Table of Contents PARTI.FINANCIAL INFORMATION Item 1. Unaudited Consolidated Financial Statements: Consolidated Balance Sheets as of March 31, 2026 (unaudited) and December31, 2025Consolidated Statements of Operations and Comprehensive Income (Loss) forthe three months ended March 31, 2026 and 2025 (unaudited)Consolidated Statements of Changes in Stockholders’ Equity for the threemonths ended March 31, 2026 and 2025 (unaudited)Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (unaudited)Notes to Unaudited Consolidated Financial StatementsItem 2.Management’s Discussion and Analysis of Financial Condition and Results ofOperationsItem 3. Quantitative and Qualitative Disclosures About Market RiskItem 4. Controls and Procedures PARTII.OTHER INFORMATION 4141 Item 1.Legal Proceedings Item1A.Risk FactorsItem 2.Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchasesof Equity SecuritiesItem 3.Defaults Upon Senior SecuritiesItem 4.Mine Safety DisclosuresItem 5. Other InformationItem 6. ExhibitsSignatures CAUTIONARY NOTEREGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q and the documents incorporated by reference hereincontain forward-looking statements that involve substantial risks and uncertainties. Allstatements, other than statements of historical facts, included in this Quarterly Report on Form10-Q or the documents incorporated by reference herein regarding our strategy, futureoperations, future financial position, future revenues, projected costs, prospects, plans andobjectives of management are forward-looking statements. The words “anticipate,” “believe,”“estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “would,” “could,” “should,”“potential,” “seek,” “evaluate,” “pursue,” “continue,” “design,” “impact,” “affect,” “forecast,” “target,” The forward-looking statements in this Quarterly Report on Form 10-Q include, among otherthings, statements about: ●our ability to raise additional capital to fund our operations and continue the developmentof our current and future product candidates;●the early preclinical and clinical nature of our business and our ability to successfullyadvance our current and future product candidates, through development activities,preclinical studies, and clinical trials;●our ability to generate revenue from future product sales and our ability to achieve andmaintain profitability; ●the accuracy of our projections and estimates regarding our expenses, capitalrequirements, cash utilization, and need for additional financing; ●the novelty of our approach to immuno-oncology and autoimmune treatments, utilizingiPSC-derived immune cells and islet cells, and the challenges we will face due to thenovel nature of such technology; ●the success of competing therapies that are or may become available; ●the initiation, progress, success, cost, and timing of our development activities,preclinical studies and clinical trials; ●the timing of future investigational new drug (“IND”), applications and the likelihood of,and our ability to obtain and maintain, regulatory clearance of IND applications for ourproduct candidates; ●the timing, scope and likelihood of regulatory filings and approvals, including finalregulatory approval of our product candidates; ●the performance of third parties in connection with the development of our productcandidates, including third parties conducting our current and future clinical trials as well ●our ability to attract and retain strategic collaborators with development, regulatory, andcommercialization expertise; ●the public opinion and scrutiny of cell-based immuno-oncology and autoimmunetherapies and its potential impact on public perception of our company and product ●our ability to successfully commercialize our product candidates and develop sales andmarketing capabilities, if our product candidates are approved; ●the size and growth of the potential markets for our product candidates and our ability toserve those markets; ●regulatory developments and approval pathways in the United States and foreigncountries for our product candidates; ●the potential scope and value of our intellectual property and proprietary rights; ●our ability, and the ability of our licensors, to obtain, maintain, defend, and enforceintellectual property and proprietary rights protecting our product candidates, and ourability to develop and commercialize our product candidates without infringing, ●our ability to recruit and retain key members of management and other clinical andscientific personnel; ●the volatility of capital markets and other macroeconomic factors, including due toinflationary pressures, banking instability, global health crises, geopolitical tensions or ●developments relating to our competitors and our industry; and ●other risks and uncertainties, including those described or incorporated by referenceunder the caption “Risk Factors” in thi