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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: 001-42831

LB Pharmaceuticals Inc

(Exact Name of Registrant as Specified in its Charter)


Delaware	81-1854347
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Pennsylvania Plaza, Suite 1025 New York, NY	10119
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (212) 605-0300

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

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     Common Stock, $0.0001 par value

     LBRX

     The Nasdaq Stock Market LLC

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, 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 ☒

The number of shares of Registrant’s Common Stock outstanding as of May 7, 2026 was 28,676,652.

Table of Contents


		Page

	Special Note Regarding Forward-Looking Statements	ii
	Risk Factors Summary	v

PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	1
	Condensed Balance Sheets as of March 31, 2026 and December 31, 2025	1
	Condensed Statements of Operations for the Three Months Ended March 31, 2026 and 2025	2
	Condensed Statements of Comprehensive Loss for the Three Months Ended March 31, 2026 and 2025	3
	Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the Three Months Ended March 31, 2026 and 2025	4
	Condensed Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025	5
	Notes to Condensed Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	85
Item 3.	Defaults Upon Senior Securities	85
Item 4.	Mine Safety Disclosures	85
Item 5.	Other Information	85
Item 6.	Exhibits	86
Signatures		87

Table of Contents

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report contains express or implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These statements are based on our management’s belief and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

•

the initiation, timing, progress, potential registrational quality, and results of our research and development programs, preclinical studies, any clinical trials, Investigational New Drug, or IND, New Drug Applications, or NDAs, and other regulatory submissions;

•

the ability of our approach to reproducibly predict treatment outcomes for LB-102 amongst identified patient populations and achieve clinical success;

•

the timing of and costs involved in obtaining and maintaining regulatory approval of LB-102 and any future product candidates that we may identify or develop;

•

the beneficial characteristics, including potential safety, efficacy, and therapeutic effects, of LB-102;

•

our ability to efficiently and cost-effectively conduct our current and future clinical trials, including our plan to incorporate improvements to enhance commercial scalability of our drug product manufacturing;

•

our ability to obtain funding for our operations necessary to complete further development and commercialization of LB-102, if approved;

•

our ability to maintain existing, and establish new, strategic collaborations, licensing, or other arrangements, including our ability to comply with our financial obligations pursuant to the terms of such agreements;

•

the timing and likelihood of the achievement of milestones pursuant to our existing collaboration and licensing agreements;

•

our ability to identify and develop LB-102 for treatment of additional indications;

•

the performance of our third-party service providers, including our suppliers and manufacturers;

•

the ability of our third-party manufacturers to increase the scale of its production of our product candidate, and/or increase the product yield of its manufacturing;

•

the rate and degree of market acceptance and clinical utility for LB-102 and any other product candidates we may develop;

•

the effects of competition with respect to LB-102 or any of our future product candidates, as well as innovations by current and future competitors in our industry;

•

our estimates regarding the potential market opportunities and the number of patients for LB-102 and any future product candidates, if approved for commercial use;

•

the implementation of our strategic plans for our business, LB-102, and any future product candidates we may develop;

•

our intellectual property position, including the scope of protection we are able to establish, maintain, defend and enforce for intellectual property rights covering LB-102 and any future product candidates we may develop;

•

our ability to attract and retain key scientific or management personnel;

•

regulatory and legal developments in the United States and foreign countries;

•

our ability to attract and retain employees and collaborators with development, regulatory, and commercialization expertise;

•

the accuracy of our estimates regarding future expenses, future revenue, capital requirements, and need for additional financing;

Table of Contents

•

the period over which we estimate our existing cash, cash equivalents and marketable securities will be sufficient to fund our future operating expenses and capital expenditure requirements;

•

our expectations regarding the period during which we qualify as an emerging growth company under the JOBS Act; and

•

other risks and uncertainties, including those listed under the caption “Risk Factors.”

In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. These statements are only predictions. Investors should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from those implied or projected by forward-looking statements include, among other things, those listed under the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. Investors should read this Quarterly Report on Form 10-Q, the documents that we reference in this Quarterly Report on Form 10-Q and the other documents that we file with the Securities and Exchange Commission, or SEC, with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Investors should therefore not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this Quarterly Report on Form 10-Q.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

iii

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SPECIAL NOTE REGARDING COMPANY REFERENCES

Throughout this Quarterly Report on Form 10-Q, the “Company,” “we,” “us” and “our” refer to LB Pharmaceuticals Inc.

SPECIAL NOTE REGARDING TRADEMARKS

All trademarks, trade names and service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective owners.

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RISK FACTORS SUMMARY

Our business is subject to numerous risks and uncertainties and is subject to change based on various factors, including those highlighted in the section entitled “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q. These risks include, but are not limited to, the following:

•

We are a clinical-stage biopharmaceutical company with a limited operating history and no history of commercializing products, which may make it difficult to evaluate our approach to the discovery and development of our product candidate and the prospects for our future viability.

•

We have incurred substantial losses since our inception. We anticipate incurring substantial and increasing losses for the foreseeable future and may never achieve or maintain profitability.

•

We will require substantial additional financing to achieve our goals, and failure to obtain additional capital when needed, or on acceptable terms to us, could cause us to delay, limit, reduce, or terminate our product development or future commercialization efforts.

•

We have concentrated our research and development efforts on the treatment of psychiatric and neurological conditions, a field that faces certain challenges in drug development.

•

Preclinical and clinical development involves a lengthy and expensive process, with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial or real-world results. We may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of our current product candidate or any future product candidates.

•

Even if we complete the necessary preclinical studies and clinical trials, the marketing approval process is expensive, time-consuming, and uncertain and may prevent us or any future collaboration partners from obtaining approvals for the commercialization of our product candidate.

•

Even if our product candidate receives regulatory approval, it may fail to achieve the degree of market acceptance by physicians, patients, and others in the medical community necessary for commercial success, in which case we may not generate significant revenues or become profitable.

•

The successful commercialization of our product candidate, if approved, will depend in part on the extent to which governmental authorities and health insurers establish coverage, adequate reimbursement levels, and favorable pricing policies. Failure to obtain or maintain coverage and adequate reimbursement for our product candidate could limit our ability to market those products and decrease our ability to generate revenue.

•

Our business depends on the success of our product candidate. If we are ultimately unable to successfully commercialize our product candidate, or experience significant delays in doing so, our business will be materially harmed.

•

We rely on, and intend to continue to rely on, our internal clinical development expertise to conduct our current and future clinical trials. This model includes internal teams and systems as well as external vendors and CROs to comprise a full clinical trial team. If our clinical trial team does not comply with applicable regulatory requirements, meet expected deadlines, or run trials effectively, our development programs and our ability to seek or obtain regulatory approval for or commercialize our product candidate may be delayed.

•

We rely on third-party manufacturers and suppliers to supply our product candidate. The loss of our third-party manufacturers or suppliers, or their failure to comply with applicable regulatory requirements or to supply sufficient quantities at acceptable quality levels or prices, within acceptable timeframes, or at all, would materially and adversely affect our business.

•

The obligations from our royalty agreements may be a drain on our cash resources or may cause us to incur debt obligations to satisfy the payment obligations.

•

Competitive products may reduce or eliminate the commercial opportunity for our product candidate for our current or future indications. If our competitors develop technologies or product candidates more rapidly than we do, or their technologies are more effective or safer than ours, our ability to develop and successfully commercialize our current products may be adversely affected.

•

We are dependent on the services of our management and other clinical and scientific personnel, and if we are not able to retain these individuals or recruit additional management or clinical and scientific personnel, our business will suffer.

•

If we are unable to obtain and maintain sufficient intellectual property protection for our technologies, and product candidate and any future product candidates we may develop, or if the scope of the intellectual property protection obtained is not sufficiently broad, our competitors or other third parties could develop and commercialize products similar or identical to ours, and our ability to successfully develop and commercialize our product candidate may be adversely affected.

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•

Patent terms may be inadequate to protect our competitive position on our product candidate for a sufficient amount of time.

The material and other risks summarized above should be read together with the text of the full risk factors and in the other information set forth in this Quarterly Report on Form 10-Q, including our condensed financial statements and the related notes, as well as in other documents that we file with the SEC. If any such material and other risks and uncertainties actually occur, our business, prospects, financial condition and results of operations could be materially and adversely affected. The risks summarized above or described in full are not the only risks that we face. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial may also materially adversely affect our business, prospects, financial condition and results of operations.

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PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

LB Pharmaceuticals Inc

Condensed Balance Sheets

(In thousands, except share and per share data)

(Unaudited)


	As of
	March 31, 2026			December 31, 2025
Assets
Current assets
Cash and cash equivalents	$	320,676		$	250,173
Marketable securities		44,960			45,040
Prepaid expenses and other current assets		23,438			13,219
Total current assets		389,074			308,432
Operating lease right-of-use assets, net		2,101			2,151
Property and equipment, net		1,531			1,581
Restricted cash		776			770
Total assets	$	393,482		$	312,934
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	7,119		$	2,127
Accrued expenses		3,057			4,585
Operating lease liabilities, current		730			730
Total current liabilities		10,906			7,442
Derivative liability - warrants		1,143			1,343
Operating lease liabilities, noncurrent		2,740			2,839
Total liabilities		14,789			11,624
Commitments and contingencies (Note 12)
Stockholders’ equity
Common stock, $0.0001 par value, 500,000,000 shares authorized, 28,674,827 and 25,299,372 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively.		3			3
Additional paid-in capital		527,064			430,667
Accumulated deficit		(148,582	)		(129,528	)
Accumulated other comprehensive income		208			168
Total stockholders’ equity		378,693		$	301,310
Total liabilities and stockholders’ equity	$	393,482		$	312,934

See accompanying notes to the unaudited condensed financial statements.

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LB Pharmaceuticals Inc

Condensed Statements of Operations

(in thousands, except share and per share data)

(Unaudited)


	Three Months Ended March 31,
	2026			2025
Operating expenses
Research and development	$	14,645		$	3,421
General and administrative		7,459			3,008
Total operating loss		(22,104	)		(6,429	)
Non-operating income
Interest income		2,850			236
Realized gain on sale of marketable securities, net		—			119
Gain on change in fair value of derivative instruments		200			768
Total non-operating income		3,050			1,123
Loss before income tax		(19,054	)		(5,306	)
Income tax provision		—			—
Net loss	$	(19,054	)	$	(5,306	)
Net loss per share, basic and diluted	$	(0.67	)	$	(14.79	)
Weighted average shares outstanding used in calculating net loss per share, basic and diluted		28,241,701			358,777

See accompanying notes to the unaudited condensed financial statements.

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LB Pharmaceuticals Inc

Condensed Statements of Comprehensive Loss

(in thousands)

(Unaudited)


	Three Months Ended March 31,
	2026			2025
Net loss	$	(19,054	)	$	(5,306	)
Unrealized gain (loss) on marketable securities, net		40			(111	)
Comprehensive loss	$	(19,014	)	$	(5,417	)

See accompanying notes to the unaudited condensed financial statements.

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LB Pharmaceuticals Inc

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(in thousands, except share data)

(Unaudited)


	Redeemable Convertible Preferred Stock																				Additional					Accumulated Other			Total
	Series Seed				Series A				Series B				Series C				Common Stock				Paid-in		Accumulated			Comprehensive			Stockholders'
	Shares (1)		Amount		Shares (1)		Amount		Shares (1)		Amount		Shares (1)		Amount		Shares		Amount		Capital		Deficit			Income			Equity (Deficit)
Balance, December 31, 2024		295,467	$	435		3,655,374	$	6,179		301,119	$	580		73,820,346	$	107,065		251,655	$	1	$	9,657	$	(104,323	)	$	111		$	(94,554	)
Share-based compensation expense		—		—		—		—		—		—		—		—		—		—		634		—			—			634
Unrealized loss on marketable securities		—		—		—		—		—		—		—		—		—		—		—		—			(111	)		(111	)
Net loss		—		—		—		—		—		—		—		—		—		—		—		(5,306	)		—			(5,306	)
Balance, March 31, 2025		295,467	$	435		3,655,374	$	6,179		301,119	$	580		73,820,346	$	107,065		251,655	$	1	$	10,291	$	(109,629	)	$	-		$	(99,337	)

Balance, December 31, 2025		—		—		—		—		—		—		—		—		25,299,372		3		430,667		(129,528	)		168			301,310
Share-based compensation expense																		—		—		2,566		—			—			2,566
Unrealized gain on marketable securities		—		—		—		—		—		—		—		—		—		—		—		—			40			40
Shares issued upon exercise of options and warrants		—		—		—		—		—		—		—		—		68,884		—		29		—			—			29
Issuance of common stock and pre-funded warrants upon private placement, net of issuance costs		—		—		—		—		—		—		—		—		3,306,571		—		93,802		—			—			93,802
Net loss		—		—		—		—		—		—		—		—		—		—		—		(19,054	)		—			(19,054	)
Balance, March 31, 2026		—	$	-		—	$	-		—	$	-		—	$	-		28,674,827	$	3	$	527,064	$	(148,582	)	$	208		$	378,693

(1) Shares for the redeemable convertible preferred stock are not adjusted for the Reverse Stock Split detailed in Note 1 Business Overview.

See accompanying notes to the unaudited condensed financial statements.

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LB Pharmaceuticals Inc

Condensed Statements of Cash Flows

(in thousands)

(Unaudited)


	Three Months Ended March 31,
	2026			2025
Operating Activities
Net loss	$	(19,054	)	$	(5,306	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		2,566			634
Depreciation		82			79
Noncash lease expense		50			133
Realized gain on sale of marketable securities, net		—			(119	)
Amortization (accretion) of premium (discounts) on investments, net		17			(12	)
Gain on change in fair value of derivative instruments		(200	)		(768	)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(10,219	)		83
Operating lease liabilities		(99	)		2
Accrued interest on marketable securities		103			40
Accounts payable and accrued expenses		3,464			(2,894	)
Net cash used in operating activities		(23,290	)		(8,128	)
Investing Activities
Purchases of property and equipment		(32	)		(21	)
Proceeds from the sale of marketable securities		—			2,501
Maturities of marketable securities		—			2,500
Net cash (used in) provided by investing activities		(32	)		4,980
Financing Activities
Proceeds from issuance of common stock and pre-funded warrants in a private placement		100,000			—
Payment of issuance costs for private placement		(6,198	)		—
Proceeds from exercise of warrants and options		29			—
Net cash provided by financing activities		93,831			—
Net increase (decrease) in cash, cash equivalents and restricted cash		70,509			(3,148	)
Cash, cash equivalents and restricted cash, beginning of period		250,943			23,476
Cash, cash equivalents and restricted cash, end of period	$	321,452		$	20,328

See accompanying notes to the unaudited condensed financial statements.

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LB Pharmaceuticals Inc

Notes to Condensed Financial Statements

(Unaudited)

1. Business Overview

LB Pharmaceuticals Inc (the “Company” or “LB”) was incorporated under the laws of the State of Delaware in September 2015 and is headquartered in New York, New York.

The Company is a late-stage biopharmaceutical company developing novel therapies for the treatment of a wide range of neuropsychiatric disorders including schizophrenia, bipolar depression, adjunctive treatment of major depressive disorder, or MDD, and other diseases. The Company is building a pipeline that leverages the broad therapeutic potential of the Company's lead product candidate, LB-102, which the Company believes has the opportunity to be the first benzamide antipsychotic drug approved for neuropsychiatric disorders in the United States. LB-102 is currently in late-stage clinical development for schizophrenia and bipolar depression. During the three months ended March 31, 2026, the Company initiated a Phase 2 clinical trial (ILLUMINATE-1) of LB-102 in patients with bipolar 1 depression and a Phase 3 clinical trial (NOVA-2) of LB-102 in patients with acute schizophrenia. Concurrently with the Phase 3 trial, the Company is running an outpatient, open label trial (NOVA-3) to accrue the requisite safety population required to support NDA submission as well as other clinical and non-clinical studies typically required by FDA at the time of approval. The Company is also planning to conduct a Phase 2 clinical trial evaluating LB-102 as an adjunctive treatment in MDD that is expected to initiate in early 2027.

Since the Company’s inception, it has focused substantially all of its efforts and financial resources on organizing and staffing the Company, raising capital, building its intellectual property portfolio, undertaking preclinical studies and clinical trials and providing general and administrative support for these activities. The Company has not generated any product revenue related to its primary business purpose to date and is subject to a number of risks similar to those of other early stage companies, including dependence on key individuals, regulatory approval of product candidates, uncertainty of market acceptance of products, if approved, competition from substitute products and larger companies, compliance with government regulations, protection of proprietary technology, dependence on third parties, product liability and the need to obtain adequate additional financing to fund the development of its product candidates.

Initial Public Offering

On September 10, 2025, the Company’s Registration Statement on Form S‑1 (File No. 333‑289812) for its initial public offering (the “IPO”) was declared effective, and on September 12, 2025, the Company closed the IPO and issued 21,850,000 shares of common stock at a price to the public of $15.00 per share, including 2,850,000 shares issued upon the exercise in full of the underwriters’ over-allotment option to purchase additional shares. The Company received gross proceeds of $327.8 million. Net proceeds were $302.3 million, after deducting underwriting commissions and other offering costs totaling $25.4 million. Immediately prior to the IPO closing, all of the outstanding shares of the Company’s redeemable convertible preferred stock automatically converted into an aggregate of 3,191,334 shares of the Company’s common stock, including 391,986 additional shares issuable upon conversion of Series C preferred stock due to certain anti‑dilution adjustments.

Reverse Stock Split

On September 8, 2025, the Company effected a 1‑for‑27.8874 Reverse Stock Split of the shares of common stock (the “Reverse Stock Split”). The number of authorized shares and par value per share were not adjusted as a result of the Reverse Stock Split. No fractional shares were issued; stockholders entitled to a fractional share received a cash payment in lieu thereof. All references to shares, equity awards and options (including exercise prices), share data, per share data, and related information contained in the financial statements have been retrospectively adjusted to reflect the effect of the Reverse Stock Split for all periods presented.

Private Placement

On February 4, 2026, the Company entered into a Securities Purchase Agreement with certain investors in connection with a private placement. Pursuant to the Securities Purchase Agreement, the Company agreed to issue (i) 3,306,571 shares of its common stock, par value $0.0001 per share, at a purchase price of $21.17 per share and (ii) pre-funded warrants to purchase an aggregate of 1,417,107 shares of common stock at a purchase price of $21.1699 per pre-funded warrant, which represents the $21.17 share price less the $0.0001 per share exercise price. The transaction closed on February 6, 2026 and resulted in aggregate gross proceeds of approximately $100.0 million, consisting of approximately $70.0 million from the sale of common stock and approximately $30.0 million from the sale of pre-funded warrants.

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LB Pharmaceuticals Inc

Notes to Condensed Financial Statements

(Unaudited)

Liquidity and Capital Resources

As of March 31, 2026, the Company had approximately $365.6 million of cash, cash equivalents and marketable securities and working capital of approximately $378.5 million. As of March 31, 2026, the Company had an accumulated deficit of $148.6 million. During the three months ended March 31, 2026, the Company incurred a net loss of $19.1 million, and negative cash flows from operations of $23.3 million. The Company has incurred net losses and negative cash flows from operations since its inception and anticipates it will continue to incur net losses for the foreseeable future.

Historically, the Company funded its operations primarily through proceeds from issuances of redeemable convertible preferred stock, common stock and convertible notes. In September 2025, the Company completed its IPO as detailed above. In February 2026, the Company completed a private placement financing resulting in total gross proceeds of $100.0 million. Net proceeds were approximately $93.8 million, after deducting financial advisory fees and other financing costs. The Company believes that its current capital resources, which consist of cash, cash equivalents and marketable securities, will be sufficient to fund operations through at least the next twelve months from the date the accompanying financial statements are issued based on its expected cash needs. As the Company continues to pursue its business plan, it expects to finance its operations through equity offerings, debt financings, or other capital sources, including current or potential future collaborations, licenses, and other similar arrangements. However, there can be no assurance that any additional financing or strategic arrangements will be available to the Company on acceptable terms, if at all.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The accompanying unaudited condensed financial statements have been prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of March 31, 2026 and the results of its operations and cash flows for the three months ended March 31, 2026 and 2025. Certain information and footnote disclosures typically included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed financial statements should be read in conjunction with the Company’s financial statements as of and for the year ended December 31, 2025. The results for the three months ended March 31, 2026 are not necessarily indicative of results to be expected for the year ending December 31, 2026, any other interim periods, or any future year or period.

The significant accounting policies and estimates used in preparation of the financial statements are described in the Company’s audited financial statements as of and for the year ended December 31, 2025, and the notes thereto. During the three months ended March 31, 2026, there were no material changes to the Company’s significant accounting policies.

Segment Information

The Company operates as a single reportable segment in the development of novel therapies for the treatment of neuropsychiatric diseases, including schizophrenia. The Company has not generated revenues since inception. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer (“CEO”). The CODM reviews the Company’s performance on an aggregate basis, thus the segment’s loss is the Company’s net loss, as reported on accompanying condensed statements of operations, and the segment’s assets are the Company’s total assets, as reported on the accompanying condensed balance sheets. Significant expenses provided to the CODM include research and development and general and administrative expenses, as reported on the accompanying condensed statements of operations.

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LB Pharmaceuticals Inc

Notes to Condensed Financial Statements

(Unaudited)

The following table presents the significant segment expenses regularly provided to the CODM and a reconciliation to net loss (in thousands):


	Three Months Ended March 31,
	2026			2025

General and administrative expenses	$	7,459		$	3,008

Research and development expenses
Schizophrenia programs		5,813			1,260
Bipolar depression programs		3,006			—
Formulation and CMC		2,329			653
Preclinical and other direct expenses		501			—
Total direct research and development expenses		11,649			1,913
Personnel-related		2,115			1,253
Consulting and other		881			255
Total indirect and unallocated research and development expenses		2,996			1,508
Total research and development expenses		14,645			3,421
Total operating loss		(22,104	)		(6,429	)
Non-operating income		3,050			1,123
Net loss	$	(19,054	)	$	(5,306	)

The CODM uses information primarily to evaluate the Company’s performance and allocate resources. This includes reviewing key financial metrics such as budget versus actual expenditures and assessing overall cash flow and liquidity to ensure the continuity of operations. This approach allows the CODM to monitor the Company's performance and make strategic adjustments as needed to support its operational and financial goals.

The Company’s operations and all long-lived assets are located in the United States.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which requires enhanced income tax disclosures, including a tabular rate reconciliation using specified categories with disaggregated information for significant reconciling items that meet a quantitative threshold, and disclosure of income taxes paid disaggregated by federal, state and foreign jurisdictions. For public business entities, the guidance is effective for annual periods beginning after December 15, 2024. As the Company has elected the extended transition period available to emerging growth companies under the JOBS Act, the guidance is effective for the Company for fiscal years beginning after December 15, 2025, and the Company expects to adopt ASU 2023-09 for its fiscal year ending December 31, 2026. Early adoption is permitted. As the standard impacts disclosure requirements only and does not affect recognition or measurement, the Company does not expect adoption to have a material impact on its financial position or results of operations but does expect expanded income tax disclosures upon adoption.

In November 2024, the FASB issued ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public business entities to provide disaggregated disclosures of certain income statement expense line items on an annual and interim basis, including the amounts of employee compensation, depreciation, amortization and depletion, and other specified cost categories included in each relevant expense caption. The guidance applies only to public business entities and is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its financial statement disclosures.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements which reorganizes and clarifies the interim disclosure requirements in ASC 270 to improve usability and clarify when interim reporting guidance applies. The ASU also introduces a disclosure principle requiring entities to describe events occurring after the end of the most recent annual reporting period that have a material impact on the interim period. The standard does not change the fundamental nature or quantity of interim disclosures required under GAAP. For public business entities, the guidance is

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LB Pharmaceuticals Inc

Notes to Condensed Financial Statements

(Unaudited)

effective for interim periods within fiscal years beginning after December 15, 2027. For all other entities, the guidance is effective for interim periods within fiscal years beginning after December 15, 2028. As the Company has elected the extended transition period available to emerging growth companies under the JOBS Act, the Company expects to adopt this guidance for interim periods within fiscal years beginning after December 15, 2028. Early adoption is permitted. The Company does not expect adoption to have a material impact on its financial statements or disclosures.

3. Fair Value Measurements

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy (in thousands):


	As of March 31, 2026
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	319,115	$	—	$	—	$	319,115
Total cash equivalents		319,115		—		—		319,115
Marketable securities
Government securities		—		44,960		—		44,960
Total marketable securities		—		44,960		—		44,960
Restricted cash
Certificate of deposit		—		776		—		776
Total restricted cash		—		776		—		776
Total assets	$	319,115	$	45,736	$	—	$	364,851
Liabilities
Derivative liability – warrants		—		1,107		36		1,143
Total liabilities	$	—	$	1,107	$	36	$	1,143


	As of December 31, 2025
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	249,393	$	—	$	—	$	249,393
Total cash equivalents		249,393		—		—		249,393
Marketable securities
Government securities		—		45,040		—		45,040
Total marketable securities		—		45,040		—		45,040
Restricted cash
Certificate of deposit		—		770		—		770
Total restricted cash		—		770		—		770
Total assets	$	249,393	$	45,810	$	—	$	295,203
Liabilities
Derivative liability – warrants		—		1,305		38		1,343
Total liabilities	$	—	$	1,305	$	38	$	1,343

Marketable Securities

The Company accounts for marketable securities held as “available-for-sale” in accordance with ASC 320, Investments-Debt Securities. The Company classifies these investments as current assets and carries them at fair value.

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LB Pharmaceuticals Inc

Notes to Condensed Financial Statements

(Unaudited)

The fair value of the Company's marketable securities classified within Level 2 is based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications.

Certificate of Deposit

The Company’s certificates of deposit are Level 2 instruments. The fair value of such instruments is estimated based on valuations obtained from third-party pricing services that utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable either directly or indirectly. These inputs include interest rate curves, foreign exchange rates, and credit ratings.

Warrants

The Company has issued warrants to investors in connection with prior equity financings. These warrants are required to be measured at fair value and presented as liabilities in the accompanying condensed balance sheets. As of March 31, 2026, the warrant liabilities include (i) nominal exercise price warrants, which are marked-to-market based on the period-end closing price of the Company's common stock and (ii) the New Series B Warrant, which has an exercise price of $41.83 and is valued using the Black-Scholes option pricing model, which includes unobservable inputs. The nominal exercise price warrants are classified within Level 2 of the fair value hierarchy. The New Series B Warrant is classified within Level 3. See Note 8 Equity for additional information.

For the three months ended March 31, 2026, the change in the fair value of the warrant liabilities resulted in the recording of a gain on change in fair value of derivative instruments of $0.2 million in the accompanying condensed statements of operations, consisting of $0.2 million related to the nominal exercise price warrants classified within Level 2 and less than $0.01 million related to the New Series B Warrant classified within Level 3. For the three months ended March 31, 2025, the change in the fair value of the warrant liabilities resulted in the recording of a gain of $0.8 million in the accompanying condensed statements of operations. During the three months ended March 31, 2025, all warrant liabilities were classified within Level 3 of the fair value hierarchy. During the year ended December 31, 2025, the Company transferred the nominal exercise price warrants from Level 3 to Level 2 within the fair value hierarchy as the warrants became mark-to-market instruments based on the period-end closing price of the Company's common stock following the IPO. Transfers between levels are recognized at the beginning of the reporting period in which the transfer occurs.

The following are the assumptions used in the Black-Scholes valuation model in order to determine the fair value of the warrant liabilities as of March 31, 2026 and December 31, 2025:


	March 31, 2026			December 31, 2025
Term		2.41			2.66
Volatility		92.70	%		103.4	%
Exercise price	$	41.83		$	41.83
Risk-free rate		3.79	%		3.52	%

Changes in one or more significant unobservable inputs used in the valuation may result in a significantly higher or lower fair value measurement at the reporting dates. The change in the Level 3 derivative liabilities for the three months ended March 31, 2026 was (in thousands):


	Level 3 Warrant Liabilities
Balance December 31, 2025	$	38
Gain due to change in fair value		(2	)
Balance March 31, 2026	$	36

The change in the warrant liabilities for the three months ended March 31, 2026 was (in thousands):


	Warrants
Balance, December 31, 2025	$	1,343
Gain due to change in fair value		(200	)
Balance, March 31, 2026	$	1,143

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During the three months ended March 31, 2026, there were no transfers of instruments between Level 1, 2 and 3 in the fair value hierarchy.

There are uncertainties on the fair value measurement of the instruments classified under Level 3 due to the use of unobservable inputs and interrelationships between these unobservable inputs, which could result in higher or lower fair value measurements.

4. Cash Equivalents, Marketable Securities and Restricted Cash

The Company invests in certain U.S. government money market funds and treasury bills classified as cash equivalents and invests in certificates of deposit that are classified as restricted cash. The marketable securities consist of government securities as follows (in thousands):


	As of March 31, 2026
	Amortized Cost		Unrealized Gains		Unrealized Losses		Aggregate Fair Value
Cash equivalents
Money market funds	$	319,115	$	—	$	—	$	319,115
Total cash equivalents		319,115		—		—		319,115
Marketable securities
Government securities		44,752		208		—		44,960
Total marketable securities		44,752		208		—		44,960
Restricted cash
Certificate of deposit		776		—		—		776
Total cash equivalents, marketable securities and restricted cash	$	364,643	$	208	$	—	$	364,851


	As of December 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Aggregate Fair Value
Cash equivalents
Money market funds	$	249,393	$	—	$	—	$	249,393
Total cash equivalents		249,393		—		—		249,393
Marketable securities
Government securities		44,872		168		—		45,040
Total marketable securities		44,872		168		—		45,040
Restricted cash
Certificate of deposit		770		—		—		770
Total cash equivalents, marketable securities and restricted cash	$	295,035	$	168	$	—	$	295,203

As of March 31, 2026 and December 31, 2025, there were no marketable securities that have been in a continuous unrealized loss position for more than 12 months. For the three months ended March 31, 2026 and 2025, the net unrealized holding gain (loss) on available-for-sale securities included in accumulated other comprehensive income was less than $0.1 million and $(0.1) million, respectively, and gains of zero and $0.1 million, respectively, were reclassified out of accumulated other comprehensive income into earnings upon the sale of available-for-sale securities.

A reconciliation of the cash, cash equivalents and restricted cash reported in the balance sheets that sum to the total of the amounts shown in the condensed statements of cash flows is as follows (in thousands):


	As of March 31, 2026		As of December 31, 2025
Cash and cash equivalents	$	320,676	$	250,173
Restricted cash		776		770
Total cash, cash equivalents and restricted cash	$	321,452	$	250,943

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5. Property and Equipment, Net

Property and equipment, net consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026			December 31, 2025
Leasehold improvements	$	1,491		$	1,491
Computer equipment		162			130
Office furniture		380			380
Property and equipment		2,033			2,001
Less: Accumulated depreciation		(502	)		(420	)
Total property and equipment, net	$	1,531		$	1,581

6. Prepaid Expenses and Other Current Assets and Accrued Expenses

Prepaid expenses consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026		December 31, 2025
CRO advances	$	20,011	$	10,757
Prepaid research and development		1,381		541
Prepaid clinical trial expenses		720		750
Prepaid insurance		539		693
Other prepaid expenses and other current assets		787		478
Total prepaid expenses and other current assets	$	23,438	$	13,219

Accrued expenses consisted of the following as of March 31, 2026 and December 31, 2025 (in thousands):


	March 31, 2026		December 31, 2025
Accrued CRO costs	$	378	$	1,324
Accrued research and development costs		325		449
Accrued compensation costs		1,090		1,680
Accrued professional and consulting costs		870		350
Accrued termination benefits		262		515
Other accrued costs		132		267
Total accrued expenses	$	3,057	$	4,585

7. Leases

The Company has an office lease for its headquarters in New York, New York that continues through March 2032. The Company's real estate lease agreement includes variable payments that are passed through by the landlord, such as insurance, taxes, and common area maintenance, and payments based on the usage of the asset. Pass-through charges and payments due to changes in usage of the asset are included within variable rent expense. Operating leases are recognized over the lease term and included in general and administrative expenses in the accompanying condensed statements of operations. Variable lease expenses are recognized in general and administrative expenses in the accompanying condensed statements of operations as incurred.

In November 2025, the Company entered into an amendment to the lease agreement providing for approximately 4,600 square feet of additional office space through March 2032. The additional office space is expected to be delivered to the Company on or before July 1, 2026. The additional space will be treated as a separate lease and recognized when access is granted per ASC 842.

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The Company’s lease agreement does not contain material residual value guarantees, restrictions, or covenants. The Company has no other operating leases recognized on the accompanying condensed balance sheets.

The components of lease expense were as follows for the three months ended March 31, 2026 and 2025 (in thousands):


	Three Months Ended March 31,
	2026			2025
Operating lease expense	$	133		$	135
Short-term lease expense		—			—
Variable lease expense		(5	)		9
Total lease expense	$	128		$	144

Supplemental balance sheet information related to operating leases as of March 31, 2026 and December 31, 2025 was as follows:


	March 31, 2026			December 31, 2025
Weighted average remaining lease term (in years)		6.0		6.3
Weighted average discount rate		9.6	%		9.6	%

Other information related to leases for the three months ended March 31, 2026 and 2025 was as follows (in thousands):


	Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities	$	183	$	33

As of March 31, 2026, future minimum commitments under operating leases were as follows (in thousands): (1)


Year Ending December 31,	As of March 31, 2026
2026 (remaining period)	$	548
2027		730
2028		764
2029		775
2030		775
Thereafter		969
Total future lease payments	$	4,561
Less: imputed interest		(1,091	)
Present value of lease payments	$	3,470

(1) The table excludes approximately $2.6 million of minimum lease payments for the additional leased space for which a contract has been signed, but has not yet commenced.

8. Equity

The Company’s Amended and Restated Certificate of Incorporation designates and authorizes the Company to issue up to 510.0 million shares, consisting of: (i) 500.0 million shares of common stock, par value $0.0001 per share; and (ii) 10.0 million shares of preferred stock, par value $0.0001 per share.

Redeemable Convertible Preferred Stock

The Company's redeemable convertible preferred stock was converted to common stock in connection with the IPO in September 2025.

Common Stock

All issued shares of common stock are entitled to vote on a one share/one vote basis.

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Warrants

See Note 3 Fair Value Measurements for liability-classified warrant activity during the three months ended March 31, 2026.

Private Placement and Pre-Funded Warrants

On February 4, 2026, the Company entered into a Securities Purchase Agreement with certain investors in connection with a private placement. Pursuant to the agreement, the Company agreed to issue (i) 3,306,571 shares of its common stock, par value $0.0001 per share, at a purchase price of $21.17 per share and (ii) pre-funded warrants to purchase an aggregate of 1,417,107 shares of common stock at a purchase price of $21.1699 per pre-funded warrant, which represents the $21.17 share price less the $0.0001 per share exercise price. The transaction closed on February 6, 2026 and resulted in aggregate gross proceeds of approximately $100.0 million, consisting of approximately $70.0 million from the sale of common stock and approximately $30.0 million from the sale of pre-funded warrants.

The Company determined that the pre-funded warrants meet the conditions for equity classification and, accordingly, recorded the pre-funded warrants in permanent equity within additional paid-in capital. The common stock issued in the transaction was also recorded in permanent equity. Direct and incremental offering costs related to the transaction were recorded as a reduction of additional paid-in capital.

Each pre-funded warrant is exercisable for one share of common stock at an exercise price of $0.0001 per share and has no expiration date. The pre-funded warrants are exercisable at any time following issuance and may be exercised for cash or, in certain circumstances, on a cashless basis. The pre-funded warrants do not provide general stockholder rights prior to exercise, except as otherwise provided in the warrant agreements, including with respect to certain pro rata distributions, purchase rights and fundamental transactions. The Company has reserved a sufficient number of authorized and unissued shares of common stock to satisfy exercise of the outstanding pre-funded warrants.

In connection with the private placement, the Company also entered into a registration rights agreement with the investors. Pursuant to the registration rights agreement, the Company filed a registration statement on Form S-1 (File No. 333-294900) on April 6, 2026, which was declared effective by the SEC on April 14, 2026, covering the resale of the Registrable Securities (as such term is defined in the Securities Purchase Agreement). The Company also agreed to use reasonable best efforts to keep such registration statement effective until the earlier of the date the Registrable Securities covered by such registration statement have been sold or may be resold pursuant to Rule 144 without restriction.

9. Net Loss per Share

The following table sets forth the computation of basic and diluted net loss per share of common stock for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data):


	Three Months Ended March 31,
	2026			2025
Net loss	$	(19,054	)	$	(5,306	)
Weighted average shares outstanding used in calculating net loss per share, basic and diluted (1)		28,241,701			358,777
Net loss per share, basic and diluted	$	(0.67	)	$	(14.79	)

(1)

Included within weighted average shares of common stock outstanding for the three months ended March 31, 2026 and 2025 are 44,903 and 113,894 shares of common stock issuable upon the exercise of nominal exercise price warrants, respectively. Additionally, included within weighted average common shares outstanding for the three months ended March 31, 2026 are 850,264 shares of common stock issuable upon the exercise of pre-funded warrants issued in connection with the Company’s February 2026 private placement at an exercise price of $0.0001 per share. The pre-funded warrants are exercisable at any time for nominal consideration and are therefore included in basic and diluted weighted average shares outstanding from the date of issuance. Per ASC 260, Earnings Per Share, the 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 attributable to common stockholders.

The Company’s potentially dilutive securities, which consist primarily of stock options and convertible preferred stock, have been excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive

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impact. Therefore, the weighted average number of shares of common stock outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.

The following potentially dilutive shares, presented based on amounts outstanding at each period end, have been excluded from the calculation of diluted net loss per share (in thousands):


	March 31, 2026		March 31, 2025
Redeemable convertible preferred stock		—		2,800
Restricted stock – unvested (1)		—		7
Common stock warrants		3		4
Stock options		3,034		493
Total potentially dilutive shares		3,037		3,304

(1) As of March 31, 2026, there were 92 unvested restricted stock awards.

10. Stock-Based Compensation

The Company uses equity-based compensation programs to provide long-term performance incentives for its employees, directors and consultants. These incentives consist primarily of stock options and restricted stock grants.

In January 2017 and October 2018, the Company's Board of Directors approved the LB Pharmaceuticals Inc 2017 Stock Incentive Plan ("2017 Plan") and the LB Pharmaceuticals Inc 2018 Stock Incentive Plan ("2018 Plan"), respectively. No additional awards will be granted under the 2017 Plan or the 2018 Plan. As of both March 31, 2026 and December 31, 2025, there were 2,150 and 20,234 shares outstanding under the 2017 Plan and 2018 Plan, respectively.

In August 2023, the Company's Board of Directors approved the LB Pharmaceuticals Inc 2023 Stock Incentive Plan ("2023 Plan"). No additional awards will be granted under the 2023 Plan. As of March 31, 2026 and December 31, 2025, there were 396,728 and 397,385 shares outstanding under the 2023 Plan, respectively.

In September 2025, the Company’s stockholders approved the LB Pharmaceuticals Inc 2025 Equity Incentive Plan (“2025 Plan”). The 2025 Plan authorizes the issuance of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards and performance awards. Initially, the maximum number of shares issuable under the 2025 Plan was 2,907,335 shares. In addition, the number of shares reserved for issuance under the 2025 Plan will increase on January 1 of each calendar year, beginning on January 1, 2026 and continuing through January 1, 2035, by an amount equal to 5% of the total number of fully diluted shares outstanding on December 31 of the immediately preceding year, or a lesser number of shares as determined by the Board of Directors. On January 1, 2026, the shares reserved for issuance under the 2025 Plan increased by 1,400,197 shares pursuant to this provision. The maximum number of shares of common stock that may be issued upon the exercise of incentive stock options under the 2025 Plan is 8,722,005. As of March 31, 2026 and December 31, 2025, there were 2,015,028 and 1,882,871 shares outstanding under the 2025 Plan, respectively, and 1,873,900 and 605,412 shares were available for future issuance, respectively.

During the year ended December 31, 2025, the Company granted employees 285,000 stock options as an inducement material to the acceptance of an offer of employment in accordance with Nasdaq Listing Rule 5635(c)(4). During the three months ended March 31, 2026, the Company granted employees an additional 315,000 stock options as inducements under Nasdaq Listing Rule 5635(c)(4). On March 26, 2026, the Company filed a registration statement on Form S-8 to register the shares of common stock underlying the inducement awards.

Stock Options

The stock options granted in the three months ended March 31, 2026 and 2025 vest based on one of the following schedules: (i) 25% on the first anniversary of grant date with the remaining 75% to vest in 36 equal monthly installments thereafter through the fourth anniversary of the grant date or (ii) vesting in three equal annual installments through the third anniversary for certain

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independent board member grants. All stock options expire ten years from the grant date. The assumptions used to determine the fair value of stock options granted were as follows:


	March 31, 2026		March 31, 2025
Expected life of options (in years)	6.00 - 6.05			6.25
Risk-free interest rate	3.81% - 3.86%			4.42	%
Expected volatility	93.25% - 94.49%			86.7	%
Dividends	$	—	$	—
Fair value of common stock	$20.73 - $24.22		$	22.03

A summary of the Company’s stock option activity and related information is as follows (in thousands, except per share and contractual term data):


	Options Outstanding			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance at December 31, 2025		2,588		$	15.77		9.46	$	17,235
Granted		472			22.14
Exercised		(1	)		15.00
Forfeited		(25	)		17.51
Balance at March 31, 2026		3,034		$	16.74	9.33		$	24,420
Options vested and expected to vest as of March 31, 2026		3,034		$	16.74		9.33
Options exercisable as of March 31, 2026		192		$	17.71		7.56

The weighted average grant date fair value of the stock options granted during the three months ended March 31, 2026 was $17.27. The weighted average grant date fair value of the stock options granted during the three months ended March 31, 2025 was $25.94.

During the three months ended March 31, 2026 and 2025, the Company recognized stock-based compensation expense related to stock options as follows (in thousands):


	Three Months Ended March 31,
	2026		2025
Research and development	$	470	$	129
General and administrative		2,094		505
Total stock-based compensation	$	2,564	$	634

As of March 31, 2026, there was $34.6 million unrecognized stock-based compensation expense which is expected to be recognized over a weighted average period of 3.39 years. There were no stock options exercised or forfeited during the three months ended March 31, 2025.

There were no realized tax benefits for the three months ended March 31, 2026 and 2025.

Restricted Stock

The Company did not grant any restricted stock during the three months ended March 31, 2026 and 2025.

Restricted stock awards vest over the period in which the related services are rendered, which may range from immediate vesting to up to 36 months. Certain awards alternatively vest upon the consummation of the Company’s first underwritten public offering under the Securities Act of 1933, or on the six month anniversary of the public offering.

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(Unaudited)

A summary of the Company’s restricted stock activity is as follows:


	Shares			Weighted Average Grant Date Fair Value
Unvested Balance at December 31, 2025		6,647		$	11.15
Granted		—			—
Vested		(6,555	)		12.05
Unvested balance as of March 31, 2026		92

LB PHARMACEUTICALS INC 10-Q