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STATES\n\nSECURITIES AND EXCHANGE COMMISSION\n\nWashington, D.C. 20549\n\nForm 10-Q\n\n☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934\n\nFor the quarterly period ended March 31, 2026\n\nOR\n\n☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934\n\nFor the transition period from                      to       \n\n         \n\nCommission file number: 001-35986\n\nEsperion Therapeutics, Inc.\n\n(Exact name of registrant as specified in its charter)\n\nDelaware    26-1870780\n\n(State or other jurisdiction of\nincorporation or organization)(I.R.S. Employer\nIdentification No.)\n\n3891 Ranchero Drive, Suite 150\n\nAnn Arbor, MI 48108\n\n(Address of principal executive office) (Zip Code)\n\nRegistrant’s telephone number, including area code:\n\n(734) 887-3903\n\nSecurities registered pursuant to Section 12(b) of the Act:\n\nTitle of each class Trading Symbol(s) Name of each exchange on which registered\n\nCommon Stock, par value $0.001 per share ESPR \nNASDAQ Stock Market LLC\n\nIndicate 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 x  No o\n\nIndicate 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 x  No o\n\nIndicate 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.\n\nLarge accelerated filero    \nAccelerated filer\nx\n\nNon-accelerated fileroSmaller reporting company x\n\nEmerging growth company\no\n\nIf 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. o\n\nIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No x\n\nAs of April 30, 2026, there were 257,431,942 shares of the registrant’s Common Stock, $0.001 par value per share, outstanding.\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nEsperion Therapeutics, Inc.\n\nINDEX\n\nPage\n\n[PART I — FINANCIAL INFORMATION](#i335a280ed9bc4d30b23b59c9b553616f_10)\n\n[Item 1. Financial Statements](#i335a280ed9bc4d30b23b59c9b553616f_13)\n\n[Condensed Balance Sheets at](#i335a280ed9bc4d30b23b59c9b553616f_16)[March](#i335a280ed9bc4d30b23b59c9b553616f_16)[3](#i335a280ed9bc4d30b23b59c9b553616f_16)[1](#i335a280ed9bc4d30b23b59c9b553616f_16)[, 202](#i335a280ed9bc4d30b23b59c9b553616f_16)[6](#i335a280ed9bc4d30b23b59c9b553616f_16)[and December 31, 202](#i335a280ed9bc4d30b23b59c9b553616f_16)[5](#i335a280ed9bc4d30b23b59c9b553616f_16)\n\n[3](#i335a280ed9bc4d30b23b59c9b553616f_16)\n\n[Condensed Statements of Operations and Comprehensive Loss for the three month periods ended March 31, 2026 and 2025](#i335a280ed9bc4d30b23b59c9b553616f_19)\n\n[4](#i335a280ed9bc4d30b23b59c9b553616f_19)\n\n[Condensed Statements of Stockholders’ Deficit for the three](#i335a280ed9bc4d30b23b59c9b553616f_22)[m](#i335a280ed9bc4d30b23b59c9b553616f_22)[o](#i335a280ed9bc4d30b23b59c9b553616f_22)[n](#i335a280ed9bc4d30b23b59c9b553616f_22)[t](#i335a280ed9bc4d30b23b59c9b553616f_22)[h](#i335a280ed9bc4d30b23b59c9b553616f_22)[periods ended](#i335a280ed9bc4d30b23b59c9b553616f_22)[March](#i335a280ed9bc4d30b23b59c9b553616f_22)[3](#i335a280ed9bc4d30b23b59c9b553616f_22)[1](#i335a280ed9bc4d30b23b59c9b553616f_22)[, 202](#i335a280ed9bc4d30b23b59c9b553616f_22)[6](#i335a280ed9bc4d30b23b59c9b553616f_22)[and 202](#i335a280ed9bc4d30b23b59c9b553616f_22)[5](#i335a280ed9bc4d30b23b59c9b553616f_22)\n\n[5](#i335a280ed9bc4d30b23b59c9b553616f_22)\n\n[Condensed Statements of Cash Flows for the](#i335a280ed9bc4d30b23b59c9b553616f_25)[three](#i335a280ed9bc4d30b23b59c9b553616f_25)[month periods ended](#i335a280ed9bc4d30b23b59c9b553616f_25)[March](#i335a280ed9bc4d30b23b59c9b553616f_25)[3](#i335a280ed9bc4d30b23b59c9b553616f_25)[1](#i335a280ed9bc4d30b23b59c9b553616f_25)[, 202](#i335a280ed9bc4d30b23b59c9b553616f_25)[6](#i335a280ed9bc4d30b23b59c9b553616f_25)[and 202](#i335a280ed9bc4d30b23b59c9b553616f_25)[5](#i335a280ed9bc4d30b23b59c9b553616f_25)\n\n[6](#i335a280ed9bc4d30b23b59c9b553616f_25)\n\n[Notes to Condensed Financial Statements](#i335a280ed9bc4d30b23b59c9b553616f_28)\n\n[7](#i335a280ed9bc4d30b23b59c9b553616f_28)\n\n[Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations](#i335a280ed9bc4d30b23b59c9b553616f_88)\n\n[27](#i335a280ed9bc4d30b23b59c9b553616f_88)\n\n[Item 3. Quantitative and Qualitative Disclosures About Market Risk](#i335a280ed9bc4d30b23b59c9b553616f_109)\n\n[37](#i335a280ed9bc4d30b23b59c9b553616f_109)\n\n[Item 4. Controls and Procedures](#i335a280ed9bc4d30b23b59c9b553616f_112)\n\n[37](#i335a280ed9bc4d30b23b59c9b553616f_112)\n\n[PART II — OTHER INFORMATION](#i335a280ed9bc4d30b23b59c9b553616f_115)\n\n[Item 1. Legal Proceedings](#i335a280ed9bc4d30b23b59c9b553616f_118)\n\n[39](#i335a280ed9bc4d30b23b59c9b553616f_118)\n\n[Item 1A. Risk Factors](#i335a280ed9bc4d30b23b59c9b553616f_121)\n\n[39](#i335a280ed9bc4d30b23b59c9b553616f_121)\n\n[Item 5. Other Information](#i335a280ed9bc4d30b23b59c9b553616f_124)\n\n[43](#i335a280ed9bc4d30b23b59c9b553616f_124)\n\n[Item 6. Exhibits](#i335a280ed9bc4d30b23b59c9b553616f_127)\n\n[44](#i335a280ed9bc4d30b23b59c9b553616f_127)\n\n[Signatures](#i335a280ed9bc4d30b23b59c9b553616f_130)\n\n[46](#i335a280ed9bc4d30b23b59c9b553616f_130)\n\nFrom time to time, we may use our website, our X (formerly Twitter) account (@EsperionInc) or our LinkedIn profile at www.linkedin.com/company/esperion-therapeutics to distribute material information. Our financial and other material information is routinely posted to and accessible on the Investors & Media section of our website, available at www.esperion.com. Investors are encouraged to review the Investors & Media section of our website because we may post material information on that site that is not otherwise disseminated by us. Information that is contained in and can be accessed through our website or our LinkedIn page is not incorporated into, and does not form a part of, this Quarterly Report on Form 10-Q.\n\nWe use various trademarks and trade names in our business, including without limitation our corporate name and logo. This Quarterly Report on Form 10-Q may also contain trademarks, service marks and trade names of third parties, which are the property of their respective owners. Our use or display of third parties’ trademarks, service marks, trade names or products in this Quarterly Report on Form 10-Q is not intended to, and does not imply a relationship with, or endorsement or sponsorship by us. Solely for convenience, the trademarks and trade names in this Quarterly Report on Form 10-Q may be referred to without the ® and ™ symbols, but the omission of such references should not be construed as any indicator that their respective owners will not assert, to the fullest extent under applicable law, their rights thereto.\n\n2\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nEsperion Therapeutics, Inc.\n\nCondensed Balance Sheets\n\n(in thousands, except share data)\n\nMarch 31,\n2026December 31,\n2025\n\n(unaudited)\n\nAssets\n\nCurrent assets:\n\nCash and cash equivalents$156,158 $167,852 \n\nAccounts receivable, net132,352 140,190 \n\nInventories, net104,209 105,124 \n\nPrepaid clinical development costs5,791 4,044 \n\nPrepaid inventory costs\n54,928 40,864 \n\nOther prepaid and current assets6,023 4,496 \n\nTotal current assets459,461 462,570 \n\nProperty and equipment, net311 338 \n\nRight of use operating lease assets2,701 2,922 \n\nIntangible assets56 56 \n\nTotal assets$462,529 $465,886 \n\nLiabilities and stockholders’ deficit\n\nCurrent liabilities:\n\nAccounts payable$68,406 $65,068 \n\nAccrued clinical development costs2,677 4,115 \n\nAccrued variable consideration85,811 88,203 \n\nOther accrued liabilities17,489 19,249 \n\nRoyalty sale liability80,746 87,596 \n\nDeferred revenue from collaborations43,531 34,477 \n\nOperating lease liabilities1,699 2,102 \n\nTotal current liabilities300,359 300,810 \n\nConvertible notes, net of issuance costs97,394 97,260 \n\nRoyalty sale liability\n210,433 208,170 \n\nLong-term debt152,674 152,219 \n\nOperating lease liabilities861 653 \n\nOther long-term liabilities\n8,739 8,739 \n\nTotal liabilities770,460 767,851 \n\nCommitments and contingencies (Note 5)\n\nStockholders’ deficit:\n\nPreferred stock, $0.001 par value; 5,000,000 shares authorized and no shares issued or outstanding as of March 31, 2026 and December 31, 2025\n— — \n\nCommon stock, $0.001 par value; 480,000,000 shares authorized as of March 31, 2026 and December 31, 2025; 259,399,074 shares issued at March 31, 2026 and 247,210,341 shares issued at December 31, 2025\n257 245 \n\nAdditional paid-in capital1,395,717 1,376,499 \n\nTreasury stock, at cost; 1,994,198 shares at March 31, 2026 and December 31, 2025\n(54,998)(54,998)\n\nAccumulated deficit(1,648,907)(1,623,711)\n\nTotal stockholders’ deficit(307,931)(301,965)\n\nTotal liabilities and stockholders’ deficit$462,529 $465,886 \n\nSee accompanying notes to the condensed financial statements.\n\n3\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nEsperion Therapeutics, Inc.\n\nCondensed Statements of Operations and Comprehensive Loss\n\n(in thousands, except share and per share data)\n\n(unaudited)\n\nThree Months Ended\nMarch 31,\n\n20262025\n\nRevenues:\n\nProduct sales, net$43,391 $34,913 \n\nCollaboration revenue36,713 30,082 \n\nTotal Revenues80,104 64,995 \n\nOperating expenses:\n\nCost of goods sold34,573 31,538 \n\nResearch and development8,988 12,557 \n\nSelling, general and administrative43,124 42,996 \n\nTotal operating expenses86,685 87,091 \n\nLoss from operations\n(6,581)(22,096)\n\nInterest expense(19,798)(19,431)\n\nOther income, net1,183 1,072 \n\nNet loss\n$(25,196)$(40,455)\n\nNet loss per common share - basic and diluted\n$(0.10)$(0.21)\n\nWeighted-average shares outstanding - basic and diluted\n251,353,086 196,127,948 \n\nComprehensive loss\n$(25,196)$(40,455)\n\nSee accompanying notes to the condensed financial statements.\n\n4\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nEsperion Therapeutics, Inc.\n\nCondensed Statements of Stockholders’ Deficit\n\n(in thousands, except share data)\n\n(unaudited)\n\nCommon StockAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive Income (Loss)Treasury StockTotal Stockholders' Deficit\n\nSharesAmount\n\nBalance at December 31, 2024195,852,463 $196 $1,267,109 $(1,601,029)$— $(54,998)(388,722)\n\nVesting of restricted stock units461,779 1 — — — — 1 \n\nVesting of ESPP shares\n346,129 — 500 — — — 500 \n\nStock-based compensation\n— — 2,465 — — — 2,465 \n\nNet loss— — — (40,455)— — (40,455)\n\nBalance March 31, 2025196,660,371 $197 $1,270,074 $(1,641,484)$— $(54,998)$(426,211)\n\nCommon StockAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive Income (Loss)Treasury StockTotal Stockholders' Deficit\n\nSharesAmount\n\nBalance at December 31, 2025245,216,143 $245 $1,376,499 $(1,623,711)$— $(54,998)$(301,965)\n\nVesting of restricted stock units679,999 1 — — — — 1 \n\nVesting of ESPP shares\n258,734 — 510 — — — 510 \n\nStock-based compensation— — 2,502 — — — 2,502 \n\nExercise of warrants\n11,250,000 11 16,206 — — — 16,217 \n\nNet loss\n— — — (25,196)— — (25,196)\n\nBalance at March 31, 2026\n257,404,876 $257 $1,395,717 $(1,648,907)$— $(54,998)$(307,931)\n\nSee accompanying notes to the condensed financial statements.\n\n5\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nEsperion Therapeutics, Inc.\n\nCondensed Statements of Cash Flows\n\n(in thousands)\n\n(unaudited)\n\nThree Months Ended March 31,\n\n20262025\n\nOperating activities\n\nNet loss$(25,196)$(40,455)\n\nAdjustments to reconcile net loss to net cash used in operating activities:\n\nNon-cash royalty revenue(18,481)(10,481)\n\nDepreciation expense27 26 \n\nAmortization of debt issuance costs and discounts589 699 \n\nNon-cash interest expense related to the royalty sale liability13,894 13,090 \n\nStock-based compensation expense2,502 2,465 \n\nChanges in assets and liabilities:\n\nAccounts receivable7,838 (1,152)\n\nPrepaids and other assets(17,338)(4,925)\n\nInventories915 (4,831)\n\nDeferred revenue\n9,054 (3,976)\n\nAccounts payable3,338 27,844 \n\nOther accrued liabilities(4,864)(932)\n\nNet cash used in operating activities\n(27,722)(22,628)\n\nInvesting activities\n\nPurchase of property and equipment(189)— \n\nNet cash used in investing activities\n(189)— \n\nFinancing activities\n\nProceeds from exercise of warrants, net of issuance costs16,217 — \n\nPayment of issuance costs— (7,500)\n\nNet cash provided by (used in) financing activities\n16,217 (7,500)\n\nNet decrease in cash and cash equivalents\n(11,694)(30,128)\n\nCash and cash equivalents at beginning of period167,852 144,761 \n\nCash and cash equivalents at end of period$156,158 $114,633 \n\nSupplemental disclosure of cash flow information:\n\nNon-cash right of use asset27 30 \n\nSee accompanying notes to the condensed financial statements.\n\n6\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nEsperion Therapeutics, Inc.\n\nNotes to Condensed Financial Statements\n\n(unaudited)\n\n1. The Company and Basis of Presentation\n\nEsperion Therapeutics, Inc. (\"the Company” or \"Esperion\") is a commercial stage biopharmaceutical company currently focused on bringing new medicines to patients that address unmet medical needs. The Company has developed and is commercializing U.S. Food and Drug Administration (“FDA”) approved oral, once-daily, non-statin medicines for patients who are at risk for cardiovascular disease (\"CVD\") and are struggling with elevated low density lipoprotein cholesterol (\"LDL-C\"). Through commercial execution, product acquisitions, international partnerships and collaborations, and advancement of its pre-clinical pipeline, the Company continues to evolve into a leading global biopharmaceutical company.\n\nThe Company's lead products, NEXLETOL® (bempedoic acid) tablets and NEXLIZET® (bempedoic acid and ezetimibe) tablets, are oral, once-daily, non-statin medicines indicated to reduce the risk of myocardial infarction and coronary revascularization in adults who are unable or unwilling to take recommended statin therapy (including those not taking a statin) with established CVD, or at high risk for a CVD event but without established CVD, and to reduce LDL-C in adults with primary hyperlipidemia. The Company's products were approved by the FDA, the European Commission (\"EC\") (which, with respect to the UK, has been converted to a UK marketing authorization) and Swiss Agency for Therapeutic Products (\"Swissmedic\") in 2020. The FDA approved expanded indications for NEXLETOL and NEXLIZET tablets in March 2024. The EC approved expanded indications for NILEMDO® (bempedoic acid) tablets and NUSTENDI® (bempedoic acid and ezetimibe) tablets in May 2024. Otsuka Pharmaceutical Co., Ltd (\"Otsuka\"), Esperion’s Japanese collaborator, received approval from the Japanese Ministry of Health, Labour and Welfare to market NEXLETOL as a treatment for hypercholesterolemia and familial hypercholesterolemia in September 2025, with National Health Insurance (\"NHI\") pricing received in the fourth quarter of 2025. The Company filed supplemental NDAs for product approvals in Canada in November 2024, with NEXLETOL approval received in the fourth quarter of 2025 and NEXLIZET approval expected in the first half of 2026. The Company's collaboration partners filed in Israel in March 2025, with expected approval in the first half of 2026, and in Australia in July 2025, with expected approval in the fourth quarter of 2026.\n\nOn March 2, 2026, the Company entered into an Agreement and Plan of Merger (the “Corstasis Merger Agreement”) with Corstasis Therapeutics Inc., a Delaware corporation (“Corstasis”), Cirrus Transaction Subsidiary, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”) and certain other parties described therein. Pursuant to the Corstasis Merger Agreement, on April 2, 2026, the Company completed the merger of Corstasis with and into Merger Sub, with Corstasis surviving the merger as a wholly owned subsidiary of the Company (the “Corstasis Merger”). The aggregate up-front consideration for the transactions contemplated by the Corstasis Merger Agreement (the “Transactions”) was $75,000,000 in cash, subject to customary adjustments and a post-closing purchase price adjustment. In addition to the upfront cash consideration, the former equityholders of Corstasis are entitled to receive: (i) milestone payments up to an aggregate amount equal to $180,000,000 if certain regulatory approval or commercial sales milestones are achieved and (ii) royalty and licensing-revenue-derived payments in connection with the Company’s (or its sublicensees’) future sales of certain products. Corstasis, the developer and commercial sponsor of Enbumyst, was a privately held, commercial-stage biopharmaceutical company focused on therapies for the treatment of edema associated with cardiovascular, hepatic, and renal disease. Through the acquisition of Corstasis, the Company expanded its cardiovascular portfolio with Enbumyst (bumetanide nasal spray), the first and only FDA-approved nasal spray loop diuretic. Enbumyst received FDA approval in September 2025 for the treatment of edema associated with congestive heart failure, as well as hepatic and renal disease in adults. Refer to Note 16, \"Subsequent Events\" for further information.\n\nOn May 1, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Essence Parent Inc., a Delaware corporation (“Parent”), and Essence MergerCo Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“MergerCo”), pursuant to which, subject to the terms and conditions thereof, MergerCo will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent (the “Merger”). Subject to the terms and conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, par value $0.001 per share, of the Company (the “Company Common Stock”) issued and outstanding immediately prior to the Effective Time (other than shares of Company Common Stock (i) owned by Parent or MergerCo, (ii) owned by the Company as treasury shares or (iii) held by any person who properly exercises appraisal rights under Delaware law), will be converted into the right to receive (A) an amount in cash equal to $3.16 per share, without interest (the “Per Share Cash Consideration”), plus (B) one contractual contingent value right per share, representing the right to participate in contingent payments in cash, without interest, upon the achievement of certain milestones as set forth in the Contingent Value Rights Agreement (the “CVR Agreement”), on the terms and subject to the conditions set forth in the Merger Agreement and the CVR Agreement (the “CVR” and, together with the Per Share Cash Consideration, the “Merger Consideration”). Each CVR will entitle the holder to its pro rata share, in cash, of contingent payments of up to an additional $100,000,000 in the aggregate, without interest and less any applicable tax withholding, upon the achievement of specified milestones during the applicable milestone periods as set forth in the CVR Agreement. Consummation of the Merger is subject to the approval of the Company’s stockholders and other customary closing conditions. The Merger has not closed as of the\n\n7\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\ndate these condensed interim financial statements were issued and is expected to close in the third quarter of 2026. Accordingly, the accompanying condensed interim financial statements do not reflect the Merger or any related effects. Refer to Note 16, \"Subsequent Events\" for further information.\n\nThe Company's primary activities since incorporation have been conducting research and development activities, including nonclinical, preclinical and clinical testing, performing business and financial planning, recruiting personnel, raising capital, and commercializing its products. The Company received approval by the FDA in February 2020 to commercialize NEXLETOL and NEXLIZET in the U.S., and accordingly commenced principal operations on March 30, 2020 with the commercialization of NEXLETOL. The Company is subject to risks and uncertainties which include the need to successfully commercialize its products, research, develop, and clinically test therapeutic products; obtain regulatory approvals for its products; successfully manage relationships with its collaboration partners; expand and successfully manage its management, commercial and scientific staff; and finance its operations with an ultimate goal of achieving profitable operations.\n\nThe Company has sustained annual operating losses since inception and expects such losses to continue over the immediate future. While management believes current cash resources and future cash received from the Company's net product sales and collaboration agreements with Daiichi Sankyo Europe GmbH (\"DSE\"), Otsuka, and Daiichi Sankyo Co. Ltd (\"DS\"), and other partners, entered into on January 2, 2019, April 17, 2020 and April 26, 2021, respectively, will fund operations for the foreseeable future, management may continue to fund operations and advance the development of the Company's products and product candidates through a combination of collaborations with third parties, strategic alliances, licensing arrangements, permitted debt financings, permitted royalty-based financings, and permitted private and public equity offerings or through other sources.\n\nIf adequate funds are not available, the Company may not be able to continue the development of its current products or future product candidates, or to commercialize its current or future product candidates, if approved.\n\nBasis of Presentation\n\nThe accompanying condensed interim financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”). In the opinion of management, the Company has made all adjustments, which include only normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, have been condensed or omitted. These condensed interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2025, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The results of operations for the interim periods are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.\n\n2. Summary of Significant Accounting Policies\n\nUse of Estimates\n\nThe preparation of financial statements in accordance with GAAP in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues, expenses and related disclosures. Actual results could differ from those estimates.\n\nSegment Reporting\n\nThe Company views its operations and manages its business in one operating segment, which is the business of researching, developing and commercializing therapies for the treatment of patients with elevated LDL-C.\n\nCash and Cash Equivalents\n\nThe Company invests its excess cash in bank deposits, money market accounts, and short-term investments. The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are reported at fair value.\n\n8\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nFair Value of Financial Instruments\n\nThe Company’s cash and cash equivalents are carried at fair value. Financial instruments, including accounts receivable, other prepaid and current assets, accounts payable and accrued liabilities are carried at cost, which approximates fair value. Debt is carried at amortized cost, which approximates fair value.\n\nConcentration of Credit Risk\n\nThe Company enters into a limited number of distribution agreements with distributors and specialty pharmacies for NEXLETOL and NEXLIZET. The Company's net product sales are with these customers. As of March 31, 2026 and December 31, 2025, nine customers accounted for all of the Company's net trade receivables. As of March 31, 2026 and December 31, 2025, three customers held approximately 99% and 98%, respectively, of the Company's trade receivables associated with net product sales. For the three months ended March 31, 2026 and 2025, three customers accounted for approximately 97% and 99%, respectively, of gross sales of NEXLETOL and NEXLIZET.\n\nRevenue Recognition\n\nIn accordance with ASC 606, Revenue from Contracts with Customers (\"ASC 606\"), the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange for the goods or services provided. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: identify the contracts with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when or as the entity satisfies a performance obligation. At contract inception, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when or as the performance obligation is satisfied. The Company derives revenue through two primary sources: collaboration revenue and product sales. Collaboration revenue consists of the collaboration payments to the Company for collaboration arrangements outside of the United States for the development, manufacturing and commercialization, including royalties, of the Company's product candidates by the Company's partners and product sales consists of sales of NEXLETOL and NEXLIZET in the United States.\n\na.Collaboration Revenue\n\nThe Company has entered into agreements related to its activities to develop, manufacture, and commercialize its product candidates. The Company earns collaboration revenue in connection with a collaboration agreement to develop and/or commercialize product candidates where the Company deems the collaborator to be the customer. Revenue is recognized when (or as) the Company satisfies performance obligations under the terms of a contract. Depending on the terms of the arrangement, the Company may defer the recognition of all or a portion of the consideration received as the performance obligations are satisfied.\n\nThe collaboration agreements may require the Company to deliver various rights, services, and/or goods across the entire life cycle of a product or product candidate. In an agreement involving multiple goods or services promised to be transferred to a customer, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is \"distinct\"), or whether such promises should be combined as a single performance obligation.\n\nThe terms of the agreement typically include consideration to be provided to the Company in the form of non-refundable up-front payments, development milestones, sales milestones, and royalties on sales of products within a respective territory. The Company recognizes regulatory and approval milestones as consideration when it is probable that a future reversal is unlikely to occur. For sales-based milestones and royalties based on sales of product in a territory, the Company applies the sales-based royalty exception in ASC 606-10-55-65 to all of these milestones and royalties.\n\nAt the inception of the contract, the transaction price reflects the amount of consideration the Company expects to be entitled to in exchange for transferring promised goods or services to its customer. In the arrangement where the Company satisfies performance obligation(s) during the regulatory phase over time, the Company recognizes collaboration revenue typically using an input method on the basis of regulatory costs incurred relative to the total expected cost which determines the extent of progress toward completion. The Company reviews the estimate of the transaction price and the total expected cost each period and makes revisions to such estimates as necessary. Under contracted supply agreements with collaborators, the Company, through its third party contract manufacturing partners, may manufacture and supply quantities of active pharmaceutical ingredient (“API”), finished goods or bulk tablets reasonably required by collaboration partners for the\n\n9\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\ndevelopment or sale of licensed products in their respective territory. The Company recognizes revenue when the collaboration partner has obtained control of the API or bulk tablets. The Company records the costs related to the supply agreement in cost of goods sold on the condensed statements of operations and comprehensive loss.\n\nUnder the Company's collaboration agreements, product sales and cost of sales may be recorded by the Company's collaborators as they are deemed to be the principal in the transaction. The Company receives royalties from the commercialization of such products, and records its share of the variable consideration, representing a percentage of net product sales, as collaboration revenue in the period in which such underlying sales occur and costs are incurred by the collaborators.\n\nb.Product Sales, Net\n\nOn February 21, 2020, the Company announced that the FDA approved NEXLETOL as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On February 26, 2020, the Company announced that the FDA approved NEXLIZET as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On March 30, 2020, NEXLETOL was commercially available in the U.S. through prescription and on June 4, 2020, NEXLIZET was commercially available in the U.S. through prescription. On March 22, 2024, the Company announced that the FDA approved new label expansions for NEXLETOL and NEXLIZET based on positive CLEAR Outcomes data that include indications for cardiovascular risk reduction and expanded LDL-C lowering in both primary and secondary prevention patients. In addition, the enhanced labels support the use of NEXLETOL and NEXLIZET either alone or in combination with statins. They also include new indications for primary hyperlipidemia, alone or in combination with a statin. Product sales, net totaled $43.4 million for the three months ended March 31, 2026 and $34.9 million for the three months ended March 31, 2025.\n\nThe Company sells NEXLETOL and NEXLIZET to wholesalers in the U.S. and, in accordance with ASC 606, recognizes revenue at the point in time when the customer is deemed to have obtained control of the product. The customer is deemed to have obtained control of the product at the time of physical receipt of the product at the customers’ distribution facilities, or free on board (“FOB”) destination, the terms of which are designated in the contract.\n\nProduct sales are recorded at the net selling price, which includes estimates of variable consideration for which reserves are established for (a) rebates and chargebacks, (b) co-pay assistance programs, (c) distribution fees, (d) product returns, and (e) other discounts. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as current contractual and statutory requirements, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the applicable contract. The amount of variable consideration may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Given the early stage of the Company’s commercial operations it has provided constraint of its variable consideration due to its potential consumption trends. Actual amounts of consideration ultimately received may differ from the Company's estimates. If actual results in the future vary from estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known.\n\nLiabilities for co-pay assistance, expected product returns, rebates, and distributor fees are classified as “Accrued variable consideration” in the condensed balance sheets. Discounts, such as prompt pay discounts, and chargebacks are recorded as a reduction to accounts receivable in the condensed balance sheets.\n\nForms of Variable Consideration\n\nRebates and Chargebacks: The Company estimates reductions to product sales for Public Health Service Institutions, such as Medicaid, Medicare and Veterans' Administration (\"VA\") programs, as well as certain other qualifying federal and state government programs, and other group purchasing organizations. The Company estimates these reductions based upon the Company's contracts with government agencies and other organizations, statutorily defined discounts and estimated payor mix. These organizations purchase directly from the Company's wholesalers at a discount and the wholesalers charge the Company back the difference between the wholesaler price and the discounted price. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter. The Company's reserve for this discounted pricing is based on expected sales to qualified healthcare providers and the chargebacks that customers have already claimed.\n\nCo-pay assistance: Eligible patients who have commercial insurance may receive assistance from the Company to reduce the patient's out of pocket costs. The Company will buy down the difference between the amount of the eligible patient's co-pay when the drug is purchased at the pharmacy at a determined price. Liabilities for co-pay assistance are calculated by actual program participation from third-party administrators.\n\n10\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nDistribution Fees: The Company has written contracts with its customers that include terms for distribution fees and costs for inventory management. The Company estimates and records distribution fees due to its customers based on gross sales.\n\nProduct Returns: The Company generally offers a right of return based on the product’s expiration date and certain spoilage and damaged instances. The Company estimates the amount of product sales that may be returned and records the estimate as a reduction of product sales in the period the related product sales is recognized. The Company’s estimates for expected returns are based primarily on an ongoing analysis of sales information and visibility into the inventory remaining in the distribution channel.\n\nDiscounts: The Company provides product discounts, such as prompt pay discounts, to its customers. The Company estimates cash discounts based on terms in negotiated contracts and the Company’s expectations regarding future payment patterns.\n\nInventories, net\n\nInventories are stated at the lower of cost or net realizable value and recognized on a first-in, first-out (\"FIFO\") method. The Company uses standard cost to determine the cost basis for inventory. Inventory is capitalized based on when future economic benefit is expected to be realized.\n\nThe Company analyzes its inventory levels on a periodic basis to determine if any inventory is at risk for expiration prior to sale or has a cost basis that is greater than its estimated future net realizable value. Any adjustments are recognized through cost of goods sold in the period in which they are incurred.\n\nPrepaid Inventory Costs\n\nPrepaid inventory costs represent advance payments made by the Company to third‑party suppliers and contract manufacturers for raw materials and other inventory‑related costs for which the Company has not yet taken ownership of the materials. Prepaid inventory costs are recorded at cost, which approximates fair value, or using standard cost, and are reclassified to inventory when the related materials ownership transfers to the Company.\n\nLiability Related to the Sale of Future Royalties\n\nThe Company treats the sale of future DSE royalties as debt, amortized under the effective interest rate method over the estimated life of the royalty sale agreement. The royalty sale liability is presented net of deferred issuance costs on the condensed balance sheets. The amortization of the liability related to future royalties and related interest expense are based on the Company's current estimates of future royalties, which the Company determines by using forecasted royalty sales from its collaboration partner, historical experience, third-party forecasts and current market conditions. The Company periodically assesses the forecasted sales and to the extent the amount or timing of future estimated royalty payments is materially different than previous estimates, the Company will account for any such change by adjusting the liability related to the sale of future royalties and prospectively recognize the related non-cash interest expense. Royalty revenue is recognized and the related liability reduced as earned.\n\nRecently Issued Accounting Pronouncements\n\nIn November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40), which requires additional disclosure of the nature of expenses included in the income statement. The primary goal is to improve the decision usefulness of expense information on public business entities' income statements through the disaggregation of relevant expense captions in the notes of the financial statements. This ASU will be effective for annual periods beginning after December 15, 2026, and interim periods after December 15, 2027. The Company is currently evaluating the timing and impacts of adoption of this ASU.\n\nIn September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which amends certain aspects of the accounting for and disclosure of software costs. This ASU will be effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the timing and impacts of adoption of this ASU.\n\n11\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nThere have been no other material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.\n\n3. Collaborations with Third Parties\n\nDSE Agreement Terms\n\nOn January 2, 2019, the Company entered into a license and collaboration agreement with DSE, which was amended on June 18, 2020, and further amended on January 2, 2024 (as amended, the “DSE Agreement”). Pursuant to the DSE Agreement, the Company granted DSE exclusive commercialization rights to bempedoic acid and the bempedoic acid / ezetimibe combination tablet in the European Economic Area, United Kingdom, Turkey, and Switzerland (collectively, the “DSE Territory”). DSE is responsible for commercialization in the DSE Territory. DSE's designated affiliate in Turkey will be solely responsible, at its sole cost and expense, for all regulatory matters relating to such products in Turkey, including obtaining regulatory approval for such products in Turkey. The Company remains responsible for clinical development, regulatory and manufacturing activities for the licensed products globally, including in the DSE Territory outside of Turkey.\n\nPursuant to the DSE Agreement, the Company received upfront cash of $150.0 million in 2019 and a $150.0 million cash milestone payment in 2020 following the completion of the NUSTENDI Marketing Authorisation Applications (\"MAA\"). The Company is responsible for supplying DSE with certain manufacturing supply of the API or bulk tablets. In addition, the Company is eligible to receive additional sales milestone payments related to total net sales achievements for DSE in the DSE Territory. Finally, the Company is entitled to receive tiered fifteen percent (15%) to twenty-five percent (25%) royalties on net DSE Territory sales.\n\nThe DSE Agreement calls for both parties to participate in a Joint Collaboration Committee (the “DSE JCC”). The DSE JCC is comprised of executive management from each company and the Company will lead in all aspects related to development and DSE will lead in all aspects related to commercialization in the DSE Territory.\n\nOn January 2, 2024, the Company entered into a settlement agreement (the \"Settlement Agreement\") with DSE to amicably resolve and dismiss their commercial dispute in the Southern District of New York. Under the Settlement Agreement, DSE has agreed to pay the Company an aggregate of $125.0 million, including (1) a $100.0 million payment within 15 business days of the effective date of the Settlement Agreement and (2) a $25.0 million payment in the calendar quarter immediately following the calendar quarter in which the EMA renders a decision on the application that was filed with the EMA for a Type II(a) variation for the Company’s oral non-statin products marketed as NILEMDO (bempedoic acid) tablets and NUSTENDI (bempedoic acid and ezetimibe) tablets in Europe. Pursuant to the Settlement Agreement, also on January 2, 2024, the Company entered into a 3rd Amendment (the “DSE Amendment”) to the License and Collaboration Agreement dated January 2, 2019 with DSE. The DSE Amendment grants DSE the exclusive rights for clinical development, regulatory activities, manufacture and commercialization of a bempedoic acid/ezetimibe/statin triple combination pill in the DSE Territory. Further, after a transition period, DSE will assume sole responsibility for the manufacture of NILEMDO and NUSTENDI for the DSE Territory. As of January 2, 2024, DSE has sole authority and control of regulatory communications with the EMA regarding the pending marketing authorization applications for NILEMDO and NUSTENDI. Pursuant to the DSE Amendment, the Company is entitled to receive one-time cash payments of up to $300.0 million upon the achievement of certain commercial milestones related to total net sales achievements in the DSE Territory. The Company is also entitled to receive tiered 15% to 25% royalties on net DSE Territory sales.\n\nCollaboration Revenue\n\nIn the three months ended March 31, 2026 and 2025, the Company recognized collaboration revenue of approximately $32.7 million and $29.4 million, respectively, related to royalty revenue from DSE from the sales of NILEMDO and NUSTENDI, as well as the sales of bulk tablets and API to DSE pursuant to the supply agreement that was executed with DSE.\n\nAll remaining future potential milestone amounts were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on sales-based milestones. Additionally, the Company expects that any consideration related to sales-based milestones will be recognized when the subsequent sales occur.\n\n12\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nOtsuka Agreement Terms\n\nOn April 17, 2020, the Company entered into a license and collaboration agreement (the \"Otsuka Agreement\") with Otsuka, which was further amended on November 5, 2025. Pursuant to the Otsuka Agreement, the Company granted Otsuka exclusive development and commercialization rights to NEXLETOL and NEXLIZET in Japan (the \"Otsuka Territory\"). Otsuka will be responsible for all development, regulatory, and commercialization activities in Japan. In addition, Otsuka will fund all clinical development costs associated with the program in Japan.\n\nPursuant to the Otsuka Agreement, the consideration consists of a $60.0 million upfront cash payment and the Company will be eligible to receive additional payments of up to $450.0 million if certain regulatory and commercial milestones are achieved by Otsuka. The Company received $10.0 million in 2024 related to a milestone payment upon first Japanese New Drug Application (\"JNDA\") submissions in the Otsuka Territory. The Company received a $90.0 million payment in the fourth quarter of 2025 related to JNDA approval in the Otsuka Territory, the first NHI Price Listing for NEXLETOL in the Otsuka Territory, and the achievement of the primary major adverse cardiovascular events (“MACE”) endpoint in the CLEAR Outcomes study and inclusion of the CV risk reduction indication in the U.S. label. The potential future milestone payments include up to $10.0 million upon first JNDA approval in the Otsuka Territory for the Combination Product (as defined in the Otsuka Agreement) for the Initial Indication (as defined in the Otsuka Agreement) in the Otsuka Territory. In addition, the Company is eligible to receive additional sales milestone payments up to $310.0 million related to total net sales achievements for Otsuka in Japan. Finally, the Company will receive tiered twelve percent (12%) to thirty-three percent (33%) royalties on net sales in Japan.\n\nCollaboration Revenue\n\nThe Company considered the guidance under ASC 606 and concluded that the Otsuka Agreement was in the scope of ASC 606. In the three months ended March 31, 2026, the Company recognized collaboration revenue of $2.1 million related to royalty revenue from Otsuka and sales of bulk tablets to Otsuka pursuant to the supply agreement that was executed with Otsuka. In the three months ended March 31, 2025, the Company did not have any collaboration revenue related to the Otsuka Agreement.\n\nAll remaining future potential milestone amounts were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to royalties and sales-based milestones will be recognized when the subsequent sales occur.\n\nDS Agreement Terms\n\nIn April 2021, the Company entered into a license and collaboration agreement with DS (the \"DS Agreement\"). Pursuant to the DS Agreement, the Company granted DS exclusive rights to develop and commercialize bempedoic acid and the bempedoic acid / ezetimibe combination tablet in South Korea, Taiwan, Hong Kong, Thailand, Vietnam, Brazil, Macao, Cambodia and Myanmar (collectively, the \"DS Territory\"). In October 2025, DS terminated their rights to sell bempedoic acid and the bempedoic acid / ezetimibe combination tablet in Cambodia and Myanmar. The DS Agreement allows for potential expansion across geographies including Saudi Arabia, Kuwait, Oman, UAE, Qatar, Bahrain, Yemen, Colombia and other Latin American countries. Except for certain development activities in South Korea and Taiwan, DS will be responsible for development and commercialization in these territories. In addition, DS will fund all development costs associated with the program in the DS Territory. Pursuant to the DS Agreement, the consideration consists of a $30.0 million upfront cash payment that is non-refundable, non-reimbursable and non-creditable. The Company is also eligible to receive additional one-time payments of up to $175.0 million if certain commercial milestones are achieved by DS. Also, the Company is entitled to receive tiered royalties of five percent (5%) to twenty percent (20%) of net sales in the DS Territory.\n\nPursuant to the Settlement Agreement, on January 2, 2024, the Company entered into the 1st Amendment (the “DS Amendment”) to the License and Collaboration Agreement with DS. The DS Amendment grants DS exclusive rights for clinical development, regulatory activities, manufacture and commercialization of a bempedoic acid/ezetimibe/statin triple combination pill in the DS Territory. Further, after a transition period, DS will assume sole responsibility for the manufacture of NILEMDO and NUSTENDI for the DS Territory.\n\nCollaboration Revenue\n\nThe Company recognized approximately $1.2 million and $0.4 million of collaboration revenue in the three months ended March 31, 2026 and 2025, respectively, related to royalty revenue from DS and sales of bulk tablets per the agreement with DS.\n\n13\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nAll future potential milestone amounts were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to royalties and sales-based milestones will be recognized when the subsequent sales occur.\n\nOther Agreements\n\nOn February 26, 2025, the Company entered into a license and distribution agreement with Seqirus Pty Ltd (\"CSL Seqirus\") for the rights to commercialize NEXLETOL and NEXLIZET in Australia and New Zealand. Under the terms of the agreement, the Company will receive upfront and near-term milestone payments and will be responsible for supplying finished product to CSL Seqirus. CSL Seqirus will be responsible for commercialization, including regulatory approval, reimbursement and marketing. During the three months ended March 31, 2026, the Company did not have any collaboration revenue related to the agreement. During the three months ended March 31, 2025, the Company recognized approximately $0.3 million of collaboration revenue related to the upfront milestone payment.\n\nOn May 7, 2025, the Company entered into a license and distribution agreement with HLS Therapeutics Inc. (“HLS”) for the exclusive rights to commercialize NEXLETOL and NEXLIZET in Canada. Under the terms of the agreement, the Company will receive upfront and near-term milestone payments along with tiered royalties on product sales. The Company will be responsible for supplying finished product to HLS at a profitable transfer price. HLS will be responsible for commercialization, including reimbursement and marketing. During the three months ended March 31, 2026, the Company recognized $0.7 million of collaboration revenue related to sales of finished product pursuant to the agreement with HLS.\n\n4. Inventories, net\n\nInventories, net consist of the following (in thousands):\n\nMarch 31, 2026December 31, 2025\n\nRaw materials$100,765 $98,767 \n\nWork in process309 4,534 \n\nFinished goods3,135 1,823 \n\n$104,209 $105,124 \n\nInventory reserves were $16.4 million and $4.6 million at March 31, 2026 and December 31, 2025, respectively. Increases in prepaid inventory costs year over year are primarily driven by the timing of supplier purchases relative to the consumption of active pharmaceutical ingredient (“API”), as well as increased advance purchases to support expected demand.\n\n5. Commitments and Contingencies\n\nANDA Litigation\n\nStarting in March 2024, the Company received notices from nine pharmaceutical companies, six of which filed exclusively with respect to NEXLETOL and four of which filed with respect to NEXLETOL and NEXLIZET (each, an “ANDA Filer”), notifying the Company that each company had filed an Abbreviated New Drug Application (\"ANDA\") with the FDA seeking approval of a generic version of NEXLETOL and/or NEXLIZET in the United States, as applicable. The ANDAs each contained Paragraph IV certifications alleging that certain of the Company’s Orange Book listed patents covering NEXLETOL or NEXLIZET, as applicable, are invalid and/or will not be infringed by each ANDA Filer’s manufacture, use or sale of the medicine for which the ANDA was submitted.\n\nUnder the Hatch-Waxman Act to the Federal Food, Drug, and Cosmetic Act (\"FDCA\"), the Company had 45 days from receipt of the notice letters to commence patent infringement lawsuits against these generic drug manufacturers in a federal district court to trigger a stay precluding the FDA’s approval of any ANDA from being effective any earlier than 7.5 years from the date of approval of the NEXLETOL or NEXLIZET, as applicable, new drug application or entry of judgment holding the patents invalid, unenforceable, or not infringed, whichever occurs first.\n\nBeginning in May 2024, the Company filed patent infringement lawsuits under the Hatch-Waxman Act in the United States District Court, District of New Jersey, against each ANDA Filer: Accord Healthcare Inc.; Alkem Laboratories Ltd.; Aurobindo Pharma Limited (along with its affiliate); Dr. Reddy’s Laboratories Inc. (along with its affiliate, collectively, “Dr. Reddy’s Laboratories”); Hetero USA Inc. (along with its affiliates, collectively, “Hetero USA”); Micro Labs USA Inc. (along with its affiliate, collectively, “Micro Labs”); MSN Pharmaceuticals Inc. (along with an affiliate); Renata Limited (“Renata”); and\n\n14\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nSandoz Inc. The Company’s complaints allege that by filing the applicable ANDA, such ANDA Filer has infringed NEXLETOL’s and/or NEXLIZET’s Orange Book patents, as applicable, included in its Paragraph IV certifications, and seek an injunction preventing the FDA from granting final approval of the ANDA before the expiration of the asserted patents, and a permanent injunction to prevent the ANDA Filer from commercializing a generic version of NEXLETOL and/or NEXLIZET, as applicable, until the expiration of the asserted patents.\n\nThe Company subsequently reached settlement agreements with Micro Labs, Hetero USA, Accord Healthcare Inc., Dr. Reddy’s Laboratories, and Alkem Laboratories Ltd. in May 2025, June 2025, July 2025, October 2025 and February 2026, respectively. Each settlement agreement resolved the patent litigation brought by the Company against the particular ANDA Filer, each of which has agreed not to market a generic version of NEXLETOL and/or NEXLIZET, as applicable, in the United States prior to April 19, 2040, unless certain circumstances customarily included in these types of agreements occur. With the settlement with Dr. Reddy’s Laboratories in October 2025, there are no remaining challenges regarding the validity or infringement of U.S Patent No. 7,335,799 in the pending patent litigation with the remaining ANDA filers. Certain of the Company’s patents that remain subject to the pending patent litigation are scheduled to expire in March 2036, while others are scheduled to expire in June 2040.\n\nThe pending patent litigation against the remaining ANDA Filers (Aurobindo Pharma Limited (along with an affiliate); MSN Pharmaceuticals Inc. (along with an affiliate); Renata (along with an affiliate); and Sandoz Inc.) is ongoing, and there can be no assurance whether such ongoing patent litigation will allow a generic version of NEXLETOL and/or NEXLIZET, as applicable, to be marketed in the U.S. prior to April 19, 2040. The trial is anticipated to begin no earlier than January 2027, but no trial date has been set.\n\nIn January 2026, Renata notified the Company that it had filed an ANDA with the FDA seeking approval of a generic version of NEXLIZET in the United States (the “2026 Renata ANDA”). The 2026 Renata ANDA is in addition to the ANDA that Renata had previously filed with respect to NEXLETOL, for which the pending patent litigation described above is ongoing. Under the Hatch-Waxman Act, the Company had 45 days from receipt of the 2026 Renata ANDA notice letter to commence patent infringement lawsuits against Renata in a federal district court to trigger a stay precluding the FDA’s approval of the 2026 Renata ANDA from being effective any earlier than 7.5 years from the date of approval of the NEXLIZET new drug application or entry of judgment holding the patents invalid, unenforceable, or not infringed, whichever occurs first. In March 2026, the Company filed a patent infringement lawsuit under the Hatch-Waxman Act in the United States District Court, District of New Jersey, against Renata. The Company’s complaint alleges that by filing the 2026 Renata ANDA, Renata has infringed NEXLIZET’s Orange Book patents included in its Paragraph IV certifications, and seeks an injunction preventing the FDA from granting final approval of the 2026 Renata ANDA before the expiration of the asserted patents, and a permanent injunction to prevent Renata from commercializing a generic version of NEXLIZET until the expiration of the asserted patents. No trial date has been set.\n\n6. Cash Equivalents\n\nThe following table summarizes the Company’s cash equivalents (in thousands):\n\nMarch 31, 2026\n\nAmortized\nCostGross Unrealized GainsGross Unrealized LossesEstimated\nFair\nValue\n\nCash equivalents:\n\nMoney market funds$123,800 $— $— $123,800 \n\nCertificates of deposit405 — — 405 \n\nTotal$124,205 $— $— $124,205 \n\nDecember 31, 2025\n\nAmortized\nCostGross Unrealized GainsGross Unrealized LossesEstimated\nFair\nValue\n\nCash equivalents:\n\nMoney market funds$135,232 $— $— $135,232 \n\nCertificates of deposit404 — — 404 \n\nTotal$135,636 $— $— $135,636 \n\n15\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nDuring the three months ended March 31, 2026, other income, net in the statements of operations includes interest income on cash equivalents of $1.2 million. During the three months ended March 31, 2025, other income, net in the statements of operations includes interest income on cash equivalents of $1.1 million.\n\n7. Fair Value Measurements\n\nThe Company follows accounting guidance that emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value measurements are defined on a three level hierarchy:\n\nLevel 1 inputs:    Quoted prices for identical assets or liabilities in active markets;\n\nLevel 2 inputs:Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities or other inputs that are observable or can be corroborated by market data; and\n\nLevel 3 inputs:Unobservable inputs that are supported by little or no market activity and require the reporting entity to develop assumptions that market participants would use when pricing the asset or liability.\n\nThe following table presents the Company’s financial assets that have been measured at fair value on a recurring basis (in thousands):\n\nDescriptionTotalLevel 1Level 2Level 3\n\nMarch 31, 2026\n\nAssets:\n\nMoney market funds$123,800 $123,800 $— $— \n\nCertificates of deposit405 405 — — \n\nTotal assets at fair value$124,205 $124,205 $— $— \n\nDecember 31, 2025\n\nAssets:\n\nMoney market funds$135,232 $135,232 $— $— \n\nCertificates of deposit404 404 — — \n\nTotal assets at fair value$135,636 $135,636 $— $— \n\nThere were no transfers between Levels 1, 2 or 3 during the three months ended March 31, 2026 and 2025.\n\n8. Sale of Future Royalties\n\nOn June 27, 2024, the Company entered into the Purchase Agreement with OCM IP Healthcare Portfolio LP (\"the Purchaser\"). Pursuant to the Purchase Agreement, the Company sold to the Purchaser, and the Purchaser purchased for $304.7 million, a portion of the royalties payable on net sales of Bempedoic Acid (as defined in the License and Collaboration Agreement) and any other Licensed Products (as defined in the License and Collaboration Agreement) in the DSE Territory (as defined in the License and Collaboration Agreement) pursuant to the License and Collaboration Agreement dated January 2, 2019, between Daiichi Sankyo Europe GMBH and the Company, as amended (the “License and Collaboration Agreement” and such royalties being the “Royalty Interests”). In connection with the Purchase Agreement, the Company incurred $9.6 million in issuance costs.\n\nThe Purchaser acquired 100% of the Royalty Interests until such time as the Purchaser has received an aggregate amount equal to 1.7x of the Purchase Price (equivalent to $517.9 million). Following receipt of such amount, 100% of all Royalty Interests will revert to the Company. The Purchase Agreement contains other customary terms and conditions, including representations and warranties, covenants and indemnification obligations in favor of each party.\n\nThe Company evaluated the arrangement and determined that the proceeds from the sale of future royalties should be treated as a debt instrument according to ASC 470 Debt. The Company imputes interest expense associated with the liability using the effective interest rate method. The effective interest rate is calculated based on the rate that would enable the liability to be repaid in full over the anticipated life of the arrangement. The interest rate on the liability may vary during the term of the\n\n16\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nagreement depending on a number of factors, including the level and timing of forecasted royalty sales. The Company evaluates the interest rate quarterly based on its expectations of forecasted royalty sales from its license partner, historical experience, third-party forecasts and current market conditions utilizing the prospective method. A significant increase or decrease in future royalty sales will materially impact the royalty sale liability, interest expense and the time period for repayment. The repayment of the royalty sale liability to the Purchaser does not have a fixed repayment schedule. Rather, it will be completely repaid and extinguished when the Company has repaid an aggregate amount equal to 1.7x of the Purchase Price. The $9.6 million in issuance costs will be amortized through interest expense over the life of the agreement. Royalties are remitted to the Purchaser in the subsequent quarter from when it's earned. The Company recognizes those royalties in accounts receivable, net and accounts payable on the condensed balance sheets until the royalties are remitted to the Purchaser from DSE.\n\nAs of March 31, 2026, the Company has recorded a liability, referred to as the “Royalty sale liability” on the condensed balance sheets, of $291.2 million, net of $6.2 million of capitalized issuance costs in connection with the royalty sale liability, which will be amortized to interest expense over the estimated term, $2.1 million of which will be amortized over the next 12 months and $4.1 million thereafter. As of December 31, 2025, the Company had recorded a liability of $295.8 million, net of $6.8 million of capitalized issuance costs, in connection with the royalty sale liability. The Company currently expects to repay $80.7 million in the next twelve months.\n\nThe Company recorded $13.9 million and $13.1 million in interest expense related to this arrangement for the three months ended March 31, 2026 and 2025, respectively, which included approximately $0.6 million and $0.4 million, respectively, of amortized issuance costs.\n\nThe effective annual imputed interest rate is 1.4% as of March 31, 2026 and 1.6% as of December 31, 2025.\n\nThe following table summarizes the royalty sale liability activity during the three months ended March 31, 2026 and 2025:\n\n(in thousands)\n\nTotal royalty sale liability at December 31, 2024\n$293,610 \n\nRoyalties recognized and settled to Purchaser(10,481)\n\nInterest expense recognized\n13,090 \n\nTotal royalty sale liability at March 31, 2025\n$296,219 \n\n(in thousands)\n\nTotal royalty sale liability at December 31, 2025\n$295,766 \n\nRoyalties recognized and settled to Purchaser(18,481)\n\nInterest expense recognized\n13,894 \n\nTotal royalty sale liability at March 31, 2026\n$291,179 \n\n9. Debt\n\nCredit Agreement\n\nOn December 13, 2024, the Company entered into a credit agreement (the “Credit Agreement”) with GLAS USA LLC, as administrative agent, and Athyrium Opportunities IV Co-Invest 1 LP, HCR Stafford Fund II, L.P., HCR Potomac Fund II, L.P. and HCRX Investments HoldCo, L.P., as the initial lenders party thereto. The Credit Agreement provides for a $150.0 million term loan (the “Loan”), which was borrowed in full at closing. Proceeds from the Loan were used to repay a portion of the outstanding obligations under the Company’s existing $265.0 million aggregate principal amount 4.00% Convertible Senior Subordinated Notes due November 2025 and to pay fees and expenses in connection with the Credit Agreement.\n\nThe Loan will bear interest at an annual rate of 9.75% if paid in cash, and 11.75% if paid-in-kind. At the Company’s option, interest on the Loan may be paid-in-kind for the first four full fiscal quarters ending after the closing date. The Company elected to have interest on the Loan paid-in-kind for the second quarter ended June 30, 2025 and for the third quarter ended September 30, 2025. The Credit Agreement requires quarterly interest-only payments for the first four years after the closing date and, thereafter, the Loan will partially amortize in quarterly principal payments of 12.50%, with the outstanding balance to be repaid on the maturity date, which shall be five (5) years after the closing date (the “Maturity Date”); provided that, such amortization may be adjusted pursuant to the terms of the Credit Agreement. The Company may, at its option, prepay the Loan in whole or in part at any time, subject to concurrent payment of certain fees and, if prepaid (a) within the first two years after closing, a make-whole premium plus 3%, (b) after the second anniversary of closing and on or prior to the third anniversary, a prepayment premium of 3% and (c) after the third anniversary of closing and on or prior to the fourth anniversary, a prepayment premium of 1% (the “Prepayment Premium”). The Loan is subject to mandatory prepayment in the\n\n17\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nevent of specified asset dispositions, extraordinary receipts, unpermitted debt issuances, change of control, and, in certain circumstances, failure to settle the exchanges of the Company’s Existing Notes, subject to certain exceptions and thresholds and concurrent payment of certain fees and, if prepaid within the first four years of closing, the applicable Prepayment Premium.\n\nAll obligations under the Credit Agreement shall be guaranteed by the Company’s present and future wholly owned subsidiaries, subject to customary exceptions, and secured by assets of Company and the guarantors, including the equity interests in the Company’s subsidiaries, subject to customary exceptions. The Credit Agreement contains a financial covenant to maintain minimum liquidity of $50.0 million. The Credit Agreement contains affirmative and negative covenants customary for a senior secured loan. The negative covenants under the Credit Agreement limit the ability of the Company and its subsidiaries to, among other things, dispose of assets, engage in mergers, acquisitions, and similar transactions, incur additional indebtedness, grant liens, make investments, pay dividends or make distributions or certain other restricted payments in respect of equity, prepay other indebtedness, enter into restrictive agreements, undertake fundamental changes or amend certain material contracts, in each case subject to certain exceptions.\n\nThe Credit Agreement also contains certain customary events of default, including, but not limited to, a failure to comply with the covenants in the Credit Agreement. If an event of default has occurred and continues beyond any applicable cure period, the administrative agent or the required lenders may accelerate all outstanding obligations under the Credit Agreement and/or exercise any other remedies provided under the loan documents.\n\nIn connection with the borrowing of the Loan, the Company incurred 2.5% of original issue discount (\"OID\"), or approximately $3.8 million. In addition, the Company incurred debt issuance costs of $5.4 million in connection with the borrowing of the Loan. Both the OID and debt issuance costs were capitalized and included in long-term debt on the condensed balance sheets at the inception of the Loan, and are being amortized to interest expense using the effective interest method over the same term. As the Company elected to have interest on the loan paid-in-kind for the quarter ended June 30, 2025 and for the quarter ended September 30, 2025, $9.1 million was added to the principal balance of the Loan. As of March 31, 2026, the Company recognized $152.7 million of long-term debt related to the Credit Agreement on the condensed balance sheets, net of the remaining unamortized discount and debt issuance costs associated with the Loan of $2.6 million and approximately $3.8 million, respectively. As of December 31, 2025, the Company recognized $152.2 million of long-term debt related to the Credit Agreement on the condensed balance sheets, net of the remaining unamortized discount and debt issuance costs associated with the Loan of $2.8 million and approximately $4.1 million, respectively. During the three months ended March 31, 2026, the Company recognized approximately $4.3 million of interest expense, including $0.5 million of OID and debt issuance costs amortization. During the three months ended March 31, 2025, the Company recognized $4.1 million of interest expense, including $0.5 million of OID and debt issuance costs amortization.\n\n2025 Notes\n\nIn November 2020, the Company issued $280.0 million aggregate principal amount of 4.0% senior subordinated convertible notes due November 2025. The net proceeds the Company received from the offering was approximately $271.1 million, after deducting the initial purchasers’ discounts and commissions and offering expenses payable by the Company (the “2025 Notes”). The 2025 Notes were the Company's senior unsecured obligations and matured on November 15, 2025 (the “Maturity Date”). The 2025 Notes were convertible into shares of the Company’s common stock, and could have been repurchased for cash, or a combination thereof, at the Company’s election, at an initial conversion rate of 30.2151 shares of common stock per $1,000 principal amount of the 2025 Notes, which is equivalent to an initial conversion price of approximately $33.096 per share of common stock, subject to adjustment. The Company paid interest on the 2025 Notes semi-annually in arrears on May 15 and November 15 of each year.\n\nOn October 22, 2021, the Company entered into a privately negotiated exchange agreement (the “2021 Exchange Agreement”) with two co-managed holders (the “Holders”) of its 2025 Notes. Under the terms of the 2021 Exchange Agreement the Holders agreed to exchange (the “2021 Exchange”) with the Company $15.0 million aggregate principal amount of the Convertible Notes held in the aggregate by them (and accrued interest thereon) for shares of the Company’s common stock. Pursuant to the 2021 Exchange Agreement, the number of shares of common stock to be issued by the Company to the Holders upon consummation of the 2021 Exchange was determined based upon the volume-weighted-average-price per share of common stock, subject to a floor of $5.62 per share, during the five trading-day averaging period, commencing on the trading day immediately following the date of the 2021 Exchange Agreement. The 2021 Exchange closed on November 3, 2021 with 1,094,848 shares of the Company's common stock being exchanged.\n\nOn December 12, 2024, the Company entered into privately negotiated exchange and subscription agreements with certain holders of its 4.00% Convertible Senior Subordinated Notes due 2025 (the “2025 Notes”) pursuant to which the Company issued $100.0 million aggregate principal amount of 5.75% Convertible Senior Subordinated Notes due in June 2030 (the “2030 Notes”) consisting of (a) approximately $57.5 million principal amount of 2030 Notes, along with approximately\n\n18\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\n$153.4 million in cash, including accrued interest, issued in exchange for approximately $210.1 million principal amount of 2025 Notes (the “Exchange Transaction”). The Company also issued and sold approximately $42.5 million aggregate principal amount of 2030 Notes for cash, pursuant to privately negotiated agreements (the “Subscription Transactions” and, together with the Exchange Transaction, the “Transaction”). The Exchange Transaction closed on December 17, 2024 under an Indenture between the Company and U.S. Bank Trust Company, National Association, as trustee. In exchange for issuing the 2030 Notes pursuant to the Exchange Transaction, the Company received and cancelled the exchanged 2025 Notes.\n\nIn November 2025, the Company repaid the 2025 notes in full for $54.9 million. As of December 31, 2025, no principal amount or unamortized debt discount and issuance costs remained on the balance sheet.\n\nThe Company recorded $0.6 million of interest expense during the three months ended March 31, 2025, relating to the cash interest on the 2025 Notes due semi-annually and including the amortization of the debt issuance costs of $0.1 million.\n\n2030 Notes\n\nAs noted above, the Company issued $100.0 million aggregate principal amount of 5.75% Convertible Senior Subordinated Notes due 2030 (the “2030 Notes”) on December 17, 2024. The Company incurred approximately $3.3 million of issuance costs associated with the 2030 Notes.\n\nThe 2030 Notes mature on June 15, 2030, unless earlier converted, redeemed or repurchased. The 2030 Notes are the Company’s senior unsecured obligations and will pay interest on the 2030 Notes at an annual rate of 5.75% payable in cash semiannually in arrears on June 15 and December 15 of each year, beginning June 15, 2025. Before March 15, 2030, holders of the 2030 Notes will have the right to convert their notes only upon the occurrence of certain events. From and after March 15, 2030, holders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The Company will have the right to elect to settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock. The initial conversion rate is 326.7974 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $3.06 per share of common stock. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. The indenture governing the 2030 Notes includes certain restrictive covenants that limit the Company’s ability to incur additional indebtedness, subject to certain exceptions.\n\nThe 2030 Notes will be redeemable, in whole or in part, for cash at the Company’s option at any time, and from time to time, on or after December 20, 2027 and prior to the forty-first (41st) scheduled trading day immediately before the maturity date, but only if the last reported sale price per share exceeds 130% of the conversion price for a specified period of time and certain other conditions are satisfied. The redemption price will be equal to the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.\n\nIn addition, if the Company undergoes a “fundamental change” (as defined in the Indenture), subject to certain conditions, holders may require the Company to repurchase for cash all or part of their 2030 Notes in principal amounts of $1,000 or an integral multiple thereof. The repurchase price will be equal to the principal amount of the 2030 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.\n\nThe Indenture provides for customary events of default, including payment defaults, breaches of covenants, failure to pay certain judgments and certain events of bankruptcy, insolvency and reorganization. If an event of default occurs and is continuing, the principal amount of the 2030 Notes, plus accrued and unpaid interest, if any, may be declared immediately due and payable, subject to certain conditions set forth in the Indenture. These amounts automatically become due and payable if an event of default relating to certain events of bankruptcy, insolvency or reorganization occurs.\n\nAs of March 31, 2026, the principal amount of 2030 Notes was $100.0 million, and the unamortized debt issuance costs were $2.6 million, for a net carrying amount of $97.4 million. As of December 31, 2025, the principal amount of 2030 Notes was $100.0 million, and the unamortized debt issuance costs were $2.7 million, for a net carrying amount of $97.3 million.\n\nThe Company recorded $1.6 million of interest expense during the three months ended March 31, 2026 relating to the cash interest on the 2030 Notes due semi-annually and including amortization of the debt issuance costs of $0.1 million. The Company recorded $1.6 million of interest expense during the three months ended March 31, 2025 relating to the cash interest on the 2030 notes due semi-annually and including amortization of the debt issuance costs of $0.1 million.\n\nAs of March 31, 2026, no 2030 Notes were convertible pursuant to their terms. The estimated fair value of the 2030 Notes was $122.1 million as of March 31, 2026 and $145.3 million as of December 31, 2025. The estimated fair value of the 2030\n\n19\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nNotes was determined through consideration of quoted market prices. As of March 31, 2026, the if-converted value of the 2030 Notes did not exceed the principal value of those notes.\n\nThe Company is in compliance with all of its covenants at March 31, 2026.\n\nEstimated future principal payments due under the Loan and 2030 Notes are as follows:\n\nYears Ending December 31,\n(in thousands)\n\n2026$— \n\n2027— \n\n202819,887 \n\n2029139,206 \n\n2030100,000 \n\n2031— \n\nTotal\n$259,093 \n\n10. Other Accrued Liabilities\n\nOther accrued liabilities consist of the following (in thousands):\n\nMarch 31,\n2026December 31,\n2025\n\nAccrued legal fees\n$4,840 $2,317 \n\nAccrued compensation6,935 11,940 \n\nAccrued professional fees3,020 3,705 \n\nAccrued interest\n1,693 256 \n\nAccrued other1,001 1,031 \n\nTotal other accrued liabilities$17,489 $19,249 \n\n11. Stock Compensation\n\n2022 Stock Option and Incentive Plan\n\nIn April 2022, the Company’s board of directors (the “Board”) approved the Esperion Therapeutics, Inc. 2022 Stock Option and Incentive Plan (as amended, the “2022 Plan”), which was approved by the Company's stockholders in May 2022. The number of shares of Common Stock available for awards under the 2022 Plan was set to 4,400,000, with any shares underlying awards that are forfeited, canceled, held back upon exercise of an option or settlement of an award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance or shares, or otherwise terminated (other than by exercise) under the 2022 Plan may be added back to the shares of Common Stock available for issuance under the 2022 Plan. The 2022 Plan provides for the award of stock options (both incentive and non-qualified options), stock appreciation rights, restricted stock, restricted stock units (\"RSUs\"), unrestricted stock, cash-based awards, and dividend equivalent rights. Following the approval of the 2022 Plan, no further awards will be issued under the Company’s Amended and Restated 2013 Stock Option and Incentive Plan (the “2013 Plan”). In April 2023, the Board approved a first amendment to the 2022 Plan, which was approved by the Company's stockholders in June 2023, which increased the number of shares of Common Stock reserved for awards under the 2022 Plan to 10,650,000. In April 2024, the Board approved a second amendment to the 2022 Plan, which was approved by the Company's stockholders in May 2024, which increased the number of shares of Common Stock reserved for awards under the 2022 Plan to 16,900,000. In April 2025, the Board approved a third amendment to the 2022 Plan, which was approved by the Company's stockholders in May 2025, which increased the number of shares of Common Stock reserved for awards under the 2022 Plan to 23,150,000.\n\nEmployee Stock Purchase Plan\n\nIn April 2020, the Board approved the Esperion Therapeutics, Inc. 2020 Employee Stock Purchase Plan (as amended, the \"ESPP\"), which was approved by the Company's stockholders in May 2020 and was subsequently amended by a first amendment to the ESPP adopted by the Board in July 2020. The ESPP allows eligible employees to authorize payroll\n\n20\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\ndeductions of up to 10% of their base salary or wages up to $25,000 annually to be applied toward the purchase of shares of Common Stock on the last trading day of the offering period. Participating employees will purchase shares of Common Stock at a discount of up to 15% on the lesser of the closing price of Common Stock on the NASDAQ Global Market (i) on the first trading day of the offering period or (ii) the last day of any offering period. Offering periods under the ESPP will generally be in six months increments, commencing on September 1 and March 1 of each calendar year with the administrator having the right to establish different offering periods. In April 2024, the Board approved a second amendment to the ESPP, which was approved by the Company's stockholders in May 2024, which increased the number of shares of Common Stock reserved for future issuance under the ESPP by an additional 6,175,000 shares. During the three months ended March 31, 2026 and 2025, the Company recognized $0.1 million and $0.1 million respectively, of stock compensation expense related to the ESPP. As of March 31, 2026, there have been 1,566,114 shares issued and 5,433,886 shares reserved for future issuance under the ESPP.\n\n2017 Inducement Equity Plan\n\nIn May 2017, the Board approved the Esperion Therapeutics, Inc. 2017 Inducement Equity Plan (as amended in November 2019 and August 2023, the \"2017 Plan\"). The number of shares of Common Stock available for awards under the 2017 Plan is 2,650,000, with any shares of Common Stock that are forfeited, cancelled, held back upon the exercise or settlement of an award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance of Common Stock, or otherwise terminated (other than by exercise) under the 2017 Plan added back to the shares of Common Stock available for issuance under the 2017 Plan. The 2017 Plan provides for the granting of stock options, stock appreciation rights, restricted stock awards, restricted stock units (\"RSUs\"), unrestricted stock awards and dividend equivalent rights.\n\nStock Options\n\nThe following table summarizes the activity relating to the Company’s options to purchase Common Stock for the three months ended March 31, 2026:\n\nNumber of OptionsWeighted-Average Exercise Price Per ShareWeighted-Average Remaining Contractual Term (Years)Aggregate Intrinsic Value\n\n(in thousands)\n\nOutstanding at December 31, 20256,777,891 $5.81 7.49$7,999 \n\nGranted1,871,530 $2.44 \n\nForfeited or expired(8,125)$21.65 \n\nExercised— $— \n\nOutstanding at March 31, 20268,641,296 $5.06 7.84$4,752 \n\nVested and expected to vest at March 31, 20268,641,296 $5.06 7.84$4,752 \n\nExercisable at March 31, 20263,784,433 $8.73 6.33$1,383 \n\nStock-based compensation related to stock options was $0.7 million for the three months ended March 31, 2026, including $0.2 million that was capitalized into inventory, and $0.8 million, for the three months ended March 31, 2025, including less than $0.1 million that was capitalized into inventory. As of March 31, 2026, there was $7.6 million of unrecognized stock-based compensation expense related to unvested options, which will be recognized over a weighted-average period of 3.2 years.\n\nPerformance-Based Stock Options (\"PBSOs\")\n\nIn 2021, 2022, and 2023, the Company granted PBSOs from the 2013 Plan and the 2022 Plan, that vest upon various performance-based milestones as set forth in the individual grant agreements, such as achievement of predetermined clinical or regulatory outcomes. The actual number of units (if any) received under these awards will depend on continued employment and actual performance over the performance period. Each quarter, the Company updates their assessment of the probability that the performance milestone will be achieved. The Company amortizes the fair value of the PBSOs based on the expected performance period to achieve the performance milestone. The performance criteria was met in three months ended March 31, 2024.\n\n21\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nThe following table summarizes the activity relating to the Company’s PBSOs for the three months ended March 31, 2026:\n\nNumber of OptionsWeighted-Average Exercise Price Per ShareWeighted-Average Remaining Contractual Term (Years)Aggregate Intrinsic Value\n\n(in thousands)\n\nOutstanding at December 31, 2025443,500 $4.80 6.80$330 \n\nGranted— $— \n\nForfeited or expired— $— \n\nExercised— $— \n\nOutstanding at March 31, 2026443,500 $4.80 6.56$178 \n\nVested and expected to vest at March 31, 2026443,500 $4.80 6.56$178 \n\nExercisable at March 31, 2026443,500 $4.80 6.56$178 \n\nThere was no stock-based compensation related to PBSOs for the three months ended March 31, 2026 and 2025. As of March 31, 2026, there was no unrecognized stock-based compensation expense related to unvested PBSOs.\n\nRestricted Stock Units (\"RSUs\")\n\nThe following table summarizes the activity relating to the Company’s RSUs for the three months ended March 31, 2026:\n\nNumber of\nRSUsWeighted-Average\nFair Value Per\nShare\n\nOutstanding and unvested December 31, 20257,107,418 $1.97 \n\nGranted4,727,390 $2.45 \n\nForfeited(288,507)$2.10 \n\nVested(679,999)$2.29 \n\nOutstanding and unvested March 31, 202610,866,302 $2.15 \n\nStock-based compensation related to RSUs was approximately $1.7 million for the three months ended March 31, 2026, including $0.4 million that was capitalized into inventory, and $1.6 million for the three months ended March 31, 2025, including $0.1 million that was capitalized into inventory. As of March 31, 2026, there was $22.7 million of unrecognized stock-based compensation expense related to unvested RSUs, which will be recognized over a weighted-average period of 3.3 years.\n\nThe following table summarizes the total stock-based compensation expense in each of the income statement line items for the three months ended March 31, 2026 and 2025:\n\nThree months ended March 31\n\n(in thousands)\n\n2026\n\n2025\n\nResearch and development$397 $369 \n\nSelling, general and administrative2,105 2,096 \n\nTotal stock compensation expense\n$2,502 $2,465 \n\n12. Income Taxes\n\nThere was no provision for income taxes for the three months ended March 31, 2026 and 2025, because the Company has incurred annual operating losses since inception. At March 31, 2026, the Company continues to conclude that it is not more likely than not that the Company will realize the benefit of its deferred tax assets due to its history of losses. Accordingly, a full valuation allowance has been applied against the net deferred tax assets.\n\n22\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\n13. Segment Reporting\n\nThe Company has one reportable segment. The majority of the Company's business consists of researching, developing and commercializing therapies for the treatment of patients with elevated LDL-C. The segment derives net product sales through sale of its NEXLETOL and NEXLIZET tablets to customers in the United States and through collaboration agreements with other third party companies to develop, manufacture and commercialize its products outside the United States. Net product sales were $43.4 million and $34.9 million for the three months ended March 31, 2026 and 2025, respectively. Collaboration revenue, which includes milestone payments, royalty revenues and sales of the Company's tablets to its collaboration partners, was $36.7 million and $30.1 million for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026 and 2025, collaboration revenue was primarily derived in Europe and Japan from the Company's partners, DSE and Otsuka. The Company manages the business activities on a consolidated basis. The accounting policies of the segment are the same as those described in Note 2 “Summary of Significant Accounting Policies.\"\n\nThe Company's chief operating decision maker is the Chief Executive Officer (\"CODM\"). The CODM assesses the performance of the Company and decides how to allocate resources based on revenues and net (loss) income, which is reported on the condensed statements of operations. The chief operating decision maker also assesses performance by reviewing net cash (used in) provided by operating expenses, which is reported on the condensed statements of cash flows. The measure of segment assets is reported on the condensed balance sheets as total assets. The chief operating decision maker also reviews cash and cash equivalents. A significant component of the CODM's decision-making process is to ensure a balanced investment in research and development, as well as commercial activities to drive near-term success and sustain for the long term.\n\n14. Stockholders' Deficit\n\nOffering\n\nOn October 7, 2025, the Company entered into an Underwriting Agreement (the “2025 Underwriting Agreement”) with Piper Sandler & Co. and Cantor Fitzgerald & Co., as representative of the several underwriters (collectively, the “2025 Underwriters”), related to an underwritten public offering (the “2025 Offering”) of 30,000,000 shares (the “2025 Underwritten Shares”) of the Company’s Common Stock, at a public offering price of $2.50 per share. In addition, under the terms of the 2025 Underwriting Agreement, the underwriters were granted a 30-day option to purchase up to an additional 4,500,000 shares of Common Stock, at the public offering price. On October 10, 2025, the 2025 Underwriters gave notice to the Company of their partial election to exercise the underwriters' option to purchase 1,065,000 additional shares, which closed on October 14, 2025. Giving effect to the partial exercise of the underwriters' option, the Company issued an aggregate of 31,065,000 shares of Common Stock in the 2025 Offering, with net proceeds to the Company of approximately $72.6 million, after deducting the underwriting discount and offering expenses of approximately $5.1 million.\n\nWarrants\n\nIn connection with an underwriting agreement with H.C. Wainwright & Co., LLC (\"Wainwright\") on December 2, 2021, (the \"December 2021 Offering\"), the Company issued warrants to purchase 36,964,286 shares of Common Stock at an exercise price of $9.00 and an expiration date of December 7, 2023. The warrants were recorded at fair value of $61.9 million to additional-paid-in-capital in accordance with ASC 815-10 based upon the allocation of the proceeds between the shares of Common Stock issued with the December 2021 Offering and the warrants. On December 7, 2023, 27,940,074 of these warrants expired. The remaining 9,024,212 warrants were amended as described below.\n\nRegistered Direct Offering and Warrant Amendment\n\nOn March 19, 2023, the Company entered into a purchase agreement (the \"2023 Purchase Agreement\") with the Purchasers named therein (the \"Purchasers\") pursuant to which the Company agreed to issue and sell, in a registered direct offering (the \"Registered Direct Offering\"), 12,205,000 shares of Common Stock, pre-funded warrants (\"Pre-Funded Warrants\") to purchase up to an aggregate of 20,965,747 shares of Common Stock in lieu of shares of Common Stock, and warrants (\"Warrants\") to purchase up to 33,170,747 shares of Common Stock. The combined purchase price of each share of Common Stock and accompanying Warrant is $1.675 per share. The Warrants expire on September 22, 2026 and have an exercise price of $1.55. The purchase price of each Pre-Funded Warrant is $1.674 (equal to the combined purchase price per share of Common Stock and accompanying Warrant, minus $0.001). The 2023 Purchase Agreement contains customary representations, warranties, covenants and indemnification rights and obligations of the Company and the Purchasers. The Registered Direct Offering closed on March 22, 2023. The Warrants and Pre-Funded Warrants were recorded at fair value of $22.8 million to additional-paid-in-capital in accordance with ASC 815-10 based upon the allocation of the proceeds between the shares of Common Stock issued with the Registered Direct Offering and the Warrants and Pre-Funded Warrants. The Company estimated the fair value of the Warrants using a Black-Scholes option-pricing model, which is based, in part, upon subjective assumptions including but\n\n23\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\nnot limited to stock price volatility, the expected life of the warrant, the risk-free interest rate and the fair value of Common Stock underlying the warrant. The Company estimates the volatility based on its historical volatility that is in line with the expected remaining life of the Warrants. The risk-free interest rate is based on the U.S. Treasury daily rate for a maturity similar to the expected remaining life of the Warrants. The expected remaining life of the Warrants is assumed to be equivalent to its remaining contractual term. The Company estimated the fair value of the Pre-Funded Warrants based on the market price of Common Stock at issuance.\n\nIn connection with the Registered Direct Offering, the Company amended, pursuant to Warrant Amendment Agreements, certain existing warrants to purchase up to an aggregate of 9,024,212 shares of Common Stock that were previously issued in December 2021 at an exercise price of $9.00 per share and had an expiration date of December 7, 2023, effective upon the closing of the Registered Direct Offering, such that the amended warrants have a reduced exercise price of $1.55 per share and expire three and one half years following the closing of the Registered Direct Offering, or September 22, 2026, for additional consideration of $0.125 per amended warrant. Based on the change in the fair value of the amended warrants, the Company recorded issuance costs to additional paid-in capital of $2.9 million.\n\nThe Company received gross proceeds of approximately $55.5 million from the Registered Direct Offering, before deducting placement agent fees and related offering expenses. The net proceeds to the Company from the Registered Direct Offering, after deducting the placement agent fees and expenses and the Company’s offering expenses of $4.2 million, were approximately $51.3 million. In addition, the Company received approximately $1.2 million as the gross consideration in connection with the Warrant Amendment Agreements. The net proceeds of the Warrant Amendment Agreements after deducting placement fees of $0.1 million were approximately $1.1 million.\n\nAs of March 31, 2026, no Pre-Funded Warrants were outstanding. During the three months ended March 31, 2026, 11,250,000 warrants were exercised. During the three months ended March 31, 2025, no warrants were exercised. As of March 31, 2026 and December 31, 2025, the Company had 7,642,700 and 18,892,700 of outstanding warrants related to the Warrant Amendment Agreements and Purchase Agreement, respectively, at a weighted average exercise price of $1.55 and an expiration date of September 22, 2026.\n\n15. Net Loss Per Common Share\n\nBasic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common stock equivalents outstanding for the period, including shares that potentially could be dilutive if they were exercised or vested during the period, determined using the treasury-stock method and the if-converted method for shares issuable upon conversion of convertible notes. For purposes of this calculation, warrants for common stock, stock options, PBSOs, unvested RSUs, shares issuable under the ESPP and shares issuable upon conversion of the convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.\n\nThe shares outstanding at the end of the respective periods presented below were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:\n\nMarch 31,\n\n20262025\n\nCommon shares under option8,641,296 6,889,915 \n\nCommon shares under PBSOs443,500 632,950 \n\nUnvested RSUs10,866,302 9,066,649 \n\nShares issuable related to the ESPP178,127 129,624 \n\nShares issuable upon conversion of convertible notes32,679,739 34,338,912 \n\nWarrants7,642,700 26,071,429 \n\nTotal potential dilutive shares60,451,664 77,129,479 \n\n24\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\n16. Subsequent Events\n\nOn April 2, 2026 (the “Closing Date”), the Company entered into the Amendment to the Credit Agreement, by and among the Company, as the borrower, the lenders party thereto and Administrative Agent. The First Amendment amends that certain Credit Agreement, by and among the Company, the Administrative Agent and the lenders party thereto. The Amendment, among other things, provides for the incurrence of additional term loans in an aggregate principal amount of $25,000,000 (the “First Amendment Term Loans”), to be used, among other things, to finance a portion of the acquisition of Corstasis (as defined below). Amounts available under the First Amendment Term Loans were borrowed in full on the Closing Date. The First Amendment Term Loans bear the same terms as the outstanding term loans under the Existing Credit Agreement.\n\nOn the Closing Date, the Company entered into a Royalty Purchase Agreement (the “Purchase Agreement”) with Athyrium Opportunities IV Acquisition LP, a limited partnership formed under the laws of the State of Delaware (the “Purchaser”). Pursuant to the Purchase Agreement, the Company sold to the Purchaser, and the Purchaser purchased for $50,000,000, a portion of the royalties payable to the Company on net sales of Bempedoic Acid (as defined in the License and Collaboration Agreement) and any other Licensed Products (as defined in the License and Collaboration Agreement) in the Otsuka Territory (as defined in the License and Collaboration Agreement), and of the regulatory and commercial milestones payable, in each case, pursuant to the License and Collaboration Agreement dated as of April 17, 2020, between Otsuka Pharmaceutical Co., Ltd., a corporation organized and existing under the laws of Japan, and the Company, as amended (the “License and Collaboration Agreement” and such payments, the “Receivables”). The Purchaser acquired 100% of the Receivables until such time as the Purchaser receives an aggregate amount equal to $100,000,000. Following receipt of such amount, 100% of all Receivables will revert to the Company. The Purchase Agreement contains other customary terms and conditions, including representations and warranties, covenants and indemnification obligations in favor of each party.\n\nOn March 2, 2026, the Company entered into the Corstasis Merger Agreement with Corstasis, Cirrus Transaction Subsidiary, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”) and certain other parties described therein. Pursuant to the Corstasis Merger Agreement, on April 2, 2026, the Company completed the Corstasis Merger. The aggregate up-front consideration for the Transactions was $75,000,000 in cash, subject to customary adjustments and a post-closing purchase price adjustment. In addition, the equityholders of Corstasis are entitled to receive: (i) milestone payments up to an aggregate amount equal to $180,000,000 if certain regulatory approval or commercial sales milestones are achieved and (ii) royalty and licensing-revenue-derived payments in connection with the Company’s (or its sublicensees’) future sales of certain products. The Company has not completed its assessment of the accounting for the Corstasis Merger as either an asset acquisition or business combination, as the Company is still in the process of obtaining historical financial information from Corstasis, and gathering the information needed to perform significance evaluations under Regulation S‑X Article 11.\n\nOn May 1, 2026, the Company entered into the Merger Agreement with Parent and MergerCo, pursuant to which, subject to the terms and conditions thereof, MergerCo will merge with and into the Company with the Company continuing as the surviving corporation and a wholly owned subsidiary of Parent. Subject to the terms and conditions set forth in the Merger Agreement, at the Effective Time, each share of the Company Common Stock issued and outstanding immediately prior to the Effective Time (other than shares of Company Common Stock (i) owned by Parent or MergerCo, (ii) owned by the Company as treasury shares or (iii) held by any person who properly exercises appraisal rights under Delaware law), will be converted into the right to receive (A) the Per Share Cash Consideration, plus (B) one contractual contingent value right per share, representing the right to participate in contingent payments in cash, without interest, upon the achievement of certain milestones as set forth in the CVR Agreement, on the terms and subject to the conditions set forth in the Merger Agreement and the CVR Agreement. Each CVR will entitle the holder to its pro rata share, in cash, of contingent payments of up to an additional $100,000,000 in the aggregate, without interest and less any applicable tax withholding, upon the achievement of specified milestones during the applicable milestone periods as set forth in the CVR Agreement.\n\nConsummation of the Merger is subject to the approval of the Company’s stockholders and other customary closing conditions, including, without limitation, (i) the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and the receipt of certain non-U.S. antitrust approval, (ii) the absence of legal restraints prohibiting the Merger, (iii) the accuracy of the other party’s representations and warranties, subject to certain customary materiality qualifications set forth in the Merger Agreement, (iv) the other party’s compliance in all material respects with its obligations under the Merger Agreement, and (v) no Material Adverse Effect (as defined in the Merger Agreement) with respect to the Company having occurred since the date of the Merger Agreement that is continuing. The Merger Agreement contains certain termination rights for the Company and Parent. Upon termination of the Merger Agreement, (i) Parent, under specified circumstances, including termination by the Company because Parent fails to consummate the Merger when required by the Merger Agreement, will be required to pay the Company a termination fee in the amount of $68,309,078; and (ii) the Company, under specified circumstances, including termination by the Company in order to enter into an acquisition agreement providing for a Superior Proposal, will be required to pay Parent a termination fee in the\n\n25\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)\n\namount of $34,154,539. The Merger has not closed as of the date these interim condensed financial statements were issued and is expected to close in the third quarter of 2026. Accordingly, the accompanying interim condensed financial statements do not reflect the Merger or any related effects.\n\n26\n\n[Table of Contents](#i335a280ed9bc4d30b23b59c9b553616f_7)"}