ELTX · Elicio Therapeutics, Inc.

Clinical Trial Progress Drives R&D Savings

Research and development expenses decreased primarily due to lower clinical trial costs as the Phase 2 study of ELI-002 7P continues and patients moved out of the active dosing phase into follow-up. This reduction reflects the natural progression of the trial, where active treatment costs decline as patients transition to long-term monitoring.

G&A Growth Reflects Organizational Scaling

General and administrative expenses increased due to higher headcount and a slight increase in professional fees. As the company advances its pipeline, it has expanded its team to support clinical operations, regulatory activities, and corporate functions, leading to higher personnel costs.

Non-Cash and Financing Costs Pressure Other Expense

Other expense increased primarily due to the change in fair value associated with outstanding liability-classified common warrants and interest related to the June 2025 Promissory Note. These non-cash charges and financing costs added to the net loss without affecting cash flows from operations.

Cash Burn and Financing Activity

Net cash used in operating activities was $11.6 million for the three months ended March 31, 2026, compared to $10.1 million in the prior year period. The increase in cash burn reflects the higher net loss and changes in working capital. The company has historically funded operations through equity offerings and debt, and expects to continue incurring net losses and negative cash flows for the foreseeable future.

Liquidity and Going Concern

The company has experienced net losses and negative cash flows from operations since inception. Management expects to continue incurring substantial expenditures for the development of product candidates and will require additional financing to continue these activities. If unable to raise capital, the company may need to delay, reduce, or terminate planned activities to reduce costs. The company is unable to estimate the exact amount of its operating capital requirements, and its operating plans will be limited to the amount of capital it can access.