PRAXHIGH SIGNALFINANCIAL10-K

PRAX nearly doubled its balance sheet size with stockholders' equity growing 97% to $878M, but R&D expenses surged 75% and operating cash burn worsened dramatically from -$132M to -$249M.

The massive balance sheet expansion suggests a significant equity raise that provided substantial new capital, but the company is burning through cash at an accelerated rate with operating losses deepening 63%. The increased share count from 20.2M to 27.9M shares confirms dilutive equity financing, while the doubling of current liabilities indicates growing operational obligations that investors should monitor closely.

Comparing 2026-02-19 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

PRAX experienced dramatic growth across all balance sheet metrics with total assets nearly doubling to $938M and cash increasing 66% to $357M, indicating a major capital raise during the period. However, the company's cash burn accelerated significantly with operating cash flow deteriorating 89% to -$249M and R&D expenses surging 75% to $267M, reflecting aggressive investment in their CNS pipeline. While the capital infusion provides runway, the accelerating burn rate and 38% share count increase signal meaningful dilution for existing shareholders, creating a mixed picture of expanded resources but intensifying operational cash demands.

FINANCIAL STATEMENT CHANGES
Stockholders Equity
Balance Sheet
+97.1%
$445.4M→$878.1M

Equity base grew 97.1% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+94.1%
$483.1M→$937.9M

Asset base grew 94.1% — expansion through organic growth, acquisitions, or capital deployment.

Operating Cash Flow
Cash Flow
-89%
-$131.8M→-$249.1M

Operating cash flow fell 89% — earnings quality concerns; investigate working capital changes and non-cash items.

R&D Expense
P&L
+75.3%
$152.4M→$267.1M

R&D investment increased 75.3% — signals commitment to future product development, though near-term margin impact.

Net Income
P&L
-65.9%
-$182.8M→-$303.3M

Net income declined 65.9% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
+65.9%
$215.4M→$357.3M

Cash position surged 65.9% — strong cash generation or capital raise providing significant financial cushion.

Operating Income
P&L
-63%
-$200.2M→-$326.2M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Current Liabilities
Balance Sheet
+59.2%
$37.5M→$59.8M

Current liabilities surged 59.2% — significant near-term obligations; verify ability to meet short-term debt.

Total Liabilities
Balance Sheet
+58.7%
$37.7M→$59.8M

Liabilities grew 58.7% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Assets
Balance Sheet
+51.1%
$404.4M→$610.9M

Current assets grew 51.1% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-28
ADDED
As of February 16, 2026, the registrant had 27,850,833 shares of common stock, $0.0001 par value per share, outstanding.
Management's Discussion and Analysis of Financial Condition and results of Operations 88 Item 7A.
You should read this Annual Report on Form 10-K and the documents that we reference in this Annual Report on Form 10-K and have filed with the Securities and Exchange Commission as exhibits hereto completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
Business BUSINESS COMPANY OVERVIEW We are a fully integrated, leading central nervous system, or CNS, precision neuroscience biopharmaceutical company translating insights from genetic epilepsies into the development of therapies for CNS disorders characterized by neuronal excitation-inhibition imbalance.
To date, Cerebrum has generated three clinical stage product candidates, ulixacaltamide, vormatrigine and relutrigine, as well as PRAX-020 which has been in-licensed by UCB Biopharma SRL, or UCB.
Led by our clinical-stage product candidate, elsunersen, for SCN2A early-onset DEE, Solidus has also generated three novel ASOs with preclinical proof of mechanism that we expect to nominate development candidates for in the first half of 2026 PRAX-080 targeting PCDH19 mosaic expression disorders; PRAX-090 targeting SYNGAP1 loss-of-function, or LoF, mutations, a leading cause of severe intellectual disability and epilepsy in developmental and epileptic encephalopathies, or DEEs; and PRAX-100 targeting SCN2A LoF mutations, the predominant genetic link to de novo autism spectrum disorders.
CLINICAL STAGE PROGRAMS We have advanced four product candidates to clinical stage, including three small molecules through the Cerebrum platform and one ASO through the Solidus platform.
Ulixacaltamide for Essential Tremor Our most advanced program, ulixacaltamide, is a differentiated and highly selective small molecule inhibitor of T-type calcium channels in development for the treatment of essential tremor, or ET.
Food and Drug Administration, or the FDA, granted Breakthrough Therapy Designation, or BTD, for ulixacaltamide for the treatment of patients with ET based on the positive topline data from the Essential3 program, as described below.
In addition to ET, ulixacaltamide has the potential to be developed for other indications.
REMOVED
As of February 26, 2025, the registrant had 20,163,250 shares of common stock, $0.0001 par value per share, outstanding.
Management's Discussion and Analysis of Financial Condition and results of Operations 86 Item 7A.
We anticipate that we will continue to incur significant losses for the foreseeable future.
If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements.
Business BUSINESS COMPANY OVERVIEW We are a clinical-stage biopharmaceutical company translating insights from genetic epilepsies into the development of therapies for central nervous system, or CNS, disorders characterized by neuronal excitation-inhibition imbalance.
To date, Cerebrum has generated three clinical stage product candidates, ulixacaltamide (formerly known as PRAX-944), vormatrigine (formerly known as PRAX-628) and relutrigine (formerly known as PRAX-562), as well as PRAX-020 which has been in-licensed by UCB Biopharma SRL, or UCB.
Led by our clinical-stage product candidate, elsunersen (formerly known as PRAX-222), Solidus has also generated three novel ASOs with preclinical proof of mechanism that we expect to nominate development candidates for in 2025 PRAX-080 targeting PCDH19-related developmental epilepsy; PRAX-090 targeting SYNGAP1 loss-of-function, or LoF, mutation driven developmental epilepsy; and PRAX-100 targeting SCN2A LoF mutations, the predominant genetic link to de novo autism spectrum disorders.
CLINICAL STAGE PROGRAMS We have advanced four product candidates to clinical stage, including three small molecules through the Cerebrum platform and one ASO through the Solidus platform: Ulixacaltamide for Essential Tremor Our most advanced program, ulixacaltamide, is a differentiated and highly selective small molecule inhibitor of T-type calcium channels currently in Phase 3 clinical development for the treatment of Essential Tremor, or ET.
Ulixacaltamide has the potential to be developed for other indications, including Parkinson s disease.
The trial includes two separate and simultaneous Phase 3 pivotal studies a 12-week parallel design, placebo-controlled study (N=400), or Study 1, and a 12-week randomized withdrawal study (N=200), or Study 2 with all participants undergoing one screening process and a long-term safety study, or LTSS.
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