$AVLN

Avalyn Pharma Inc.

CIK:0001540171|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF 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	$ 24,729	$ 17,882	$ 47,618	$ 33,201
General and administrative	6,561	3,895	11,581	7,292
Total operating expenses	31,290	21,777	59,199	40,493
LOSS FROM OPERATIONS	(31,290)	(21,777)	(59,199)	(40,493)
OTHER INCOME (EXPENSE):
Interest income	2,696	1,627	3,821	2,875
Interest expense	(272)	0	(370)	0
Other income (expense)	(69)	(41)	(56)	(76)
Total other income	2,355	1,586	3,395	2,799
Net loss	(28,935)	(20,191)	(55,804)	(37,694)
OTHER COMPREHENSIVE LOSS:
Unrealized gains (losses) on marketable securities	(107)	(34)	(229)	(122)
Total other comprehensive loss	(107)	(34)	(229)	(122)
TOTAL COMPREHENSIVE LOSS	$ (29,042)	$ (20,225)	$ (56,033)	$ (37,816)
Net loss per share of common stock, basic	$ (0.98)	$ (17.63)	$ (3.6)	$ (52.83)
Net loss per share of common stock, diluted	$ (0.98)	$ (17.63)	$ (3.6)	$ (52.83)
Weighted-average number of common stock used in net loss per share, basic	29,650,660	1,145,309	15,519,187	713,450
Weighted-average number of common stock used in net loss per share, diluted	29,650,660	1,145,309	15,519,187	713,450

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES:
Net loss	$ (55,804)	$ (37,694)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	173	19
Non-cash operating lease expense	221	0
Stock-based compensation expense	3,983	1,671
Amortization and accretion of premiums/discounts on marketable securities	(417)	(1,029)
Amortization of debt discount and deferred financing costs	22	0
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(192)	(544)
Other assets	(12)	239
Accounts payable	(1,206)	(1,374)
Accrued liabilities	(2,543)	(1,260)
Operating lease liability	(192)	0
Net cash used in operating activities	(55,967)	(39,972)
INVESTING ACTIVITIES:
Purchases of property and equipment	(587)	(8)
Purchases of marketable securities	(134,832)	(67,058)
Proceeds from sale of marketable securities	26,343	0
Maturities of marketable securities	45,390	54,500
Net cash provided by investing activities	(63,686)	(12,566)
FINANCING ACTIVITIES:
Proceeds from initial public offering, net of underwriter discounts and commissions paid during the period	320,850	0
Payment of offering costs	(4,136)	0
Proceeds from the exercise of stock options	29	0
Proceeds from Term loan	15,000	0
Payments of issuance costs associated with Term loan	(208)	0
Proceeds from issuance of Series D convertible preferred stock, net of issuance costs	0	89,884
Net cash provided by financing activities	331,535	89,884
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	211,882	37,346
Beginning of period	52,315	23,955
End of period	264,197	61,301
Supplemental disclosure of non-cash investing and financing activities:
Conversion of preferred stock into common stock upon IPO	372,198	0
Deferred offering costs transferred to additional paid in capital	4,232	0
Right-of-use assets obtained in exchange for operating lease liabilities	831	0
Warrant value issued as part of Term loan	184	0
Issuance costs related to a public offering included in accounts payable and accrued expenses	$ 96	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash and cash equivalents	$ 264,197	$ 52,315
Marketable securities, current	88,228	86,044
Prepaid expenses and other current assets	5,563	5,201
Total current assets	357,988	143,560
NON-CURRENT ASSETS:
Property and equipment, net	1,206	792
Operating lease right-of-use asset	2,140	1,530
Marketable securities, noncurrent	61,103	0
Other assets	3,011	2,999
Total noncurrent assets	67,460	5,321
TOTAL ASSETS	425,448	148,881
CURRENT LIABILITIES:
Accounts payable	2,648	3,758
Accrued liabilities	7,345	9,889
Operating lease liability	816	444
Total current liabilities	10,809	14,091
NON-CURRENT LIABILITIES:
Term loan	14,801	0
Operating lease liability, noncurrent	1,492	1,225
TOTAL LIABILITIES	27,102	15,316
COMMITMENTS AND CONTINGENCIES (Note 8)
STOCKHOLDERS' DEFICIT
Preferred stock, $0.001 par value; 10,000,000 shares and no shares authorized as of June 30, 2026 and December 31, 2025, respectively; no shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	0	0
Common stock, $0.001 par value; 700,000,000 and 575,000,000 shares authorized as of June 30, 2026 and December 31, 2025, respectively; 44,333,094 and 1,227,186 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively	67	24
Additional paid-in capital	719,541	26,548
Accumulated other comprehensive (loss) income	(95)	134
Accumulated deficit	(321,167)	(265,362)
Total stockholders' equity (deficit)	398,346	(238,656)
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)	425,448	148,881
Series A Convertible Preferred Stock [Member]
REDEEMABLE CONVERTIBLE PREFERRED STOCK
REDEEMABLE CONVERTIBLE PREFERRED STOCK	0	49,176
Series B Convertible Preferred Stock [Member]
REDEEMABLE CONVERTIBLE PREFERRED STOCK
REDEEMABLE CONVERTIBLE PREFERRED STOCK	0	35,376
Series C-1 Preferred Stock
REDEEMABLE CONVERTIBLE PREFERRED STOCK
REDEEMABLE CONVERTIBLE PREFERRED STOCK	0	174,494
Series C-2 Convertible Preferred Stock [Member]
REDEEMABLE CONVERTIBLE PREFERRED STOCK
REDEEMABLE CONVERTIBLE PREFERRED STOCK	0	13,406
Series D Convertible Preferred Stock [Member]
REDEEMABLE CONVERTIBLE PREFERRED STOCK
REDEEMABLE CONVERTIBLE PREFERRED STOCK	$ 0	$ 99,769