GNPX · Genprex, Inc.

Research and development expenses, central to Genprex's gene therapy pipeline, follow specific recognition policies outlined in MD&A. Costs are expensed as incurred, except for purchased materials with alternative future use, which are capitalized at cost in R&D supplies. Third-party clinical trial, contract manufacturing, and development costs are recognized as work is performed, providing transparency into ongoing investments like the Phase 2a study expansion where the first patient was dosed in January 2024. These policies ensure expenses align with activity levels, contributing to the year's cash burn reduction through trial reprioritization.

Operationally, Genprex advanced its programs, including opening the Phase 2a expansion and dosing the first patient in early 2024, signaling pipeline momentum despite cash constraints. Future capital needs remain significant for R&D, marketing, hiring, commercialization, and public company sustainment, with potential additional raises pursued for favorable markets or strategy. Post-FDA meeting, plans focus on preclinical animal studies to finalize designs and initiate toxicology work. These dynamics extended the cash runway while positioning for next-phase trials, balancing near-term improvements with long-term investment requirements.