs after January 8, 2025 and on or before January 8, 2026, the Company is required to pay a fee equal to 2.00% of the principal amount of the Loans; if prepayment occurs after January 8, 2026, the Company is required to pay a fee equal to 1.00% of the principal amount of the Loans. A final payment fee of 5.00% of the principal amount of the funded Tranche 1 Loans, Tranche 2 Loans and Discretionary Tranche Loans is also due upon maturity on July 1, 2027, or any earlier date of prepayment.

The Company's obligations under the Loan Agreement are secured by a pledge of substantially all of the Company's assets. Pursuant to the Loan Agreement, the Company is subject to a financial covenant requiring the Company to maintain at all times $5 million in unrestricted cash. The Loan Agreement also contains affirmative and negative covenants customary for financings of this type that, among other things, limit the ability of the Company and its subsidiaries to (i) incur additional debt, guarantees or liens; (ii) pay dividends; (iii) enter into certain change of control transactions; (iv) sell, transfer, lease, license, or otherwise dispose of certain assets; (v) make certain investments or loans; and (vi) engage in certain transactions with related persons, in each case, subject to certain exceptions. The Loan Agreement also includes events of default customary for financings of this type, in certain cases subject to customary periods to cure, following which the Agent may accelerate all amounts outstanding under the Loans.

Pursuant to the Supplement to the Loan and Security Agreement, Avenue also has the right to convert up to $3 million of the outstanding principal of the Loans into shares of Company common stock (the "Conversion Right") at a price per share equal to 120% of the exercise price of the Warrants (further discussed below) at any time while the Loans are outstanding, subject to certain terms and conditions, including ownership limitations. On September 30, 2024, pursuant to the Loan Agreement, the conversion price was fixed at $4.88 and is considered indexed to the Company's own stock.

In addition, subject to applicable law and specified provisions set forth in the Supplement to the Loan and Security Agreement and solely to the extent permitted under applicable stock exchange rules without requiring stockholder approval, the Lenders may participate in certain equity financing transactions of the Company in an aggregate amount of up to $1 million on the same terms, conditions and pricing offered by the Company to other investors participating in such financing transactions (such right, the "Participation Right"). The Participation Right automatically terminates upon the earliest of (i) July 1, 2027, (ii) such time that the Lenders have purchased $1.0 million of the Company's equity securities in the aggregate pursuant to the Participation Right, and (iii) the repayment in full of all of the obligations under the Loan Agreement.

On the Closing Date and pursuant to the funding of Tranche 1 of the Loan Agreement, the Company issued to each of Avenue and Avenue 2 (collectively, the "Warrant Holders") warrants to purchase up to $480,000 and $1,920,000 of Company common stock, respectively, which is more fully described in Note 11 – Equity below.

The future payment obligations of the principal are as follows as of March 31, 2026 (in thousands):

---

| | |
|:---|:---|
| 2026, remainder | $10000 |
| 2027 | 7778 |
| &nbsp;&nbsp;&nbsp;Total principal | $17778 |

---

**NOTE 11 – EQUITY**

**Preferred Stock**

The aggregate number of authorized shares of the Company's preferred stock is 2,000,000 shares with a par value of one cent ($0.01). There is no preferred stock outstanding as of March 31, 2026 and December 31, 2025.

**Common Stock and Warrants**

Public Offerings

On December 21, 2021, the Company closed an underwritten public offering of 1,788,000 shares of common stock at a public offering price of $9.75 per share and stock purchase warrants to purchase 1,788,000 shares of common stock at an exercise price of $9.75. The net proceeds to the Company were $16.0 million, after deducting $1.5 million of underwriting discounts and commissions and offering expenses payable by the Company. The net proceeds were allocated to the warrant liability as noted below with the remainder of $7.0 million recorded in common stock and additional paid-in capital. In the event of certain fundamental transactions involving the Company, the holders of the stock purchase warrants may require the Company to make a payment based on a Black-Scholes valuation, using specific inputs that are not considered indexed to the Company's stock in accordance with ASC 815. Therefore, the Company accounted for the stock purchase warrants as liabilities, which were recorded at the closing date fair value of $9.0 million which was based on a Black-Scholes option pricing model. The remainder of the proceeds were allocated to common stock issued and recorded as a component of equity.

As of March 31, 2026, there were 1,788,000 stock purchase warrants outstanding related to this public offering. These stock purchase warrants expire on December 21, 2026. During such time as each warrant is outstanding, the holder of the warrant is entitled to participate in any dividends or other distribution of assets to holders of shares of common stock. There was no warrant activity during the three months ended March 31, 2026, other than the change in fair value of the warrants for the stock purchase warrants issued as part of this public offering.

On May 7, 2024, the Company sold 12,285,056 shares of its common stock and in lieu of common stock, pre-funded warrants to purchase 6,142,656 shares of its common stock (the "2024 Pre-Funded Warrants"), for an aggregate purchase price of $75.0 million gross, or $70.2 million net of related costs. The offering price for each share of common stock was $4.07, and the offering price for the 2024 Pre-Funded Warrants was $4.0699, which represents the per share offering price for the Company's common stock less a $0.0001 per share exercise price for each 2024 Pre-Funded Warrant. The 2024 Pre-Funded Warrants are immediately exercisable at a nominal exercise price of $0.0001 per share and may be exercised at any time until the pre-funded warrants are exercised in full. As of March 31, 2026, there were 2,494,181 2024 Pre-Funded Warrants outstanding. The 2024 Pre-Funded Warrants are classified as equity in accordance with ASC 815, given the prefunded warrants are indexed to the Company's own shares of common stock and meet the requirements to be classified in equity. The 2024 Pre-Funded warrants were recorded at their relative fair value at issuance in the stockholders' equity section of the consolidated balance sheet and the 2024 Pre-Funded Warrants are considered outstanding shares in the basic and diluted earnings per share calculation for the three months ended March 31, 2026 given their nominal exercise price.

Open Market Sale Agreement

On August 17, 2018, the Company entered into an open market sale agreement (as amended, the "ATM Agreement") with Jefferies LLC ("Jefferies") pursuant to which, the Company may sell from time to time, through Jefferies, shares of its common stock for an aggregate sales price of up to $75.0 million. Any sales of shares pursuant to this agreement are made under the Company's effective "shelf" registration statement on Form S-3 that is on file with and has been declared effective by the SEC.

The Company sold 1,312,283 shares of its common stock under the ATM Agreement during the three months ended March 31, 2025 resulting in net proceeds of $6.8 million during the three months ended March 31, 2025. There were no sales of common stock under the ATM Agreement during the three months ended March 31, 2026.

Private Placement Offerings

On November 3, 2022, the Company sold 7,065,946 shares of its common stock, and in lieu of shares of common stock, pre-funded warrants exercisable for 543,933 shares of common stock and accompanying warrants to purchase 7,609,879 shares of its common stock to a group of new and existing institutional investors in a private placement. The offering price for each share of common stock and accompanying warrant was $4.60, and the offering price for each pre-funded warrant and accompanying warrant was $4.59, which equaled the offering price per share of the common stock and accompanying warrant, less the $0.01 per share exercise price of each pre-funded warrant. Each accompanying warrant represents the right to purchase one share of the Company's common stock at an exercise price of $4.75 per share of common stock. The pre-funded warrants were exercised in December 2022 and converted to 543,933 shares of common stock. Total shares sold and converted during the year ended December 31, 2022 were 7,609,879 for an aggregate purchase price of $35.0 million gross, or $32.6 million net of related costs of $1.5 million which was expensed to selling, general and administrative expenses and $0.9 million which was recorded as a reduction to additional paid-in-capital. The net proceeds were allocated to the warrant liability as noted below with the remainder of $12.9 million and $0.1 million recorded in additional paid-in capital and common stock, respectively.

In the event of certain fundamental transactions involving the Company, the holders of the stock purchase warrants may require the Company to make a payment based on a Black-Scholes valuation, using specific inputs that are not considered indexed to the Company's stock in accordance with ASC 815. Therefore, the Company is accounting for the stock purchase warrants as liabilities. On November 3, 2022, the stock purchase warrants were recorded at the closing date fair value of $22.0 million which was based on a Black-Scholes option pricing model. The remainder of the proceeds were allocated to common stock issued and recorded as a component of equity.

As of March 31, 2026, there were 5,762,053 warrants outstanding related to this private placement offering. The warrants expire on November 3, 2027. During such time as each warrant is outstanding, the holder of the warrant is entitled to participate in any dividends or other distribution of assets to holders of shares of common stock. There was no warrant activity during the three months ended March 31, 2026, other than the change in fair value of the warrants related to warrants issued as part of this private placement offering.

Direct Placement Offering

On July 6, 2023, the Company sold 3,284,407 shares of its common stock, and in lieu of shares of common stock, pre-funded warrants exercisable for 2,919,140 shares of common stock (the "2023 Pre-Funded Warrants"), to a group of existing institutional investors for an aggregate purchase price of $25.0 million gross, or $23.0 million net of related costs. The offering price for each share of common stock was $4.03, and the offering price for the 2023 Pre-Funded Warrants was $4.0299, which represents the per share offering price for the Company's common stock less a $0.0001 per share exercise price for each such 2023 Pre-Funded Warrant. The 2023 Pre-Funded Warrants are immediately exercisable at a nominal exercise price of $0.0001 per share, may be exercised at any time and do not have an expiration date. As of March 31, 2026, there were 2,619,140 2023 Pre-Funded Warrants outstanding. The 2023 Pre-Funded Warrants are classified as equity in accordance with ASC 815, given the 2023 Pre-Funded Warrants are indexed to the Company's own shares of common stock and meet the requirements to be classified in equity. The 2023 Pre-Funded Warrants were recorded at their relative fair value at issuance in the stockholders' equity section of the consolidated balance sheet and the 2023 Pre-Funded Warrants are considered outstanding shares in the basic and diluted earnings per share calculation for the for the three months ended March 31, 2026 given their nominal exercise price.

Common Stock Warrants related to the Loan and Security Agreement

On January 8, 2024, in connection with entering into the Loan and Security Agreement, the Company issued to the Warrant Holders warrants to purchase up to $0.5 million and $1.9 million worth of shares, respectively, of Company common stock (collectively, the "January Warrants"). The January Warrants expire on January 8, 2029 and upon issuance, had an exercise price per share equal to the lesser of (i) $4.75 and (ii) the price per share of the Company's next bona fide round of equity financing before September 30, 2024 in which the Company sells or issues shares of its common stock, excluding certain excluded issuances as defined in the Supplement. In connection with the underwritten common stock offering consummated on May 7, 2024, and pursuant to the term of the January Warrants, the exercise price of the January Warrants was reduced to $4.07 per share for 589,681 shares. In addition, upon a change of control where the per share price of the Company common stock is less than or equal to two times that of the exercise price, the Warrant Holders would be entitled to receive the shares of common stock underlying the January Warrants without payment of the exercise price. On January 8, 2024, the January Warrants did not include an explicit share limit and the number of shares issuable under the warrant agreements were variable based on the exercise price, therefore, the January Warrants were liability classified based on a Black-Scholes valuation in accordance with ASC 815 and were recorded at the closing date fair value of $0.2 million which was based on a Black-Scholes option pricing model. On September 30, 2024, per the terms of the January Warrants, the exercise price and the number of shares issuable became set at $4.07 per share and 589,681 shares, respectively.

The Warrant Holders may exercise the January Warrants at any time, or from time to time up to and including January 8, 2029, by making a cash payment equal to the exercise price multiplied by the quantity of shares. The Warrant Holders may also exercise the January Warrants on a cashless basis by receiving a net number of shares calculated pursuant to the formula set forth in the January Warrants. The January Warrants are subject to anti-dilution adjustments for stock dividends, stock splits, and reverse stock splits.

On July 18, 2025, in connection with entering into the Loan Agreement Amendment, the Company issued the Lenders warrants to purchase up to an aggregate of 16,474 shares of Company common stock (collectively, the "July 2025 Avenue Warrants"). The July 2025 Avenue Warrants expire on July 18, 2030 and have an exercise price per share equal to $6.07. In the event of certain fundamental transactions involving the Company, the holders of the stock purchase warrants may require the Company to make a payment based on a Black-Scholes valuation, using specific inputs that are not considered indexed to the Company's stock in accordance with ASC 815. Therefore, the Company accounted for the stock purchase warrants as liabilities, which were recorded at the closing date fair value of $0.1 million which was based on a Black-Scholes option pricing model.

**NOTE 12 – STOCK-BASED COMPENSATION**

Prior to May 17, 2023, the Company had previously granted stock options and stock awards under the Abeona Therapeutics Inc. 2015 Equity Incentive Plan (the "2015 Incentive Plan"). As of May 17, 2023, no further grants can be made under the 2015 Incentive Plan. The Company now grants stock options and stock awards under the Abeona Therapeutics Inc. 2023 Equity Incentive Plan (the "2023 Incentive Plan") which was approved by stockholders on May 17, 2023. On April 24, 2024, stockholders approved an amendment to the 2023 Incentive Plan to increase the shares authorized for issuance from 1,700,000 shares to 3,200,000 shares. On December 20, 2024, stockholders approved an additional increase in the shares authorized for issuance under the 2023 Incentive Plan from 3,200,000 shares to 8,400,000 shares. As of March 31, 2026, there were 1,498,405 shares available to be granted under the 2023 Incentive Plan. In addition, in 2023, the Company's board of directors approved various restricted stock awards granted to certain new hires as inducement grants. On October 10, 2023, the Company's board of directors approved the Abeona Therapeutics Inc. 2023 Employment Inducement Equity Incentive Plan (the "Inducement Plan"). As of March 31, 2026, there were 184,426 shares available to be granted under the Inducement Plan.

The following table summarizes stock-based compensation (in thousands):

SCHEDULE OF STOCK BASED COMPENSATION

---

| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2025** |
| Research and development | $223 | $670 |
| Selling, general and administrative | 2734 | 2031 |
| &nbsp;&nbsp;&nbsp;Total stock-based compensation expense | $2957 | $2701 |

---

**Stock Options**

The Company estimates the fair value of each option award on the date of grant using the Black-Scholes option-pricing model. The Company then recognizes the grant date fair value of each option as compensation expense ratably using the straight-line attribution method over the service period (generally the vesting period). The Black-Scholes model incorporates the following assumptions:

● Expected volatility – the Company estimates the volatility of the share price at the date of grant using a "look-back" period which coincides with the expected term, defined below. The Company believes using a "look-back" period which coincides with the expected term is the most appropriate measure for determining expected volatility.

● Expected term – the Company estimates the expected term using the "simplified" method, as outlined in SEC Staff Accounting Bulletin No. 107, "Share-Based Payment."

● Risk-free interest rate – the Company estimates the risk-free interest rate using the U.S. Treasury yield curve for periods equal to the expected term of the options in effect at the time of grant.

● Dividends – the Company uses an expected dividend yield of zero because the Company has not declared nor paid a cash dividend, nor are there any plans to declare a dividend.

The Company did not grant any stock options in the three months ended March 31, 2026 and 2025.

The Company accounts for forfeitures as they occur, which may result in the reversal of compensation costs in subsequent periods as the forfeitures arise.

The following table summarizes stock option activity during the three months ended March 31, 2026.

SCHEDULE OF STOCK OPTION ACTIVITY

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of**<br> **Options** | **Weighted**<br> **Average**<br> **Exercise Price** | **Weighted**<br> **Average**<br> **Remaining**<br> **Contractual**<br> **Term (years)** | **Aggregate**<br> **Intrinsic**<br> **Value**<br> **(in thousands)** |
| Outstanding at December 31, 2025 | 176019 | $38.72 | 4.85 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5 |
| &nbsp;&nbsp;&nbsp;Granted |  | $— |  | $— |
| &nbsp;&nbsp;&nbsp;Cancelled/forfeited | (1199) | $36.67 |  | $— |
| &nbsp;&nbsp;&nbsp;Exercised |  | $— |  | $— |
| Outstanding at March 31, 2026 | 174820 | $38.74 | 4.53 | $2 |
| Exercisable | 174620 | $38.77 | 4.53 | $2 |
| Unvested | 200 | $4.00 | 6.20 | $— |

---

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the underlying options and the fair value of the Company's common stock for those options that had exercise prices lower than the fair value of the Company's common stock. As of March 31, 2026, the total compensation cost related to non-vested option awards not yet recognized was $1,000 with a weighted average remaining vesting period of 0.2 years.

**Restricted Stock**

The following table summarizes restricted stock award activity during the three months ended March 31, 2026:

SCHEDULE OF RESTRICTED STOCK AWARD ACTIVITY

---

| | | |
|:---|:---|:---|
|  | **Number of**<br> **Awards** | **Weighted Average**<br> **Grant Date Fair**<br> **Value Per Unit** |
| Outstanding at December 31, 2025 | 4180981 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.96 |
| &nbsp;&nbsp;&nbsp;Granted | 2044890 | $5.29 |
| &nbsp;&nbsp;&nbsp;Cancelled/forfeited | (221922) | $5.06 |
| &nbsp;&nbsp;&nbsp;Vested | (913224) | $5.26 |
| Outstanding at March 31, 2026 | 5090725 | $5.03 |

---

As of March 31, 2026, there was $20.5 million of total unrecognized compensation expense related to unvested restricted stock awards, which is expected to be recognized over a weighted average vesting period of 2.1 years. The total fair value of restricted stock awards that vested was $4.8 million during the three months ended March 31, 2026.

**NOTE 13 – LICENSE/SUPPLIER AGREEMENTS**

**License and Joint Development Agreement Relating to SIR-T™ Technology for PSMA-Positive Prostate Cancer**

On March 18, 2026, the Company entered into a License and Joint Development Agreement (the "Initial Agreement") with Reverence Enterprises, LLC ("Reverence"), a private biotechnology company based in California. Reverence is a subsidiary of Angeles Therapeutics, Inc.

Under the terms of the Initial Agreement, which covers the first phase of development (inclusive of a Phase 1 Study), Abeona obtained an exclusive license ("License Grant") to develop and commercialize Reverence's synthetic immune receptors ("SIR-T™") for PSMA positive prostate cancer. PSMA SIR-T™ is an autologous adult donor-derived T-cell product. Pursuant to an agreed-upon Scope of Work between the parties, during the term of the Initial Agreement, Abeona has agreed to file an IND with the FDA relating to the PSMA SIR-T™ Product and conduct a Phase 1 Study.

Following the completion of the first Phase 1 Study, Abeona, at its sole discretion, will have 30 days to notify Reverence of its decision whether to proceed with further product development. If Abeona wishes to proceed with further development of the product, Reverence, at its sole discretion, will have 30 days to elect to proceed in negotiating with Abeona either (i) a Joint Development Agreement or (ii) a License Agreement (each a "Subsequent Agreement") governing the further licensing, development, manufacture, distribution and/or commercialization of the PSMA SIR-T™ product. Under the Initial Agreement, the parties agreed to certain payment terms that would be included in any future executed Subsequent Agreement, subject to additional customary terms upon execution. Abeona, at its sole discretion, has the right to decline to enter into any such Subsequent Agreement.

The payment terms of the Initial Agreement include (i) an upfront payment of $7.0 million at contract execution, and (ii) up to $1.0 million of future event-based milestone payments. The event-based milestone payments are based on certain development and regulatory events occurring. As the License Grant relates to in-process research and development and does not have an alternative future use, the upfront payment was expensed as incurred to research and development expense during the three months ended March 31, 2026. The milestone payments will be recognized when the underlying regulatory events are considered probable to occur.

**License Agreement Relating to Recessive Dystrophic Epidermolysis Bullosa (RDEB)**

In 2016, the Company entered into two licensing agreements between the Company and The Board of Trustees of Leland Stanford Junior University ("Stanford") to develop EB-101 (LZRSE-Col7A1 Engineered Autologous Epidermal Sheets (LEAES)) and EB-201 (AAV DJ COL7A1) and to license the invention "Gene Therapy for Recessive Dystrophic EB using Genetically Corrected Autologous Keratinocytes." Under the terms of the licensing agreements, the Company paid an upfront of licensing fees in cash and is subject to annual license maintenance fees. In addition, the Company is subject to the achievement of certain milestones, regulatory approval milestone payments, and royalty payments in the low single digits on annual net sales of the licensed product. Royalty payments are included in cost of sales in the condensed consolidated statement of operations and comprehensive loss.

**License Agreement Relating to Novel AAV Capsids**

In 2016, the Company licensed an international patent family from The University of North Carolina at Chapel Hill ("UNC") covering novel AAV capsids ("AIM™ capsids") that may potentially be used to deliver a wide variety of therapeutic transgenes to human cells to treat genetic diseases. Under the terms of the licensing agreements, the Company paid an upfront licensing fee in cash and is subject to on-going patent expenses incurred in relation to the patents licensed under this agreement and annual license maintenance fees. In addition, the Company is subject to the achievement of certain milestones, regulatory approval milestone payments, and royalty payments in the low single digits on annual net sales of the licensed product.

**License Agreement Relating to CLN1 Disease**

In 2016, the Company licensed from UNC rights to two patent families directed to treating CLN1 disease (also known as infantile Batten disease). Under the terms of the licensing agreements, the Company paid an upfront of licensing fees in cash and is subject to on-going patent expenses incurred in relation to the patents licensed under this agreement and annual license maintenance fees. In addition, the Company is subject to the achievement of certain milestones, regulatory approval milestone payments, and royalty payments in the low single digits on annual net sales of the licensed product. The Company subsequently sublicensed the license to Taysha Gene Therapies ("Taysha"), see detail of the sublicense agreement below. As part of the agreement with UNC, the Company is obligated to pay to UNC a percentage of any sublicense revenue that the Company receives under the agreement. On February 25, 2026, the Company, UNC, and Taysha jointly terminated both the license agreement between Abeona and UNC and the corresponding sublicense agreement between Abeona and Taysha relating to Taysha's development program for TSHA-118 for CLN1 disease.

**License Agreement Relating to Rett Syndrome**

In 2019, the Company licensed rights to one patent family from UNC and two patent families from The University Court of the University of Edinburgh ("U. Edinburgh") and The University Court of the University of Glasgow relating to gene therapy for the treatment of Rett Syndrome. Under the terms of the licensing agreements, the Company paid an upfront of licensing fees in cash and is subject to on-going patent expenses incurred in relation to the patents licensed under this agreement and annual license maintenance fees. In addition, the Company is subject to the achievement of certain milestones, regulatory approval milestone payments, and royalty payments in the low single digits on annual net sales of the licensed product. The Company subsequently sublicensed the license to Taysha, see detail of the sublicense agreement below. As part of the agreement with UNC, the Company is obligated to pay to UNC and U. Edinburgh a percentage of any sublicense revenue that the Company receives under the agreement.

**License Agreement Relating to AAV Capsids**

In 2024, the Company entered into a license agreement with a third party for certain of the Company's AAV capsids. The Company assessed the nature of the promised license to determine whether the license has significant stand-alone functionality and evaluated whether such functionality can be retained without ongoing activities by the Company and determined that the license has significant stand-alone functionality. Furthermore, the Company has no ongoing activities associated with the license to support or maintain the license's utility. Based on this, the Company determined that the pattern of transfer of control of the license to the third party was at a point in time.

The transaction price of the contract includes (i) $0.4 million of fixed consideration, (ii) up to $24.0 million of variable consideration in the form of event-based milestone payments, (iii) up to $45.0 million of variable consideration in the form of sales-based milestone payments, and (iv) low single-digit royalty-based payments based on net sales. The Company is obligated to pay a portion of milestone payments and royalties on net sales received from the third party to UNC. The event-based milestone payments are based on certain development and regulatory events occurring. The Company evaluated whether the milestone conditions have been achieved and if it is probable that a significant cumulative revenue reversal would not occur before recognizing the associated revenue. The Company determined that these milestone payments are not within the Company's control or the licensee's control, such as regulatory approvals, and are not considered probable of being achieved until those approvals are received. Accordingly, the Company has fully constrained the $24.0 million in event-based milestone payments until such time that it is probable that a significant cumulative revenue reversal would not occur. The sales-based milestone payments and other royalty-based payments are based on a level of sales for which the license is deemed to be the predominant item to which the royalties relate. The Company will recognize revenue for these payments at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied or partially satisfied. To date, the Company has not recognized any sales-based or royalty revenue resulting from this licensing arrangement.

**Sublicense and Inventory Purchase Agreements Relating to CLN1 Disease**

In August 2020, the Company entered into sublicense and inventory purchase agreements with Taysha relating to a potential gene therapy for CLN1 disease. Under the sublicense agreement, Taysha received worldwide exclusive rights to intellectual property and know-how relating to the research, development, and manufacture of the potential gene therapy, which the Company had referred to as ABO-202 and which Taysha referred to as TSHA-118. Under the inventory purchase agreement, the Company sold to Taysha certain inventory and other items related to ABO-202/TSHA-118. The Company assessed the nature of the promised license to determine whether the license has significant stand-alone functionality and evaluated whether such functionality could be retained without ongoing activities by the Company and determined that the license has significant stand-alone functionality. Furthermore, the Company has no ongoing activities associated with the license to support or maintain the license's utility. Based on this, the Company determined that the pattern of transfer of control of the license to Taysha was at a point in time.

The transaction price of the contract included (i) $7.0 million of fixed consideration, (ii) up to $26.0 million of variable consideration in the form of event-based milestone payments, (iii) up to $30.0 million of variable consideration in the form of sales-based milestone payments, and (iv) high single-digit royalty-based payments based on net sales. The Company was obligated to pay a portion of milestone payments and royalties on net sales received from Taysha to UNC. The event-based milestone payments were based on certain development and regulatory events occurring. At inception, the Company evaluated whether the milestone conditions had been achieved and if it was probable that a significant cumulative revenue reversal would not occur before recognizing the associated revenue and determined that these milestone payments were not within the Company's control or the licensee's control, such as regulatory approvals, and were not considered probable of being achieved until those approvals were received. Accordingly, at inception, the Company fully constrained the $26.0 million of event-based milestone payments until such time that it is probable that significant cumulative revenue reversal would not occur. The sales-based milestone payments and other royalty-based payments were to have been based on a level of sales for which the license was deemed to be the predominant item to which the royalties relate. The Company would have recognized revenue for these payments at the later of (i) when the related sales occurred, or (ii) when the performance obligation to which some or all of the royalty had been allocated had been satisfied or partially satisfied. To date, the Company has not recognized any sales-based or royalty revenue resulting from this licensing arrangement. On February 25, 2026, the Company, UNC, and Taysha jointly terminated both the license agreement between Abeona and UNC and the corresponding sublicense agreement between Abeona and Taysha relating to Taysha's development program for TSHA-118 for CLN1 disease.

**Sublicense Agreement Relating to Rett Syndrome**

In October 2020, the Company entered into a sublicense agreement with Taysha for a gene therapy for Rett syndrome, including intellectual property related to MECP2 gene constructs and regulation of their expression. The agreement grants Taysha worldwide exclusive rights to intellectual property developed by scientists at UNC, U. Edinburgh and the Company, and the Company's know-how relating to the research, development, and manufacture of the gene therapy for Rett syndrome and MECP2 gene constructs and regulation of their expression.

The Company assessed the nature of the promised license to determine whether the license has significant stand-alone functionality and evaluated whether such functionality can be retained without ongoing activities by the Company and determined that the license has significant stand-alone functionality. Furthermore, the Company has no ongoing activities associated with the license to support or maintain the license's utility. Based on this, the Company determined that the pattern of transfer of control of the license to Taysha was at a point in time.

The transaction price of the contract includes (i) $3.0 million of fixed consideration, (ii) up to $26.5 million of variable consideration in the form of event-based milestone payments, (iii) up to $30.0 million of variable consideration in the form of sales-based milestone payments, and (iv) high single-digit royalty-based payments based on net sales. The Company is obligated to pay a portion of milestone payments and royalties on net sales received from Taysha to UNC and U. Edinburgh. The event-based milestone payments are based on certain development and regulatory events occurring. The Company evaluated whether the milestone conditions have been achieved and if it is probable that a significant cumulative revenue reversal would not occur before recognizing the associated revenue. The Company determined that these milestone payments are not within the Company's control or the licensee's control, such as regulatory approvals, and are not considered probable of being achieved until those approvals are received. Accordingly, the Company fully constrained the $26.5 million in event-based milestone payments until such time that it is probable that a significant cumulative revenue reversal would not occur. The sales-based milestone payments and other royalty-based payments are based on a level of sales for which the license is deemed to be the predominant item to which the royalties relate. The Company will recognize revenue for these payments at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied or partially satisfied.

As of March 31, 2026, the Company did not have any contract assets or contract liabilities as a result of this transaction. As of December 31, 2025, the Company had $3.0 million included in accounts receivable in the condensed consolidated balance sheet as a result of clinical milestones achieved by our sublicensor as per the sublicense agreement noted above.

**Ultragenyx License Agreement**

On May 16, 2022, the Company and Ultragenyx Pharmaceutical Inc. ("Ultragenyx") entered into an exclusive license agreement (the "License Agreement") for AAV gene therapy, ABO-102, for the treatment of Sanfilippo syndrome type A (MPS IIIA). Under the License Agreement, Ultragenyx assumed responsibility for the ABO-102 program from the Company, with the exclusive right to develop, manufacture, and commercialize ABO-102 worldwide. Also pursuant to the License Agreement, following regulatory approval, the Company is eligible to receive tiered royalties from mid-single-digits to 8% on net sales, as well as up to $30.0 million in commercial milestone payments. The tiered royalty range represents a reduction from the previously disclosed mid-single digits to 10% on net sales as a result of potential FDA approval occurring after December 31, 2025, in accordance with the terms of the License Agreement. Both forms of consideration comprise the transaction price to which the Company expects to be entitled in exchange for transferring the related intellectual property and certain, contractually-specified, transition services to Ultragenyx. The sales-based royalty and milestone payments are subject to the royalty recognition constraint. As such, these fees are not recognized as revenue until the later of: (a) the occurrence of the subsequent sale, and (b) the performance obligation to which they relate has been satisfied.

**NOTE 14 – SEGMENT INFORMATION**

Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the CODM, or decision-making group, in deciding how to allocate resources in assessing performance. The Company is a commercial-stage biopharmaceutical company developing cell and gene therapies for life-threatening diseases and has one reportable segment. The Company's CODM is the chief executive officer.

The accounting policies of the commercial-stage biopharmaceutical segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the commercial-stage biopharmaceutical segment based on net income (loss), which is reported on the consolidated statements of operations and comprehensive income (loss) as consolidated net income (loss). The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets. Expenditures for additions to long-lived assets, which include purchases of property and equipment, are included in total consolidated assets reviewed by the chief operating decision maker and are reported on the consolidated statements of cash flows.

To date, the Company has generated limited product revenue. The Company will continue to incur significant expenses and operating losses until ZEVASKYN<sup>®</sup> can provide sufficient revenue for the Company to be profitable. As such, the CODM uses cash forecast models in deciding how to invest into the commercial-stage biopharmaceutical segment. Such cash forecast models are reviewed to make decisions about allocating resources and assessing the entity-wide operating results and performance. Net income (loss) is used to monitor budget versus actual results. Monitoring budgeted versus actual results is used to make decisions about allocating resources, assessing the performance of the segment and in establishing management's compensation, along with cash forecast models.

The table below summarizes the significant expense categories regularly reviewed by the CODM (in thousands):

SCHEDULE OF SIGNIFICANT EXPENSE CATEGORIES

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| | | |
|:---|:---|:---|
|  | **For the three months ended March 31,** | **For the three months ended March 31,** |
|  | **2026** | **2025** |
| Product revenue, net | $8720 | $— |
| Cost of sales | 2696 |  |
| Research and development costs |  |  |
| &nbsp;&nbsp;&nbsp;Salaries & related costs | 1733 | 4681 |
| &nbsp;&nbsp;&nbsp;Non-cash stock-based compensation | 223 | 670 |
| &nbsp;&nbsp;&nbsp;Other research and development costs (a) | 7599 | 4590 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total research and development costs | 9555 | 9941 |
| General and administrative costs |  |  |
| &nbsp;&nbsp;&nbsp;Salaries & related costs | 8345 | 3653 |
| &nbsp;&nbsp;&nbsp;Non-cash stock-based compensation | 2734 | 2031 |
| &nbsp;&nbsp;&nbsp;Commercial costs | 1802 | 1207 |
| &nbsp;&nbsp;&nbsp;Other general and administrative costs (b) | 6621 | 2895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total general and administrative costs | 19502 | 9786 |
| Other segment items (c) | 5958 | 7698 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(17075) | $(12029) |

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*(a)* *Other research and development costs include, but are not limited to preclinical lab supplies, preclinical and development costs, clinical trial costs, preclinical manufacturing and manufacturing facility costs, costs associated with preclinical regulatory approvals, preclinical depreciation on lab supplies and manufacturing facilities, and preclinical consultant-related expenses.* 

*(b)* *Other selling, general and administrative costs primarily consist of office facility costs, public company reporting related costs, professional fees (e.g., legal expenses), regulatory costs, production costs not attributable to cost of sales and other general operating expenses not otherwise included in research and development expenses.* 

*(c)* *Other segment items include interest income, interest expense, change in fair value of warrant liabilities, other income and income tax (benefit) expense.* 

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis together with our unaudited condensed consolidated financial statements and accompanying notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"). This discussion and analysis contains forward-looking statements, which involve risks and uncertainties. As a result of many factors, such as those described under "Forward-Looking Statements," "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report, our actual results may differ materially from those anticipated in these forward-looking statements.*

**OVERVIEW**

We are a commercial-stage biopharmaceutical company developing cell and gene therapies for life-threatening diseases. On April 28, 2025, the FDA approved ZEVASKYN<sup>®</sup> (prademagene zamikeracel) gene-modified cellular sheets, as the first and only autologous cell-based gene therapy for the treatment of wounds in adult and pediatric patients with RDEB, a serious and debilitating genetic skin disease. There is no cure for RDEB, and ZEVASKYN<sup>®</sup> is the only FDA-approved product to treat RDEB wounds with a single application. ZEVASKYN<sup>®</sup> was granted Orphan Drug and Rare Pediatric Disease designations by the FDA.

ZEVASKYN<sup>®</sup> is manufactured at our cGMP manufacturing facility in Cleveland, Ohio, and is made available through ZEVASKYN<sup>®</sup> qualified treatment centers.

**Recent Developments**

Qualified Treatment Center Activations

On April 2, 2026, we announced activation of NewYork-Presbyterian/Columbia University Irving Medical Center in New York City as another qualified treatment center for the administration of ZEVASKYN<sup>®</sup>.

On May 11, 2026, we announced activation of Children's Hospital of Philadelphia as the newest qualified treatment center for the administration of ZEVASKYN<sup>®</sup>. This represents the sixth available qualified treatment center for the administration of ZEVASKYN<sup>®</sup>.

Pipeline Update

Building on our proven end-to-end competency in engineered cell therapy, we will focus our development efforts on the development of ABO-701, a recently licensed radically novel engineered T-cell therapy, targeting Prostate-Specific Membrane Antigen ("PSMA") to treat prostate cancer. PSMA is a validated target for advanced prostate cancer, which is a leading cause of cancer mortality, with more than 30,000 deaths annually in the U.S. despite multiple approved therapies and recent advances in the field.

ABO-701 is an autologous engineered T-cell product that carries a Synthetic Immune Receptor ("SIR-T™") designed to overcome the limitations of CAR and TCR approaches. The SIR-T™ platform underlying ABO-701 was developed in the laboratory of Preet M. Chaudhary, M.D., Ph.D., Professor of Medicine and Chief of Jane Ann Nohl Division of Hematology and Center for the Study of Blood Diseases at University of Southern California ("USC") Keck School of Medicine and Director of USC Blood and Marrow Transplant and Cell Therapy Program. The patents covering the SIR-T™ platform are owned by Angeles Therapeutics, Inc. In pre-clinical studies, ABO-701 has demonstrated durable tumor control in mouse models and modest levels of cytokine release – a profile that has been elusive to other engineered cell therapies in the solid tumors.

We expect to file an Investigational New Drug ("IND") application and commence first-in-human studies with ABO-701 in the second half of 2027 while engaging a contract development and manufacturing organization for supply readiness in the meantime. This development plan and timing allow us to maintain our focus on commercializing ZEVASKYN<sup>®</sup>.

As part of our portfolio optimization, we have deprioritized our in-house ophthalmology programs.

**RESULTS OF OPERATIONS**

**Comparison of Three Months Ended March 31, 2026 and March 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **For the three months ended<br> March 31,** | **For the three months ended<br> March 31,** | **Change** |
| <br>*($ in thousands)* | **2026** | **2025** | **%** |
| Revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;Product revenue, net | $8720 | $— | 100% |
| Costs and expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of sales | 2696 |  | 100% |
| &nbsp;&nbsp;&nbsp;Research and development | 9555 | 9941 | (4)% |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 19502 | 9786 | 99% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 31753 | 19727 | 61% |
| Loss from operations | (23033) | (19727) | 17% |
| &nbsp;&nbsp;&nbsp;Interest income | 1354 | 1310 | 3% |
| &nbsp;&nbsp;&nbsp;Interest expense | (830) | (998) | (17)% |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | 5386 | 7245 | (26)% |
| &nbsp;&nbsp;&nbsp;Other income, net | 50 | 141 | (65)% |
| Loss before income taxes | (17073) | (12029) | 42% |
| &nbsp;&nbsp;&nbsp;Income tax expense | 2 |  | 100% |
| Net loss | $(17075) | $(12029) | 42% |

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Product revenue, net

Product revenue, net, resulting from the sale of ZEVASKYN<sup>®</sup>, for the three months ended March 31, 2026 was $8.7 million. There was no product revenue for the three months ended March 31, 2025 as the approval by the FDA for ZEVASKYN<sup>®</sup> did not occur until April of 2025.

Cost of sales

Cost of sales during the three months ended March 31, 2026 was $2.7 million and primarily includes costs associated with the commercial sale of ZEVASKYN<sup>®</sup> including royalties due to our licensor, Stanford. There was no cost of sales in the same period of 2025, as ZEVASKYN<sup>®</sup> was approved by the FDA in April 2025.

Research and development

Research and development expenses include, but are not limited to, payroll and personnel expenses, preclinical lab supplies, preclinical and development costs, clinical trial costs, preclinical manufacturing and manufacturing facility costs, costs associated with regulatory approvals, preclinical depreciation on lab supplies and manufacturing facilities, and preclinical consultant-related expenses.

Total research and development spending for the three months ended March 31, 2026 was $9.6 million, as compared to $9.9 million for the same period of 2025, a decrease of $0.3 million. In March 2026, we entered a license and joint development agreement related to PSMA SIR-T™ which included an upfront payment of $7.0 million that was included in research and development expenses. Excluding this transaction, research and development spending decreased $7.4 million. The reduction in expenses was primarily due to costs capitalized into inventory and engineering runs and other production costs that are no longer considered research and development due to FDA approval of ZEVASKYN<sup>®</sup> in April of 2025.

We expect our research and development activities to increase as we work towards advancing other product candidates towards potential regulatory approval, reflecting costs associated with the following:

● employee and consultant-related expenses;

● preclinical and developmental costs;

● clinical trial costs;

● development and regulatory milestones associated with licensing agreements;

● the cost of acquiring and manufacturing clinical trial materials; and

● costs associated with regulatory approvals.

Selling, general and administrative

Selling, general and administrative expenses primarily consist of payroll and personnel costs, office facility costs, public company reporting related costs, professional fees (e.g., legal expenses), selling and commercialization costs and other general operating expenses not otherwise included in research and development expenses. We expect our selling, general, and administrative costs to continue to increase as we expand our commercialization of ZEVASKYN<sup>®</sup> and pursue development of other product candidates.

Total selling, general and administrative expenses were $19.5 million for the three months ended March 31, 2026, as compared to $9.8 million for the same period of 2025, an increase of $9.7 million. The increase in expenses was primarily due to increases in salaries and stock-based compensation of $5.4 million due to new hires, $1.9 million of costs related to engineering runs with the remainder due to other commercial costs related to our continued commercialization efforts upon FDA approval in April of 2025.

Interest income

Interest income was $1.4 million for the three months ended March 31, 2026, as compared to $1.3 million in the same period of 2025. The increase resulted from higher earnings on short-term investments driven by increased average short-term investment balances.

Interest expense

Interest expense was $0.8 million for the three months ended March 31, 2026 compared to $1.0 million in the same period of 2025. Interest expense was due to the credit facility entered into by the Company in January 2024 and decreased as a result of the July 2025 Loan Agreement Amendment plus a reduction of the principal loan amount due to payments made in 2026.

Change in fair value of warrant liabilities

The change in fair value of warrant liabilities was a gain of $5.4 million for the three months ended March 31, 2026. We issued stock purchase warrants that are required to be classified as a liability and valued at fair market value at each reporting period. The gain in the fair value of warrant liabilities was primarily due to the decrease in our stock price over the quarter and a shorter term of the outstanding warrants.

The change in fair value of warrant liabilities was a gain of $7.2 million for the three months ended March 31, 2025. The gain in the fair value of warrant liabilities was primarily due to the decrease in our stock price year over the year and a shorter term.

Other income, net

Other income, net was $50,000 for the three months ended March 31, 2026, as compared to $141,000 in the same period of 2025. The decrease was primarily a result of realized losses on foreign currency related to various vendors that we pay in foreign currency during the three months ended March 31, 2026.

Income tax expense

We recorded a current income tax expense of $2,000 for the three months ended March 31, 2026. We did not record an income tax expense for the three months ended March 31, 2025 as we generated sufficient tax losses, after consideration of discrete items.

**LIQUIDITY AND CAPITAL RESOURCES**

**Cash Flows for the Three Months Ended March 31, 2026 and 2025**

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| | | |
|:---|:---|:---|
| | **For the three months ended March 31,** | **For the three months ended March 31,** |
| <br>*($ in thousands)* | **2026** | **2025** |
| Total cash, cash equivalents and restricted cash (used in) provided by: |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | $(19804) | $(18402) |
| &nbsp;&nbsp;&nbsp;Investing activities | 4963 | 4213 |
| &nbsp;&nbsp;&nbsp;Financing activities | (2222) | 6768 |
| Net decrease in cash, cash equivalents and restricted cash | $(17063) | $(7421) |

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Operating activities

Net cash used in operating activities was $19.8 million for the three months ended March 31, 2026, primarily comprised of our net loss of $17.1 million and decreases in operating assets and liabilities of $1.4 million and net non-cash charges of $1.3 million. Non-cash charges consisted primarily of $5.4 million of gain as a result of the change in fair value of warrant liabilities, $3.0 million of stock-based compensation and $0.7 million of depreciation and amortization.

Net cash used in operating activities was $18.4 million for the three months ended March 31, 2025, primarily comprised of our net loss of $12.0 million and decreases in operating assets and liabilities of $3.4 million and net non-cash charges of $3.0 million. Non-cash charges consisted primarily of $7.2 million of gain as a result of the change in fair value of warrant liabilities, $2.7 million of stock-based compensation and $0.5 million of depreciation and amortization.

Investing activities

Net cash provided by investing activities was $5.0 million for the three months ended March 31, 2026, primarily comprised of proceeds from maturities of short-term investments of $24.9 million, offset by purchases of short-term investments of $19.0 million and capital expenditures of $0.9 million.

Net cash provided by investing activities was $4.2 million for the three months ended March 31, 2025, primarily comprised of proceeds from maturities of short-term investments of $54.2 million, offset by purchases of short-term investments of $48.6 million and capital expenditures of $1.4 million.

Financing activities

Net cash used in financing activities was $2.2 million for the three months ended March 31, 2026, comprised of $2.2 million in payments on our long-term debt.

Net cash provided by financing activities was $6.8 million for the three months ended March 31, 2025, primarily comprised of proceeds of $6.8 million from open market sales of common stock pursuant to the ATM Agreement (as defined below).

We have historically funded our operations primarily through our sale of equity securities, our most recent gain on sale of our PRV, and strategic collaboration arrangements.

Our principal source of liquidity is cash, cash equivalents, restricted cash and short-term investments, collectively referred to as our cash resources. As of March 31, 2026, our cash resources were $168.3 million. We believe that our current cash and cash equivalents, restricted cash and short-term investments are sufficient to fund operations through at least the next 12 months from the date of this report on Form 10-Q. We may need to secure additional funding to carry out all of our planned research and development and potential commercialization activities. If we are unable to obtain additional financing or generate license or product revenue, the lack of liquidity and sufficient capital resources could have a material adverse effect on our future prospects.

We have an open market sale agreement with Jefferies LLC (as amended, the "ATM Agreement") pursuant to which, we may sell from time to time, through Jefferies LLC, shares of our common stock for an aggregate sales price of up to $75.0 million. Any sales of shares pursuant to this agreement are made under our effective "shelf" registration statement on Form S-3 that is on file with and has been declared effective by the SEC. We sold 1,312,283 shares of our common stock under the ATM Agreement and received $6.8 million of net proceeds during the three months ended March 31, 2025. There were no sales of our common stock under the ATM agreement during the three months ended March 31, 2026. Under the ATM Agreement and as of March 31, 2026, we have remaining shares of our common stock for an aggregate sales price of up to $51.5 million.

Since our inception and excluding the gain on sale of our priority review voucher, we have incurred negative cash flows from operations and have expended, and expect to continue to expend, substantial funds to complete our planned product development and commercialization efforts. Excluding the gain on sale of our priority review voucher, we have not been profitable since inception and to date have received limited revenues from the sale of products or licenses. As a result, we have incurred significant operating losses and negative cash flows from operations since our inception and anticipate such losses and negative cash flows will continue until ZEVASKYN<sup>®</sup> can provide sufficient revenue for us to be profitable and cash flow generating.

We may incur losses for the next several years as we continue to invest in commercialization, product research and development, preclinical studies, clinical trials, and regulatory compliance and cannot assure that we will ever be able to generate sufficient product sales or royalty revenue to achieve profitability on a sustained basis, or at all.

If we raise additional funds by selling additional equity securities, the relative equity ownership of our existing investors will be diluted, and the new investors could obtain terms more favorable than previous investors. If we raise additional funds through collaborations, strategic alliances, or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs, or product candidates or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds through equity or debt financing when needed, we may be required to delay, limit, or terminate our product development programs or any future commercialization efforts or grant rights to develop and market product candidates to third parties that we would otherwise prefer to develop and market ourselves.

Our future capital requirements and adequacy of available funds depend on many factors, including:

● the successful commercialization of ZEVASKYN<sup>®</sup>;

● the successful development, regulatory approval and commercialization of our cell and gene therapy and other product candidates;

● the ability to establish and maintain collaborative arrangements with corporate partners for the research, development, and commercialization of products;

● continued scientific progress in our research and development programs;

● the magnitude, scope and results of preclinical testing and clinical trials;

● the costs involved in filing, prosecuting, and enforcing patent claims;

● the costs involved in conducting clinical trials;

● competing technological developments;

● the cost of manufacturing and scale-up;

● the ability to establish and maintain effective commercialization arrangements and activities; and

● the successful outcome of our regulatory filings.

Due to uncertainties and certain of the risks described above, under "Risk Factors" and elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report, it is not possible to reliably predict future spending or time to completion by project or product category or the period in which material net cash inflows from significant projects are expected to commence. If we are unable to timely complete a particular project, our research and development efforts could be delayed or reduced, our business could suffer depending on the significance of the project and we might need to raise additional capital to fund operations, as discussed in the risks above.

We plan to continue our policy of investing any available funds in suitable certificates of deposit, money market funds, government securities and investment-grade, interest-bearing securities. We do not invest in derivative financial instruments.

**Critical Accounting Estimates**

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and related disclosures in the financial statements. Management considers an accounting estimate to be critical if:

● it requires assumptions to be made that were uncertain at the time the estimate was made, and

● changes in the estimate or different estimates that could have been selected could have a material impact in our results of operations or financial condition.

While we base our estimates and judgments on our experience and on various other factors that we believe to be reasonable under the circumstances, actual results could differ from those estimates, and the differences could be material. For a discussion of the critical accounting estimates that affect the unaudited condensed consolidated financial statements, see "Critical Accounting Estimates" included in Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report.

See Note 2 to our unaudited condensed consolidated financial statements for a discussion of our significant accounting policies.

**Recently Issued Accounting Standards Not Yet Effective or Adopted**

See Note 2 to our unaudited condensed consolidated financial statements for a discussion of recently issued accounting standards not yet effective or adopted.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Not applicable.

**ITEM 4. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

Under the supervision and with the participation of our management and consultants, including the Chief Executive Officer (our principal executive officer) and Chief Financial Officer (our principal financial officer), we have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures ("Disclosure Controls and Procedures"), as of March 31, 2026, as such term is defined in Rules 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

**Conclusion of Evaluation** — Based on this Disclosure Controls and Procedures evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our Disclosure Controls and Procedures as of the end of the period covered by this report were effective.

**Changes in Internal Control Over Financial Reporting –** There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) of the Exchange Act) that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**PART II — OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

None.

**ITEM 1A. RISK FACTORS**

Our business and financial results are subject to numerous risks and uncertainties. As a result, the risks and uncertainties discussed in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025 should be carefully considered.

**ITEM 5. OTHER INFORMATION**

**Securities Trading Arrangements of Directors and Executive Officer*s***

During the three months ended March 31, 2026, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, modified or terminated any contract, instruction, or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act (a "Rule 10b5-1 trading arrangement") or any non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K), except as follows:

On January 21, 2026, Joseph Vazzano, the Company's chief financial officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of all net vested shares issued to Mr. Vazzano upon the vesting of 99,036 restricted stock awards. The duration of the arrangement is until April 26, 2027 or the date on which the transactions under the arrangement are completed.

On February 4, 2026, Eric Crombez, M.D., a member of the Company's board of directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 63,456 shares of our common stock. The duration of the arrangement is until May 7, 2027, or the date on which the transactions under the arrangement are completed.

**ITEM 6. EXHIBITS**

See Exhibit Index below, which is incorporated by reference herein.

**<u>Exhibit Index</u>**

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| | |
|:---|:---|
| Exhibits: | Description of Document |
| 31.1 | [Principal Executive Officer Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.\*](ex31-1.htm) |
| 31.2 | [Principal Financial Officer Certification Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.\*](ex31-2.htm) |
| 32\*\* | [Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\*](ex32.htm) |
| 101 | The following materials from Abeona's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets at March 31, 2026 and December 31, 2025 (unaudited), (ii) Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2026 and 2025 (unaudited), (iii) Condensed Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2026 and 2025 (unaudited), (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (unaudited), and (v) Notes to Condensed Consolidated Financial Statements (unaudited). |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

\* Filed herewith.

\*\* Pursuant to Item 601(b)(32)(ii) of Regulation S-K, this exhibit shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any filing.

**<u>SIGNATURES</u>**

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.

---

| | | |
|:---|:---|:---|
|  | ABEONA THERAPEUTICS INC. | ABEONA THERAPEUTICS INC. |
| Date: May 13, 2026 | By: | */s/ Vishwas Seshadri* |
|  |  | Vishwas Seshadri |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |
| Date: May 13, 2026 | By: | */s/ Joseph Vazzano* |
|  |  | Joseph Vazzano |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Exhibit 31.1

**EXHIBIT 31.1**

<u>PRINCIPAL EXECUTIVE OFFICER CERTIFICATION PURSUANT TO 18 U.S.C.</u>

<u>SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302</u>

<u>OF THE SARBANES-OXLEY ACT OF 2002</u>

I, Vishwas Seshadri, certify that:

1. I have reviewed this report on Form 10-Q for the quarterly period ended March 31, 2026, of Abeona Therapeutics Inc.;

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;

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;

4. The registrant's other certifying officer 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&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;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) 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

d) 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

5. The registrant's other certifying officer 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;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

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.

---

| | | |
|:---|:---|:---|
| Date: May 13, 2026 | By: | */s/ Vishwas Seshadri* |
|  |  | Vishwas Seshadri |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**EXHIBIT 31.2**

<u>PRINCIPAL FINANCIAL OFFICER CERTIFICATION PURSUANT TO 18 U.S.C.</u>

<u>SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302</u>

<u>OF THE SARBANES-OXLEY ACT OF 2002</u>

I, Joseph Vazzano, certify that:

1. I have reviewed this report on Form 10-Q for the quarterly period ended March 31, 2026, of Abeona Therapeutics Inc.;

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;

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;

4. The registrant's other certifying officer 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&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;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) 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

d) 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

5. The registrant's other certifying officer 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;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

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.

---

| | | |
|:---|:---|:---|
| Date: May 13, 2026 | By: | */s/ Joseph Vazzano* |
|  |  | Joseph Vazzano |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---

## Ex-32

**EXHIBIT 32**

<u>CERTIFICATION PURSUANT TO 18 U.S.C.</u>

<u>SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906</u>

<u>OF THE SARBANES-OXLEY ACT OF 2002</u>

In connection with the Quarterly Report of Abeona Therapeutics Inc. (the "Company") on Form 10-Q for the quarterly period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), we, Vishwas Seshadri, President and Chief Executive Officer of the Company, and Joseph Vazzano, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&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; and

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

---

| | | |
|:---|:---|:---|
| Date: May 13, 2026 | By: | */s/ Vishwas Seshadri* |
|  |  | Vishwas Seshadri |
|  |  | President and Chief Executive Officer |
|  |  | (Principal Executive Officer) |
| Date: May 13, 2026 | By: | */s/ Joseph Vazzano* |
|  |  | Joseph Vazzano |
|  |  | Chief Financial Officer |
|  |  | (Principal Financial Officer) |

---