CYPH

Cypherpunk Technologies Inc. (CYPH) - Q1 2026 Filing Summary

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended March 31, 2026. Cypherpunk Technologies Inc. (formerly Leap Therapeutics, Inc.) operates a dual strategy: a privacy technology business focused on accumulating Zcash (ZEC) as a digital asset treasury, and a biotechnology subsidiary, Leap Therapeutics, Inc., developing the cancer drug candidate sirexatamab (DKN-01). The company is a non-accelerated filer and a smaller reporting company.

Key Financial Metrics

Note: All figures in millions unless otherwise noted. The significant drop in Digital Assets Receivable is due to a decline in ZEC market price, not a reduction in holdings.

Material Changes vs. Prior Period

• Net Loss Expansion: Net loss increased to $77.2 million from $15.4 million year-over-year. This was primarily driven by a $77.6 million unrealized loss on the change in fair value of the embedded derivative associated with ZEC holdings.
• Operating Expense Reduction: Total operating expenses decreased by $11.1 million to $4.8 million. Research and Development (R&D) expenses plummeted from $12.9 million to $0.2 million following the completion of clinical trials and a workforce reduction in mid-2025. General and Administrative (G&A) expenses increased by $1.7 million, largely due to higher stock-based compensation.
• Asset Valuation: Total assets decreased by approximately $75.8 million, reflecting the mark-to-market loss on ZEC holdings. Cash balances declined by $7.3 million due to operating outflows and investments.
• Capital Structure: The company issued 8.5 million shares via its At-The-Market (ATM) program, raising net proceeds of $5.8 million.

Guidance, Outlook, and Risks

• Digital Asset Strategy: The company continues to accumulate ZEC. As of May 13, 2026 (subsequent to period end), holdings increased to 314,185 ZEC. The company also invested $5.0 million in Zcash Open Development Lab (ZODL).
• Biotech Progress: The subsidiary Leap Therapeutics received FDA Fast Track designation for sirexatamab for metastatic colorectal cancer. New data presented at AACR 2026 showed statistically significant benefits in patients with high DKK1 levels.
• Liquidity: Management believes current cash ($6.7 million) plus the remaining capacity under the $200 million ATM agreement with Cantor Fitzgerald is sufficient to fund operations for at least 12 months.
• Risks:
  • Volatility: Financial results are highly sensitive to ZEC price fluctuations, which can cause significant unrealized gains or losses.
  • Going Concern: The company has an accumulated deficit of $539.7 million and has not achieved profitable operations. Continued funding is required.
  • Internal Controls: A material weakness in internal control over financial reporting remains unremediated as of March 31, 2026.

Investor Verification Checklist

• ZEC Holdings vs. Price: Verify the number of ZEC tokens held (303,467 as of March 31) versus the market price to understand the magnitude of the unrealized loss.
• ATM Utilization: Monitor the remaining capacity under the $200 million Sales Agreement with Cantor Fitzgerald to assess runway.
• Biotech Milestones: Track the progress of the sirexatamab clinical trials and the potential for commercialization or partnership deals to offset R&D costs.
• Internal Controls: Review future filings for remediation of the disclosed material weakness in financial reporting controls.
• Subsequent Activity: Note that between April 1 and May 13, 2026, the company issued an additional 12.5 million shares and purchased more ZEC, impacting dilution and asset valuation.