Allarity Therapeutics — Second Quarter 2026 Earnings Summary

Financial Performance

• Cash and restricted cash totaled $26.9 million as of June 30, 2026, compared to $14.7 million as of June 30, 2025.
• Cash used in operating activities was $2.6 million during the quarter.
• Research and development expenses were $1.3 million for the quarter ended June 30, 2026, a decrease from $2.3 million in the same period in 2025.
• General and administrative expenses were $1.3 million for the quarter ended June 30, 2026, down from $1.8 million in the quarter ended June 30, 2025.
• Total comprehensive loss attributable to common stockholders was $3.7 million for the quarter ended June 30, 2026, compared to $4.2 million in the prior year period.
• For the six months ended June 30, 2026, total comprehensive loss was $6.5 million, compared to $7.2 million for the six months ended June 30, 2025.
• Net loss for the quarter ended June 30, 2026, was $3.4 million ($0.21 per share), compared to $2.3 million ($0.15 per share) in the prior year period.
• Net loss for the six months ended June 30, 2026, was $6.2 million ($0.39 per share), compared to $5.1 million ($0.38 per share) in the prior year period.
• Total revenue was $0 for the quarter ended June 30, 2026, and $25,000 for the six months ended June 30, 2026.
• Total operating expenses were $2.7 million for the quarter ended June 30, 2026, compared to $4.1 million in the prior year period.
• Total liabilities increased to $28.6 million as of June 30, 2026, from $8.4 million as of December 31, 2025, driven by a $20.9 million short-term promissory note.
• Stockholders' equity decreased to $3.5 million as of June 30, 2026, from $9.8 million as of December 31, 2025.

Guidance and Future Outlook

• The company anticipates accelerating stenoparib toward FDA approval following the completion of the Phase 3-ready manufacturing campaign.
• The amended Phase 2 protocol for ovarian cancer is designed to accelerate clinical development toward FDA approval.
• The CLIA-certified in-house laboratory is expected to reduce reliance on external labs, shorten turnaround times, and reduce costs for U.S. clinical trials.
• The company aims to position its Medical Laboratory as a preferred CLIA-certified partner in Northern Europe for other companies seeking to conduct trials for the U.S. market.

Business Segments and Product Lines

• Stenoparib (2X-121): A dual PARP and WNT pathway inhibitor currently in Phase 2 clinical trials.
• Manufacturing: The Phase 3-ready manufacturing campaign for stenoparib was completed in July 2026, ahead of the original third-quarter 2026 timeline. All manufacturing payments were completed in the second quarter.
• DRP® Companion Diagnostic: A key U.S. patent was granted by the USPTO covering the stenoparib-specific DRP® companion diagnostic, extending exclusivity into April 2042.
• CLIA Certification: The company obtained CLIA certification for its in-house laboratory in Hørsholm, Denmark, enabling full control of DRP® testing for U.S. trials.
• Ovarian Cancer Program: Enrollment continues in the Phase 2 trial for advanced, platinum-resistant, or platinum-ineligible ovarian cancer under FDA Fast Track designation.
• SCLC Program: Enrollment continues in the Phase 2 trial evaluating stenoparib in combination with temozolomide for relapsed small cell lung cancer (SCLC), fully funded by the U.S. Department of Veterans Affairs.
• Colorectal Cancer: New data presented at AACR 2026 demonstrated stenoparib's mechanism of action in inhibiting the growth of human colorectal cancer cell lines.

Market and Competitive Landscape

• Patent Protection: The newly granted U.S. patent affords commercial exclusivity for stenoparib when used with the DRP® companion diagnostic.
• Clinical Data: AACR 2026 data linked higher stenoparib DRP® scores with enhanced overall survival in advanced ovarian cancer patients.
• Scientific Visibility: CEO Thomas Jensen presented at the Precision Medicine Forum Europe 2026 regarding stenoparib's dual mechanism and ongoing trials.
• Trial Presentation: A Trial-in-Progress poster was presented at the ESMO Gynaecological Cancers Congress by Principal Investigator Kathleen N. Moore, M.D.

Risks and Challenges

• Clinical Development: Risks include patient enrollment, trial execution, regulatory review, and the possibility that clinical results may not demonstrate anticipated safety, efficacy, or clinical benefit.
• Regulatory and Validation: Risks involve the predictive accuracy, validation, regulatory acceptance, and clinical utility of the DRP® companion diagnostic.
• Intellectual Property: Risks include the ability to obtain, maintain, and enforce intellectual property protection.
• Supply Chain: Risks relate to the quality, availability, and regulatory compliance of stenoparib drug supply.
• Laboratory Compliance: Risks include the ability to maintain CLIA certification and other required laboratory approvals.
• Financial Resources: Risks include the ability to maintain sufficient financial resources and obtain additional funding if required.
• Third-Party Reliance: The company relies on third-party clinical sites, investigators, manufacturers, and suppliers.

Management Commentary and Tone

• CEO Thomas Jensen described the second quarter as "highly productive," citing the patent grant, manufacturing completion, and CLIA certification as critical foundations for accelerating stenoparib toward FDA approval.
• Management expressed confidence in the long-term potential of pairing anticancer therapeutics with drug-specific companion diagnostics.
• The CEO highlighted the company's financial position, noting that ending the quarter with almost $27 million in cash provides resources to continue advancing stenoparib.
• Management emphasized pride in the accomplishments that position the company to drive stenoparib forward as rapidly as possible.

Other Key Points

• The company secured exclusive global rights for the development and commercialization of stenoparib, originally developed by Eisai Co. Ltd.
• The Phase 2 trial in ovarian cancer previously showed promising and durable clinical benefit in patients with two or more lines of prior therapy.
• The SCLC trial is being conducted across multiple VA medical centers throughout the United States.
• The DRP® platform is based on messenger RNA expression profiles and has been extensively published in peer-reviewed literature.
• The company's principal operations are located in Denmark, with a U.S. business address in Florida.