Equillium (EQ) Registration Filing summary

Company overview and business model

• Focuses on developing novel therapies for severe autoimmune and inflammatory disorders, with a primary goal to advance EQ504, a novel aryl hydrocarbon receptor (AhR) modulator, into clinical development.

• Plans to initiate a Phase 1 proof-of-mechanism study for EQ504 by mid-2026, targeting ulcerative colitis, with potential expansion into pouchitis and lung diseases.

• Holds exclusive worldwide rights to EQ504 (acquired via Ariagen in October 2024) and EQ302 (acquired via Bioniz in February 2022), the latter being a preclinical-stage, oral bi-specific inhibitor for gastrointestinal diseases.

• Currently exploring partnerships for further development of EQ302, with no internal resources allocated to its advancement.

Financial performance and metrics

• Net tangible book value as of September 30, 2025, was approximately $30.9 million, or $0.51 per share.

• After a full $75 million offering at $1.00 per share, as adjusted net tangible book value would be $103.5 million, or $0.76 per share, resulting in immediate dilution of $0.24 per share to new investors.

• 60,676,837 shares of common stock were outstanding as of September 30, 2025, with additional shares reserved for options, warrants, and purchase agreements.

Use of proceeds and capital allocation

• Net proceeds are intended for continued research and development of product candidates, working capital, capital expenditures, and general corporate purposes.

• May use a portion of proceeds for acquisitions or investments in complementary businesses, products, or technologies, though no current plans or commitments exist.

• Pending use, proceeds may be temporarily invested in capital preservation instruments.