{"url_path":"/sec/mnpr/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Financial Statements**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/1645469/0001437749-26-016982-index.html","accession_number":"0001437749-26-016982","cik":"0001645469","ticker":"MNPR","issuer_name":"Monopar Therapeutics","edgar_url":"https://www.sec.gov/Archives/edgar/data/1645469/0001437749-26-016982-index.html","primary_entity_key":"0001645469","primary_entity_name":"Monopar Therapeutics"},"word_count":9984,"has_tables":true,"body_markdown":"**Item 1. Financial Statements**\n\n \n\n**Monopar Therapeutics Inc.**\n\n \n\n**Condensed Consolidated**\n\n**Balance Sheets**\n\n**(Unaudited)**\n\n \n\n  \n**March 31, 2026**\n  \n**December 31, 2025***\n \n\n         \n\n**Assets**\n \n\n         \n\nCurrent assets:\n        \n\nCash and cash equivalents\n $52,544,263  $61,833,552 \n\nInvestments\n  84,948,677   78,565,491 \n\nOther current assets\n  250,903   63,745 \n\nTotal current assets\n  137,743,843   140,462,788 \n\n         \n\nOperating lease right-of-use asset\n  239,882   254,921 \n\nTotal assets\n $137,983,725  $140,717,709 \n\n         \n\n**Liabilities and Stockholders**’**Equity**\n \n\n         \n\nCurrent liabilities:\n        \n\nAccounts payable, accrued expenses and other current liabilities\n $2,457,748  $2,735,236 \n\nTotal current liabilities\n  2,457,748   2,735,236 \n\n         \n\nNon-current operating lease liability\n  131,565   154,920 \n\nTotal liabilities\n  2,589,313   2,890,156 \n\n         \n\nCommitments and contingencies (Note 8)\n          \n\n         \n\nStockholders’ equity:\n        \n\nCommon stock, par value of $0.001 per share, 40,000,000 shares authorized, 6,699,062 and 6,692,140 shares issued and outstanding at March 31, 2026, and December 31, 2025, respectively\n  6,699   6,692 \n\nAdditional paid-in capital\n  228,691,772   227,199,002 \n\nAccumulated other comprehensive income (loss)\n  98,521   131,389 \n\nRetained earnings (accumulated deficit)\n  (93,402,580)  (89,509,530)\n\nTotal stockholders’ equity\n  135,394,412   137,827,553 \n\nTotal liabilities and stockholders’ equity\n $137,983,725  $140,717,709 \n\n \n\n* Derived from the Company’s audited consolidated financial statements.\n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements. \n\n \n\n7\n\n[Table of Contents](#toc)\n\n \n\n \n\n**Monopar Therapeutics Inc.**\n\n \n\n**Condensed Consolidated**\n\n**Statements of Operations and Comprehensive Income (Loss)**\n\n**(Unaudited)**\n\n \n\n \n \n\n**Three Months Ended March 31,**\n\n \n\n \n \n\n**2026**\n\n \n \n\n**2025**\n\n \n\nOperating expenses:\n\n \n \n \n \n \n \n \n \n\nResearch and development\n\n \n$\n3,487,247\n \n \n$\n1,643,375\n \n\nGeneral and administrative\n\n \n \n1,738,006\n \n \n \n1,578,442\n \n\nTotal operating expenses\n\n \n \n5,225,253\n \n \n \n3,221,817\n \n\nIncome (loss) from operations\n\n \n \n(5,225,253\n)\n \n \n(3,221,817\n)\n\nInterest income (loss)\n\n \n \n1,332,203\n \n \n \n596,845\n \n\n**Net income (loss)**\n\n \n \n**(3,893,050**\n**)**\n \n \n**(2,624,972**\n**)**\n\nOther comprehensive income (loss):\n\n \n \n \n \n \n \n \n \n\nForeign currency translation gain (loss), net\n\n \n \n(190\n)\n \n \n1,239\n \n\nUnrealized gain (loss) on investments, net\n\n \n \n(32,678\n)\n \n \n346\n \n\nComprehensive income (loss)\n\n \n$\n(3,925,918\n)\n \n$\n(2,623,387\n)\n\nNet income (loss) per share:\n\n \n \n \n \n \n \n \n \n\nBasic and diluted\n\n \n$\n(0.46\n)\n \n$\n(0.38\n)\n\nWeighted average shares outstanding:\n\n \n \n \n \n \n \n \n \n\nBasic and diluted\n\n \n \n8,535,443\n \n \n \n6,987,381\n \n\n \n\n \n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n \n\n8\n\n[Table of Contents](#toc)\n\n \n\n \n\n**Monopar Therapeutics Inc.**\n\n \n\n**Condensed Consolidated Statements of Stockholders**’**Equity**\n\n**Three Months Ended March 31, 2026**\n\n**(Unaudited)**\n\n \n\n \n \n \n* *\n** **\n \n \n* *\n** **\n \n \n* *\n** **\n \n\n**Accumulated**\n\n \n \n**Retained**\n** **\n \n \n* *\n** **\n\n \n \n \n* *\n** **\n \n \n* *\n** **\n \n\n**Additional**\n\n \n \n\n**Other**\n\n \n \n**Earnings**\n** **\n \n\n**Total**\n\n \n\n \n \n\n**Common Stock**\n\n \n \n\n**Paid-in**\n\n \n \n\n**Comprehensive**\n\n \n \n\n**(Accumulated**\n\n \n \n\n**Stockholders’**\n\n \n\n \n \n\n**Shares**\n\n \n \n\n**Amount**\n\n \n \n\n**Capital**\n\n \n \n\n**Income (Loss)**\n\n \n \n\n**Deficit)**\n\n \n \n\n**Equity**\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at January 1, 2026\n\n \n \n6,692,140\n \n \n$\n6,692\n \n \n$\n227,199,002\n \n \n$\n131,389\n \n \n$\n(89,509,530\n)\n \n$\n137,827,553\n \n\nIssuance of common stock to employees pursuant to vested restricted stock units, net of taxes\n\n \n \n6,922\n \n \n \n7\n \n \n \n(200,210\n)\n \n \n—\n \n \n \n—\n \n \n \n(200,203\n)\n\nStock-based compensation\n\n \n \n*—*\n \n \n \n—\n \n \n \n1,692,980\n \n \n \n—\n \n \n \n—\n \n \n \n1,692,980\n \n\nNet income (loss)\n\n \n \n*—*\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(3,893,050\n)\n \n \n(3,893,050\n)\n\nOther comprehensive income (loss)\n\n \n \n*—*\n \n \n \n—\n \n \n \n—\n \n \n \n(32,868\n)\n \n \n—\n \n \n \n(32,868\n)\n\nBalance at March 31, 2026\n\n \n \n6,699,062\n \n \n$\n6,699\n \n \n$\n228,691,772\n \n \n$\n98,521\n \n \n$\n(93,402,580\n)\n \n$\n135,394,412\n \n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n \n\n9\n\n[Table of Contents](#toc)\n\n \n\n**Monopar Therapeutics Inc.**\n\n \n\n**Condensed Consolidated Statements of Stockholders**’**Equity**\n\n**Three Months Ended March 31, 2025**\n\n**(Unaudited)**\n\n \n\n \n \n \n* *\n** **\n \n \n* *\n** **\n \n \n* *\n** **\n \n\n**Accumulated**\n\n \n \n**Retained**\n** **\n \n \n* *\n** **\n\n \n \n \n* *\n** **\n \n \n* *\n** **\n \n\n**Additional**\n\n \n \n\n**Other**\n\n \n \n**Earnings**\n** **\n \n\n**Total**\n\n \n\n \n \n\n**Common Stock**\n\n \n \n\n**Paid-in**\n\n \n \n\n**Comprehensive**\n\n \n \n\n**(Accumulated**\n\n \n \n\n**Stockholders’**\n\n \n\n \n \n\n**Shares**\n\n \n \n\n**Amount**\n\n \n \n\n**Capital**\n\n \n \n\n**Income (Loss)**\n\n \n \n\n**Deficit)**\n\n \n \n\n**Equity**\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at January 1, 2025\n\n \n \n6,102,560\n \n \n$\n6,103\n \n \n$\n130,787,312\n \n \n$\n35,992\n \n \n$\n(75,792,636\n)\n \n$\n55,036,771\n \n\nIssuance of common stock to employees pursuant to vested restricted stock units, net of taxes\n\n \n \n8,487\n \n \n \n8\n \n \n \n(131,137\n)\n \n \n—\n \n \n \n—\n \n \n \n(131,129\n)\n\nStock-based compensation\n\n \n \n*—*\n \n \n \n—\n \n \n \n1,355,017\n \n \n \n—\n \n \n \n—\n \n \n \n1,355,017\n \n\nIssuance of common stock upon exercise of stock options\n\n \n \n4,167\n \n \n \n4\n \n \n \n15,443\n \n \n \n—\n \n \n \n—\n \n \n \n15,447\n \n\nNet income (loss)\n\n \n \n*—*\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n \n \n(2,624,972\n)\n \n \n(2,624,972\n)\n\nOther comprehensive income (loss)\n\n \n \n*—*\n \n \n \n—\n \n \n \n—\n \n \n \n(57,776\n)\n \n \n—\n \n \n \n(57,776\n)\n\nBalance at March 31, 2025\n\n \n \n6,115,214\n \n \n$\n6,115\n \n \n$\n132,026,635\n \n \n$\n(21,784\n)\n \n$\n(78,417,608\n)\n \n$\n53,593,358\n \n\n \n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n \n\n10\n\n[Table of Contents](#toc)\n\n \n\n**Monopar Therapeutics Inc.**\n\n**Condensed Consolidated**\n\n**Statements of Cash Flows**\n\n**(Unaudited)**\n\n \n\n \n \n\n**For the Three Months Ended**\n\n \n\n \n \n\n**March 31,**\n\n \n\n \n \n\n**2026**\n\n \n \n\n**2025**\n\n \n\n \n \n \n \n \n \n \n \n \n\n**Cash flows from operating activities:**\n\n \n \n \n** **\n \n \n \n** **\n\nNet income (loss)\n\n \n$\n(3,893,050\n)\n \n$\n(2,624,972\n)\n\nAdjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:\n\n \n \n \n \n \n \n \n \n\nStock-based compensation expense\n\n \n \n1,692,980\n \n \n \n1,355,017\n \n\nNet amortization of investment discounts and premiums\n\n \n \n(799,634\n)\n \n \n(119,509\n)\n\n**Changes in operating assets and liabilities, net**\n\n \n \n \n** **\n \n \n \n** **\n\nOther current assets\n\n \n \n(187,039\n)\n \n \n(502,034\n)\n\nIn-process research and development accrued expenses\n\n \n \n—\n \n \n \n(3,000,000\n)\n\nAccounts payable, accrued expenses and other current liabilities\n\n \n \n(287,138\n)\n \n \n(770,968\n)\n\nOperating lease right-of-use assets and liabilities, net\n\n \n \n(25\n)\n \n \n(850\n)\n\nNet cash provided by (used in) operating activities\n\n \n \n(3,473,906\n)\n \n \n(5,663,316\n)\n\n**Cash flows from investing activities:**\n\n \n \n \n** **\n \n \n \n** **\n\nPurchase of short-term investments\n\n \n \n(40,837,552\n)\n \n \n(1,925,828\n)\n\nMaturities of short-term investments\n\n \n \n35,254,000\n \n \n \n1,600,000\n \n\nNet cash provided by (used in) investing activities\n\n \n \n(5,583,552\n)\n \n \n(325,828\n)\n\n**Cash flows from financing activities:**\n\n \n \n \n** **\n \n \n \n** **\n\nTaxes paid related to net share settlement of vested restricted stock units\n\n \n \n(200,203\n)\n \n \n(131,129\n)\n\nCash proceeds from the issuance of stock upon exercise of stock options\n\n \n \n—\n \n \n \n15,447\n \n\nNet cash provided by (used in) financing activities\n\n \n \n(200,203\n)\n \n \n(115,682\n)\n\nEffect of exchange rate and valuation changes on cash equivalents\n\n \n \n(31,628\n)\n \n \n(54\n)\n\nNet increase (decrease) in cash and cash equivalents\n\n \n \n(9,289,289\n)\n \n \n(6,104,880\n)\n\n**Cash and cash equivalents at beginning of period**\n\n \n \n61,833,552\n \n \n \n45,816,289\n \n\n**Cash and cash equivalents at end of period**\n\n \n$\n52,544,263\n \n \n$\n39,711,409\n \n\n \n \n \n \n \n \n \n \n \n\nSupplemental disclosure of non-cash investing and financing activities:\n\n \n \n \n \n \n \n \n \n\nLease liability arising out of obtaining right-of-use asset\n\n \n$\n291,726\n \n \n$\n9,903\n \n\n \n\nThe accompanying notes are an integral part of these condensed consolidated financial statements.\n\n \n\n \n\n11\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\nMarch 31, 2026\n\n \n\n**Note 1**–**Nature of Business and Liquidity**\n\n \n\n**Nature of Business**\n\n \n\nMonopar Therapeutics Inc. (“Monopar,” the “Company,” “we,” “us,” and “our” and similar terms mean Monopar Therapeutics Inc. and its subsidiaries except where the context otherwise requires) is a clinical-stage biopharmaceutical company developing an innovative treatment for Wilson disease and novel radiopharmaceuticals for oncology. Monopar’s Wilson disease product candidate is *ALXN1840,* a late-stage, investigational once-daily, oral medicine. The Company’s radiopharmaceutical programs consist of MNPR-*101*-Zr (Phase *1*) for imaging advanced cancers, and MNPR-*101*-Lu (Phase *1a*) and MNPR-*101*-Ac (late preclinical) for the treatment of advanced cancers that express urokinase plasminogen activator receptor (“uPAR”).\n\n \n\nThe Company builds its drug development pipeline through both in-house efforts and licensing of late preclinical- and clinical-stage therapeutics, leveraging its scientific and clinical expertise to reduce risk and accelerate development.\n\n \n\n**Liquidity**\n\n \n\nThe Company has incurred an accumulated deficit of approximately** **$93.4 million as of *March 31, 2026*, and since inception has not generated any revenue. To date, the Company has primarily funded its operations with net proceeds from the Company’s initial and subsequent public offerings of its common stock on Nasdaq, sales of its common stock in the public market through at-the-market sales agreements, private placements of convertible preferred stock and of common stock, private placements of pre-funded warrants, and cash provided in an asset purchase transaction. Management estimates that currently available cash will provide sufficient funds to enable the Company to meet its obligations at least through *December 31, 2027.*The Company’s ability to fund its future operations, including the development of *ALXN1840* and the continued clinical development of its radiopharmaceutical programs, is dependent upon the Company’s ability to execute its business strategy, to obtain additional funding and/or to execute collaborative research agreements. There can be *no* certainty that future financing or collaborative research agreements will occur in the amounts required or at a time needed to maintain operations, if at all.\n\n \n\n**Going Concern Assessment**\n\n \n\nThe Company applies Accounting Standards Codification (“ASC”) *205*-*40* (“ASC *205*-*40”*), *Disclosure of Uncertainties about an Entity*’*s Ability to Continue as a Going Concern*, which the Financial Accounting Standards Board (“FASB”) issued to provide guidance on determining when and how reporting companies must disclose going concern uncertainties in their financial statements. ASC *205*-*40* requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within *one* year of the date of issuance of the entity’s financial statements (or within *one* year after the date on which the financial statements are available to be issued, when applicable). Further, a company must provide certain disclosures if there is “substantial doubt about the entity’s ability to continue as a going concern.” In *March **2026,* the Company analyzed its cash requirements through *December 31, 2027, *and has determined that, based upon the Company’s current available cash and cash equivalents, the Company has *no* substantial doubt about its ability to continue as a going concern.\n\n \n\n**Risks Related to the Company’****s Financial Condition and Capital Requirements**\n\n \n\nMany, if *not* most, biopharmaceutical companies never become profitable and are acquired, merged, or liquidated before successfully developing any product that generates revenue from commercial sales to enable profitability. The Company has incurred losses since inception and expects to continue to incur substantial operating losses over the next several years. These losses stem from the clinical development of the Company’s current and future licensed and/or purchased product candidates and will continue for the foreseeable future. As a result, the Company anticipates that it will seek additional capital to fund its future operations. The Company’s ability to raise sufficient funds to support continued clinical, regulatory, pre-commercial and commercial development and to make contractual future milestone payments, as well as to raise additional funds to support any existing or future product candidate programs through completion of clinical trials, approval processes and, if applicable, commercialization is uncertain.\n\n \n\nThe amount of future losses, and when, if ever, the Company would become profitable, are uncertain. The Company’s ability to generate revenue and achieve profitability will depend on, among other things, successfully completing the development of its product candidates; obtaining necessary regulatory approvals from the FDA and international regulatory agencies; establishing manufacturing/quality, sales, and marketing and distribution arrangements with *third* parties; obtaining adequate reimbursement by *third*-party payers; and raising sufficient funds to finance its activities. If the Company is unsuccessful at some or all of these undertakings, its business, financial condition, and results of operations are expected to be materially and adversely affected.\n\n \n\n*12*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\n**Note 2**–**Significant Accounting Policies**\n\n \n\n****\n\n**Basis of Presentation**\n\n \n\nThese condensed consolidated financial statements include the financial results of Monopar Therapeutics Inc., its wholly-owned French subsidiary, Monopar Therapeutics, SARL, and its wholly-owned Australian subsidiary, Monopar Therapeutics Australia Pty Ltd, and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and include all disclosures required by GAAP for financial reporting. Amounts in tables in the condensed consolidated financial statements and accompanying footnotes *may**not* sum due to rounding. All intercompany accounts have been eliminated. The principal accounting policies applied in the preparation of these condensed consolidated financial statements are set out below and have been consistently applied in all periods presented. The Company has been primarily involved in performing research activities, developing product candidates, and raising capital to support and expand these activities.\n\n \n\nThe accompanying interim unaudited condensed consolidated financial statements contain all normal, recurring adjustments necessary to present fairly the Company’s condensed consolidated financial position as of *March 31, 2026*, and the Company’s condensed consolidated results of operations and comprehensive income (loss) for the *three* months ended *March 31, 2026* and *2025*, and the Company’s condensed consolidated cash flows for the *three* months ended *March 31, 2026* and *2025*.\n\n \n\nThe interim condensed consolidated results of operations and comprehensive income (loss) and condensed consolidated cash flows for the periods presented are *not* necessarily indicative of the condensed consolidated results of operations or cash flows which *may*be reported for the remainder of *2026* or for any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto for the year ended *December 31, 2025,*included in the Company’s Annual Report on Form *10*-K, as amended, filed with the SEC on *March 27, 2026.*\n\n \n\n******\n\n***Functional Currency***\n\n \n\nThe Company’s functional currency is the U.S. Dollar. The Company’s Australian subsidiary and French subsidiary use the Australian Dollar and European Euro, respectively, as their functional currency. At each quarter-end, each foreign subsidiary’s balance sheets are translated into U.S. Dollars based upon the quarter-end exchange rate, while their statements of operations and comprehensive income (loss) and statements of cash flows are translated into U.S. Dollars based upon an average exchange rate during the period.\n\n \n\n****\n\n**Comprehensive Income (Loss)**\n\n \n\nComprehensive income (loss) represents net income (loss) plus any income or losses *not* reported in the condensed consolidated statements of operations and comprehensive income (loss), such as foreign currency translation gains and losses and unrealized gains and losses on debt security investments that are reflected on the Company’s condensed consolidated statements of stockholders’ equity.\n\n \n\n****\n\n**Use of Estimates**\n\n \n\nThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of expenses in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates.\n\n \n\n****\n\n**Cash Equivalents**\n\n \n\nThe Company considers all highly liquid investments purchased with a maturity of *three* months or less on the date of purchase to be cash equivalents. Cash equivalents as of *March 31, 2026*, and *December 31, 2025*, consisted of money market accounts, U.S. Treasury securities, and commercial paper.\n\n \n\n******\n\n***Investments***\n\n \n\nThe Company considers all of its investments in debt securities (U.S. government or agencies thereof, and commercial paper), to be either available-for-sale or held-to-maturity securities. Available-for-sale investments are recorded at fair value, with the unrealized gains and losses reflected in accumulated other comprehensive income (loss) on the Company’s condensed consolidated balance sheets. Held-to-maturity investments are securities that management has the intent and ability to hold to maturity and are reported at amortized cost. Realized gains and losses from the sale of investments, if any, are recorded net in the condensed consolidated statements of operations and comprehensive income (loss). The investments selected by the Company have a low level of inherent credit risk given they are issued by the U.S. government or consist of high-quality commercial paper. Changes in their value are primarily attributable to changes in interest rates and market liquidity, as well as, in the case of discounted short-term instruments, the amortization of any purchase discount over the remaining term to maturity. Investments as of *March 31, 2026*, consisted of U.S. Treasury securities and commercial paper with maturities of over *three* months to *one* year and were recorded as held-to-maturity investments.\n\n \n\n*13*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n  \n\n****\n\n**Prepaid Expenses**\n\n \n\nPrepayments are expenditures for goods or services before such goods are used or such services are received and are charged to operations as the benefits are realized. Prepaid expenses *may*include payments to development collaborators in excess of actual expenses incurred by the collaborators, measured at the end of each reporting period. Prepayments also include insurance premiums, dues and subscriptions and software costs of $10,000 or more per year that are expensed monthly over the life of the respective contracts, which are typically *one* year. Prepaid expenses are reflected on the Company’s condensed consolidated balance sheets as other current assets.\n\n \n\n****\n\n**Leases**\n\n \n\nLease agreements are evaluated to determine whether each arrangement is or contains a lease in accordance with ASC *842,* *Leases *(“ASC *842”*). Right-of-use (“ROU”) lease assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The ROU lease asset on the Company’s condensed consolidated balance sheets includes any lease payments made and excludes lease incentives. The incremental borrowing rate, taking into consideration the Company’s credit quality and borrowing rate for similar assets, is used in determining the present value of future payments. Lease expense is recorded as general and administrative (“G&A”) expenses on the Company’s condensed consolidated statements of operations and comprehensive income (loss).\n\n \n\n****\n\n**Concentration of Credit Risk**\n\n \n\nFinancial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents. The Company maintains cash and cash equivalents at *three* reputable financial institutions. As of *March 31, 2026*, the balances at *two* financial institutions were in excess of the $250,000 Federal Deposit Insurance Corporation (“FDIC”) insurable limit. The Company has *not* experienced any losses on its deposits since inception, and management believes the Company is *not* exposed to significant risks with respect to these financial institutions.\n\n \n\n****\n\n**Fair Value of Financial Instruments**\n\n \n\nFor financial instruments consisting of cash and cash equivalents, investments, accounts payable, accrued expenses, and other current liabilities, the carrying amounts are reasonable estimates of fair value due to their relatively short maturities.\n\n \n\nThe Company adopted ASC *820,* *Fair Value Measurements and Disclosures,*as amended, which addresses the measurement of the fair value of financial assets and financial liabilities. Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date.\n\n \n\nThe standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect assumptions that market participants would use in pricing an asset or a liability based on market data obtained from independent sources. Unobservable inputs reflect a reporting entity’s pricing of an asset or a liability developed based on the best information available under the circumstances. The fair value hierarchy consists of the following *three* levels:\n\n \n\n*Level 1*– instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets.\n\n \n\n*Level 2*– instrument valuations are obtained from readily available pricing sources for comparable instruments.\n\n \n\n*Level 3*– instrument valuations are obtained without observable market values and require a high level of judgment to determine the fair value.\n\n \n\n*14*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\nDetermining which category an asset or a liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures for each reporting period. There were *no* transfers between Level *1,* *2* or *3* of the fair value hierarchy during the *three* months ended *March 31, 2026* and *2025*. The following table presents the assets and liabilities recorded that are reported at fair value on the Company’s condensed consolidated balance sheets on a recurring basis. *No* values were recorded in Level *3* as of *March 31, 2026*, and *December 31, 2025*. The Company has no liabilities reported at fair value on a recurring basis.\n\n \n\n \n\n**Assets and Liabilities Measured at Fair Value on a Recurring Basis**\n\n \n\n**March 31, 2026**\n \n**Level 1**\n  \n**Total**\n \n\nAssets:\n        \n\nCash equivalents(1)\n $52,369,292  $52,369,292 \n\n**Total**\n **$****52,369,292**  **$****52,369,292**\n \n\n \n\n \n\n**December 31, 2025**\n \n**Level 1**\n  \n**Total**\n \n\nAssets:\n        \n\nCash equivalents(1)\n $60,875,969  $60,875,969 \n\n**Total**\n **$****60,875,969**  **$****60,875,969** \n\n \n\n(*1*)\nCash equivalents as of *March 31, 2026*, and *December 31, 2025*, represent the fair value of the Company’s investments in money market accounts, U.S. Treasury securities and commercial paper. All cash equivalents have maturities at the date of purchase of *three* months or less. These securities are classified as Level *1* within the fair value hierarchy as fair value is determined based on unadjusted quoted prices in active markets due to the short-term nature of these instruments.\n\n \n\nAs of *March 31, 2026*, and *December 31, 2025*, the Company’s investments consist of held-to-maturity U.S. Treasury securities and commercial paper, with maturities ranging from over *three* months to *one* year. These investments are classified as Level *2* and are valued utilizing observable inputs, aside from the quoted market prices. See Note *3* for additional information on investments.\n\n \n\n*15*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\n****\n\n**Net Income (Loss) per Share**\n\n \n\nNet income (loss) per share for the *three* months ended *March 31, 2026* and *2025*, is calculated by dividing net income (loss) by the weighted-average shares of common stock outstanding during the periods. Diluted net income (loss) per share for the *three* months ended *March 31, 2026* and *2025*, is calculated by dividing net income (loss) by the weighted-average shares of the sum of a) weighted-average common stock outstanding (8,535,443 and 6,987,381 shares for the *three* months ended *March 31, 2026*and *2025*, respectively) and b) potentially dilutive shares of common stock (such as stock options and warrants) outstanding during the period. As of *March 31, 2026* and *2025*, potentially dilutive securities included stock-based awards to purchase up to 842,973 and 769,612 shares of the Company’s common stock, respectively. For the *three* months ended *March 31, 2026* and *2025*, potentially dilutive securities are excluded from the computation of fully diluted net income (loss) per share as their effect is anti-dilutive. Pre-funded warrants outstanding during the *three* months ended *March 31, 2026*and *2025,* are exercisable at a nominal price and are considered, in substance, equivalent to outstanding common stock. Accordingly, such pre-funded warrants have been included in the calculation of weighted-average shares of common stock outstanding for purposes of basic and diluted net income (loss) per share. \n\n \n\n****\n\n**Research and Development Expenses**\n\n \n\nResearch and development (“R&D”) costs are expensed as incurred. Major components of R&D expenses include salaries and benefits paid to the Company’s R&D staff, compensation expenses of G&A personnel performing R&D, fees paid to consultants and to the entities that conduct certain R&D activities on the Company’s behalf, and materials and supplies which were used in R&D activities during the reporting period.\n\n \n\n****\n\n**In-process Research and Development Expense**\n\n \n\nIn-process research and development (“IPR&D”) expense represents the costs to acquire technologies to be used in R&D that have *not* reached technological feasibility, have *no* alternative future uses and thus are expensed as incurred. IPR&D expense also includes upfront license fees and milestones paid to collaborators, with *no* alternative use, which are expensed as goods are received or when services are rendered. The upfront payments upon execution of the agreement to license *ALXN1840,* comprising $4 million in cash and $4.6 million in Monopar’s common stock issued to Alexion, were recorded as IPR&D expense during the year ended *December 31, 2024.*The foregoing cash payment consisted of $1 million paid to Alexion upon execution of the agreement during the year ended *December 31, 2024,*and the remaining $3 million paid to Alexion in *January 2025,*pursuant to the terms of the agreement.\n\n \n\n****\n\n**Clinical Trials Accruals**\n\n \n\nThe Company accrues and expenses the costs for clinical trial activities performed by *third* parties based upon estimates of the percentage of work completed over the life of each individual study in accordance with agreements established with contract research organizations, service providers, and clinical trial sites. The Company estimates the amounts to accrue based upon discussions with internal clinical personnel and external service providers as to the progress or stage of completion of the trials or services and the agreed upon fees to be paid for such services. Costs of setting up clinical trial sites for participation in the trials are expensed immediately as R&D expenses. Clinical trial site costs related to patient screening and enrollment are accrued as patients are screened/entered into the trial.\n\n \n\n****\n\n**Collaborative Agreements**\n\n \n\nThe Company and its collaborative partners are active participants in collaborative agreements, and all parties would be exposed to significant risks and rewards depending on the technical and commercial success of the activities. Contractual payments to the other parties in collaboration agreements and costs incurred by the Company, when the Company is deemed to be the principal participant for a given transaction, are recognized on a gross basis in R&D expenses. Royalties and license payments are recorded as earned.\n\n \n\nDuring the *three* months ended *March 31, 2026* and *2025*, *no* milestones were met, and *no* royalties were earned; therefore, the Company did *not* pay or accrue/expense any license or royalty payments.\n\n \n\n****\n\n**Licensing Agreements**\n\n \n\nThe Company has various agreements licensing technology utilized in the development of its product and technology programs. The licenses contain success milestone obligations and royalties on future sales. During the *three* months ended *March 31, 2026* and *2025*, *no* milestones were met, and *no* royalties were earned; therefore, the Company did *not* pay or accrue/expense any license or royalty payments under any of its license agreements other than the upfront fees recorded as IPR&D expense during the year ended *December 31, 2024, *as discussed above.\n\n \n\nSee Note *8* for additional discussion regarding the Company’s Licensing Agreements.\n\n \n\n****\n\n**Patent Costs**\n\n \n\nThe Company expenses the costs related to issued patents and patent applications, including costs related to legal, renewal and application fees, as a component of G&A expenses in its condensed consolidated statements of operations and comprehensive income (loss).\n\n \n\n*16*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\n****\n\n**Income Taxes**\n\n \n\nThe Company uses an asset and liability approach for accounting for deferred income taxes, which requires recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in its financial statements but have *not* been reflected in its taxable income. Estimates and judgments are required in the calculation of certain tax liabilities and in the determination of the recoverability of certain deferred income tax assets, which arise from temporary differences and carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled.\n\n \n\nThe Company regularly assesses the likelihood that its deferred income tax assets will be realized from recoverable income taxes or recovered from future taxable income. To the extent that the Company believes any amounts are *not* “more likely than *not”* to be realized, the Company records a valuation allowance to reduce the deferred income tax assets. In the event the Company determines that all or part of the net deferred tax assets are *not* realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. Similarly, if the Company subsequently determines that deferred income tax assets, previously determined to be unrealizable, are now realizable, the respective valuation allowance would be reversed, resulting in an adjustment to earnings in the period such determination is made.\n\n \n\nInternal Revenue Code Sections *382* and *383* (“Sections *382* and *383”*) limit the use of net operating loss (“NOL”) carryforwards and R&D credits, after an ownership change. To date, the Company has *not* conducted a Section *382* or *383* study; however, because the Company will continue to raise significant amounts of equity in the coming years, the Company expects that Sections *382* and *383* will limit the Company’s usage of NOLs and R&D credits in the future.\n\n \n\nASC *740,* *Income Taxes*, requires that the tax benefit of NOLs, temporary differences, and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than *not.”* Realization of the future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. The Company has reviewed the positive and negative evidence related to the realizability of the deferred tax assets and has concluded that the deferred tax assets are *not* “more likely than *not”* to be realized. As a result, the Company recorded a full valuation allowance as of *March 31, 2026*, and *December 31, 2025*. U.S. Federal R&D tax credits from *2016* to *2019* were utilized to reduce payroll taxes in future periods and were recorded as other current assets (anticipated to be received within *12* months) on the Company’s condensed consolidated balance sheets. The Company intends to maintain the valuation allowance until sufficient evidence exists to support its reversal. The Company regularly reviews its tax positions. For a tax benefit to be recognized, the related tax position must be “more likely than *not”* to be sustained upon examination. Any amount recognized is generally the largest benefit that is “more likely than *not”* to be realized upon settlement. The Company’s policy is to recognize interest and penalties related to income tax matters as an income tax expense. For the *three* months ended *March 31, 2026* and *2025*, the Company did not have any interest or penalties associated with unrecognized tax benefits.\n\n \n\nOn *July 4, 2025,*new U.S. tax legislation was signed into law formally known as “An Act to provide for reconciliation pursuant to title II of H. Con. Res. *14,”* and commonly referred to as the “One Big Beautiful Bill Act” or “OBBBA”, which makes permanent many of the tax provisions enacted in *2017* as part of the Tax Cuts and Jobs Act that were set to expire at the end of *2025.* In addition, the OBBBA makes changes to certain U.S. corporate tax provisions, with certain provisions effective in *2025* and others to be implemented in *2026* and subsequent years. The Company determined that such changes did *not* have a significant impact on the condensed consolidated financial statements for the *three* months ended *March **31,* *2026.* The Company is currently assessing the potential implications of future provisions of the legislation on its operations and on the Company’s condensed consolidated financial statements and will continue to monitor future administrative guidance and regulations that clarify the legislative text of the OBBBA and the bill’s potential effect on the Company’s income taxes.\n\n \n\n****\n\n**Stock-Based Compensation**\n\n \n\nThe Company accounts for stock-based compensation arrangements with employees, non-employee directors and consultants using a fair value method, which requires the recognition of compensation expense for costs related to all stock-based awards, including stock option and restricted stock unit (“RSU”) grants. The fair value method requires the Company to estimate the fair value of stock-based payment awards on the date of grant using an option pricing model or the closing stock price on the date of grant in the case of RSUs.\n\n \n\n*17*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\nStock-based compensation costs for stock awards granted to the Company’s employees, non-employee directors and consultants are based on the fair value of the underlying instruments calculated using the Black-Scholes option-pricing model on the date of grant for stock options and using the closing stock price on the date of grant for RSUs and recognized as an expense on a straight-line basis. Determining the appropriate fair value model and related assumptions requires judgment, including selecting methods for estimating the Company’s future stock price volatility and expected holding term. The expected stock price volatility is based on an analysis of the Company’s stock price history over a period commensurate with the expected term of the options, trading volume of the Company’s stock, look-back volatilities and Company specific events that affected volatility in a prior period. Forfeitures only include actual forfeitures to date as the Company accounts for forfeitures as they occur. The expected term for options granted to date is estimated using the simplified method. The Company has *not* paid dividends and does *not* anticipate paying a cash dividend in future vesting periods and, accordingly, uses an expected dividend yield of zero. The risk-free interest rate is based on the rate of U.S. Treasury securities with maturities consistent with the estimated expected term of the awards.\n\n \n\n****\n\n**Pre-funded Warrants**\n\n \n\nThe Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrants’ specific terms and applicable authoritative guidance set forth in ASC *480,* *Distinguishing Liabilities from Equity* (“ASC *480”*) and ASC *815,* *Derivatives and Hedging* (“ASC *815”*). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC *480,* whether the warrants meet the definition of a liability pursuant to ASC *480,* or whether the warrants meet all of the requirements for equity classification under ASC *815.*\n\n \n\nWarrants that meet all of the criteria for equity classification are required to be recorded as a component of additional paid-in capital at the time of issuance, or when the conditions for equity classification are met, and are *not* remeasured. The Company will assess whether the warrants are indexed to the Company’s own common shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. Liability classified warrants are required to be accounted for at fair value both on the date of issuance and on subsequent accounting period ending dates, with all changes in fair value after the issuance date recorded in the condensed consolidated statements of operations and comprehensive income (loss). In accordance with GAAP, and through the application of professional judgment, the Company concludes on the appropriate classification of warrants as either liability or equity. The pre-funded warrants issued in *2024* and in *2025* met the equity classification criteria and are recorded in additional-paid-in-capital as permanent equity.\n\n \n\n****\n\n**Segment Reporting**\n\n \n\nThe Company operates as a single reportable segment, focusing on the development of clinical and preclinical product candidates, with the Chief Executive Officer acting as the Chief Operating Decision Maker (“CODM”). The Company has yet to generate revenue domestically or internationally and anticipates substantial expenses and operating losses as it advances its product candidates through clinical trials and regulatory processes. The CODM assesses financial performance primarily using net income (loss), supplemented by internal budget and cash forecast models, to guide resource allocation and performance evaluation. Segment assets are reported as total assets on the Company’s condensed consolidated balance sheet, and segment income (loss) is reflected as net income (loss) on the Company’s condensed consolidated statements of operations and comprehensive income (loss), effectively mirroring the Company’s overall financial position due to its single-segment structure.\n\n \n\n****\n\n**Recent Accounting Pronouncements**\n\n \n\nIn *November 2024,*the FASB issued ASU *2024*-*03,* *Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures* *(Subtopic 220-40): Disaggregation of Income Statement Expenses,* which is intended to enhance transparency into the nature and function of expenses, primarily through additional disclosures on certain costs and expenses. This new standard is effective for fiscal years beginning with annual disclosures in *2027* and interim periods beginning in *2028.* Early adoption is permitted. The standard *may *be applied prospectively to financial statements issued for periods after the effective date of this ASU or retrospectively. The Company is currently assessing the impact ASU *2024*-*03* will have on its condensed consolidated financial statements, including its footnote disclosures.\n\n \n\nIn *December 2025,*the FASB issued ASU *2025*-*11,* *Interim Reporting (Topic 270): Narrow-Scope Improvements*, which clarifies the guidance in Topic *270* to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU *2025*-*11* is effective for fiscal years beginning after *December 15, 2027,*including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of adoption of ASU *2025*-*11* on its condensed consolidated financial statements and related disclosures.\n\n \n\nOther recent authoritative guidance issued by the FASB (including technical corrections to the FASB ASC), the American Institute of Certified Public Accountants, and the SEC did *not* or are *not* expected to have a material impact on the Company’s condensed consolidated financial statements and related disclosures.\n\n \n\n \n\n**Note 3**–** Cash Equivalents and Investments**\n\n \n\nAs of *March 31, 2026*, the Company had money market accounts and available-for-sale investments with contractual maturities of *three* months or less categorized as cash equivalents as follows:\n\n \n\n**As of March 31, 2026**\n \n**Cost Basis**\n  \n**Unrealized Gains**\n  \n**Unrealized Losses**\n  \n**Aggregate Fair Value**\n \n\n                 \n\nU.S. Treasury Securities\n $7,759,050  $30,732  $—  $7,789,782 \n\nCommercial Paper\n  41,045,555   93,906   **—**** **  41,139,461 \n\nMoney Market Accounts\n  3,440,048   —   —   3,440,048 \n\n**Total**\n **$****52,244,653**  **$****124,638**  **$****—**** ** **$****52,369,292** \n\n \n\nAs of *March 31, 2026*, there were no available-for-sale securities in an unrealized-loss position.\n\n \n\n*18*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\nAs of *December 31, 2025*, the Company had money market accounts and available-for-sale investments with contractual maturities of *three* months or less categorized as cash equivalents as follows:\n\n \n\n**As of December 31, 2025**\n \n**Cost Basis**\n  \n**Unrealized Gains**\n  \n**Unrealized Losses**\n  \n**Aggregate Fair Value**\n \n\n                 \n\nU.S. Treasury Securities\n $12,730,543  $25,314  $—  $12,755,857 \n\nCommercial Paper\n  41,703,814   132,003   —   41,835,818 \n\nMoney Market Accounts\n  6,284,294   —   —   6,284,294 \n\n**Total**\n **$****60,718,652**  **$****157,317**  **$****—**  **$****60,875,969** \n\n \n\nAs of *December 31, 2025*, there were no available-for-sale securities in an unrealized-loss position.\n\n \n\nAs of *March 31, 2026*, and *December 31, 2025*, the Company had held-to-maturity investments with contractual maturities of over *three* months to *one* year. These investments are reported as held-to-maturity because the Company has both the positive intent and ability to hold these investments to maturity; they are stated at amortized cost, adjusted for the amortization of any related premiums or the accretion of any related discounts into interest income. \n\n \n\nThe held-to-maturity investments are reported in the condensed consolidated balance sheet as of *March 31, 2026*, and consist of the following: \n\n \n\n**As of March 31, 2026**\n \n**Amortized Cost**\n  \n**Unrealized Gains**\n  \n**Unrealized Losses**\n  \n**Fair Market Value**\n \n\n                 \n\nU.S. Treasury Securities\n $24,253,762  $3,201  $(2,162) $24,254,801 \n\nCommercial Paper\n  60,694,915   101   (23,997)  60,671,019 \n\n**Total**\n **$****84,948,677**  **$****3,302**  **$****(26,159****)** **$****84,925,821** \n\n \n\nAs of *March 31, 2026*, gross unrealized gains and unrealized losses for held-to-maturity securities were $3,302 and $26,159, respectively. The Company has determined that these gross unrealized losses of $26,159 are primarily attributable to fluctuations in market interest rates rather than credit-related factors. The Company’s commercial paper and U.S. Treasury holdings consist of high-credit-quality issuers and government-backed securities, respectively. The Company evaluated its held-to-maturity securities for expected credit losses and determined that any such losses would be immaterial. This assessment is based on the high credit quality of the issuers, the short-term nature of the instruments, and the Company’s intent and ability to hold these investments until maturity. Accordingly, *no* allowance for credit losses was recorded as of *March 31, 2026*.\n\n \n\nThe held-to-maturity investments are reported in the consolidated balance sheet as of *December 31, 2025,*and consist of the following:\n\n \n\n**As of December 31, 2025**\n \n**Amortized Cost**\n  \n**Unrealized Gains**\n  \n**Unrealized Losses**\n  \n**Fair Market Value**\n \n\n                 \n\nU.S. Treasury Securities\n $30,147,733  $18,931  $—  $30,166,664 \n\nCommercial Paper\n  48,417,758   3,616   (2,284)  48,419,090 \n\n**Total**\n **$****78,565,491**  **$****22,547**  **$****(2,284****)** **$****78,585,754** \n\n \n\nAs of *December 31, 2025*, gross unrealized gains and unrealized losses for held-to-maturity securities were $22,547 and $2,284, respectively. The Company has determined that these gross unrealized losses of $2,284 are primarily attributable to fluctuations in market interest rates rather than credit-related factors. The Company’s commercial paper and U.S. Treasury holdings consist of high-credit-quality issuers and government-backed securities, respectively. The Company evaluated its held-to-maturity securities for expected credit losses and determined that any such losses would be immaterial. This assessment is based on the high credit quality of the issuers, the short-term nature of the instruments, and the Company’s intent and ability to hold these investments until maturity. Accordingly, *no* allowance for credit losses was recorded as of *December 31, 2025*.\n\n \n\nSee Note *2* for additional discussion regarding the Company’s fair value measurements.\n\n \n\n \n\n**Note 4**–** Capital Stock**\n\n \n\nHolders of the common stock are entitled to receive such dividends as *may*be declared by the Board of Directors out of funds legally available therefor. To date *no* dividends have been declared. Upon dissolution and liquidation of the Company, holders of the common stock are entitled to a ratable share of the net assets of the Company remaining after payments to creditors of the Company. The holders of shares of common stock are entitled to *one* vote per share for the election of each director nominated to the Board and *one* vote per share on all other matters submitted to a vote of stockholders.\n\n \n\nThe Company’s amended and restated certificate of incorporation authorizes the Company to issue 40,000,000 shares of common stock with a par value of $0.001 per share.\n\n \n\n \n\n*19*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\n**Sales of Common Stock**\n\n \n\nThe Company priced an underwritten public offering of common stock on *September 23, 2025,*as described below under *“September 2025*Capital Raise” and “Share Repurchase.”\n\n \n\n**December 2024 Pre-funded Warrants**\n\n \n\nOn *December 23, 2024,*the Company closed a Securities Purchase Agreement in which a purchaser in a private placement of pre-funded warrants purchased 882,761 shares of Monopar’s common stock at a purchase price of $23.789 per pre-funded warrant, which represents the per share public offering price of the shares in the registered offering at $23.79 less the $0.001 per share exercise price for each pre-funded warrant. At the closing of the transaction, Monopar entered into a registration rights agreement with the purchaser, which stipulates that Monopar will register the resale of the shares of common stock issuable upon the exercise of the 882,761 pre-funded warrants. On *January 15, 2025,*Monopar filed a registration statement, which was declared effective by the SEC on *January 27, 2025,*to register the 882,761 shares.\n\n \n\nThe pre-funded warrants were classified as a component of stockholders’ equity within additional paid-in capital because they: (i) are freestanding financial instruments that are legally detachable and separately exercisable from the equity instruments; (ii) are immediately exercisable; (iii) do *not* embody an obligation for the Company to repurchase its shares; (iv) permit the holders to receive a fixed number of shares of common stock upon exercise; (v) are indexed to the Company’s common stock; and (vi) meet the equity classification criteria. In addition, such pre-funded warrants do *not* provide any guarantee of value or return. The Company valued the pre-funded warrants at issuance, concluding the purchase price approximated the fair value, and allocated net proceeds from the purchase proportionately to the common stock. The value assigned to the pre-funded warrants was recorded as additional paid-in capital.\n\n \n\nThe pre-funded warrants are immediately exercisable and *may *be exercised for a de-minimis exercise price of $0.001 per share subject to the limitation that a holder of a pre-funded warrant will *not* have the right to exercise any portion of the pre-funded warrant if the holder, together with its affiliates and attribution parties (as such terms are defined in the pre-funded warrants), would beneficially own in excess of 9.99% of the number of shares of the Company’s common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the pre-funded warrants. The pre-funded warrants do *not* expire.\n\n \n\nAn additional issuance of pre-funded warrants occurred in *September 2025,*as described below under *“September 2025*Capital Raise.”\n\n \n\n***September 2025 Capital Raise***\n\n \n\nOn *September 23, 2025,*the Company priced an underwritten public offering (the “Offering”) consisting of (i) 1,034,433 shares of its common stock and (ii) pre-funded warrants to purchase 960,542 shares of common stock, pursuant to an underwriting agreement (the “Underwriting Agreement”) with Morgan Stanley & Co. LLC, Leerink Partners LLC, and Barclays Capital Inc. (the “Underwriters”). The public offering price was $67.67 per share and $67.669 per pre-funded warrant, which represents the per share offering price less a $0.001 per share exercise price. The aggregate net proceeds from the Offering were approximately $126.9 million, after deducting underwriting discounts and commissions but before offering expenses and the Share Repurchase (as defined below).\n\n \n\nOf the total securities sold in the Offering, the Company sold 1,034,433 shares of common stock to the Underwriters for aggregate gross proceeds of approximately $70.0 million and net proceeds of approximately $65.8 million after underwriting discounts and commissions but before offering expenses.\n\n \n\nConcurrently with the sale of common stock, the Company sold pre-funded warrants to purchase 960,542 shares of common stock at a purchase price of $67.669 per pre-funded warrant, representing the public offering price less the $0.001 per-share exercise price. From the sale of the pre-funded warrants, aggregate gross proceeds were approximately $65.0 million and net proceeds were approximately $61.1 million after underwriting discounts and commissions but before offering expenses. For the *September 2025 *pre-funded warrants, the 9.99% limitation *may*be changed at the holder’s election to a lower or higher percentage *not* in excess of 19.99% upon *61* days’ notice to the Company subject to the terms of such pre-funded warrant. All the other terms, conditions, and classifications are materially identical to the *December 2024*warrants above. \n\n \n\n***Share Repurchase***\n\n \n\nOn *September 24, 2025,*the Company entered into a share purchase agreement (the “Share Purchase Agreement”) with Tactic Pharma LLC (“Tactic Pharma”), an existing significant stockholder that held approximately 13.4% of the Company’s common stock prior to the Offering and Repurchase. Pursuant to the Share Purchase Agreement, the Company used $35 million of the Offering proceeds to repurchase 550,229 shares of its common stock from Tactic Pharma at a purchase price of $63.6098 per share, which equals the public offering price per share less underwriting discounts and commissions (the “Share Repurchase”). Chandler D. Robinson, Monopar’s Chief Executive Officer and a member of the Board of Directors, is a minority owner and non-controlling Managing Member of Tactic Pharma. After giving effect to the Share Repurchase, the Company’s net proceeds from the Offering were approximately $91.9 million, before estimated offering expenses.\n\n \n\n**Share and Pre-funded Warrant Totals as of March 31, 2026**\n\n \n\nAs of *March 31, 2026,*the Company had 6,699,062 shares of common stock issued and outstanding and 1,843,303 pre-funded warrants outstanding (including 882,761 issued in *December 2024 *and 960,542 issued in *September 2025).*\n\n \n\n \n\n**Note 5**–** Stock Incentive Plan**\n\n \n\nIn *April 2016,*the Company’s Board of Directors and stockholders representing a majority of the Company’s outstanding stock at that time, approved the Monopar Therapeutics Inc. *2016* Stock Incentive Plan, as amended (the “Plan”), allowing the Company to grant up to an aggregate 140,000 shares of stock-based awards in the form of stock options, restricted stock units, stock appreciation rights and other stock-based awards to employees, non-employee directors and consultants. In *October 2017,*the Company’s Board of Directors voted to increase the stock award pool to 320,000 shares of common stock, which subsequently was approved by the Company’s stockholders. In *April 2020,*the Company’s Board of Directors voted to increase the stock award pool to 620,000 (an increase of 300,000 shares of common stock), which was approved by the Company’s stockholders in *June 2020.*In *April 2021,*the Company’s Board of Directors voted to approve an amendment to the *2016* Stock Incentive Plan to remove certain individual award limits and other provisions related to I.R.C. Section *162*(m) and to update the limit on Incentive Stock Options to *no* more than *100%* of the maximum aggregate number of shares which *may*be granted under the Plan, which was approved by the Company’s stockholders in *June 2021.*In *March 2022,*the Company’s Board of Directors voted to increase the stock award pool to 1,020,000 (an increase of 400,000 shares of common stock), which was approved by the Company’s stockholders in *June 2022.*In *July **2024,* the Company’s Board of Directors voted to increase the stock award pool to 1,420,000 (an increase of 400,000 shares of common stock), which was approved by the Company’s stockholders on *August 5, 2024.*In *March **2025,* the Company registered 400,000 additional shares of common stock under the Plan.\n\n \n\nDuring the *three* months ended *March 31, 2026*, the Company’s Plan Administrator Committee (with regards to non-officer employees and consultants) and the Company’s Compensation Committee, as ratified by the Board of Directors (in the case of executive officers and non-employee directors), granted to executive officers, non-officer employees, and consultants aggregate stock options for the purchase of 62,228 shares of the Company’s common stock, with exercise prices ranging from $53.29 to $70.00 per share and with a range of vesting schedules. All stock option grants have a 10-year term.\n\n \n\nUnder the Plan, the per share exercise price for the shares to be issued upon exercise of an option shall be determined by the Plan Administrator, except that the per share exercise price shall be *no* less than *100%* of the fair market value per share on the grant date. Fair market value is the Company’s closing price on Nasdaq. Stock options generally expire after 10 years.\n\n \n\nStock option activity under the Plan was as follows: \n\n \n\n  \n**Options Outstanding**\n \n\n  \n**Number of Shares Subject to Options**\n  \n**Weighted-Average Exercise Price**\n \n\n**Balances at December 31, 2025**\n  **616,555**  $**30.77** \n\nGranted(1)\n  62,228   54.28 \n\nForfeited(2)(3)\n  (520)  16.98 \n\nExercised\n  —   — \n\n**Balances at March 31, 2026**\n  **678,263**   **32.94** \n\nUnvested options outstanding expected to vest(3)\n  247,008   45.27 \n\n \n\n(*1*)\n\n62,228 options vest as follows: options to purchase 2,000 shares of the Company’s common stock vest monthly over *one* year; options to purchase 60,228 shares of the Company’s common stock vest *6/48ths* on the *six*-month anniversary of the vesting commencement date and *1/48th* per month thereafter. \n\n \n \n\n(*2*)\nForfeited options represent unvested shares and vested, unexercised and expired shares related to employee terminations.\n\n \n \n\n(*3*)\n\nForfeitures only include known forfeitures to date as the Company accounts for forfeitures as they occur.\n\n*20*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\nA summary of options outstanding as of *March 31, 2026*, is shown below:\n\n \n\n**Exercise Prices**\n **Number of Shares Subject to Options Outstanding**  **Weighted-Average Remaining Contractual Term in Years**  **Number of Shares Subject to Options Fully Vested and Exercisable**  **Weighted-Average Remaining Contractual Term in Years** \n\n$0.00 - $25.00\n  207,331   5.76   186,753   5.59 \n\n$25.01 - $50.00\n  331,364   7.02   217,640   6.00 \n\n$50.01 - $75.00\n  85,366   8.37   21,982   3.87 \n\n$75.01 - $100.00\n  50,202   9.53   4,880   8.21 \n\n$100.01 - $125.00\n  4,000   9.54   —   *—* \n\n* *  **678,263**   **7.00**   **431,255**   **5.74** \n\n \n\nRestricted stock unit activity under the Plan was as follows:\n\n \n\n   * *** ** \n**Weighted- Average**\n \n\n   * *  **Grant Date** \n\n  \n**Restricted**\n  \n**Fair Value**\n \n\n  \n**Stock Units**\n  \n**per Unit**\n \n\n**Unvested balance at December 31, 2025**\n  **175,634**  $**48.88** \n\nGranted(1)\n  —   — \n\nVested\n  (10,576)  26.27 \n\nForfeited\n  (348)  15.06 \n\n**Unvested Balance at March 31, 2026 **\n  **164,710**   **50.41** \n\n \n\n(*1*) There were no restricted stock units granted during the *three* months ended *March 31, 2026*.\n\n \n\nStock option grants and fair values under the Plan were as follows:\n\n \n\n  \n**Three Months Ended March 31,**\n \n\n  \n**2026**\n  \n**2025**\n \n\n         \n\nStock options granted\n  62,228   216,331 \n\nWeighted-average grant date fair value per share\n $49.84  $29.17 \n\nFair value of shares vested\n $646,429  $745,436 \n\n \n\nAs of *March 31, 2026*, the aggregate intrinsic value of outstanding vested and unvested stock options was approximately $16.5 million and $3.6 million, respectively. The weighted-average exercise price in aggregate was $32.94, which includes $25.87 for fully vested stock options and $45.27 for stock options expected to vest. As of *March 31, 2026*, the unamortized balance of stock-based compensation was $17.8 million, to be amortized over the following 3 years.\n\n \n\nDuring the *three* months ended *March 31, 2026* and *2025*, the Company recognized $692,728 and $714,888 of employee, non-employee director and consultant stock-based compensation expense as G&A expenses, respectively, and $1,000,252 and $640,129 as R&D expenses, respectively. The stock-based compensation expense is allocated on a departmental basis, based on the classification of the stock-based award holder. No income tax benefits have been recognized in the condensed consolidated statements of operations and comprehensive income (loss) for stock-based compensation arrangements.\n\n \n\n*21*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n    \n\n \n\n**Note 6**–** Related Party Transactions**\n\n \n\nThere were *no* related party transactions outside of the ordinary course of business for each of the *three* months ended *March 31, 2026*and *2025.*\n\n \n\n \n\n**Note 7 **–\n** Net Income (Loss) Per Share**\n\n \n\nBasic and diluted net income (loss) per common share was calculated as follows: \n\n \n\n  \n**Three Months Ended March 31,**\n \n\n(in thousands, except for net income (loss) per share)\n \n**2026**\n  \n**2025**\n \n\nNumerator:\n        \n\nNet income (loss)\n $(3,893) $(2,625)\n\n         \n\nDenominator:\n        \n\nWeighted-average common shares outstanding, basic and diluted(1)\n  8,535   6,987 \n\n         \n\nNet income (loss) per common share, basic and diluted\n $(0.46) $(0.38)\n\n         \n\nAnti-dilutive potential common stock equivalents excluded from the calculation of net income (loss) per share\n        \n\nStock options to purchase common stock\n  678   620 \n\nUnvested restricted stock units\n  165   149 \n\n \n\n(*1*)Pre-funded warrants outstanding during the *three* months ended *March 31, 2026*and *2025,* are exercisable at a nominal price and are considered, in substance, equivalent to outstanding common stock. Accordingly, such pre-funded warrants have been included in the calculation of weighted-average shares of common stock outstanding for purposes of basic and diluted net income (loss) per share. \n\n \n\n \n\n**Note 8**–**Commitments and Contingencies**\n\n \n\n**License, Development and Collaboration Agreements**\n\n \n\n***Alexion, AstraZeneca Rare Disease***\n\n \n\nOn *October 23, 2024,*the Company executed a License Agreement with Alexion Pharmaceuticals, Inc. (“Alexion”), a subsidiary of AstraZeneca, pursuant to which Alexion granted Monopar an exclusive worldwide license for the development and commercialization of *ALXN1840,* a drug candidate for Wilson disease. As initial upfront consideration for the License Agreement, the Company issued Alexion 387,329 shares (representing 9.9% of Monopar’s outstanding shares at the time) of its common stock and agreed to make an upfront cash payment of $4.0 million. A cash payment of $1.0 million was paid at the time of signing and the remaining $3.0 million was paid in *January 2025,*pursuant to the terms of the agreement. As of *March 31, 2026,*the Company has paid an aggregate of $4.0 million in cash under the License Agreement. The Company agreed to an anti-dilution provision that entitled Alexion to receive additional shares at *no* cost to maintain their 9.9% ownership until Monopar raised the next $25.0 million of common stock, subject to a maximum of 705,015 shares unless Monopar obtained stockholder approval. Pursuant to the anti-dilution right, the Company issued an additional 157,188 shares of its common stock to Alexion. *No* further obligations exist pursuant to the anti-dilution right.\n\n \n\nAdditionally, the Company is obligated to pay Alexion milestone payments of up to $94.0 million for the achievement of regulatory approval and sales-related milestones. In addition, the Company is obligated to pay tiered royalties based on net sales at rates falling within a range of 10% to 20%. As of *March 31, 2026,*no milestone or royalty payments have been made under the License Agreement. The Company has also given Alexion the right of *first* negotiation regarding any rights should Monopar intend to sublicense *ALXN1840.* Furthermore, the Company will have to pay Alexion a percentage in the range of 35% to 45% of any sublicensing income received by Monopar. As part of this License Agreement, the Company has assumed an agreement from Alexion, under which the Company will also owe a *third*-party single digit millions in cash milestone payment upon regulatory approval in Europe and a single digit percentage royalty on net sales in Europe.\n\n \n\nEither party *may*terminate the agreement in the event of an uncured material breach of the agreement following written notice, and the Company *may*terminate the agreement for convenience upon *90* days prior written notice to Alexion.\n\n \n\n***NorthStar Medical Radioisotopes, LLC (“NorthStar”)***\n\n \n\nIn *June 2024,*the Company entered into a long-term, non-exclusive master supply agreement with NorthStar under which NorthStar will provide Monopar with the therapeutic radioisotope actinium-*225* (“Ac-*225”*). The original collaboration agreement was amended at that time to clarify certain economic terms and terms related to jointly-developed intellectual property rights for the Company’s MNPR-*101* for radiopharmaceutical use. The Company has acquired these rights from NorthStar, together with certain broad, jointly-developed intellectual property pertaining to MNPR-*101,* giving the Company full ownership and title to its lead MNPR-*101* radiopharmaceutical platform. The Company will jointly share ownership of the filed patent application on the use of PCTA as a linker with Ac-*225,* which has shown that MNPR-*101* has superior binding and yield with Ac-*225* over the current industry-leading linker, DOTA.\n\n \n\n**XOMA Ltd.**\n\n \n\nTo humanize the Company’s MNPR-*101* antibody, Monopar has taken a non-exclusive license to XOMA (US) LLC’s humanization technology and know-how. Humanization involves replacing most of the non-critical parts of the mouse sequence of an antibody with the human sequence to minimize the ability of the human immune system to recognize this antibody as foreign. As such, MNPR-*101* has been engineered to be *95%* human sequence using the XOMA technology. Under the terms of the non-exclusive license with XOMA Ltd., the Company is to make payments to XOMA Ltd. upon the achievement of certain clinical, regulatory and sales milestones, potentially totaling up to $14.925 million. The agreement does *not* require the payment of sales royalties. As of *March 31, 2026*, the Company had *not* reached any milestones and had *not* been required to pay XOMA Ltd. any funds under this license agreement. The *first* milestone payment is payable upon *first* dosing of a human patient in a Phase *2* clinical trial. The Company is currently conducting a Phase *1* clinical trial and cannot reliably predict when it will be able to commence a Phase *2* clinical trial, if at all.\n\n \n\n***Leases***\n\n \n\nThe Company entered into a 36-month lease that commenced on *April 1, 2025,*for Company’s executive headquarters at *1000* Skokie Blvd in the Village of Wilmette, Illinois, at a monthly rate of $3,580. On *November 1, 2025,*the Company entered into an additional 36-month lease at the same location at a monthly rate of $5,002, which replaced a previous month-to-month arrangement for that space. Additionally, on *March 22, 2026,*the Company entered into a one-year lease commencing *January 16, 2026,*for a small wet laboratory space and certain equipment at the Helix *51* Bioscience Incubator at The Rosalind Franklin University of Medicine and Science in North Chicago, Illinois, at a rate of $875 per month.\n\n \n\nAs of *March 31, 2026,*in accordance with ASC *842,* *Leases*, the *three* leases were recorded as an operating lease ROU asset and a lease liability included in accounts payable, accrued expenses and other current liabilities, and non-current operating lease liability on the Company’s condensed consolidated balance sheets. The initial ROU asset and associated liability is equal to the present value of the minimum lease payments. Since the rate implicit in the lease is rarely readily determinable, the Company applied an incremental borrowing rate taking into consideration its credit quality and borrowing rate for similar assets. The lease terms used to calculate the ROU asset and related lease liability do *not* include an option to extend but do include an option to terminate the lease. Lease costs for operating leases are recognized on a straight-line basis over the expected lease term and recorded as general and administrative expenses on the Company’s condensed consolidated statements of operations and comprehensive income (loss).\n\n \n\nThe components of lease expense were as follows:\n\n \n\n  \n**Three Months Ended March 31,**\n \n\n  \n**2026**\n  \n**2025**\n \n\n**Total lease costs**\n **$****27,497**  **$****14,312** \n\n \n\nMaturities of the lease liability are as follows:\n\n \n\n**Fiscal Year Ending December 31,**\n \n**Operating Leases**\n \n\n2026\n $85,118 \n\n2027\n  102,984 \n\n2028\n  60,760 \n\nTotal lease payments\n $248,862 \n\nLess: imputed interest\n  (18,437)\n\n**Total lease liability as of March 31, 2026**\n **$****230,425** \n\n \n\nThe following table presents the weighted average remaining lease term and the discount rate used in calculating the ROU asset and related lease liability for the periods presented:\n\n \n\n  \n**March 31,**\n \n\n  \n**2026**\n  \n**2025**\n \n\n**Lease term:**\n ** **** **** ** ** **** **** **\n\nOperating leases (in years)\n  1.78   0.83 \n\n         \n\n**Discount rate:**\n ** **** **** ** ** **** **** **\n\nOperating lease\n  6.50%  6.50%\n\n \n\nSupplemental balance sheet information:\n\n \n\n  \n**As of March 31,**\n \n\n  \n**2026**\n  \n**2025**\n \n\nROU asset - non-current\n $239,882  $9,102 \n\n**Total ROU asset**\n **$****239,882**  **$****9,102** \n\n         \n\nOperating lease liability - current\n $98,860  $8,252 \n\nOperating lease liability - non-current\n  131,565   — \n\n**Total operating lease liabilities**\n **$****230,425**  **$****8,252** \n\n \n\n**Legal Contingencies**\n\n \n\nThe Company *may*be subject to claims and assessments from time to time in the ordinary course of business. *No* material claims have been asserted to date.\n\n \n\n*22*\n\n[Table of Contents](#toc)\n\nMONOPAR THERAPEUTICS INC.\n\n \n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n \n\n*March 31, 2026*\n\n \n\n**Indemnification**\n\n \n\nIn the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that *may*be made against the Company in the future, but that have *not* yet been made. To date, the Company has neither paid any claims nor been required to defend any action related to its indemnification obligations. However, the Company *may*record charges in the future as a result of future claims against these indemnification obligations. \n\n \n\nIn accordance with its *second* amended and restated certificate of incorporation, amended and restated bylaws and the indemnification agreements entered into with each officer and non-employee director, the Company has indemnification obligations to its officers and non-employee directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacities. There have been *no* indemnification claims to date.\n\n \n\n \n\n**Note 9 – Subsequent Events**\n\n \n\nThe Company has evaluated events and transactions that *may*have occurred which would require recognition or disclosure in the condensed consolidated financial statements. There were *no* subsequent events requiring adjustment to, or disclosure in, the condensed consolidated financial statements.\n\n \n\n \n\n23"}