$AVTX

Avalo Therapeutics, Inc.

CIK:0001534120|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating expenses:
Research and development	$ 23,418	$ 14,074	$ 37,466	$ 23,195
General and administrative	8,099	5,242	14,953	10,789
Total operating expenses	31,517	19,316	52,419	33,984
Loss from operations	(31,517)	(19,316)	(52,419)	(33,984)
Other (expense) income:
Change in fair value of derivative liability	(1,010)	(2,530)	(530)	(2,150)
Change in fair value of contingent consideration	(6,574)	0	(6,574)	0
Interest income, net	2,761	1,097	3,564	2,244
Total other (expense) income, net	(4,823)	(1,433)	(3,540)	94
Loss before taxes	(36,340)	(20,749)	(55,959)	(33,890)
Income tax expense	18	16	29	24
Net loss	$ (36,358)	$ (20,765)	$ (55,988)	$ (33,914)
Net loss per share of common stock - basic (in dollars per share)	$ (0.83)	$ (1.92)	$ (1.75)	$ (3.18)
Net loss per share of common stock - diluted (in dollars per share)	$ (0.83)	$ (1.92)	$ (1.75)	$ (3.18)
Weighted average common shares outstanding, basic (in shares)	43,602,044	10,829,760	31,919,388	10,673,200
Weighted average common shares outstanding, diluted (in shares)	43,602,044	10,829,760	31,919,388	10,673,200
Comprehensive loss:
Net loss	$ (36,358)	$ (20,765)	$ (55,988)	$ (33,914)
Other comprehensive loss:
Unrealized loss on investments, net	(577)	(34)	(651)	(34)
Comprehensive loss	$ (36,935)	$ (20,799)	$ (56,639)	$ (33,948)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating activities
Net loss	$ (36,358)	$ (20,765)	$ (55,988)	$ (33,914)
Adjustments to reconcile net cash used in operating activities:
Depreciation and amortization			34	269
Stock-based compensation			8,880	5,959
Accretion of available-for-sale investments, net			(524)	(146)
Change in fair value of contingent consideration	6,574	0	6,574	0
Contingent consideration paid pursuant to AlmataBio Transaction			(4,813)	0
Change in fair value of derivative liability	1,010	2,530	530	2,150
Deferred taxes			29	24
Changes in assets and liabilities:
Prepaid expenses and other current assets			(694)	2,422
Accounts payable			3,210	2,083
Accrued expenses and other current liabilities			5,130	292
Lease liability, net			(47)	14
Net cash used in operating activities			(37,679)	(20,847)
Investing activities
Purchases of investments			(353,801)	(70,860)
Sales and maturities of investments			49,381	0
Net cash used in investing activities			(304,420)	(70,860)
Financing activities
Proceeds from sale of common stock and pre-funded warrants in an underwritten public offering, gross			431,315	0
Transaction costs paid pursuant to sale of common stock and pre-funded warrants in an underwritten public offering			(26,403)	0
Proceeds from exercise of stock options			7,409	0
Cash paid related to withholding shares to satisfy RSU tax withholding obligations			(779)	(509)
Proceeds from issuance of common stock under employee stock purchase plan, net of cash paid related to withholding shares to satisfy tax withholding obligations			66	40
Net cash provided by (used in) financing activities			411,608	(469)
Increase (decrease) in cash, cash equivalents and restricted cash			69,509	(92,176)
Cash, cash equivalents, and restricted cash at beginning of period			16,105	134,696
Cash, cash equivalents, and restricted cash at end of period	85,614	42,520	85,614	42,520
Supplemental disclosures of non-cash activities
Issuance of common stock pursuant to AlmataBio Milestone Buyout Option			1,761	0
Cash and cash equivalents	85,382	42,290	85,382	42,290
Restricted cash, current	49	20	49	20
Restricted cash, non-current	183	210	183	210
Total cash, cash equivalents and restricted cash	$ 85,614	$ 42,520	$ 85,614	$ 42,520

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 85,382	$ 15,858
Short-term investments	314,894	82,478
Prepaid expenses and other current assets	7,607	6,913
Restricted cash, current portion	49	37
Total current assets	407,932	105,286
Long-term investments	71,878	0
Property and equipment, net	288	460
Goodwill	10,502	10,502
Restricted cash, net of current portion	183	210
Total assets	490,783	116,458
Current liabilities:
Accounts payable	3,347	137
Accrued expenses and other current liabilities	17,783	12,803
Total current liabilities	21,130	12,940
Royalty obligation	2,000	2,000
Deferred tax liability, net	463	434
Derivative liability, non-current	18,530	18,000
Other long-term liabilities	0	35
Total liabilities	42,123	33,409
Mezzanine equity:
Temporary equity, values issued	0	0
Stockholders’ equity:
Common stock—$0.001 par value; 200,000,000 shares authorized at June 30, 2026 and December 31, 2025; 52,900,692 and 18,512,757 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	53	18
Additional paid-in capital	953,700	531,485
Accumulated other comprehensive (loss) income	(583)	68
Accumulated deficit	(504,510)	(448,522)
Total stockholders’ equity	448,660	83,049
Total liabilities, mezzanine equity and stockholders’ equity	490,783	116,458
Series D Preferred Stock
Mezzanine equity:
Temporary equity, values issued	0	0
Series E Preferred Stock
Mezzanine equity:
Temporary equity, values issued	0	0
Series C preferred stock
Stockholders’ equity:
Series C Preferred Stock—$0.001 par value; 4,085 and 34,326 shares of Series C Preferred Stock authorized at June 30, 2026 and December 31, 2025, respectively; 4,085 and 18,792 shares of Series C Preferred Stock issued and outstanding at June 30, 2026 and December 31, 2025, respectively	0	0
Series C-1 preferred Stock
Stockholders’ equity:
Series C Preferred Stock—$0.001 par value; 4,085 and 34,326 shares of Series C Preferred Stock authorized at June 30, 2026 and December 31, 2025, respectively; 4,085 and 18,792 shares of Series C Preferred Stock issued and outstanding at June 30, 2026 and December 31, 2025, respectively	$ 0	$ 0