consolidated financial statements have been prepared in accordance
with U.S. generally accepted accounting principles (“GAAP”).
Certain prior year amounts in the condensed consolidated
balance sheets, statements of operations, statements of
stockholders’ equity (deficit) and statements of cash flows and the
notes to the condensed consolidated financial statements have been
reclassified in the condensed consolidated financial statements to
conform to the current year presentation.
Risks and Uncertainties
As of June 30, 2022, we had cash, cash
equivalents and short-term investments of $122.6 million and outstanding accounts receivable
of $14.5 million. Our loss for the second quarter ended
June 30, 2022 was $30.9
million and included
$3.7 million of noncash operating expenses. Our loss
for the six months ended June 30, 2022 was $63.9 million
and included $7.9
million of noncash operating
expenses.
We plan to continue to fund our
operations for the next twelve months with our existing cash and
investments, our current accounts receivable, and OMIDRIA
royalties. There is also the potential for us to receive a
$200.0 million milestone related to
achievement of long-term OMIDRIA separate payment. If FDA approval
is granted for narsoplimab for HSCT-TMA within the next twelve
months, we expect that sales of narsoplimab will also provide funds
for our operations.
We have a sales agreement to sell
shares of our common stock, from time to time, in an “at the
market” equity offering facility through which we may offer and
sell shares of our common stock equaling an aggregate amount up
to $150.0
million. Should it be determined to be strategically
advantageous, we could pursue debt financings as well as public and
private offerings of our equity securities, similar to those we
have previously completed, or other strategic transactions, which
may include licensing a portion of our existing
technology.
Management believes the assets on hand
along with expected royalties to be received are adequate to
finance our operations at least through August 9, 2023.
Accordingly, the accompanying condensed consolidated financial
statements have been prepared on a going-concern basis, which
contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business.
Use of Estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying
notes. Significant items subject to such estimates include OMIDRIA
contract royalty asset valuation, stock-based compensation expense,
and accruals for clinical trials and manufacturing of drug product.
We base our estimates on historical experience and on various other
factors, including the impact of the COVID-19 pandemic, that we
believe are reasonable under the circumstances; however, actual
results could differ from these estimates.
Note 2—Significant Accounting Policies
Discontinued Operations
We review the presentation of planned or completed business
dispositions in the condensed consolidated financial statements
based on the available information and events that have occurred.
The review consists of evaluating whether the business meets the
definition of a component for which the operations and cash flows
are clearly distinguishable from the other components of the
business and, if so, whether it is anticipated that after the
disposal the cash flows of the component would be eliminated from
continuing operations and whether the disposition represents a
strategic shift that has a major effect on operations and financial
results.
Planned or completed business dispositions are presented as
discontinued operations when all the criteria described above are
met. For those divestitures that qualify as discontinued
operations, all comparative periods presented are reclassified in
the consolidated balance sheets. Additionally, the results of
operations of a discontinued operation are reclassified to income
from discontinued operations, for all periods presented in the
condensed consolidated statements of operations and comprehensive
loss. Results of discontinued operations include all revenues and
expenses directly derived from such businesses; general corporate
overhead is not allocated to discontinued operations. The
OMIDRIA