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Related Parties
 12 Months Ended
Dec. 31, 2025
Related Parties [Abstract]  
Related Parties

10. Related Parties

 

Mstone is a controlling shareholder of the Company. During the year ended December 31, 2025 and 2024, Mstone provided consulting services to the Company pursuant to the terms of the Service Agreement and the total expenses incurred for the years ended December 31, 2025 and 2024 were $1.6 million and $1.2 million, respectively. For the year ended December 31, 2025, of the $1.6 million incurred, $1.2 million was recorded as research and development expense and approximately $400 thousand was recorded as general and administrative expense. For the year ended December 31, 2024, of the $1.2 million incurred, approximately $900 thousand was recorded as research and development expense and approximately $300 thousand was recorded as general and administrative expense. Consulting fees paid to Mstone for the years ended December 31, 2025 and 2024 were $1.6 million and $1.4 million, respectively. As of December 31, 2025 and 2024, there was $91 thousand and $130 thousand due to Mstone, respectively, which is recorded in due to related party in the balance sheet.

 

In February 2024, the Company issued 22,172,461 shares of Common Stock to certain existing stockholders, of which Mstone received 15,819,504 shares, to enable them to be substantially aligned with the implied value of the Company as of the date determined by the Board (See Note 4).

 

In November 2021, the Company and Mstone entered a Service Agreement, pursuant to which Mstone provides certain support and business development-related services to the Company. In order to preserve capital for operating and clinical development expenses, in May 2023, the Company and Mstone entered into a Letter Agreement, pursuant to which the Company issued 1,250,000 shares of Common Stock (the “Share Obligation”) with an aggregate grant fair value of $5.6 million to Mstone as compensation for advisory services. For the year ended December 31, 2025, total stock-based compensation expense under this agreement was zero due to the expiration of the Letter Agreement in June 2024. For the year ended December 31, 2024, total stock-based compensation expense under this agreement was $2.3 million, of which $1.7 million was recorded as research and development expense and $578 thousand was recorded as general and administrative expense (See Note 5).

 

In January 2025, the Company entered into a Share Placement Agreement with Rush and Mstone, pursuant to which the Company issued 277,823 shares to Rush and 3,426,484 shares to Mstone at a price per share of $1.17 in exchange for an exclusive gene therapy patent license (See Note 4 and Note 9).

 

In April 2025, the Company paid $109 thousand under two statements of work pursuant to the Rush MSA. Total expenses incurred for the years ended December 31, 2025 and 2024 were $133 thousand and zero, respectively, which is recorded in research and development in the statement of operations and comprehensive loss. As of December 31, 2025 and 2024, there was $23 thousand and zero due to Rush, respectively, which is recorded in accrued expenses – related party in the balance sheet.