Yarrow Bioscience — Third Quarter 2026 Earnings Summary

Financial Performance:

• Cash and cash equivalents totaled $268.9 million as of September 30, 2026, compared to $99.994 million as of December 31, 2025.
• Research and development expenses were $5.3 million for the quarter, totaling $11.5 million for the nine months ended September 30, 2026.
• General and administrative expenses were $5.5 million for the quarter, totaling $8.8 million for the nine months ended September 30, 2026.
• Net loss was $9.7 million for the quarter and $19.0 million for the nine months ended September 30, 2026.
• Loss per share (basic and diluted) was $0.43 for the quarter and $1.97 for the nine months ended September 30, 2026.
• Total operating expenses were $10.7 million for the quarter and $20.3 million for the nine months ended September 30, 2026.
• Total other income, net was $1.0 million for the quarter and $1.3 million for the nine months ended September 30, 2026.
• Total assets increased to $274.0 million as of September 30, 2026, from $100.4 million as of December 31, 2025.
• Total liabilities decreased to $6.5 million as of September 30, 2026, from $71.5 million as of December 31, 2025.
• Stockholders' equity turned positive to $267.5 million as of September 30, 2026, from a deficit of $71.0 million as of December 31, 2025.
• Accumulated deficit increased to $(89.975) million as of September 30, 2026, from $(70.994) million as of December 31, 2025.
• Convertible preferred stock was fully redeemed, dropping from 14.5 million shares outstanding at December 31, 2025, to zero at September 30, 2026.

Guidance and Future Outlook:

• The Company expects its cash and cash equivalents to fund operations into 2030, including through the completion of the DIRECTION-GD trial and preparatory work for the next planned TED study.
• Topline results from the Phase 2a portion of the DIRECTION-GD trial are expected in the second half of 2027.
• The Phase 2b portion of the DIRECTION-GD trial is expected to begin enrolling patients in the first half of 2028.
• Data from GenSci's ongoing Phase 1 multiple ascending dose trial in TED are anticipated in the second half of 2027.

Business Segments and Product Lines:

• Enrollment is ongoing in the Phase 2a portion of the DIRECTION-GD trial, a Phase 2a/2b trial of YB-101 in patients with Graves' disease, with or without concomitant thyroid eye disease.
• YB-101 is a potential first-in-class anti-TSHR monoclonal antibody designed to disrupt the central mechanism of both Graves' disease and thyroid eye disease.
• YB-101 has received Fast Track Designation from the U.S. Food and Drug Administration.
• Licensing partner Changchun GeneScience Pharmaceutical Co., Ltd. continues to advance YB-101 (GenSci098) in Greater China.

Market and Competitive Landscape:

• Yarrow Bioscience is a clinical-stage biotechnology company focused on developing transformative therapies for autoimmune thyroid diseases.
• The DIRECTION-GD trial is a randomized, blinded, placebo-controlled two-part trial evaluating YB-101 versus placebo.
• The Phase 2a portion aims to enroll 32 patients across four cohorts to evaluate safety, pharmacokinetics, pharmacodynamics, and efficacy endpoints.

Risks and Challenges:

• Risks include the ability to manage expenses and unanticipated spending that could reduce cash resources.
• Risks include the ability to correctly estimate operating expenses and other events.
• Risks include changes in capital resource requirements and the inability to obtain sufficient additional capital to advance product candidates.
• Risks include the outcome of legal proceedings, the ability to obtain and maintain intellectual property rights, and the ability to advance development under anticipated timelines.
• Risks include the inability to replicate positive preclinical results in later clinical trials and the ability to obtain necessary regulatory approvals from the FDA.
• Risks include changes in clinical trial designs, regulatory pathways, competition, and legislative, regulatory, political, and economic developments.

Management Commentary and Tone:

• Rebecca V. Frey, PharmD, President and CEO, stated the Company made significant progress in the third quarter, including dosing the first patient in the Phase 2a portion of the DIRECTION-GD trial and strengthening the balance sheet.
• Management noted the financing extends the expected cash runway into 2030 and positions the Company to advance YB-101 in Graves' disease and prepare for next steps in thyroid eye disease.
• Management remains focused on executing the DIRECTION-GD trial and anticipates topline results from the Phase 2a portion and data from GenSci's Phase 1 trial in the second half of 2027.

Other Key Points:

• In July 2026, pre-merger Yarrow completed the merger with VYNE Therapeutics Inc., after which the combined company began trading on the Nasdaq Capital Market under the ticker symbol "YARW."
• In September 2026, the Company completed an underwritten public offering of 6,634,615 shares of common stock, including the full exercise of the underwriters' option, generating approximately $172.5 million in aggregate gross proceeds.
• As of September 30, 2026, the Company had approximately 11.5 million shares of common stock issued and outstanding and pre-funded warrants to purchase approximately 23.7 million additional shares.