false2021Q10001108205--12-311P1MP1M00011082052021-01-012021-03-31xbrli:shares00011082052021-05-10iso4217:USD00011082052021-03-3100011082052020-12-31iso4217:USDxbrli:shares0001108205cris:GrossRoyaltyRevenueMember2021-01-012021-03-310001108205cris:GrossRoyaltyRevenueMember2020-01-012020-03-310001108205cris:OtherRevenueMember2021-01-012021-03-310001108205cris:OtherRevenueMember2020-01-012020-03-310001108205cris:ContraRevenueMember2021-01-012021-03-310001108205cris:ContraRevenueMember2020-01-012020-03-3100011082052020-01-012020-03-310001108205us-gaap:CommonStockMember2020-12-310001108205us-gaap:AdditionalPaidInCapitalMember2020-12-310001108205us-gaap:RetainedEarningsMember2020-12-310001108205us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001108205us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001108205us-gaap:CommonStockMember2021-01-012021-03-310001108205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001108205us-gaap:RetainedEarningsMember2021-01-012021-03-310001108205us-gaap:CommonStockMember2021-03-310001108205us-gaap:AdditionalPaidInCapitalMember2021-03-310001108205us-gaap:RetainedEarningsMember2021-03-310001108205us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001108205us-gaap:CommonStockMember2019-12-310001108205us-gaap:AdditionalPaidInCapitalMember2019-12-310001108205us-gaap:RetainedEarningsMember2019-12-310001108205us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-3100011082052019-12-310001108205us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001108205us-gaap:CommonStockMember2020-01-012020-03-310001108205us-gaap:RetainedEarningsMember2020-01-012020-03-310001108205us-gaap:CommonStockMember2020-03-310001108205us-gaap:AdditionalPaidInCapitalMember2020-03-310001108205us-gaap:RetainedEarningsMember2020-03-310001108205us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100011082052020-03-31xbrli:pure0001108205cris:GenentechIncMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001108205cris:GenentechIncMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-03-31cris:segment0001108205us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-03-310001108205us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-03-310001108205us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-03-310001108205us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-03-310001108205us-gaap:FairValueInputsLevel1Membercris:CorporateCommercialPaperStockBondsAndNotesMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001108205us-gaap:FairValueInputsLevel2Membercris:CorporateCommercialPaperStockBondsAndNotesMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001108205cris:CorporateCommercialPaperStockBondsAndNotesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-03-310001108205cris:CorporateCommercialPaperStockBondsAndNotesMemberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001108205us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001108205us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-03-310001108205us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-03-310001108205us-gaap:FairValueMeasurementsRecurringMember2021-03-310001108205us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2020-12-310001108205us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2020-12-310001108205us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2020-12-310001108205us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2020-12-310001108205us-gaap:FairValueInputsLevel1Membercris:CorporateCommercialPaperStockBondsAndNotesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001108205us-gaap:FairValueInputsLevel2Membercris:CorporateCommercialPaperStockBondsAndNotesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001108205cris:CorporateCommercialPaperStockBondsAndNotesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001108205cris:CorporateCommercialPaperStockBondsAndNotesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001108205us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001108205us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001108205us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001108205us-gaap:FairValueMeasurementsRecurringMember2020-12-310001108205us-gaap:ShortTermInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2021-03-310001108205us-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2021-03-310001108205us-gaap:ShortTermInvestmentsMembersrt:MinimumMember2021-01-012021-03-310001108205us-gaap:ShortTermInvestmentsMembersrt:MaximumMember2021-01-012021-03-310001108205us-gaap:OtherLongTermInvestmentsMember2021-01-012021-03-310001108205us-gaap:ShortTermInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001108205us-gaap:OtherLongTermInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001108205us-gaap:ShortTermInvestmentsMembersrt:MinimumMember2020-01-012020-12-310001108205us-gaap:ShortTermInvestmentsMembersrt:MaximumMember2020-01-012020-12-3100011082052020-01-012020-12-310001108205us-gaap:ShortTermInvestmentsMember2020-01-012020-12-3100011082052020-04-210001108205cris:CaresActPPPLoanMembercris:SiliconValleyBankMemberus-gaap:CommercialPaperMember2020-04-210001108205cris:CaresActPPPLoanMembercris:SiliconValleyBankMemberus-gaap:CommercialPaperMember2021-03-310001108205cris:CaresActPPPLoanMembercris:SiliconValleyBankMemberus-gaap:CommercialPaperMember2020-12-3100011082052020-05-010001108205cris:OberlandCapitalMember2019-03-222019-03-220001108205cris:RoyaltyAmountsIn2021Membercris:OberlandCapitalMember2019-03-222019-03-220001108205cris:OberlandCapitalMembercris:AggregateNetRoyaltiesPriorTo2027Member2019-03-222019-03-220001108205cris:OberlandCapitalMember2021-01-012021-03-3100011082052019-03-222019-03-220001108205srt:MaximumMembercris:GenentechIncMember2003-06-300001108205cris:GenentechIncMember2021-03-310001108205cris:GenentechIncMembersrt:MinimumMember2003-06-012003-06-300001108205srt:MaximumMembercris:GenentechIncMember2003-06-012003-06-300001108205cris:GenentechIncMember2003-06-012003-06-300001108205cris:GrossRoyaltyRevenueMembercris:GenentechIncMember2021-01-012021-03-310001108205cris:GrossRoyaltyRevenueMembercris:GenentechIncMember2020-01-012020-03-310001108205cris:GenentechIncMember2021-01-012021-03-310001108205cris:GenentechIncMember2020-01-012020-03-310001108205cris:GenentechIncMember2020-03-310001108205cris:GenentechIncMember2020-12-310001108205cris:AurigeneDiscoveryTechnologiesLtdMembersrt:MaximumMember2020-02-29cris:program0001108205cris:AurigeneDiscoveryTechnologiesLtdMembercris:ThirdandFourthProgramsMember2021-03-310001108205cris:AurigeneDiscoveryTechnologiesLtdMember2021-03-310001108205cris:AurigeneDiscoveryTechnologiesLtdMembercris:IRAK4PD1VISTAPD1TIM3ProgramMember2021-01-012021-03-310001108205cris:AurigeneDiscoveryTechnologiesLtdMembercris:MasterDevelopmentAndManufacturingAgreementMemberus-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310001108205cris:AurigeneDiscoveryTechnologiesLtdMembercris:MasterDevelopmentAndManufacturingAgreementMember2021-03-310001108205cris:ImmuNextMember2021-03-310001108205cris:ImmuNextMembersrt:MaximumMember2021-03-310001108205us-gaap:CommonStockMember2021-03-160001108205us-gaap:PrivatePlacementMemberus-gaap:CommonStockMember2020-12-012020-12-310001108205us-gaap:OverAllotmentOptionMember2020-12-012020-12-310001108205us-gaap:CommonStockMember2020-12-310001108205us-gaap:PrivatePlacementMember2020-12-012020-12-310001108205us-gaap:PrivatePlacementMemberus-gaap:CommonStockMember2020-06-012020-06-300001108205us-gaap:PrivatePlacementMemberus-gaap:CommonStockMember2020-06-300001108205us-gaap:PrivatePlacementMember2020-06-012020-06-3000011082052020-06-0300011082052020-06-040001108205us-gaap:CommonStockMembercris:DemandSalesAgreementMember2020-03-040001108205cris:DemandSalesAgreementMember2020-03-040001108205us-gaap:CommonStockMembercris:DemandSalesAgreementMember2020-12-092020-12-090001108205us-gaap:CommonStockMembercris:DemandSalesAgreementMember2020-12-090001108205cris:AspireCapitalFundLLCMemberus-gaap:CommonStockMember2020-02-260001108205cris:AspireCapitalFundLLCMember2020-02-262020-02-260001108205cris:AspireCapitalFundLLCMember2020-01-012020-12-310001108205cris:AspireCapitalFundLLCMember2020-12-310001108205cris:AspireCapitalFundLLCMemberus-gaap:CommonStockMember2021-03-310001108205cris:AspireCapitalFundLLCMemberus-gaap:CommonStockMember2020-12-31cris:plan0001108205cris:AmendedAndRestatedTwoThousandTenStockIncentivePlanMemberus-gaap:EmployeeStockMember2020-06-042020-06-040001108205cris:AmendedAndRestatedTwoThousandTenStockIncentivePlanMember2020-06-040001108205cris:AmendedAndRestatedTwoThousandTenStockIncentivePlanMembercris:StockOptionsorStockAppreciationRightsMember2020-06-042020-06-040001108205cris:AmendedAndRestatedTwoThousandTenStockIncentivePlanMembercris:RestrictedStockRSUsOtherStockBasedAwardsOrPerformanceAwardsMember2020-06-042020-06-040001108205cris:AmendedAndRestatedTwoThousandTenStockIncentivePlanMember2021-01-012021-03-310001108205cris:TwoThousandAndTenPlanMember2021-01-012021-03-310001108205cris:TwoThousandAndTenPlanMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2021-01-012021-03-310001108205us-gaap:ShareBasedCompensationAwardTrancheTwoMembercris:TwoThousandAndTenPlanMember2021-01-012021-03-310001108205us-gaap:RestrictedStockMember2021-01-012021-03-310001108205cris:NonEmployeeDirectorsMembercris:TwoThousandAndTenPlanMember2021-01-012021-03-310001108205cris:NonEmployeeDirectorsMembercris:TwoThousandAndTenPlanMember2020-07-012020-09-300001108205us-gaap:RestrictedStockMembersrt:OfficerMember2021-01-012021-03-310001108205us-gaap:RestrictedStockMember2020-12-310001108205us-gaap:RestrictedStockMember2021-03-310001108205cris:OfficersAndNonEmployeeDirectorsMemberus-gaap:RestrictedStockMember2021-03-310001108205cris:OfficersAndNonEmployeeDirectorsMemberus-gaap:RestrictedStockMember2021-01-012021-03-310001108205us-gaap:EmployeeStockMembercris:EmployeeStockPurchasePlanMember2021-03-310001108205us-gaap:EmployeeStockMembercris:EmployeeStockPurchasePlanMember2021-01-012021-03-31cris:purchase_period0001108205us-gaap:EmployeeStockMembercris:EmployeeStockPurchasePlanMember2017-01-012017-06-300001108205us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310001108205us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-03-310001108205us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-310001108205us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-03-310001108205us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001108205us-gaap:EmployeeStockOptionMember2020-01-012020-03-310001108205cris:EpiCurePharmaceuticalsInc.Membercris:AgreementWithHeadOfResearchAndDevelopmentMembersrt:AffiliatedEntityMember2018-10-172018-10-170001108205cris:EpiCurePharmaceuticalsInc.Membercris:AgreementWithHeadOfResearchAndDevelopmentMembersrt:AffiliatedEntityMember2020-01-012020-12-31cris:day0001108205cris:EpiCurePharmaceuticalsInc.Membersrt:AffiliatedEntityMember2020-01-012020-06-300001108205cris:EpiCurePharmaceuticalsInc.Membersrt:AffiliatedEntityMember2020-07-012020-12-31

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     .

Commission File Number: 000-30347

Delaware						04-3505116
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)
128 Spring Street, Building C - Suite 500, Lexington, Massachusetts 02421
(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 503-6500

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, Par Value $0.01 per share

CRIS

Nasdaq Global Market

Large accelerated filer ☐			Accelerated filer  ☐			Non-accelerated filer  ☒			Smaller reporting company    ☒
									Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

						Page Number
PART I.			FINANCIAL INFORMATION
Item 1.			Unaudited Financial Statements			6
			Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020			6
			Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2021 and 2020			7
			Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Three Months Ended March 31, 2021 and 2020			8
			Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020			9
			Notes to Condensed Consolidated Financial Statements			10
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			24
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			35
Item 4.			Controls and Procedures			35
PART II.			OTHER INFORMATION
Item 1A.			Risk Factors			36
Item 6.			Exhibits			36
Signatures						37

•the initiation, timing, progress and results of future preclinical studies and clinical trials, and our research and development programs;

•our plans to develop and commercialize our drug candidates;

•our collaborators’ plans to commercialize Erivedge;

•our ability to establish and maintain collaborations or obtain additional funding;

•the timing or likelihood of regulatory filings and approvals;

•the implementation of our business model, strategic plans for our business, drug candidates and technology;

•our commercialization, marketing and manufacturing capabilities and strategy;

•the rate and degree of market acceptance and clinical utility of our products;

•our competitive position;

•our intellectual property position;

•developments and projections relating to our competitors and our industry;

•the potential of CA-4948, CI-8993, CA-170, fimepinostat, CA-327, and other drug candidates that we in-license, or may elect to in-license, or may acquire in the future;

•our estimates of the period in which we anticipate that existing cash and cash equivalents will enable us to fund our current and planned operations;

•impacts resulting from the COVID-19 pandemic and responsive actions relating thereto;

•our ability to maintain our listing on the Nasdaq Global Market; and

•our estimates regarding expenses, future revenue, capital requirements and needs for additional financing.

Risk Factor Summary

•We have incurred substantial losses, expect to incur substantial losses for the foreseeable future and may never generate significant revenue or achieve or maintain profitability.

•We will require substantial additional funding, and if we are unable to raise capital when needed, we could be forced to delay, reduce or eliminate our drug development programs or commercialization efforts.

•We face risks related to the novel coronavirus pandemic, COVID-19, which has delayed and may continue to delay our ability to complete our ongoing clinical trials and the enrollment and initiation of future clinical trials, and may disrupt regulatory activities, cause substantial disruption in the financial markets and economy, or have other adverse effects on our business and operations.

•We face substantial competition, and our competitors may discover, develop or commercialize drugs before or more successfully than we do. Furthermore, the amount of royalty revenue we received from sales of Erivedge has been adversely affected by a competing drug, and may be further affected in the future.

•We depend heavily on the success of our most advanced drug candidates, including CA-4948 and CI-8993. If we are unable to initiate or complete the clinical development of, obtain marketing approval for or successfully commercialize our drug candidates, either alone or with a collaborator, or if we experience significant delays in doing so, our business will be materially harmed.

•If clinical trials of any drug candidates that we, or any collaborators, may develop fail to satisfactorily demonstrate safety and efficacy to the U.S. Food and Drug Administration, or FDA, and other regulators, we, or any collaborators, may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development and commercialization of these drug candidates.

•Adverse events or undesirable side effects caused by, or other unexpected properties of, drug candidates that we develop may be identified during development and could delay or prevent their marketing approval or limit their use.

•We rely on Genentech and Roche for the successful commercialization of Erivedge, and if they do not successfully commercialize Erivedge for advanced BCC, our future prospects may be substantially harmed.

•We rely in part on third parties to conduct clinical trials of our internally-developed and in-licensed product candidates and for the research, development and commercialization of certain programs, and those third parties may not perform satisfactorily, including by failing to meet deadlines for the completion of such trials, research or testing.

•In the event of a default by us or Curis Royalty under the Oberland Purchase Agreement, we could, among other consequences, lose our retained rights to future royalty and royalty related payments on commercial sales of Erivedge, and our ability to enter into future arrangements may be inhibited, all of which could have a material adverse effect on our business, financial condition and stock price.

•If we are unable to obtain and maintain sufficient patent protection for our technologies and drugs, or our licensors are not able to obtain and maintain sufficient patent protection for the technologies or drugs that we license from them, or if the scope of the patent protection is not sufficiently broad, our competitors could develop and commercialize drugs similar or identical to ours, and our ability to successfully commercialize our drug candidates may be adversely affected.

•If we or our collaborators are not able to obtain, or if there are delays in obtaining, required regulatory approvals, we or they will not be able to commercialize, or will be delayed in commercializing, our drug candidates, and our ability to generate revenue will be materially impaired.

			March 31, 2021						December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents			$	111,031					$	129,610
Short-term investments			45,382						38,884
Accounts receivable			2,183						3,043
Prepaid expenses and other current assets			3,266						1,215
Total current assets			161,862						172,752
Long-term investments			11,937						14,564
Property and equipment, net			620						663
Restricted cash, long-term			816						816
Operating lease right-of-use asset			6,376						6,578
Goodwill			8,982						8,982
Other assets			—						3
Total assets			$	190,593					$	204,358
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	3,429					$	4,166
Accrued liabilities			2,062						3,625
Current portion of operating lease liability			609						1,731
Current portion long-term debt			891						557
Total current liabilities			6,991						10,079
Long-term operating lease liability			4,881						5,040
Liability related to the sale of future royalties, net			56,806						58,235
Long-term debt			—						334
Total liabilities			68,678						73,688
Stockholders’ equity:
Common stock, $0.01 par value—151,875,000 shares authorized; 91,534,272 shares issued and outstanding at March 31, 2021; 151,875,000 shares authorized; 91,502,461 shares issued and outstanding at December 31, 2020			916						915
Additional paid-in capital			1,177,824						1,176,647
Accumulated deficit			(1,056,816)						(1,046,889)
Accumulated other comprehensive income			(9)						(3)
Total stockholders’ equity			121,915						130,670
Total liabilities and stockholders’ equity			$	190,593					$	204,358

			Three Months Ended March 31,
			2021						2020
Revenues, net:
Royalties			$	2,187					$	2,515
Other revenue			—						211
Contra revenue, net			2						(17)
Total revenues, net			2,189						2,709
Costs and expenses:
Cost of royalties			109						125
Research and development			6,757						7,473
General and administrative			4,123						3,593
Total costs and expenses			10,989						11,191
Loss from operations			(8,800)						(8,482)
Other expense:
Interest income			46						50
Imputed interest expense related to the sale of future royalties			(1,173)						(1,298)
Other income (expense), net			—						21
Total other expense			(1,127)						(1,227)
Net loss			$	(9,927)					$	(9,709)
Net loss per common share (basic and diluted)			$	(0.11)					$	(0.28)
Weighted average common shares (basic and diluted)			91,507,518						34,453,189
Net loss			$	(9,927)					$	(9,709)
Other comprehensive income:
Unrealized gain on marketable securities			(6)						—
Comprehensive loss			$	(9,933)					$	(9,709)

			Common Stock												Additional Paid-in Capital												Accumulated Deficit						Accumulated Other Comprehensive (Loss) Income						Total Stockholders’ Equity
			Shares						Amount
December 31, 2020			91,502,461						$	915					$	1,176,647											$	(1,046,889)					$	(3)					$	130,670
Recognition of stock-based compensation			—						—						1,099												—						—						1,099
Exercise of stock options			31,811						1						78												—						—						79
Unrealized loss on marketable securities			—						—						—												—						(6)						(6)
Net loss			—						—						—												(9,927)						—						(9,927)
March 31, 2021			91,534,272						$	916					$	1,177,824											$	(1,056,816)					$	(9)					$	121,915

			Common Stock												Additional Paid-in Capital												Accumulated Deficit						Accumulated Other Comprehensive (Loss) Income						Total Stockholders’ Deficit
			Shares						Amount
December 31, 2019			33,241,793						$	332					$	982,738											$	(1,016,981)					$	—					$	(33,911)
Recognition of stock-based compensation			—						—						625												—						—						625
Issuance of shares in connection with Aspire Capital Agreement, net of issuance costs			3,340,516						34						2,692												—						—						2,726
Net loss			—						—						—												(9,709)						—						(9,709)
March 31, 2020			36,582,309						$	366					$	986,055											$	(1,026,690)					$	—					$	(40,269)

			Three Months Ended March 31,
			2021						2020
Cash flows from operating activities:
Net loss			$	(9,927)					$	(9,709)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			43						25
Non-cash lease expense			202						149
Stock-based compensation expense			1,099						625
Non-cash imputed interest expense related to the sale of future royalties			(20)						235
Non-cash interest expense on investments			195						25
Changes in operating assets and liabilities:
Accounts receivable			860						737
Prepaid expenses and other assets			(2,049)						(248)
Accounts payable and accrued and other liabilities			(2,301)						(689)
Operating lease liability			(1,281)						(166)
Total adjustments			(3,252)						693
Net cash used in operating activities			(13,179)						(9,016)
Cash flows from investing activities:
Purchase of investments			(9,071)						—
Sales and maturities of investments			5,000						5,082
Purchase of property and equipment			—						(241)
Net cash provided by (used in) investing activities			(4,071)						4,841
Cash flows from financing activities:
Proceeds of Aspire Capital Agreement, net of issuance costs			—						3,000
Proceeds from issuance of common stock under the Company's share-based compensation plan			79						—
Payment of liability of future royalties, net of imputed interest			(1,408)						(1,723)
Net cash provided by financing activities			(1,329)						1,277
Net decrease in cash and cash equivalents and restricted cash			(18,579)						(2,898)
Cash and cash equivalents and restricted cash, beginning of period			130,426						16,399
Cash and cash equivalents and restricted cash, end of period			$	111,847					$	13,501
Supplemental cash flow data:
Accrued issuance costs			281						$	274
Property and equipment purchases in accounts payable			—						26
Cash paid for interest			1,193						1,062
Non-cash commitment shares issued to Aspire Capital			—						900

1.     Nature of Business

•CA-4948, an orally available small molecule inhibitor of Interleukin-1 receptor-associated kinase 4 ("IRAK4"), which is currently undergoing testing in a Phase 1/2 open-label dose escalating clinical trial in patients with non-Hodgkin lymphomas, including those with myeloid Differentiation Primary Response Protein 88 (“MYD88”) alterations. The trial was amended to include a combination study of CA-4948 and ibrutinib, a BTK inhibitor, in patients with non-Hodgkin lymphomas for which the Company enrolled the first patient in February 2021. The Company is also conducting a separate Phase 1/2 open-label, single arm dose escalating and expansion trial in patients with acute myeloid leukemia (“AML”) and myelodysplastic syndromes (“MDS”). The study was amended in April 2021 to include dose escalation cohorts of CA-4948 in combination with azacitadine or venetoclax. In April 2021, CA-4948 was granted Orphan Drug Designation for the treatment of AML and MDS by the U.S. Food and Drug Administration ("FDA").

•CI-8993, a monoclonal antibody designed to antagonize the V-domain Ig suppressor of T cell activation (“VISTA”) signaling pathway. In June 2020, the Company announced that the FDA had cleared its Investigational New Drug (“IND”) application for CI-8993. In September 2020, enrollment for a Phase 1 trial in patients with solid tumors commenced. The Company has an option to license CI-8993 from ImmuNext, Inc. ("ImmuNext").

•Fimepinostat, a small molecule that potently inhibits the activity of histone deacetylase and phosphotidyl-inositol 3 kinase enzymes, which has been granted Orphan Drug Designation and Fast Track Designation for the treatment of diffuse large B-cell lymphoma, by the FDA in April 2015 and May 2018, respectively. The Company is currently evaluating future studies for fimepinostat.

•CA-170, a small molecule antagonist of VISTA and PDL1, for which the Company announced initial data from a clinical study in patients with mesothelioma, in conjunction with the Society of lmmunotherapy of Cancer conference in November 2019. Based on this data, no further patients will be enrolled in the study. The Company is currently evaluating future studies for CA-170.

•CA-327, a small molecule antagonist of TIM3 and PDL1, is a pre-IND stage oncology drug candidate.

•IRAK4 Program - a precision oncology program of small molecule inhibitors of IRAK4. The development candidate is CA-4948, an orally available small molecule inhibitor of IRAK4.

•PD1/VISTA Program - an immuno-oncology program of small molecule antagonists of PD1 and VISTA immune checkpoint pathways. The development candidate is CA-170, an orally available small molecule antagonist of VISTA and PDL1.

•PD1/TIM3 Program - an immuno-oncology program of small molecule antagonists of PD1 and TIM3 immune checkpoint pathways. The development candidate is CA-327, an orally available small molecule antagonist of PDL1 and TIM3.

•The Company exercised its option to license a fourth program, which is an immuno-oncology program.

(a)Basis of Presentation and Principles of Consolidation

(b)Use of Estimates and Assumptions

(c) Cash Equivalents, Restricted Cash, and Investments

(d)Leases

(e)Revenue Recognition

License Fees and Multiple Element Arrangements

Reimbursement of research and development costs by third-party collaborators is recognized as revenue over time provided the Company has determined that it transfers control (i.e. performs the services) of a service over time and, therefore, satisfies a performance obligation according to the provisions outlined in ASC 606-10-25-27, Revenue Recognition.

(f)Segment Reporting

(g)New Accounting Pronouncements

3.     Fair Value of Financial Instruments

The Company has adopted the provisions of the FASB Codification Topic 820, Fair Value Measurements and Disclosures (“Topic 820”) for its financial assets and liabilities that are re-measured and reported at fair value each reporting period and the non-financial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability. Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. Financial assets and liabilities are categorized within the valuation hierarchy based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows:

Level 1			Quoted prices in active markets for identical assets or liabilities.
Level 2			Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

In accordance with the fair value hierarchy, the following table shows the fair value as of March 31, 2021 and December 31, 2020 of those financial assets and liabilities that are measured at fair value on a recurring basis, according to the valuation techniques the Company used to determine their fair value. No financial assets or liabilities are measured at fair value on a nonrecurring basis at March 31, 2021 and December 31, 2020.

(in thousands)			Quoted Prices in Active Markets (Level 1)						Other Observable Inputs (Level 2)						Unobservable Inputs (Level 3)						Fair Value
As of March 31, 2021:
Cash equivalents:
Money market funds			$	106,447					$	—					$	—					$	106,447
Short-term investments:			—						—						—						—
Corporate commercial paper, bonds and notes			—						45,382						—						45,382
Long-term investments:			—						—						—						—
Corporate commercial paper, bonds and notes			—						11,937						—						11,937
Total assets at fair value			$	106,447					$	57,319					$	—					$	163,766

(in thousands)			Quoted Prices in Active Markets (Level 1)						Other Observable Inputs (Level 2)						Unobservable Inputs (Level 3)						Fair Value
As of December 31, 2020:
Cash equivalents:
Money market funds			$	115,278					$	—					$	—					$	115,278
Short-term investments:
Corporate commercial paper, bonds and notes			—						38,884						—						38,884
Long-term investments:
Corporate commercial paper, bonds and notes			—						14,564						—						14,564
Total assets at fair value			$	115,278					$	53,448					$	—					$	168,726

4.     Investments

The amortized cost, unrealized gains and losses and fair value of investments available-for-sale as of March 31, 2021 are as follows:

(in thousands)			Amortized Cost						Unrealized Gain						Unrealized Loss						Fair Value
Corporate bonds and notes—short-term			$	45,388					$	—					$	(6)					$	45,382
Corporate bonds and notes—long-term			$	11,940					—						(3)						$	11,937
Total investments			$	57,328					$	—					$	(9)					$	57,319

The amortized cost, unrealized gains and losses and fair value of investments available-for-sale as of December 31, 2020 are as follows:

(in thousands)			Amortized Cost						Unrealized Gain						Unrealized Loss						Fair Value
Corporate bonds and notes—short-term			$	38,888					$	—					$	(4)					$	38,884
Corporate bonds and notes—long-term			14,563						1						—						14,564
Total investments			$	53,451					$	1					$	(4)					$	53,448

As of March 31, 2021 and December 31, 2020, the Company held no investments that have been in a continuous unrealized loss position for 12 months or longer.

No credit losses on available-for-sale securities were recognized during the three months ended March 31, 2021 or March 31, 2020. In its evaluation to determine expected credit losses, management considered all available historical and current information, expectations of future economic conditions, the type of security, the credit rating of the security, and the size of the loss position, as well as other relevant information. The Company does not intend to sell, and is unlikely to be required to sell, any of these available-for-sale investments before their effective maturity or market price recovery.

Short-term investments have maturities ranging from one to twelve months with a weighted-average maturity of 0.6 years at December 31, 2020. The weighted average maturity of long-term investments was 1.5 years at December 31, 2020.

5.     Accrued Liabilities

(in thousands)			March 31, 2021						December 31, 2020
Compensation and related costs			$	1,004					$	2,638
Chemistry, manufacturing and controls costs			435						—
Professional fees			232						307
License fees			188						375
Other			203						305
Total			$	2,062					$	3,625

6.     Debt

7.     Lease

8.     Liability Related to the Sale of Future Royalties

The following table shows the activity with respect to the liability related to the sale of future royalties during the three months ended March 31, 2021.

(in thousands)
Carrying value of liability related to the sale of future royalties at January 1, 2021			$	58,235
Amortization of capitalized issuance costs			1,158
Imputed interest expense recognized for the three months ending March 31, 2021			15
Less: payments to Oberland Capital, LLC			(2,602)
Carrying value of liability related to the sale of future royalties at March 31, 2021			$	56,806

The following table shows the activity with respect to the liability related to the sale of future royalties from the inception of the Oberland Purchase Agreement through December 31, 2020.

(in thousands)
Liability related to the sale of future royalties at January 1, 2020			$	62,477
Amortization of capitalized issuance costs			61
Imputed interest expense recognized for the year ended December 31, 2020			5,034
Less: payments to Oberland Capital, LLC			(9,337)
Carrying value of liability related to the sale of future royalties at December 31, 2020			$	58,235

9.     Research and Development Collaborations

As previously discussed in Note 8, Liability Related to the Sale of Future Royalties a portion of royalty revenues received from Genentech on net sales of Erivedge will be paid to the Purchasers pursuant to the Oberland Purchase Agreement.

(b)Aurigene

1.IRAK4 Program - a precision oncology program of small molecule inhibitors of IRAK4. The development candidate is CA-4948, an orally available small molecule inhibitor of IRAK4.

(c)ImmuNext

10.     Common Stock

(a)2021 Sales Agreement with Cantor Fitzgerald & Co. and JonesTrading Institutional Services LLC

(b)2020 Public Offering

(c)2020 Registered Direct Offering

(d)2020 Charter Amendment

(e)2020 Sales Agreement with JonesTrading Institutional Services LLC

(f)Aspire Capital Fund LLC

11.     Stock Plans and Stock-Based Compensation

			Number of Shares						Weighted Average Exercise Price per Share						Weighted Average Remaining Contractual Life						Aggregate Intrinsic Value
Outstanding, December 31, 2020			8,668,005						$	2.71					7.98
Granted			1,403,000						9.13
Exercised			(31,649)						2.49
Canceled			(43,325)						11.05
Outstanding, March 31, 2021			9,996,031						$	3.57					8.06						$	79,202
Exercisable at March 31, 2021			4,939,398						$	3.59					7.35						$	39,909
Vested and unvested expected to vest at March 31, 2021			9,560,551						$	3.54					8.02						$	76,109

The weighted average grant date fair values of the stock options granted during the three months ended March 31, 2021 and 2020 were $9.13 and $0.76, respectively, and were calculated using the following estimated assumptions:

			Three Months Ended March 31,
			2021						2020
Expected term (years) – directors, officers and employees			5.5						5.5
Risk free interest rate			0.4-0.7%						0.9-1.7%
Expected Volatility			107		%				80		%
Expected Dividends			None						None

			Number of Shares						Weighted Average Grant Date Fair Value
Unvested, December 31, 2020			20,624						$	3.45
Awarded			—						—
Vested			(10,312)						3.45
Forfeited			—						—
Unvested, March 31, 2021			10,312						$	3.45

			Three Months Ended March 31,
(in thousands)			2021						2020
Research and development expenses			$	338					$	170
General and administrative expenses			761						455
Total stock-based compensation expense			$	1,099					$	625

12.     Loss Per Common Share

(a)Agreement with Head of Research and Development - Robert E. Martell, M.D., Ph.D.

Item 2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

•CA-4948, an orally-available small molecule inhibitor of Interleukin-1 receptor-associated kinase 4, or IRAK4, which is currently undergoing testing in a Phase 1/2 open-label dose escalating clinical trial in patients with non-Hodgkin lymphomas, including those with Myeloid Differentiation Primary Response Protein 88, or MYD88 alterations. We reported updated preliminary clinical data from the study in December 2020. The trial was amended to include a combination study of CA-4948 and ibrutinib, a BTK inhibitor, in patients with non-Hodgkin lymphomas for which we enrolled the first patient in February 2021. We expect to provide initial data from the combination study in the second half of 2021. We are also conducting a separate Phase 1/2 open-label, single arm dose escalating and expansion trial in patients with acute myeloid leukemia, or AML, and myelodysplastic syndromes, or MDS, and announced preliminary clinical data from this study in December 2020. The study was amended in April 2021 to include dose escalation cohorts of CA-4948 in combination with azacitadine or venetoclax. In April 2021, CA-4948 was granted Orphan Drug Designation for the treatment of AML and MDS by the U.S. Food and Drug Administration, or FDA.

•CI-8993, a monoclonal antibody designed to antagonize the V-domain Ig suppressor of T cell activation, or VISTA signaling pathway. In June 2020, we announced the FDA had cleared our Investigational New Drug, or IND, application for CI-8993. In September 2020, we began enrollment in our Phase 1 trial of CI-8993 in patients with solid tumors. We have an option to license CI-8993 from ImmuNext, Inc., or ImmuNext.

Our pipeline also includes the following:

•Fimepinostat, a small molecule that potently inhibits the activity of histone deacetylase, or HDAC, and phosphotidyl-inositol 3 kinase, or PI3 kinase enzymes, which has been granted Orphan Drug Designation and Fast Track Designation for the treatment of diffuse large B-cell lymphoma, or DLBCL, by the FDA in April 2015 and May 2018, respectively. In 2019, we began enrollment in a Phase 1 combination study with venetoclax in DLBCL patients, including patients with translocations in both MYC and the BCL2 gene, also referred to as double-hit lymphoma, or high-grade B-cell lymphoma, or HGBL. We reported preliminary clinical data from this combination study in December 2019. In March 2020, we announced that although we observed no significant drug-drug interaction in our Phase 1 study of fimepinostat in combination with venetoclax, we did not see an efficacy signal that would warrant continuation of the study. Accordingly, no further patients will be enrolled in this study. We are currently evaluating future studies for fimepinostat.

•CA-170, a small molecule antagonist of VISTA and PDL1, for which we announced initial data from a clinical study in patients with mesothelioma in conjunction with the Society of Immunotherapy of Cancer conference in November 2019. Based on this data, no further patients will be enrolled in the study. We are currently evaluating future studies for CA-170.

•CA-327, a small molecule antagonist of PDL1 and TIM3, which is a pre-IND, stage oncology drug candidate.

We are party to a collaboration with Genentech Inc., or Genentech, a member of the Roche Group, under which F. Hoffmann-La Roche Ltd, or Roche and Genentech are commercializing Erivedge® (vismodegib), a first-in-class orally administered small molecule Hedgehog signaling pathway antagonist. Erivedge is approved for the treatment of advanced basal cell carcinoma, or BCC.

In addition, we are party to an option and license agreement with ImmuNext. Pursuant to the terms of the option and license agreement, we have an option, exercisable for a specified period as set forth in the option and license agreement to obtain an exclusive license to develop and commercialize certain VISTA antagonizing compounds, including ImmuNext's lead compound, CI-8993, and products containing these compounds in the field of oncology.

Since our inception, we have funded our operations primarily through private and public placements of our equity securities, license fees, contingent cash payments, research and development funding from our corporate collaborators, debt financings and the monetization of certain royalty rights. We have never been profitable on an annual basis and have an accumulated deficit of $1.1 billion as of March 31, 2021. For the three months ended March 31, 2021, we incurred a net loss of $9.9 million and used $13.2 million of cash in operations. We expect that our $168.4 million cash, cash equivalents and investments as of March 31, 2021 should enable us to maintain our planned operations into 2024. We have based this assessment on assumptions that may prove to be wrong, and we could exhaust our available capital resources sooner than we expect.

We will need to generate significant revenues to achieve profitability, and do not expect to achieve profitability in the foreseeable future, if at all. If sufficient funds are not available, we will have to delay, reduce the scope of, or eliminate some of our research and development programs, including related clinical trials and operating expenses, potentially delaying the time to market for or preventing the marketing of any of our product candidates, which could adversely affect our business prospects and our ability to continue our operations, and would have a negative impact on our financial condition and ability to pursue our business strategies. In addition, we may seek to engage in one or more strategic alternatives, such as a strategic partnership with one or more parties, the licensing, sale or divestiture of some of our assets or proprietary technologies or the sale of our company, but there can be no assurance that we would be able to enter into such a transaction or transactions on a timely basis or on terms favorable to us, or at all.

•our ability to successfully plan, finance and complete current and planned clinical trials for CA-4948 and CI-8993, as well as for such clinical trials to generate favorable data; and

•our ability to raise additional financing, when required, to fund operations.

For information regarding our collaboration and license agreements, refer to Note 9, Research and Development Collaborations, in the accompanying Notes to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q and Note 11, Research and Development Collaborations, in Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission, or SEC, on March 16, 2021.

General. Our future operating results will largely depend on the progress of drug candidates currently in our research and development pipeline. The results of our operations will vary significantly from year to year and quarter to quarter and depend on, among other factors, the cost and outcome of any preclinical development or clinical trials then being conducted. For a discussion of our liquidity and funding requirements, see “- Liquidity” and “- Liquidity and Capital Resources - Funding Requirements”.

Revenue. We do not expect to generate any revenues from our direct sale of products for several years, if ever. Substantially all of our revenues to date have been derived from license fees, research and development payments, and other amounts that we have received from our strategic collaborators and licensees, including royalty payments. Since the first quarter of 2012, we have recognized royalty revenues related to Genentech’s sales of Erivedge and we expect to continue to recognize royalty revenue in future quarters from Genentech’s sales of Erivedge in the U.S. and Roche’s sales of Erivedge outside of the U.S. However, a portion of our royalty and royalty-related revenues under our collaboration with Genentech will be paid to the Purchasers, pursuant to the Oberland Purchase Agreement. The Oberland Purchase Agreement will terminate upon the earlier to occur of (i) the date on which Curis Royalty’s rights to receive the Purchased Receivables owed by Genentech under the Genentech collaboration agreement have terminated in their entirety and (ii) the date on which payment in full of the put/call price is received by the Purchasers pursuant to the Purchasers’ exercise of their put option or Curis Royalty’s exercise of its call right.For additional information regarding the terms and termination provisions of this agreement, see Note 8, Liability Related to the Sale of Future Royalties, in the accompanying Notes to the Condensed Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q.

Cost of Royalty Revenues. Cost of royalty revenues consists of all expenses incurred that are associated with royalty revenues that we record as revenues in our Condensed Consolidated Statements of Operations and Comprehensive Loss. These costs currently consist of payments we are obligated to make to university licensors on royalties that Curis Royalty receives from Genentech on net sales of Erivedge. In all territories other than Australia, our obligation is equal to 5% of the royalty payments that we receive from Genentech for a period of 10 years from the first commercial sale of Erivedge, which occurred in February 2012 in the U.S.

Research and Development. Research and development expense consists of costs incurred to develop our drug candidates. These expenses consist primarily of:

•costs of conducting clinical trials, including amounts paid to clinical centers, clinical research organizations and consultants, among others;

• other outside service costs including costs of contract manufacturing;

•certain payments that we make under our collaboration agreements, including, for example, semi-annual payments, option exercise fees and milestone payments;

•payments that we are obligated to make to certain third-party university licensors upon our receipt of payments from Genentech related to the achievement of clinical development and regulatory objectives under our collaboration agreement; and

•internal and external costs of complying with the requirements of the FDA or another regulatory authority.

•our ability to successfully enroll our current and future clinical trials and our ability to initiate future clinical trials, which has been and may continue to be negatively impacted by the COVID-19 pandemic and responsive measures relating thereto;

•the scope, quality of data, rate of progress and cost of clinical trials and other research and development activities undertaken by us or our collaborators;

•the results of future preclinical studies and clinical trials;

•the cost and timing of regulatory approvals and maintaining compliance with regulatory requirements;

•the cost and timing of establishing sales, marketing and distribution capabilities;

•the cost of establishing clinical and commercial supplies of our drug candidates and any products that we may develop;

•the effect of competing technological and market developments; and

•the cost and effectiveness of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights.

General and Administrative. General and administrative expense consists primarily of salaries, stock-based compensation expense and other related costs for personnel in executive, finance, accounting, business development, legal, information technology, corporate communications and human resource functions. Other costs include facility costs not otherwise included

			For the Three Months Ended March 31,												Percentage Increase (Decrease)
			2021						2020
			(in thousands)
Revenues, net:			$	2,189					$	2,709					(19)		%
Costs and expenses:
Cost of royalty revenues			109						125						(13)		%
Research and development			6,757						7,473						(10)		%
General and administrative			4,123						3,593						15		%
Other expense, net			1,127						1,227						(8)		%
Net loss			$	(9,927)					$	(9,709)					2		%

Revenues. Total revenues are summarized as follows:

			For the Three Months Ended March 31,												Percentage Increase (Decrease)
			2021						2020
			(in thousands)
Revenues, net:
Royalties			$	2,187					$	2,515					(13)		%
Other revenue			—						211						(100)		%
Contra revenue, net			2						(17)						(100)%
Total revenues, net			$	2,189					$	2,709					(19)		%

Cost of Royalty Revenues. Cost of royalty revenues decreased by 13% for the three months ended March 31, 2021 as compared to the same period in 2020, which is consistent with the increase in royalty revenue. We are obligated to make payments to two university licensors on royalties that Curis Royalty earns from Genentech on net sales of Erivedge.

Research and Development Expenses. The following table summarizes our research and development expenses incurred during the periods indicated: 

			For the Three Months Ended March 31,												Percentage Increase (Decrease)
			2021						2020
			(in thousands)
Direct research and development expenses			$	4,268					$	5,283					(19)		%
Employee related expenses			2,064						1,747						18		%
Facilities, depreciation and other expenses			425						443						(4)		%
Total research and development expenses			$	6,757					$	7,473					(10)		%

General and Administrative Expenses. General and administrative expenses are summarized as follows:

			For the Three Months Ended March 31,												Percentage Increase (Decrease)
			2021						2020
			(in thousands)
Personnel			$	1,178					$	1,116					6		%
Occupancy and depreciation			146						123						19		%
Legal services			865						1,182						(27)		%
Professional and consulting services			757						388						95		%
Insurance costs			154						106						45		%
Stock-based compensation			761						455						67		%
Other general and administrative expenses			262						223						17		%
Total general and administrative expenses			$	4,123					$	3,593					15		%

Other Expense. Other expense decreased by $0.1 million, or 8% for the three months ended March 31, 2021 as compared to the same period in 2020. Net other expense for the first quarters of 2021 and 2020 primarily consisted of imputed interest expense related to future royalty payments.

As upfront consideration for the purchase of the royalty rights, at closing the Purchasers paid to Curis Royalty $65.0 million less certain transaction expenses. Curis Royalty will also be entitled to receive up to approximately $70.7 million in milestone payments based on sales of Erivedge as follows: (i) $17.2 million if the Purchasers and Curis Royalty receive aggregate royalty payments pursuant to the Oberland Purchase Agreement in excess of $18.0 million during the calendar year 2021, subject to certain exceptions and (ii) $53.5 million if the Purchasers receive payments pursuant to the Oberland Purchase Agreement in excess of $117.0 million on or prior to December 31, 2026. For further discussion please refer to Note 8, Liability Related to the Sale of Future Royalties.

•unanticipated costs in our research and development programs;

•the timing and cost of obtaining regulatory approvals for our drug candidates and maintaining compliance with regulatory requirements;

•payments due to licensors, including Aurigene and ImmuNext if we exercise our option under the ImmuNext Agreement, for patent rights and technology used in our drug development programs;

•the costs of commercialization activities for any of our drug candidates that receive marketing approval, to the extent such costs are our responsibility, including the costs and timing of establishing drug sales, marketing, distribution and manufacturing capabilities;

•unplanned costs to prepare, file, prosecute, defend and enforce patent claims and other patent-related costs, including litigation costs and technology license fees;

•unexpected losses in our cash investments or an inability to otherwise liquidate our cash investments due to unfavorable conditions in the capital markets; and

•impacts resulting from the COVID-19 pandemic and responsive actions relating thereto.

For detailed information regarding recently issued accounting pronouncements and the expected impact on our Condensed Consolidated Financial Statements, see Note 2g, New Accounting Pronouncements, in the accompanying Notes to Condensed Consolidated Financial Statements included in Item 1 of Part I of this Form 10-Q.

Item 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Item 4.    CONTROLS AND PROCEDURES

Item 6.    Exhibits

Exhibit Number			Description
10.1			Sales Agreement, dated March 16, 2021, by and among Curis, Inc., Cantor Fitzgerald & Co. and JonesTrading Institutional Services, LLC (incorporated by reference to Exhibit 1.2 to the Company’s Form S-3ASR (File No. 333-254362), filed with the SEC on March 16, 2021.
31.1 *			Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act
31.2 *			Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Exchange Act
32.1 *			Certification of the Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350
32.2 *			Certification of the Principal Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350
101.INS *			InLine XBRL Instance Document
101.SCH *			InLine XBRL Taxonomy Extension Schema Document
101.CAL *			InLine XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF *			InLine XBRL Taxonomy Extension Definition Linkbase Document
101.LAB *			InLine XBRL Taxonomy Extension Label Linkbase Document
101.PRE *			InLine XBRL Taxonomy Extension Presentation Linkbase Document
104			Cover Page Interactive Data File

						CURIS, INC.
Dated:			May 12, 2021			By:			/S/ JAMES E. DENTZER
									James E. Dentzer
									President and Chief Executive Officer
									(Principal Executive Officer)
						CURIS, INC.
						By:			/S/ WILLIAM STEINKRAUSS
									William Steinkrauss
									Chief Financial Officer
									(Principal Financial and Accounting Officer)