OS Therapies, Inc. (NYSE: OSTX) reported a widening net operating loss for the second fiscal quarter ended June 30, 2026, as it advanced its lead asset OST-HER2 toward regulatory approval in the U.S., U.K., and Europe. The clinical-stage oncology company recorded a net operating loss of $8.576 million, compared with a loss of $4.839 million in the quarter ended March 30, 2025.

The expansion in the loss was driven by expenses associated with biomarker research and development and regulatory activities at its newly formed wholly-owned subsidiary, OS Therapies UK Ltd., alongside general and administrative costs. Despite the higher burn rate, the company secured capital to extend its financial runway into 2027.

Financing and Tax Refunds

OS Therapies raised minimally dilutive capital through a debt financing arrangement of up to $10 million, supported by Value Added Tax (VAT) refunds and reimbursable Research and Development (R&D) tax credits from its U.K. subsidiary. The first closing on August 10, 2026, funded $5 million.

As of the end of the second quarter, the company had over $3 million in VAT refunds receivable. It expects to accrue an additional approximately $1 million in VAT refunds and at least $4.2 million in refundable R&D tax credits by the end of the third quarter. These funds are intended to support the completion of regulatory submissions for OST-HER2 in the prevention or delay of recurrence in fully resected, pulmonary metastatic osteosarcoma.

Regulatory Milestones and Clinical Data

The company achieved statistically significant 2.5-year Overall Survival data for OST-HER2, showing a 75% survival rate versus 47% in the control group (p = 0.003), with no new deaths in the treated group between the 2-year and 2.5-year timepoints.

Regulatory progress includes:

• Alignment with the European Medicines Agency (EMA) and Australian Therapeutic Goods Administration (TGA) on 3-year Overall Survival data as approvable endpoints.
• Phase 3 trial design alignment with the FDA, EMA, MHRA, and TGA.
• Advanced Therapy Medicinal Product (ATMP) designation from the EMA, triggering a Rolling Review in Europe.
• A waiver of the Pediatric Investigation Plan (PIP) requirement by the U.K.’s MHRA.

OS Therapies is scheduled for a Type C Statistical Methods Meeting with the FDA in mid-September 2026 to review the statistical analysis plan for its Biologics License Application (BLA) under the Accelerated Approval Program. A Statistical Methods Scientific Advice Meeting with the MHRA is also expected in September 2026.

What the Numbers Show

The divergence between the operating loss and per-share loss highlights the impact of share dilution on reported metrics. While the absolute net operating loss increased by approximately $3.7 million year-over-year, the net loss per share rose only marginally from $0.19 to $0.20. This modest increase in per-share loss occurred despite a significant rise in weighted average shares outstanding, from 25.114 million to 43.904 million, indicating that the capital raised through equity or convertible instruments prior to the current period helped absorb the impact of the higher operational burn on a per-share basis.

OS Therapies terminated its At Market issuance sales agreement effective July 28, following an initial announcement on July 23. The company disclosed this development in a filing with the Securities and Exchange Commission (SEC). This termination ends the specific contractual arrangement that allowed the company to sell shares through the agreed-upon sales mechanism.

The decision to terminate the agreement was communicated to shareholders via the SEC filing on July 23. The effective date of July 28 marks the point at which the rights and obligations under the sales agreement ceased. This procedural step ensures clarity regarding the status of the company’s capital raising instruments and prevents any further transactions under the expired terms.

Key Dates and Actions

The filing serves as the official record of this corporate action. By terminating the agreement, OS Therapies has closed this particular channel for equity issuance. Investors should note that no further shares can be sold under this specific agreement after the effective date. The company did not disclose a replacement agreement or alternative capital raising plans in this filing.

What This Means for Shareholders

The termination of an At Market sales agreement is a routine corporate governance action. It indicates that the company is no longer utilizing this specific method for issuing new shares. For investors, this means that dilution from this particular source has ceased as of July 28. The company may choose to pursue other financing methods in the future, but those decisions are not reflected in this current disclosure. The primary impact is the cessation of potential share issuance under these specific terms.