0001707502falseQ1--12-310000000000000000http://fasb.org/srt/2025#ChiefExecutiveOfficerMember0001707502us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2025-12-310001707502sldb:AccruedExpensesOtherAndOtherCurrentLiabilitiesMember2025-12-310001707502us-gaap:PrivatePlacementMember2026-01-012026-03-310001707502us-gaap:FairValueInputsLevel2Member2026-03-310001707502sldb:AccruedCompensationMember2025-12-310001707502us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001707502us-gaap:OperatingSegmentsMembersldb:SGT003Member2025-01-012025-03-310001707502us-gaap:PerformanceSharesMember2026-01-012026-03-310001707502sldb:AmendedAndRestatedTwoThousandAndTwentyIncentivePlanMember2025-06-122025-06-120001707502sldb:Fa212LlcMember2024-09-192024-09-190001707502us-gaap:CommonStockMembersldb:March2026PrivatePlacementMember2026-03-092026-03-090001707502srt:MinimumMember2026-01-012026-03-3100017075022026-03-3100017075022026-01-012026-03-310001707502us-gaap:FairValueInputsLevel2Membersldb:TreasuryBillMember2026-03-3100017075022025-01-012025-12-310001707502us-gaap:OperatingSegmentsMembersldb:InternalResearchAndDevelopmentExpenseMember2025-01-012025-03-3100017075022025-01-012025-03-310001707502us-gaap:WarrantMember2026-01-012026-03-310001707502us-gaap:FairValueInputsLevel2Membersldb:GovernmentBondsMember2026-03-310001707502srt:MaximumMember2026-01-012026-03-310001707502sldb:Fa212LlcMember2026-01-310001707502sldb:TwoThousandAndTwentyFourInducementStockIncentivePlanMember2026-03-310001707502us-gaap:OperatingSegmentsMembersldb:SGT-212Member2025-01-012025-03-310001707502us-gaap:FairValueInputsLevel3Membersldb:TimingOfAchievingCertainDevelopmentMilestonesMembersrt:MaximumMember2025-12-310001707502us-gaap:RestrictedStockUnitsRSUMember2026-01-012026-03-310001707502us-gaap:AdditionalPaidInCapitalMember2024-12-310001707502us-gaap:CommonStockMember2025-12-310001707502sldb:GovernmentBondsMember2026-03-310001707502us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310001707502sldb:PreFundedWarrantsMembersldb:March2026PrivatePlacementMember2026-03-090001707502us-gaap:FairValueInputsLevel3Membersldb:ProbabilityOfAchievingCertainDevelopmentMilestonesMember2026-03-310001707502sldb:AtTheMarketPublicOfferingMemberus-gaap:AdditionalPaidInCapitalMember2026-01-012026-03-310001707502us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-310001707502us-gaap:EmployeeStockMember2025-01-012025-03-310001707502us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPriceVolatilityMembersrt:WeightedAverageMember2025-12-310001707502us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPriceVolatilityMember2025-12-310001707502us-gaap:FairValueInputsLevel3Membersrt:MinimumMembersldb:ProbabilityOfAchievingCertainDevelopmentMilestonesMember2025-12-3100017075022026-05-080001707502sldb:SGT501Memberus-gaap:OperatingSegmentsMember2025-01-012025-03-310001707502us-gaap:EmployeeStockOptionMember2025-01-012025-03-310001707502us-gaap:FairValueInputsLevel3Member2025-12-310001707502sldb:GovernmentBondsMember2025-12-310001707502sldb:UnvestedStockOptionsMember2026-03-310001707502us-gaap:RetainedEarningsMember2025-12-310001707502sldb:AtTheMarketPublicOfferingMemberus-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-310001707502us-gaap:RetainedEarningsMember2026-01-012026-03-310001707502us-gaap:CommonStockMember2024-12-310001707502us-gaap:AdditionalPaidInCapitalMember2026-01-012026-03-310001707502us-gaap:RestrictedStockUnitsRSUMembersldb:TwoThousandAndTwentyEquityIncentivePlanMember2026-03-310001707502us-gaap:PerformanceSharesMember2026-01-012026-03-310001707502sldb:Fa212LlcMember2024-12-310001707502us-gaap:EmployeeStockMember2026-01-012026-03-310001707502us-gaap:OperatingSegmentsMembersldb:ExternalResearchAndDevelopmentOtherMember2026-01-012026-03-310001707502sldb:AmendedAndRestatedTwoThousandAndTwentyIncentivePlanMember2024-06-112024-06-110001707502us-gaap:CommonStockMemberus-gaap:PrivatePlacementMember2026-01-012026-03-310001707502sldb:AtTheMarketPublicOfferingMemberus-gaap:CommonStockMember2025-01-012025-03-310001707502us-gaap:ResearchAndDevelopmentExpenseMember2026-01-012026-03-310001707502us-gaap:CommonStockMember2025-03-310001707502us-gaap:CommonStockMembersldb:March2026PrivatePlacementMember2026-03-090001707502sldb:AccruedResearchAndDevelopmentExpenseMember2026-03-310001707502sldb:Fa212LlcMember2026-03-310001707502us-gaap:FairValueInputsLevel2Membersldb:TreasuryBillMember2025-12-310001707502us-gaap:CommonStockMembersldb:February2025OfferingMember2025-02-192025-02-190001707502us-gaap:OperatingSegmentsMembersldb:InternalResearchAndDevelopmentExpenseMember2026-01-012026-03-310001707502us-gaap:GeneralAndAdministrativeExpenseMember2026-01-012026-03-310001707502us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-03-310001707502sldb:Fa212LlcMembersrt:MaximumMember2024-09-300001707502us-gaap:MoneyMarketFundsMember2026-03-310001707502us-gaap:EmployeeStockOptionMember2026-01-012026-03-310001707502us-gaap:CommonStockMember2026-01-012026-03-310001707502sldb:UnvestedStockOptionsMember2026-01-012026-03-3100017075022025-12-310001707502us-gaap:OperatingSegmentsMembersldb:SGT-212Member2026-01-012026-03-310001707502us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-01-012026-03-310001707502sldb:ServiceBasedAwardsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2026-01-012026-03-310001707502us-gaap:PrivatePlacementMemberus-gaap:AdditionalPaidInCapitalMember2026-01-012026-03-310001707502us-gaap:FairValueInputsLevel2Member2025-12-310001707502sldb:ServiceBasedAwardsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2026-01-012026-03-310001707502us-gaap:OperatingSegmentsMembersldb:ExternalResearchAndDevelopmentOtherMember2025-01-012025-03-310001707502us-gaap:RetainedEarningsMember2025-01-012025-03-310001707502sldb:Fa212LlcMemberus-gaap:CommonStockMember2025-02-282025-02-280001707502us-gaap:EmployeeStockOptionMember2026-01-012026-03-310001707502sldb:PreFundedWarrantsMember2025-01-012025-03-310001707502us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMember2026-03-310001707502us-gaap:FairValueInputsLevel3Membersldb:TimingOfAchievingCertainDevelopmentMilestonesMember2026-03-310001707502us-gaap:CommonStockMembersldb:February2025OfferingMember2025-02-190001707502us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-310001707502sldb:AtTheMarketPublicOfferingMember2025-01-012025-03-310001707502us-gaap:FairValueInputsLevel3Membersrt:MaximumMembersldb:ProbabilityOfAchievingCertainDevelopmentMilestonesMember2025-12-310001707502us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-03-310001707502us-gaap:WarrantMember2025-01-012025-03-310001707502us-gaap:PerformanceSharesMember2025-12-310001707502sldb:AccruedExpensesOtherAndOtherCurrentLiabilitiesMember2026-03-310001707502sldb:PreFundedWarrantsMembersldb:February2025OfferingMember2025-02-190001707502sldb:Fa212LlcMember2026-01-152026-01-150001707502sldb:AccruedResearchAndDevelopmentExpenseMember2025-12-310001707502us-gaap:OperatingSegmentsMembersldb:InternalGeneralAndAdministrativeExpenseMember2026-01-012026-03-310001707502us-gaap:RetainedEarningsMember2026-03-310001707502sldb:AtTheMarketPublicOfferingMemberus-gaap:CommonStockMember2026-01-012026-03-310001707502us-gaap:FairValueInputsLevel3Membersrt:MinimumMembersldb:TimingOfAchievingCertainDevelopmentMilestonesMember2025-12-310001707502us-gaap:MoneyMarketFundsMember2025-12-310001707502sldb:TwoThousandAndTwentyEquityIncentivePlanMember2026-03-310001707502us-gaap:AdditionalPaidInCapitalMember2025-03-310001707502sldb:AccruedCompensationMember2026-03-310001707502us-gaap:FairValueInputsLevel3Member2026-03-310001707502us-gaap:RestrictedStockUnitsRSUMember2025-12-310001707502us-gaap:RestrictedStockUnitsRSUMembersldb:TwoThousandAndTwentyFourInducementStockIncentivePlanMember2026-03-310001707502us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMembersldb:TimingOfAchievingCertainDevelopmentMilestonesMember2025-12-310001707502us-gaap:GeneralAndAdministrativeExpenseMember2025-01-012025-03-310001707502sldb:Fa212LlcMember2024-07-012024-09-300001707502us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310001707502us-gaap:PerformanceSharesMember2026-03-310001707502us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPriceVolatilityMember2026-03-310001707502us-gaap:FairValueInputsLevel3Membersrt:MinimumMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001707502sldb:February2025OfferingMember2025-02-192025-02-190001707502us-gaap:AdditionalPaidInCapitalMember2026-03-310001707502us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMembersldb:ProbabilityOfAchievingCertainDevelopmentMilestonesMember2025-12-310001707502sldb:TreasuryBillMember2025-12-310001707502sldb:OfficeAndLaboratoryLeaseMember2026-03-3100017075022025-03-310001707502us-gaap:AdditionalPaidInCapitalMember2025-12-310001707502sldb:OutlicenseAgreementsMember2026-03-310001707502us-gaap:OperatingSegmentsMembersldb:ExternalGeneralAndAdministrativeExpenseMember2026-01-012026-03-3100017075022024-12-310001707502us-gaap:RetainedEarningsMember2024-12-310001707502us-gaap:AccumulatedOtherComprehensiveIncomeMember2026-03-310001707502us-gaap:FairValueInputsLevel3Membersrt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMember2025-12-310001707502sldb:Fa212LlcMember2024-09-300001707502us-gaap:RestrictedStockUnitsRSUMember2026-03-310001707502us-gaap:OperatingSegmentsMembersldb:ExternalGeneralAndAdministrativeExpenseMember2025-01-012025-03-310001707502sldb:Fa212LlcMembersrt:MaximumMember2024-07-012024-09-300001707502sldb:AtTheMarketPublicOfferingMember2026-01-012026-03-310001707502us-gaap:OperatingSegmentsMembersldb:SGT003Member2026-01-012026-03-310001707502us-gaap:RetainedEarningsMember2025-03-310001707502us-gaap:OperatingSegmentsMember2025-01-012025-03-310001707502us-gaap:PerformanceSharesMember2024-06-012024-06-300001707502us-gaap:RestrictedStockUnitsRSUMember2026-01-012026-03-310001707502sldb:March2026PrivatePlacementMember2026-03-092026-03-090001707502sldb:ServiceBasedAwardsMember2026-01-012026-03-310001707502us-gaap:PerformanceSharesMembersldb:TwoThousandAndTwentyEquityIncentivePlanMember2026-03-310001707502us-gaap:ResearchAndDevelopmentExpenseMember2025-01-012025-03-310001707502us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2025-12-310001707502us-gaap:PerformanceSharesMember2025-01-012025-03-310001707502sldb:OfficeAndLaboratoryLeaseMember2025-12-310001707502us-gaap:CommonStockMember2026-03-310001707502sldb:PreFundedWarrantsMember2026-01-012026-03-310001707502us-gaap:OperatingSegmentsMembersldb:InternalGeneralAndAdministrativeExpenseMember2025-01-012025-03-310001707502us-gaap:PerformanceSharesMember2025-01-012025-03-310001707502us-gaap:EmployeeStockOptionMember2025-01-012025-03-310001707502us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2026-03-310001707502us-gaap:OperatingSegmentsMember2026-01-012026-03-310001707502sldb:TwoThousandAndTwentyFourInducementStockIncentivePlanMember2024-03-310001707502us-gaap:FairValueInputsLevel2Membersldb:GovernmentBondsMember2025-12-310001707502sldb:SGT501Memberus-gaap:OperatingSegmentsMember2026-01-012026-03-310001707502us-gaap:CommonStockMember2025-01-012025-03-310001707502sldb:Fa212LlcMember2025-12-310001707502sldb:TreasuryBillMember2026-03-31iso4217:USDxbrli:sharesxbrli:purexbrli:sharesiso4217:USDsldb:Segmentutr:Y

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File Number: 001-38360

Solid Biosciences Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware		90-0943402
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

500 Rutherford Avenue, Third Floor Charlestown, MA		02129
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (617) 337-4680

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock, $0.001 par value per share	SLDB	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 8, 2026, the registrant had 98,449,606 shares of common stock, $0.001 par value per share, outstanding.

SOLID BIOSCIENCES INC.

TABLE OF CONTENTS


		Page
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA		1

PART I.	FINANCIAL INFORMATION	3
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets at March 31, 2026 and December 31, 2025	3
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025	4
	Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2026 and 2025	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2026 and 2025	6
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025	8
	Notes to the Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29

PART II.	OTHER INFORMATION	31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	85
Item 5.	Other Information	85
Item 6.	Exhibits	86

SIGNATURES		87

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA

This Quarterly Report on Form 10-Q includes forward-looking statements, which involve risks and uncertainties. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believe,” “estimate,” “project,” “anticipate,” “expect,” “seek,” “predict,” “aim,” “continue,” “possible,” “intend,” “may,” “might,” “will,” “could,” “would” or “should” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this Quarterly Report on Form 10-Q. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are based upon information available to us on the date of this Quarterly Report on Form 10-Q.

The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things, statements about:

•

the timing, progress, design and results of ongoing and planned preclinical studies and clinical trials for our neuromuscular (e.g., SGT-003, SGT-212), cardiac (e.g., SGT-501, SGT-601) or other future candidates;

•

our ability to establish or maintain collaborations or strategic relationships;

•

our ability to obtain and maintain U.S. and foreign regulatory approval of our neuromuscular (e.g., SGT-003, SGT-212), cardiac (e.g., SGT-501, SGT-601) or other future candidates, and the timing and scope thereof;

•

the timing and outcomes of regulatory interactions;

•

the size of the patient populations and potential market opportunity for our neuromuscular (e.g., SGT-003, SGT-212), cardiac (e.g., SGT-501, SGT-601) or other future candidates, if approved for commercial use;

•

our manufacturing capabilities and strategy, including capacity constraints and the scalability and commercial viability of our manufacturing methods and processes;

•

our plans to develop and commercialize our neuromuscular (e.g., SGT-003, SGT-212), cardiac (e.g., SGT-501, SGT-601) or other future candidates, if approved;

•

the pricing and reimbursement of our neuromuscular (e.g., SGT-003, SGT-212), cardiac (e.g., SGT-501, SGT-601) or other future candidates we may develop, if approved;

•

the establishment of sales, marketing and distribution capabilities and entry into agreements with third parties to market and sell our neuromuscular (e.g., SGT-003, SGT-212), cardiac (e.g., SGT-501, SGT-601) or other future candidates, if approved;

•

the rate and degree of market acceptance and clinical utility of our neuromuscular (e.g., SGT-003, SGT-212), cardiac (e.g., SGT-501, SGT-601) or other future candidates, if approved;

•

our plans to develop our platform technologies;

•

our expectations related to our use of capital resources;

•

our estimates regarding expenses, ongoing losses, future revenue, capital requirements, and need for and ability to obtain additional financing;

•

our intellectual property position;

•

our competitive and market position;

•

developments relating to our competitors and our industry;

•

our ability to continue as a going concern; and

•

the impact of laws, regulations, and global political and economic developments, including the imposition of tariffs or other trade restrictions, on our business, operations, strategy and goals.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition, business and prospects may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report on Form 10-Q. In addition, even if our results of operations, financial condition, business and prospects are consistent with the forward-looking statements contained in this Quarterly Report on Form 10-Q, those results may not be indicative of results to be expected in subsequent periods.

You should read this Quarterly Report on Form 10-Q and the documents that we have filed as exhibits to this Quarterly Report on Form 10-Q completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date of this Quarterly Report on Form 10-Q, and we do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

This Quarterly Report on Form 10-Q includes statistical and other industry and market data that we obtained from industry publications and research, surveys and studies conducted by third parties as well as our own estimates of potential market opportunities based on our analysis of these data, research, surveys and studies. All of the market data used in this Quarterly Report on Form 10-Q involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such data. Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. Our estimates of the potential market opportunities for our candidates include a number of key assumptions based on our industry knowledge, industry publications and third-party research, surveys and studies, which may be based on a small sample size and fail to accurately reflect market opportunities. While we believe that our internal assumptions are reasonable, no independent source has verified such assumptions.

As used in this Quarterly Report on Form 10-Q, the terms “Solid,” “the Company,” “we,” “us” and “our” refer to Solid Biosciences Inc., and its consolidated subsidiaries, unless the context indicates otherwise. Solid Biosciences Inc. was organized in March 2013 under the name SOLID Ventures Management, LLC and operated as a Delaware limited liability company until immediately prior to the effectiveness of its registration statement on Form S-1 on January 25, 2018, at which time it completed a statutory corporate conversion into a Delaware corporation and changed its name to Solid Biosciences Inc.

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands, except share and per share data)


	March 31,			December 31,
	2026			2025
Assets
Current assets:
Cash and cash equivalents	$	297,099		$	59,900
Available-for-sale securities		83,581			127,950
Prepaid expenses and other current assets		15,470			16,384
Restricted cash, current		638			1,222
Total current assets		396,788			205,456
Non-current assets:
Operating lease, right-of-use assets		21,300			21,924
Property and equipment, net		3,914			4,169
Other non-current assets		183			223
Restricted cash, net of current portion		708			768
Total non-current assets		26,105			27,084
Total assets	$	422,893		$	232,540
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	5,563		$	3,224
Accrued expenses and other current liabilities		19,182			18,945
Operating lease liabilities, current		2,188			2,103
Derivative liabilities		3,350			9,200
Total current liabilities		30,283			33,472
Non-current liabilities:
Operating lease liabilities, net of current portion		18,478			19,058
Total non-current liabilities		18,478			19,058
Total liabilities		48,761			52,530
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized at March 31, 2026 and December 31, 2025; no shares issued or outstanding at March 31, 2026 and December 31, 2025		—			—
Common stock, $0.001 par value; 240,000,000 shares authorized at March 31, 2026 and December 31, 2025; 98,394,720 and 78,967,888 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively		98			79
Additional paid-in capital		1,388,559			1,137,654
Accumulated other comprehensive (loss) income		(13	)		52
Accumulated deficit		(1,014,512	)		(957,775	)
Total stockholders’ equity		374,132			180,010
Total liabilities and stockholders’ equity	$	422,893		$	232,540

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except share and per share data)


	Three Months Ended March 31,
	2026			2025
Operating expenses:
Research and development	$	46,140		$	30,914
General and administrative		11,168			9,138
Total operating expenses		57,308			40,052
Loss from operations		(57,308	)		(40,052	)
Other income, net:
Interest income		2,064			2,300
Interest expense		—			(68	)
Change in fair value of derivative liabilities		(1,650	)		(1,650	)
Other income, net		157			188
Total other income, net		571			770
Net loss	$	(56,737	)	$	(39,282	)
Net loss per share, basic and diluted	$	(0.52	)	$	(0.59	)
Weighted average shares of common stock outstanding, used to compute basic and diluted net loss per share		109,811,461			66,341,305

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(in thousands)


	Three Months Ended March 31,
	2026			2025
Net loss	$	(56,737	)	$	(39,282	)
Other comprehensive loss:
Unrealized loss on available-for-sale securities		(65	)		(45	)
Comprehensive loss	$	(56,802	)	$	(39,327	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

(in thousands, except share data)


	Three Months Ended March 31, 2026
	Common Stock				Additional Paid-in			Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares		Amount		Capital			(Loss) Income			Deficit			Equity
Balance at January 1, 2026		78,967,888	$	79	$	1,137,654		$	52		$	(957,775	)	$	180,010
Issuance of common stock in private placement, net of issuance costs of $4,776		14,973,257		15		79,209			—			—			79,224
Issuance of pre-funded warrants in private placement, net of issuance costs of $8,868		—		—		147,104			—			—			147,104
Issuance of common stock in private placement for payment of developmental milestone consideration		1,316,899		1		7,499			—			—			7,500
Issuance of common stock in at-the-market public offering, net of sales commissions of $275		1,937,623		2		11,925			—			—			11,927
Vesting of restricted and performance stock units		1,193,931		1		(1	)		—			—			—
Exercise of common stock options		5,122		—		17			—			—			17
Unrealized loss on available-for-sale securities		—		—		—			(65	)		—			(65	)
Equity-based compensation expense		—		—		5,152			—			—			5,152
Net loss		—		—		—			—			(56,737	)		(56,737	)
Balance at March 31, 2026		98,394,720	$	98	$	1,388,559		$	(13	)	$	(1,014,512	)	$	374,132

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

(in thousands, except share data)


	Three Months Ended March 31, 2025
	Common Stock				Additional Paid-in		Accumulated Other Comprehensive			Accumulated			Total Stockholders'
	Shares		Amount		Capital		Income			Deficit			Equity
Balance at January 1, 2025		40,468,141	$	40	$	920,609	$	47		$	(783,450	)	$	137,246
Issuance of common stock in public offering, net of issuance costs of $8,665		35,739,810		36		135,331		—			—			135,367
Issuance of pre-funded warrants in public offering, net of issuance costs of $3,366		—		—		52,590		—			—			52,590
Issuance of common stock in private placement for payment of developmental milestone consideration		975,496		1		4,999		—			—			5,000
Issuance of common stock in at-the-market public offering, net of sales commissions of $6		61,542		—		246		—			—			246
Vesting of restricted stock units		247,970		—		—		—			—			—
Unrealized loss on available-for-sale securities		—		—		—		(45	)		—			(45	)
Equity-based compensation expense		—		—		3,341		—			—			3,341
Net loss		—		—		—		—			(39,282	)		(39,282	)
Balance at March 31, 2025		77,492,959	$	77	$	1,117,116	$	2		$	(822,732	)	$	294,463

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	Three Months Ended March 31,
	2026			2025
Cash flows from operating activities:
Net loss	$	(56,737	)	$	(39,282	)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on available-for-sale securities		(619	)		(312	)
Equity-based compensation expense		5,152			3,341
Depreciation and amortization expense		395			407
Non-cash lease expense		623			575
Change in fair value of derivative liabilities		1,650			1,650
Other		—			(22	)
Changes in operating assets and liabilities:
Prepaid expenses and other assets		954			2,023
Accounts payable		2,321			461
Change in operating lease liability		(496	)		(416	)
Accrued expenses and other liabilities		(473	)		(275	)
Net cash used in operating activities		(47,230	)		(31,850	)
Cash flows from investing activities:
Purchases of property and equipment		(165	)		(126	)
Proceeds from maturities of available-for-sale securities		128,380			38,000
Purchases of available-for-sale securities		(83,457	)		(65,337	)
Net cash provided by (used in) investing activities		44,758			(27,463	)
Cash flows from financing activities:
Proceeds from issuance of common stock and pre-funded warrants in public offering, net of underwriting discounts and commissions		—			189,637
Payments of common stock and pre-funded warrants issuance costs in public offering		—			(20	)
Proceeds from issuance of common stock and pre-funded warrants in private placement		239,972			—
Payments of common stock and pre-funded warrants issuance costs in private placement		(12,890	)		—
Proceeds from issuance of common stock in at-the-market public offering, net of sales commissions		11,927			246
Proceeds from exercises of common stock options		18			—
Payments of principal portion of finance lease obligations		—			(135	)
Net cash provided by financing activities		239,027			189,728
Net increase in cash, cash equivalents, and restricted cash		236,555			130,415
Cash, cash equivalents, and restricted cash at beginning of period		61,890			82,187
Cash, cash equivalents, and restricted cash at end of period	$	298,445		$	212,602


	Three Months Ended March 31,
	2026		2025
Supplemental disclosure of cash flow information:
Cash paid for interest	$	—	$	68
Supplemental disclosure of non-cash investing, financing and operating activities:
Common stock issued as payment for developmental milestone consideration	$	7,500	$	5,000
Property and equipment purchases included in accounts payable and accrued expenses	$	25	$	80

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SOLID BIOSCIENCES INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(Unaudited)

(in thousands)

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the amounts reported in the condensed consolidated statements of cash flows:


	March 31,
	2026		2025
Cash and cash equivalents	$	297,099	$	210,629
Restricted cash, current		638		—
Restricted cash, net of current portion		708		1,973
Total cash, cash equivalents, and restricted cash, as reported in the condensed consolidated statements of cash flows	$	298,445	$	212,602

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

SOLID BIOSCIENCES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(amounts in thousands, except share and per share data and where otherwise noted)

1. Nature of the Business and Basis of Presentation

Nature of Business

Solid Biosciences Inc. (the “Company”) is a life sciences company focused on advancing a portfolio of current and future gene therapy candidates (collectively “Candidates”), including SGT-003 for the treatment of Duchenne muscular dystrophy (“Duchenne”), SGT-212 for the treatment of Friedreich’s ataxia (“FA”), SGT-501 for the treatment of catecholaminergic polymorphic ventricular tachycardia, SGT-601 for the treatment of TNNT2-mediated dilated cardiomyopathy, and additional assets for the treatment of genetic cardiac and neuromuscular diseases, at different stages of development with varying levels of investment. The Company is advancing its diverse pipeline across rare neuromuscular and cardiac diseases, bringing together experts in science, technology, disease management and care. Patient-focused and founded by those directly impacted by Duchenne, the Company’s mission is to improve the daily lives of patients living with these devastating diseases.

The Company is subject to risks and uncertainties common to early-stage companies in the biotechnology industry, including, but not limited to, development by competitors of new technological innovations, dependence on licenses, protection of proprietary technology, dependence on key personnel, compliance with government regulations, and the need to obtain additional financing to fund operations. Candidates currently under development will require significant additional research and development efforts, including extensive preclinical studies and clinical trials and regulatory approval, prior to commercialization. These efforts require significant amounts of additional capital, adequate personnel infrastructure, and extensive compliance and reporting capabilities.

The Company’s Candidates are in development. There can be no assurance that the Company’s research and development will be successfully completed, that adequate protection for the Company’s intellectual property will be obtained, that any products developed will obtain necessary government regulatory approval, or that any approved products will be commercially viable. Even if the Company’s product development efforts are successful, it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company operates in an environment of rapid change in technology and substantial competition from, among others, other pharmaceutical and biotechnology companies. In addition, the Company is dependent upon the services of its employees, partners, and consultants.

Liquidity

Based upon its current operating plan, the Company expects that its cash, cash equivalents and available-for-sale securities of $380.7 million, excluding restricted cash of $1.3 million, as of March 31, 2026, will be sufficient to fund its operating expenses and capital expenditure requirements for at least twelve months from the date of issuance of these condensed consolidated financial statements. However, the Company has based this estimate on assumptions that may prove to be wrong, and its operating plan may change as a result of many factors currently unknown to it. As a result, the Company could deplete its capital resources sooner than it currently expects.

Through March 31, 2026, the Company has funded its operations primarily with the proceeds from the sale of redeemable preferred units and member units prior to its initial public offering, as well as the sale of common stock and pre-funded warrants to purchase shares of its common stock in private placements (including the March 2026 Private Placement (as defined below)), the sale of common stock in its initial public offering, follow-on public offerings in March 2021 and February 2025 and under its at-the-market sales agreement.

The Company expects to continue to generate operating losses for the foreseeable future and to finance its future cash needs through a combination of equity offerings, debt financings, collaborations, strategic partnerships and alliances or licensing arrangements. If the Company is unable to obtain funding, the Company would be forced to delay, reduce or eliminate some or all of its research and development programs, preclinical and clinical testing or commercialization efforts, which could adversely affect its business prospects.

Basis of Presentation

These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) along with the rules and regulations of the Securities and Exchange Commission for interim financial information and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP to constitute a complete set of financial statements. These condensed consolidated financial statements have been prepared on the same

basis as the Company’s annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary for a fair statement of the Company’s financial position at March 31, 2026 and its results of operations, changes in stockholders’ equity, and cash flows for the interim periods ended March 31, 2026 and 2025.

These unaudited condensed consolidated interim financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the operating results to be expected for the year ending December 31, 2026, for any other interim period, or for any other future year.

Significant Judgments and Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these condensed consolidated financial statements include, but are not limited to, estimates related to the recognition of research and development expenses, equity-based compensation, and derivative liabilities. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ materially from the Company’s estimates.

Summary of Significant Accounting Policies

There have been no changes to the significant accounting policies disclosed in the Company's most recent Annual Report on Form 10‑K.

Recently Issued Accounting Pronouncements

In November 2024, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2024‑03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Sub‑Topic 220‑40): Disaggregation of Income Statement Expenses,” which requires additional disclosure of the nature of expenses included in the income statement. The standard requires disclosures about specific types of expenses included in the expense captions presented in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures.

In December 2025, the FASB issued ASU No. 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements”. This ASU clarifies and improves existing interim reporting guidance by consolidating disclosure requirements within Topic 270 and introducing a disclosure principle requiring entities to disclose events and changes occurring after the most recent annual reporting period that are expected to have a material effect on the entity’s financial condition or results of operations. The ASU does not introduce significant changes to recognition or measurement guidance. The amendments in this ASU are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the effect of adopting this ASU on its consolidated financial statements and disclosures.

2. FA212 Asset Acquisition

On September 19, 2024, the Company entered into an asset purchase agreement with FA212 LLC (“FA212”) for the purchase of certain intellectual property, including patents and assigned licenses related to a preclinical drug candidate, which the Company now refers to as SGT-212, assigned manufacturing contracts as well as research and development materials such as manufactured materials and samples.

The Company paid FA212 an upfront payment of $1.0 million in the third quarter of 2024. Additionally, the Company agreed to pay FA212 development milestone payments of up to $34.0 million, cumulative sales milestone payments of up to $21.0 million, and tiered royalties on net sales in the low-single-digits. The Company also assumed from FA212 contingent development milestone payments of up to $4.2 million, regulatory milestone payments of up to $13.0 million, cumulative sales milestone payments of up to $27.5 million, and tiered royalties on worldwide net sales in the mid-single digits payable to the University of Pennsylvania.

Certain development milestone payments to FA212 are payable in either cash, equity, or a combination of both, at the Company's discretion. Such contingent payments were determined to be derivative liabilities and were initially recorded at their fair value of $3.4 million.

The Company determined that the FA212 agreement represented an asset acquisition of in-process research and development assets with no alternative future use and recognized the aggregate acquisition cost of $5.1 million as research and development expense in the third quarter of 2024, which included the upfront payment, initial recognition of the derivative liability, and $0.7 million in transaction costs.

The Company submitted an investigational new drug application (“IND”) for SGT-212 for the treatment of FA to the U.S. Food and Drug Administration (“FDA”), which was cleared in December 2024. Upon clearance of the IND, the first development milestone of $5.0 million became payable to FA212. On February 28, 2025, the Company made the first development milestone payment in the form of 975,496 shares of its common stock. Following the dosing of the first participant in the Phase 1b FALCON clinical trial of SGT-212 in January 2026, a $7.5 million development milestone became payable to FA212 LLC. On January 15, 2026, the Company made the second milestone payment in the form of 1,316,899 shares of its common stock. The derivative liability for the final contingent payment was recorded at a fair value of $3.4 million as of March 31, 2026. The derivative liabilities for contingent payments as of December 31, 2025 were recorded at an aggregate fair value of $9.2 million. See Note 4 - Fair Value Measurements.

3. Out-License Agreements

From time to time, the Company enters into non-exclusive license and collaboration agreements for the out-licensing of POLARIS‑101TM, its proprietary, rationally designed capsid technology used in SGT-003, to both companies and academic institutions pursuing treatments for rare diseases. These arrangements may entitle the Company to receive non-refundable upfront payments, contingent obligations for potential developmental, regulatory, and commercial performance milestone payments, cost reimbursement arrangements, product supply and royalty payments as a percentage of worldwide license product sales. At March 31, 2026, potential future milestone payments to which the Company may be entitled to under these agreements totaled an aggregate of $97.1 million. None of these milestones were assessed to be probable as of March 31, 2026.

4. Fair Value Measurements

The following tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis:


	March 31, 2026
	Level 1		Level 2		Level 3		Total
Financial assets
Cash equivalents:
Money market funds	$	—	$	213,724	$	—	$	213,724
Treasury bills		—		74,212		—		74,212
Total cash equivalents		—		287,936		—		287,936
Available-for-sale securities (Note 5):
Treasury bills		—		78,562		—		78,562
Government bonds		—		5,019		—		5,019
Total available-for-sale securities		—		83,581		—		83,581
Total financial assets	$	—	$	371,517	$	—	$	371,517

Financial liabilities
Derivative liabilities (Note 2):	$	—	$	—	$	3,350	$	3,350
Total financial liabilities	$	—	$	—	$	3,350	$	3,350


	December 31, 2025
	Level 1		Level 2		Level 3		Total
Financial assets
Cash equivalents:
Money market funds	$	—	$	51,333	$	—	$	51,333
Total cash equivalents		—		51,333		—		51,333
Available-for-sale securities (Note 5):
Treasury bills		—		72,932		—		72,932
Government bonds		—		55,018		—		55,018
Total available-for-sale securities		—		127,950		—		127,950
Total financial assets	$	—	$	179,283	$	—	$	179,283
Financial liabilities
Derivative liabilities (Note 2):	$	—	$	—	$	9,200	$	9,200
Total financial liabilities	$	—	$	—	$	9,200	$	9,200

As of March 31, 2026 and December 31, 2025, the fair values of the Company’s cash equivalents and available-for-sale securities were determined using Level 2 inputs.

The Company estimated the fair value of the derivative liabilities by using a Monte Carlo simulation forecasting the timing and likelihood of certain development milestone events being achieved and discounting the probability of adjusted payments using an appropriate discount rate based on market interest rates. The main assumptions when determining the fair value of the derivative liabilities are the timing and probability of achieving certain milestones, the estimated volatility of the Company’s common stock, and the discount rate. The estimated fair value presented is not necessarily indicative of an amount that could be realized in a current market exchange. The use of alternative inputs and estimation methodologies could have a material effect on these estimates of fair value.

The significant unobservable inputs used in valuing the developmental milestone derivative liabilities at each measurement date are as follows:


	March 31, 2026	December 31, 2025
Unobservable Input	Range	Range	Average
Probability of achieving certain development milestones	60.0%	40.0% - 100.0%	70.0%
Volatility	100.0%	98.0%	98.0%
Discount rate	3.8%	3.5% - 3.7%	3.6%
Timing of achieving certain development milestones	2.5 years	0.1 - 2.8 years	1.4 years

The following table presents a roll forward of activity associated with the Company’s derivative liabilities measured using Level 3 inputs:


	Developmental Milestone Derivative Liabilities
Fair value of derivative liabilities as of January 1, 2026	$	9,200
Change in fair value of derivative liabilities		1,650
Common stock issued as payment for developmental milestone consideration		(7,500	)
Fair value of derivative liabilities as of March 31, 2026	$	3,350

The Company recognized a $1.7 million loss for the change in fair value of derivative liabilities during the three months ended March 31, 2026 and 2025.

It is the Company's policy to recognize transfers between levels of the fair value hierarchy, if any, at the end of the reporting period. During the three months ended March 31, 2026, and the year ended December 31, 2025, there were no transfers between Level 1, Level 2, and Level 3.

As of March 31, 2026, and December 31, 2025, the Company's accounts payable, accrued expenses, and other current liabilities approximated their estimated fair values due to the short-term nature of these financial instruments.

5. Available-for-Sale Securities

A summary of the Company's available-for-sale securities is presented below:


	March 31, 2026
Description	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
Treasury bills maturing in one year or less	$	78,572	$	—	$	(10	)	$	78,562
Government bonds maturing in one year or less		5,022		—		(3	)		5,019
Total available-for-sale securities	$	83,594	$	—	$	(13	)	$	83,581


	December 31, 2025
Description	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Treasury bills maturing in one year or less	$	72,902	$	30	$	—	$	72,932
Government bonds maturing in one year or less		54,996		22		—		55,018
Total available-for sale securities	$	127,898	$	52	$	—	$	127,950

The weighted average contractual maturity of the Company’s available-for-sale securities was approximately 0.4 years and 0.6 years as of March 31, 2026, and December 31, 2025, respectively.

6. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:


	March 31, 2026		December 31, 2025
Prepaid research and development expenses	$	12,494	$	13,969
Prepaid other and other current assets		2,976		2,415
Total	$	15,470	$	16,384

7. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:


	March 31, 2026		December 31, 2025
Accrued research and development expenses	$	12,357	$	8,651
Accrued compensation		4,383		8,815
Accrued other and other current liabilities		2,442		1,479
Total	$	19,182	$	18,945

8. Stockholders' Equity

On February 19, 2025, the Company issued and sold 35,739,810 shares of its common stock at a price per share of $4.03 and, to certain investors in lieu of shares of common stock, pre-funded warrants to purchase 13,888,340 shares of common stock at a price of $4.029 per pre-funded warrant (the “February 2025 Offering”). The Company received approximately $188.0 million of net proceeds from the February 2025 Offering after deducting underwriting discounts and commissions and offering costs.

On March 9, 2026, the Company issued and sold 14,973,257 shares of its common stock at a price of $5.61 per share, and, to certain investors in lieu of shares of common stock, pre-funded warrants to purchase 27,807,482 shares of its common stock at a price of $5.609 per pre-funded warrant (the “March 2026 Private Placement”). The Company received approximately $226.3 million of aggregate net proceeds from the March 2026 Private Placement after deducting offering costs.

The Company determined the pre-funded warrants met the criteria for equity classification. No warrants were exercised during the three months ended March 31, 2026.

9. Equity-Based Compensation

Equity-Based Compensation Expense

The Company has classified equity-based compensation expense in its condensed consolidated statements of operations as follows:


	Three Months Ended March 31,
	2026		2025
Research and development	$	1,900	$	1,102
General and administrative		3,252		2,239
Total	$	5,152	$	3,341

Equity Incentive Plans

As of March 31, 2026, the Company’s approved equity incentive plans include: the 2018 Omnibus Incentive Plan (the “2018 Plan”); Amended and Restated 2020 Equity Incentive Plan, as amended (the “2020 Plan”); the Amended and Restated 2021 Employee Stock Purchase Plan; and the 2024 Inducement Stock Incentive Plan (the “2024 Plan”). These plans are administered by the Board of Directors (the “Board”) and permit the granting of stock options, stock appreciation rights, restricted stock, restricted stock units (the “RSUs”), performance awards, and other stock-based or cash-based awards. Upon the adoption of the 2020 Plan, the Company no longer grants new equity awards under its 2018 Plan. Service based awards to employees generally vest over a four-year period with 25% of such awards vesting following twelve months of continued employment or service. The remaining awards vest in either monthly or yearly installments over the following three years. Stock options granted under the Company’s equity incentive plans expire ten years from the date of grant.

Amended and Restated 2020 Equity Incentive Plan

On June 12, 2025 and June 11, 2024, the Company's stockholders approved amendments to the 2020 Plan to increase the number of shares of common stock reserved for issuance under the plan by 9,000,000 shares and 2,000,000 shares, respectively. As of March 31, 2026, there were 5,272,653 stock options outstanding, 4,426,590 RSUs outstanding, 1,555,642 performance stock units outstanding, and 9,412,791 shares remained available for future issuance under the 2020 Plan.

2024 Inducement Stock Incentive Plan

In March 2024, the Board approved the 2024 Plan, which provides for the reservation of 1,000,000 shares of common stock for equity granted as an inducement material to the individual’s entering into employment with the Company and in accordance with the requirements of Nasdaq Stock Market Rule 5635(c)(4). As of March 31, 2026, there were 100,000 stock options outstanding, 801,123 RSUs outstanding, and 10,147 shares remained available for future issuance under the 2024 Plan.

Stock Options

The table below summarizes the activity with respect to stock options for the three months ended March 31, 2026:


	Number of Options			Weighted Average Exercise Price		Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Outstanding at January 1, 2026		4,378,145		$	12.04		8.23	$	1,077
Granted		1,760,362		$	6.59
Exercised		(5,122	)	$	3.45
Expired		(362	)	$	166.00
Forfeitures		(3,633	)	$	6.78
Outstanding at March 31, 2026		6,129,390		$	10.47		8.50	$	5,431
Vested and expected to vest at March 31, 2026		6,129,390		$	10.47		8.50	$	5,431
Exercisable at March 31, 2026		2,000,461		$	19.20		6.95	$	1,182

The assumptions used in the Black-Scholes option-pricing model for all stock options granted during each period presented are as follows:


	Three Months Ended March 31,
	2026	2025
Common stock price	$5.45 - $6.60	$4.10
Expected volatility	96.6% -97.4%	112.1%
Expected dividends	0.0%	0.0%
Expected term (in years)	5.31 - 6.08	5.31
Risk-free rate	3.8% - 3.9%	4.4%

The weighted average grant date fair values of stock options granted during the three months ended March 31, 2026 and 2025 were $5.22 and $3.39, respectively.

The Company recognized $2.1 million and $1.3 million of equity-based compensation expense in connection with stock options during the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was $18.0 million of total unrecognized equity-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average period of 2.8 years.

Restricted Stock Units

The following table summarizes activity with respect to RSUs during the three months ended March 31, 2026:


	Units			Weighted- Average Grant Date Fair Value
Nonvested RSUs at January 1, 2026		3,809,777		$	4.93
Granted		2,232,271		$	6.58
Vested		(675,385	)	$	4.64
Forfeitures		(52,146	)	$	5.70
Nonvested RSUs at March 31, 2026		5,314,517		$	5.65

The Company recognized $2.0 million and $1.0 million of equity-based compensation expense in connection with RSUs during the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was $27.4 million of total unrecognized equity-based compensation expense related to nonvested RSUs, which is expected to be recognized over a weighted average period of 3.2 years.

Performance Stock Units

In June 2024, the Board approved a grant of performance-based restricted stock unit awards (“PSUs” or “Performance Awards”) to the Company’s executive team. Each PSU represents the contingent right to receive one share of the Company’s common stock. These Performance Awards provide for the vesting of 25% of the target number of underlying RSUs granted upon the achievement of each of four independent performance milestones predetermined by the Board (“Performance Milestones”), subject to the grantee’s continued service with the Company (the “Approval Conditions”).

The Performance Milestones are tied to the achievement of certain business objectives and are non-market and non-financial in nature.

In the first quarter of 2026, the Board determined that the first performance milestone was achieved and 25% of the target number of shares vested for each executive officer upon such determination. In the first quarter of 2026, the Board also determined that a second performance milestone was achieved and that 25% of the target number of shares for the executive officers will vest on the 2027 Evaluation Date, which will occur in the first quarter of 2027, subject to such executive officer’s continued service to the company on such date. The Board will determine whether the remaining two performance conditions have been satisfied and the remaining number of units that may vest on the 2027 Evaluation Date. The percentage of the RSUs allocable to any Performance Milestone that has not been achieved on or prior to the 2027 Evaluation Date shall be cancelled.

The following table summarizes activity with respect to PSUs during the three months ended March 31, 2026:


	Units			Weighted Average Grant Date Fair Value
Nonvested PSUs at January 1, 2026		2,074,188		$	7.51
Granted		—		$	—
Vested		(518,546	)	$	7.51
Forfeitures		—		$	—
Nonvested PSUs at March 31, 2026		1,555,642		$	7.51

The Company recognized $1.0 million of equity-based compensation expense in connection with PSUs during the three months ended March 31, 2026 and 2025. As of March 31, 2026, there was $2.6 million of unrecognized equity-based compensation expense related to nonvested PSUs based on the achievement of all Performance Milestones, which is expected to be recognized over a weighted average period of 0.9 years.

10. Commitments and Contingencies

Letter of Credit

The Company had an outstanding letter of credit in the amount of $1.3 million and $2.0 million at March 31, 2026 and December 31, 2025, respectively, which is required as a condition of the Company’s office and laboratory lease.

Indemnification Agreements

In the ordinary course of business, the Company may provide indemnification of varying scope and terms to vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with its executive officers and members of its Board that require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as executive officers or directors of the Company. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnification arrangements.

The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its condensed consolidated financial statements as of March 31, 2026 and December 31, 2025.

Legal Proceedings

The Company may periodically become subject to legal proceedings and claims arising in connection with ongoing business activities, including claims or disputes related to patents that have been issued or that are pending in the field of research on which the Company is focused. The Company is not aware of any material legal proceedings or claims as of March 31, 2026.

11. Net Loss Per Share

The following table sets forth the computation of the Company's basic and diluted net loss per share:


	Three Months Ended March 31,
	2026			2025
Numerator:
Net loss	$	(56,737	)	$	(39,282	)
Denominator:
Shares used to compute net loss per share, basic and diluted
Weighted average shares of common stock outstanding		86,104,331			57,301,916
Weighted average shares of pre-funded warrants to purchase common stock		23,707,130			9,039,389
Weighted average shares of common stock outstanding used to compute basic and diluted net loss per share		109,811,461			66,341,305
Net loss per share, basic and diluted	$	(0.52	)	$	(0.59	)

Included within weighted average shares of common stock outstanding for the three months ended March 31, 2026 and 2025 are 44,408,300 and 16,600,818 shares of common stock issuable upon the exercise of the pre-funded warrants, respectively. The pre‑funded warrants are exercisable at any time for nominal consideration, and as such, the shares are considered outstanding for the purpose of calculating basic and diluted net loss per share.

The outstanding securities presented below were excluded from the calculation of net loss per share because the inclusion of such securities would have been anti-dilutive due to the Company’s net loss during the periods presented.


	Three Months Ended March 31,
	2026		2025
Options to purchase common stock		6,129,390		2,850,441
Nonvested restricted stock units		5,314,517		3,174,668
Nonvested performance stock units		1,555,642		2,165,325
Shares subject to employee stock purchase plan		272,450		234,154
Warrants		2,000		2,563
Total		13,273,999		8,427,151

12. Segment Reporting

The Company has one reportable and one operating segment and conducts its business activities primarily in North America and on a consolidated basis. The Company’s singular focus is developing treatments through gene therapy and other means for patients with neuromuscular and cardiac diseases. All of the Company’s tangible assets are held in the United States.

The accounting policies of the Company are the same as those described in the summary of significant accounting policies.

The Company’s chief operating decision maker (“CODM”) is its chief executive officer. The CODM assesses performance for the Company and decides how to allocate resources based on net loss as reported on the condensed consolidated statements of operations. The annual budgeting process is the primary mechanism used to make these decisions. The financial information also helps in making performance assessments using budgeted versus actual results.

The following table presents segment expenses, other segment items, and segment net loss for the periods presented:


	Three Months Ended March 31,
	2026			2025
Segment expenses:
SGT-003	$	22,942		$	9,166
SGT-501		1,407			4,466
SGT-212		3,316			825
External R&D other		2,857			2,770
Internal R&D expense(1)		9,151			6,843
External G&A expense		5,468			4,877
Internal G&A expense(1)		3,866			3,463
Other segment items(2)		8,301			7,642
Other income, net		(571	)		(770	)
Condensed consolidated net loss	$	(56,737	)	$	(39,282	)


(1)	Internal expenses consisted primarily of payroll and related costs, temporary services, and travel and entertainment.
(2)	Other segment items primarily included other program costs, equity-based compensation expense, and depreciation and amortization expense.

The measure of segment assets is reported on the balance sheet as total condensed consolidated assets.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this quarterly report on Form 10-Q and our audited financial statements and related notes for the year ended December 31, 2025 included in our annual report on Form 10-K filed on March 19, 2026.

Some of the statements contained in this discussion and analysis or set forth elsewhere in this quarterly report on Form 10-Q, including information with respect to our plans and strategy for our business, constitute forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. The following information and any forward-looking statements should be considered in light of factors discussed elsewhere in this quarterly report on Form 10-Q particularly including those risks identified in Part II, Item 1A “Risk Factors” and our other filings with the Securities and Exchange Commission (the “SEC”).

Our actual results and timing of certain events may differ materially from the results discussed, projected, anticipated, or indicated in any forward-looking statements. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and the development of the industry in which we operate may differ materially from the forward-looking statements contained in this quarterly report on Form 10-Q. Statements made herein are made as of the date of the filing of this Form 10-Q with the SEC and should not be relied upon as of any subsequent date. Even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate are consistent with the forward‑looking statements contained in this quarterly report on Form 10-Q, they may not be predictive of results or developments in future periods. We disclaim any obligation, except as specifically required by law and the rules of the SEC, to publicly update or revise any such statements to reflect any change in our expectations or in events, conditions or circumstances on which any such statements may be based or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

We caution readers not to place undue reliance on any forward-looking statements made by us, which speak only as of the date they are made.

Overview

We are a life sciences company focused on advancing a portfolio of current and future gene therapy candidates, which we refer to collectively as our Candidates, including SGT-003 for the treatment of Duchenne muscular dystrophy (“Duchenne”), SGT-212 for the treatment of Friedreich’s ataxia (“FA”), SGT-501 for the treatment of catecholaminergic polymorphic ventricular tachycardia (“CPVT”), SGT-601 for the treatment of TNNT2-mediated dilated cardiomyopathy (“TNNT2 DCM”), and additional assets for the treatment of genetic cardiac and neuromuscular diseases, at different stages of development, with varying levels of investment. We are advancing our diverse pipeline across rare neuromuscular and cardiac diseases, bringing together experts in science, technology, disease management and care. Patient-focused and founded by those directly impacted by Duchenne, our mission is to improve the daily lives of patients living with these devastating diseases.

Solid was purpose-built to advance the best science and accelerate the discovery and development of treatments that may benefit all patients with Duchenne. As we expand to bring meaningful treatments to patients living with other neuromuscular and cardiac diseases, the values and guiding principles that drive us continue. Our corporate vision is to build an innovation platform enabling the discovery and development of high-value genetic medicines for neuromuscular and cardiac diseases by integrating internal capabilities, including a vector core, use of validated animal models, optimized expression cassettes, novel capsids and regulatory expertise, and collaborations with leaders in related clinical and research fields. Our mission, which guides our operations, is to treat and change the course of neuromuscular and cardiac diseases at all stages. Underscoring this mission, our disease-focused business model is founded on the following fundamental principles:

•

identify and develop meaningful therapies for underserved patients with sometimes fatal neuromuscular and cardiac diseases;

•

build innovative libraries of delivery capsids and other enabling technologies with the potential to have broad impact on the gene therapy field at large;

•

bring together the leading experts in neuromuscular and cardiac diseases, science, technology, disease management and care; and

•

be guided by the needs of these patients.

We are continuing to advance our pipeline of Candidates. The U.S. Food and Drug Administration (the “FDA”) has granted Fast Track, Orphan Drug, and Rare Pediatric Disease designations for SGT-003 for Duchenne, and SGT-003 has also been awarded Orphan Drug designation from the European Commission for the treatment of Duchenne, in addition to an Innovation Passport by the new UK Innovative Licensing and Access Pathway, which aims to accelerate time to market and facilitate patient access to new medicines in the United Kingdom. The FDA has granted Fast Track, Orphan Drug and Rare Pediatric Disease designations to SGT-212 for the treatment of FA and SGT-501 for the treatment of CPVT.

As we continue to pursue opportunities in both the U.S. and international markets, we remain attentive to evolving global economic conditions, including uncertainties related to international trade policies, tariffs, and supply chain dynamics. Although these factors have not had a material impact on our operations to date, future changes in trade regulations, tariff structures, or logistical constraints could influence the cost, availability, or timing of materials and components used in our manufacturing processes. We continue to monitor these developments closely.

SGT-003

Participant dosing in the Phase 1/2 INSPIRE DUCHENNE trial of SGT-003 began in the second quarter of 2024. The INSPIRE DUCHENNE trial is a Phase 1/2 first-in-human, open-label, single-dose, multicenter trial designed to evaluate the safety, tolerability and efficacy of SGT-003 in pediatric patients with Duchenne at a dose of 1E14vg/kg. SGT-003 is administered as a one-time intravenous infusion. Since initiation of the INSPIRE DUCHENNE clinical trial, we amended the clinical trial protocol to increase the anticipated participant enrollment size, expand the participant cohort age groups, and extend the time points of certain secondary objective measurements. In connection with the expanded clinical trial, we have initiated work for additional Good Manufacturing Practices (“GMP”) batches of SGT‑003.

On March 11, 2026, we announced positive new interim data from the Phase 1/2 INSPIRE DUCHENNE clinical trial as of a February 23, 2026 data cutoff date. For a full description of the initial results from the INSPIRE DUCHENNE trial, see Part I, Item I, “Business” in our Annual Report on Form 10-K filed on March 19, 2026.

SGT-003 has been generally well tolerated in the 47 participants dosed in the Phase 1/2 INSPIRE DUCHENNE clinical trial as of May 11, 2026. The safety and tolerability profile observed in the INSPIRE DUCHENNE trial continued to be promising; SGT-003 is administered using a low-burden, steroid-only prophylactic immunomodulation regimen. As of May 11, 2026, there was one previously disclosed treatment-related serious adverse event reported in the INSPIRE DUCHENNE trial. This serious adverse event was identified as a Grade 3 immune-mediated myositis which, importantly, was not associated with muscle pain or weakness, and occurred in a participant who had a large deletion in a region coded for by SGT-003’s microdystrophin. The trial participant promptly responded to steroid treatment and the event has resolved. This serious adverse event was reviewed by the data and safety monitoring board with the recommendation to continue dosing without interruption.

Enrollment and dosing in the INSPIRE DUCHENNE trial is ongoing and being conducted at 15 clinical sites across the United States, Canada, Italy and the United Kingdom. We believe we have aligned with the FDA on SGT-003's potency assay strategy and will continue commercial-readiness CMC activities, with our process performance qualification manufacturing batches to be completed in 2026.

In October 2025, we activated the first clinical trial site and began screening participants for IMPACT DUCHENNE, a Phase 3 randomized, double-blind, placebo-controlled trial evaluating SGT-003. In February 2026, we announced positive feedback from a Type C meeting with the FDA where we reached alignment on the IMPACT DUCHENNE trial design, including: the patient population of ambulant participants 7 to <12 years of age, the primary endpoint of change from baseline in Time to Rise (TTR) velocity from supine position evaluated at 18 months and other key secondary endpoints. Clinical trial sites for IMPACT DUCHENNE are currently active in Australia and Canada and additional clinical site activations in the UK and US are expected in the second half of 2026, with sites in the EU anticipated to follow, subject to regulatory clearances. Participant screening is underway and we dosed our first participant in the IMPACT DUCHENNE trial in April 2026.

We expect to continue discussions with the FDA as we seek guidance on a potential accelerated approval pathway for SGT-003 and we expect to provide an update as regulatory discussions progress.

The FDA has granted Fast Track, Orphan Drug, and Rare Pediatric Disease designations for SGT-003 and the European Commission has granted Orphan drug designation for SGT-003 for the treatment of Duchenne. SGT-003 has been awarded an Innovation Passport by the new UK Innovative Licensing and Access Pathway, which aims to accelerate time to market and facilitate patient access to new medicines in the United Kingdom.

Additionally, Solid has received a positive opinion from the European Medicines Agency's Paediatric Committee on its Pediatric Investigation Plan (PIP), establishing alignment on its pediatric development framework for SGT-003 in Europe.

SGT-212

In January 2025, we announced that the FDA cleared our IND for SGT-212 for the treatment of FA. In October 2025, we activated the first clinical trial site and began screening participants for FALCON, an open-label, multi-center Phase 1b clinical trial of SGT-212, and in January 2026, we dosed the first participant in the trial. Two participants have been dosed in the FALCON clinical trial and SGT-212 has been well tolerated with no serious adverse events observed as of May 11, 2026.

The trial is expected to enroll approximately 10 non-ambulatory and ambulatory adult participants (aged 18-40) living with FA in up to three cohorts and is designed to evaluate the safety and tolerability of contemporaneous IDN and systemic IV infusion of SGT-212, with initial data anticipated by the end of 2026, subject to participant enrollment. The FDA has granted Fast Track, Orphan Drug and Rare Pediatric Disease designations to SGT-212 for the treatment of FA.

SGT-501

In July 2025, we announced that the FDA cleared our IND and that Health Canada approved our clinical trial application for SGT-501 for the treatment of CPVT. In January 2026, we announced that clinical trial sites have been activated and participant screening is underway in the ARTEMIS clinical trial, an open-label, multi-center Phase 1b clinical trial evaluating SGT-501 in adult participants with CPVT. The ARTEMIS trial is designed to evaluate the safety and tolerability of a single IV infusion of SGT-501. We anticipate dosing our first participant in the second half of 2026 with initial safety data anticipated in the first half of 2027, subject to participant enrollment.

The FDA has granted Fast Track, Orphan Drug and Rare Pediatric Disease designations to SGT-501 for the treatment of CPVT.

Other Cardiac Programs

We are currently developing a preclinical product candidate, SGT-601, for the treatment of TNNT2 DCM. Efficacy studies in mice suggest that SGT-601 treatment resulted in a restoration of ejection fraction function and a stabilization in cardiac function over time.

Capsids

In March of 2026, we began using the mark POLARIS-101TM to represent our AAV-SLB101 capsid (“POLARIS-101TM”). POLARIS‑101TM is our rationally designed, proprietary capsid used in SGT-003 for Duchenne, which has been generally well tolerated as of May 11, 2026 (N=47) in the INSPIRE DUCHENNE clinical trial, and was also well tolerated in nonclinical NHP and mouse models. We aim to license POLARIS-101TM broadly to corporations, institutions and academic labs pursuing neuromuscular and cardiac rare disease research, with more than 50 agreements, including licenses, executed.

We are focused on developing transformative treatments to improve the lives of patients with rare neuromuscular and cardiac diseases. The majority of our current programs are designed to treat these diseases with gene transfer products. Gene transfer, a type of gene therapy, is designed to address diseases caused by mutated genes through the delivery of functional versions of genes, called transgenes. The transgenes are then utilized by the body to produce desired proteins that act therapeutically to treat the condition. In addition to a transgene, our gene transfer Candidates include a viral capsid or vector (a protein shell utilized as a vehicle to deliver a transgene to cells in the body) and a promoter (a specialized DNA sequence that directs cells to produce the protein in specific tissues). The capsid is modified to no longer self-replicate yet still retains its ability to introduce new genetic material directly into patients’ cells. Adeno-associated virus (“AAV”) capsids have been approved for use to deliver transgenes to patients, including via systemic delivery as well as stereotactic neurosurgical administration to the brain. The use of AAV capsids to deliver gene therapies has also been extensively studied by third parties in human clinical trials for multiple disease indications, and in certain of these trials AAV was delivered systemically to the participant.

We are building cardiac and neuromuscular next-generation capsid and promoter libraries with capsid selection from the first library anticipated in the second half of 2026.

Our Operations

Due to our significant research and development expenditure, licensing and patent investment, and general and administrative costs associated with our operations, we have generated substantial operating losses in each period since our inception. Our net losses were $56.7 million and $39.3 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, we had an accumulated deficit of $1.0 billion. We expect to incur significant expenses and operating losses for the foreseeable future.

As we seek to develop and commercialize our Candidates, we anticipate that our expenses will increase significantly and that we will need substantial additional funding to support our continuing operations. Until we can generate significant revenue from product sales, if ever, we expect to finance our operations through a combination of public or private equity financing, debt financings or other sources, which may include licensing agreements or strategic collaborations. We may be unable to raise additional funds or enter into such agreements or arrangements when needed on favorable terms, if at all. If we fail to raise capital or enter into such agreements as

and when needed, we may have to significantly delay, scale back or discontinue the development or commercialization of our Candidates.

Because of the numerous risks and uncertainties associated with product development, we are unable to predict the timing or amount of increased expenses or determine when or if we will be able to achieve or maintain profitability. Even if we are able to generate revenue from product sales, we may not become profitable. If we fail to become profitable or are unable to sustain profitability on a continuing basis, we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations.

As of March 31, 2026, we had cash, cash equivalents, and available-for-sale securities of $380.7 million, excluding restricted cash of $1.3 million. We believe that our cash, cash equivalents, and available-for-sale securities as of March 31, 2026 will enable us to fund our operating expenses and capital expenditure requirements into the first half of 2028. We have based this estimate on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we currently anticipate.

Financial Operations Overview

Revenue

We have not generated any commercial product revenue to date and do not expect to do so for the foreseeable future, if ever. If our development efforts for our Candidates are successful and result in marketing approval, we may generate commercial product revenue in the future.

Operating Expenses

We classify our operating expenses into two categories: research and development and general and administrative expenses. Personnel costs, including salaries, benefits, bonuses, and equity-based compensation expense comprise a significant component of both expense categories. We allocate expenses associated with personnel costs based on the nature of work associated with these resources.

Research and Development Expenses

Research and development expenses consist primarily of costs incurred for our research activities, including our discovery efforts, and clinical and preclinical development activities for our Candidates and include:

•

expenses incurred under agreements with third parties, including contract research organizations (“CROs”) that conduct research, preclinical and clinical activities on our behalf, as well as contract development and manufacturing organizations (“CDMOs”) that manufacture SGT-003, SGT-212, SGT-501, and other Candidates for use in our preclinical studies and clinical trials;

•

salaries, benefits and other related costs, including equity-based compensation expense, for personnel engaged in research and development functions;

•

costs of outside consultants engaged to assist in our research and development activities, including their fees, equity-based compensation and related travel expenses;

•

costs of laboratory supplies and acquiring, developing and manufacturing preclinical study and clinical trial materials;

•

costs incurred in seeking regulatory approval of our Candidates;

•

expenses incurred under our intellectual property licenses; and

•

facility-related research and development expenses, which include direct depreciation costs and allocated expenses for rent and maintenance of facilities and other operating costs.

Research and development activities are central to our business model. We are still in the early stages of development for most of our Candidates. Candidates in later stages of clinical development generally have higher development costs than those in preclinical development or in earlier stages of clinical development, primarily due to the increased size and duration of later‑stage clinical trials. We expect that our research and development expenses will continue to increase for the foreseeable future if and as we continue to conduct our INSPIRE DUCHENNE, IMPACT DUCHENNE, FALCON and ARTEMIS trials and continue to develop our pipeline and complete ongoing and planned preclinical studies and clinical trials of our Candidates.

We typically use our employee and infrastructure resources across our Candidates. We track outsourced development costs and milestone payments made under our licensing arrangements by Candidate, but we do not allocate personnel costs, license payments made under our licensing arrangements or other internal costs to Candidates on a program-specific basis. These costs are included in unallocated research and development expenses in the table below.

The following table summarizes our research and development expenses by Candidate for the respective periods (in thousands):


	Three Months Ended March 31,
	2026		2025
Allocated research and development expenses:
SGT-003	$	22,942	$	9,298
SGT-501		1,407		4,466
SGT-212		3,316		825
SGT-601		486		2,155
Other development programs		1,568		1,484
Total allocated research and development expenses		29,719		18,228
Unallocated research and development expenses:
Personnel related expenses		11,311		7,990
External expenses		5,110		4,696
Total unallocated research and development expenses		16,421		12,686
Total research and development expenses	$	46,140	$	30,914

We cannot determine with certainty the duration, costs, and timing of ongoing and planned clinical trials of SGT-003, SGT-212, SGT‑501 or our other Candidates, or if, when, or to what extent we will generate revenue from the commercialization and sale of any of our Candidates for which we obtain marketing approval or our other research and development expenses. We may never succeed in obtaining marketing approval for any of our Candidates. The duration, costs, and timing of clinical trials and development of our Candidates will depend on a variety of factors, including:

•

the scope, rate of progress, expense, and results of any clinical trials of our Candidates and other research and development activities that we may conduct;

•

the imposition of regulatory restrictions on clinical trials, including full and partial clinical holds and the time and activities required to lift any such holds;

•

uncertainties in clinical trial design and participant enrollment or drop out or discontinuation rates;

•

significant and changing government regulation and regulatory guidance;

•

potential additional studies or clinical trials requested by regulatory agencies;

•

the timing and receipt of any marketing approvals; and

•

the expense of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries and other related costs, including equity-based compensation, for personnel in our executive, finance, business development and administrative functions. General and administrative expenses also include legal fees relating to patent and corporate matters, professional fees for accounting, auditing, tax and consulting services, insurance costs, travel expenses, and facility-related expenses.

We expect that our general and administrative expenses will increase in the future as we support our research and development activities and activities related to our INSPIRE DUCHENNE trial, our IMPACT DUCHENNE trial, our FALCON trial, our ARTEMIS trial and any other planned or future clinical trials for and potential commercialization of our Candidates.

Other Income, Net

Other income, net consists primarily of interest income. Interest income consists of income earned on our cash and cash equivalents, available-for-sale securities, and restricted cash.

Critical Accounting Policies and Use of Estimates

Our management's discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of our condensed consolidated financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, costs and expenses and the disclosure of contingent assets and liabilities in our condensed consolidated financial statements. We base our estimates on historical experience, known trends and events and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about

the carrying values of assets and liabilities that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ materially from these estimates.

During the three months ended March 31, 2026, there were no material changes to our critical accounting policies. Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Use of Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025 and the notes to the unaudited condensed consolidated financial statements included in Part I, Item 1, “Financial Statements (unaudited),” of this Quarterly Report on Form 10-Q. We believe that of our critical accounting policies, the following accounting policies involve the most judgment and complexity:

•

accrued research and development expenses;

•

equity-based compensation; and

•

derivative liabilities.

Accordingly, we believe the policies set forth above are critical to fully understanding and evaluating our financial condition and results of operations. If actual results or events differ materially from the estimates, judgments and assumptions used by us in applying these policies, our reported financial condition and results of operations could be materially affected.

Results of Operations

Comparison of the Three Months Ended March 31, 2026 and 2025

The following table summarizes our results of operations for the periods indicated (in thousands, except percentages):


	Three Months Ended March 31,
	2026			2025			$ Change			% Change
Operating expenses:
Research and development	$	46,140		$	30,914		$	15,226			49.3	%
General and administrative		11,168			9,138			2,030			22.2	%
Total operating expenses		57,308			40,052			17,256			43.1	%
Loss from operations		(57,308	)		(40,052	)		(17,256	)		43.1	%
Other income, net:
Interest income		2,064			2,300			(236	)		(10.3	)%
Interest expense		—			(68	)		68			(100.0	)%
Change in fair value of derivative liabilities		(1,650	)		(1,650	)		—			0.0	%
Other income, net		157			188			(31	)		(16.5	)%
Total other income, net		571			770			(199	)		(25.8	)%
Net loss	$	(56,737	)	$	(39,282	)	$	(17,455	)		44.4	%

Research and Development Expenses

The following table summarizes our research and development expenses by Candidate for the periods indicated (in thousands, except percentages):


	Three Months Ended March 31,
	2026		2025		$ Change			% Change
Allocated research and development expenses:
SGT-003	$	22,942	$	9,298	$	13,644			146.7	%
SGT-501		1,407		4,466		(3,059	)		(68.5	)%
SGT-212		3,316		825		2,491			301.9	%
SGT-601		486		2,155		(1,669	)		(77.4	)%
Other development programs		1,568		1,484		84			5.7	%
Total allocated research and development expenses		29,719		18,228		11,491			63.0	%
Unallocated research and development expenses:
Personnel related expenses		11,311		7,990		3,321			41.6	%
External expenses		5,110

Solid Biosciences Inc. 10-Q